Sensex jumps 400 points; RIL, ONGC rally on gas price hike

A benchmark index of Indian equities markets surged more than two percent Friday, led by strong rally in energy stocks after the government approved a sharp increase in gas prices.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened in the positive at 19,093.18 points, was ruling at 19,284.34 points in the afternoon session, up 2.16 percent or 408.39 points from its previous day's close at 18,875.95 points.

The Sensex touched a high of 19,290.02 points and low of 19,093.18 points in the intra-day.

The wider 50-scrip S&P CNX Nifty of the National Stock Exchange (NSE) was ruling 2.10 percent or 119.15 points higher at 5,801.50 points.

There was a strong buying support in oil and gas stocks after the government approved a proposal to almost double gas prices. The move is likely to help the companies like Reliance Industries and ONGC involved in gas production.

Oil and gas index of the BSE jumped 2.35 percent. Metal index jumped 3.63 percent. Capital goods index rallied 3.46 percent higher and power index was trading 3 percent higher.

Reliance Industries (RIL) jumped 2.70 percent at Rs.852.90; ONGC was up 1.86 percent at Rs.326.50.

Jindal Steel, up 6.50 percent at Rs.214.50; BHEL, up 5.80 percent at Rs.172.50; Coal India, up 4.55 percent at Rs.300; Tata Motors, up 4.25 percent at Rs.280.95; Sun Pharma, up 3.73 percent at Rs.1009.90 were among the major Sensex gainers.

Only five of the 30 Sensex scrips were trading in the red.

Infosys was down 0.87 percent at Rs.2,455.30; Hindustan Unilever, down 0.47 percent at Rs.586.25; Wipro, down 0.40 percent at Rs.346; and Maruti Suzuki was down 0.20 percent at Rs.1,518.50.