Market soars on hopes of US govt package, global rally

Frenzied buying in battered index pivotals along with short covering triggered a solid rally in the key benchmark indices today, 19 September 2008. The BSE 30-share Sensex jumped 726.72 points. Markets across the globe rallied on hopes of a more comprehensive US government approach in taming the global credit crisis.

Strong US stock futures further boosted the domestic bourses in late trade. US stock futures rose after the Securities and Exchange Commission announced a temporary ban on short selling of 799 financial stocks effective Friday, 19 September 2008.

Back home, realty, banking and IT stocks were at the forefront of the rally. Index heavyweight Reliance Industries (RIL) surged over 6%. The market breadth was strong. 29 from the 30-member Sensex pack logged gains. Satyam Computer Services and ICICI Bank spurted over 10% each. Turnover on BSE was above Rs 6,000 crore.

As per provisional data released by the stock exchanges after trading hours, foreign funds today, 19 September 2008, bought shares worth a net Rs 1016.18 crore. Domestic funds bought shares worth a net Rs 43.91 crore.

The BSE 30-share Sensex jumped 726.72 points or 5.46% to 14,042.32. The Sensex opened with a huge 448.23-point upward gap at 13,763.83. At the day's high of 14,097.44 hit in late trade, the Sensex gained 781.84 points. At the day’s low of 13,674.96, the Sensex rose 359.36 points in early trade.

The S&P CNX Nifty advanced 207.10 points or 5.13%, to settle at 4245.25. Nifty September 2008 futures were at 4283.10, at a premium of 37.85 points as compared to spot closing.

The barometer index BSE Sensex is down 6224.67 points or 30.78% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 7164.45 points or 33.78% below its all-time high of 21,206.77 struck on 10 January 2008.

US markets on Thursday, 18 September 2008, recorded biggest one-day percentage gain since October 2002 after the US Treasury Secretary Henry Paulson proposed to congressional lawmakers a proposal to create an entity to deal with the billions of dollars of bad debt still choking the financial system. The Dow Jones industrial average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500 index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq Composite index surged 100.25 points, or 4.78%, to 2,199.10.

European markets, which opened after Indian markets, surged today, 19 September 2008, boosted by a four-month ban by UK on short-selling of financial stocks. Key benchmark indices in UK, Germany and France were up by between 4.33% to 8.29%.

Battered Chinese stocks soared 9.46% in response to an unprecedented package of government measures to support the market. Stocks rose across Asia. Key benchmark indices in Hong Kong, Singapore, Japan, Taiwan, and South Korea were up by between 4.55% and 9.61%.

Back home, the market breadth was strong on BSE with 1873 shares advancing as compared to 777 that declined. 68 remained unchanged.

The BSE Mid-Cap index rose 2.95% to 5,228.78 and the BSE Small-Cap index gained 2.31% to 6,215.99.

The total turnover on BSE amounted to Rs 6202 crore as compared to Rs 7,376.23 crore on Thursday, 18 September 2008. NSE's futures & options (F&O) segment turnover was Rs 73,792.36 crore, which was lower than Rs 74,094.75 crore on Thursday, 18 September 2008.

India’s largest private sector firm in terms of market capitalization and oil refiner Reliance Industries advanced 6.38% to Rs 2056.25 on 16.60 lakh shares. The stock had hit a 52-week low of Rs 1764 yesterday, 18 September 2008. The company has reportedly struck gas at eight more locations in the Krishna-Godavari basin, which it intends to develop at an approximate cost of $3 billion.

IT pivotals rallied on fresh buying on hopes of a solution to the US financial crisis. India’s fourth largest software services exporter Satyam Computer Services galloped 10.97% to Rs 371.75 on 13.39 lakh shares. It was the top gainer from Sensex pack.

Other IT pivotals, Infosys (up 6.52% to Rs 1622.90), Wipro (up 5.09% to Rs 417.30), and TCS (up 6.94% to Rs 770.10), edged higher. Indian IT firms count US financial services firms among their top clients.

Battered realty stocks made a strong comeback today. India’s largest real estate developer by market capitalisation DLF galloped 7.70% to Rs 426.60 on high volumes of 31.29 lakh shares.

