India Stocks: Up over 3% tracking sharp gains in overseas markets

[K.Karthik Raja]

India Stocks: Up over 3% tracking sharp gains in overseas markets
Wednesday, Jul 9

MUMBAI - Sharp gains in overseas markets on drop in crude oil
prices and
positive comments from US Federal Reserve Chairman Ben Bernanke,
lifted local
share indices over 3%, dealers said.
"Market bias may remain positive on strong fund buying...and
surging
international indices. However, caution should be maintained on
account of the
prevalence of an intraday volatility," Sharekhan Securities said in a
report.
At 10:30AM, Bombay Stock Exchange's 30-share Sensex was at
13795.35, up
438.83 points, or 3.3%, but off the 13927.22 high made earlier.
National Stock Exchange's 50-share Nifty was at 4113.30, up 124.75
points,
or 3.1%, but off the 4156.00 high made earlier.
CNX Mid-cap Index roe 3%, and S&P CNX 500 Index was up nearly 4%.
On BSE, advances led declines 5.5:1.
BSE sector indices were up 2-5%, with banking, real estate, power,
and
capital goods indices being the top gainers.
Wall Street rallied overnight as crude oil prices fell to $136 a
barrel, and
on speculation the credit market losses would ease, after the US
Federal Reserve
said it may extend its emergency loan programme for investment banks
into 2009.
Key Asian markets were trading up 1-3% today.
HDFC Securities sees resistance for Nifty at 4150. It sees support
for Nifty
and Sensex at 3901 and 13027, respectively.
Shares of interest rate sensitive sectors were top gainers on the
back of
likely short covering, dealers said.
ICICI Bank, up nearly 8% at 640 rupees, was the top Nifty gainer.
The lender
has cut performance bonus pay for its senior management, including
Managing
Director and Chief Executive Officer Kamath, the bank's annual report
showed.
Reliance Communications rose nearly 6% to 439 rupees despite
reports the
deadline for exclusivity agreement between the company and South
African telecom
company MTN for a possible merger has not been extended.
Shares of power and capital goods companies extended gains from
the previous
session on hopes the nuclear deal would finally come through after the
Left
parties Tuesday said they were withdrawing support to the government.
Tata Power rose over 5% to 1,085 rupees. The company has received
a
favourable judgement from the Supreme Court allowing it to distribute
power to
retail customers.
SpiceJet surged over 10% to 33 rupees as the company's board is
likely to
meet today to discuss a preferential allotment of up to $100 mln to
tide over
a financial crunch, dealers said.
Shares of metal and technology companies were soft on concern of
slowing
demand in both sectors, dealers said.
Hindalco Industries, down 0.3% at 145 rupees, and Satyam Computer
Services,
down 0.2% at 467 rupees, were the only laggards on Nifty. End
.