The BSE Sensex rallied more than 1 percent on Monday, with companies controlled by the billionaire Ambani brothers among the big gainers after they moved towards resolving a long-running strife.
Both the groups said they aim to reach a conclusion soon for a gas supply agreement between Reliance Industries and Reliance Natural Resources that had been at the heart of their dispute.
Mukesh Ambani-led Reliance Industries, which has the highest weight on the BSE Sensex climbed 3.6 percent.
Reliance Natural Resources, controlled by Anil Ambani, jumped 21 percent while other group companies Reliance Infrastructure, Reliance Communications rose 7 percent and 5.8 percent respectively.
The benchmark, which fell 3.2 percent last week, is down 4.6 percent so far this year and traders were uncertain about the outlook.
“In the near term, the outlook for Indian market remains uncertain,” said Anish Marfatia, head of sales trading at Avendus Securities. “We are still not out of the woods. The Europe and China overhang remains.”
Foreign funds have pulled out around $1.5 billion from Indian equities so far this month, which has been a drag for the market.
In the broader market, gainers were four times the number of losers on volume of 101 million shares.
The 50-share NSE index was up 1.3 percent at 4,995.75.
STOCKS ON THE MOVE
* Metal makers Sterlite Industries, Hindalco and Tata Steel rose between 1.7-2.3 percent, as Shanghai copper and aluminium prices rallied.
* Godrej Consumer Products was up 3.2 percent at 331 rupees after the personal care products maker said on Sunday it would buy South America-based unlisted hair care products maker Issue Group.
MAIN TOP 3 BY VOLUME
* Reliance Natural Resources on 8.9 million shares
* Adani Enterprises on 5.3 million shares
* Bank of Rajasthan on 2.5 million shares
(Reporting by Ami Shah; Editing by Ranjit Gangadharan)
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