Sensex posts biggest ever point rise in a single day; soars 654 points

The market soared to record closing with high turnover. It opened with a bang and kept on advancing during the course of the trading session as buying continued for index pivotals. Short covering might also have propelled the market higher to some extent. The total turnover on BSE crossed Rs 7000 crore mark. While the BSE Sensex settled above 16,300, the S&P CNX Nifty closed above 4,700

Shares from across sectors and market capitalisation participated in the rally which was triggered after the US Federal Reserve announced a higher than expected 50 basis points cut in fed funds rate to 4.75% from 5.25% on Tuesday, 18 September 2007, easing concerns about housing slump driving the world's largest economy into recession. Prior to this, it had hiked rates for 17 consecutive times in the span of four years.

Asian markets, which opened before Indian market, rallied today, 19 September 2007, after the Fed decision. All European markets which opened after Indian market were also trading with gains.

The 30-shares BSE Sensex surged 653.63 points or 4.17% at 16,322.75. This is the biggest single-day point gain in Sensex. It opened with a sharp 271.67 point upward gap at 15,940.79 and advanced further to hit an all-time high of 16,335.30. Its previous all-time high was 15,868.85 hit on 24 July 2007.

Sensex surged 2,333.64 points or 16.68% to 16,322.75 from a recent low of 13,989.11 on 21 August 2007, in just 21 trading sessions.

The S&P CNX Nifty up 186.15 points or 4.09% at 4,732.35. It also struck an time high of 4,739. The Nifty September 2007 futures settled at 4,747, a premium of 8 points as compared to spot closing

The BSE Mid-Cap index rose 1.88% to 7,116.61 after hitting an all time high of 7,120.91. The BSE Small-Cap index hit an all time high of 8,943.23. It settled 1.03% higher to 8,871.00. But both these indices underperformed the Sensex

The total turnover on BSE crossed Rs 7,000 crore mark. It amounted to Rs 7,405 crore as compared to Rs 5,618.94 crore on Tuesday, 18 September 2007.

The NSE F&O turnover was Rs 68,643.65 crore as compared to Rs 45,069.25 crore on Tuesday, 18 September 2007.

All the sectoral indices on BSE posted gains. Interest rate sensitive sectors like banking, real estate, auto dominated gainers.

BSE Bankex (up 4.84% at 8,691.45), BSE Realty index (up 5.77% to 8,464.54), BSE Oil and Gas Index (up 5% at 8,924.11), outperformed the Sensex.

BSE Auto Index (up 3.49% at 5,094.31), BSE PSU index (up 3.48% to 7,642.77), BSE FMCG Index (up 2.05% at 2,140.91), BSE Metal Index (up 3.82% at 12,546.34), BSE Capital Goods Index (up 1.80% at 14,112.99), The BSE Consumer Durables index (up 1.25% to 4,743.75), BSE Health Care Index (up 1.17% at 3,704.27), BSE IT Index (up 2.41% at 4,491.21), and BSE TecK index (up 3.42% to 3,619.93) were underperformers

All the 30-members from Sensex pack advanced.

India’s largest listed cellular services provider by sales Bharti Airtel jumped 6.93% to Rs 890.20 on 2.91 lakh shares after its Sri Lankan unit signed a $150 million contract with China's Huawei Technologies Co to build and manage mobile infrastructure in the island nation over three years. It was the top gainer from Sensex pack.

Bank and financial shares rallied on the reckoning that the Fed move could put pressure on RBI to loosen its monetary policy. India’s top private sector mortgage lender in terms of revenue Housing Development Corporation (HDFC) surged 6.83% to Rs 2330. The stock eased form its all time high of Rs 2415 hit earlier during the day

HDFC Bank, the country’s second largest private sector bank in terms of net profit soared 6.83% to Rs 1314

State Bank of India, the country’s largest banking entity by net profit jumped 4.52% to Rs 1770. It topped the list of advance taxpayers, after it paid reportedly paid Rs 1,050 crore in the June-September quarter, which is nearly 50% more than the tax paid during the corresponding period last year.

India’s second largest bank by net profit, ICICI Bank jumped 4.44% to Rs 966.10. As per reports it paid Rs 450 crore advance tax for the June-September 2007 period. The bank had paid the same amount for the corresponding period last year.

India’s largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) surged 5.99% to Rs 2181.70 on 10.59 lakh shares. It struck an all time high of Rs 2185. As per reports its subsidiary - Reliance Logistics (RLL) is planning to set up logistics parks within all the upcoming special economic zones (SEZs). The Reliance logistics parks will cater to the entire range of logistic requirements of the SEZs. RIL has reportedly paid Rs 650 crore in the June-September 2007 quarter. The tax outgo during the June-September period last year was about Rs 450 crore.

Oil and Natural Gas Corporation, the country’s largest oil exploration company by revenue surged 5.89% to Rs 901 after its Chairman R.S. Sharma said the company may consider a bonus issue and a share split in the future. He did not give a time frame for bonus issue and stock-split.

Infosys Technologies, the nation’s second largest software services exporter rose 3.14% to Rs 1856.55 on rumors the firm is interested in acquiring UK-based Sage Group. Infosys has denied the reports further clarifying that it also isn't negotiating with Cap Gemini SA about buying any part of the company.

