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Sensex surges 520 points, Nifty back above 5800

The stock index saw its biggest gain in nearly two years after the government approved a hefty increase in the price of natural gas.

BT Online Bureau | June 28, 2013 | Updated 18:55 IST

Fresh reforms announced by the government for the gas and energy sector coupled with firm Asian cues sent the benchmark S&P BSE Sensex spiralling up by a whopping 520 points - biggest gain since last 22 month - to end at 3-week high of 19,395.81, extending gains for the second straight day.

The government on Thursday approved near doubling of natural gas prices from April 1 next year, to spur investments without which domestic production would have declined and imports have risen.

As a result, oil and gas counters like BPCL, IOC, GAIL, Petronet LNG, RIL, HPCL, ONGC and Castrol closed higher between 5.74 pct and 2.23 pct.

Besides refinery, metal, power, capital goods, PSU, banking, auto, realty and pharma stocks too attracted good buying support on the first day of July series.

Buying was so strong that all 13 sectoral indices closed in the green between 4.7 pct and 0.18 pct while 29 out of 30 sensex-based scrips ended with gains and only HUL finished with minor losses.

The Bombay Stock Exchange 30-share barometer resumed up and gradually improved further to settle at 19,395.81, showing a spurt of 519.86 points or 2.75 pct. on Thursday, it had risen by 323.83 points or 1.75 pct. Previously, it had gained by 567.50 points or 3.58 pct on August 29, 2011.

The NSE 50-issue CNX Nifty also flared up by 159.85 points or 2.81 pct to end at two-week high of 5,842.20.

Power stocks too were in keen demand after the Finance Minister P Chidambaram on Friday hinted at moderating the price of fuel to power and fertilizer sectors so as to keep electricity and urea costs down. .

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