Mumbai, Sept 8: After volatile movements, the BSE Sensex gained for the third day in a row—up over 100 points at 17,165.54 -- as investors bought blue chips such as RIL and Infosys amid strong global stock markets and a slight fall in food inflation.
The Bombay Stock Exchange 30-share benchmark index opened higher on firm Asian cues but fell to a low of 16,987.37 after the government auditor CAG submitted a report on RIL and late profit booking in the Asian markets.
The Comptroller and Auditor General (CAG) sharply criticised Reliance Industries Ltd and the oil ministry for violation of contract over KG-D6 gas block and called for revamping the current profit-sharing arrangement, which reduced government revenues.
However, firm openings in European markets, easing of food inflation and a smart rebound in RIL helped Sensex to turn positive and close at 17,165.54 -- a net gain of 100.54 points or 0.59 per cent.
“RIL dipped heavily in the early session after the final CAG report was tabled in Parliament on Hydrocarbon Production Sharing Contracts (PSC),” said Kishor P Ostwal, CMD of CNI Research.
“However, operators took this opportunity to cover their short positions and play safe ahead of the US president Barack Obama's speech on jobs creation proposals as well as European Central Bank (ECB) and Bank of England's monetary policy meeting today,” he added.
RIL rallied and closed 2.62 per cent up and was the second top gainer from the Sensex pack, contributing over 45 points to the rise.
Besides, other heavyweights like ICICI Bank, Infosys,L&T, Tata Motors and HUL closed with smart gains and aided the rally. PTI
