After a tepid start, the Sensex closed in the green at 17,852.95 , 86 points up (0.49 percent) and the Nifty followed suit at 5390, 27 points up (0.50 percent) on renewed fuel price hike hopes after Oil minister Jaipal Reddy said that “The Government will have to hike the price of heavily subsidized fuels such as diesel in the short term”, a decision that could rein in burgeoning subsidy bill.
Meanwhile, Oil rose above $115 a barrel on Tuesday, lifted by expectations the US Federal Reserve would unveil further steps to stimulate its economy this week.
However, with the slowdown in the economy, the Indian public’s confidence in their country’s direction and future economic growth has declined significantly compared with just a year ago, according to a new survey by US-based Pew Research Centre.
Metal stocks including Sesa Goa (5.81 percent) , Sterlite (4.43 percent) and JSW Steel (3.13 percent) were hit after the Goa government Monday temporarily suspended operations of all the working mines in the state, pending verification of documents relating to mining activity and environmental clearances. Worst hit amongst the Metal space were stocks of Sesa Goa, Sterlite Industries and Jindal Steel which plunged in the range of 2-6%.
Oil stocks including HPCL (2.86 percent) , IOC (0.96 percent) rose after Oil Minister Jaipal Reddy said that India will have to raise the price of heavily subsidised fuels such as diesel indicating that hikes could be announced within a week. Public State Undertaking (PSU) oil firms are losing a record Rs 560 crore per day on the sale of regulated diesel and cooking fuels, and another Rs 16 crore a day on petrol. These firms are losing about Rs 6 per litre on sale of petrol, a commodity which was deregulated from government in June 2010 but rates haven’t moved in tandem with the cost.
Sesa Goa, Sterlite Inds, Jindal Steel and Hero MotoCorp were the top losers on both the indexes.
Among the sectoral indices, Banks and IT were in the lead while Metal stocks tanked.
Stocks in News
Infosys was up 0.70 percent after the company said that its BPO arm McCamish Systems has bought US-based Marsh to expand its presence in the group life insurance space.
RIL was down 0.10 percent after the company indicated selling off some of its overseas oil and gas blocks.
Hero Motocorp was down 1 percent after on cutting production after posting a 11.9 percent fall in sales in August.