Sensex regains 10,000

Data showing rise in infrastructure sector output and positive global cues boosted the domestic bourses, with the BSE Sensex regaining the psychological 10,000 level just a day after it had fallen below that mark on Thursday, 6 November 2008. The Sensex provisionally rose 316.20 points or 3.25%.

Metal stocks rose on recovery in metal prices on the London Metal Exchange. PSU banks rose on cut in lending rates. IT stocks rose as a weak rupee offset fall in American depository receipts overnight.

Data showing rise in infrastructure output offset concerns of economic slowdown triggered by productions cuts announced by commercial vehicle makers in the last two days and steel maker JSW Steel today and reduction in gross domestic product (GDP) forecast for 2009 by the International Monetary Fund. 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 earlier in the day showed.

The International Monetary Fund, or IMF, on Thursday, 6 November 2008, predicted lower growth in India and economic contractions in the US, Japan and euro region next year, calling for further interest rate cuts and fiscal stimulus. Its estimate for India's growth in 2009 is now 6.3%, 0.6% lower than its earlier estimate of 6.9% made just a month ago. Its estimate for the country's growth in 2008 is down 0.1% to 7.8%.

European shares edged higher as commodities stocks tracked stronger crude and metals prices and banking shares gained following interest rate cuts in the previous session. Key benchmark indices in France, Germany and UK were up by between 0.13% to 0.94%. The Bank of England slashed the key interest rate by a steep 1.5% on Thursday, 6 November 2008 and on the same day the European Central Bank cut the key rate by 50 basis points.

Bargain hunting following a 25 basis points rate cut by the central bank in South Korea on Friday, 7 November 2008, and rate cut in Europe triggered a recovery in Asian stocks from an intra-day fall. South Korea's Kospi was up almost 4% boosted by the rate cut. Key benchmark indices in China, Singapore, Hong Kong, Taiwan, rose by between 1.034% to 3.29%. Japan's Nikkei average was down 3.55% with bargain hunting helping the benchmark pared losses that had taken it down over 6% earlier in the day. The rate cut in Europe were announced after Asian markets had closed on Thursday, 6 November 2008.

Trading in US index futures indicated the Dow will rise 120 points at the opening bell.

As per the provisional figure the 30-share BSE Sensex was up 316.20 points or 3.25% at 10,050.42. The index rose 331.15 points at the day's high of 10,065.37 in late trade. The index fell 121 points at the day's low of 9,631.59 hit in early trade.

The 50-unit S&P Nifty was up 109.40 points or 3.78% to 3,002.05 as per the provisional closing.

The BSE clocked a turnover of Rs 3447 crore today as compared to a turnover of Rs 4010.92 crore on 6 November 2008

The BSE Mid-cap index was up 1.43% to 3,365.81, while the BSE Small-cap index was up 0.71% to 3,907.97. Both the indices underperformed the sensex.

The market breadth turned positive later in the day from earlier weak breadth. On BSE, 1101 stocks declined while 1440 gained. 74 stocks remained unchanged.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries rose 4.05% to Rs 1,219 despite reports it may delay commercial operations of its Jamnagar refinery to early 2009 as it finishes the final testing of the facility.

Reliance Communications (up 6.8% to Rs 230.90), Jaiprakash Associates (up 6.15% to Rs 88.95) and Tata Power Company (up 4.11% to Rs 748.10) were the major gainers from the Sensex pack.

India’s largest tractor maker by sales Mahindra & Mahindra fell 0.58% and was the lone loser from the Sensex pack.

India's largest commercial vehicle maker by sales Tata Motors recovered from the day's low. The stock was down 0.16% to Rs 158.90, off the day's low of Rs 148. Its ADR lost 3.81% overnight after the company on 6 November 2008 had announced closing of the commercial vehicle plant at Jamshedpur owing to a demand slump.

Power stocks gained. NTPC, Tata Power Company, Reliance Infrastructure, Reliance Power, Power Grid Corporation of India rose by between 4.11% to 12.72%.

Metal stocks gained tracking recovery in metal prices on the London Metal Exchange. Tata Steel, Sterlite Industries, Steel Authority of India, Hindustan Zinc, National Aluminum Company rose by between 2.82% to 12.82%.

