Sensex Up 2.6%, Banks Rally

123jump.com Staff
05 Aug, 2008
New York City

Stock benchmark in Mumbai surged 2.6% on a drop in crude oil and metal prices for the second day in a row. Auto stocks led the gainers in the session with Maruti Suzuki rising 8.4% and Tata Motors adding 3.7%. Bank and real estate companies stocks closed higher on the expectations of financial reforms that will allow foreign investors to increase their holding in insurance companies and banks. ACC and Ambuja Cements rose more than 5%.

[R]10:00AM New York, 7:30PM - Indian share climbed on sustained buying and a fall in crude oil prices.[/R]

Market sentiment

Indian shares closed firm on Tuesday on sustained buying in index shares. The falling of US crude oil prices also lifted the market.

US crude oil dropped to a low of $118 per barrel in Asian trades today, a lowest level since 5 May 2008. US crude futures declined on Monday as OPEC increased production for third month in a row.

In Mumbai, the BSE 30-share Sensex advanced 2.6% or 383.20 to 14,961.07 after the index fell 15.19 to 14,562.68 at the opening. On the National Stock Exchange, the CNX Nifty index surged 2.5% or 107.5 to 4,502.85. It traded between 4,515.15 and 4,376 during the day.

Of the stocks traded on the BSE, 1,764 gained, 940 shares declined and 64 shares remained unchanged. Among the Sensex shares, 28 advanced and 2 fell.

Trading statistics

Daily turnover on the BSE stood at 6,941 crore rupees and on the NSE turnover was 17, 293 crore rupees.

Reliance Industries was the most active stock on the BSE with the turnover of 380 crore rupees followed by Reliance Capital of 360 crore rupees, Reliance Natural Resources of 288.50 crore rupees, ICICI Bank of 220 crore rupees and Essar Oil of 203.65 crore rupees.

Reliance Natural Resources led the most active trading volume list with a turnover of 2.75 crore shares followed by trading in Ispat Industries, IFCI, Reliance Petroleum and Kashyap Technologies.

Gainers and losers

Auto stocks surged after crude oil prices hit $118 per barrel in Asian trades. Maruti Suzuki India led the advancers among the Sensex index stocks with a rise of 8.4% to 620 rupees. Tata Motors gained 3.7% to 410.95 rupees, Hero Honda Motors surged 4.1% to 828 rupees and Mahindra & Mahindra rose 5.3% to 547 rupees.

Banking shares rose on intense buying in anticipation of reforms in the financial sector. UPA led government, recently proved its majority in the parliament and is now expected to pass financial sector reform at the next meeting.

HDFC Bank surged 6.4% to 1,180 rupees, ICICI Bank rose 8.1% to 692.10 rupees and State Bank of India Bank gained 4.7% to 1,579.90 rupees.

Realty shares surged. DLF rose 7.9% to 554.60 rupees and Indiabulls Real Estate surged 2.8% to 312.05 rupees.

Cement companies participated in the rally despite agreeing to maintain status quo on price per bag and increase in production capacity. Ambuja Cements rose 5.2% to 87.30 rupees and ACC climbed 5.5% to 618 rupees.

National Thermal Power Corporation gained 4% to 182.20 rupees on reports that the firm has amassed a $3 billion fund to make international acquisitions.

Bharat Heavy Electricals gained 3.6% to 1,755 rupees after the company received an order of 2,500 crore rupees to supply 800-megawatt generators for a power plant in south India.

Tata Steel decline4d 2.6% to 673.80 rupees and Ranbaxy declined 2.1% to 513.15 rupees.

Reliance companies update

Reliance Communications rose 0.7% to 442.30 rupees. According to reports, the company is expected to float $500 million tender for GSM 3G networks. Reliance Communication a CDMA-based operator is looking at 3G services with the GSM standard. Reliance Industries gained 1.5% to 2,276 rupees.