Biggest single-day gain in Sensex since 31 October 2008

Key benchmark indices settled near day's high, striking 7-month highs, mirroring strong global cues. The barometer index BSE Sensex gained 731.50 points, or 6.41%, outperforming its global peers. Strong domestic and global economic data and aggressive build-up of fresh derivatives positions in May 2009 series triggered a solid rally on the bourses today, 4 May 2009. The barometer index BSE Sensex surpassed the psychological 12,000 level.

Activity in Indian factories expanded for the first time in five months in April 2009 as a swelling orders pipeline pointed to a tentative recovery, a survey showed on Monday, 4 May 2009. The ABN AMRO Bank purchasing managers' index (PMI) based on a survey of 500 companies, rose to 53.3 in April 2009 from 49.5 in March 2009, climbing above the threshold of 50 that separates expansion from contraction. The latest reading is the highest in seven months and it has steadily risen after hitting a trough of 44.4 in December 20089.

Manufacturing makes up about 16% of India's gross domestic product. The boost in manufacturing index came from a surge in new orders. The new orders index rose to 54.9 in April 2009 from 49.5 in March 2009. Several research notes in the past few days have pointed to improvement in economic activity in the months ahead.

Financial stocks led gains in European markets today, 4 May 2009, on improved economic data in the euro-zone. Germany's DAX gained 1.80% and France's CAC 40 index rose 1.16%. The stock market in UK was shut for a public holiday

The euro-zone manufacturing purchasing managers' index came in at 36.8 in April 2009, above 33.9 in March 2009. Stocks also rose as the US said swine flu has milder symptoms than the world's previous influenza outbreaks.

Asian stocks rose, led by technology and finance companies, as manufacturing in China expanded for the first time in nine months and regional leaders pledged to start a $120 billion foreign-currency reserve pool. Key benchmark indices in China, Hong Kong, Singapore, Taiwan, South Korea gained by between 2.09% and 5.64%. Japan's stock market is closed for a three-day holiday.

A China purchasing manager's index rose to a seasonally adjusted 53.5 in April 2009 from 52.4 in March 2009, according to a statement from the Federation of Logistics and Purchasing on 1 May 2009. A reading over 50 indicates an expansion of activity in the manufacturing sector while one below 50 suggests contraction.

The Association of Southeast Asian Nations, together with Japan, China and South Korea, said they will start a $120 billion foreign-currency reserve pool by the end of the year to help revive investor confidence. The pledge was agreed upon at a weekend meeting in Bali, Indonesia.

Trading in US index futures showed the Dow could rise 50 points at the opening bell on Monday, 4 May 2009. US stocks gained on Friday, 1 May 2009 after better-than-expected reports on consumer confidence and manufacturing. The Dow Jones Industrial Average gained 44.29 points, or 0.54%, to 8,212.41. The Standard & Poor's 500 Index rose 4.71 points, or 0.54%, to 877.52 and the Nasdaq Composite index rose 1.90 points, or 0.11%, to 1,719.20.

US consumer sentiment rose in April 2009, according to a survey released on Friday. The consumer sentiment index rose to 65.1 in April 2009 from 57.3 in March 2009.

Another data showed that the pace of decline in the US manufacturing sector slowed in April 2009. The closely watched ISM purchasing managers' index rose to 40.1% in April 2009 from 36.3% in March 2009. It was the highest reading since September 2008, when the global financial crisis intensified.

Bank of America and Citigroup are working on plan to raise more than $10 billion each in capital after preliminary findings of the US stress test on banks, according to media reports. However, the two banks as well as two other lenders, will attempt to persuade the Treasury and the Federal Reserve that the findings of the stress tests into their financial health were too pessimistic, the Financial Times reported on Monday, citing people close to the situation.

The results of the government's Supervisory Capital Assessment Program, otherwise known as the "stress test," imposed on 19 major banks will be released Thursday,7 May 2009. The Federal Reserve has already said that most US banking organizations had enough capital.

