Key benchmark indices extended early gains led by software stocks, after opening on an upbeat note tracking positive global cues. Asian markets which opened before Indian market, were firm.A cooling off of crude oil prices, which had soared to record high near $127 a barrel earlier in the week, also boosted the sentiment. The market breadth was strong.
At 11:28 IST, the 30-share BSE Sensex was up 269.92 points or 1.58% at 17,247.29. It opened 137.84 points higher at 17,116.19. The barometer index hit a high of 17,277.12 in mid-morning trade. At the day’s high, Sensex gained 298.77 points. Sensex rose 121.03 points at day’s low of 17,099.38 touched in early trade.
The broader based S&P CNX Nifty gained 74.80 points or 1.49% at 5,086.55
The market breadth was strong on BSE with 1605 shares advancing as compared to 606 that declined. 65 remained unchanged.
The BSE Mid-Cap index rose 1.15% to 7,070.22 while the BSE Small-Cap index gained 1.27% to 8,541.47. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2019 crore at 11:30 IST as compared to Rs 943 crore by 10:30 IST
Among the 30-member Sensex pack, 25 advanced while the rest slipped.
IT pivotals advanced on fresh buying as the rupee held near 13-month lows against the dollar. India’s second largest software services exporter Infosys Technologies jumped 4.04% to Rs 1901 on 3.45 lakh shares. It was the top gainer from Sensex pack. Infosys has 7.63% weightage in Sensex and 3.46% weightage in Nifty.
Other IT pivotals, Wipro (up 2.05% to Rs 513.90), and TCS (up 1.90% to Rs 988.35), gained. The partially convertible rupee was at 42.38/39 per dollar, stronger than yesterday's close of 42.45/46. A depreciating rupee augurs well for IT companies as they derive over 50% of their revenues from exports to US.
However India’s fourth largest software services exporter Satyam Computer Services, which had slumped to as low as Rs 465.10 in early trade, was now down 1.84% to Rs 491.90. The counter clocked high volumes of 24.62 lakh shares. It was the top loser from Sensex pack. As per reports Satyam Computer Services could have to pay penalties in excess of $1 billion if it loses a case to one of its former customers, Upaid Systems, in the US federal Court in Texas.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) advanced 1.86% to Rs 2577 on 1.86 lakh shares.
Banking shares gained on fresh buying. India’s largest private sector bank in terms of net profit ICICI Bank vaulted 3.77% to Rs 930.05. State Bank of India (up 1.56% to Rs 1687), and HDFC Bank (up 0.44% to Rs 1471.45), also logged gains.
India’s largest private sector engineering company Larsen & Toubro gained 3.18% to Rs 2920.05 after French cement producer Lafarge said on Wednesday it had acquired L&T Concrete at an enterprise value of 226 million euros ($349.5 million). The deal involves L&T’s 66 concrete plants across India with an estimated volume of 41 lakh cubic meters in 2008.
Reliance Communications (up 2.71% to Rs 574.45), and DLF (up 2.10% to Rs 636.05), edged higher from Sensex pack.
India’s top drug maker in terms of sales, Ranbaxy Laboratories was down 0.55% to Rs 492.65. The company has received approval from the US Food and Drug Administration for muscle relaxant cyclobenzaprine hydrochloride tablets.
Tata Motors (down 0.96% to Rs 667), and ITC (down 0.80% to Rs 846), edged lower from Sensex pack.
Recently listed Aishwarya Telecom slipped 1.41% to Rs 122.70, after hitting day’s high of Rs 135.50. The counter clocked high volumes of 2.78 crore shares.
Syndicate Bank rose 1.2% to Rs 75.95 after reporting 21% growth in net profit to Rs 126.26 crore on 22.85% growth in operating income to Rs 2134 crore in Q4 March 2008 over Q4 March 2007. The bank announced the result after market hours on 14 May 2008.
Power Finance Corporation gained 0.67% to Rs 157 after the company said it has signed a loan agreement with Exim Bank of US for $800 million under the latter's India infrastructure facility.
Mercator Lines soared 4.28% to Rs 104.80 after posting 351.7% surge in net profit to Rs 74.04 crore on 31% growth in net sales to Rs 265.67 in Q4 March 2008 over Q4 March 2007. The company announced the results after trading hours on Wednesday, 14 May 2008.
Among the side counters, Jhagadia Copper (up 20% to Rs 12.14), Indag Rubber (up 10.33% to Rs 76.90), and Alfa Transformers (up 10% to Rs 62), surged
The South-West monsoon is likely to hit Kerala on 29 May 2008, the Indian Meteorological Department (IMD), yesterday, 14 May 2008, said. Initial forecast by the Indian Meteorological Department (IMD) suggest that the crucial South-West monsoon (June-September) this year will be near normal. Now IMD's second forecast in June 2008 which may also indicate spatial rainfall distribution in the main sowing season of July 2008, is crucial.
A well distributed monsoon will bolster food production which in turn will help rein in inflation which is currently ruling at a three-year high. Surging global food prices has been a key driver of soaring inflation in India in recent weeks. Agricultural output in India depends on good rains.
Most Asian markets were trading higher today, 15 May 2008, led by technology companies, after Sony and NEC Electronics forecast higher profit than expected. Shanghai Composite (up 0.54% at 3,677.07), Nikkei 225 Average (up 1.41% at 14,318.07), Straits Times (up 0.43% at 3,212.15), Seoul Composite (up 1.96% at 1,879.80), Taiwan Weighted (up 1.28% at 9,134.03) edged higher.
However Hong Kong’s Hang Seng index slipped 0.50% at 25,404.76.
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