Ansal Infrastructure (up 18.49% to Rs 90.10), Akruti City (up 11.52% at Rs 908.20), Indiabulls Real Estate (up 17.65% to Rs 225.30), Unitech (up 3.15% to Rs 125.90), and Housing Development & Infrastructure (up 8.08% to Rs 224.05), advanced.

The BSE Realty index surged 7.59% to 4,102.64 and was the top gainer among the BSE sectoral indices today, after striking a 52-week low of 3,598.36 on Thursday, 18 September 2008.

India's largest private sector bank in terms of net profit ICICI Bank surged 10.17% to Rs 634.40, after its chief executive officer K V Kamath said the bank is an extremely healthy institution and has ample capital. The bank had on Wednesday, 17 September 2008, denied rumours of top management selling shares following a sell-off in the counter.

Other banking shares HDFC Bank (up 6.22% to Rs 1298), and State Bank of India (up 0.30% to Rs 1566), edged higher.

India’s top tractor maker by sales Mahindra & Mahindra was the lone loser from Sensex pack. The stock lost 0.10% to Rs 550.

The wholesale price index rose 12.14% in the 12 months to 6 September 2008, marginally above the previous week's rise of 12.10%, data released after market hours on Thursday, 18 September 2008 showed.

Telecom pivotals surged in late trade. India’s top cellular services provider by market capitalisation Bharti Airtel jumped 6.54% to Rs 810.10. In late trade, 12.23 lakh shares, or 0.06% of company's equity changed hands in a block deal at Rs 798.50 on BSE.

India’s second largest cellular services provider by market capitalisation Reliance Communcations rose 5.63% to Rs 375.50.

Capital goods heavyweights advanced. India’s largest power equipment maker by sales Bharat Heavy Electricals surged 6.57% to Rs 1715. Larsen & Toubro, the country’s largest engineering & construction company by sales, advanced 4.27% to Rs 2650.

India’s largest oil exploration company by market capitalisation Oil & Natural Gas Corporation soared 7.27% to Rs 1071.80 on reports the company would invest Rs 19,338 crore in oil and gas hunt during the current fiscal year, 10% higher than last year.

India’s largest private sector aluminium maker by sales Hindalco Industries rose 0.31% to Rs 112.80. The company’s rights issue will open on Monday, 22 September 2008.

HDFC (up 8.86% to Rs 2320), Tata Power (up 8.69% to Rs 1031), and Jaiprakash Associates (up 6.08% to Rs 135.15) edged higher from Sensex pack.

Reliance Capital was the top traded counter on BSE with turnover of Rs 441 crore followed by Reliance Industries (Rs 336.25 crore), Bharti Airtel (Rs 266 crore), ICICI Bank (Rs 229.35 crore) and State Bank of India (Rs 197 crore), in that order.

Jaiprakash Associates topped volumes chart on BSE with volumes of 1.48 crore shares followed by Reliance Natural Resources (1.34 crore shares), IFCI (1.27 crore shares), Sesa Goa (1.13 crore shares) and Kohinoor Broadcasting (75.66 lakh shares) in that order. Among side counters, Reliance Capital (up 14.27% to Rs 1284), Engineers India (up 14.31% to Rs 620), and Educomp Solutions (up 14.65% to Rs 3800), surged.

HCL Technologies spurted 8.28% to Rs 213.25 on reports the company would go for a large $1-2 billion acquisition in the US or Europe before 2011.

Patel Engineering jumped 3.02% to Rs 363 after the company bagged an order worth Rs 695.57 crore from the Andhra Pradesh state government. The company made this announcement during trading hours today, 19 September 2008.

Phoenix Mills spurted 2.06% to Rs 146 after 20.45 lakh shares, or 1.41% the company's equity, changed hands in a block deal at Rs 151.50 each on BSE at 10:07 IST.

Videocon Industries surged 6.26% to Rs 230.95 after the company said its overseas unit VB (Brasil) Petroleo has acquired 100% stake in EnCana Brasil Petroleo of Brazil for consideration of $165 million. The company made this announcement during trading hours today, 19 September 2008.

Light, sweet crude for October 2008 delivery added 72 cents to settle at $97.88 a barrel on Thursday, 18 September 2008 on the New York Mercantile Exchange.