Sensex spurts 692 points in global rally

The market surged today as software shares spurted ahead of Q3 December 2007 earnings reporting season. Strong global cues also boosted the sentiments. Bharti Airtel spurted. Reliance Industries edged higher. Reliance Energy hit all time high. The market breadth was strong. 27 out of 30 stock from the Sensex pack were in green.

A stronger-than-expected US consumer spending calmed fears the world's top economy was heading into a recession. The market also cheered a comfortable victory for Bharatiya Janata Party (BJP) in the Gujarat state election, as it helped lessen worries that the ruling Congress party could call an early national election.

In a spectacular victory, the Bhartiya Janta Party (BJP) got an absolute majority in the Gujarat assembly elections capturing power for the fourth straight time propelled by Chief Minister Narendra Modi who gets a third term in office. The BJP got 117 seats, just five short of a two-thirds majority in a house of 182. The Congress, whose earlier tally was 51, got 62 seats marginally improving its position over 2002 elections. Others have got three seats.

The FTSE 100 index in UK was up 0.40%. Asian markets, which opened before Indian market, were firm.

The 30-share BSE Sensex rose 691.55 points or 3.61% to 19,854.12. Sensex hit a high of 19,879. At day's high, the Sensex gained of 716.43 points.

The broader CNX S&P Nifty rose 218.60 points or 3.79% to 5985.10.

The BSE Mid-Cap index rose 2.06% to 9,211.71. The BSE Small-Cap index climbed 1.42% to 11,980.57. Both these indices underperformed the Sensex.

The market breadth was strong. On BSE, 1966 shares advanced as compared to 941 that declined. 30 shares were unchanged.

BSE clocked a turnover of Rs 5657 crore, compared to Thursday (20 December 2007)'s Rs 6,259.25 crore.

Nifty December 2007 futures were at 6009.50, a premium of 24.4 points as compared to the spot closing of 5985.10.

The NSE's futures & options (F&O) segment turnover was Rs 80,577.10 crore, which was higher than Rs 73,067.55 crore on Thursday, 20 December 2007.

India's largest private sector firm by market capitalization & oil refiner Reliance Industries rose 2.70% to Rs 2788.05, off day's low of Rs 2714.

India’s largest dedicated housing financing firm by operating income Housing Development Finance Corporation (HDFC) soared 6.33% to Rs 2897.35.

India’s largest real estate firm by market capitalisation DLF rose 1.08% to Rs 971.65 on reports the company has received regulatory approval to launch the initial public offer of DLF Offices Trust in Singapore for raising about $1.5 billion. The IPO of DLF Offices Trust, a Real Estate Investment Trust (REIT) of K P Singh-promoted DLF Assets, is expected to come in January next year, the reports added.

India's largest listed cellular service provider by sales Bharti Airtel gained 6.07% to Rs 970.15. As per reports, Bharti Enterprises may reportedly acquire Big Apple, the Delhi-based supermarket chain with 65 stores.

The BSE Bankex rose 3.38% to 11,101.74. It underperformed the Sensex. India’s largest private sector bank by assets ICICI Bank rose 4.40% to Rs 1207.90. Recently, CLSA gave a buy rating on the stock with a price target of Rs 1,400.

Punjab National Bank soared 6.53% to Rs 661.75, Indian Overseas Bank jumped 5.69% to Rs 174.60, Oriental bank of Commerce spurted 3.66% to Rs 261.95, Bank of Baroda rose 2.92% to Rs 415.70 and HDFC Bank gained 2.89% to Rs 1694.35.

IT stocks climbed on hopes the US economy may avoid a recession. The BSE IT index 6.04% to 4,581.61. It outperformed the Sensex. India's second largest software exporter by sales Infosys Technologies soared 6.63% to Rs 1810.90.

India’s third largest software exporter by sales Wipro soared 8.86% to Rs 535.30 on reports it may bid for France's Capgemini by the end of January 2008 in a deal valuing the latter at around $7 billion.

Satyam Computer Service gained 6.28% to Rs 454.55, TCS rose 6.07% to Rs 1108.70 and HCL Technologies 5.39% to Rs 327.45. Indian software firms derive more than half of their revenue in dollar terms.

Select PSU stocks gained on reports the government plans to ask blue-chip public sector units (PSUs) to issue bonus shares, as their reserves and surplus have increased to several times their paid-up capital. The BSE PSU index rose 2.21% to 9,722.81. It underperformed the Sensex.

GAIL (India) surged 9.01% to Rs 522.75, ONGC rose 4.75% to Rs 1,247.40, Bharat Heavy Electricals climbed 5.08% to Rs 2,489.25, HPCL rose 2.33% to Rs 318.50 and BPCL gained 4.36% to Rs 450.85.

The BSE Power index rose 3.37% to 4,353.21. It underperformed the Sensex. Areva T&D surged 10.50% to Rs 2479.15, Reliance Energy jumped 6.14% to Rs 2058.90, Tata Power Spurted 3.23% to Rs 1326.10, CESC rose 3.16% to Rs 602.90 and NTPC gained 2.99% to Rs 236.25.

The BSE Metal index rose 3% to 18,820.79. It underperformed the Sensex. Jindal Saw jumped 6.93% to Rs 1014.95, National Aluminum Company (Nalco) rose 5.49% to Rs 445.50, Tata Steel rose 4.57% to Rs 862.50, Sterlite Industries rose 4.56% to Rs 1000.40 and Steel Authority of India rose 1.59% to Rs 268.45.

Two-wheeler maker TVS Motor Company gained 1.94% to Rs 71.10 on reports the Madras high court has suspended an interim order restraining TVS Motor from booking or selling its recently launched 125-cc bike 'Flame'. The bench posted the case to 4 January and 5 January 2008, for further hearing of all the petitions.

