Selloff Sanguinity Fuels Refinery Sector Shares

Equities finished with modest gains on Friday, reversing a two-day slide, as state-run oil stocks rallied on privatisation hopes, while select technology stocks piggybacked the overnight rise on the Nasdaq exchange in the US.

On the National Stock Exchange, the S&P CNX Nifty settled up 1.65 points up at 1,058.25. Meanwhile, the Bombay Stock Exchange sensex settled with a modest gain of 15.27 points at 3,305.83, off from an intra-day high of 3,318.33 points. Volumes dropped significantly and losers pipped gainers.

State-run oil firms witnessed good buying interest on media reports that disinvestment minister Arun Shourie was pressing for an early privatisation of refiners Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL).

HPCL settled four cent higher at Rs 296.05, while BPCL advanced 2.87 per cent to Rs 288.75. Other key stocks such as ONGC (up 4.12 per cent to Rs 347.75) and Gas Authority of India (up 1.61 per cent to Rs 78.70) also advanced on renewed buying interest.

Meanwhile, the US' Nasdaq Composite gained 28.42 points at 1,374.43. Responding to this, local technology bellwether Infosys Technologies advanced 0.58 per cent to Rs 3,320.80.

HCL Technologies (up 6.46 per cent to Rs 239) too recovered on renewed buying, after a recent fall from the higher levels. However, Satyam Computer slipped from a high of Rs 245.80 to Rs 239.45 before settling at Rs 241.75, down 0.29 per cent from its Thursday close.

Pharma and fast moving consumer goods (FMCG) stocks also gained ground on defensive buying.

Ranbaxy (up 1.38 per cent to Rs 920.90) advanced after the company announced that it has received non-exclusive licence from Synaptic Pharmaceutical for use of its methods for selectively antagonising alpha-A1 receptors to treat BPH and urinary incontinence.

Other pharma stocks such as Cipla (up 1.25 per cent to Rs 947.50), Dr Reddy's Laboratories (up 0.81 per cent to Rs 984.40) and GlaxoSmithKline (up 0.47 per cent to Rs 367) also attracted selective buying support.

Key FMCG stocks such as Colgate Palmolive (up 1.48 per cent to Rs 140.85), Nestle India (up 1.21 per cent to Rs 514.95) and Hindustan Lever (up 0.36 per cent to Rs 194.70) also attracted defensive buying.

Other blue chip stocks such as Tata Steel (up 1.45 per cent to Rs 143.55) and Hero Honda Motor (up 1.28 per cent to Rs 327.90) rose on renewed buying.