Closer home, India's exports declined by 33% to $11.5 billion while imports dipped 34% to $15.5 billion in March 2009 over March 2008, provisional data released on Friday, 1 May 2009 showed. Exports registered its sixth straight fall in March 2009 on global economic slump.

The BSE 30-share Sensex jumped 731.50 points, or 6.41%, to 12,134.75, registering its biggest single day point gain since 31 October 2008. The Sensex opened 231.99 points higher at 11,635.24, which was also its day's low. At the day's high of 12,160.32, the Sensex gained 757.07 points in late trade, its highest level since 7 October 2008.

The BSE Sensex has advanced 2,487.44 points or 25.78% in the calendar year 2009 from its close of 9647.31 on 31 December 2009.

Coming back to today's trade, the S&P CNX Nifty advanced 180.05 points, or 5.18%, to 3,654. Nifty May 2009 futures were at 3659.90, at a premium of 5.90 points as compared to the spot closing. Turnover in NSE's futures & options (F&O) segment was Rs 46,344.80 crore much lower than Rs 80,063.40 crore on Wednesday, 29 April 2009.

Signs of an improvement in the Indian economy triggered a solid rally on the domestic bourses in the past few days. The rally was also a part of a sharp surge in global equities triggered by hopes the worst of the global economic recession may be over. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has jumped 3974.35 points or 48.70%

Foreign institutional investors (FIIs) played a key role in the recent rally. FII inflow in April 2009 totaled Rs 7,039.90 crore, with their inflow in calendar year 2009 totaling Rs 368.10 crore, till 28 April 2009.

The BSE Mid-Cap index gained 3.91% to 3,651.29 and the BSE Small-Cap indices rose 3.57% to 4,081.70. Both these indices, however, underperformed the Sensex

The market breadth, indicating the overall health of the market, was strong. On BSE, 1774 shares rose as compared with 782 that declined. A total of 66 shares remained unchanged.

BSE clocked a turnover of Rs 4726 crore as compared to Rs 4,168.12 crore on Wednesday, 29 April 2009

The BSE IT index (up 8.40%), the BSE Bankex (up 7.89%), and the BSE Metal index (up 8.77%), outperformed the Sensex.

The BSE TECk index (up 5.86%), the BSE Healthcare index (up 1.49%), the BSE FMCG index (up 5.43%), the BSE Consumer Durables index (up 4.23%), the BSE PSU index (up 2.99%), the BSE Capital Goods index (up 5.88%), the BSE Realty index (up 4.96%), the BSE Auto index (up 4.62%), the BSE Power index (up 3.31%), the BSE Oil & Gas index (up 3.87%), underperfomed the Sensex.

All the 30 members from the Sensex pack logged gains. ITC (up 8.41%), Reliance Infrastructure (up 7.05%), and Jaiprakash Associates (up 5.55%), edged higher from the Sense pack.

Metal shares were the star gainers of the day's trading session on rise in commodity prices on the London Metal Exchange. India's largest aluminium and copper maker by sales Sterlite Industries galloped 17.05% to Rs 478.80 on 19.36 lakh shares. It was the top gainer from the Sensex pack.

India's largest private sector steel maker by sales Tata Steel jumped 10.63% to Rs 263.35 on reports the company may accept an invitation from the Liberian government to rebid for a $1.6 billion iron ore mine from which is was initially barred.

Sesa Goa (up 8.04%), Steel Authority of India (up 7.55%), Hindustan Zinc (up 9.81%), and Hindalco Industries (up 14.48%), surged

Banking shares gained on hopes lower interest rates may boost lending growth. ICICI Bank (up 10.94%), and HDFC Bank (up 7.82%), gained.

India's largest bank in terms of assets and branch network State Bank of India (SBI) shot up 6.68% to Rs 1363. The bank reduced deposit rates by 25 basis points on all tenures with effect from today, 4 May 2009, which will help reduce cost of funds.

