Market Closing Session - Nov 14th

Sensex registered its biggest intra-day absolute gains on the back of strong global cues and huge gains in index heavyweights Reliance Industries and ICICI Bank. Banking, oil & gas, IT and metal stocks were star performers. Essar Oil, Ispat Industries surged. Fertiliser stocks were in demand. Market breadth was strong.

The market spurted today as worries about the US credit crisis eased after several top US executives reassured investors that the US banking system could withstand shocks from credit-related losses. Asian markets, which opened before Indian market, surged. European markets, which opened after Indian markets, were trading firm.

Reports that a number of prominent overseas investors are applying for FII registration with the market regulator Securities & Exchange Board of India (Sebi), also boosted the sentiment.

The 30-share BSE Sensex ended up 893.58 points or 4.69% to 19,929.06. At days high of 19,987.71, Sensex gained 952.23 points, its biggest ever single day rise.

The broader CNX S&P Nifty gained 242.5 points or 4.26% to 5937.90.

With today's rise, Sensex has gained 1191.79 points or 6.36% in the past two trading sessions. Sensex had risen 298.21 points or 1.59% to 19,035.48 on Tuesday, 13 November 2007, boosted by reports that the Left front may allow the government to negotiate safeguards for a civilian nuclear agreement with the US.

Just before the current rally, the market had witnessed a major correction as worries of widening credit-related losses in the United States rattled global equity markets.

The market breadth was strong. On BSE, 2024 stocks advanced, while 764 stocks declined and 62 stocks remained unchanged. All the 30 Sensex stocks were in green.

BSE clocked a turnover of Rs 8796 crore, compared to Tuesday (13 November 2007)'s Rs 7,964.71 crore.

The NSE futures & options (F&O) turnover was at Rs 68270.99 crore compared to Tuesday (13 November 2007)'s Rs 67336.02 crore.

The Nifty November 2007 futures were at 5952.05, a premium of 14.15 points over spot closing of 5937.90.

The BSE Mid-Cap index was up 2.12% to 8,285.63 and the BSE Small-Cap index was up 2.43% to 10,039.38. Both these indices under performed the Sensex.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries surged 7.11% to Rs 2887.50.

Essar Oil surged 36.50% to Rs 120.80. The company and RIL have reportedly increased petrol and diesel prices by Rs 4.50 to Rs 5 per litre. As the international crude oil prices are hovering around the $100 a barrel mark, oil companies in the country are finding it difficult to maintain the profitability. The private sector fuel retailers will lose market share to the government-owned companies as PSUs sell at a lesser price.

The BSE Bankex surged 6.53% to 11,225.82. It outperformed the Sensex. Index heavyweight ICICI Bank soared 8.65% to Rs 1277.90.HDFC Bank spurted 10.81% to Rs 1749.10, Punjab National Bank soared 9.46% to Rs 601.35, Oriental Bank jumped 7.60% to Rs 256.20 and Axis Bank gained 4.20% to Rs 989.15. State bank of India rose 2.20% to Rs 2346.15.

The BSE Oil & Gas index moved up 6.40% to 12,138.87. It outperformed the Sensex. ONGC soared 4.39% to Rs 1,235.25, Indian Oil Corporation moved up 4.18% to Rs 540.70 and Cairn India moved up 4.16% to Rs 214.05.

IT stocks surged as worries over US credit crisis eased. The BSE IT index gained 4.51% to 4,280.32. It underperformed the Sensex. Index heavyweight Infosys Technologies rose 4.84% to Rs 1706.35. Wipro soared 6.84% to Rs 471.20, Satyam Computers gained 4.92% to Rs 430.75, TCS rose 3.57% to Rs 982.85.

The BSE Metal index moved up 4.16% to 17,756.03. It underperformed the Sensex. Jindal Saw soared 8.20% to Rs 808.60, Steel Authority of India (Sail) gained 5.67% to Rs 263.90, Sterlite Industries moved up 3.61% to Rs 1012.25 and Tata Steel gained 3% to Rs 857.95.

