Post Market Commentary - March 25 2008

Sensex vaults 928 points in second biggest single-day rally

Intense buying in frontline stocks saw the Sensex breach 16,000 mark today. Buoyancy was visible across the global markets. The rally was triggered by JP Morgan raising Bear Stearns acquisition price by 5 times and US economic data that showed US new home sales had risen 3% in February 2008.

In the domestic front, all the sectoral indices on BSE ended higher. Banking, IT and realty stocks posted impressive gains. Mid-cap and small-cap stocks surged. The market breadth was strong.

BSE Sensex rose 928.09 points or 6.07% to 16,217.49, its second biggest single-day rally in points as well as percentage terms.

CNX S&P Nifty jumped 267.65 points or 5.81% at 4877.50.

As per provisional data, foreign funds bought shares worth a net Rs 1246.12 crore today, 25 March 2008. Mutual funds bought shares worth a net Rs 399.97 crore.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 5.16% to Rs 2314.40. The firm is reportedly evaluating a plan to set up its third refinery at Jamnagar in an ambitious project to reach a total capacity of 100 million metric tonne per annum (mmtpa), the largest at a single location in the world.

Chemicals maker GHCL surged 16.28% to Rs 86.80 after the company said it plans to spin off its home textiles and retail businesses into separate units as part of a restructuring plan.

Software firm Prithvi Information Solutions surged 9.69% to Rs 154.50 after the software services firm said its board will consider a share buyback proposal on 31 March 2008.

Steel pipes maker Welspun Gujarat Stahl Rohren jumped 12.93% to Rs 332.35 after the company said it has bagged pipeline orders worth Rs 1,075 crore for the supply of spiral pipes to Northern Africa.

Apparels maker Gokaldas Exports advanced 8.73% to Rs 185 on reports the company has secured an order to supply 2.50 lakh units of sportswear like jumpers, track-suits & vests for the thousands of athletes participating in Beijing Olympics.

Apparels firm Arvind Mills jumped 5.44% to Rs 36.85 after the company said Arvind Brands a division of the company has signed an agreement with Philips-Van Heusen Corporation for designing, distribution & retailing of IZOD brand in India.

Future Capital Holdings, the financial services arm of the Future Group, jumped 7.74% to Rs 589.20 after the company said its board has approved to invest upto Rs 47.75 crore in its subsidiary Future Finmart.

Cement maker Prism Cement soared 9.77% to Rs 42.15 after 14 lakh shares, or 0.47% of the company's equity, changed hands in a block deal on NSE at Rs 39.55 each.

Power equipment maker Jyoti Structures spurted 4.07% to Rs 162.30 after its secured an order worth Rs 160 crore for construction of transmission line and sub-stations in Uganda.