Market rebounds after four-day steep slide; Sensex vaults 536 points

Frenzied buying in battered pivotals along with short covering after four straight days of catastrophic fall triggered a solid rally on the bourses today. Strong global markets and a savage cut in crude oil for the second straight day yesterday, 16 July 2008 triggered the rally. The market breadth was strong. Except metal stocks, shares from other sectors rose

As per provisional data, foreign funds today, 17 July 2008, bought shares worth a net Rs 310.45 crore. Domestic funds bought shares worth a net Rs 168.02 crore.

Asian and European stocks rallied today, propelled by the biggest surge in US bank shares in 16 years and a sharp drop in oil prices, easing the worst fears about the global credit crisis spiralling out of control.

Political uncertainty will continue to weight on the market in the near term. The government is holding a two-day special session of parliament on 21 July 2008 and 22 July 2008 to seek vote of confidence after it was reduced to minority following withdrawal of support by Left parties on 8 July 2008. The government hopes to retain power due to backing from Samajwadi Party, a regional party in Uttar Pradesh.

The 30-share BSE Sensex surged 536.05 points or 4.26% at 13,111.85. The Sensex opened with a sharp 333.77 point upward gap at 12,909.57 and advanced further to touch a high of 13,150.35 in late trade. At the day's high, the Sensex surged 574.55 points. At the day�s low of 12,843.79 touched in mid-morning trade, the Sensex gained 267.99 points.

The broader based S&P CNX Nifty advanced 130.50 points or 3.42% at 3,947.20. Nifty July 2008 futures were at 3930.25, at a discount of 16.95 points as compared to spot closing.

The BSE Sensex shed 1350.44 points or 9.67% in four trading sessions to 12575.80 on 16 July 2008 from 13964.26 on 9 July 2008.

The BSE Sensex is down 7175.14 points or 35.36% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 8094.92 points or 38.17% away from its all-time high of 21,206.77 struck on 10 January 2008.

The market breadth was strong on BSE with 1529 shares advancing as compared to 1092 that declined. 70 remained unchanged.

The BSE Mid-Cap index was up 1.32% to 5,155.34 and the BSE Small-Cap index rose 0.99% to 6,387.12. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 4847 crore as compared to Rs 4,611.44 crore on Wednesday, 16 July 2008. NSE's futures & options (F&O) segment turnover was Rs 46,300.96 crore, which was higher than Rs 45,738.28 crore on Wednesday, 16 July 2008.

Among the 30-member Sensex pack, 27 advanced while the rest declined

India�s largest real estate developer in terms of market capitalisation DLF galloped 10.93% to Rs 437 on 20.58 lakh shares. It was the top gainer from the Sensex pack.

Auto shares advanced on fresh buying. India�s top small car maker in terms of sales Maruti Suzki India surged 9.52% to Rs 600. Mahindra & Mahindra (up 4.31% to Rs 514.95), Hero Honda Motors (up 2.89% to Rs 657.20), and Tata Motors (up 3.44% to Rs 409), rose

India�s largest private sector firm by market capitalization and oil refiner Reliance Industries rose 4.15% at Rs 2026.15 on 11.07 lakh shares. The stock moved in a range of Rs 2030 and Rs 1965 so far during the day.

Capital goods heavyweights advanced. India�s largest engineering & construction company in terms of order book position Larsen & Toubro jumped 8.11% to Rs 2454.50. The stock is trading 1:1 cum bonus.

India�s largest power equipment maker in terms of sales Bharat Heavy Electricals advanced 5.75% to Rs 1460.50.

India's largest dedicated housing finance company in terms of operating income HDFC vaulted 9.38% to Rs 1881.8. The company reported 25.56% rise in net profit to Rs 468.11 crore on a 26.67% increase in total income to Rs 2318.62 crore in Q1 June 2008 over Q1 June 2007. The results were announced during trading hours yesterday, 16 July 2008.

HDFC chairman Deepak Parekh yesterday denied rumors that Citigroup may sell its 11.74% stake in HDFC to Oman Investment Corporation.

