Sensex ends flat; RIL gains

The BSE Sensex eked out small gains for the third straight session on Wednesday, helped by Reliance Industries which rose after announcing investment in its key natural gas block and property developer DLF extending gains on hopes of better earnings.

The focus will be on the budget with foreign investors closely monitoring whether the government will put fiscal discipline ahead of election largesse.

Concerns also remain on the macroeconomic front. The government is unlikely to achieve its $350 billion export target in the current fiscal year that ends in March, Commerce and Industry Minister Anand Sharma said on Wednesday.

"Containing fiscal deficit and managing it would be the major thrust and challenge," said K K Mital, head of portfolio management at Globe Capital.

"Fiscal discipline is the most important area to woo foreign investors."

The BSE Sensex rose 0.04 percent, or 7.03 points, to end at 19,642.75.

The 50-share Nifty rose 0.06 percent, or 3.35 points, to 5,943.05.

Shares in Reliance Industries ended 3.11 percent higher, the biggest single-day gain since January 17, after the company said it, along with UK partner BP, would invest over $5 billion in the next three to five years to boost declining output at a key natural gas field off India's east coast.

DLF (DLF.NS) shares gained 3.6 percent to close at Rs 279.85, their highest level since January 11, 2011, on continued expectations of an earnings recovery and on a CLSA upgrade. The property developer had gained 8.6 percent in the previous two sessions.

Ambuja Cements Ltd rose 3.26 percent and ACC Ltd gained 0.9 percent, for a second day after shareholders at each of the cement makers separately approved paying technology fees to controlling stakeholder Holcim Ltd of 1 percent of net annual sales.

Oil marketing companies ended higher, with traders saying oil and gas stocks were likely to benefit from government reforms in the sector.

Indian Oil Corp rose 1.1 percent, Bharat Petroleum Corp gained 2.9 percent and Hindustan Petroleum Corp rose 2.07 percent.

Shares in Steel Authority of India ended 0.45 percent higher after gaining 5 percent in intra-day trading, following a report by a TV news channel that the company board would consider a buy-back of equity shares on February 25.

A SAIL spokeswoman declined to comment immediately.

However shares that fell Jaiprakash Power Ventures ended 6.7 percent lower after the company announced the opening of qualified institutional placement to raise up to 35 billion rupees at 31.93 per share.

Unitech fell 2.75 percent on concerns over the 2G case. Last week the Central Bureau of Investigation said it is looking into whether a prosecutor for the agency discussed a probe into alleged corruption in the allocation of mobile phone airwaves five years ago with one of the people being investigated.

Welspun Corp fell 4.64 percent after the National Stock Exchange excluded the company's shares from trading in the futures and options segment from April 26, without giving a reason.

Markets @ 11.30 AM (Reuters)

The BSE Sensex gains 0.32 percent, while the Nifty is up 0.31 percent, heading for a third consecutive session of gains after hitting 2013 lows on Friday.

However, traders warn this week's gains are likely driven by purchases of recently under-performing sectors and may not sustain ahead of the budget.

Shares in Reliance Industries gain 1.8 percent a day after the company said it will invest over $5 billion in the next three to five years with UK partner BP to boost declining output at a key natural gas field off India's east coast.

DLF shares gain 1.5 percent, extending a recent rally on continued hopes of an earnings recovery. The property developer has gained 8.6 percent in the previous two sessions.

Welspun Corp, however, fell 2.24 percent after National Stock Exchange excluded the company's shares from trading in the futures and options segment from April 26, without giving a reason.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The current value of the rupee does not merit market intervention

    The rupee, losing 40 paise per month against the dollar since May, is expected to remain under pressure till the calendar runs out on December 31, bef

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Zehra Naqvi

How smells evoke strong memories

Remember that time when a passing fragrance transported you to ...

Dharmendra Khandal

Indian zoos need a fresh approach

Recently, when a man jumped in a tiger trench of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture