Sensex Surges 5.5%, Tracks U.S. Ganis

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

Stocks in India tracked the rebound in the U.S. and Asian markets. In the overnight trading market averages in the U.S. surged on the optimism that the government plan to inject capital in the mortgage market will improve liquidity. Banks, realty and IT sector stocks rallied. The Sensex index surged 5.5% on 3 of 2 stocks closing higher. Satyam Computer Services and ICICI Bank increased rose 10%. Reliance Industries rose 6% after the company struck oil in 8 more locations.

[R]10:00AM New York, 7:30 PM Mumbai – The U.S. market led rise in Europe and Asia lifted Sensex index 5.5%. Financials, realty and IT stocks rallied.[/R]

Market Sentiment

Stocks in India gained on bargain hunting and positive cues from global stocks. In the overnight trading stocks in the U.S. rose sharply on the hopes that the U.S. government will release a plan to support capital markets and act as a last buyer for illiquid mortgage securities. The regulators also banned short selling on 800 financial stocks in the U.S. to prop up financial markets.

In Mumbai, the BSE 30-share Sensex gained 5.46% or 726.72 to 14,042.32, and the CNX Nifty increased 5.13% or 207.10 to 4,245.25.

Of the stocks traded on the BSE, 1873 rose, 777 declined, and 68 remained unchanged.

Trading Statistics

Daily turnover on main-board stood at 6,202 crore rupees compared with 7,376.23 crore rupees yesterday. Satyam Computer Services and ICICI Bank increased over 10% each.

Punjab National Bank Signs Deals with Brokerages

Reuters News reported today that the Punjab National Bank said it has signed deals with brokerages Networth Stock Broking Ltd and SMC Group to provide online trading to its customers. SMC Global Securities Ltd, SAM Global Securities Ltd and SMC Comtrade Ltd signed the deal on behalf of SMC Group.

Gainers & Losers

Reliance Industries gained 6.38% to 2,056.25 rupees after the company said it has struck gas at eight more locations in the Krishna-Godavari basin that it will develop at $3 billion.

Realty, banking and IT stocks led today''s rally.

Satyam Computer Services increased 10.97% to 371.75 rupees, Infosys soared 6.52% to 1622.90 rupees, Wipro advanced 5.09% to 417.30 rupees, and TCS advanced 6.94% to 770.10 rupees.

Realty stocks gained. DLF edged up 7.70% to 426.60 rupees, Ansal Infrastructure increased 18.49% to 90.10 rupees, Akruti City soared 11.52% to 908.20 rupees, Indiabulls Real Estate surged 17.65% to 225.30 rupees, Unitech spiked 3.15% to 125.90 rupees and Housing Development & Infrastructure rose 8.08% to 224.05 rupees.

ICICI Bank increased 10.17% to 634.40 rupees after chief executive of the bank K. V. Kamath said the bank is adequately capitalized. HDFC Bank edged up 6.22% to 1,298 rupees, and State Bank of India increased 0.30% to 1,566 rupees.

Mahindra & Mahindra lost 0.10% to 550 rupees.

Telecommunication stocks also gained. Bharti Airtel climbed 6.54% to 810.10 rupees and Reliance Communications rose 5.63% to 375.50 rupees.

Bharat Heavy Electricals surged 6.57% to 1715 rupees and Larsen & Toubro increased 4.27% to 2650 rupees.

Oil & Natural Gas Corporation edged up 7.27% to 1,071.80 rupees on news the company will invest 19,338 crore rupees in oil and gas hunt during the current fiscal year, which is 10% higher than a year ago.

Reliance Capital soared 14.27% to 1,284 rupees, Engineers India spiked 14.31% to 620 rupees, and Educomp Solutions surged 14.65% to 3,800 rupees.

HCL Technologies jumped 8.28% to 213.25 rupees on reports the company will target a $1 to 2 billion acquisition in the US or Europe before 2011.

Patel Engineering rose 3.02% to 363 rupees after the company received an order worth 695.57 crore rupees from the Andhra Pradesh state government.

Phoenix Mills increased 2.06% to 146 rupees and Videocon Industries surged 6.26% to 230.95 rupees after reporting its overseas subsidiary VB (Brasil) Petroleo has acquired 100% stake in EnCana Brasil Petroleo of Brazil $165 million.