Maruti Suzuki India, the country’s top car-maker by sales vaulted 5.11% to Rs 920.50 on reports that company will set up an auto component park with Japan's Futuba Industrial Company. Maruti will hold a 49% stake in the joint venture. This will be Futuba’s first project outside Japan

India’s second largest bike maker Bajaj Auto rose 4.55% to Rs 2510. It has reportedly paid Rs 120 crore for the second quarter of the current fiscal. The company has paid Rs 102 crore as the first installment during the quarter ending June 2007.

India’s second largest cellular services provider by sales Reliance Comunications, rose 5.11% to Rs 564.75 after its subsidiary Flag Telecom reportedly signed a five-year agreement with UK-based Vanco to increase its presence across 81 countries worldwide.

Sugar shares were star of the day’s trading session as they surged on frenzied buying after Agriculture Minister Sharad Pawar said the government plans to give more fiscal incentives to sugar mills. All of them saw a phenomenal spurt in volumes.

Dwarikesh Sugar (up 20% to Rs 66.60), Sakthi Sugar (up 20% to Rs 92.70), Triveni Engineering (up 22.68% to Rs 135.50), Balrampur Chini Mills (up 24.31% to Rs 83.60), Shree Renuka Sugars (up 24.68% to Rs 686.10), and Bajaj Hindustan (up 21.76% to Rs 178.50) surged. The government will detail the new financial incentives in 10 days, Pawar said today.

As per reports, sugar mills may be allowed to produce ethanol directly from cane juice, instead of molasses, to lower dependence on sugar prices. The South Asian nations may require oil refiners to double the ethanol level in gasoline to 10% from October 2008.

DLF was the top traded counter on BSE with total turnover of Rs 255.19 crore followed by Reliance Industries (Rs 226.36 crore), ICICI Bank (Rs 226.36 crore), Reliance Capital (Rs 134.16 crore), and Shree Renuka Sugars (Rs 127.42 crore).

Shares from real estate pack surged. Indiabulls Real Estate (up 6.60% to Rs 523.60), Unitech (up 3.91% to Rs 292.65), HDIL (up 2.92% to Rs 644) and Parsvnath Developers (up 5.75% to Rs 338.90) surged.

DLF galloped 8.91% to Rs 714.25 on reports that the company is getting into the retail of luxury brands and is in talks with some well-known retail chains, including Georgio Armani, Versace and Dolce Gabbana. DLF is in talks with 10-12 brands. Also another set of reports stated that DLF will tie up with a foreign major Carrefour for the supermarket business at a later stage.

Nagarjuna Construction Company surged 10.30% to Rs 240.70 after the company in consortium with POSCO E & C of South Korea bagged an engineering, procurement and construction contract valued at Rs 1558 crore from Steel Authority of India (Sail) for IISCO steel plant at Burnpur, West Bengal.

Jubilant Organosys surged 4.70% to Rs 305 after it signed a five-year multi million dollar contract with Switzerland based-Syngenta to supply chemical compounds used in manufacturing of medicines and agricultural products. The new contracts will start from early 2008.

Engineers India (EIL) jumped 6.82% to Rs 621.50. It soared 20% to Rs 582 yesterday 18 September on market talks that it is expected to bag a contract related to oil exploration. However the company denied such rumors.

The first batch of advance tax figures hint improved corporate earnings for the second quarter ended September 2007. Advance taxes are paid in four installments — in June, September, December and March. The June and September installments usually constitute about 15% and 25% respectively of the total advance tax payable in a fiscal.

European markets which opened after Indian market were trading with gains. Key benchmark indices from United Kingdom (up 2.20% to 6,621.70), Germany (up 2.10% to 7,734.35), and France (up 2.43% to 5,683.95), advanced.

Asian markets surged today, 19 September 2007 tracking overnight gains on Wall Street. Hong Kong's Hang Seng (up 3.98% at 25,554.64), Japan's Nikkei (up 3.67% at 16,381.54), Singapore's Straits Times (up 3.35% at 3,594.36), South Korea's Seoul Composite (up 3.48% at 1,902.65) and Taiwan's Taiwan Weighted (up 0.30% at 8,926.50) surged.

Wall Street shares rallied yesterday, 18 September 2007 after the Federal Reserve cut its benchmark interest rate by a larger-than-expected 0.5%. The Dow Jones industrial average soared 335.97 points, or 2.51%, to 13,739.39. This was its biggest surge since 2 April 2003. The blue-chip index is now only about 1.9% below its record close of 14,000.41, reached in mid-July. The Standard & Poor's 500 index rose 43.13 points, or 2.92%, to 1,519.78. The Nasdaq Composite index gained 70 points, or 2.71%, to 2,651.66.

Crude oil climbed above $82 a barrel on Wednesday, 19 September 2007 near a record reached a day earlier after the US Federal Reserve slashed interest rates to calm worries over economic growth ahead of peak winter fuel demand. US light crude for October delivery rose 82 cents to $82.33 a barrel, after hitting a record of $82.38 yesterday, 18 September 2007. London Brent crude gained 72 cents to trade at $78.31 a barrel.