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Monday October 12, 11:50 AM
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BSE Sensex rises 1 pct; Ambani firms up
MUMBAI (Reuters) - The BSE Sensex (^BSESN : 16632.01 -222.92
) rose 1 percent on Monday, led by Reliance Industries (RELIANCE.NS : 1045.95 -17.8) after the estranged billionaire Ambani brothers that control the Reliance empire spanning energy, telecommunications and financial services raised hopes for a resolution of disputes between the two.
"All stocks with the Reliance tag have gone up in a knee-jerk reaction on hopes that there can be a patch up between RIL and RNRL (RNRL.NS : 67.25 -0.45)," said Deven Choksey, managing director and CEO of K.R. Choksey Shares.
"But I think it's too late for that. It's a corporate battle now, with too many people involved," he said.
By 11:20 a.m. (0550 GMT), the 30-share BSE Index was trading up 1.03 percent at 16,814.12 points, with 25 of its components advancing.
Reliance Industries, controlled by elder brother Mukesh Ambani and which has the heaviest weight in the index, climbed 1.6 percent to 2,134 rupees, while Anil Ambani-led Reliance Natural Resources Ltd jumped 5.2 percent to 87.30 rupees.
Reliance Power, Reliance Communications (RCOM.NS : 166.6 -1.5), and Reliance Infrastructure, all controlled by Anil, were trading 1.8-3.2 percent higher.
The latest dispute has been over a deal for Reliance Industries to sell gas to Reliance Natural at below-market rates as agreed in a 2005 family settlement to divide the business following the death of the brothers' father in 2002.
In a statement on Sunday, Anil said he wanted an end to the impasse. Reliance Industries said it welcomed the move, but added the dispute under litigation was not merely a family matter and that it hoped "any overtures for rapprochement are in no way related to the ongoing hearing of the case".
Traders said investors were awaiting August industrial output
due by midday (0630 GMT).
The median forecast in a Reuters poll showed the output may
have risen 9.2 percent from a year earlier, picking up from a
provisional 6.8 percent rise in July, on robust consumer demand
and government expenditure.
The BSE index has risen over 74 percent so far this year, powered by foreign inflows of more than $12.8 billion and further gains would depend upon companies perform in the coming quarters, traders said.
In the broader market, gainers led losers in a ratio of 1.9:1 in a relatively low volume of 123 million shares.
The 50-share NSE (^NSEI : 4941.75 -63.8) index was up 1 percent at 4,995.20.
STOCKS ON THE MOVE
* EID Parry (India) rose 3.2 percent to 322 rupees after the sugar and bio-products company acquired 76 percent in Karnataka-based unlisted Sadashiva Sugars with a capacity to crush 2,500 tonnes per day.
* Peninsula Land was up 4.5 percent at 86.40 rupees after the real estate developer posted a 33.5 percent in its September quarter net profit.
MAIN TOP 3 BY VOLUME
* Ispat Industries (NIPPONDEN.NS : 0 0) on 4.6 million shares.
* Reliance Natural Resources on 2.9 million shares.
* Unitech on 2.2 million shares
(For more news on Reuters Money visit http://www.reutersmoney.in)
FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* India rupee report [INR/]
* India bond report [IN/]
* Dollar gains on yen although rally seen limited [FRX/]
* Oil tops $72 on economic optimism, oil demand outlook [O/R]
* Dollar limps up, Asia shares slip [MKTS/GLOB]
* Dow hits 2009 closing high on earnings optimism [.N]
* For closing rates of Indian ADRs
(Reporting by Ami Shah; Editing by Ranjit Gangadharan)
