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Wednesday September 9, 12:40 PM
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BSE Sensex rises 0.2 pct; Reliance, HDFC Bank up
MUMBAI (Reuters) – The BSE Sensex (^BSESN : 17578.23 +58.97
) was trading up 0.2 percent on Wednesday, led by energy giant Reliance Industries (RELIANCE.NS : 1092.05 +15.1) that rose as oil prices held their ground after jumping 4.5 percent the previous day.
Metal stocks Hindalco Industries (HINDALC0.NS : 142 0
) and Sterlite Industries climbed 1.8-2.8 percent after Goldman Sachs on Tuesday raised its copper price forecast for end-2010 by more than 30 percent on evidence of stronger-than-expected recovery in global industrial activity.
However, there was resistance after shares had rallied 4.7 percent over the past three sessions and doubled the gains in the main index from its 2009 low in early March.
At 12:11 p.m. (0641 GMT), the 30-share BSE index was up 0.17 percent at 16,150.62, with only 12 stocks gaining, after falling as much as 0.5 percent in early trade.
"I think it's logical that profit sales will come in at this level after we saw a decent rise in the last few days," said R.K. Gupta, managing director of Taurus Mutual Fund.
The benchmark index had climbed to its highest close in 15 months on Tuesday, taking gains to 67 percent so far this year and more than doubling from its March low of 8,047.17.
"The only silver lining is the late revival of monsoon but what worries is credit offtake is not high," Gupta said.
Loan growth has been sluggish so far this year as banks have been wary of lending funds. Latest data showed bank credit expanded an annual 14.9 percent in the week ended Aug. 14, below a central bank projection of 20 percent for 2009/10.
Still, private sector HDFC Bank was among the main gainers, rising 0.7 percent to 1,465.30 rupees.
Energy explorer Reliance, which has the most weight in the main index, firmed 2.9 percent to 2,135 rupees on recent spike in oil prices, with foreign funds among the buyers, traders said.
The stock has risen 91 percent from a March 6 low, compared with a more than 100 percent jump in the index.
State-run refiners, who are forced to sell fuel at government-set low prices, dropped as oil steadied above $71 a barrel on Wednesday.
Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum (BPCL.NS : 522.6 -4.1) Corp were trading 2.5 percent to 3.4 percent lower.
The 50-share NSE (^NSEI : 5262.8 +16.9) index was up 0.1 percent at 4,811.05.
Asian shares were down with Japan's Nikkei shedding 0.8 percent, while MSCI's measure of other Asian markets was down 0.4 percent.
MAIN TOP 3 BY VOLUME
* IFCI on 18.6 million shares
* NHPC on 8.7 million shares
* Ispat Industries (NIPPONDEN.NS : 0 0) on 5.2 million shares
STOCKS ON THE MOVE
* Jet Airways extended losses and fell as much as 6.5 percent to 245 rupees after the carrier cancelled flights for the second successive day as a flash strike by its pilots continued.
* Uttam Galva Steels rose nearly 5 percent to a new high of 137.85 rupees -- up as much as 21 percent since Sept. 7
(For more news on Reuters Money click http://www.reutersmoney.in)
