Samvat 2065 kicks off on a firm note as Sensex vaults nearly 500 points

Firm global markets and relaxation of creeping acquisition norms for promoters boosted the battered bourses on the special one-hour Muhurat trading session which was held today, 28 October 2008, to mark the strong beginning of the Samvat year 2065. The BSE Sensex jumped 498.52 points, or 5.85%, ending just above the 9,000 mark.

The gains were led by a host of index stocks with heavyweight Reliance Industries climbing more than 7%. Tata Motors, Mahindra & Mahindra, Hindalco Industries, Reliance Infrastructure and Jaiprakash Associates rose more than 10% each.

In a bid to salvage the sinking stock market, Securities & Exchange Board of India (Sebi) on Monday, 27 October 2008, relaxed creeping acquisition rules for promoters. Promoters can now raise stake by 5% a year through the creeping acquisition route, till their holding reaches 75%. Earlier, promoters were allowed to raise 5% a year through the creeping acquisition route only till they reached 55% stake. Sebi made the announcement after trading hours on Monday.

The BSE 30-share Sensex rose 498.52 points, or 5.85%, to 9,008.08. The Sensex jumped 547.41 points at the day’s high of 9056.97 in early trade. At the day’s low of 8,909.34, the Sensex rose 399.78 points.

The S&P CNX Nifty was up 167.70 points, or 6.64%, to 2,691.90.

The BSE Mid-Cap index rose 6.45% to 3,157.46 while BSE Small-Cap index jumped 6.69% to 3,711.61. Both the indices outperformed the Sensex.

The BSE clocked a turnover of Rs 675 crore. The market breadth, indicating the overall health of the market, was strong with 1860 shares rising compared with 437 declining. A total of 61 shares remained unchanged.

India’s largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) jumped 7.27% to Rs 1,152.85.

All the stocks from the sensex pack were in the green. Mahindra & Mahindra (up 12.68% to Rs 279.45), Jaiprakash Associates (up 11.52% to Rs 59.55), Tata Motors (up 10.82% to Rs 155.20), Tata Consultancy Services (up 8.75% to Rs 540.50) were the major gainers from the Sensex pack.

Most realty stocks rose on hopes a softer interest rate regime will spur demand for residential properties. The BSE Realty index rose 10.29% and was the major gainer from the sectoral indices on BSE. Realty majors, Indiabulls Real Estate, DLF and Unitech rose between 6.55% to 16.86%.

The BSE Capital Goods index rose 7.84% and was the second biggest gainer from the sectoral indices on BSE. Larsen & Toubro and Bharat Heavy Electricals, rose between 6.92% to 7.07%.

Suzlon Energy rose 11.29% after suspending a Rs 1800-crore rights share issue due to falling markets.

The BSE Power index jumped 7.64% and was the third biggest gainer from the sectoral indices on BSE. NTPC, Reliance Infrastructure, Reliance Power, Power Grid Corporation of India were up by between 5.86% to 10.44%.

Tata Power Company gained 3.25%, boosted by better-than-expected Q2 results.

The BSE Metal index rose 7.28% and was the fourth biggest gainer from the sectoral indices on BSE. Tata Steel, Hindalco Industries, Sterlite Industries, Steel Authority of India, National aluminum Company, Hindustan Zinc rose by between 4.26% to 11.26%.

Godrej Industries fell 0.23% on reporting a net loss of Rs 9.09 crore in Q2 September 2008 as against net profit of Rs 22.55 crore in Q2 September 2007. Sales rose 43.42% to Rs 254.19 crore in Q2 September 2008 over Q2 September 2007.

Alok Industries surged 10.06% after the board approved raising upto Rs 300 crore through a rights issue of shares.

Global stocks rose solidly on Tuesday 28 Ocotber 2008 as investors indulged in a burst of bargain hunting after recent slump. US markets opened firm as investors snapped up beaten-down shares and bet that credit markets would see a further thaw, overshadowing worries about the global recession. The Dow Jones Industrial Average, the Nasdaq Composite index and the S&P 500 were up by between 2.99% to 3.02%.

European shares broke a five-day losing streak, helped by a jump in shares of heavyweight oil group BP after its third-quarter earnings beat forecasts. Key benchmark indices in France, Germany and UK were up by between 2.82% to 8.02%.

In Asia, the Nikkei index finished 6.4% higher after earlier dropping to its lowest since 1982. Other Asian markets ended higher today, 28 October 2008. Key benchmark indices in China, Hong Kong, South Korea, and Taiwan were up by between 0.76% to 14.35%.

Iceland raised interest rates by 6% percentage points to 18% on Tuesday, taking the opposite tack to most countries fighting a global financial crisis which the Bank of England said could cost $2.8 trillion. The United States is expected on Wednesday 28 October 2008 to cut interest rates, with Europe and Britain forecast to follow next week, to try to head off the prospect of a deep recession. Other countries continued to bolster their banking sectors, hit by holding assets linked to bad mortgage debts in the United States, and shore up tumbling stock markets.

Crude oil rose from a 17-month low as stocks in Europe and Asia rebounded and Organisation of Petroleum Exporting countries (OPEC) ministers said the group may meet again before December 2008, raising speculation of deeper cuts in production. Crude oil for December delivery climbed as much as $1.67, or 2.6%, to $64.89 a barrel on the New York Mercantile Exchange today.