Sensex ends 200 points higher; oil & gas, infra, tech gains
28 June 2010
The benchmark Sensex rallied 200 points on Monday, on the back of buying across all sectors barring FMCG. Oil & gas, infrastructure, technology, telecom, financial and metal companies' shares led this rally.
European markets as well as US index futures were quite supportive today in the last couple of hours, which added another 100 points gains on Sensex. CAC, DAX and FTSE rose 0.5-1%; Dow Jones and Nasdaq futures were up 0.3% each, at the time of closing of Indian equities. Asian markets ended mixed.
Oil & gas companies' shares remained star performers as well as most active for the second consecutive day, after the government deregulated petrol prices and promised to act on diesel later on June 25. The govt also raised prices of diesel, kerosene and LPG products.
Speaking about the oil marketing companies (OMCs) in light of the reforms, Ramesh Damani, member, BSE, said the action was long overdue and was inevitable. "I think it sets the precedent, extremely happy with the bold reform that took place. The fact that they have the courage to do it not only in petrol but also LPG and kerosene speaks volume."
Rajat Rajgharia of Motilal Oswal Securities is bullish on the entire public sector oil undertakings post Friday's fuel price hike. "We maintain an overweight on ONGC, IOC, and GAIL given that investors will now start valuing these stocks at better multiples. There is still room for these stocks to move up."
HPCL shot up 8% and IOC up 5.4%. BPCL gained 3.4% and ONGC rose 3.2%. Oil India went up 2.3% while GAIL India declined 2%. Heavyweight Reliance Industries surged 2.56%.