(RTTNews) - Monday, the Indian market spurted amid buying across the board all through the day following the extremely positive sentiment in the rest of the global markets and a bounce-back in the U.S. futures. The coordinated measures by the world leaders in the last two days and positive talk by the Indian finance minister ahead of the opening bell on the stock exchanges triggered all- round buying after a huge sell-off last week.

The Australian and the New Zealand governments guaranteed bank deposits and European leaders agreed to support lenders, even as the UK government injected 37 billion pounds ($63.95 billion) into leading UK banks. In India, the government and the regulators put a coordinated effort to revive investor sentiment and announced a series of measures to inject liquidity and seek revival of investor interest. The finance minister said that he is coordinating with the regulators on an hourly basis.

The RBI chief D Subbarao said that India could escape the worst consequences of the global crisis due to its strong internal drivers for growth and assured to tackle consequences in debt and credit markets effectively. Meanwhile, the International Monetary Fund (IMF) in a separate statement termed the impact of the financial turmoil on India as ‘minimal’.

After opening higher at 10,818, the BSE Sensex spurted to an intra-day high of 11,361, before losing marginally to finish at 11,336, up 809 points or 7.68%. The mid-cap index (up 4.40%) and the small-cap index (up 3.85%) sharply under performed the key indexes, even as the broad-based BSE 500 index rallied 6.77%. Meanwhile, the S&P CNX Nifty ended at 3,491, up 211 points or 6.43%.

Stocks across the board attracted good buying support. The banking index spurted 12.51%, the capital goods index surged 10.36%, and the consumer durables index soared 10.26%, while the power and the realty indexes added around 9% each. On the BSE, the market breadth was positive, with 1687 stocks gaining compared to 926 stocks that declined. However, the Sensex futures ended at a discount of 338 points to the benchmark.

Reliance Communication (up 19.92%), Reliance Infrastructure (up 17.13%), ICICI Bank (up 16.71%), Sterlite Industries (up 15.99%), HDFC Bank (up 12.58%), State Bank of India (up 12.19%), Mahindra & Mahindra (up 11.78%), BHEL (up 11.61%), Larsen & Toubro (up 11.35%), Hindalco Industries (up 10.66%) and TCS (up 10.52%) were some of the notable gainers.

Except for two stocks, Ranbaxy Laboratories and ONGC, all other Sensex stocks ended in positive territory.

Stocks in News

Select power and capital goods rose remarkably after the US Secretary of State Condoleezza Rice and her Indian counterpart Pranab Mukherjee have signed an agreement to open up sales of civilian nuclear technology to India for the first time in three decades.

Steel stocks, Tata Steel, SAIL and JSW Steel, ended sharply higher even as reports said that steel manufacturers could cut prices as well as production levels on account of a slowdown in the domestic market.

Auto stocks, Bajaj Auto (up 11.33%), Hero Honda (up 1.79%), Tata Motors (up 2.59%), Mahindra & Mahindra (up 11.78%), and Ashok Leyland (up 1.56%) ended higher even as the figures released by the Society of Indian Automobile Manufacturers (SIAM) for the month of September showed a mixed trend. Domestic passenger car sales registered a slower growth of 2.84% year-over-year, sales of two wheelers grew 14.51% and commercial vehicles sales declined 1% in September.

Tata Consultancy Services surged 10.52% after the company signed a deal with the Indian government valued over Rs.1000 crore for an e-governance project. Meanwhile, other IT stocks such as Satyam Computers, Infosys and Wipro also ended sharply higher.

Telecommunication stocks, Idea Cellular (up 14.17%), Bharti Aitel (up 7.41%) and Reliance Communication (up 19.92%) ended with notable gains.

S.Kumars Nationwide spurted 49% after the company said that its overseas unit SKNL Italy S.p.A. has finalized the purchase of Leggiuno S.p.A of Italy, a leading Italian high value shirting fabric enterprise. Era Infra Engineering advanced 5.89% after the company bagged new orders worth Rs.41.78 crore from Delhi Metro Rail Corporation

Axis Bank soared 20% after the bank’s net profit grew 77% for the September quarter compared to the corresponding period last year. Geojit Financial ended up 9.83% despite the company’s net profit declining around 25% for the September quarter. Tata Investment Corporation ended up 1.75% even as the company reported flat profit and sales growth in the 3 months ended September. Himalaya International added 7.31% after the company reported a more than 30% growth in its net profit for the September quarter.

ICICI Bank gained 16.71% after global rating agencies said the bank’s overseas arms have no significant sub-prime risks. Additionally the reports by the RBI deputy governor that the inspection of ICICI’s books has not revealed anything to cause alarm added to positive sentiment. Hindalco Industries spurted 10.66% on reports that the company’s Rs.5, 047-crore rights issue has sailed through following underwriting by promoters and banks.

Shipping Corporation of India rose 5.31% over reports that the company plans to buy four oil tankers worth $160 million each to meet rising demand. Aurobindo Pharma ended up 0.51% after the company received the final approval from US Food & Drug Administration for Risperidone tablets in multiple strengths.

Pyramid Saimira Theatre spurted 19.97% after the company said its chairman plans to raise stake in the company by buying about 24.9% of the equity from the founders. However, Dr Reddy’s Laboratories ended down 0.26% on reports that the company will face further pricing pressure on its generics business product portfolio.

Asian Markets

Markets across the Asia-Pacific region ended mostly higher on Monday after last week’s historic sell-off, as governments across the world intensified efforts to stabilize the world’s troubled financial system. Hong Kong’s Hang Seng index spurted 10.24%, Australia’s All Ordinaries index surged 5.14%, China’s Shanghai Composite index added 3.65% and South Korea’s KOSPI Composite index advanced 3.79%. The Japanese market was closed on account of a public holiday.

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Posted in Categories: Australia, Eurozone, Japan, New Zealand, Releases, Stocks, UK, USA.

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