India’s largest aluminum maker by sales, Hindalco Industries spurted 8.38% on reports the company has cleared the bridge loan taken to acquire Canada's Novelis.

India’s largest state-run oil explorer by market capitalization ONGC gained 1.92% on reports Russia has allowed the company to purchase London-listed Imperial Energy.

India's largest drug maker by sales Ranbaxy Laboratories rose 0.95% recovering from earlier fall as Daiichi Sankyo Co, Japan's No. 3 drugmaker, said on Friday it had completed the takeover of Ranbaxy Laboratories, buying a 63.9 % stake for Rs 19980 crore ($4.20 billion). Daiichi Sankyo reached an agreement with the generic drugmaker in June 2008 to buy a stake of at least 50.1% through a tender offer, the private placement of new shares and the purchase of outstanding shares from the founding family.

Most of the IT stocks spurted after weak start as a weak rupee offset slide in weak American depository receipts overnight caused by worries the US outsourcing business will be curtailed and the direct impact will be on IT sector after Barack Obama won the US presidential election early this week. India's third largest IT exporter by sales Satyam Computer Services rose 3.16% to Rs 277.75, off the day’s low of Rs 263. Its American depository receipt (ADR) fell 7.19% overnight.

India's second largest IT exporter by sales Infosys rose 1.15% to Rs 1262.50, off the day’s low of Rs 1205.25 even as ADR fell 10.47%. India's fourth largest IT exporter by sales Wipro rose 2.9% to Rs 260.45 even as ADR slipped 8.56%. The stock had slipped 6.31% in previous trading session. India's largest IT exporter by sales Tata Consultancy Services rose 4.87% to Rs 524.55 off day’s low of Rs 485.10. The stock had slipped 1.08% in previous trading session.

Obama has strong reservations on outsourcing from the US. He had made many statements during his election speeches that he would discourage outsourcing from the US when he comes into power.

Meanwhile, the Indian rupee weakened on Friday as expectations of further foreign investor outflows from the stock market weighed on sentiment. The partially convertible rupee was at 47.77/78 per dollar, 0.1 % weaker than 47.66/69 at close on Thursday.

PSU banks rose after top state-owned banks on Thursday, 6 November 2008, cut their prime lending rates (PLR). Bank of Baroda, Allahabad Bank, Central Bank of India, Oriental Bank of Commerce and Corporation Bank rose by between 2.09% to 6.21%. All of them reduced lending rates by 75 bps to 13.25% with effect from 10 November 2008.

India's largest commercial bank State Bank of India (SBI) rose 2.79% on a decision to cut the PLR by 75 basis points (bps) with effect from 10 November 2008 and deposit rates by 25 to 50 bps across all maturities effective 1 December 2008.

India's largest private sector bank by net profit ICICI Bank fell 0.67% as American depository receipt (ADR) lost 2.68% overnight. ICICI Bank's chief executive K.V. Kamath said on 3 November 2008, the bank will review interest rates in the next few days.

India's second largest private sector bank by net profit HDFC Bank rose 2.64% to Rs 1,088.55 off day’s low of Rs 1,032 even as ADR slumped 4.81% on Thursday.

India's largest home loan lender by operating income HDFC jumped 2.64%. HDFC is yet to revise its rates, since the firm's borrowing costs have not come down.

The Reserve Bank of India (RBI) on Saturday, 1 November 2008, unexpectedly cut its main short-term lending rate viz. the repo rate to ease a growing cash squeeze, spur faltering economic growth and fend off damage from the global financial crisis.

Meanwhile, inflation based on the wholesale price index rose 10.72% in the year through 25 October 2008, higher than previous week’s 10.68% rise.

Shares of fertiliser makers extended gains after the fertiliser minister said on Thursday, 6 November 2008, he expected gas supply to fertiliser units to more than triple by 2011/12 from current levels. Rashtriya Chemicals , Tata Chemicals, Chambal Fertilisers & Chemicals, GNFC, Nagarjuna Fertilizers & Chemicals and National Fertilizers were up by 2% to 5%.

Roman Tarmat rose 8.51%, on bagging runways upgradation order.