Business | Markets
Investors return as Reliance leads Indian stock revival
Indian stocks gained for the first time in three days, led by Reliance Industries Ltd. after some investors judged recent declines excessive.
- Bloomberg
- Published: 23:20 November 7, 2008
Mumbai: Indian stocks gained for the first time in three days, led by Reliance Industries Ltd. after some investors judged recent declines excessive.
Reliance Industries, the nation's most valuable company, advanced 4.3 per cent after dropping 19.4 per cent in the previous two sessions.
Hindalco Industries Ltd., India's biggest non-ferrous producer, jumped 6.6 per cent, the most in a week after losing 12 per cent in the past two days.
"The most beaten down stocks among the oil and gas and metal sectors have gained," said Ajay Bodke, who helps manage the equivalent of $872 million of stocks at IDFC Mutual Fund in Mumbai. "It's more of a technical bounce and I think it's too early to call the bottom."
The benchmark Bombay Stock Exchange Sensitive Index, or Sensex, rose 230.07, or 2.4 per cent, to close at 9,964.29. The gauge gained 1.8 per cent for the week.
The S&P CNX Nifty Index on the National Stock Exchange rose 80.35, or 2.8 per cent, to 2,973. The BSE 200 Index gained 2.4 per cent to 1,184.61. Nifty futures for November delivery advanced 4.5 per cent to 3,018.
Reliance added Rs50.2, or 4.3 per cent, to 1,220.75. BSE Oil & Gas Index, which comprises 11 companies, rose 3.4 per cent, to 6,013, the first gain in three days.
State-run oil refiners soared after crude oil fell below $60 a barrel to the lowest since March 22, 2007. Crude traded at $61.66 a barrel at 9.22am London time on the New York Mercantile Exchange.
"Falling crude prices will be a big boost for oil refiners in cutting their losses," IDFC's Bodke said.
Indian Oil Corp., the nation's largest refiner by capacity, rose Rs26.15, or 7.7 per cent, to Rs368.05, the most since September 2. Bharat Petroleum Corp., the second biggest, added Rs19.95, or 6.4 per cent, to Rs330.75, the highest in more than two weeks. Hindustan Petroleum Corp., the No. 3, climbed Rs16.50, or 8.2 per cent, to Rs218.85, the most since October 13.
Hindalco jumped Rs3.75, or 6.6 per cent, to Rs60.30, the most in a week. India's largest aluminum producer, borrowed $982 million from a group of 11 international banks to refinance debt it raised for the purchase of Novelis Inc., two people involved in the deal said.
Overseas investors bought a net Rs3.4 billion ($84.2 million) of Indian equities on November 5, lowering outflows from stocks this year to $12.4 billion, according to the nation's stock market regulator.
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