 "Sensex gains 1.7% on hopes of diesel price hike")
It was a volatile session on the street today, as both the BSE and the NSE gained 1.7 percent. The BSE Sensex, the barometer of the Indian economy, closed at 16,222, up 288 points from the day’s low and off just 30 points from the day’s high. Nifty also closed 21 points above the psychological 4,900 mark. The rebound in the European markets and the rupee also aided in the sharp upward movement. The rupee was trading at Rs 55.88 against the dollar.
The sharp gain made by the Sensex are the biggest single day gain since 30 March. Market moved up after the steep hike in petrol prices sparked hopes of similar hikes in other fuel, pushing up energy stocks such as ONGC, as per Reuters.
The mid-cap and the small-cap index underperformed the markets as they closed less than a percent. All the sectoral indices closed in the green led by gains in Bankex, oil&gas and tech.
The star performer of today’s market was ONCG which gained more than 5 percent on the bourses today. The stock moved up on hopes that government may hike diesel price.
Bharti Airtel also gained 5.6 percent after news emerged that the company has acquired 49 percent stake in Qualcomm BWA Entities.
“Indian benchmarks closed higher by nearly 2% today and out-performed most Asian markets. Government’s decision to increase petrol prices by about 11% and expectations of an increase in diesel, kerosene, LPG prices lifted sentiments. European markets also were in the green as Indian markets closed. The rupee was stronger by about 1% v/s USD and that also helped the equity markets.
Any further measure on fuel price increases will stroke inflation but will likely make the RBI review its options on reducing interest rates further. We note that, RBI had made future interest rate cuts contingent on action on the fiscal front from the Government.”
Dipen Shah, Head of Fundamental Research, Kotak Securities
For now, markets will be keenly watching tomorrow’s meet headed by Finance Minister Pranab Mukherjee will meet on Friday to discuss raising diesel, liquefied petroleum gas and kerosene prices.
 "Sensex, Nifty crash wipes out Rs 6 lakh crore investor wealth: Why are markets suddenly falling?")
 "Indian stock market at record high; Sensex hits 64,000-mark, Nifty surpasses 19,000 points")
 "MRF shares hit Rs 1 lakh mark: Why is it not the most expensive stock?")
 "Investors become poorer by Rs 5.78 lakh crore in two days of market fall")
 "Sensex, Nifty crash wipes out Rs 6 lakh crore investor wealth: Why are markets suddenly falling?")
 "Indian stock market at record high; Sensex hits 64,000-mark, Nifty surpasses 19,000 points")
 "MRF shares hit Rs 1 lakh mark: Why is it not the most expensive stock?")
 "Investors become poorer by Rs 5.78 lakh crore in two days of market fall")