Sensex up 172 pts, oil stocks surge

The BSE benchmark Sensex on Monday surged 172 points on sustained buying of energy sector stocks on prospects of a boost in their earnings after the government raised prices of petroleum products on Friday.

Read: Experts see 'active' week on bourses

A firm beginning in European region also supported the market. The Bombay Stock Exchange's key index, Sensex, which had shot up by 513 points in the previous session , rose by another 171.73 points to 18,412.41, with most of the state-run energy stocks recording handsome gains.

Broad-based National Stock Exchange index Nifty rose by 55.35 points to 5,526.60 after touching the day's high 5,552.65.

Trading sentiment was upbeat after the government on Friday increased diesel price by Rs 3 per litre, domestic LPG by Rs 50 per cylinder and kerosene by Rs 2 per litre, which would help the oil companies in reducing their revenue loss.

ONGC, which contributed the most to the rise of the BSE's 30-share gauge, gained Rs 11.35 to Rs 284.15. BHPCL rose by Rs 29.30 to Rs 663.70 and Indian Oil by Rs 10.45 to Rs 347.55.

Sensex leader and oil refiner Reliance Industries also edged up by Rs 1.10 to Rs 871.50.

Across the sectors, the Public Sector Undertaking index that has some state-run oil company stocks in its kitty gained the most by 1.92 per cent to 8,558.87, while Oil and Gas sector index jumped 1.40 per cent to 9,170.38.

Buying activity also spilled into capital goods, banking, auto, teck, it, power and healthcare sector. However, decline in realty, FMCG and consumer durables stocks restricted the gains.