Sensex Surges 8%, Reliance Comm Net Up

123jump.com Staff
31 Oct, 2008
New York City

Stocks in Mumbai surged 8% on the first of day trading. ONGC profit declined 5.7% and Bharat Petroleum and Indian Oil Corporation reported larger losses. A rise of 0.5% in rupee lifted stocks of software exporters. Punjab National Bank profit rose 31% and Kotak Mahindra profit declined 37%.

[R]10:00AM New York, 7:30 PM Mumbai – Stocks surge on a decline in inflation, speculation of RBI adding liquidity and prospects of higher profits.[/R]

Market Sentiment

In Mumbai, the BSE 30-share Sensex gained 8.2% or 743.55 to 9,788.06, and the CNX Nifty soared 7% or 188.55 to 2,885.60.

Of the stocks traded on the BSE 1577 rose, 916 declined and 82 were unchanged.

Trading Statistics

Daily turnover on the BSE was 3,699 crore rupees from 3,104.10 rupees on Wednesday.

Ranbaxy Laboratories fell 2% to 169.45 rupees after the company reported a third quarter net loss of 352.93 crore rupees from a profit of 168.15 crore rupees in the same period a year earlier.

India Withdrawals 15% Export Duty on Steel

Reuters News reported today that government will withdraw 15% export on steel and iron products on a marked decline in international prices.

Government will also scrap a 5% import duty on aviation turbine fuel to provide a relief to airliners. The measures will take effect from today.

Gainers & Losers

Indian stocks posted strong gains after the inflation rate slowed to 10.7% in the week ended October 18 and on the speculation that the government is considering injecting additional liquidity in the market.

Stocks were shut yesterday for a holiday.

Reliance Industries gained 13.8% to 1,370.75 rupees after the government said the $4.20 per metric million Btu price for natural gas from the company was for valuation of government shares, adding that the selling price will be increased.

Jaiprakash Associates jumped 16.6% to 71.85 rupees and Tata Power Company gained 11.9% to 689.65 rupees.

Ranbaxy Laboratories fell 2% to 169.45 rupees after the company reported net loss in the third quarter ended September 30 at 352.93 crore rupees from a profit of 168.15 crore rupees in the same period a year earlier.

Telecommunication stocks gained. Reliance Communications rose 13.8% as net profit advanced 17.3% to 1,530.78 crore rupees in the second quarter to September 30.

Bharti Airtel increased 5.5% despite a 0.9% drop in net profit to 1,604.78 crore rupees.

DLF gained 8.8% ahead of its second quarter results today.

Tata Steel, Hindustan Zinc and Sterlite Industries rose between 0.13% and 14.48% while Steel Authority of India fell 0.2%.

Hindalco Industries rose 13% as net profit rose 13.3% to 719.95 crore rupees in second quarter to September and National Aluminium Company (Nalco) soared 7.4% as profit gained 1.07% to 444.46 crore rupees.

Financial stocks rose after the country''s wholesale inflation eased to 10.7% stoking expectations of a rate cut from the central bank. ICICI Bank climbed 15.5%, the State Bank of India rose 0.8% and HDFC Bank increased 8.3%.

Punjab National Bank edged up 4.6% after net profit soared 31.3% to 707.09 crore rupees in the second quarter, while Kotak Mahindra Bank advanced 3.1% as net profit fell 36.5% to 47.86 crore rupees for the second quarter to September 2008.

Realty stocks rose. HDFC jumped 17.5% on market rumors RBI will lower its cash reserve ratio by one percentage points.

Satyam Computer Services increased 7.6%, Wipro rose 6.2%, Infosys gained 6.1%, but Tata Consultancy Services dropped 0.9% after the rupee rose 0.4% to 49.50 against the dollar.

Bharat Petroleum Corporation declined 7.1% after the company reported a net loss of 2,625.27 crore rupees in the second quarter, while Indian Oil Corporation fell 3.1% after the company''s net loss topped 7,047.13 crore rupees in the same period.

Crude oil prices fell by more than $2 to $74 per barrel on slowing economic activity in the U.S.

ONGC rose 3.0% despite a 5.7% drop in net profit to 4,808 crore rupees in the second quarter ended September 2008.