Sensex vaults 928 points in second biggest single-day rally

Intense buying in frontline stocks saw the Sensex breach 16,000 mark today. Buoyancy was visible across the global markets. The rally was triggered by JP Morgan raising Bear Stearns acquisition price by 5 times and US economic data that showed US new home sales had risen 3% in February 2008.

In the domestic front, all the sectoral indices on BSE ended higher. Banking, IT and realty stocks posted impressive gains. Mid-cap and small-cap stocks surged. The market breadth was strong.

In Europe, key indices in UK, France and Germany were up by 2.80% to 3.25%. Most of the Asian indices rallied today. China’s Shanghai Composite, which declined more than 1% earlier, recovered sharply as the session progressed. It ended up 0.09%. Key benchmark indices in Hong Kong, Singapore, South Korea and Japan were up by 1.19% to 5.88%.

The 30-share BSE Sensex rose 928.09 points or 6.07% to 16,217.49, its second biggest single-day rally in points as well as percentage terms. The index gained 972.98 points at session’s high of 16,262.38, hit at the fag end of the trade.

The broader CNX S&P Nifty jumped 267.65 points or 5.81% at 4877.50. Nifty March 2008 futures were at 4901.50, at a premium of 24 points as compared to spot closing of 4877.50.

As per provisional data, foreign funds bought shares worth a net Rs 1246.12 crore today, 25 March 2008. Mutual funds bought shares worth a net Rs 399.97 crore.

The Sensex has gained 9.50% or 1408 points since its recent low of 14809.49 on 17 March 2008. The strong rebound on the domestic bourses is commendable coming in the backdrop of a recent steep fall.

Concerns of marked-to-market losses for firms on their foreign exchange derivatives exposure, meltdown in global markets, lower-than-expected industrial production data for January 2008 and a surge in inflation created havoc on the bourses recently. Hike in short-term capital gains tax and alteration of tax treatment of the Securities Transaction Tax (STT) in Union Budget 2008-09 announced on 29 February 2008 had dented the sentiment earlier.

Coming back to today's trade, the BSE Mid-Cap index outperformed the Sensex, rising 6.36% to 6,174.49. The BSE Small-Cap index underperformed the Sensex, rising 4.81% to 7,284.64.

The market breadth was strong. On BSE, 2075 stocks advanced, 640 declined and 47 stocks were unchanged.

The BSE clocked a turnover of Rs 6836 crore as against Rs 4,682.75 on Monday, 24 March 2008.

The NSE's futures & options (F&O) segment turnover was Rs 66,627.57 crore, which was higher than Rs 42610.26 crore on Monday, 24 March 2008.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 5.16% to Rs 2314.40. The firm is reportedly evaluating a plan to set up its third refinery at Jamnagar in an ambitious project to reach a total capacity of 100 million metric tonne per annum (mmtpa), the largest at a single location in the world.

India’s largest engineering and construction firm by revenue Larsen & Toubro rose 3.94% to Rs 3053.

Top Sensex gainers were, Jaiprakash Associates (up 16.38% at Rs 233.10), DLF (up 13.47% at Rs 678.65), Reliance Energy (up 12.97% at Rs 1300.15), Infosys Technologies (up 9.64% at Rs 1492.55) and Housing Development Finance Corporation (up 8.63% at Rs 2589.75).

The BSE Bankex rose 8.10% to 8,371.34. It outperformed the Sensex. Yes Bank (up 20.53% to Rs 172.05), Kotak Mahindra Bank (up 13.36% to Rs 627.80), Oriental Bank of Commerce (up 11.84% to Rs 181.90), Axis Bank (up 10.275 to Rs 792.15) and State Bank of India (up 5.75% to Rs 1,740.20), surged.

India's largest private sector bank by assets ICICI Bank soared 9.37% to Rs 879.95. The bank has reportedly entered into a Rs 1,150-crore equity-cum-debt deal with Jaypee Infratech, a unit of Jaiprakash Associates. The bank has decided to pick up 1% stake in Jaypee Infratech for Rs 250 crore, reports added.

