Sensex vaults 817 points as global markets rally

Strong global cues set up a solid platform for Indian market to surge today. The rally in global markets was triggered by an unexpected rise in US retail sales in January 2008 that helped ease recession worries in the world's largest economy.

Capital goods and power stocks were in demand. Oil and gas stocks perked up on reports the Indian government has raised retail fuel prices to ease losses at state-run oil marketing firms. 29 out of 30 stocks from the Sensex pack gained. The market breadth was strong.

European markets, which opened after Indian market, were trading firm. Asian markets, which opened before Indian market, ended on a firm note.

The 30-share BSE Sensex rose 817.49 points or 4.82% at 17,766.63, recording its fourth biggest rise in percentage terms. Sensex’s rally of 817.49 points today is its fifth biggest single day rise in point terms.

Sensex gained 888.94 points at the day's high of 17,838.08, at the fag end of the trade. Sensex was up 316.05 points at the day's low of 17,265.19, hit in opening trade.

The biggest single day gain in Sensex in both point terms and percentage terms was registered on 25 January 2008, when the barometer index had risen 1139.92 points or 6.62% to 18361.66.

The broader CNX S&P Nifty rose 272.55 points or 5.53% at 5202.

The BSE Mid-Cap index outperformed the Sensex, rising 5.33% to 7,452.72. The BSE Small-Cap underperformed the Sensex, rising 3.96% to 9,407.76.

The market breadth was quite strong: On BSE, 2057 advanced as compared to 697 that declined. 41 stocks remained unchanged.

BSE clocked a turnover of Rs 5714 crore compared to Rs 5,818.88 crore on Wednesday, 13 February 2008.

The Nifty February 2008 futures were at 5187, at a discount of 15 points as compared to the spot closing of 4929.45.

The NSE's futures & options (F&O) segment turnover was Rs 37973.36 crore, which was higher than Rs 37555.25 crore on Wednesday, 13 February 2008.

India's biggest power equipment maker in terms of revenue Bharat Heavy Electricals surged 12.63% to Rs 2232 after it won a Rs 200-crore contract for supplying oil field equipment to Oil & Natural Gas Corporation.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries rose 5.35% at Rs 2514.70.

The BSE Capital Goods index rose 7.53% to 16,282.17. Larsen & Toubro spurted 7.03% to Rs 3,507.15, Praj Industries surged 14.42% to Rs 168.25, Crompton Greaves moved up 9.79% to Rs 307.80 and Suzlon Energy rose 7.83% to Rs 338.15.

Engineering and construction firm Punj Lloyd flared up 10.52% to Rs 366.50. Sembawang Engineers and Constructors, a unit of Punj Lloyd, has bagged a Singapore dollar 400 million contract to build part of the Marina Bay Sands integrated resort in Singapore.

The BSE Power index rose 8.14% to 3,729.16. It outperformed the Sensex. GMR Infrastructure surged 12.41% to Rs 165.75, Reliance Energy soared 9.63% to Rs 1,708.15, Power Grid Corporation of India moved up 8.71% to Rs 103, Torrent Power moved up 7.33% to Rs 146.50, NTPC flared up 6.84% to Rs 200.75 and Tata Power climbed 5.12% to Rs 1,275.80.

Oil refinery and marketing stocks surged on reports the government has raised prices of petrol and diesel by Rs 2 per litre and Rs 1 per litre respectively effective Thursday, 14 February 2008 midnight.

The BSE Oil & Gas index was up 7.42% at 10,932.36. It outperformed the Sensex. HPCL soared 14.81% to Rs 297.60, Indian Oil Corporation jumped 13.83% to Rs 536.75, BPCL rose 10.86% to Rs 465, Mangalore Refineries & Petrochemicals (MRPL) climbed 8.23% to Rs 86.75, Chennai Petroleum moved up 6.72% to Rs 295.55 and Bongaigaon Refinery and Petrochemicals rose 8.22% to Rs 63.20.

The BSE Bankex rose 4.64% to 10,614.09. It underperformed the Sensex. ICICI Bank spurted 5.74% to Rs 1,162.35, Indian Overseas Bank soared 7.67% to Rs 176.20, Union Bank of India flared up 6.81% to Rs 196.80, HDFC Bank moved up 4.91% to Rs 1,539.10 and State Bank of India rose 4.17% to Rs 2,205.15.

The BSE IT index rose 0.94% to 3,843.50. It underperformed the Sensex. Wipro moved up 1.41% to Rs 415.75, Satyam Computer gained 1.31% to Rs 438.40 and TCS rose 0.60% to Rs 874.15. However, Infosys Technologies fell 0.12% to Rs 1547.30.

Essar Oil (up 16.21% to Rs 214), Reliance Petroleum (up 13.56% to Rs 164.55), Steel Authority of India (up 7.57% to Rs 213.75), Centurion Bank of Punjab (up 2.59% to Rs 49.45), advanced on reports of their inclusion in a number of Morgan Stanley Capital International (MSCI) indices. The inclusion of these firms in the MSCI gauges may increase demand for these stocks by fund managers whose funds track the indices.

Anil Dhirubhai Ambani Group firm Reliance Power rose 5.31% to Rs 370.05 on volume of 82.93 lakh shares on BSE. On Monday, 11 February 2008, the stock had debuted at Rs 547.80, a premium of Rs 21.73% over the IPO price of Rs 450.

Jewellery manufacturer Renaissance Jewellery jumped 9.28% to Rs 96.60 after the company said it bought a New York-based jewellery wholesaler, JBR Inc, though its unit Renaissance Jewelry New York, Inc. for an undisclosed sum.

State run oil & gas supplier GAIL India rose 3.23% to Rs 410.90 after the company signed an initial deal with Russian gas producer ITERA to jointly develop city gas supply and petrochemicals projects in Russia and the CIS countries.

Jaiprakash Associates clocked highest turnover of Rs 502.03 crore on BSE. Reliance Natural Resources (Rs 339.64 crore), Reliance Power (Rs 303.41 crore), Reliance Capital (Rs 237.76 crore) and Reliance Petroleum (Rs 230.28 crore), were the other turnover toppers on BSE in that order.

Reliance Natural Resources reported highest volume of 2.67 crore shares on BSE. Jaiprakash Associates (1.86 crore shares), Reliance Petroleum (1.46 crore shares), Ispat Industries (1.13 crore shares) and Nagarjuna Fertilisers and Chemicals (1.05 crore shares), were the other volume toppers on BSE in that order.

In Europe, key indices in UK, France and Germany rose by 0.16% to 0.85%.

Asian markets ended on a firm note today, 14 February 2008. Key indices in Hong Kong, China, Japan, Taiwan, Singapore and South Korea were up by 1.37% to 4.27%.

US Markets rallied on Wednesday, 13 February 2008 after a surprise rise in retail sales in January 2008. The Dow Jones industrial average gained 178.83 points, or 1.45%, to 12,552.24. The S&P 500 index rose 18.35 points, or 1.36%, to 1,367.21, and the Nasdaq Composite index advanced 53.89 points, or 2.32%, to 2,373.93.

Meanwhile, as per reports Dominique S. Kahn, managing director of the International Monetary Fund said yesterday, 13 February 2008 that emerging economies such as India, which are expanding rapidly, are not insulated from the impact of a slowdown in the US and will feel the pinch sooner or later.

Kahn, who is on a three-day visit to India, also underlined the need for a global solution to the problem of financial crisis, which could have a ripple effect on several economies.