Stocks close higher on strong global cues

Sensex gains 75 points as RIL, ONGC move up; bank stocks decline on continuing concerns of a rate hike

Trading started on a high note on Thursday, triggered by Asian stocks which rebounded after a sharp decline yesterday in a knee-jerk reaction to the increase in the cash reserve ratio for Chinese banks. But after a robust opening, the market was sold off until it firmed up after the European market opened strong. The day ended with a gain of 75 points in the Sensex which closed at 17,585. The index touched a high of 17,628 and a low of 17,525 during the session. The NSE Nifty ended at a provisional 5,259 points, up 0.48% or 25 points. The premarket futures in US are trading higher, as are European markets. Higher prices seem to be the path of least resistance.

Asian stocks were higher following a higher close in US stocks on Wednesday. The Dow Jones Industrial Average hit a fresh 15-month closing high, gaining 53 points. The Standard & Poor's 500 Index gained 9.46 points and the Nasdaq Composite Index was up 25 points, or 1.12%, to 2,307.90.

Among Indian stocks, Punj Lloyd has secured a Rs574 crore offshore EPC contract from PTT Public Company Ltd, a Thailand state-owned oil and gas major, for platform compression facilities in the Gulf of Thailand. The stock was up nearly 2% at Rs216.50. 

Infosys was up for the fourth consecutive day while TCS was down. Wipro was up 3.61%.

The market was propped up by a rise in two heavyweights—RIL and ONGC. RIL rose 2.26% after it announced raising $763 million through a block sale of 3.3 crore shares on Monday.

BHEL (up 1.89%) has received a Rs200-crore order from PowerGrid for supplying insulators needed in transmission lines.

Bank stocks were down on continuing concerns of a rate hike.

The surprise of the day was that oil marketing companies (OMCs) did not get sold off and ONGC was actually up 2.94%, despite the petroleum minister Murli Deora stating that the FM has not agreed to the demand of Rs31,800 crore of cash &/or oil bonds to compensate for fuel subsidy. In fact, the finance ministry has clearly re-iterated today that there would be no oil bonds issuance this year.

This was anticipated because government finances are stretched for FY10. In fact, a few days back, the finance secretary had said that the government would be willing to pay cash of only Rs12,000 crore-Rs15,000 crore, leaving a gap of Rs15,000 crore over and above the Rs17000 crore loss suffered by oil firms in upstream operations . After Murli Deora’s comment today, the OMCs should have sold off. But, of course, we are in a bull market.
 

  • Like this story? Get our top stories by email.

    User

    "By 2010, we will hopefully come to the take-off point to becoming a true Indian multinational in our sector" — AM Naik

    A M Naik rose to the top slot in Larsen & Toubro, and put it on the path to being a multinational entity.

    AM Naik, Executive Chairman of Larsen & Toubro, an engineering and construction giant, has steered the company through some of its most turbulent times. Under him, L&T has recorded probably the most robust performance and the scrip has had the fastest rise in its history. How did...

    Premium Content
    Monthly Digital Access

    Subscribe

    Already A Subscriber?
    Login
    Yearly Digital Access

    Subscribe

    Moneylife Magazine Subscriber or MAS member?
    Login

    Yearly Subscriber Login

    Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
  • "You will not get this kind of growth opportunity in the next 15-20 years anywhere in the world" — Sudhakar Prabhu

    Sudhakar Prabhu has built the Wankhede Stadium in Mumbai and the Jeejeebhoy Towers that houses the Bombay Stock Exchange.

    Frischmann Prabhu -- announces a small board at the start of a dirty lane in Prabhadevi in Mumbai, flanked by tightly-huddled hutments. Down the uneven lane is a massive 16,000 sq ft of refurbished godown, with minimal decoration and a plain jute mat to cover...

    Premium Content
    Monthly Digital Access

    Subscribe

    Already A Subscriber?
    Login
    Yearly Digital Access

    Subscribe

    Moneylife Magazine Subscriber or MAS member?
    Login

    Yearly Subscriber Login

    Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
  • We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)