Lower Crude Lifts Sensex in India by 2.4%; Infosys Earnings Awaited

Devan Biswas
13 Apr, 2011
New York City

Mumbai benchmark soared 2.4% and wiped out last four days of losses on the day after a holiday. The fall in crude oil prices contributed to the sentiment. Rupee edged higher. ONGC acquired a 25% stake in an oil block in Kazakhstan.

[R]4:35 PM Mumbai – Mumbai benchmark soared 2.4% and wiped out last four days of losses on the day after a holiday. The fall in crude oil prices contributed to the sentiment. Rupee edged higher. ONGC acquired a 25% stake in an oil block in Kazakhstan.[/R]

Stocks in Mumbai trading opened lower but quickly changed the direction and accelerated the gains in the late trading.

Stocks surged after the crude oil prices declined 3.3% to $106.25 a barrel a low not seen in a week. However, the IMF cut India’s economic growth estimate to 8.2% from 8.4% in the current fiscal year on the recent hike in the energy and commodities prices.

The Sensex in Mumbai trading increased 2.4% 434.32 to 19,696.86 and Nifty index added 2.36% or 125.80 to 5,911.50.

Of the 30 stocks in the Sensex index, 28 increased and 2 declined. Trading turnover on the BSE increased to Rs 3,373 crore from Rs 2,588.21 crore.

The rupee increased 17 cents to Rs 44.97 to a dollar and price of ten grams of gold declined Rs 52 to Rs 21,218.

Stock Movers

KEC International gained 3.6% to Rs 89.15 after the company won two orders of Rs 550 crore in India and Brazil.

Development Credit Bank soared 7% to Rs 52.95 after the bank reported fourth quarter net of Rs 11.34 crore compared to a net loss of Rs 8.15 crore.

Engineers India declined 2% to Rs 300.50 after the company canceled its plan to form a joint venture with Italy based Tecnimont SpA in Abu Dhabi, UAE.

Tire makers were higher after the rubber prices declined to one-week low in international trading. Apollo Tyre gained 2.9%, Dunlop India added 2.3% and CEAT advanced 1.4%. JK Tyre & Industries increased 1.2% and Goodyear India edged up 0.9%.

Infosys increased 1% to Rs 3,272 ahead of quarterly earnings on Friday.

Hero Honda increased 4.2% to Rs 1,708 after the company declared interim dividend of Rs 70 a share.

Gammon India advanced 2% to Rs 122.95 after a fund managed overseas acquires 1.24% stake in the company.

Tata Chemicals increased 2.6% to Rs 363.60 after the company acquires 25.1% stake in a fertilizer company in Gabon Africa for $290 million.

ONGC increased 1.8% after the company agreed to invest $400 million in an oil field in Kazakhstan and take 25% stake in the Satpayev exploration block.