Sensex rallies over 283 pts

The 30-share barometer resumed higher by 169.46 points at 16,100.36. It further shot up to 16,315.44 before quoting at 16,304.15 at 1145 hours,showing a significant rise of 263.05,or 1.77 per cent,from its last close.

All the sectoral indices led by auto,banking and metal,were trading in positive with gains of up to 2.65 per cent.

The NSE 50-share NIfty also firmed up by 86.00 points,or 1.77 per cent,to 4,949.30,after rising to 4,953.70 points.

Major gainers were Reliance Industries (1.02 per cent),Sterlite Ind (2.83 per cent),Hero MotoCorp (4.11 per cent),DLF (1.80 per cent),Hindustan Unilver (2.05 per cent),NTPC (1.77 per cent),Jindal Steel (3.81 per cent) and ITC (3.06 per cent).

Brokers said besides recovery in the rupee,a firming trend on the Asian boures after finance ministers and central bank governors from the world’s leading economies pledged to give support to Europe’s financial crisis,buoyed the trading sentiments.

Meanwhile,the rupee recovered by 16 paise to 55.48 against the dollar at Forex market at 1130 hours.

In the Asian region,key benchmark indices in China,Hong Kong,Japan,Taiwan and Singapore rose between 0.27 per cent and 1.81 per cent.

STOCKS TO WATCH

FINANCIAL/REGULATORY

* India has prepared a contingency plan for Greece exiting the euro zone and even a collapse of the monetary union,Indian officials said.

* The Supreme Court on Tuesday asked market regulator Securities and Exchange Board of India to furnish details of unlisted firms which have raised capital from 50 or more people.

The court asked for the data while hearing an appeal by the Sahara group against an order by Sebi over the issue of optionally fully-convertible debentures (OFCD) it issued to over 22 million investors.

* The government on Tuesday unveiled a seven-pronged strategy,including subsidized loans,to boost exports,with the aim to boost exports by at least 20 percent during the current financial year.

* The average cost per employee for public sector banks has overtaken that of their private sector peers,a development that has emerged from data released by RBI on Tuesday. This has prompted RBI to raise issues of productivity.

* Many Indian companies have skipped paying dividend for the 2011-12 financial year,with the slowing economy causing a strain on earnings and cash flows,prompting them to conserve resources.

* The government coalition on Tuesday appealed to both allies and the opposition to support it in opening the multi-brand retail sector to foreign direct investment (FDI) and for other reforms to help boost the economy.

TELECOMS

* An Indian ministerial panel decided to auction a higher number of slots in an upcoming sale of second generation (2G) radio airwaves than that proposed by the sector regulator,a government official said,although no decision was made on the base price for the auction.

* The heads of the top three telecom operators – Bharti Airtel,Vodafone India and Idea Cellular – today sought Finance Minister Pranab Mukherjee’s urgent and personal intervention to stop the re-farming of spectrum proposed by the telecom regulator.

ENERGY/COMMODITIES

* Billionaire Mukesh Ambani’s Reliance Industries is piling up cash even as its profits shrink,fuelling investor disquiet over a tumbling share price and lack of clear vision at a company that was once India’s most valuable.

* Oil and Natural Gas Corp,India’s biggest state-owned energy explorer,is considering bidding for part of ConocoPhillips’ Canadian oil sands holdings worth around $5 billion,a source with direct knowledge of the situation said.

* The petroleum regulator has recommended cancellation of licenses for five pipelines that state-run GAIL India and a Mukesh Ambani-controlled company were planning to build to transport natural gas from Reliance Industries’ D6 block,where output has fallen sharply,official sources said.

* Australia said on Tuesday it would delay environmental approval for a A$10 billion ($9.72 billion) coal project proposed by India’s GVK Power & Infrastructure,a potential setback in the company’s bid to tap voracious appetite for coal in its home market.

* Power companies that use imported coal have got a respite from skyrocketing fuel costs as international coal prices have softened considerably,but the depreciation of the rupee has limited their gains.

* Institutional Investor Advisory Services India (IIAS) and InGovern,the two leading proxy institutional advisory firms are divided over their recommendations on Vedanta Resources’ plan to merge Sesa Goa and Sterlite Industries .

INFRASTRUCTURE

* Gujarat Pipavav Port ‘s board okayed a 10.97 billion rupees ($197.55 million) project expansion plan,which the company said it will finance through a mix of debt,equity and internal accruals

* Private equity players are showing interest in less risky road projects. Morgan Stanley Infrastructure Partners,a $4-billion global infrastructure fund,is in early discussions with infrastructure company Lanco Infratech to buy its 401 km of highway projects,in various stages of construction.

* Earnings from container freight stations and higher volumes in rail freight business have helped Gateway Distriparks post a 36 percent rise in net profit for the financial year ended March 2012.

AIRLINES

* Air India,the national carrier will on Thursday announce its new business plans,including plans for operating the new Boeing 787 Dreamliners that are due to be introduced in a few weeks.

AUTOS

* India’s third-largest commercial vehicle player VE Commercial Vehicles,an equal joint venture between the Volvo Group and Eicher Motors,has restructured the organisation by merging three different units.

MEDIA

* TV18 and Viacom18 on Tuesday announced a 50:50 joint venture,IndiaCast,to create a platform to distribute nearly 57 channels.

RETAIL

* Swedish multinational home appliances maker Electrolux Group has entered into a licensing agreement with Chennai-based Morf India Limited to offer its range of water and air purifiers under the Kelvinator brand in India and Sri Lanka.

* Britannia Industries is embarking on a global expansion to shore up its growth story. The company derives around 2.5 billion rupees from global operations.

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