ITC scales record high
Key benchmark indices edged higher in early trade on firm Asian stocks. The BSE Sensex was up 151.96 points or 0.81%. Shares of index heavyweight and cigarette maker ITC scaled record high. Another index heavyweight(RIL) gained on bargain hunting after Monday's sharp fall. The market breadth was strong.
Asian stocks edged higher on Tuesday after China's central bank, the People's Bank of China, injected liquidity to ease tight money conditions in the banking system in the world's second biggest economy.
PSU OMCs edged higher after cutting petrol price by 56 paise per litre from Monday midnight. Shares of two-wheeler makers were mixed after the petrol price cut. Car major Maruti Suzuki India gained 1.53% after the petrol price cut.
At 9:25 IST, the BSE Sensex was up 151.96 points or 0.81% to 18,860.94. The index gained 176.86 points at the day's high of 18,885.84 in early trade. The index rose 87.27 points at the day's low of 18,796.25 in opening trade.
The S&P CNX Nifty was up 49.90 points or 0.88% to 5,725.90. The index hit a high of 5728.65 and a low of 5708.15 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 662 shares rose and 183 shares fell. A total of 28 shares were unchanged.
The total turnover on BSE amounted to Rs 153 crore by 09:20 IST
From the 30-share Sensex pack, 27 stocks gained while only three of them declined. ICICI Bank (up 1.95%), Tata Steel (up 1.53%) and L&T (up 1.63%) edged higher from the Sensex pack.
Bharti Airtel (down 0.87%) and Bhel (down 0.55%) edged lower from the Sensex pack.
Index heavyweight Reliance Industries (RIL) rose 0.63% to Rs 823.85 on bargain hunting after sliding 4.51% on Monday. RIL last week signed a 15 year heavy crude oil supply contract and a memorandum of understanding with Venezuelan state-run oil company Petroleos de Venezuela SA (PDVSA) for further development of Venezuelan heavy oil fields. PDVSA will supply between 300,000 to 400,000 barrels per day of Venezuelan heavy crude oil to RIL's two refineries in Jamnagar under a 15 year crude oil supply contract. As per the MoU with PDVSA, RIL is to explore upstream options for joint participation in heavy oil projects of the Orinoco Oil Belt. RIL will also co-operate with Petroleos by providing technical assistance in areas of offshore upstream, refining and other downstream projects.
Meanwhile, RIL has purchased 3.9 crore shares and spent Rs 2794.73 crore (excluding brokerage, service tax, Securities Transaction Tax, Stamp Duty, Exchange Transaction Charges and Sebi fees) till 18 September 2012 under the company's ongoing share buyback program. RIL has set maximum buyback price of Rs 870 per share. The company has set aside Rs 10440 crore for share buyback. The buyback program opened on 1 February 2012 and closes on 19 January 2013. RIL chairmansaid at the company's Annual General Meeting in June 2012 that the company's buyback program represents a highly accretive use of cash by the company and it will supplement earnings growth from operations, for higher EPS (earnings per share), in the near future.
Index heavyweight and cigarette maker ITC rose 0.34% to Rs 278.45. The stock hit a record high of Rs 279.75 in intraday trade today, 9 October 2012.
PSU OMCs BPCL (up 0.38%), HPCL (up 0.86%) and Indian Oil Corporation (IOC) (up 0.17%), edged higher. PSU OMCs had cut petrol price by 56 paise per litre from Monday midnight. PSU OMCs cut petrol prices because of significant appreciation in the rupee against dollar and softening of international oil prices.
Shares of two-wheeler makers were mixed after the petrol price cut. Bajaj Auto fell 0.94% and Hero MotoCorp rose 0.91%.
Car major Maruti Suzuki India gained 1.53% after the petrol price cut.
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