Sensex surges 278 points on Asian recovery

Under arrangement with Thomas White International*

Frontline Indian indexes made a very strong come back after yesterday's modest correction. The sharp recovery in other Asian markets after yesterday's fall helped the indexes to open sharply higher. Results from some of the frontline technology companies were better than expectations, which supported the positive sentiment.

Though inflation for the latest reporting week was higher than expectations, it is widely believed that price levels would moderate in the subsequent weeks. Market expectations about results of large companies remain positive.

Sensex closed with gains of 278 points at 13897 and the Nifty gained 86 points to end at 4084. Nifty April futures closed at a discount of just 1 point to the spot index.

Steel stocks opened firm and rallied in the afternoon to end with significant gains. SAIL was the best performing Nifty stock with gains of 6.68 per cent. Tata Steel closed 5.45 per cent higher

Among other metal stocks, Nalco rallied 3.07 per cent

Technology stocks led the rally in morning trades as Satyam and Wipro announced results. Satyam was the best performing tech stock, and ended 6.38 per cent higher. HCL Tech rallied 3.99 per cent

Among the heavyweights, Reliance Industries gained 3.29 per cent and ONGC closed 2.9 per cent higher

Among telecom stocks, Reliance Communications rallied 5.02 per cent while Bharti closed 3.33 per cent higher. Idea Cellular saw a major up move and closed 9.96 per cent higher

HDFC made a strong recovery after the recent decline and surged 5.68 per cent

Property stocks made a come back today, led by Unitech which added 9.73 per cent

Dabur India saw a correction after the recent gains and was the worst performer among Nifty stocks with losses of 3.05 per cent. HLL closed 0.73 per cent lower

Wipro gave up all its gains after the results announcement and ended 0.8 per cent lower

Hero Honda gave up 1.05 per cent and Bajaj Auto declined 0.28 per cent

Glaxo, VSNL and PNB were the other losers among Nifty components

Global markets / crude oil
US markets ended in a mixed fashion for the third successive session yesterday. The widely feared fall after the Asian decline yesterday did not happen as strong corporate results helped in sustaining the positive sentiment.

The Dow gained a marginal 0.05 per cent to another record closing high but the S&P 500 index slipped more than 0.1 per cent. Technology stocks remained weak despite strong results from Google and the NASDAQ lost more than 0.2 per cent.

Asian markets bounced back sharply after yesterday's rout. Shanghai, the worst performer yesterday, led the recovery with gains of over 3.9 per cent. Indonesia surged more than 2.6 per cent while Singapore closed more than 2.1 per cent higher. Hong Kong and South Korea ended with gains of 1.3 per cent each

Malaysia closed nearly 0.7 per cent higher while Japan added more than 0.45 per cent. Thailand closed with marginal gains.
Gains across Asia helped European markets to open higher and they are holding firm. Major European indexes are trading with gains of between 0.75 per cent and 1.35 per cent each in afternoon trading.

Crude oil prices ended with modest gains yesterday. Near month NYMEX futures ended 19 cents higher at $63.32 per barrel yesterday and are trading with gains of close to 0.5 per cent in European trading today.

Large-cap news flow

Mid-caps and small caps also gained ground, but gains were lower than the large cap stocks. The CNX Mid-cap index gained 48 points, or 0.94 per cent, to end at 5161. The BSE mid-cap index gained 0.83 per cent and the BSE small cap index closed a per cent higher.

Hindustan Oil Exploration resumed its rally and surged 16.77 per cent

Kopran, Today's Writing, Numeric Power and Aurionpro all closed at 10 per cent upper circuits

Gujarat Industries Power, SIL and Elgi Tyre were the other major gainers among mid and small-caps

Orient Press, Logix Micro, Blue Coast, Nilkamal Plastics, Carborundum Universal, Sagar Cements, Hindustan Composites, Unichem and JMT Auto were the major losers among mid-cap and small-cap stocks

Mid-cap news flow

Thomas White Global Research, part of the Thomas White International Group, publishes capital market research for global institutions and investment banks.

*Disclaimer: Thomas White International may have recommended some of the stocks specifically mentioned in this report to our clients. Lord Asset Management Trust, our mutual fund management associate, and our asset management division may also have positions in some of the stocks specifically mentioned in this report. As a policy, employees of Thomas White International are not allowed to invest or trade in common stocks and common stock derivatives. This report is only for the purpose of information and is not an investment advice. Readers are advised to consult a certified financial advisor before taking any investment decisions. While efforts have been made to ensure the accuracy of the information provided in the content, the author or publisher shall not be held responsible for any loss caused to any person whatsoever.