The Hindu : Business : Sensex posts further gains

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Tuesday, Jun 28, 2011
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Sensex posts further gains

Hike in fuel prices triggers buying in oil stocks

MUMBAI: The Bombay Stock Exchange sensitive index, Sensex, gained 172 points on Monday and closed at 18412.41 against 18240.68 last Friday as investors bought oil stock after fuel price hikes, on hopes that the move would improve sectoral earnings, ignoring fears that it might also add to inflationary pressures. The NSE 50-share Nifty improved by 55.35 points to 5526.60.

Besides, the market was propelled by capital inflows, strong cues from European markets and short-coverings ahead of the settlement of June derivative contracts this week.

Meanwhile, auto and banking sectors bolstered the market, up for the third straight session.

Stocks of State-owned oil companies jumped after the government hiked prices of diesel, cooking gas and kerosene last Friday, a move that would reduce subsidy burden on them and boost their earnings. As a result, HPCL spurted by 5.80 per cent to Rs. 415.25, Oil India by 5.69 per cent to Rs. 1,354.35, BPCL by 4.62 per cent to Rs. 663.70, ONGC by 4.16 per cent to Rs. 284.15, IOC by 3.10 per cent to Rs. 347.55 and GAIL by 1.83 per cent to Rs. 456.90.

Rupee drops further

Extending losses for the fourth session the rupee fell by four paise to close at 45.03/04 against the dollar on Monday.

At the interbank foreign exchange market, the rupee opened lower at 45.06/07 against last Friday's close of 44.99/45.00. It, later, moved in a range of 45.20 and 45.02 before concluding at 45.03/04. — PTI

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