Sensex jumps over 8%

The market ended the truncated week with smart gains. Buying frenzy in index pivotals, coupled with short covering of open positions ahead of January 2009 derivative contracts on Thursday (29 January 2009) triggered a solid rally in key benchmark indices in the first two session of the week. The market was shut on Monday (26 January 2009) on account of the Republic Day holiday.

Positive tidings from global markets also boosted sentiments. The US House of Representatives passed a $825 billion stimulus plan in President Barack Obama's first legislative achievement since taking office last week, with the debate now shifting to the Senate.

Inflation inched up this week, but that did not hurt investor sentiments. India's wholesale price index rose 5.64% in the 12 months to 17 January 2009, slightly above the previous week's annual rise of 5.6%, government data showed on 29 January 2009. The annual inflation rate was 4.45 % during the corresponding week of the previous year.

The BSE 30-share Sensex rose 749.89 points or 8.64% to 9,424.24 in the week ended 30 January 2009. The S&P CNX Nifty fell 103.45 points or 3.73% at 2874.80 in the week.

The BSE Mid-Cap index rose 91.28 points or 3.20% to 2,941.47 and the BSE Small-Cap index fell 83.51 points or 2.57% to 3,339.05 in the week.

The barometer index BSE Sensex is 11,782.53 points or 55.56% below its all-time high of 21,206.77 struck on 10 January 2008.

Frenzied buying in index pivotals, bouts of short covering ahead of the expiry of January 2009 series derivatives contracts on Thursday, 29 January 2009 and positive global cues powered a solid rally on the bourses on 27 January 2009. On that day, the BSE 30-share Sensex was up 329.73 points, or 3.8%, to 9,004.08. The 50-share S&P CNX Nifty rose 92.8 points or 3.46% to 2771.35.

Relentless buying in late trade coupled with short covering of open positions ahead of January 2009 derivative contracts expiry on 29 January 2009 triggered a solid rally in key benchmark indices, for the second straight day on 28 January 2009. The BSE 30-share Sensex was up 253.39 points, or 2.81%, to 9,257.47. The S&P CNX Nifty rose 78.15 points, or 2.82%, to 2,849.50.

Key benchmark indices ended slightly lower, snapping two-day gains, in what was a highly volatile trade on 29 January 2009. Subdued European indices and negative Dow futures played the spoilsport in second half of the day's trading session after logging steady gains in first half. On that day, the BSE 30-share Sensex was down 21.19 points, or 0.23%, to 9,236.28. The S&P CNX Nifty fell 25.55 points, or 0.9%, to 2,823.95.

Some heavy buying in frontline stocks on 30 January 2009 helped benchmarks close to day's high. Rally was led by metals, realty and oil & gas stocks, while pharma stocks had a subdued session. On that day, the BSE 30-share Sensex rose 187.96 points or 2.04% at 9,424.24. The S&P CNX Nifty rose 50.85 points or 1.80% at 2874.80.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 14.92% in the week, boosted by reports the Bombay High Court has in its interim order lifted stay on sale of RIL gas till the final order.

India's largest oil exploration firm by revenue ONGC rose 1.92% The board of the company approved the second phase of Mumbai High North (MHN) redevelopment project, which will yield an incremental crude oil production of 17.354 million metric tonne (MMT) and natural gas 2.987 billion cubic metres (BCM), aggregating to 20.34 million tonnes of oil equivalent, by March 2030.

Private sector oil explorer Cairn India rose 8.61%. The company reported a net profit of Rs 45.12 crore in Q4 December 2008 as compared to net loss of Rs 54.31 crore in Q4 December 2007. Sales surged to Rs 0.99 crore in Q4 December 2008 as against Rs 0.13 crore in Q4 December 2007. The company announced the results after market hours on Thursday, 29 January 2009. The net profit included one-time reversal of deferred tax liability amounting to Rs 123.60 crore, the company said in a statement.

India's largest engineering and construction firm, Larsen & Toubro rose 7.54% after its quarterly net profit more than trebled, boosted by a one-time gain. The profit included an extraordinary gain of Rs 916 crore from sale ready-mix concrete business.

India's largest electric equipment maker by sales Bharat Heavy Electricals was unchanged this week. the company missed estimates by reporting a marginal rise of 2.4% in net profit to Rs 790.56 crore on a 21.3% increase in sales to Rs 6022.25 crore in Q3 December 2008 over Q3 December 2007. The marginal rise in bottomline was due to increased raw material costs and higher wage revision.

India's largest pharma company by market capitalization Sun Pharmaceuticals Industries fell 0.22% in the week. The stock plunged on Friday (30 January 2009) after its US-based associate reported a 35.6% drop in net profit and cut its revenue forecast for fiscal 2009. Caraco Pharmaceutical Laboratories Inc., Sun's 70.21% owned US unit, reported a 35.6% decline in net profit to Rs $6.5 million on a 32% decline in sales to $55.7 million in Q3 December 2008 over Q3 December 2008. Caraco also cut its guidance for the fiscal year ended 2009 revenue from 25% growth to zero growth.

Software outsourcer Satyam Computer Services soared 39.12%. Some media reports suggested that seven companies have shown interest in a complete takeover of company. Suitors, include global and Indian IT firms, besides private equity funds.

Interest rate sensitive stocks rose on hopes of a further reduction in interest rates by the central bank. ICICI Bank (up 14.27%), State Bank of India (up 10.60%), and HDFC Bank (up 5.99%), were the gainers from the banking sector.

Gainers from the realty sector are, DLF (up 10.06%), Indiabulls Real Estate (up 22.86%), Housing Development & Infrastructure (up 7.40%) and Unitech (up 19.29%).

Auto sector pivotals that gained this week are, Maruti Suzuki (up 10.80%), Mahindra & Mahindra (up 13.56%), and Tata Motors (up 10.77%).

The Q3 December 2008 result season has come to an end. So far, aggregate results of 1548 companies showed a 22% decline in net profit on a 14.3% increase in net sales in the quarter ended December 2008 over the quarter ended December 2007.

FII outflow in January 2009 totaled Rs 4245.30 crore (till 29 January 2009). FIIs had pulled out a massive Rs 52,998.70 crore in calendar year 2008, as against an inflow of a huge Rs 71,486.50 crore in calendar year 2007.