Market rings in New Year with style, Sensex soars 339 pts
State-run oil companies gained on hopes that a proposed revision in the Government's pricing formula would boost gas prices. Additionally, Oil Minister M Veerappa Moily has allowed RIL and Cairn India to explore for oil and gas within the producing fields subject to certain conditions.
Besides, India's manufacturing sector growth improved further in December, registering the fastest pace in 6 months, driven by a strong pick up in new orders, an HSBC survey said.
With manufacturing PMI (Purchasing Managers Index) up and prices trending down, experts said data augurs well for the economy.
"PMI data suggest that the manufacturing sector, after stabilising between July and October, began to improve from November, and inflation pressures remain under check," said Sonal Varma, India economist, Nomura.
Finance Minister P Chidambaram on Wednesday said that the Government is considering steps to reduce gold import by making it more expensive. The yellow metal is a major constituent of India's rising current account deficit (CAD).
Traders said moves to stem gold demand are structurally positive for the economy's fiscal health.
The global markets began 2013 with gains as all major bourses in the world ended the week on a positive note. The positive sentiment was generated by the agreement reached by the US lawmakers to avert a financial crisis.
Second-line stocks outperformed the Sensex (which gained 1.74%). The BSE Small cap and Mid cap indices ended with weekly gains of 3.72 per cent and 3.12 per cent