ITC hits record high
A bout of volatility was witnessed in early trade as key benchmark indices pared initial gains. The barometer index, BSE Sensex, was up 2.27 points or 0.01%, off close to 55 points from the day's high and up about 5 points from the day's low. The market breadth was strong. Index heavyweight and cigarette maker ITC hit record high. Another index heavyweight(RIL) edged higher after BP PLC on Friday, 28 September 2012, said that it has agreed to sell all its interests in purified terephthalic acid (PTA) production in Malaysia to Reliance Global Holdings Pte.
Realty stocks extended recent gains as investors bet that retail real estate will get a boost from the entry of foreign supermarket chains in the country with the government allowing up to 51% foreign direct investment in multi-brand retail trade.
At 9:30 IST, the BSE Sensex was up 2.27 points or 0.01% to 18,765.01. The index gained 59.41 points at the day's high of 18,822.15 in early trade. The index fell 2.68 points at the day's low of 18,760.06 in early trade.
The S&P CNX Nifty was down 2.60 points or 0.05% to 5,700.70. The index hit a high of 5,715.60 and a low of 5,698.70 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 783 shares rose and 279 shares fell. A total of 56 shares were unchanged.
From the 30-share Sensex pack, 17 stocks fell and rest of them rose.
Index heavyweight Reliance Industries (RIL) gained 0.6%. BP PLC on Friday, 28 September 2012, announced that it has agreed to sell all its interests in purified terephthalic acid (PTA) production in Malaysia to Reliance Global Holdings Pte. The agreement concerns BP's 100% equity in BP Chemicals (Malaysia) Sdn Bhd (BPCM), located at Kuantan on the east coast of Malaysia. Reliance Global Holdings has agreed to purchase BP's interest in BPCM for $230 million in cash and both parties anticipate completing the transaction in 2012, BP PLC said in a statement.
James Yim, head of BP's aromatics business in Asia, said: "This is an efficient plant with a good market position in the region. RECRON Malaysia, part of the Reliance Group, is already our largest customer in Malaysia and Reliance Industries (RIL) is a significant feedstock supplier at Kuantan, so Reliance is a natural owner of this plant." All current staff of BPCM are expected to transfer to the new owners under equivalent terms and conditions. BP's acetic acid manufacturing and marketing business in Malaysia is unaffected by this sale, BP PLC said.
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