Banking shares witnessed across-the-board rally ahead of the inflation data to be released after market hours today. HDFC Bank (up 5.57% to Rs 955.50), State Bank of India (up 9.33% to Rs 1245), and ICICI Bank (up 6.92% to Rs 555.55), also gained.

Mid-cap banks, Kotak Mahindra Bank (up 4.26% to Rs 465), Axis Bank (up 10.02% to Rs 643), Union Bank of India (up 7.89% to Rs 108), Bank of India (up 7.31% to Rs 243.65), also joined the rally.

Starting this week the government will inflation data every Thursday at 17:00 IST instead of mid-day every Friday.

India�s largest cellular services provider in terms of market capitalisation Bharati Airtel advanced 1.87% to Rs 744, Reliance Communications, the country�s second largest cellular services provider in terms of market capitalisation rose 4.66% to Rs 417.90.

Two oil exploration heavyweights saw divergent trend. Oil & Natural Gas Corporation (ONGC) soared 4.22% to Rs 902.90 while Cairn India lost 3.77% to Rs 215.90

India�s largest cigarette manufacturer in terms of sales ITC gained 3.51% to Rs 168. As per recent reports Amar Singh, whose Samajwadi Party is the key to the survival of the ruling Congress-led UPA Government wants the Unit Trust of India (UTI) and other public financial institutions to divest their stake in ITC in favour of British American Tobacco (BAT). Public financial institutions have a combined 37.62% (as at end March 2008) holding in ITC, which includes 11.90% of UTI and 13.65% of Life Insurance Corporation of India.

IT pivotals rallied. TCS surged 6.83% to Rs 773 after the company reported 8.58% rise in net profit to Rs 1204.01 crore on a 5.99% increase in total income to Rs 5321.88 crore in Q1 June 2008 over Q4 March 2007. The results were declared after market hours yesterday, 16 July 2008.

Infosys Technologies (up 2.25% to Rs 1581), Satyam Computer Services (up 5.26% to Rs 415.25), and Wipro (up 2.36% to Rs 380), edged higher from IT pack.

Reliance Infrastructure (up 4.67% to Rs 801.25), Jaiprakash Associates (up 9.34% to Rs 149.25), were the other gainers from Sensex pack.

India�s largest pharma company in terms of sales Ranbaxy Laboratories was the top loser from the Sensex pack. The stock slumped 3.89% to Rs 452.40 on profit booking after surging 15.03% to Rs 470.70 yesterday, 16 July 2008. The counter saw high volumes of 69.68 lakh shares. The stock surged wildly in a range of Rs 494.40 and Rs 431 today.

The stock galloped after the company's chief executive Malvinder Singh yesterday, 16 July 2008 said in a televised conference that the deal with Japan's Daiichi Sankyo remains on track. He also said that the firm would provide all information required for a probe by the US authorities within the next month.

Steel stocks extended early losses on reports the government may consider setting up a price band for steel products to control inflation. Tata Steel (down 2.91% to Rs 607.50), Sail (down 6.29% to Rs 119.20), and Kalyani Steel (down 1.05% to Rs 146), declined from steel sector.

Besides metal stocks like Sterlite Industries (down 5.69% to Rs 608), National Aluminium Company (down 4.78% to Rs 336.50), and Hinstan Zinc (down 0.02% to Rs 527.80) were not spared either.

Ranbaxy Laboratories was the top traded counter on BSE with turnover of Rs 316.39 crore followed by Reliance Petroleum (Rs 288.68 crore), Reliance Capital (Rs 243.26 crore), Reliance Industries (Rs 221.65 crore), and Larsen & Toubro (Rs 176.10 crore), in that order.

Reliance Petroleum led the volumes chart notching volumes of 1.92 crore shares followed by Reliance Natural Resources (1.56 crore shares), IFCI (1.45 crore shares), Ispat Industries (1.05 crore shares) and Chambal Fertilisers (89.55 lakh shares), in that order.

