Sensex Leads Asian Markets

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

Stocks in India recovered from earlier loss as investors focus on domestic economy. Sensex gain leads the regional markets trading. India current account deficit rose to nearly $11 billion as crude oil import bill surges. ICICI Bank rebounded in a volatile trading.

[R]10:00AM New York, 7:30 PM Mumbai - India''s current account deficit increases to $10.72 billion in the fiscal second quarter.[/R]

Market Sentiment

Stocks in India rebounded from losses in the morning session on the expectations that the U.S. will be able to expeditiously approve the $700 billion bailout plan that was vetoed yesterday.

In Mumbai, the BSE 30-share Sensex rose 2.1% or 264.58 to 12,860.43, and the CNX Nifty advanced 1.85% or 71.15 to 3,921.20.

Of the stocks traded on BSE 1,277 rose, 1,316 declined, and 79 were unchanged.

Trading Statistics

Daily turnover on BSE stood at 5,164 crore rupees from 4,594.16 rupees yesterday. ICICI Bank led the gainers in the index stocks after stocks in the banking sectors rebounded.

Current Account Deficit Widens to $10.72 billion

The Reserve Bank of India reported on its Web site today that the country''s current account deficit rose to $10.72 billion in the three months ended June. Exports rose to $43.7 billion, while imports gained $75.2 billion in the period.

The RBI noted that according to a report that was released by Directorate General of Commercial Intelligence Statistics show that oil imports in the quarter to June soared by 50.4%, while non-oil imports advanced 20.9% from a year ago.

Oil imports in the period represented 35% of the total imports as the oil prices soared to $118.80 a barrel from $64.40 a year ago in the same period.

India''s Short Selling Rule Hasn''t Been Violated

The Securities and Exchange Board of India Chairman Shri Bhave said today authorities haven''t noticed any settlement issues on the short sales. SEBI allows short sales in accounts that have borrowed stocks on the exchanges.

“At present there are no volumes in the borrowing/ lending market. Therefore there is no concern that institutions might be short selling. Short sales by retail are permissible but the stock has been delivered on a T+2 basis. If an entity delivers short, the position is auctioned. If SEBI finds that any institution has violated the short sale rule, SEBI will take the most stringent action against such an entity, if any. At present there are no indications that such a violation has occurred,"""" said Bhave.

Gainers & Losers

Financial stocks rose. ICICI Bank rose 8.42% to 534.85 rupees after denying speculation about its financial position, adding that the lender is adequately capitalized.

State Bank of India jumped 4.32% to 1,465.65 rupees and HDFC Bank gained 2.46% to 1,229 rupees.

Tata Consultancy Services soared 6.96% to 662.75 rupees, Bharat Heavy Electricals edged up 5.07% to 1,586 rupees and Bharti Airtel gained 5.14% to 785.05 rupees.

Maruti Suzuki India jumped 3.73% to 687.15 rupees, Larsen & Toubro climbed 4.16% to 2442.90 rupees, HDFC increased 5.33% to 2,141.15 rupees and Jaiprakash Associates rose 4.12% to 111.10 rupees.

Ranbaxy Laboratories lost 3.17% to 247.75 rupees, Tata Motors shed 3.27% to 344.20 rupees, Tata Steel declined 4.43% to 425.60 rupees and Grasim Industries tumbled 2.58% to 1,687.60 rupees.

Reliance Industries rose 0.8% to 1,946.35 rupees.