The BSE IT index rose 7.73% to 3,686.35. It outperformed the Sensex. Aptech (up 22.72% to Rs 207.15), Wipro (up 9.02% to Rs 434.70), TCS (up 6.38% to Rs 875.95), Satyam Computer (up 5.10% to Rs 411.05) and HCL Technologies (up 4.34% to Rs 285.95), advanced.

The BSE Realty index rose 9.48% to 7,451.24. It outperformed the Sensex. Housing Development & Infrastructure (up 13.89% to Rs 581.50), Anant Raj Industries (up 13.33% to Rs 230), Mahindra Lifespace Developers (up 9.67% to Rs 390.15), Puravankara Projects (up 9.59% to Rs 187.90) and Indiabulls Real Estate (up 2.91% to Rs 435.30), gained.

Among the side counters, Edelweiss Capital (up 24.24% to Rs 726.45), Indiabulls Financial Services (up 20% to Rs 415.05), Greaves Cotton (up 20% to Rs 216), Orbit Corporation (up 20% to Rs 386.15), Gujarat Mineral Development Corporation (up 19.93% to Rs 286.45) and Reliance Capital (up 17.68% to Rs 1,328.75), surged.

Reliance Natural Resources clocked the highest volume of 2.14 crore shares on BSE. ispat Industries (1.62 crore shares), Essar Oil (1.14 crore shares), Reliance Petroleum (96.33 lakh shares) and IFCI (92.34 lakh shares), these were the other volume toppers on BSE in the order.

Axis Bank registered highest turnover of Rs 603.16 crore on BSE. GSS America (Rs 379.56 crore), Reliance Capital (Rs 303.90 crore), Housing Development Finance Corporation (Rs 246.36 crore) and Essar Oil (Rs 232.46 crore), were the other turnover toppers on BSE in that order.

Chemicals maker GHCL surged 16.28% to Rs 86.80 after the company said it plans to spin off its home textiles and retail businesses into separate units as part of a restructuring plan.

Software firm Prithvi Information Solutions surged 9.69% to Rs 154.50 after the software services firm said its board will consider a share buyback proposal on 31 March 2008.

Steel pipes maker Welspun Gujarat Stahl Rohren jumped 12.93% to Rs 332.35 after the company said it has bagged pipeline orders worth Rs 1,075 crore for the supply of spiral pipes to Northern Africa.

Apparels maker Gokaldas Exports advanced 8.73% to Rs 185 on reports the company has secured an order to supply 2.50 lakh units of sportswear like jumpers, track-suits & vests for the thousands of athletes participating in Beijing Olympics.

Apparels firm Arvind Mills jumped 5.44% to Rs 36.85 after the company said Arvind Brands a division of the company has signed an agreement with Philips-Van Heusen Corporation for designing, distribution & retailing of IZOD brand in India.

Future Capital Holdings, the financial services arm of the Future Group, jumped 7.74% to Rs 589.20 after the company said its board has approved to invest upto Rs 47.75 crore in its subsidiary Future Finmart.

Cement maker Prism Cement soared 9.77% to Rs 42.15 after 14 lakh shares, or 0.47% of the company's equity, changed hands in a block deal on NSE at Rs 39.55 each.

Power equipment maker Jyoti Structures spurted 4.07% to Rs 162.30 after its secured an order worth Rs 160 crore for construction of transmission line and sub-stations in Uganda.

US markets rallied yesterday, 24 March 2008 on the back of a revised offer for Bear Strens. JP Morgan Chase revised its open offer for Bear Strearns to $10 per share from $2 per share. The Dow Jones industrial average surged 187.32 points, or 1.52%, to 12,548.64. The Standard & Poor's 500 index advanced 20.37 points, or 1.53%, to 1,349.88, and the Nasdaq Composite index added 68.64 points, or 3.04%, to 2,326.75.