State run oil-marketing companies extended yesterday gains after sharp fall in crude oil prices for the second straight day yesterday, 16 July 2008. Hindustan Petroleum Corporation (up 5.10% to Rs 207.95), Bharat Petroleum Corporation (up 7.74% to Rs 272.10), and Indian Oil Corporation (up 6.16% to Rs 363.90), surged.

HCL Technologies was down 1.21% to Rs 212.75 after the company said on Wednesday, 16 July 2008, it has acquired UK based business process outsourcing provider Liberata Financial Services. The company made this announcement after trading hours on Wednesday, 16 July 2008.

Biocon fell 6.96% to Rs 350 after posting 71.66% fall in consolidated net profit to Rs 15.02 crore in Q1 June 2008 over Q1 June 2007. The company announced the results during trading hours today, 17 July 2008.

BGR Energy Systems spurted 20% to Rs 297.35 after the company said during trading hours on Wednesday, 16 July 2008, it has secured a contract worth Rs 4900 crore for engineering, procurement and construction of a thermal power project in Rajasthan. The stock surged 13.41% to Rs 247.80 on Wednesday, 16 July 2008

Chambal Fertilisers & Chemicals declined 0.20% to Rs 57.10 on reporting 61.44% fall in net profit to Rs 23.80 crore on 31.90% rise in total income to Rs 843.78 crore in Q1 June 2008 over Q1 June 2007. The company announced the results after trading hours yesterday, 16 July 2008.

Polaris Software Lab spurted 17.30% to Rs 80 after posting 40.27% surge in net profit to Rs 19 crore on 11.59% growth in net sales to Rs 267.12 crore in Q1 June 2008 over Q4 March 2008. The company announced the results during trading hours today, 17 July 2008.

Unichem Laboratories gained 7.89% to Rs 176 on reporting 48.34% surge in net profit to Rs 33.38 crore on 18.27% increase in net sales to Rs 181.54 crore in Q1 June 2008 over Q1 June 2007. The company made this announcement during trading hours today, 17 July 2008.

Among the side counters, ORG Information (up 20% to Rs 22.80), First Winner Industries (up 15.75% to Rs 119.50), IVRCL Infrastructures (up 14.55% to Rs 296), Eimco Elecon (up 12.40% to Rs 285), Hitachi Home & Life Solutions (up 13.77% to Rs 128.50), Astral Polytecnik (up 12.68% to Rs 160), Siemens (up 9.68% to Rs 473.20), Essar Shipping (up 10% to Rs 96.05), Balaji Telefilms (up 9.27% to Rs 162), Gokul Refoils (up 8.32% to Rs 191.40), surged.

Ace Software (down 13.23% to Rs 11.15), Nahar Industrial (down 9.55% to Rs 38.35), and Deltron Cables (down 9.41% to Rs 90), slipped.

Crude oil was up 26 cents at $134.86 today, 17 July 2008. On the New York Mercantile Exchange, August crude plunged $4.14 to $134.60 a barrel yesterday, 16 July 2008.

The Reserve Bank of India (RBI) may reportedly opt for further tightening of money supply as there is no likelihood of inflation coming down to single digit figure in the next six months based on indications given by the central bank Governor to a parliamentary panel.

European markets, which opened after Indian markets edged higher trade. Key benchmark indices in UK, Germany and France were up by between 1.78% and 2.21%.

Most Asian markets, which opened before Indian markets, were trading higher today, 17 July 2008. Key benchmark indices in Japan, Hong Kong, Taiwan, Singapore and South Korea were up by between 1% and 3.93%. However China's Shanghai Composite fell 0.78%.

US markets surged yesterday, 16 July 2008 led by financial stocks, after unexpectedly strong results from Wells Fargo & Co, the fifth-largest US bank and mortgage lender, eased worries about the on-going credit crisis. A drop in oil prices also aided the upmove.

The Dow Jones industrial average soared 276.74 points, or 2.52%, to 11,239.28. The S&P 500 index rose 30.45 points, or 2.51%, to 1,245.36, and the Nasdaq Composite index advanced 69.14 points, or 3.12%, to 2,284.85.