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Telecom stocks drive Sensex above 18,800

Telecom stocks drive Sensex above 18,800
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First Published: Mon, Jul 25 2011. 05 06 PM IST
Updated: Mon, Jul 25 2011. 05 06 PM IST
Mumbai: Indian stocks rose Monday as the government’s nod to the Reliance Industries-BP deal and the proposal to allow foreign direct investment in multi-brand retail eased investor concerns about a policy stalemate. After a mixed opening, the benchmark indices gained momentum in second half of the day as the gains in telecom stocks outweighed the losers. Telecom stocks rallied after India’s largest mobile operator Bharti Airtel raised tariffs.
Sensex: 18,871
Nifty: 5,680 +0.82%
Reliance Communications, Bharti Airtel and Axis Bank led the gains in the Nifty shares. Reliance Communications surged 13.8% on improving outlook for call charges. With Bharti Airtel raising call rates, analysts expect other telecom service providers to hike tariffs. Higher tariffs are expected to bring in more cash and improve return ratios of the telecom companies.
Ahead of the June quarter earnings, index heavyweight, Reliance Industries traded with gains through out the day. Analysts expect the company to report a 16-18% year-on-year growth in June quarter profits. Read more...
Reliance Communications: Rs 106 +13.8%
Bharti Airtel: Rs 431 +4.9%
Axis Bank: Rs 1,339 +3.2%
Reliance Industries: Rs 882 +0.9%
At the sectoral level, metals, healthcare, automobiles and capital goods stocks led the gains on the BSE. Except FMCG and information technology, all BSE sectoral indices closed the day with gains.
BSE Metal: 14,963 +1.4%
BSE Healthcare: 6,505 +1.4%
BSE Auto: 8,975 +1.3%
Sharp rise in Sterlite Industries and Hindalco helped the metal index close the day as biggest sectoral gainer. Sterlite Industries reported a 62% jump in June quarter profits to Rs 1,640 crore. A Reuters poll of brokerages had forecast a net profit of Rs 1,546 crore.
Hindalco Industries: Rs 180 +2.3%
Sterlite Industries: Rs 172 +2.2%
SAIL: Rs 133 +1.7%
NMDC: Rs 258 +1.2%
Some pharmaceutical stocks also gained. Glenmark Pharmaceuticals rose 5.1% after the company said it completed phase-I trial of pain killer molecule GRC15300.
Another pharmaceutical company, Cadila Healthcare gained 3.4% on reports that the company has received US FDA approval for its manufacturing unit in Himachal Pradesh.
Glenmark Pharmaceuticals: Rs 328 +5.1%
Aurobindo Pharmaceuticals: Rs 181 +4.1%
Cadila Healthcare: Rs 900 +3.4%
Sun Pharmaceuticals: Rs 525 +2.5%
Suzlon Energy rose 3.4% after the company said it has signed an agreement to sell 26.06% stake in Hansen Transmissions International for $187 million. Through the transaction, the company aims to strengthen its balance sheet.
Suzlon Energy: Rs 54 +3.4%
Overall, 53.56% of the shares traded on the BSE closed the day with gains.
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First Published: Mon, Jul 25 2011. 05 06 PM IST
More Topics: Markets update | Stock | Sensex | BSE | NSE |