Sensex Adds 0.8%; Banks in Focus on Finance Bill Introduction

Devan Biswas
22 Mar, 2011
New York City

Stocks in Mumbai opened higher and added as much as 1% but settled lower. The ruling coalition introduced two bills in the Parliament to reform banking sector and to transition to the value-added-tax regime.

[R]4:30 PM Mumbai – Stock in Mumbai opened higher and added as much as 1% but settled lower. The ruling coalition introduced two bills in the Parliament to reform banking sector and to transition to the value-added-tax regime.[/R]

In Mumbai trading stocks opened higher after Asian markets rallied and the nuclear meltdown worries eased in Japan.

Crude oil gained 1.5% as Western powers continued their bombardment in Libya that has killed more than 100 civilians according to several media reports.

Arab and African nations are increasingly critical of the excessive bombing carried out by France, UK and U.S.

The Sensex index in Mumbai traded up 149.25 to 17,988.30 and the Nifty index increased 49.10 to 5,413.85.

Of the 30 stocks in the Sensex index, 25 increased and 4 declined.

The rupee closed up 42 cents to 45.89 to a dollar and the price of gold for ten grams increased Rs 26 to Rs 20,848.

In domestic news, stocks gained after the government introduced a bill in the Parliament to amend goods and services tax. Related to votes in exchange for bribes in 2008 confidence motion, BJP leader Sushma Swaraj submitted a privilege notice in the Lok Sabha against Prime Minister.

Stock Movers

Reliance Industries increased 1.2% to Rs 1,000.40 after Essar Energy reported $6 a barrel margin in its latest quarterly results.

Banks were in focus after government introduced the bill to reform the sector. State Bank of India increased 1.5% and ICICI Bank declined 0.4% to Rs 1,002. HDFC Bank edged down 0.06%.

The banking reform bill seeks to align voting rights with the proportion of shareholding in private banks.

Maruti Suzuki India soared 4% to Rs 1,176 after the company chairman said that production at its plant is “normal” after the last week’s earth quake in Japan.

Hero Honda Motors gained 0.6%, Mahindra & Mahindra added 1.8% and Tata Motors increased 1.2%.

Property developers increased. DLF added 3.2%, Omaxe added 1.7% and orbit Corp increased 1.4%. Indiabulls Real Estate soared 2.7%.

Adhunik Metaliks soared 2.5% after ET Now said that the company is expected to receive approval from environment ministry in non-forest area mining at its 150 acres Orissa mine. The news report did not say where it got the information.