Sensex recovers after court verdict, falls again

Posted by on May 7th, 2010 and filed under Business/Economy. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Mumbai, May 7 (IANS) A benchmark index for Indian equities, which recovered after the Supreme Court ruled that the government had sole rights on pricing and utilisation of national resources, slipped back into the red and was ruling 229 points lower during noon trade Friday.

The apex court in its verdict said the memorandum of understanding between brothers Mukesh and Anil Ambani was not binding in pricing and supply of gas from the Krishna Godavari basin and asked both to re-negotiate the terms of the agreement within six weeks.

Following the decision, at the Bombay Stock Exchange, Reliance Industries Ltd (RIL) rose 4.8 percent to Rs.1,060 before settling at Rs.1,042.60. RIL has the highest weight on the sensex, which rose to 16,939.58 points around 11 a.m.

The scrip of Reliance Natural Resources fell to Rs.50, down 26.8 percent.

An hour later, the 30-scrip sensitive index (Sensex) of the BSE, which opened at 16,939.58 points, was ruling at 16,732.07 points, 255.46 points or 1.5 percent lower than its previous close at 16,987.53 points.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty was ruling at 5,033.25 points, a loss of 1.13 percent or 54.5 points from its previous close at 5,090.85 points.

Broader market indices were also in the negative with the BSE midcap index ruling 2.63 percent down and the BSE smallcap index trading 2.86 percent lower.

Global bourses have been in a tizzy with signs emerging that the Greek debt crisis could spread to more European economies, endangering economic recovery across the globe.

Categories: Business/Economy

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