RIL helps Sensex regain 20,000 level

Reliance Industries surged 5.12% after announcing huge natural gas discovery in KG-D6 block on Friday

Written by ENS Economic Bureau | Mumbai | Published:May 28, 2013 3:54 am

Led by Reliance Industries (RIL),the benchmark Sensex on Monday surged the most in two weeks by jumping 326 points to close at 20,030.77 points on all-round buying support.

RIL jumped the most — 5.12 per cent to Rs 828.25 on the BSE — in eight months after discovering a new natural gas field in KG-D6 block. The company alone contributed 84.20 points to the overall Sensex gain. Bharti Airtel soared 3.6 per cent and Sun Pharma by 8.12 per cent.

The Sensex had dropped 2.9 per cent last week.

The index rallied to more than a two-year high on May 17 following monetary easing by policy makers from India to Europe,and a slide in oil and gold costs that lowered concern on India’s record current-account deficit.

“The equity market extended gains for the second consecutive trading session on reports that the monsoon is likely to touch the Arabian coast in the next three days. The technical pullback resulted in the Nifty almost touching the 6,100 mark. The Sensex too managed to close above the 20,000 mark. The rally was fuelled by oil and gas,metals,telecom and power stocks,” said Amar Ambani,Head of Research,IIFL.

So broad-based was Monday’s rally that there was not a single BSE sectoral index which ended in the red. Even mid- and small-cap stocks participated in the rally with both indices adding 1.1 per cent and 0.9 per cent respectively.

Alex Mathews,head research,Geojit BNP Paribas Financial Services,said,“The markets opened with a positive note and was seen trading higher supported by the heavyweight stock Reliance Industries which posted its biggest gain since September 2012 after discovering a new gas field in KG-D6 basin.” Vijay Kedia,director,Kedia Securities,said,“Everybody is fearful but market is not falling from near all-time high. It must be telling a different story,new high must be round the corner.”

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