India's largest mortgage finance firm by total income HDFC vaulted 13.49% to Rs 1965 as Q4 March 2009 results beat market expectations. The firm during market hours today, 4 May 2009 reported a 4.52% fall in net profit to Rs 733.37 crore on 36.01% rise in total income to Rs 2317.67 crore in Q4 March 2009 over Q4 March 2008.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) gained 3.90% to Rs 1873 on 13.75 lakh shares. After market hours on Wednesday, 29 April 2009, RIL acquired Chevron Corporation's 5% stake in its unit Reliance Petroleum (RPL), hiking its stake to 75.38% in the refining unit.

RIL paid Rs 60 per share aggregating to Rs 1,350 crore, the same price at which the US firm had bought the stake in RPL in April 2006. According to an agreement signed at the time, Chevron had the right to increase its stake in RPL to 29% within three months of commissioning of the company's only-for-exports refinery at Jamnagar or exit the company completely. RPL commissioned the 5,80,000 barrels per day refinery in Jamnagar in December 2008.

India's largest oil exploration firm by sales ONGC gained 3.06% to Rs 892 and India's largest private sector oil exploration firm by sales Cairn India surged 8.74% to Rs 201.60 after US crude futures jumped $2.08 to at $53.20 a barrel, a four-week high on Friday, 1 May 2009, on support from improved US consumer confidence. Rising crude oil prices will boost the realization from crude sales.

However, shares of oil marketing firms HPCL (down 2.09%), BPCL (down 0.61%), fell. State-run oil marketing firms suffer revenue loss on domestic sale of petrol, diesel, LPG and kerosene at a controlled price. But IOC rose 1.04% to Rs 448.15, off day's low of Rs 430

Auto shares advanced as auto sales rose in April 2009. India's largest tractor maker by sales Mahindra & Mahindra shot up 10.44% to Rs 537 after the company said total sales of vehicles rose 14.85% to 23,004 units in April 2009 over in April 2008.

India's largest small car maker by sales Maruti Suzuki India gained 2.86% to Rs 839 after vehicle sales rose about 15% to 71,748 units in April 2009 over April 2008. The company unveiled the vehicle sales figures on 1 May 2009.

India's country's largest commercial vehicle maker by sales Tata Motors rose 6.17% to Rs 257.30. The company said its total sales declined 2% to 37,518 units in April 2009 over April 2008. Tata Motors however managed a marginal growth in domestic sales by registering a 1% increase in sales at 36,275 units in April 2009 over April 2008.

TVS Motor Company surged 5.44% to Rs 34.90 after two-wheeler sales rose 3% to 1,13,119 units in April 2009 over April 2008.

Hero Honda Motors rose 1.08% to Rs 1197 after its sales rose 29% at 3,70,575 units in April 2009 over April 2008

Outsourcing focussed IT stocks rose on speculation US government efforts to fix the banking system and revive the economy will pull the nation out of a recession. US is the biggest market for Indian IT firms.

India's largest software services exporter by sales TCS gained 6.21% and India's second largest software services exporter by sales Infosys advanced 8.21%

India's fourth largest software services exporter by sales HCL Technologies jumped 18.98% after the company signed a five-year, multi-million dollar outsourcing deal with US-based supply chain services firm UTi Worldwide to provide applications support and maintenance and infrastructure management services.

India's third largest software services exporter by sales Wipro advanced 10.74% to Rs 366 on reports the company is keen on making acquisitions in continental Europe.

IT stocks shrugged off a firm rupee. The rupee rose today, 4 May 2009 on hopes rise in stock markets may attract more capital inflows. The partially convertible rupee was at 49.61/62 per dollar, stronger than Wednesday's close of 50.04/05. The currency market was closed on Thursday and Friday for local holidays.

A stronger rupee affects operating profit of IT firms negatively as they earn most of their revenues from exports.

Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. Most of the realty deals including sale of commercial property and housing sales is driven by finance.

India's largest realty developer by sales DLF rose 1.36% to Rs 234.05. The company on 1 May 2009 reported a 95.32% fall in net profit to Rs 29.86 crore on 96.56% fall in net sales to Rs 55.53 crore in Q4 March 2009 over Q4 March 2008.

Unitech (up 10.77%), HDIL (up 6.47%), and Indiabulls Real Estate (up 2.36%), advanced.

India's second largest cellular services provider by sales Reliance Communication jumped 5.77% to Rs 227.35. Consolidated net profit as per Indian GAAP declined 3% to Rs 1454.31 crore on 10% growth in sales to Rs 5797.77 crore in Q4 March 2009 over Q4 March 2008. The company unveiled the results on Thursday, 30 April 2009

India's biggest cellular services provider by sales Bharti Airtel rose 0.63% to Rs 754 after the company set up a venture with Alcatel-Lucent SA to manage its carrier's fixed-line and broadband Internet businesses. Alcatel-Lucent will hold a 74% stake in the venture with the Bhart Airtel owning the remainder. The stock had hit a day's high of Rs 792 in intra-day trade.

Reliance Industries topped turnover charts on BSE notching a turnover of Rs 258.18 crore, followed by ICICI Bank (252.36 crore), Educomp Solutions (153.13 crore), Reliance Capital (151.81 crore) and Unitech (151.49 crore).

Cals Refinery led the volume charts on BSE clocking volume of 7.13 crore shares followed by Unitech (3.14 crore shares), Reliance Natural Resources (1.21 crore shares), IDFC (99.15 lakh shares) and Suzlon Energy (92.69 lakh shares).

Among the side counters, Banswara Syntex (up 20%), Infotech Enterprises (up 19.98%), Mastek (up 19.98%), Surya Pharma (up 19.97%), Ruchi Soya (up 19.96%), Dabur Pharma (up 19.96%), GEE (up 19.92%), Mazda (up 19.88%), and RS Software (up 19.96%), jumped.

GHCL jumped 7.31% to Rs 31.55 after the company reported 115.10% surge in net profit to Rs 25.25 crore in Q4 March 2009 over Q4 March 2008.

ABB lost 2.97% to Rs 473 after the company's net profit slumped 33.4% to Rs 78.37 crore in Q1 March 2009 over Q1 March 2008.

Kesoram Industries soared 14.76% to Rs 176.90 after its net profit rose 51% to Rs 159 crore in Q4 March 2009 over Q4 March 2008.

Siemens jumped 9.31% to Rs 337 after net profit soared 13,485.50% to Rs 225.52 crore on 10.60% rise in net sales to Rs 2,382.96 crore in Q2 March 2009 over Q2 March 2008.

CESC surged 6.73% to Rs 249 after net profit rose 15.50% to Rs 410 crore on 9% rise in net sales to Rs 3,098 crore in the year ended March 2009 over the year ended March 2008.

In the derivatives segment, rollover of stock futures from April 2009 series to May 2009 series stood at 74%, higher than 70% in the previous series. Rollover of Nifty positions from April 2009 series to May 2009 series was 76% as compared with 77% seen in the previous series.

Due to rise in the prices of food and manufactured goods, inflation rate rose for a second straight week, government data showed on Thursday, 28 April 2009. Annual inflation rose to 0.57% in the week ended 18 April 2009 from 0.26% in the previous week.

The new government, which is likely to be in place this month, should take more fiscal measures to boost the economy rather than phasing out tax exemptions to businesses, industry body Federation of Indian Chambers of Commerce and Industry (FICCI) said during the weekend. The new government should not only continue, strengthen fiscal incentives and introduce new ones as and when economically warranted, especially for sunrise industries, and undertakings engaged in infrastructure and other crucial sectors, FICCI said.