Sensex vaults 418 points as Asian markets rally; Reliance Communications surges

The market surged for the second straight day in volatile trade on continued buying support in index pivotals. The market had soared in afternoon trade extending early gains as Asian stocks rose with sentiment boosted by Microsoft Corp's bid for Yahoo Inc and following China's buy of a large stake in takeover target Rio Tinto. However, it turned volatile in mid-afternoon trade and pared some gains as two index heavyweights Reliance Industries and ICICI Bank eased from day’s highs.

The market breadth was strong. 26 from the 30-member Sensex pack were in the green.

European markets, which opened after Indian markets, were trading slightly higher.

Reliance Power, which raised a record $3 billion in its initial share sale in January 2008, said on Friday, 1 February 2008, it had begun refunding excess application money to investors. The initial public offer had received bids for $190 billion.

The Finance Ministry on Friday, 1 February 2008 sought views from the public and other stakeholders on a set of measures proposed to strengthen the existing listing requirements. The Government now proposes to stipulate a public stake of 25% for a company to be listed and to continue to be listed on the stock exchanges.

The 30-share BSE Sensex rose 417.74 points or 2.29% at 18,660.32. It opened 253.45 points higher at 18,496.03 and surged to hit a high of 18,895.34 in afternoon trade. At day’s high it gained 652.76 points. It slipped to day’s low of 18,439.33 in mid-afternoon trade, when the Sensex was up 204.67 points for the day.

The broader CNX S&P Nifty was up 146.25 points or 2.75% at 5,463.50. Nifty February 2008 futures were at 5478, a premium of 14.50 points as compared to spot closing.

The BSE Mid-Cap index was up 3.14% to 8,004.91, while the BSE Small-Cap was up 2.88% at 10,362.37. Both these indices outperformed the Sensex

The market breadth was strong on BSE: 2264 shares advanced as compared to 551 that declined. 36 stocks remained unchanged.

The total turnover on BSE amounted to Rs 5743 crore as compared to Rs 5,578.94 crore on Friday, 1 February 2008

The total turnover on NSE’s futures & options segment amounted to Rs 40169.33 crore as compared to Rs 35830.69 crore on Friday, 1 February 2008

All sectoral indices on BSE settled higher. BSE Metal index (up 3.32% to 16,438.19), BSE IT index (up 4.15% at 4,097.61), BSE TecK index (up 4.48% to 3,573.55), BSE Oil & Gas index (up 2.45% at 11,293.36), BSE Power (up 2.58% to 3,890.57), BSE Realty index (up 6.53% at 10,513.46), BSE PSU index (up 3.36% to 8,658.29), outperformed the Sensex

BSE Auto (up 2.05% at 5,107.70), BSE FMCG index (up 0.87% at 2,244.44), BSE Consumer Durables index (up 0.67% to 5,155.67), BSE Health Care index (up 1.77% at 3,707.06), BSE Bankex (up 2.03% at 11,110.91), BSE Capital Goods index (up 2.21% at 16,797.31), underperformed the Sensex

India’s second largest listed telecom firm by sales Reliance Communications (RCom) galloped 13.01% to Rs 691.40 on 35.23 lakh shares. It was the top gainer from Sensex pack. Reliance Infratel, a subsidiary of RCom has filed its draft red herring prospectus for an initial public offer (IPO) with the Securities and Exchange Board of India (Sebi). The company will offer 8,91,64,100 shares of Rs 5 each for cash, constituting 10.05% of its post-issue paid-up equity capital.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries rose 2.22% to Rs 2598.20. 6.93 lakh shares changed hands on the counter on BSE. The stock moved in a range of Rs 2562 and Rs 2643 during the day.

ICICI Bank, the country’s largest private sector bank in terms of net profit slipped from day’s high of Rs 1245.20. It was up 1.11% to Rs 1211.

Among the mid-cap state run banks, Andhra Bank (up 4.57% to Rs 96.20), Bank of Baroda (up 3.76% to Rs 421), Bank of India (up 3.68% to Rs 377.60), Canara Bank (up 7.25% to Rs 317.20), Oriental Bank of Commerce (up 10.44% to Rs 273.50) and Vijaya Bank (up 4.61% to Rs 69.25), surged

DLF, the largest real estate developer in terms of market capitalisation advanced 9.89% to Rs 894. The stock will replace Glaxosmithkline Pharmaceuticals, in S&P CNX Nifty index from 14 March 2008.

Other shares from real estate sector, Unitech (up 5.77% to Rs 394.30), Sobha Developers (up 8.46% to Rs 810.10) and HDIL (up 7.42% to Rs 987), also logged gains

IT stocks extended Friday (1 February 2008)’s gains after Microsoft on Friday made a $45 billion bid for Yahoo Inc. Infosys Technologies (up 3.39% to Rs 1645), TCS (up 4.17% to Rs 968.10) and Satyam Computers (up 3.33% to Rs 435.05), gained.

India’s third largest software services exporter Wipro soared 6.11% to Rs 464 on reports the company plans to build electronic warfare systems, radars and flight simulators locally for US defence contractors.

Shares from mid-cap IT pack - i flex Solutions (up 6.56% to Rs 1135), Tech Mahindra (up 6.61% to Rs 799), Rolta India (up 25.95% to Rs 318), NIIT Technologies (up 3.10% to Rs 114.75), and Polaris Sofware Lab (up 5.25% to Rs 90.40), also joined the rally

Tata Motors, the country’s largest truck manufacturer in terms of sales, rose 2.10% to Rs 770.05. It reported a 11.76% fall in its passenger car sales in the domestic market during January 2008 at 20,119 units compared with 22,801 units in the same month a year ago.

