Power utility shares rally on hopes of reforms
Key benchmark indices pared gains in afternoon trade on profit booking after striking their highest level in nearly 14 months on easing political worries after Samajwadi Party (SP) chiefhinted at continuing giving outside support to the UPA saying he does not want communal forces to come to power. The market sentiment was boosted by the government on Thursday notifying he rules for allowing greater foreign investment in retail, aviation and broadcasting sectors. The Sensex was up 371.13 points or 2.02%, off 147.54 points from the day's high and up 308.13 points from the day's low. The market breadth was strong. European markets rose on Friday, helped by speculation that Spain could soon request a bailout and ongoing optimism that central bank action would revive economic growth.
Index heavyweight and cigarette maker ITC extended initial gains. Another index heavyweight(RIL) was off day's high. PSU OMCs gained on the recent steep slide in crude oil prices. Power generation and distribution shares gained reports the cabinet may meet next week to take more reform steps such as improving the finances of power utilities.
The market opened on a firm note after the government on Thursday formally notified its decision to allow greater foreign investment in retail, aviation and broadcasting sectors. The market extended initial gains to hit fresh intraday high in morning trade. The Sensex hit fresh intraday high in mid-morning trade. Key benchmark indices jumped in early afternoon trade as political worries eased after Samajwadi Party chief Mulayam Singh Yadav hinted at continuing giving outside support to the UPA saying he does not want communal forces to come to power. Market pared gains in afternoon trade after striking after striking their highest level in nearly 14 months.
BSE Sensex was up 371.13 points or 2.02% to 18,719.33. The index jumped 517.62 points at the day's high of 18,866.87 in afternoon trade, its highest level since 26 July 2011. The index rose 61.95 points at the day's low of 18,411.20 at the onset of the trading session.
The S&P CNX Nifty was up 113.95 points or 2.05% to 5,668.20. The index hit a high of 5,720 in intraday trade, its highest level since 8 July 2011. The index hit a low of 5,575.45 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,746 shares rose and 987 shares fell. A total of 132 shares were unchanged.
The total turnover on BSE amounted to Rs 1732 crore
Among the 30-share Sensex pack, 27 gained while only three of them declined. ICICI Bank (up 4.47%), Sterlite Industries India (up 3.89%) and Bharti Airtel (up 3.07%) edged higher from the Sensex pack.
Index heavyweight and cigarette maker ITC advanced 2.32% to Rs 262.40. The stock had scaled a record high of Rs 272.50 in intraday trade on 14 September 2012.
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