MUMBAI (Commodity Online): Indian stock markets maintained positive territory on Friday, June 11, 2010 as the buoyancy was witnessed in the key sectors like oil & gas and automobiles, while metal stocks give it a miss owing to the overall weakness in the metal sector.
The lead was taken by the index heavyweight, Reliance Industries Ltd (BOM:500325) which surged by over 3% on the Bombay Stock Exchange (BSE) after the company made some of the crucial announcements with regard to oil exploration in Cambay Basin and stake acquisition in a telecom company. The company announced its sixth oil discovery in exploratory block CB-ONN-2003/1 (CB 10 A&B), awarded under the NELP-V round of exploration bidding. In yet another significant development for the company, RIL has entered into telecom sector by acquiring 95% stake in Infotel Broadband and making it a subsidiary.
Another leader in oil and gas sector was Cairn India Ltd (BOM:532792), which continued its upward journey of past three trading sessions. The stock has gained by close to 4.5% in past three trading sessions. Gains in Cairn India were mainly attributed to the rising crude prices that rose by more than USD 1 per barrel on the New York Mercantile Exchange on Thursday, 10 June 2010. In the Indian commexes, crude prices hovered at Rs.3492 per barrel on MCX after hitting an intra-day high of Rs.3545 on Friday.
Meanwhile, metal stocks remained weak on Friday, June 11, 2010 as the sectoral index, BSE metals fell by 0.10% at 14385.88 with leading metal stocks posting losses on the bourses. India-based coking coal miner, Gujarat NRE Coke Ltd (BOM:512579) tanked by 2.21% to Rs.57.55 on BSE, followed by steel major, JSW Steel Ltd that sank by 1.15% to Rs.1038.65.
However, the stocks found some relief on the IIP news, showing country’s industrial output having rose much faster than expected at 17.6% during April 2010 from a year earlier on strong consumer demand and government spending.
March’s annual growth rate was revised upwards to 13.9% from 13.5%. Manufacturing output rose 19.4% in April 2010. The industrial output rose 10.4% in the 2009/10 fiscal year (April-March), faster than the 2.6% clocked in the previous fiscal year.
India’s monsoon delivered normal rainfall in last week, the India Meteorological Department (IMD) said on 10 June 2010. Rainfall in the seven days to 9 June 2010 recovered to normal after an initial hiccups caused due to threats from cyclone Phet. The IMD in its update on Thursday said Southwest monsoon has advanced into some parts of Konkan & Goa, south Madhya Maharashtra and north interior Karnataka, remaining parts of coastal and south interior Karnataka, some more parts of Rayalaseema and coastal Andhra Pradesh.
Global cues remained positive for the Indian markets as European shares edged higher on Friday, rising for the third day on optimism over global growth. Key indices in UK and France rose by 0.53% to 0.99%. But, Germany’s DAX fell 0.14%.