Steel stocks were in action on reports of price hike. Tata Steel gained 3.93% to Rs 807, and Steel Authority of India (Sail) rose 2.26% to Rs 231. Tata Steel has increased the prices of hot rolled (HR) coils by Rs 2,000-2,500 per tonne, while Steel Authority of India Ltd (Sail) has hike prices by Rs 1,500-2,500 per tonne.

India’s largest oil exploration company in terms of market capitalisation Oil & Natural Gas Corporation (ONGC) saw high volatility today. It slipped sharply from day’s high of Rs 1121.90 to day’s low of Rs 1032. It settled 1.87% higher at Rs 1064. As per reports, British oil major British Gas is all set to pick up a 30% stake in ONGC’s Krishna Godawari basin block and 25% in Mahanadi basin block.

India’s top small car maker in terms of sales Maruti Suzuki India slipped 1.30% to Rs 893. It was the top loser from Sensex pack. The stock slipped from day’s high of Rs 924.90. The company has raised prices of many of its models by Rs 1,000 to Rs 11,000 per unit.

Reliance Energy (down 0.69% to Rs 2001), ITC (down 0.17% to Rs 2040.50), HDFC Bank (down 1.03% to Rs 1551.10), were the other losers from Sensex pack.

Future Capital Holdings was the most active counter on BSE with a turnover of Rs 533.35 crore followed by Reliance Communication (Rs 234.93 crore), Reliance Natural Resources (Rs 215.23 crore), Reliance Energy (Rs 202.15 crore) and Reliance Industries (Rs 180.93 crore) in that order.

Ispat Industries led the volume chart with trades of around 1.87 crore shares followed Reliance Natural Resources (1.49 crore shares), Tata Teleservices (Maharashtra) (97 lakh shares), Reliance Petroleum (92 lakh shares) and IFCI (85.50 lakh shares), in that order

Shares from sugar pack surged on momentum buying. Dwarikesh Sugar (up 5% to Rs 83.15), Sakthi Sugar (up 5.40% to Rs 79.10), Triveni Engineering (up 9.38% to Rs 140), Balrampur Chini Mills (up 12.51% to Rs 88.15), Shree Renuka Sugars (up 4.36% to Rs 930), and Bajaj Hindustan (up 9.37% to Rs 229.40) surged.

Shares of oil marketing companies gained on reports that Centre is likely to take a decision on increasing petrol and diesel prices today Monday, 4 February 2008. Hindustan Petroleum Corporation (up 5.39% to Rs 276.50), Bharat Petroleum Corporation (up 12.61% to Rs 433.20), and Indian Oil Corporation (up 6.83% to Rs 525.90), edged higher

Hero Honda Motors rose 4.47% to Rs 757. It reported 31.4% rise in net profit to Rs 275.01 crore on 3.5% growth in total income to Rs 2795.17 crore in Q3 December 2007 over Q3 December 2006. The results were announced after market hours on 31 January 2008.

EID Parry (India) rose 3.51% to Rs 182 after the company’s board decided to withdraw an offer to buyback shares. The company had earlier announced a plan to buy back up to 25% of its paid-up capital and free reserves at a maximum price of Rs 160 per share.

Ramsarup Industries gained 4.33% to Rs 199 after the company said it has increased prices of steel wires in range of Rs 3500 per metric tonnes to Rs 4000 per metric tonnes with immediate effect.

Walchandnagar Industries surged 4.79% to Rs 5725 on setting 3 March 2008 as record date for a 5-for-1 stock split and a 1:1 bonus issue.

McNally Bharat Engineering Company rose 5% to Rs 241.25 after it received an order worth Rs 198.44 crore from Uranium Corporation of India for Tummalapalle project in the state of Andhra Pradesh.

Puravankara Projects jumped 15.41% to Rs 366 on reports the company plans to raise Rs 2000 crore from private equity firm by selling 49% stake in five of its real estate projects.

Deep Industries gained 4.99% to Rs 157.90 after it signed memorandum of understanding with Indian Oil Corporation for exploring the possibility of joint development of two coal bed methane (CBM) blocks and three marginal gas fields and marketing of gas.

Prithvi Information Solutions spurted 7.26% to Rs 329.45 after the company received an order worth Rs 309 crore for supply of transmission equipment to state-run Bharat Sanchar Nigam.

Elecon Engineering Company advanced 9.50% to Rs 219 on bagging an order worth Rs 11 crore from Sichaon Electricity Power Design & Consulting Company, Chandrapur, Maharashtra for supplying wagon tipplers.

European markets, which opened after Indian markets, were trading slightly higher. Key benchmark indices in United Kingdom (up 0.01% to 6,029.60), Germany (up 1.04% to 7,041.80), and France (up 0.16% to 4,985.91), advanced

Asian markets, which opened before Indian markets were trading higher. Hong Kong's Hang Seng (up 3.77% to 25,032.08), Japan's Nikkei (up 2.69% to 13,859.70), Singapore's Straits Times (up 2.30% to 3,077.80), South Korea's Seoul Composite (up 3.40% to 1,690.13), and China’s Shanghai Composite (up 8.13% to 4,672.17), all edged higher

US stocks rose on Friday, 1 February 2008 capping Wall Street's best week in almost five years, after Microsoft Corp's $44.6 billion bid for Yahoo Inc overshadowed news that employers cut payrolls for the first time since 2003.

The Dow Jones industrial average finished up 92.83 points, or 0.73% to 12,743.19. The Standard & Poor's 500 Index gained 16.87 points, or 1.22%, to 1,395.42. The Nasdaq Composite Index shot up 23.50 points, or 0.98% to 2,413.36.

Chalco, a unit of China’s state-owned Chinalco teamed up with US aluminium producer Alcoa Inc to buy a $14 billion stake in Rio, threatening BHP Billiton’s efforts to acquire Rio.