Mumbai: Indian stocks rebounded as fears of a Greek debt default abated and crude oil prices sank. After a strong opening, Indian stocks sustained the positive momentum for rest of the day as European Union leaders agreed to help Greece stave-off a debt default.
Brent crude prices fell to around $107 a barrel after the International Energy Agency on Thursday said it would release 60 million barrels of oil starting next week.
Sensex: 18,240 +2.89%
Nifty: 5,471 +2.84%
Sesa Goa, State Bank of India, Hero Honda and Ranbaxy Laboratories led the rebound in the Nifty. Strengthening international commodity markets helped Sesa Goa gain more than 6%. Except Reliance Industries and Reliance Infrastructure, all stocks in the Nifty close the day with gains.
Sesa Goa: Rs 281 +6.10%
State Bank of India: Rs 2,289 +5.91%
Hero Honda: Rs 1,863 +5.71%
Ranbaxy Laboratories: Rs 538 +5.15%
At the sectoral level, real estate, metals and information technology stocks led the gains on the BSE. While short covering helped real estate close as biggest sectoral gainer, investors bought information technology stocks on easing economic concerns in the European region. Except consumer durables, all sectoral indices closed with gains.
BSE Realty: 2,000 +3.76%
BSE Metal: 14,573 +3.40%
BSE Information Technology: 5,991 +3.37%
Stocks of state owned oil companies surged on speculation that the government might increase diesel and LPG prices. The meeting of the Empowered Group of Ministers, which was expected to happen in the afternoon, was postponed to 7:30 in the evening. According to a Reuters report, the government is working on its options to cushion the state owned oil-marketing companies from mounting under-recoveries.
HPCL: Rs 392 +6.15%
ONGC: Rs 272 +3.12%
BPCL: Rs 634 +2.85%
GAIL India: Rs 448 +2.76%
Indian Oil Corporation: Rs 337 +2.74%
Stocks of sugar mills also surged after the Indian government decided to allow an additional 5 lakh tones of sugar exports. The higher export quota is expected to help domestic sugar mills extract greater price for their produce.
Shree Renuka Sugars: Rs 60 +3.97%
Balrampur Chini Mills: Rs 59 +2.86%
Bajaj Hindustan: Rs 65 +2.52%
Overall, 67% of the shares traded on the BSE closed the day with gains.