Millennium Post

Sensex spurts 520 points on gas price hike; ONGC & RIL shine

Indian markets were on fire on Friday with Sensex zooming by 520 points, its biggest gain in 22 months, with energy firms RIL and ONGC leading the surge fuelled by steep hike in gas price amid hopes US Fed will not begin tapering monetary stimulus soon.

Buying across the spectrum saw all 13 sectoral indices closing with gains as FIIs were seen buying stocks after a flurry of reforms in the energy space. Overall, 1535 stocks gained out of 2512 traded, helping investor wealth soar by Rs 1.52 lakh crore on Friday.
The Bombay Stock Exchange 30-share barometer resumed up and stayed in the positive zone throughout to end at 3-week high of 19,395.81, a spurt of 519.86 points or 2.75 per cent.

Previously, it had gained 567.50 points on 29 August, 2011.The NSE 50-issue Nifty flared up by 159.85 points, or 2.81 per cent, to end at two-week high of 5,842.20. Also, SX40 index, the flagship index of MCX-SX, ended 275.16 points, or 2.45 per cent higher at 11,494.35.
Tracking stocks, rupee rebounded to 59-levels after touching historic low of 60.76 earlier this week.

The Government had on Thursday approved a near doubling of natural gas prices to $8.4 from 1 April next year and okayed setting up of a coal regulator. Last week, it allowed power producers to pass through higher imported coal prices.

Oil and gas counters were in limelight today with BPCL, IOC, GAIL, Petronet LNG, RIL, HPCL and ONGC gaining in 2.2-5.7 per cent range. Metal, capital goods, PSU, banking, auto, realty and pharma stocks attracted good buying support. Power stocks like Tata Power and NTPC too were in demand.

'Today's move was on the back of the government reforms initiative of increasing gas prices and setting up of a coal regulator,' said Dipen Shah, Head of Private Client Group Research, Kotak Securities.

Asian markets cheered reports with 2.2 per cent rise as reports said Fed officials are of the view that asset purchases would be more aggressive if US growth signals prove to be weaker-than-expected. QE withdrawal concerns had hit Indian markets with nearly $ 7 billion flowing out of stocks and bonds in past one month.

 Key indices in Hong Kong, Taiwan, Singapore, China and South Korea were up by 1.04 per cent to 2.26 per cent. In Japan, Nikkei 225 index jumped 3.51 per cent as a weak Yen and upbeat industrial-production data lifted market sentiment.
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