Sensex adds 206 points in Asian rally

The market ended on a firm note on the back of firm global markets. However, a rebound in global crude oil prices pared strong intra-day gains on the domestic bourses. Banking and information technology stocks rallied. However, automobile stocks declined after the Union government raised excise duty on large cars, multi-utility vehicles and sports utility vehicles with an engine cubic capacity exceeding 1500.

Crude rebounded to $134.90 a barrel after falling in response to plans by Saudi Arabia to push output to its highest rate in decade. A solid surge in global crude oil prices has hit equities across the globe in the past few days as it has raised fears of global inflation.

Asian stocks, which opened before Indian market, rallied on Monday, 16 June 2008, as the US dollar rebounded and oil fell below $134 a barrel, boosting confidence in the region's exporters. Key indices in Japan, China, South Korea, Singapore, Taiwan, and Hong Kong were up by 0.18% to 2.72%. Oil later rebouded from lower level.

The 30-share BSE Sensex rose 206.20 points or 1.36% at 15,395.82. At the day’s high of 15,553.37, Sensex gained 363.75 points in early trade. Sensex gained 143.45 points at day's low of 15,333.07, hit in late trade.

The broader based S&P CNX Nifty gained 55.4 points or 1.23% at 4572.50. Nifty June 2008 futures were at 4570, at a discount of 2.5 points as compared to spot closing.

The BSE clocked a turnover of Rs 4512 crore as compared to Rs 5847.40 crore on Friday 13 June 2008. NSE's futures & options (F&O) segment turnover was Rs 40166.83 crore, which was lower than Rs 41003.4 crore on Friday, 13 June 2008.

The market breadth was strong on BSE with 1776 shares advancing as compared to 872 that declined. 76 remained unchanged.

The BSE Mid-Cap index rose 1.15% to 6,299.72 and BSE Small-Cap index up 1.15% to 7,669.11. Both these indices underperformed the Sensex.

The BSE Bankex outperformed the Sensex, rising 2.83% to 7,255.63. Axis Bank (up 4.51% at Rs 736.15), Bank of Baroda (up 4.01% at Rs 241.05), Kotak Mahindra Bank (up 2.97% at Rs 631.90), and HDFC Bank (up 2.50% at Rs 1,151.45), spurted.

India's largest private sector lender by assets ICICI Bank rose 4.43% to Rs 798.70.

State Bank of India fell 0.61% to Rs 1326.40 after the country's largest lender, on Saturday, 14 June 2008, decided not to raise its prime-lending rate. The decision was taken at a meeting of the assets-liability committee (Alco) of State Bank of India (SBI) on Saturday, 14 June 2008. The Alco met to deal with the issue of interest rates in the wake of the Reserve Bank of India's (RBI) move to raise repo rates, or the rate at which it lends to banks, by 25 basis points to 8%, on 11 June 2008, to contain inflation.

The BSE IT index outperformed the Sensex, gaining 1.78% to 4,413.35. Infosys Technologies (up 2.34% at Rs 1,907.25), HCL Technnologies (up 1.92% at Rs 293.90), Wipro (up 1.76% at Rs 486.25), and Satyam Computer (up 1.58% at Rs 488.45) and TCS (up 0.32% at Rs 910.55), flared up.

The BSE Auto index underperformed the Sensex, sliding 0.14% at 4123.88. Hero Honda Motors (down 1.83% at Rs 762.80), Maruti Suzuki (down 0.52% at Rs 718.10), and Mahindra & Mahindra (down 0.23% at Rs 569.10), slipped.

TVS Motor Company (up 1.16% at Rs 34.90), Tata Motors (up 0.11% at Rs 516.75), rose.

India’s largest aluminium manufacturer by sales Hindalco Industries fell 2.31% at Rs 171.35 after the company said on Friday, 13 June 2008, it may consider a comprehensive plan including an equity rights issuance to finance the loan taken to acquire leading aluminium-rolling company Novelis

India’s second largest telecom services provider by sales Reliance Communication fell 1.52% at Rs 535.10 after Reliance Industries, India’s largest private sector firm by market capitalisation and oil refiner, claimed first right of refusal to buy a controlling stake in it. Reliance Communications, controlled by Anil Ambani, is in exclusive talks with South Africa's MTN about a tie-up that could create a top-10 global telecoms firm. As part of a tie-up, Anil Ambani would likely swap his controlling stake in Reliance Communications to become the largest shareholder in MTN. Shares of Reliance Industries rose 0.73% at Rs 2284.85.

Steel makers JSW Steel (up 5.10% to Rs 994.85), Tata Steel (up 0.83% to Rs 848.35), Steel Authority of India (up 1.50% to Rs 162.25), and Bhushan Steel (up 1.30% to Rs 854.05), advanced after the Union government withdrew export duty on flat rolled products of iron and steel, including galvanised products, pipes and tubes.

Engineering equipments maker Atlas Copco India was locked at 20% upper limit at Rs 1077.90 after the company said its board will meet on 25 June 2008 to consider buy back of equity shares.

Internet broadband services provider Gemini Communication surged 5% to Rs 203.50 after the company said it has acquired a 51% stake in Chennai based Veeras Infotek for Rs 7 crore.

Drug maker Lupin gained 2.99% to Rs 725.05 after its unit Lupin Pharmaceuticals Inc received a tentative approval from US Food & Drug Administration for its escitalopram oxalate tablets in 10 & 20 milligram strengths.

New age lender Yes Bank rose 2.50% at Rs 143.25 after the bank said it has raised its prime lending rate by 50 basis points to 16% with immediate effect.

Drug maker Cadila Healthcare rose 0.67% at Rs 313.75 after the firm said on Friday, 13 June 2008, its board will meet on June 17 to consider restructuring of the group's consumer products business.

State-run natural natural gas distributer GAIL India spurted 4.50% at Rs 398.05 after the company said its board will meet on 23 June 2008 to consider issue of bonus shares.

Shipping and logistics services provider Shreyas Shipping & Logistics rose 3.03% to Rs 64.70 after the company said it has sold its vessel M V OEL Express for a consideration of $11.5 million.

Anu's Laboratories clocked a highest turnover of Rs 400 crore on BSE. Chambal Fertilizers and Chemicals (Rs 242.77 crore), Reliance Industries (Rs 195.40 crore), Reliance Capital (Rs 149.38 crore) and Reliance Petroleum (Rs 117.91 crore), were the other turnover toppers on BSE in that order.

Chambal Fertilizers and Chemicals reported a highest volume of 2.58 crore shares on BSE. Nagarjune Fertilizers & Chemicals (1.88 crore shares), Anu's Laboratories (1.10 crore shares), IFCI (94.35 lakh shares) and Reliance natural Resources (88.87 lakh shares), were the other volume toppers on BSE in that order.

European markets, which were mostly trading lower earlier in the day, recovered as the day proceeded. Key indices in UK, France and Germany were up by 0.03% to 0.16%.

US markets rallied on Friday, 13 June 2008, led by financial and technology stocks, as a tame core-inflation reading and lower crude prices boosted market. The Dow Jones industrial average jumped 166 points at 12,307. The Nasdaq Composite index surged 50 points up at 2,454.50. The S&P 500 index advanced 20.16 points to 1360.03.