RIL, metal shares lead a near 6% Sensex surge

Unabated buying in blue chips throughout the day triggered a solid rally after China's massive economic stimulus plan raised expectations that authorities elsewhere would follow suit. The BSE Sensex vaulted 571.87 points or 5.74%. Buying was conspicuous across-the-board with all the sectoral indices on BSE logging gains. Reduction in India's economic growth forecast by global investment banking and securities firm Goldman Sachs failed to put brakes on the rally.

The BSE Sensex surged past the psychologically vital 10,000 mark and the S&P CNX Nifty raced past the psychological important 3,000 mark. Though the barometer index BSE Sensex had breached 10,000 level a number of times in intraday trade on Friday, 7 November 2008, it had ended below that level.

Goldman Sachs today, 10 November 2008, cut its economic growth for India to 6.7% from 7.5% in the year ending March 2009 due to the knock-on effects of the global financial crisis. It also cut its growth projection for the year ending March 2010 (FY 2010) to 5.8% from 7% on concerns negative global financial stocks will continue to slow activities across the board.

European shares rose as commodity stocks soared after China unveiled a nearly $600-billion economic stimulus plan to boost domestic demand. Key benchmark indices in UK, Germany and France were up by between 3.11% and 3.35%.

China's Shanghai Composite surged 7.27% after the government on Sunday, 9 November 2008, announced $586 billion in infrastructure and public welfare spending to slow the global financial crisis's impact on its economy, the world's fourth-largest. Other Asian markets, too, were firm. Key benchmark indices in Hong Kong, Japan, Singapore and South Korea were up by between 1.16% and 5.81%. However Taiwan's Taiwan Weighted was down 0.04% despite announcing 25 basis points cut in interest rates for the fourth time in two months after exports dropped in October 2008 by most in three years.

Trading in US index futures indicated the Dow will rise 204 points at the opening bell.

Meanwhile, economic officials from 20 leading nations called Sunday for increased government spending to boost the troubled global economy and said developing countries deserve a prominent role in talks to overhaul the world financial system. Each country will have to design its own stimulus package to meet its specific needs, said David McCormick, the US Treasury's undersecretary for international affairs.

US President-elect Barack Obama on Friday, 7 November 2008, vowed to act swiftly to address the global financial crisis.

The BSE Sensex surged 571.87 points or 5.74%, to close at 10,536.16. The Sensex jumped 606.29 points at the day's high of 10,570.58 in late trade. At the day's low of 10,095.90, the Sensex rose 131.61 points in early trade.

The S&P CNX Nifty advanced 175.25 points or 5.89%, to settle at 3148.25. Nifty November 2008 futures were at 3167, at a premium of 18.75 points as compared to spot. Turnover in NSE's futures & options (F&O) segment declined to Rs 30,290.49 crore from Rs 36,963.32 crore on Friday, 7 November 2008.

The barometer index BSE Sensex is down 9750.83 points or 48.06% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 10670.61 points or 50.31% below its all-time high of 21,206.77 struck on 10 January 2008.

The market breadth, indicating the overall health of the market, was strong on BSE with 1705 shares advancing as compared with 856 that declined. 70 shares remained unchanged.

The BSE Mid-Cap rose 3.57% to 3,475.09 and the BSE Small-Cap index advanced 2.25% to 3,988.03.

The total turnover on the BSE amounted to Rs 3689 crore as compared to Rs 3458.24 crore on Friday, 7 November 2008.

Among the 30-member Sensex pack, 28 advanced while the rest slipped.

The BSE Metal Index surged the most among the sectoral indices on BSE, rising 10.92% to 5,714.83, on hopes Chinese demand will rise after the stimulus package. India's top aluminium and copper producer by sales, Sterlite Industries jumped 14.16% to Rs 281 on 15.69 lakh shares. It was the top gainer from the Sensex pack.

Hindalco Industries (up 9.76% to Rs 66.35), National Aluminium Company (up 12.35% to Rs 186.20), Steel Authority of India (up 5.75% to Rs 89.30), and Hindustan Zinc (up 12.59% to Rs 355), surged.

