Asian Economic News
Indian Market Rallies
9/30/2009 7:26 AM ET
(RTTNews) -
Liquidity-driven rally on expectations of buoyant quarterly results from blue chip companies and a strong debut by Oil India on the stock exchanges lifted the Indian market sharply higher to a new 52-week high. An intra-day recovery in Asian stocks, firm European markets and higher U.S. stock futures also helped improve sentiment.
After a flat opening at 16,868, the BSE Sensex rose steadily to finish near the day's high. The Sensex jumped by 274 points or 1.63% to 17,127, its best closing since May 2008. Likewise, the S&P CNX Nifty closed at 5,084, up 77 points or 1.54%. On the BSE, the mid-cap and the small-cap indexes moved up around 0.95% each, underperforming large-caps. The market breadth was fairly positive, with 1598 gainers versus 1183 losers.
Sector-wise, banking stocks outperformed the broader market on hopes the central bank would hike banks' exposure limit on their held- to- maturity debt portfolio by 2-3 percent. Auto, capital goods, metal, realty and IT stocks followed, but FMCG and consumer durable stocks ended on a subdued note.
Among the top gainers, SBI jumped 5% and ICICI Bank rallied 4.63%, while Maruti Suzuki, Mahindra & Mahindra, Sterlite Industries and Wipro advanced over 3% each. Reliance Communication, DLF, BHEL, Larsen & Toubro, HDFC Bank, Reliance Industries, Hindalco, TCS, Jaiprakash Associates and Tata Steel were the other prominent gainers.
However, ONGC, ITC, Grasim Industries and Bharti Airtel ended in negative territory. An official announcement on the fate of a merger deal between Bharti and South Africa's MTN is expected later in the day.
Oil India closed at Rs.1,140.55 on its debut, a premium of 8.62% to its IPO price of Rs.1,050 per share. Reliance Industries rose 1.63% and Cairn India added 0.31%.
Larsen & Toubro advanced 2.15% on reports it plans to build nuclear power plants with generating capacity of 3,000 MW to 4,000 MW every year. Siemens edged up 0.61% after it bagged two orders worth Rs 360 crore from state-run Power Grid Corp for commissioning of power substations.
Aviation stocks ended mixed after pilots of state-run carrier Air India called off their four-day strike over cut in their performance-linked incentives and arrears on Wednesday morning following Centre's intervention. While Kingfisher ended down 0.62%, Jet Airways edged up 0.43% and Spice Jet added 0.28%
ABG Shipyard slipped 0.77% after it sought the consent of its shareholders to raise its borrowing limit to Rs 12,000-crore from Rs 7,500-crore. Amtek Auto closed unchanged after it raised an additional $75 million through the issue of foreign currency convertible bonds.
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