Sensex posts triple-ton on firm global equities

A combination of falling oil prices, firm global markets, and a report that Indian corporates remain bullish regarding the growth prospects boosted the domestic bourses today. Steel, FMCG, IT, cement, banking, telecom and auto pivotals edged higher.

The 30-share BSE Sensex jumped 321.66 points (2.5%), to settle at 13,177.74. The benchmark index hit a high of 13,194, its highest since 26 March 2007.

The BSE Sensex also recorded its biggest rise in a single trading session since 22 March 2007, when the barometer index had risen as many as 380.36 points, in intra-day trade. Incidentally, firm global markets were behind the surge on domestic bourses that day (22 March 2007) as well.

With today’s gains, the Sensex more-than-recouped the steep 617 point fall of last Monday (2 April), when a surprise hike in interest rate by RBI had spooked investors.

The S&P CNX Nifty advanced 91.50 points (2.44%), to 3843.50. Nifty April 2007 were futures were at 3830, a discount of 13.50 points over spot Nifty closing of 3843.50.

As per provisional data, FIIs were net buyers to the tune of Rs 493 crore today.

A poll carried by a newspaper showed that corporate chieftains are bullish on business prospects for the current financial year (FY 2008), rising interest rates notwithstanding.

Asian stocks rose on Monday, with key indices in South Korea and Singapore hitting record highs, as a positive US jobs data buoyed exporters such as Sony, sparking hopes of increased sales to their biggest overseas market. Key benchmark indices in China, Japan, South Korea, Singapore and Taiwan were up between 0.65 – 2.2%. The Nikkei stock average ended 1.48% higher, also its highest closing in nearly six weeks.

US stocks ended higher on Thursday, lifted by a proposed $4.5 billion offer for DaimlerChrysler's Chrysler Group by billionaire Kirk Kerkorian. The Dow Jones industrial average and the Nasdaq Composite Index rose 0.2% and 0.5%, respectively. Friday's employment report showed US employers added a stronger-than-expected 180,000 new jobs in March, while the US unemployment rate fell to a five-month low.

Oil prices extended losses to trade under $64 a barrel after 15 British military personnel freed by Iran arrived home, resolving a standoff and easing immediate fears of supply disruptions from the Middle East.

All sectoral indices on BSE ended in the green today. The BSE’s banking sector index, the Bankex, was the top-gainer. It jumped 209.30 points (3.28%), to settle at 6,580.99. The BSE Metal Index was runners up. It jumped 281.36 points (3.26%), at 8,905.01. The BSE FMCG Index was the next major gainer, with a gain of 53.58 points (3.11%), to 1,774.04.

The BSE Capital Goods Index advanced 258.50 points (2.89%), to settle at 9,213.99 and the BSE Consumer Durables Index gained 99.03 points (2.75%), at 3,703.24. The BSE Tech Index, which is a free float index constituting IT, telecom and media shares rose 83.07 points (2.4%), to settle at 3,546.46.

Small-cap and mid-cap shares, too, extended their recovery. The BSE Small-Cap Index advanced 129 points (2%), to settle at 6,585.37, while the BSE Mid-Cap Index gained 99.70 points (1.87%), to end at 5,419.65.

The market-breadth was strong. Against 1,915 shares that rose on BSE, 613 fell. As many as 71 stocks were unchanged. Gainers outpaced losers by a ratio of 3.12:1.

The BSE clocked a turnover of Rs 3075 crore compared to Thursday (5 April)’s Rs 3178 crore.

Banking shares edged higher under the reckoning that an increase in lending rates will protect their margins. State Bank of India (SBI) gained 4.4% to Rs 989.85, on raising the benchmark prime lending rate by 50 basis points to 12.75% per annum with effect from Monday (9 April). The hike is in response to the Reserve Bank of India (RBI) raising the repo rate and cash reserve ratio (CRR) on 30 March 2007.

UTI Bank jumped 10.7% to Rs 500, and HDFC Bank rose 3.2% to Rs 974. Both of them are private banks.

Steel scrips rose on reports that cold rolled steel makers are set to raise prices by Rs 4200 - Rs 6500 a tonne, next week, over the ruling price of Rs 32000 - Rs 33000 a tonne. Tata Steel gained nearly 7% to Rs 496.85 and Steel Authority of India (Sail) advanced 3.5% to Rs 118.75.

Maruti Udyog (MUL) jumped 5% to Rs 794. Last week, MUL reported record monthly sales in March 2007.

Cigarette major ITC gained 5% to Rs 155.55, and FMCG giant Hindustan Lever gained 2% to Rs 204.

Reliance Communications advanced 4.6% to Rs 415.75, after adding 1.2 million new wireless subscribers in March 2007. The company said its ARPU (average revenue per user) was expected to increase by 12%, as a result of the re-verification exercise, making it one of the top-three players in India in terms of ARPU.

