BSE Sensex,NSE Nifty gain despite Cobrapost sting on ICICI Bank,Axis,HDFC Bank

The 30-share index,rose further by 98.95 points,or 0.51 per cent,to 19,669.69 points.

Written by PTI | Published:March 15, 2013 9:06 am

The BSE Sensex today rose by nearly 99 points in early trade,extending gains for the second straight session,on sustained buying by funds amid a firm trend on other Asian bourses – this is despite Cobrapost sting on ICICI Bank,Axis bank,HDFC Bank over money-laundering.

The 30-share index,which had gained 207.89 points yesterday,rose further by 98.95 points,or 0.51 per cent,to 19,669.69 points with all the sectoral indices,led by consumer durables and metals,trading in the positive zone with gains of up to 1.42 per cent.

The wide-based NSE Nifty moved up by 19.30 points,or 0.33 per cent,to 5,928.25.

Brokers said besides hopes of a rate cut by RBI in its policy review next week,a firming trend on other Asian bourses,following overnight gains at the US markets,mainly buoyed the trading sentiment here.

However,shares of country’s largest private sector banks – ICICI Bank,HDFC Bank and Axis Bank were under pressure and fell up to 1.22 per cent,after reports of alleged acts of money laundering.

In other Asian markets,Hong Kong’s Hang Seng rose by 0.38 per cent,while Japan’s Nikkei by 0.84 per cent in early trade today.

The US Dow Jones Industrial Average gained 0.58 per cent in yesterday’s trade.

Stocks to watch-March 15

(Reuter): Global Markets: Nifty futures on the Singapore Exchange is flat,while the MSCI-Asia Pacific index,excluding Japan,rose 0.24 percent.

Asian shares shrugged off three days of losses on Friday as global risk sentiment was buoyed by new U.S. data overnight suggesting a steady recovery in the world’s largest economy.

The Dow Jones industrial average extended its winning streak to 10 days on Thursday,a string of gains last seen in late 1996,and ended at another record high as investors were encouraged by data showing the labor market’s recovery was improving.

FACTORS TO WATCH

India will launch a single-day share auction to sell up to 10 percent shares in state-owned National Aluminium Co ,floor price for which has been set at 40 rupees a share, as part of the government’s divestment programme to cut fiscal deficit.

* India’s foreign exchange reserves data. (1130 GMT)

The Reserve Bank of India has begun a probe into allegations that staff at Axis Bank Ltd,HDFC Bank Ltd and ICICI Bank Ltd adviced customers on money laundering practices.

India’s central bank opened the door on Thursday to foreign institutional investors using investments in corporate and government bonds as collateral in the futures and options segment of stock exchanges.

The Indian government stated that companies will be allowed to invest in domestic tax free bonds where the effective rate of returns is greater than the prevailing bank rate,according to a circular from the Ministry of Corporate Affairs.

ENERGY/COMMODITIES

The government set the floor price for its planned share sale in National Aluminium Co Ltd on Friday at 40 rupees per share.

Oil and Natural Gas Corp Ltd and Oil India Ltd have bid for a 20 percent stake in a Mozambique oil and gas field being offered by U.S. explorer Anadarko Petroleum Corp and India’s Videocon Group,a source directly involved in the matter said.

Petrol is expected to become cheaper by about 1 rupee a litre from midnight Friday India time as state-run fuel retailers take into account lower global crude prices during the last two weeks,while raising diesel price by 0.50-0.60 rupees a litre.

Jindal Steel and Power Ltd is setting up India’s first coal-to-gas plant and world’s largest coal-to-liquid plant for 600 billion rupees and plans to have the plant ready by 2019,said Ravi Uppal,managing director of JSPL.

Separately,Jindal Steel and Power will set up 1,500 MW of greenfield power plants across five African nations.

RETAIL

The government is evaluating a proposal to allow up to 49 percent foreign direct investment in the business-to-consumer e-commerce space.

AUTOS

A U.S. district court has upheld a lawsuit filed by the Mahindra & Mahindra Ltd’s U.S. dealers against the Indian auto maker over its plans to sell a passenger vehicle in the U.S. market.

Volvo AB is planning to focus on the luxury car market in India,and may consider setting up local assembly operations,although no plans has been finalised.

AVIATION

In a damage-control exercise to prevent India’s image from being dented in the global market,the civil aviation ministry may issue a guidance to release all Kingfisher Airlines aircraft parked at Indian airports to international leasing companies.

A day after Air India announced discounted advance purchase fares for 60 days before the travel date,country’s second largest airline Jet Airways too jumped the discount bandwagon by announcing a special 60 days purchase for travel across its domestic network.

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