Nifty closes above 5100 led by RIL, positive global cues
23 Nov 2009
The Nifty closed at one-month high led by positive global cues and surge in heavyweight Reliance Industries. Shares of FMCG, oil & gas, metal, auto, cement, select pharma and banking companies helped the Nifty to close above the 5,100 mark. However, selling in telecom, realty, select power and technology stocks along with SBI limited the gains to some extent.
Reliance Industries (RIL) has made a preliminary non-binding cash offer to buy a controlling interest in the Dutch company LyondellBasell. RIL said, "The offer is preliminary and subject to customary conditions including conduct of due diligence, documentation and receipt of sufficient creditor support." RIL gained over 3%.
According to Reuters, both Reliance and LyondellBasell did not disclose the size of the offer in their statements. "The offer is in the vicinity of about USD 10 billion to USD 12 billion," one source said, while another said it was around the upper end of the band. The two sources declined to be named as they are not authorised to speak to the media. LyondellBasell said the offer made by RIL represented a potential alternative to its previously filed reorganisation plan to emerge from Chapter 11 bankruptcy.
The markets were also helped by positive global cues. European markets were trading 1.4-1.8% higher and the US index futures gained 0.8% each, at the time of writing this report. Asian markets strengthened in late trade; Hang Seng, Shanghai and Straits Times ended 0.9-1.4% higher. Taiwan Weighted and Kospi were flat. Nikkei was shut today on account of Labour Thanksgiving day.
Cigarette major ITC hit new all-time high at Rs 270.20 and closed 3.54% higher at Rs 269.15. Its volumes surged over 280% to 1,430,142 shares, compared to its 5-day average of 375,304 shares.
HCL Technologies surged over 5%, as it received $200 million order from Equitable Life. The company announced this deal post market hours.
