Indian shares rallied on Friday, mirroring extremely positive global cues after the U.S. Federal Reserve announced stimulus measures to boost the economy.
Domestically, a Rs. 5 per liter hike in heavily-subsidized diesel prices and the decision to cap supply of subsidized LPG cylinders at six per household in a year boosted hopes that more reforms are on the anvil.
Investors now eagerly await August inflation data due around noon today and impending decisions on disinvestment and FDI in aviation for clues to RBI's monetary policy stance at the upcoming policy meeting next week.
The benchmark BSE Sensex is currently up 355 points or 1.97 percent at 18,376, while the broader Nifty index is at 5,544, up 109 points or a little over 2 percent from its previous close. Hindalco, ICICI Bank, Tata Motors, SBI, Tata Steel, Jindal Steel, Sterlite, Gail India, Maruti Suzuki and Tata Power are among the prominent gainers in the Sensex pack, rising 3-5 percent.
Shares of state-run oil retailers are rallying after the government hiked diesel prices by a steep Rs 5 per liter, excluding value-added tax. HPCL, BPCL and IOC are up about 2 percent each, while oil explorer ONGC is adding 1.5 percent.
Aviation stocks are in the spotlight ahead of a Cabinet meet today to consider allowing foreign direct investment in aviation. Kingfisher is rallying 9 percent, Jet Airways is up 4.6 percent and SpiceJet is climbing 7 percent. Public sector undertakings such as MMTC, Oil India, Hindustan Copper, Neyveli Lignite and Nalco are up 1-3 percent on divestment reports.
Pidilite Industries is moving up 0.4 percent. The company said it has allotted 78,026 equity shares to an investor pursuant to conversion of zero-coupon foreign currency convertible bonds issued in December 2007.
Ranbaxy Laboratories is rising 0.9 percent after the pharmaceutical firm received approval from Malaysian authorities to set up its second Greenfield manufacturing facility in the country at an investment of $40 million. Strides Arcolab is gaining 1.2 percent after it received the U.S. FDA approval for its Polish sterile facility.
Aditya Birla Group's flagship company Grasim Industries is moving up 0.6 percent. The company has entered into an agreement with Japanese firm Omikenshi to jointly develop new international markets for rayon products.
Essar Oil is climbing 5.7 percent after the Supreme Court directed the Ruias-owned company to pay sales tax dues of Rs. 5,189 crore in eight tranches to Gujarat government.
Orissa Minerals Development Company is locked at the 10 percent upper circuit limit after its board decided against issuing bonus shares. Pharma major Lupin is down 0.4 percent after its subsidiary, Lupin Pharmaceuticals Inc., received final approval from the U.S. health regulator for its Escitalopram tablets.
Indian shares ended largely unchanged on Thursday, as lackluster global cues ahead of the FOMC decision and the rupee's weakness despite continued foreign fund inflows offset fresh hopes for fiscal reforms. Extending gains for a seventh day in a row, the benchmark BSE Sensex ended the session up 21 points or 0.12 percent at 18,021, while the broader 50-share Nifty index rose by 4 points or 0.08 percent to 5,435.
by RTT Staff Writer
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