Sensex moves 1 percent higher backed by RCom gains (Roundup)

MUMBAI - A benchmark index for Indian equities Wednesday closed a percent higher in a late surge, led by Reliance Communications (RCom) which gained 11 percent.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,574.79 points, shut shop at 16,741.84 points, 169.81 points or 1.02 percent up from its previous close at 16,572.03 points.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty ended at 5,019.85 points, up 1 percent from its previous close at 4,970.2 points.

Broader markets indices also closed in the green, with the BSE midcap index ending 0.85 percent up and the BSE smallcap index 0.79 percent higher.

The RCom scrip soared 11.02 percent at Rs.154.60 after news broke out that UAE-based Etisalat telecom firm is in talks to buy a 25 percent stake in the company.

In a regulatory filing, RCom said it evaluates proposals by global firms interested in acquiring a strategic stake from time to time in line with the company policy to “enhance overall shareholder value”.

Among other major gainers on the Sensex were — Bharti Airtel, up 5.16 percent at Rs.270.20; Reliance Infra, up 4.03 percent at Rs.1,084.90 and ONGC, up 3.32 percent at Rs.1,182.35.

Prominent losers included Tata Power, down 1.36 percent at Rs.1,242.65; Wipro, down 1.22 percent at Rs.650.05; Jindal Steel, down 0.85 percent at Rs.626.80; and Hindalco, down 0.49 percent at Rs.142.75.

Among other Asian markets, the Japanese Nikkei ended 1.12 percent lower at 9,603.24 points giving up intra-day gains garnered after Prime Minister Yukio Hatoyama said he would resign, two months before elections.

Hatoyama’s announcement raised concerns that the world’s second-largest economy will continue to sputter at a time when factory output in China is falling and European governments are struggling amid record deficits.

Hong Kong’s Hang Seng closed at 19,471.8, down 0.13 percent, while the Shanghai composite index ended 0.12 percent up at 2,571.42 points.

The South Korean markets were closed Wednesday.

In Europe, oil stocks dragged the markets after US initiated civil and criminal investigations into Oil major BP’s oil spill off the Gulf of Mexico.

The FTSE 100, UK’s key index recovered a bit at the time of closing bell here and was ruling 1.03 percent lower at 5,110.31 points.

Its French peer, the CAC 40 was also in the negative at 3,463.52 points, down 1.13 percent, while the German DAX was trading with a 0.75 percent loss at 5,936.14 points.