Sensex Surges 1.2%; Finance Bill Passed

Devan Biswas
23 Mar, 2011
New York City

Stocks in Mumbai traded higher on the confidence that rising crude oil prices will not derail economic growth and corporate earnings. The Sensex index gained 1.2%. The Lok Sabha, the lower house of the Parliament approved the Finance Bill 2011.

[R]4:30 PM Mumbai – Stocks in Mumbai traded higher on the confidence that rising crude oil prices will not derail economic growth and corporate earnings. The Sensex index gained 1.2%. The Lok Sabha, the lower house of the Parliament approved the Finance Bill 2011.[/R]

The Sensex index increased 217.86 or 1.2% to 18206.16 and the Nifty index increased 1.2% or 66.40 to 5,480.25.

Of the 30 stocks in the Sensex index, 24 increased and 6 declined.

The rupee closed down 17 paisa to 45.72 against a dollar and the price of 10 grams of gold closed at Rs 20,841.

Crude oil closed up $104.21 in New York trading and surged in early trading in London to $117.10 a barrel.

Lok Sabha on Tuesday passed the Finance Bill 2011 amidts the boycott held by the opposition party BJP and other regional parties.

Stock Movers

Banks led the gainers after investors focused on the banking reforms. ICICI Bank Ltd increased 3% to Rs 1,034.24.

Reliance Industries increased 0.9% to Rs 1,008.95 and ONGC and Cairn India added more than 0.5%.

Infosys Technologies increased 1.4% to Rs 2,984.10 and TCS and Wipro added more than 0.4%.

Infrastructure developers were among the leading gainers. Jaiprakash Associated increased 2.7% and Bharat Heavy Electricals increased 2% after it won an order in a consortium with ABB from Power Grid Corporation. Bhel’s share is estimated at Rs 1,590 crore.

Mahindra & Mahindra declined 0.7% and Tata Motors dropped 0.3% after Delhi State government imposed additional tax of 25% on all diesel powered vehicles. The total tax increase is expected to increase vehicle cost by Rs 400 to Rs 500.

Golden Tobacco soared 8.6% to RS 86.75 after the company shareholders approved the plan to develop or sell its property in Mumbai suburb Vile Parle.

Oudh Sugar Mills increased 4.6% to Rs 32.85 after the company board meeting approved debt restructuring plan and raise up to Rs 50 crore that may dilute the current shareholding by 59%.