Sensex Surges 2.7%

123jump.com Staff
07 Apr, 2008
New York City

Mumbai stocks rose sharply after Sebi said that it is considering to streamline dual stock listing on exchanges in India and other countries. Rally in commodities in the region also lifted stocks. Sensex gained 2.7% to close at 15,757 and CNX Nifty added 2.5% to close at 4,761. ICICI Bank and Ranbaxy Laboratories led the advancers in the Sensex index. However, Maruti Suzuki India and Ambuja Cements led the decliners in the index. Reliance Communication is likely to launch service in Sri Lanka.

[R]10:00AM New York, 7:30PM Mumbai - Sensex soars 2.7% and Sebi is expected to streamline dual stock listing in India and foreign exchanges.[/R]

Market Sentiment

Indian markets recovered on Monday from the loss of 5% last week with the benchmark index Sensex increased 2.7% or 413.96 to close at 15,757.08 levels. On the National Stock Exchange, CNX Nifty was up 2.5% to close at 4,761.20.

Of the BSE traded shares, 1,556 shares advanced, 1,071 shares declined while 57 shares remained unchanged.

Indian shares fell last week Friday after data showed inflation had rises to a three-year high of 7%, sending stocks lower. In the today’s session, technology, banking, metal and consumer company stocks rose.

ICICI Bank and Ranbaxy Laboratories led the advancers in the Sensex index. However, Maruti Suzuki India and Ambuja Cements led the decliners in the Sensex index.

Market News

Market regulator Sebi said that it is reviewing measures to streamline procedures of cross-listing of companies in India and abroad. Sebi chairman Bhave said on Monday that he said the US and European markets were already making serious efforts to promote cross-listing.

Bhave’s remarks came close on the heels of remarks of New York Stock Exchange Euronext CEO Duncan L Niederauer that the exchange was considering listing from Asia including India.

Turnover

Daily turnover on the BSE stood at 4,779 crore rupees as compared with 4,966.33 crore rupees achieved last Friday. On the National Stock Exchange, daily turnover was 12,026 crore rupees.

Reliance Capital was the most active on the BSE with the turnover of 229.15 crore rupees followed by Orchid Chemicals and Pharmaceuticals, Reliance Petroleum, Bharat Heavy Electricals and Reliance Industries.

Gainers and Deciders

ICICI Bank surged 6% to 809.30 rupees, State Bank of India was up 4.2% to 1,673.35 rupees and HDFC Bank surged 0.9% to 1,303.10 rupees.

National Aluminum Company gained 4% to 448.35 rupees, Sterlite Industries advanced 3.8% to 762.30 rupees, Tata Steel rose 2.8% to 679.35 rupees and Steel Authority of India was up 1.9% to 167.85 rupees.

Tata Consultancy Services rose 3.4% to 900.10 rupees. According to reports, the company said it has signed a new multi-year contract with Chrysler LLC to provide a comprehensive portfolio of IT services.

Wipro rose 4.4% to 433.95 rupees and Satyam Computer Services surged 1.6% to 432.15 rupees.
ONGC was up 1.2% to 1,017.85 rupees. ONGC Videsh (OVL), the overseas arm of ONGC, is expected to sign an agreement on Tuesday to take a 40% stake in the San Cristobal oilfield in Venezuela.

OVL will make a total investment of $355.7 million including a signing bonus of $173.1 million for the stake, according to local media reports.

Tata Motors rose 3.1% to 632.65 rupees on reports it had raised the price of trucks and buses by an average of 3.5% effective this month to pass higher raw material costs to customers.

Reliance Update

Reliance Industries rose 3.6% to 2,405.70 rupees on news reports that the company is planning to enter into the rig manufacturing business besides investing $2.5 billion to enter into petrocoke gasification.

Reliance Communications gained 1.1% to 506 rupees on reports that the company has formed a joint venture with a local firm to launch GSM mobile services in Sri Lanka by this year. Reliance Energy was down 0.3% to 1,162.90 rupees.

New Issues

Sita Shree Food Products settled at 43.90 rupees, a premium of 46.33% over the IPO price of 30 rupees. The company had priced the IPO at the top end of the 27 rupees to 30 rupees filing price range.