Cement shares edged up for the second day in a row today, as cement makers refused to cut cement prices despite the government last week abolishing import duties on the product. Grasim gained 3.7% to Rs 2191.90, ACC rose 2.4% to Rs 739.90 and Gujarat Ambuja Cements gained 2.4% to Rs 108.50.

IT shares edged higher following strong US jobs data. IT bellwether Infosys gained 2.6% to Rs 2044, TCS rose 2% to Rs 1219, Wipro gained 2.2% to Rs 564 and Satyam Computer advanced 1.4% to Rs 462.

The rupee’s sharp surge in late-March 2007 - early April 2007, and mixed reports from the US economy, have raised concerns that the FY 2008 guidance by Infosys Technologies may turn out conservative. Infosys unveils full year guidance at the beginning of the financial year along with Q4 March results, due on 13 April 2007.

Oil exploration major ONGC rose 2.6% to Rs 867. ONGC Videsh, the overseas investment arm of Oil and Natural Gas Corporation (ONGC), and its partner IPR Red Sea Inc., have made a significant new oil find in the Gulf of Suez, ONGC said on Thursday.

Engineering & construction major L&T gained 3.3% to Rs 1600. It is seen as one of the major beneficiaries of government’s thrust on infrastructure in Union Budget 2007-08.

Index heavyweight Reliance Industries rose 2% to Rs 1385.10. a huge 3.4 lakh shares changed hands in the counter on BSE.

SRF jumped nearly 18.8% to Rs 141.70, on reports that it had raised around Rs 500 crore from the sale of carbon credits in FY 2007.

Rane Madras gained 18% to Rs 109.50, after the company said Monday it plans to sell 63,162 square feet of land in Chennai city.

Gujarat NRE Coke advanced nearly 7% to Rs 49.90, on strong Q4 March 2007 results. For Q4 March 2007, Gujarat NRE Coke reported a net profit of Rs 50.93 crore compared to a net loss of Rs 42.27 crore in Q4 March 2006. Net sales vaulted 113.20% to Rs 179.01 crore (Rs 83.95 crore).

Praj Industries gained 7.7% to Rs 425.15, after the company said its board will consider a bonus issue of shares at the meeting to take on record the March quarter results.

Some of the offshore oil services firms extended recent gains. Dolphin Offshore surged 10% to Rs 218.75, after its consortium won an order worth more than $24 million from Oil & Natural Gas Corporation (ONGC).

Aban Offshore gained 4.5% to Rs 2250, after its unit won a rig hire contract worth $141 million from state-run Gujarat State Corp.

Mahindra Gesco Developers ended 0.5% higher, at Rs 596.50, but had pared gains from an intra-day high of Rs 616, attained after the company informed that FII holding in its equity capital had reached 27%.

Dhanalakshmi Bank jumped 10% to Rs 65.70, after announcing that its board will meet on 16 April 2006, to consider a rights issue of equity shares.

Oriental Bank of Commerce (OBC) gained 2.6% to Rs 189.40, after the state-run bank said on Monday it would raise up to Rs 500 crore in Tier II capital.

Adhunik Metaliks gained nearly 5% to Rs 38, after the alloy steel maker said it had acquired 100% stake in ore-mining firm, Orissa Manganese & Minerals Pvt. Ltd, for an undisclosed sum.

Gujarat Ambuja Exports (GACL) surged for the second day in a row after the company on Thursday (5 April) issued a public announcement regarding its proposed buy-back programme. The scrip was up 5% to Rs 31.70.

Pump maker Kirloskar Brothers gained 2.6% to Rs 370.10, after it secured a water project in Andhra Pradesh worth Rs 255 crore.

Raymond dropped nearly 1% to Rs 334. The company plans to nearly triple the number of retail stores in the country by 2010.

Sun Pharmaceuticals Industries rose 1.5% to Rs 1053.55, as shareholders will get a share of Sun Pharma Advanced Research Co., which is being spun off, for every share held in the company.

IFCI was the highest on BSE in terms of traded volume. A strong 2.54 crore shares changed hands in the counter on BSE. Visu International (43.6 lakh shares), Reliance Natural Resources (41.51 lakh shares), Indiabulls Real Estate (36.36 lakh shares) and Reliance Petroleum (34.04 lakh shares) followed closely on the heels of IFCI, in that order.

The undertone of the market remains cautious due to concerns that rising interest rates will slow economic growth. Infosys’ FY 2008 guidance is the next major trigger for the market.

Bank of Japan (BoJ) started a two-day policy meeting on Monday (9 April). The BoJ is seen keeping the overnight call rate unchanged at 0.5% at the meeting. Investors will look for clues about the BoJ's view on prices, as well as the health of the economy, in comments from BoJ Governor Toshihiko Fukui at a post-meeting news conference on Tuesday (10 April).