Key benchmark indices surged in the early afternoon trade to hit new intraday high. The BSE Sensex was up 430.54 points or 4.32%. IT stocks extended gains on spurt in American depository receipts last week. Metal and banking stocks also rose. Firm Asian stocks triggered recovery on the domestic bourses today after steep slide in the previous trading session. But the market breadth was negative, indicating a cautious undertone.
Index heavyweight Reliance Industries spurted. Wipro jumped more than 10%. Tata Consultancy Services, Infosys and Sterlite Industries gained more than 8% each.
At 12:19 IST, the BSE 30-share Sensex was up 430.54 points or 4.32% to 10,408.42. The index surged 460.10 points at the day's high of 10,435.45 in early afternoon trade. The Sensex rose 63.93 points at day’s low of 10,039.28 in early trade.
The S&P CNX Nifty was up 122.55 points or 3.99% to 3,196.90.
The BSE Mid-Cap index was up 0.02% at 3,543.53 and The BSE Small-Cap index was down 0.42% at 4,150.26. Both the indices underperformed the Sensex.
The market breadth was negative. On BSE, 945 shares advanced as compared to 1324 that declined. 67 shares remained unchanged.
India’s largest private sector company by market capitalization and oil refiner Reliance Industries rose 3.81% to Rs 1,356.20, recovering from a recent steep slide. From a recent high of Rs 1619.70 on 14 October 2008, the stock plunged 19.41% to Rs 1,438 on 17 October 2008 on concerns of fall in refining margins.
28 stocks gained from Sensex pack of 30 stocks. Jaiprakash Associates (up 5.39% to Rs 70.35), Reliance Communications (up 8.04% to Rs 252.75), and ITC (up 5.33% to Rs 167) were among the top gainers from the Sensex pack.
Grasim Industries (down 5.67% to Rs 1,220), and Mahindra & Mahindra (down 1.59% to Rs 433.10) were the only losers from the Sensex pack.
Most lenders jumped led by HDFC Bank, India’s second largest private sector bank by net profit, which last week reported strong Q2 results. HDFC Bank rose 6.73%. The bank's net profit rose 43.2% to Rs 527.98 crore on 62.8% growth in total income to Rs 4,634.32 crore in Q2 September 2008 over Q2 September 2007 on 16 October 2008.
ICICI Bank and State Bank of India rose between 2.03% to 6.61%. India’s largest home loan lender by operating revenue HDFC jumped 3.12%
Metal stocks rose despite falling metal prices on mounting fears a global economic slowdown will hit demand. Hindalco Industries, Sterlite Industries, Tata Steel, Hindustan Zinc, National Aluminum Company), Steel Authority of India rose between 0.35% to 7.81%.
IT stocks gained on sharp spurt of American depository receipts (ADR) last week. The BSE IT index rose 7.24% and was the major gainer from the sectoral indices on BSE. India’s fourth largest IT exporter by sales Wipro rose 10.33% to Rs 284.20. Wipro ADR jumped 25% to end at $8.3 on Friday 17 October 2008 over the previous week's close of $6.63.
India’s third largest IT exporter by sales Satyam Computer Services rose 6.19%. Its ADR jumped 16% to end at $14.39 in the week ended 17 October 2008. The company raised its earnings guidance in rupee terms at the time of announcing Q2 September 2008 results on Friday, 17 October 2008.
India’s second largest IT exporter by sales Infosys rose 7.9%. Infosys ADR gained 8% to end at $25.96 in the week ended 17 October 2008. India’s largest IT services provider by sales Tata Consultancy Services jumped 9.02%.
India’s largest commercial vehicle maker by sales Tata Motors rose 1.48% to Rs 247. The rights issue of Tata Motors, which has received a lukewarm response due to slump in the stock price below the rights issue price, closes today, 20 October 2008. The share price of Tata Motors has been trading below the offer price of its ordinary rights issue at Rs 340. The differential voting rights component of the rights issue is priced at Rs 305.
Cadila Healthcare declined 2.25%, despite receiving US Food & Drug Administration approval for a new drug.
Raymond rose 1.41% to Rs 97 after a block deal was struck in the counter on BSE at Rs 109, at a premium of 13.95% over the previous day's closing price
United Phosphorus gained 3.49% on reports of plans to buy stake in an Israel agrochemicals based company for around $1.1 billion.
Moser Baer India surged 3.17%, on reports of plans to invest over $800 million in various businesses in the next 18 months.
Panoramic Universal rose 2.16% on acquiring the remaining 21.93% stake in Hi-Flyers, a travel agency catering to premium corporates and high networth individuals.
Asian stock markets rallied, with valuations growing attractive, and after governments around the world rushed out further steps to to stabilize the financial markets and revive the banking industry, which has been badly damaged by a crisis of confidence. Key benchmark indices in South Korea, China, Taiwan, Hong Kong, Japan and Singapore were up by between 2.07% to 6.03%.
Oil prices rose. US crude rose $2 to $71.85 a barrel, on Friday, 17 October 2008 spurred by a broader rise across financial markets and expectations Organisation of Petroleum Exporting Countries (OPEC) could cut output at an emergency meeting next week.