World's sixth largest steel maker in terms of capacity Tata Steel galloped 12.78% to Rs 214.40, even as its subsidiary and Europe's second largest steelmaker by sales Corus, said on Friday, 7 November 2008, that it decided to extend the production cuts it announced last month beyond December 2008. Corus, in October this year, announced plans to reduce third quarter production by 1 million tonnes of crude steel, equivalent to 20% of its output.

Sesa Goa galloped 8.32% to Rs 86.55 on reports the government has altered the duty structure on iron ore exports, aiming to trim the tax burden on miners.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) advanced 7.16% to Rs 1305 on 16.66 lakh shares, ahead of a court verdict on the gas dispute with National Thermal Power Corporation on 11 November 2008. NTPC, India's biggest power generation firm by sales, rose 8.63% to Rs 164.25

India's top oil exploration company by net profit ONGC spurted 8.69% to Rs 806.05 after media reports quoted ONGC's chairman RS Sharma on Saturday, 8 November 2008, as saying that the company is not facing cash flow problems and is still looking for acquisition opportunities despite the global financial crisis. Sharma added that ONGC was looking at possible acquisitions in Africa and Latin America. The BSE Oil & Gas index shot up by 6.11% to 6,381.08.

Telecom pivotals gained on fresh buying. Reliance Communications, the country's second largest telecom services provider by sales rose 5.81% to Rs 241.40 whereas India's largest telecom services provider by market share Bharti Airtel spurted 10.85% to Rs 720.50.

Recent reports indicated government will allocate spectrum for next generation wireless networks to successful bidders by the end of January 2009 after holding an auction as planned earlier in the month.

L&T, Indian top engineering and construction firm by sales and Bharat Heavy Electricals, the country's largest power equipment maker by sales, led gains in the BSE Capital Goods index. It rose 6.33% to 8,118.43. Larsen & Toubro surged 5.17% to Rs 916 after its consortium with Malaysia's Scomi Engineering Bhd won an order worth Rs 2460 crore. Bharat Heavy Electricals gained 6.82% to Rs 1500.90

Suzlon Energy slipped 2.62% to Rs 68.85 after Morgan Stanley downgraded the stock while lowering the price target to Rs 52.45 from earlier Rs 450 citing slowdown in the global wind turbine market and the unresolved technological issues.

Banking shares edged higher boosted by the Reserve Bank of India's (RBI) announcement after market hours on Friday, 7 November 2008 to provide foreign exchange (forex) liquidity to banks that are facing liquidity crunch following the drying up of lines of credit globally. The Bankex gained 4.53% at 5,782.49.

ICICI Bank (up 8.99% to Rs 470), State Bank of India (up 5.26% to Rs 1314.90), and HDFC Bank (up 0.14% to Rs 1089.80) gained.

Axis Bank (up 4.48% to Rs 607), Kotak Mahindra Bank (up 5.03% to Rs 432.20), and Punjab National Bank (up 1.89% to Rs 505.50), advanced.

Auto stocks were mixed after latest data showed fall in sales in key segments in the month just gone by. The BSE Auto index was up 2.46% to 2,727.

India's top truck maker by sales Tata Motors vaulted 7.11% to Rs 170.20 on bargain hunting even as the company said it will shut down its commercial vehicle plant at Pune to avoid unnecessary inventory build-up. The stock was down 49.81% to Rs 158.90 in one month on 7 November 2008.

India's top tractor maker by sales Mahindra & Mahindra rose 5.29% to Rs 391.95. India's top small car maker by sales Maruti Suzuki India lost 0.60% to Rs 594.05 after moving in a band of Rs 583.30 and Rs 610 during the day.

According to the figures released by the Society of Indian Automobile Manufacturers (Siam), passenger car sales declined 6.6% to 98,900 units in October 2008 over October 2007. Sales of trucks and buses fell 35.9% to 28,027 units.

