BSE Sensex edges higher; Jindal Steel slumps

Mumbai: The BSE Sensex edged up on Monday, rebounding after falling in the previous three sessions to hit a near 1-1/2 month low as Asian markets gained, but Jindal Steel slumped after the government rejected its bids for three coal mines. The coal ministry on Saturday rejected four of 33 bids for coal mines after saying it would examine nine blocks whose low bids had made them "outliers" according to the government. Caution also prevailed ahead of the expiry of monthly derivatives contracts on Thursday.

"There are no immediate trigger points. March-quarter earnings are still sometime away. I think people will wait for the derivatives expiry and year-ending to initiate any fresh positions," said Daljeet S Kohli, head of research at IndiaNivesh. The Sensex was up 0.24 per cent at 28,329.20, after earlier gaining as much as 0.44 per cent. The Nifty edged up 0.15 per cent to 8,584 after advancing as much as 0.4 per cent.

Heavyweights, which had under performed recently, gained. Oil and Natural Gas Corp, which had lost 2.9 per cent so far this month through Friday, rose 1.2 per cent. Hindalco Industries advanced 3.1 per cent, while Usha Martin Ltd surged 13.7 per cent after the government approved bidding of the coal mines by these firms, analysts said.

Among decliners, Jindal Steel and Power Ltd fell as much as 14.9 per cent. A spokesman said the company was "puzzled" with the government's decisions and said it would engage in a dialogue with the coal ministry and the government. Shares in GMR Infrastructure advanced 4 per cent as traders accumulated long positions in April derivative series a day ahead of opening of rights issue.

Coal India Ltd also fell 0.7 per cent after HSBC downgraded the stock to "neutral" from "overweight," citing lower offtake and realisation. Glenmark Pharmaceuticals Ltd fell 2.3 per cent after the division bench of Delhi High Court restricted the company from manufacturing Zita and Zita-Met.