India's largest aluminium producer by sales Hindalco Industries jumped 6.95% to Rs 217.65 on reports the company had raised prices of primary aluminium by Rs 2,000 a tonne.

The newly launched BSE Power index moved up 3.15% to 4,670.19. It underperformed the Sensex. CESC soared 8.35% to Rs 618.70, Areva T&D gained 5.83% to Rs 3084.50, Neyveli Lignite rose 5.41% to Rs 214.15, Tata Power gained 4.13% to Rs 1309.95 and Reliance Energy rose 3.59% to Rs 1920.35.

The BSE Capital Goods index rose 2.83% to Rs 20,866.85. It underperformed the Sensex. Siemens moved up 6.42% to Rs 1881.05, BEML rose 5.40% to Rs 1718.25, Bharat Heavy Electricals (Bhel) 3.49% to Rs 2873.85, and Larsen & Toubro (L&T) rose 2.82% to Rs 4492.25.

Fertiliser stocks soared on reports that the government will issue bonds worth Rs 7500 crore to fertiliser firms by end-November 2007 to compensate them for selling the commodity at discounted prices. Rashtriya Chemicals and Fertilisers soared 20% to Rs 72.10, Fertilisers and Chemicals Travancore spurted 10% to Rs 35.85, National Fertilizers soared 10% to Rs 76.10 and Mangalore Chemicals & Fertilisers jumped 8.59% to Rs 41.10.

India's largest cellular service provider by market share Bharti Airtel rose 3.19% to Rs 859.65, off sessions high of Rs 889. Bharti added 2.03 million subscribers in October 2007 against 2.06 million additions in September 2007, taking its total mobile user base to 50.9 million. Meanwhile, Bharti's chairman Sunil Mittal on Wednesday, 14 November 2007, he favours mobile number portability across the country and not just in the four big metro cities.

Indias second largest listed cellular service provider Reliance Communications moved up 2.42% to Rs 724.60.

Indias largest dedicated housing finance company by revenue Housing Development Finance Corporation (HDFC) was up 6.51% to Rs 2755.85 on reports that the company has received a premium commitment of Rs 170 crore from German insurer Ergo for the latters 26% stake in its non-life insurance company.

Tata Coffee surged 12.68% to Rs 268.30 on reports that it is looking at buying a Russian brand to market its instant coffee in that country.

GTC Industries jumped 5% to Rs 471.60 after CLSA Mauritius acquired 2.45 lakh shares of the company in a block deal yesterday, 13 November 2007 on the Bombay Stock Exchange at Rs 449.15 per share.

Indias largest real estate firm by market capitalisation DLF rose 2.38% to Rs 926.70 on reports that the real estate firm is buying Singapore-based luxury chain Amanresorts for around $250 million.

Power transmission equipment maker KEC International moved up 4.24% to Rs 855.90 on reports it had secured orders worth Rs 637 crore for transmission line projects in Abu Dhabi and Algeria.

Ispat Industries jumped 10% to Rs 46.60 on speculative buying on market talks it will be included in National Stock Exchanges futures & options segment shortly.

In Europe, UKs FTSE 100 moved up 1.20% to 6,438.50, Frances CAC 40 rose 1.36% to 5,614 and Germanys DAX rose 0.83% to 7,842.41.

Asian markets surged today, 14 November 2007, boosted by a strong rebound on Wall Street yesterday, 13 November 2007. Hong Kong's Hang Seng (up 4.90% at 29,166.01), Japan's Nikkei (up 2.47% at 15,499.56), Taiwan Weighted (up 2.47% at 8,942.93), Straits Times (up 1.82% at 3,538.73) and South Korea's Seoul Composite (up 2.05% at 1,972.58) edged higher.

US markets rallied yesterday, 13 November 2007, after reassuring news from Goldman Sachs Group Inc. and Wal-Mart Stores Inc. calmed some of the market's worst fears about the credit crisis and the economy. The Dow Jones industrial average surged 319.54 points, or 2.46%, to 13,307.09. The S&P 500 index jumped 41.86 points, or 2.91%, to 1,481.04, and the Nasdaq Composite index gained 89.52 points, or 3.46%, to 2,673.65.

Source - Capital Markets