Firm Asian stocks triggered recovery on the domestic bourses after
steep slide in the previous trading session. A bout of volatility
was witnessed in early trade. The BSE Sensex jumped over 300 points
at the day's high with IT stocks leading the rally. Wipro rose more
than 6%. Realty stocks jumped. But the market breadth was negative
indicating a cautious undertone.
Asian stock markets rallied with valuations growing more
attractive, and after governments around the world rushed out
further steps to to stabilize financial markets and resuscitate the
banking industry which has been badly damaged by a crisis of
confidence. Key benchmark indices in South Korea, Taiwan, Hong
Kong, Japan and Singapore were up by between 0.98% to 4.34%.
At 10:22 IST, the BSE 30-share Sensex was up 314.91 points or 3.16%
to 10,290.96. The index surged 331.62 points at the day's high of
10,306.97 in early trade. The Sensex rose 63.93 points at day's low
of 10,039.28 in early trade.
The S&P CNX Nifty was up 85.55 points or 2.78% to 3,159.90.
The BSE Mid-Cap index was down 0.3% at 3,534.14 and The BSE
Small-Cap index was down 0.31% at 4,154.79. Both the indices
underperformed the Sensex.
The market breadth was negative. On BSE, 608 shares advanced as
compared to 727 that declined. 34 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries rose 1.42% to Rs 1,324.20. From a
recent high of Rs 1619.70 on 14 October 2008, the stock plunged
19.41% to Rs 1,438 on 17 October 2008 on concerns of fall in
refining margins.
Reliance Communications (up 4.3% to Rs 244), ICICI Bank (up 4.45%
to Rs 409.15), HDFC Bank (up 3.79% to Rs 1,062.90) were among the
top gainers from the Sensex pack.
Grasim Industries (down 5.33% to Rs 1,225), State Bank of India
(down 0.77% to Rs 1,403) and Mahindra & Mahindra (down 1.37% to Rs
434.95) were the top losers from the Sensex pack.
BSE Realty index rose 2.48%. Out of 14 real estate stocks from BSE
Realty index, 7 stocks rose while rest declined.
Realty majors, Indiabulls Real Estate, Unitech rose between 0.5% to
1.45%. India's largest real estate player by market capitalization
DLF fell 1.54%
DLF, India bulls Real Estate, Unitech have weightage of 42.53%
22.09% and 11.03% respectively in the BSE Realty index.
IT stocks gained even as rupee rose against the dollar. BSE IT
index rose 3.29% and was the major gainer from the sectoral indices
on BSE. India's third largest IT services provider by sales Satyam
Computer Services rose 4.96% after the company raised its earnings
guidance in rupee terms at the time of announcing Q2 September 2008
results on Friday, 17 October 2008. Tata Consultancy Services ,
Wipro and Infosys jumped between 2.86% to 6.5%.
The Indian rupee strengthened in early deals on Monday. The
partially convertible rupee was at 48.72/73 per dollar, stronger
than 48.88/89 per dollar on Friday 17 October 2008. A firm rupee
impacts IT companies as they earn most of their revenues in dollar
terms resulting higher revenues.
India's largest commercial vehicle maker by sales Tata Motors rose
3.49% to Rs 241. The rights issue of Tata Motors, which has
received a lukewarm response due to slump in the stock price below
the rights issue price, closes today, 20 October 2008. The share
price of Tata Motors has been trading below the offer price of its
ordinary rights issue at Rs 340. The differential voting rights
component of the rights issue is priced at Rs 305.
Ultra Tech Cement fell 1.54% as net profit fell 11.65% to Rs 164.19
crore in Q2 September 2008 over Q2 September 2007. The net sales
rose 19.57% to Rs 1,396.21 crore in Q2 September 2008 over Q2
September 2007.
Godawari Power & Ispat surged 7.28% after the company announced
that a board meeting will be held on 25 October 2008 to consider
buyback of equity shares.
Visa Steel rose 4.27% after the company said it has commissioned
commercial operations at a 1.5 lakh tonnes direct reduced iron
(DRI) plant and 25 megawatt power plant situated at Kalinganagar
industrial complex, in Jaipur, Orissa.
Vishal Retail gained 1.6% after the company said it has opened a
new retail outlet in Ghaziabad taking its total stores count 160
spread across an area of 27.63 lakh square feet across the country.
Apollo Hospitals fell 4.68% after the company said its board will
meet on 30 October 2008 to consider stock split.
Mukand was flat at Rs 34.85 even as the company said its industrial
machinery division saw order book growth of 76% in six months ended
September 2008 over the six months ended September 2007. According
to the company it is unlikely to be impacted by fluctuations in the
foreign exchange market as the company procure raw material
domestically and not through imports.
US stocks fell on Friday, 17 October 2008 on weakness in
manufacturing and financial stocks following bleak data on consumer
confidence and construction. The Dow Jones industrial average fell
127.04 points, or 1.41%, to 8,852.22, while the Standard & Poor's
500 Index dropped 5.88 points, or 0.62%, to 940.55. The Nasdaq
Composite Index slipped 6.42 points, or 0.37%, to 1,711.29.
Back home, bears ruled the roost on the bourses on Friday, 17
October 2008 on global recession worries, with the BSE Sensex
falling below the psychological 10,000 mark for the first time in
more than two years. The BSE 30-share Sensex lost 606.14 points or
5.73% to 9,975.35 and the S&P CNX Nifty was down 194.95 points or
5.96% to 3,074.35, on that day.
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