Diesel reforms fuel market rally; NSE Nifty up 37 points
Continuing with its series of policy reforms, the Centre, in a bold decision, further de-controlled oil sector and allowed oil marketing companies to "make small correction (in diesel prices) from time to time" to cut losses. Also, in a relief to the common man, it raised the cap on subsidised LPG cylinders to nine from six earlier.
The government is making all efforts to restrict fiscal deficit to 5.3 per cent of GDP in the current fiscal to avoid downgrading by international rating agencies.
Overcoming the initial sluggishness and volatility due to overnight sharp sell-off, the market gained momentum in afternoon amid caution ahead of the Cabinet meet.
The market turned bullish following the Cabinet decision to allow oil firm to hike diesel prices. The rally was spearheaded by frontline heavy-weights and OMCs which zoomed to multi-month highs amid huge volumes.
The oil sector index galloped by 214 points to end at 8,458.05. Firm buying was also seen in technology counters.
Telecom stocks, too, attracted buying interest after the government approved 50 per cent reduction in reserve price of spectrum used by CDMA operators. However, profit-taking in pharma, FMCG and select bluechip counters capped gains.
The 50-share Nifty fluctuated between a high of 6,053.20 and a low of 5,988.10 before ending at 6,039.20, a gain of 37.35 points, or 0.62 per cent,
Be the first to comment.