Mumbai: Indian stocks rose on Friday, paring the week’s losses, as Reliance Industries Ltd (RIL) gained on expectation the company is close to resolving a dispute over the supply of natural gas to rival Reliance Natural Resources Ltd (RNRL).
RIL gained 6.6% to a one-week high of Rs1,217.35. The company owned by Mukesh Ambani will sell gas to a power plant and other projects controlled by his brother Anil, CNBC-TV18 reported, citing a government lawyer. The two split the Reliance group in 2005 after a family feud. Stocks gain because “there is an expectation that Reliance Industries may settle the dispute over natural gas supply”, said R.K. Gupta, who manages the equivalent of about $100 million of stocks at Taurus Mutual Fund in New Delhi.
Click here to watch video
The Bombay Stock Exchange’s sensitive index, or Sensex, rose 3.1% to 9,323.59 points at close, trimming the week’s loss to 0.9% after a 5.5% drop last week. The S&P CNX Nifty Index on the National Stock Exchange gained 3.4% to 2,828.45. The BSE 200 Index advanced 2.5% to 1,106.64. Nifty futures for January delivery added 3.8% to 2,815.4. RNRL rose 4.1% to Rs53.95. Paresh Chaudhry, spokesman for RIL declined to comment. Venkatesh Somayaji, spokesman for RNRL, wasn’t immediately available for comment.
Other companies controlled by Anil Ambani also gained. Reliance Infrastructure Ltd advanced 7.6% to Rs540.95, while Reliance Communications Ltd added 5% to Rs182.70. Indian stocks also gained as the US Senate on Thursday voted to allow the release of $350 billion in financial-rescue funds sought by President-elect Barack Obama. ICICI Bank Ltd rose 3.7% to Rs423.95, while Housing Development Finance Corp. Ltd added 2% to Rs1,565.5. Bank of America Corp., the largest US bank by assets, received a $138 billion emergency lifeline from the government to support its acquisition of Merrill Lynch and Co. and prevent the global financial crisis from deepening.
Tata Consultancy Services Ltd, India’s largest software developer, fell 1.5% to Rs503. The company on Thursday reported third-quarter profit growth slowed as clients curbed technology investment. The company also incurred losses because of currency fluctuations.
Satyam Computer Services Ltd gained after it said it has pending payments of Rs1,700 crore. The stock rose 21% to Rs24.5, the biggest gain in four days.