Sensex surges 121 pts; RIL, ONGC among major gainers

The BSE benchmark Sensex today closed 121 points higher on buying in energy stocks following reports of a gradual hike in fuel prices amid a firming global trend.

Led by energy major Reliance Industries and ONGC, the Sensex closed 121.04 points up, or 0.63 percent, to 19,444.84.

The broad-based National Stock Exchange index Nifty spurted by 38.25 points, or 0.65 per cent, to 5,908.35.

Brokers said energy majors like RIL, ONGC, Indian Oil and Bharat Petroleum remained on the fore-front following reports that the government might gradually increase the diesel price next year to cut subsidies.

They said the uptrend was further supported on a firming global trend as US lawmakers arranged talks with political parties before a budget deadline.

In 30-BSE index kitty stocks, 22 closed with gains while eight surrendered moderate ground led by banking sector on profit-booking from recent upsurge.

The oil and gas sector index gained the most by 2.38 per cent to 8,510.52 as segment major and index-heaviest Reliance Industries surged 2.73 per cent to Rs 840.35 and ONGC by 2.49 percent to Rs 265.85.

Among others, Oil India added 1.52 per cent to Rs 466.15, Indian Oil by 3.03 per cent to Rs 268.80, Hindustan Petroleum by 4.23 per cent to Rs 292.90 and Bharat Petroleum by 2.23 percent to Rs 353.05.

The information technologies sector was second best erformer by rising 1.21 per cent to 5,686.98, while banking sector index declined 0.01 percent to 14,330.47 as investor booked profits from the recent surge.

Equity benchmarks erased some of morning gains due to weakness in banks and capital goods stocks. However, stocks in oil & gas, technology and FMCG sectors were quite supportive.

The 30-share BSE Sensex was up 51.77 points to 19,375.57 while the 50-share NSE Nifty rose 14.55 points to 5,884.65.

Country's largest lender State Bank of India declined over 0.5 percent while its rivals ICICI Bank and HDFC Bank were down 0.2-0.4 percent.

Engineering conglomerate Larsen & Toubro and state-controlled power equipment maker BHEL moved down 0.27 percent each.

Healthcare firm Sun Pharma topped the selling list, losing 1.5 percent. Utility vehicle maker Mahindra & Mahindra and telecom operator Bharti Airtel erased all early gains, falling 0.9 percent and 0.33 percent, respectively.

Meanwhile, the oil & gas stocks continued to see buying interest following the petroleum ministry proposed a gradual rise in diesel prices by Re 1 per litre every month over a 10-month period. Oil retailers HPCL, BPCL and IOC gained 2-4 percent while Reliance Industries and ONGC were up 2 percent each.

Software services exporters Infosys and Wipro climbed over 1 percent while their rival TCS rose 0.5 percent.

Top car maker Maruti Suzuki moved up 1 percent after agencies reported that the company is considering setting up its first overseas assembly plant in Africa as it seeks to revive exports.

The BSE benchmark Sensex advanced by 105 points in late morning trade on all-round buying from operators on the back of firm Asian cues. Shares of refinery, power, PSU, metal, IT and realty firmed up on renewed demand. IT stocks rose on hopes that the US lawmakers will try to reach a deal to break the budget impasse before the end of the year.

The BSE-30 share index resumed higher at 19,364.08 and shot up further to 19,445.04 before quoting 19,428.73 at 1035 hrs, showing a gain of 104.93 points, or 0.54 per cent, from its last close. The NSE-50 share index Nifty also moved up by 34.40 points, or 0.59 per cent, to 5,904.50 at 1035 hrs. Major gainers were - Hindalco (2.54 per cent), ONGC (2.45 per cent), Maruti Suzuki (2.03 per cent), Sterlite Ind (1.71 per cent), Hero Motocorp (1.67 per cent), NTPC (1.58 per cent), Cipla (1.28 per cent) and Reliance (1.21 per cent).

Asian stocks were trading higher with Japanese shares poised for their biggest annual advance since 2005, after a report that the country's consumer prices fell fanned speculation that the central bank will respond to government calls for more asset purchases. Key benchmark indices in China, Hong Kong, Indonesia, Taiwan, Japan and South Korea rose by 0.05 to 0.63 per cent. Singapore's Straits Times fell by 0.14 per cent.

Key equity indices were firm early trade, as traders are betting that the US 'fiscal cliff' issue will be resolved, which in turn could boost sentiment in global markets. The Sensex was up 80 points at 19403, and the Nifty was up 26 points at 5896.

After huge gains late November-early December, equities have been consolidating for the last couple of weeks on a combination of technical and fundamental factors. Foreign fund flows have eased because of the holiday season, and domestic fund houses continue to face redemption pressures.

Oil marketing majors HPCL and BPCL are up 3-4 percent to Rs 359 and Rs 289 respectively after as the petroleum ministry proposed a gradual  rise in diesel prices by Re 1 per litre every month over a 10-month period.

Suzlon shares were up 6 percent at Rs 19, after a partial stake sale by the promoters earlier this week as part of the debt restructuring process.

Dr Reddy's shares were flat at Rs 1835, unmoved by news of Bristol Myers suing the company in the US for infringing the patent of its cancer drug.

Among early gainers, shares of oil marketing, power, metal and IT shares were firm, while bank shares were under pressure.