Sensex back above 21,000 level, up 371 points, led by Reliance; Rupee rises 10 paise

Mumbai: The benchmark Sensex surged 371 points on Friday, the biggest gain in almost a month, as Reliance Industries led energy stocks higher after the government allowed the company to increase the price of natural gas.

Reliance, with a 4.58 per cent gain, and Oil & Natural Gas Corporation, along with financial and IT stocks lifted the Sensex, helping it to close above the 21,000 level. Oil & gas and realty stocks climbed the most among the 12 BSE sectoral indices.

The consumer durables sector index fell.

The S&P BSE Sensex opened higher than Thursday's close and traded steady for the first two hours. It then shot up and touched the day's high of 21,117.99 before closing at 21,079.72, up 371.10 points or 1.79 per cent.

It was the biggest gain for the index since the 388-point rise on November 25.

Over the past week, the Sensex has advanced 364 points. The Cabinet yesterday allowed Reliance to increase gas prices from April even as output at its main Dhirubhai 1 and 3 fields in the KG-D6 block has dropped.

The price hike was allowed provided the company furnishes bank guarantees to cover its liability if gas-hoarding charges are proved.

Oil Minister M. Veerappa Moily today said higher gas prices would encourage exploration, helping to raise domestic production and cut dependence on imports. Foreign institutional investors bought shares worth a net Rs 2,264.11 crore on Thursday, according to provisional data with the stock exchanges.

The Sensex had dropped 151 points on Thursday after the US Federal Reserve said it would start tapering its stimulus programme in January, a move that would reduce the funds available to invest in local stocks.

The 50-share CNX Nifty on the National Stock Exchange flared up 107.60 points, or 1.74 per cent, to 6,274.25. The SX40 on the MCX Stock Exchange jumped 189.01 points to 12,525.54.

"Equity markets traded on a positive note today after bearing the hiccup of Fed's tapering process yesterday, supported by a good rally in the oil & gas and banking sector shares. FIIs bought considerably in the markets today, taking the tapering in stride," said Jignesh Chaudhary, Head of Research at Veracity Broking Services.

Apart from Reliance, the top gainers on the Sensex were ONGC, which rose 3.93 pc, Wipro 3.6 pc, Mahindra & Mahindra 3.35 pc, HDFC 3.05 pc, Hindustan Unilever 2.42 pc and ICICI Bank 2.21 pc. Among the S&P BSE sectoral indices, Oil & Gas was up 3.83 pc, Realty 2.76 pc, Auto 2.02 pc, Bankex 1.81 pc, IT 1.66 pc and Power 1.54 pc.

The total market breadth turned positive as 1,528 stocks gained, 978 fell and 165 shares ruled steady. Asian stocks were mixed as indices in Japan, Singapore, South Korea and Taiwan rose while those in China and Hong Kong declined. Indices in France, Germany and the UK were higher.

Next: Rupee rises 10 paise to 62.04 against dollar on strong stocks

Rupee rises 10 paise to 62.04 against dollar on strong stocks

Mumbai: The rupee recovered after three days of declines to close 10 paise higher at 62.04 against the dollar today amid gains in local stocks and capital inflows. Dollar sales by exporters and some weakness in the US currency overseas also supported the rupee.

The rupee opened lower at 62.40 a dollar from the previous close of 62.14 at the interbank foreign exchange market and dropped to 62.45 on sustained dollar demand from importers, mainly oil refiners. The local currency rebounded to a high of 62.01 on fresh dollar selling by exporters and strong local stocks.

It ended at 62.04, a rise of 10 paise or 0.16 per cent. In the three previous sessions, it had fallen 41 paise.

"The domestic currency opened on a lacklustre note today as all the Asian currencies were trading weak against the US dollar," said Abhishek Goenka, CEO of India Forex Advisors. "Rupee was seen gaining later during the session on the back of dollar selling by bankers."

The benchmark 30-share S&P BSE Sensex on Friday shot up 371.10 points or 1.79 per cent. Foreign institutional investors bought shares worth a net Rs 2,264.11 crore yesterday, according to provisional data. Their net purchases on Friday were Rs 990.19 crore.

"The dollar index, which tracks the performance of the greenback versus a basket of six other major units, opened on a strong note but during the day it weakened and at present is trading near yesterday’s close, which helped the rupee," said Pramit Brahmbhaat, CEO at Alpari Financial Services (India).