Gujarat Polls, IT stocks spread X'mas cheer in markets

24 December 2007

Dalal Street has celebrated Christmas today. Bulls took complete control after fighting with bears last week. Positive results from Gujarat election, strong buying interest in technology stocks after long series of underperformance and positive global cues have supported the markets. Sensex gained over 700 points and the Nifty up over 200 points. Midcaps and small caps also joined the party. Tech, banks, metal, oil, power, telecom and capital goods stocks were the frontrunners. 

BJP has won Gujarat Election for fourth consecutive term and got 117 seats. Mr Narendra Modi will become Chief Minister for third consecutive term. It has given positive indication that the mid term poll will not happen in 2008. This election results cheered all Gujarat based companies' shares. Recently listed Mundra Port gained all-time high at Rs 1192, up 12%. Reliance Industries surged over 3%. Other major gainers were Gujarat Alkalies and Chemicals, Gujarat Ambuja Exports, Gujarat Apollo Industries, Gujarat NRE Coke, Gujarat Narmada Valley Fertilizers Company, Gujarat State Fertilizers Company and Gujarat Industries Power Co.

Market breadth was very strong; about 2077 shares have advanced, 981 shares declined, and 40 shares remained unchanged.

The BSE Sensex gained 716.43 points or 3.74% before closing the day at 19,854.12, up 691.55 points or 3.61%. The Nifty fifty ended at 5985.10, up 218.60 points.

Technology stocks outperformed all indices after long tenure of underperformance on the back of rupee appreciation. The BSE IT Index surged 6.3% in an intraday trade. It closed at 4,581.61, up 6.04%. Star performers were Wipro, Infosys, Satyam, TCS, HCL Tech, Patni Computer and Mphasis.

Top gainers on the bourses were Wipro, Infosys, HDFC, Satyam, Reliance Energy, GAIL, VSNL and PNB.