Indian shares gain nearly 3 pct as energy stocks rally

Fri Jun 28, 2013 4:56pm IST

Related Topics

Stocks

   

* BSE index gains 2.75 pct; NSE ends 2.81 pct higher
    * Energy shares rally on gas price hike
    * FIIs remain net sellers in cash shares

    By Abhishek Vishnoi
    MUMBAI, June 28 (Reuters) - Indian shares rose nearly 3
percent on Friday, marking their biggest single day gain in
1-1/2 years, as energy firms such as Oil and Natural Gas
Corporation Ltd and Reliance Industries rallied after the
government approved a hefty increase in gas prices.
    Shares were also helped by the recovery of the rupee from
the record low hit on Wednesday, allowing Indian stocks to post
their first weekly gain in four weeks, with the BSE index
 ending up 3.5 percent.
    Gains on Friday were broad-based, with 29 out of 30 BSE
index constituents ending higher. However, whether the gains can
be sustained will depend on foreign investors who have sold
121.90 billion rupees ($2.02 billion) worth of shares over the
previous 13 sessions. 
    The  Indian government is gearing up to announce additional
fiscal and economic reforms, including opening up more sectors
to foreign investment, in an effort to narrow a current account
deficit that hit a record high of 4.8 percent in the previous
fiscal year.
    "More economic reforms centering around inflows of dollar,
probably on foreign direct investment, are seen coming which
should aid recovery in stocks," said G. Chokkalingam, executive
director & chief investment officer, Centrum Wealth Management.
    The magntiude of recent outflows is very low in comparison
to the inflows received in 2013 and 2012, Chokkalingam added.
    The benchmark BSE index rose 2.75 percent, or
519.86 points, to end at 19,395.81. Despite the weekly gain, the
index fell 1.8 percent lower for the month while rising about 3
percent for the quarter.
    The broader NSE index rose 2.81 percent, or 159.85
points, to end at 5,842.20. It gained 3.1 percent for the week
but fell 2.4 percent June.
    Shares in energy companies surged after the government's
approval of a hefty increase in gas prices suggests domestic gas
prices could rise to $8.4-8.5 per mmBtu with the new mechanism
from a current $4.2 mmBtu. 
    Oil and Naturas Gas Corp Ltd (ONGC) rose 3.4
percent, while Reliance Industries gained 3.9 percent.
    Stocks beaten down earlier this week rose on value buying.
Mortgage lender Housing Development Finance Corporation Ltd
 rose 5 percent, while ICICI Bank Ltd ended
3.9 percent higher.
    Shares in Coal India Ltd surged 5.3 percent on
media reports the government would set up a coal regulator,
which could expedite decisions on pricing and clearances of
certain projects in the sector. 
    Shares in Yes Bank Ltd gained 4 percent after a
government committee approved the bank's proposal to increase
foreign equity participation up to 60 percent of the total
shares through a qualified institutional placement.
 
    Crompton Greaves Ltd rose 9 percent after its
board approved a share buy-back of up to 2.66 billion rupees.
 
    IFCI Ltd rose 18 percent while India Infoline Ltd
 gained 4.1 percent after each said in separate
statements on Thursday they would apply to the Reserve Bank of
India for banking licenses.  
    Among stocks that fell, Shriram Transport Finance Company
Ltd lost 1.6 percent after India's central bank
imposed restrictions on Thursday on debt sales from non-bank
financial companies. 
         
   For additional stocks on the move double click        
     
   FACTORS TO WATCH                                             
* Dollar rises versus yen in end-quarter trade            
* Brent rises above $103 on talk Fed will continue stimulus 
* Shares, bonds gain as Fed fears ease; gold slides  
* Foreign institutional investor flows          
* For closing rates of Indian ADRs                       
                       
   ASIA-PACIFIC STOCK MARKETS:                                  
Pan-Asia........ Japan.......   S.Korea... 
S.E. Asia.......        Hong Kong...  Taiwan.... 
Australia/NZ....        India.......  China..... 
                        
   OTHER MARKETS:                                               
Wall Street ....         Gold ....... Currency.. 
Eurostocks.....         Oil ........  JP bonds... 
ADR Report .....       LME metals. US bonds.. 
Stocks News US.. Stocks News Europe     
                       
   DIARIES & DATA:                                              
Indian Data Watch   Asia earnings diary 
U.S. earnings diary     European diary       
Indian diary          Wall Street Week Ahead  
Eurostocks Week Ahead                                   
                         
   TOP NEWS:                                                    
   For top Asian company news, double click on:       
   U.S. company news  European company news  
   Forex news        Global Economy news  
   Technology news  Telecoms news        
   Media news       Banking news           
   Politics/General    Asia Macro data      <ECONASIA 

($1 = 60.2650 Indian rupees)

 (Editing by Anupama Dwivedi)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Markets

REUTERS SHOWCASE

Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi  Full Article 

Power Outage

Power Outage

Mumbai hit by power cuts  Full Article 

Commodities

Commodities

Gold imports, premiums to jump on festive demand - top refiner  Full Article 

Economic Worries

Economic Worries

Pakistan's promises to IMF in doubt as protests sap economy   Full Article 

Islamic Finance

Islamic Finance

Basel III deposit challenge looms over Islamic banks   Full Article 

Antitrust Probes

Antitrust Probes

U.S. business lobby says concerned China antitrust probes unfair.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage