Oil Fall Powers India Stocks

123jump.com Staff
02 Sep, 2008
New York City

Indian stocks rose sharply with a drop in crude oil prices for the second day in a row. Oil in two days fell 10% and traded as low as $108 a barrel. Further losses are expected in the oil prices and may test $100 level in the next three weeks. Stocks responded with sharp gains. Sensex and CNX Nifty added more than 3.5%. Banks and realty stocks surged with a decline in crude oil prices. Kotak Mahindra Bank rose 10%, State Bank of India gained 7.5% and Jet Airways increased 9.6%.

[R]10:00AM New York, 7:30 PM Mumbai - Financial and realty stocks lead Sensex higher as oil tumbles. Market benchmark indexes soared more than 3.5%.[/R]

Market Sentiment

In Mumbai, the BSE 30-share Sensex climbed 3.80% or 551.35 to 15,049.86, and the CNX Nifty gained 3.57% or 155.35 to 4504. Of the stocks traded on BSE 1,675 rose, 986 declined, and 72 shares were unchanged.

Trading Statistics

Daily turnover on BSE stood at 6,386 crore rupees from 4,854.14 crore rupees yesterday.

ONGC increased 6.97% to 1101.55 rupees after ratings agency CRISIL reaffirmed its rating on the 50 crore rupees non-debenture issue of ONGC at ''AAA/Stable''.

Gainers & Losers

Financial stocks rose as oil prices fell to $108 per barrel in early trading in the U.S. on easing supply disruption concerns related to the storm in the Gulf of Mexico.

Kotak Mahindra Bank rose 9.57% to 649.95 rupees, State Bank of India soared 7.44% to 1,521.35, HDFC Bank increased 3.50% to 1,341.45 rupees, and ICICI Bank advanced 7.34% to 713.30 rupees.

Realty stocks gained. Orbit Corporation rallied 16.80% to 304.55 rupees, Housing Development & Infrastructure gained 16.27% to 325.85 rupees, Indiabulls Real Estate edged up 9.64% to 322.35 rupees, Unitech jumped 7.14% to 169.60 rupees and DLF climbed 7.14% to 529.85 rupees.

Airlines were also buoyed by retreating oil prices. Jet Airways increased 9.55% to 532.90 rupees, Deccan Aviation gained 7.60% to 89.20 rupees, and SpiceJet soared 6.63% to 29.75 rupees.

However healthcare stocks slumped. Fortis Healthcare lost 1.83% to 74.95 rupees, Ipca Laboratories dipped 1.20% to 565.15 rupees, Aurobindo Pharmaceuticals declined 0.90% to 318.05 rupees, and Pfizer shed 0.87% to 575.55 rupees.

Ranbaxy Laboratories fell 1.89% at 490.35 rupees after it lost a patent challenge against Pfizer over selling cholesterol drug, Lipitor in Denmark.

Great Offshore increased 7.69% to 561.55 rupees after the company reported that it has ventured into port management and single port mooring through acquiring a 100% stake in two domestic companies for 160 crore rupees.

Union Bank of India rose 6.13% to 154 rupees on news that the bank plans to raise 1,000 crore rupees via debt in a month’s time, adding that the company will try to raise 3,500 crore rupees by the end of 2008.

Kinetic Motor Company rose 3.98% to 19.60 rupees after its board approved an investment of 29.50 crore rupees in its JV with Mahindra Two Wheelers.

Reliance Industries gained 3.41% to 2,213.55 rupees, Infosys Technologies rose 3.02% to 1,775.30 rupees.

Tata Motors declined 1.82% to 429.85 rupees after reporting today that the terms of the two rights aggregating about 4200 crore rupees.

Cairn India slipped 5.76% to 233.75 rupees.

Deccan Chronicle Holdings rose 1.85% to 129.50 rupees.