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A maturing market amid the mayhem
Shares in cigarette-to-hotel business chain ITC rose 2.6 percent on Wednesday to top the list of Sensex gainers on better earnings expectations.
The stock, which closed at 304.75 rupees, was among the big gainers on the BSE FMCG Index which topped the sectoral list with a rise of 1.9 percent.
HSBC Securities said in a note on Tuesday that the June-quarter results could be a catalyst for the stock, since it could result in EBIT (earnings before interest and taxes) margin expansion for the cigarettes business, as price increases taken are higher than necessary to offset tax increases.
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The BSE Oil & Gas sector ended 2.2 percent higher on Monday, the first full day of trade after the government raised fuel prices as part of a plan to move towards a market-determined price regime.
The government freed up state-subsidised petrol prices and raised the prices of other fuels as pressure to trim a budget deficit seemed to outweigh concerns about its political impact.
Shares in Reliance Natural hit an intra-day high of over 6 percent on Friday after chairman Anil Ambani signed a revised gas supply agreement with brother Mukesh’s Reliance Industries.
The counter, which had opened lower, trimmed gains made after the announcement and closed 3.2 percent up at 65.95 rupees. Shares in Reliance Industries closed 1.1 percent higher.
Shares in Kotak Mahindra Bank fell as much as 3.4 percent during trade on Thursday after Dutch financial services group ING sold its 3.1 percent stake in the bank.
The sale of 10.8 million shares in stock market block deals, which helped ING raise $175 million, was done at 750 rupees a share, sources told Reuters. Another source had told Reuters yesterday that it would be in the range of 730-750 rupees each.
Kotak Mahindra, which the market values at roughly $6 billion, ended 2.6 percent lower at 762 rupees with volumes of 0.1 million shares.
The BSE Capital Goods Index ended 1.3 percent lower on Wednesday while most of the other indices ended the day in green.
The big names that led the fall were L&T, which ended 3 percent lower, Havells India, which dropped 1 percent, and Thermax, which slipped 1.8 percent.
The BSE Oil & Gas Index recouped early losses and ended marginally up on Tuesday after the oil minister said a decision on fuel prices would be taken on Friday.
Earlier this month, the government deferred a decision on raising fuel prices, the second time in a year that it has tripped on pushing the politically-sensitive reform measure that could help trim a budget deficit.
The finance ministry on Saturday said life insurers could sell unit-linked insurance plans without seeking a nod from the Securities and Exchange Board of India (SEBI).
This ends a spat between regulators over the much sought after product. Under the law, such orders issued when parliament is not in session must be confirmed by lawmakers in their next sitting.
Metal counters ended the week on a negative note with the sectoral index slipping 1.18 percent, the worst among all sectors.
Sterlite Industries fell 2.3 percent, as Shanghai copper fell more than 1 percent, following a 3.1-percent tumble in London prices.