Sensex in India Surges 1.4%; Reliance Life Sells 26% Stake to Nippon Life

Devan Biswas
14 Mar, 2011
New York City

Stocks in Mumbai trading surged after crude oil prices eased. The benchmark Sensex index soared 1.4% and Reliance Industries and state controlled refineries gained more than 5%. Reliance Capital soared 10% after it sold 26% stake in its life insurance subsidiary to Nippon Life.

[R]5:10 PM Mumbai – Stocks in Mumbai trading surged after crude oil prices eased. The benchmark Sensex index soared 1.4% and Reliance Industries and state controlled refineries gained more than 5%. Reliance Capital soared 10% after it sold 26% stake in its life insurance subsidiary to Nippon Life.[/R]

Stocks in Mumbai rebounded sharply after the crude oil price futures declined and eased the pressure on the central bank to tighten the monetary policy.

However, the crude oil prices are still hovering near 25% increase in the last one month and the government is expected to increase fuel price as early as this month.

The Sensex in Mumbai trading increased 265 o 1.4% to 18,439.48 and the Nifty index added 86 to 5,531.

Rupee closed at Rs 46,38 and crude oil price eased to $98.85 a barrel.

Stock Movers

Reliance Industries increased 2.6% to Rs 1,017.75 after crude oil prices declined and easing the pressure on the crude refining margins.

Reliance Capital surged 9.7% to after the finance and investment company agreed to sell 26% stake in its Reliance Life for Rs 3,062 or $680 million to Nippon Life, the Japan’s largest private life insurer.

On the back of the state sale news, Anil Ambani controlled companies closed higher. Reliance Infra added 3.5% and Reliance Communications added more than 2%.

State controlled energy companies traded higher. BPCL soared 4.4% to Rs 570.50 and Hindustan Petroleum Corporation Limited added 4.2% to Rs 334.25 and Oil India added 0.7% to Rs 1,280.

Cairn India soared 5% to Rs 346.20 on the speculation that the government approval for a deal with Vedanta Resources as early as this month.

Vishal Group soared 20% after the debt heavy company agreed to be acquired by TPG and Shriram Group.

Wockhardt, the pharmaceutical maker declined 4% after the Bombay High Court accepted the petition from three creditors to close down the company.

Maruti Suzuki added 0.5% to Rs 1,260 and Bajaj Auto added 0.8% but Hero Honda declined 0.1%.
Tata Steel increased 3.4% after Rio Tinto’s higher offer for Riversdale Mining received more interest from shareholders. Tata Steel and Brazil based CSN control 47% stake in the company.

State Bank of India increased 1.1% on the talks that the company is expected to issue Rs 20,000 crore issue in the next quarter.