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Bulls continued their domination on Tuesday as the markets rose for the second consecutive day. The BSE index gained more than 155 points to close the day at 17806.
Good news from the Railway budget on the reduction in transportation charges fueled rally in IOC and Grasim. Freight rates for gasoline and diesel will be cut by 5 percent and for fly ash, a raw material used by cement companies, by 14 percent. We believe this will make a considerable contribution to bottom line of the cement companies and oil refiners this year. Reliance Energy Ltd., India’s second-biggest utility company rose after saying it may buy back shares. Reliance Energy stock rose 74.55 rupees, or 4.6 percent, to 1,697.25. The board will meet on March 5 to consider the share buyback plan.
Indian Oil rose 22.05 rupees, or 4.2 percent, to 550.90. Hindustan Petroleum Corp, added 13.95 rupees, or 4.8 percent, to 307.70. BPCL climbed 23.3 rupees, or 5.4 percent, to 456.45. Oil & Natural Gas Corp advanced 14.3 rupees, or 1.4 percent, to 1,027.75 after announcing that it had made four oil and gas discoveries in the past month that may help boost output to meet the nation’s growing fuel demand. Tea stocks were in the lime light with McLeod Russel (up 20% at Rs 77.85, IndiaBears.com Momentum Call at Rs 68.50), Harrison Malayalam and Jayshree Tea gaining more than 15% each. Our favorite and recommendation OnMobile Global gained more than 11 percent to close the day at Rs 593,
— Review written by Research Team @ www.indiabears.com
