The Hindu : Business : RIL leads recovery on stock market

Online edition of India's National Newspaper
Wednesday, Jun 28, 2006

Business

Business

RIL leads recovery on stock market

MUMBAI: Reliance Industries Ltd. (RIL) saved the day for the stock market, which on Tuesday recovered by 109 points on the back of the company's mega retail plans.

Dipping below the 10000-mark to the day's low of 9901.58, the Bombay Stock Exchange 30-share sensitive index (Sensex) later rallied smartly absorbing the shocks of profit selling and closed the day at 10151.01, a net rise of 108.95 points or 1.08 per cent.

On the National Stock Exchange, the S&P CNX Nifty recouped 39.25 points or 1.33 per cent to 2982.45. The main trigger for the bounce was RIL's announcement of mega retail plans with a Rs. 25,000 crore investment and new oil/gas discoveries, besides the company's eye on cross-border acquisitions for faster growth, market players said. RIL shares were in keen demand during the midsession and touched a high of Rs. 1,010.95. The volatility was largely attributed to approaching end of account for derivatives contract on June 29. Generally, operators were engaged in covering short positions in the futures and options (F&O) segment while traders took opportunity to take profits at higher levels.

Small-cap and mid-cap segments, however, witnessed fairly heavy selling pressure with the indices closing in the negative territory. The BSE small-cap index was down by 101.27 points. FMCG stocks, including the Sensex heavyweight, HLL, and metal shares hogged the limelight on good buying support. — PTI

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