Frenzied buying in battered index pivotals along with short
covering triggered a solid rally in the key benchmark indices
today, 19 September 2008. The BSE 30-share Sensex was up 764.28
points, as per provisional closing. Markets across the globe
rallied on hopes of a more comprehensive US government approach in
taming the global credit crisis.
Strong US futures markets further boosted the domestic bourses in
late trade. Realty, banking and IT stocks were at the forefront of
the rally. Index heavyweight Reliance Industries (RIL) surged over
6%. The market breadth was strong. 29 from the 30-member Sensex
pack logged gains. Satyam Computer Services and ICICI Bank spurted
over 10% each. Turnover on BSE was above Rs 6,000 crore.
US markets on Thursday, 18 September 2008, recorded biggest one-day
percentage gain since October 2002 after the US Treasury Secretary
Henry Paulson proposed to congressional lawmakers a proposal to
create an entity to deal with the billions of dollars of bad debt
still choking the financial system. The Dow Jones industrial
average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500
index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq
Composite index surged 100.25 points, or 4.78%, to 2,199.10.
European markets, which opened after Indian markets, also joined
the global rally, boosted by a four-month ban by UK on
short-selling of financial stocks. Key benchmark indices in UK,
Germany and France were up by between 4.33% to 8.29%.
Asian markets advanced today, 19 September 2008. Key benchmark
indices in China, Hong Kong, Singapore, Japan, Taiwan, and South
Korea were up by between 4.55% and 9.61%. Battered Chinese stocks
soared 9.46% in response to an unprecedented package of government
measures to support the market.
The BSE 30-share Sensex was up 764.28 points or 5.75% to 14,079.88,
as per provisional closing. The Sensex opened with a huge
448.23-point upward gap at 13,763.83. At the day's high of
14,097.44 hit in late trade, the Sensex gained 781.84 points. At
the day's low of 13,674.96, the Sensex rose 359.36 points in early
trade.
The S&P CNX Nifty advanced 213.45 points or 5.29% to 4,251.60 as
per provisional closing
The market breadth was strong on BSE with 1873 shares advancing as
compared to 777 that declined. 68 remained unchanged.
The total turnover on BSE amounted to Rs 6202 crore as compared to
Rs 4335 crore by 14:30 IST.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries advanced 6.38%
to Rs 2056.25 on 16.60 lakh shares. The stock had hit a 52-week low
of Rs 1764 yesterday, 18 September 2008. The company has reportedly
struck gas at eight more locations in the Krishna-Godavari basin,
which it intends to develop at an approximate cost of $3 billion.
IT pivotals rallied on fresh buying on hopes of a solution to the
US financial crisis. India's fourth largest software services
exporter Satyam Computer Services galloped 10.97% to Rs 371.75 on
13.39 lakh shares. It was the top gainer from Sensex pack.
Other IT pivotals, Infosys (up 6.52% to Rs 1622.90), Wipro (up
5.09% to Rs 417.30), and TCS (up 6.94% to Rs 770.10), edged higher.
Indian IT firms count US financial services firms among their top
clients.
Battered realty stocks made a strong comeback today. India's
largest real estate developer by market capitalisation DLF galloped
7.70% to Rs 426.60 on high volumes of 31.29 lakh shares.
India's largest private sector bank in terms of net profit ICICI
Bank surged 10.17% to Rs 634.40, after its chief executive officer
K V Kamath said the bank is an extremely healthy institution and
has ample capital. The bank had on Wednesday, 17 September 2008,
denied rumours of top management selling shares following a
sell-off in the counter.
Other banking shares HDFC Bank (up 6.22% to Rs 1298), and State
Bank of India (up 0.30% to Rs 1566), edged higher.
The wholesale price index rose 12.14% in the 12 months to 6
September 2008, marginally above the previous week's rise of
12.10%, data released after market hours on Thursday, 18 September
2008 showed.
Telecom pivotals surged in late trade. India's top cellular
services provider by market capitalisation Bharti Airtel jumped
6.54% to Rs 810.10. In late trade, 12.23 lakh shares, or 0.06% of
company's equity changed hands in a block deal at Rs 798.50 on BSE.
India's second largest cellular services provider by market
capitalisation Reliance Communcations rose 5.63% to Rs 375.50.
Capital goods heavyweights advanced. India's largest power
equipment maker by sales Bharat Heavy Electricals surged 6.57% to
Rs 1715. Larsen & Toubro, the country's largest engineering &
construction company by sales, advanced 4.27% to Rs 2650.
India's largest oil exploration company by market capitalisation
Oil & Natural Gas Corporation soared 7.27% to Rs 1071.80 on reports
the company would invest Rs 19,338 crore in oil and gas hunt during
the current fiscal year, 10% higher than last year.
HDFC (up 8.86% to Rs 2320), Tata Power (up 8.69% to Rs 1031), and
Jaiprakash Associates (up 6.08% to Rs 135.15) edged higher from
Sensex pack.
Among side counters, Ansal Infrastructure (up 18.49% to Rs 90.10),
Indiabulls Real Estate (up 17.65% to Rs 225.30), Reliance Capital
(up 14.27% to Rs 1284), Engineers India (up 14.31% to Rs 620), and
Educomp Solutions (up 14.65% to Rs 3800), surged.
Light, sweet crude for October 2008 delivery added 72 cents to
settle at $97.88 a barrel on Thursday, 18 September 2008 on the New
York Mercantile Exchange.
Short covering in index heavyweights towards the fag end of the
session had helped key benchmark indices post small gains on
Thursday, 18 September 2008 after a dismal start. The BSE 30-share
Sensex rose 52.70 points or 0.4%, to close at 13,315.60 and the S&P
CNX Nifty rose 29.90 points or 0.75% at 4038.15.
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