By Nick Godt, MarketWatch
MUMBAI (MarketWatch) -- Indian stocks rose as crude-oil futures continued to fall Tuesday, easing concerns about inflation even as Delhi is expected to allow fuel retail prices to rise.
The Sensex IN:1 +0.45% rose 82.80 points, or nearly 0.5%, to end at 18,502.91. The S&P/CNX Nifty index IN:IXNIFTY +0.44% gained 0.4% to 5,556.15.
Heavyweights Reliance Industries Ltd. IN:500325 +1.96% and Infosys Technologies Ltd. IN:500209 +1.81% , both chalked up gains of about 2%.
Jaiprakash Associates Ltd. IN:532532 +2.24% and Reliance Infrastructure Ltd. IN:500390 +1.53% were among the top gainers, while consumer-goods firm Hindustan Unilever Ltd. IN:500696 -2.52% fell the most, off 2%.
Maruti Suzuki India Ltd. IN:532500 +0.40% gained back some ground, rising 0.7%, after a spokesman for India’s largest auto maker by market share said the firm has lost about INR900 million in production due to a strike at its Manesar plant near Delhi.
The company’s spokesman told Dow Jones Newswires that talks were ongoing with the plant’s workers, who are demanding recognition of a new union, even after the firm said the strike was illegal and suspended 11 workers.
“We believe the strike will not have much of an impact on the company’s sales volume if the settlement is reached soon, as Maruti will make good the lost production once the plant is operational again,” Mumbai-based Angel Broking said in a note.
On the Bombay Stock Exchange, the oil and gas sector led the advance. Shares of Oil & Natural Gas Corp. IN:500312 +0.43% gained ground on expectations the government would proceed to allow state-run energy firms bring retail prices in line with market prices.
Such expectations have also fueled concerns about inflation in India’s economy recently.
Helping mitigate this risk, crude futures have recently slumped below the $100-a-barrel mark on concerns about U.S. economic growth and petroleum demand. Crude fell further ahead of an Organization of Petroleum Exporting Countries meeting, which begins Wednesday in Vienna. Read more about crude oil.