IT pivotals advanced, with the BSE IT index rising 5.44% to 2,815.88, as firm American depository receipts offset a strong rupee. India's third largest IT exporter by sales Satyam Computer Services rose 6.97% to Rs 297.10 as ADR jumped 10.64%. India's fourth largest IT exporter by sales Wipro rose 4.43% to Rs 272 as ADR advanced 6.51%, on the New York Stock Exchange on Friday, 7 November 2008.

India's second largest IT exporter by sales Infosys rose 6.16% to Rs 1346, off sharply from day's low of Rs 1237. Its ADR surged 7.97% on the New York Stock Exchange on Friday, 7 November 2008. India's largest IT exporter by sales Tata Consultancy Services rose 4.47% to Rs 548.

The partially convertible rupee was at 47.38/39 per dollar, stronger than Friday's close of 47.65/66 per dollar, as a rally in the stock market raised expectations of renewed capital inflows. A rise in rupee impacts margins at IT firms as they derive a lion's share from exports to the US.

Power stocks rose even as the Power secretary Anil Razdan today, 10 November 2008, said the government has deferred bidding for the 4,000 ultra mega power project at Tilaiya in eastern India by a month because of the credit crisis. Tata Power Company advanced 11.89% to Rs 825.05 and Reliance Power rose 4.27% to Rs 122.20. The BSE Power index gained 7.84% to 1,916.99.

Ranbaxy Laboratories (up 6.11% to Rs 231.75), DLF (up 6.05% to Rs 297.70), and Grasim (up 5.45% to Rs 1100), edged higher from the Sensex pack.

India's top cigarette company by sales, ITC slipped 1.55% to Rs 172.10 on profit booking after gaining 13.58% in the week ended 7 November 2008. It was the top loser from the Sensex pack.

Infrastructure stocks extended recent gains after the latest data showed rise in infrastructure output. Reliance Infrastructure (up 11.29% to Rs 624.25), GVK Power & Infrastructure (up 14.46% to Rs 20.82), GMR Infrastructure (up 17.41% to Rs 79.25), and Lanco Infrastructure (up 8.32% to Rs 183) surged.

IVRCL Infrastructures & Projects jumped 11.47% to Rs 155 on bagging a lift irrigation project worth Rs 893 crore.

India's infrastructure sector output grew 5.1% in September 2008 from a year earlier, well above 2.3% annual growth in August 2008, government data released during trading hours on Friday, 7 November 2008 showed.

State-run oil marketing firms slipped after an initial surge as crude oil prices rose. Bharat Petroleum Corporation (down 4.86% to Rs 316, off day's high of Rs 340), Hindustan Petroleum Corporation (down 1.48% to Rs 216, off day's high of Rs 225) slipped. Indian Oil Corporation was up marginally by 0.18% to Rs 368, off day's high of Rs 377.

State-run oil marketing firms suffer revenue loss on domestic sale of petrol, diesel, LPG and kerosene at a controlled price. US light crude for December 2008 delivery rose $2.46 or 4% to $63.50 a barrel today, 10 November 2008 fuelled by top exporter Saudi Arabia's plans to cut December supplies to Asia, a weaker dollar and hopes that global economies' plans to lift growth could avert recession.

Sugar shares gained after prices rose by Rs 10 a quintal to Rs 1,840 today, 10 November 2008 in the wholesale foodgrains market. Shree Renuka Sugars (up 9.61% to Rs 68.45), Bajaj Hindustan (up 6.01% to Rs 53.80), and Balrampur Chini Mills (up 4.34% to Rs 45.70), advanced

Among the side counters, Bombay Dyeing & Manufacturing Company (up 21.88% to Rs 227), Arvind Mills (up 21.24% to Rs 19.75), and Praj Industries (up 18.30% to Rs 85.35), surged.

Deccan Chronicle Holdings soared 20.44% to Rs 54.50 on reports the company had transferred franchise rights for the Indian Premier League's Hyderabad team to its newly formed unit.

Aurobindo Pharma surged 20.55% to Rs 136.40 on receiving final approval from the US Food & Drug Administration for manufacturing and marketing Sertraline hydrochloride in 20 miligram strength. The company made this announcement after trading hours on Friday, 7 November 2008.