Sensex Erases 0.6% Loss; Reliance Buys Bharti Stake of Insurance Venture

Devan Biswas
13 Jun, 2011
New York City

The benchmark index in Mumbai dropped as much as 0.7% on the weakness in international markets. Stocks recovered to erase all the losses at close. Reliance Industries agreed to acquire majority stake in insurance venture controlled by Bharti Enterprises.

[R]4:45 PM Mumbai – The benchmark index in Mumbai dropped as much as 0.7% on the weakness in international markets. Stocks recovered to erase all the losses at close. Reliance Industries agreed to acquire majority stake in insurance venture controlled by Bharti Enterprises.[/R]

The Sensex index closed down 2.51 after dropping as much as 140 points to 18,266.03 and the Nifty index declined 3 to 5,482.80.

The rupee closed at 45.45 against a dollar and crude oil edged lower 0.6% to Rs 4,671 a barrel.

The price of ten grams of gold fell 0.45 to Rs 23,404 and one kilo of silver declined 1.9% to Rs 56,100.

Stock Movers

Reliance Industries declined 2% to Rs 925 after the oil industry regulator denied the request to certify three recently found oil blocks as commercially viable.

Separately, the company agreed to acquire 74% stake held by Bharti Enterprises in its insurance venture with France based AXA SA. The deal still needs a regulatory approval. Reliance Industries and Reliance Industrial Infrastructure will acquire the stake.

Larsen & Toubro increased 0.8% to Rs 1,706.50 after the company’s unit won an order of Rs 110 crore from West Bengal State Electricity Distribution Company.

Max India surged 9% to Rs 181.35 after the company issued 2.4 crore shares to convert 60.19 convertible debenture at Rs 216.75 to an international fund.

Maruti Suzuki trimmed earlier trading losses to 0.2% fall to Rs 1,228 on the speculation that the company may agree to a union demand and cut short the strike at its Manesar unit.

Colgate-Palmolive (India) declined 0.6% to Rs 890 after it traded ex-dividend of Rs 8 today.

Airlines recovered after crude oil price declined 0.4% in Mumbai trading.

SpiceJet increased 1.8%, Jet Airways added 0.4% and Kingfisher Airlines gained 1.4%.

Castrol India declined 1.6% to Rs 494.40 after the stock traded ex-dividend of Rs 8 today for the year ended in December. In the first quarter to March the company said net increased 16.6% to Rs 136.60 crore on sales rise of 15% to Rs 750.70 crore.

Tata Global Beverages soared 4.3% to Rs 99.95 on the speculation that the company may sell a stake in its international operations to a financial or strategic investor.

Adani Enterprises surged 4.5% to Rs 669 on the prospect of higher earnings in the current quarter.