MUMBAI: The BSE Sensex snapped two days of losing trend on Monday and gained 265 points as easing crude oil prices globally and a marginal rise in inflation reduced concerns about a possible sharp hike in interest rates, with funds buying blue-chips like RIL and Infosys.
The Bombay Stock Exchange benchmark index Sensex shot up 265.39 points or 1.46 per cent to finish at 18,439.48. It had lost 295 points in the last two sessions.
Similarly, the NSE 50-share Nifty moved up 86.05 points or 1.58 per cent to end at 5,531.50.
Oil prices fell below USD 100 a barrel in the US on reports that the earthquake in Japan would slow down demand for the time being and stem inflationary pressures globally.
Oil & gas, metal, it, banking and power sectors were the major gainers.
Sensex heavyweight Reliance Industries Ltd (RIL) was the major contributer to the gain by rising 2.63 per cent, Rs 26.05 at Rs 1,017.65, on reports that its gas production is expected to rise 23 per cent to 65 million metric standard cubic meters (mmscmd) daily from April at its blocks in the Krishna Godavari basin.
Infosys, the largest software exporter, also rose Rs 44.80 to Rs 3,099.25. The two stocks carry nearly 23 per cent weightage on the 30-stock barometer Sensex.
Besides, shares of Anil Dhirubhai Ambani (ADA) group companies were in demand on reports that Nippon Life Insurance will acquire 26 per cent stake in Reliance Life Insurance for USD 680 million. Reliance Comm was up 4.36 per cent, Reliance Mediaworks (2.85 pc), Reliance Broadcast Network (1.85 pc), and Reliance Power (3.58 pc).
"Markets gained over 1 per cent amid easing crude oil prices. Among the leaders was the heavy weight Reliance on the back of multiple positive developments, while other oil PSUs also rejoiced the softening crude oil price," said Motilal Oswal securities manager & analyst (derivatives) Bhavin Desai.
IIFL's head of research ( India Private Clients) Amar Ambani said, "Market players seemed to ignore a marginal rise in inflation for February. It rose to 8.31 per cent in February as against 8.23 per cent in the previous month."
He said, however, that some investors expected it to fall to 7.8 per cent and RBI may hike key policy rates by 25 basis points at its monetary review on March 17.
toi
