Markets ride on gas; Sensex hits 3-week high Mumbai: Stocks: Shares flared up on smart rebound in rupee value coupled with steep hike in gas prices amid hopes, US Fed will delay tapering monetary stimulus as the S&P BSE benchmark Sensex spurted 622 points to end at a three -week high of 19,395.81 points.
Hectic short-covering activity during the week in view of expiry of derivatives contract on June 27 also boosted the market, which snapped a three-week losing streak and posted handsome gains.
In a major step forward in energy sector reforms, the Centre on Thursday approved near doubling of natural gas prices to USD 8.4 per mmBtu from April 1 next and okayed setting up of a coal regulator. Last week, it allowed power producers to pass through higher imported coal prices.
Recovery in the rupee value to 59.21 levels at the tail-end of the week, which touched a historic low of 60.76 against dollar on Wednesday, after current account deficit (CAD) moderated "sharply" to 3.6 percent of GDP in March quarter of 2012-13 fiscal from 6.7 percent in December quarter, calmed nervous investors.
The Bombay Stock Exchange 30-share barometer resumed lower at 18,714.06 and dropped further to a two-month low of 18,467.16. However, it recovered after mid-week to hit a high of 19,432.94 before finishing at 19,395.81, showing a smart gain of 621.57 points, or 3.31 percent. The key index had dropped by a massive 986.06 points, or 4.99 percent, in the last three weeks.
The wide-based 50-share CNX Nifty of the NSE also rose by a healthy 174.55 points, or 3.08 percent, to end at a three-week high of 5,842.20. It had dropped 318.30 points, or 5.32 percent, in the last three weeks.
(Agencies)
Latest News from Business News Desk
0 comments:
Post a Comment