BSE Sensex gains over 300 points; oil, airline stocks up

By Indulal PM

MUMBAI (Reuters) - The BSE Sensex rose over 1 percent on Tuesday, snapping a four-day losing streak as blue-chips such as Reliance Industries gained on continued hopes of reforms while a fall in crude oil prices also helped.

Brent crude slipped below $114 a barrel on Tuesday, as data showing near-record high oil exports from Iraq indicated supplies remained unaffected by the escalating violence at OPEC's No. 2 producer.

India imports a third of its oil needs and there were concerns that rising crude prices may feed domestic inflation.

Firm cues from regional markets also underpinned sentiment as improved manufacturing data from China, Japan and the United States augured well for global growth, despite a disappointing result from the euro zone.

 

The next big local trigger would be the first budget of the new government, due on July 10.

"We are very optimistic the government will create a better policy environment which will boost investor confidence. Market is basically wanting action and are awaiting it. There was selling in the past couple of days, but the undercurrent remains positive," said Deven Choksey, managing director, KR Choksey Securities.

The benchmark BSE Sensex gained 1.35 percent to 25,368.90 points, while the broader Nifty closed 1.16 percent up at 7,580.20 points.

Oil explorers led the gains with Reliance Industries Ltd up 2.11 percent and Oil and Natural Gas Corp. ending 1.2 percent higher on falling crude prices.

Shares in state-run oil marketing companies also gained on hopes that a fall in international crude prices would increase margins for these companies.

Shares in Indian Oil Corp. closed up 4.46 percent, Hindustan Petroleum Corp. Ltd gained 7.22 percent and Bharat Petroleum Corp. Ltd ended up 4.69 percent.

Shares in airline companies also gained with Jet Airways closing 6.55 percent higher while SpiceJet gained 10 percent on lower crude prices.

Some of the recent underperformers such as ITC Ltd , gained 1.8 percent, reversing Monday's 6.2 percent fall.

Among other blue chips, State Bank of India gained 2.4 percent and Gail India Ltd ended 4.63 percent higher.

However, software exporters fell. Infosys Ltd closed down 0.89 percent, while HCL Technologies ended 0.22 percent lower.

(Editing by Sunil Nair)