Tumbling oil lifts Sensex by 551 points

A strong correction in crude oil price helped the key benchmark indices register phenomenal gains today, 2 September 2008. The 30-share BSE Sensex jumped over 500 points to cross the psychological 15,000 mark after nearly 12 trading sessions. Realty and banking shares were star performers, while healthcare stocks lagged behind in today’s rally.

As per provisional data released by the stock exchanges after trading hours, foreign funds today, 2 September 2008, bought shares worth a net Rs 1,132.25 crore. Domestic funds purchased shares worth a net Rs 209.79 crore.

Oil prices tumbled extending the previous day's fall on initial signs that a weakened Hurricane Gustav spared major Gulf oil facilities. At 16:32 IST, crude oil was trading at $108.12 a barrel on the New York Mercantile Exchange (NYMEX).

European markets turned positive after a negative start. Key benchmark indices in UK, France and Germany were up 0.33% to 1.39%. Some of the Asian indices moved into positive terrain from negative terrain during the course of the day. Key benchmark indices in Hong Kong and Singapore were up 0.65% to 1.58%. However, indices in China, South Korea, Taiwan and Japan were down by 0.52% to 1.75%.

US markets were closed on Monday, 1 September 2008, for Labour Day holiday.

The BSE 30-share Sensex jumped 551.35 points or 3.80% to 15,049.86. The Sensex opened 110.93 points higher at 14,609.44 and thereafter traded in a narrow range of 14550 and 14600. But a sudden buying demand led by slide in crude oil prices in the second half of trading session catapulted the index 607.64 points up at the day's high of 15,106.15 in mid-afternoon. The index rose 44.7 points at the day's low of 14,543.21 it hit in early trade.

The S&P CNX Nifty was up 155.35 points or 3.57% to 4504. Nifty September 2008 futures were at 4517.05, at a premium of 13.05 points as compared to spot closing.

India's stock market remains closed tomorrow, 3 September 2008 on account of Ganesh Chaturthi.

The BSE Mid-Cap index rose 1.66% at 5,837.01 and the BSE Small-Cap index was up 1.32% at 6,982.39. Both the indices underperformed the Sensex.

The market breadth was strong on BSE with 1675 shares advancing as compared to 986 that declined. 72 shares remained unchanged.

The BSE Sensex is down 5237.13 points or 25.81% in calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6156.91 points or 29.03% away from its all-time high of 21,206.77 struck on 10 January 2008.

BSE clocked a turnover of Rs 6386 crore as against Rs 4,854.14 crore on Monday, 1 September 2008. NSE's futures & options (F&O) segment turnover was Rs 58,889.38 crore, higher than Rs 37,943.16 crore on Monday, 1 September 2008.

India’s largest state-run oil explorer by market capitalisation ONGC rose 6.97% to Rs 1101.55. Rating agency CRISIL has reaffirmed its rating on the Rs 50 crore non-convertible debenture issue of ONGC at 'AAA/Stable'. This follows the announcement by UK-based Imperial Energy Corporation Plc last week, giving its consent to its acquisition by ONGC through its subsidiary ONGC Videsh (OVL).

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 3.41% at Rs 2213.55. The firm said during trading hours on Monday, 1 September 2008, it has withdrawn an application it made to the central government to permit it to assign a part of its participating interest to its 100% subsidiaries.

India’s second largest software exporter by sales Infosys Technologies rose 3.02% at Rs 1775.30.

India’s largest commercial vehicle maker by sales Tata Motors fell 1.82% at Rs 429.85. Tata Motors, today, announced the terms of the proposed two rights issues aggregating around Rs 4200 crore. Shareholders would get one ordinary share for every six shares held. These shares will be issued at a price of Rs 340 each aggregating to Rs 2,186 crore.

Banking shares soared as sliding oil prices calmed inflation concerns. The BSE Bankex outperformed the Sensex, rising 6.06% to 7,446.52. Kotak Mahindra Bank (up 9.57% at Rs 649.95), State Bank of India (up 7.44% at Rs 1,521.35), and HDFC Bank (up 3.50% at Rs 1,341.45), soared. India's largest private sector bank by market capitalisation ICICI Bank rose 7.34% at Rs 713.30. The stock had earlier hit a low of Rs 668.80.

Realty shares spurted. The BSE Realty index outperformed the Sensex, rising 7.35% to 5,367.27. Orbit Corporation (up 16.80% at Rs 304.55), Housing Development & Infrastructure (up 16.27% at Rs 325.85), Indiabulls Real Estate (up 9.64% at Rs 322.35), Unitech (up 7.14% at Rs 169.60), and DLF (up 7.14% at Rs 529.85), spurted.

Airline stocks surged as crude oil prices declined sharply. Jet Airways (up 9.55% at Rs 532.90), Deccan Aviation (up 7.60% at Rs 89.20), and SpiceJet (up 6.63% at Rs 29.75), surged.

Healthcare stocks slipped. The BSE Healthcare index underperformed the Sensex, rising 0.64% to 4,338.23. Fortis Healthcare (down 1.83% at Rs 74.95), Ipca Laboratories (down 1.20% at Rs 565.15), Aurobindo Pharmaceuticals (down 0.90% at Rs 318.05), and Pfizer (down 0.87% at Rs 575.55), slipped.

India’s leading drug maker by sales Ranbaxy Laboratories fell 1.89% at Rs 490.35. The stock recovered from a low of Rs 447.90, it hit in early trade. The company lost a patent challenge against Pfizer over selling cholesterol drug, Lipitor in Denmark. The Ranbaxy stock declined 3.61% to Rs 499.80 yesterday, 1 September 2008, hit by the news.

Private sector oil explorer Cairn India slumped 5.76% at Rs 233.75. The firm benefits from high crude oil prices.

Newspaper publisher Deccan Chronicle Holdings extended gains for fifth consecutive session in a row. The stock rose 1.85% at Rs 129.50. It advanced 12.22% to Rs 127.15 on 1 September 2008 from Rs 113.30 on 26 August 2008.

Oilfield services provider Great Offshore soared 7.69% to Rs 561.55 after the company said it has forayed into port management and single point mooring operations through acquisition of 100% stake in two domestic companies for a consideration of Rs 160 crore.

State-run Union Bank of India rose 6.13% at Rs 154. The bank reportedly plans to raise Rs 1000 crore via debt in a month's time. The bank has headroom to raise up to Rs 3500 crore and it would try to raise the amount by the end of 2008, the reports added.

Scooter maker Kinetic Motor Company rose 3.98% at Rs 19.60. The company said on Monday, 1 September 2008, its board approved an investment of Rs 29.50 crore in Mahindra Two Wheelers, its joint venture with Mahindra & Mahindra. The company will also sub-license the 'Kinetic' brand to Mahindra Two Wheelers for 25 years, it added.

Resurgere Mines & Minerals India clocked the highest turnover of Rs 928.52 crore on BSE. Reliance Capital (Rs 292.40 crore), Reliance Industries (Rs 218.34 crore), ICICI Bank (Rs 209.24 crore), and Reliance Natural Resources (Rs 198.39 crore), were the other turnover toppers on BSE in that order.

Reliance Natural Resources reported the highest volume of 2.05 crore shares on BSE. Resurgere Mines & Minerals India (1.62 crore shares), IFCI (1.05 crore shares), Infrastructure Development Finance Company (90.39 lakh shares), and Marksans Pharma (85.23 lakh shares), were the other volume toppers on BSE in that order.