It was a lackluster session on the markets today. Both the BSE Sensex and the Nifty gained a paltry 0.12-0.14 percent. The BSE Sensex, the barometer of the Indian economy, closed at 16,906, up 24.4 points and up 91 points from the day’s low. The S&P CNX Nifty also closed up 6 points to 5,120.
Of the 13 sectoral BSE indices, eight closed in green. Oil & gas stocks were the top performers followed by power. Oil and gas stocks moved up as the fall in crude oil prices is helping ease the burden of selling fuel at subsidised prices for companies like HPCL (2.36 percent), BPCL (0.4 percent), ONGC (1.7 percent) and GAIL (2.4 percent), as per ICICI Securities. The reports further says the under-recovery declined to Rs 1.52 lakh crore, and could fall to Rs 1.32 lakh crore if diesel prices are raised.
On the other hand, FMCG stocks declined by almost a percent after concerns cropped up when the India Meteorological Department said the country is expected to receive the least rainfall recorded in the last 30 years.
Meanwhile, Nomura cut India’s FY13 GDP forecast to 5.8 percent around six percent earlier. Prabhat Awasthi, Nomura Financial Advisory & Securities expressed concern that despite the fall in commodity prices, there is still need of capital for growth which is getting harder to come by as the external environment deteriorates.
Stock specific news:
•Bharat Heavy Electricals closed up 0.8 percent on reports that it has secured a contract worth Rs 950 crore for a 1,020 megawatts hydroelectric project in Bhutan.
•Reliance Power gained two percent after the company informed that it has synchronised the first of the two units of its 600 megawatts Butibori thermal power project near Nagpur in Maharashtra.
•Manappuram Finance galloped 11 percent, extending its recent gains, after latest disclosure by the company showed that private equity firm Baring India raised stake in the company.
•Educomp Solutions closed up 1.2 percent, extending recent rally, triggered by the company tying up funding of $155 million to repay foreign currency convertible bonds on due date.