Automobile tyre maker Apollo Tyres gained 3.90% to Rs 49.25 on reports that it is close to acquiring a South East Asian tyre maker. The acquisition would be finalised early next year.

Construction firm Nagarjuna Construction Company jumped 5.51% to Rs 339.75 after it bagged an order worth about Rs 570 crore order from the Government of Oman for Wadi Adai Al Amerat road project.

India's top tractor maker by sales Mahindra & Mahindra jumped 4.85% to Rs 823.55 on reports it is in talks with Renault to assemble and market its utility vehicle Scorpio in US market.

The largest engineering conglomerate in south east Asia Larsen & Toubro rose 2.63% to Rs 4088.70 on reports it has floated a power generation firm Larsen & Toubro Power Development and is planning to generate 5,000 megawatt in the next five years.

India's largest wind turbine maker Suzlon Energy gained 3.79% to Rs 1906.30 after the company said it has secured an order from ONGC, India's leading oil & gas exploration & production company for 51 megawatt of wind turbine capacity.

Info Edge India rose 3.30% to Rs 1334.20 after the company said its board had approved raising the foreign fund limit to 40% of paid-up capital from 24% earlier. The board also approved raising Rs 500 crore through various means.

Speciality chemicals maker Jayant Agro Organics rose 2.23% to Rs 110.10 after the company said its board approved issuing 6 lakh shares to Japan's Itoh Oil Chemicals Company at Rs 105 each. The board also approved raising up to $20 million through foreign currency convertible bonds. The company will also issue 1.3 million warrants to promoters and 4 lakh warrants to public at Rs 105 each.

Industrial gas equipment maker BOC India gained 1.31% to Rs 193.95 on reports that the firm has signed a deal with a real estate firm to develop its property at Santhanagar, Hyderabad.

Engineering firm Gujarat Apollo Industries jumped 3.12% to Rs 327.60 on reports the management of the company has concluded the negotiations for the disinvestment of its 49% holding in Johnson Screens (India), a joint venture company with Johnson Screens, USA (A Weatherford company).

IFCI clocked the highest turnover of Rs 300.54 crore on BSE. Reliance Energy (Rs 242.95 crore), Mundra Port & Special Economic Zone (Rs 143.35 crore), Reliance Industries (Rs 131.91 crore) and Reliance Petroleum (Rs 130.55 crore), were the other turnover toppers on BSE in that order.

IFCI clocked the highest volumes of 3.81 crore shares on BSE. Bellary Steels & Alloys (2.42 crore shares), Ispat Industries (1.34 crore shares), IKF Technologies (1.33 crore shares) and Kashyap Technologies (1.08 crore shares), were the other volume toppers on BSE in that order.

Asian stocks edged higher today, 19 December 2007, tracking overnight gain in US stocks. Key benchmark indices in Hong Kong, Japan, Singapore, Taiwan and China were up by between 1.07% to 2.60%.

US markets ended higher on Friday, 21 December 2007, led by technology and energy stocks. The Dow Jones Industrial Average gained 205 points at 13451. The Nasdaq Composite index advanced 51 points to 2692, and the S&P 500 index rose 24 points at 1484.

Crude oil for February delivery traded 9 cents lower at $93.22 a barrel in New York Mercantile Exchange electronic trading.

The market regulator Securities & Exchange Board of India (Sebi) on Thursday, 20 December 2007, cleared proposal to allow short selling by institutional investors. In order to provide a mechanism for borrowing of securities to enable settlement of securities sold short, it has also been decided to put in place a full-fledged securities lending and borrowing (SLB) scheme for all market participants in the Indian securities market, Sebi said.

Naked short selling will not be permitted in the Indian securities market and accordingly, all investors would be required to mandatorily honour their obligation of delivering the securities at the time of settlement, Sebi said.

Annual inflation, based on the wholesale price index (WPI), rose 3.65% in the week ended 8 December 2007, lower than previous week's 3.75% rise, data released by the government during trading hours on Thursday, 20 December 2007 showed.

UK gamers spend £1.5bn on titles

UK gamers have spent a record-breaking £1.52bn on titles in 2007, up 25% on last year and with two weeks of sales yet to be counted. Sales of video games in the UK are now at an all-time high, with more than 78 million titles sold, buoyed by new hardware and the success of the Wii. Last week more than £87.9m worth of games were sold, setting a new record. Paul Jackson, director general of industry body Elspa, said games were now truly mass market. Videogaming is enjoyed by everyone, young and old, male and female, he said. The games industry has been enjoying critical and commercial success in recent months, with a plethora of titles heralding what has been described as a golden age for the industry. Games like Super Mario Galaxy, Bioshock, Call of Duty 4 and Halo 3 have won numerous awards and received praise from reviewers and gamers alike. More than 11 million consoles were sold in the third quarter of the year, up 33% on last year as consumers flock to new machines, like the Wii, PlayStation 3 and Xbox 360. Games on consoles now account for 79% of all software sales.

Aviva to open four branches in Gujarat

Aviva Life Insurance, planning to double its sales force next year in western India, will set up four new branches in Gujarat in 2008 and foray into bancassurance tie-ups with cooperative banks and others to aim new customers. Last year, Aviva unveiled 23 new branches, taking the total number to 50 branches covering Gujarat, Maharashtra, Madhya Pradesh, Chhattisgarh and Goa. It now has plans to double its field force capacity from the current 14,000 financial planning advisors (FPA) in this region. Aviva is also present in over 505 locations through its existing bancassurance partnerships in western India. The company is aiming youth between 22 and 30 years of age for expansion of its market.

Bajaj Allianz sets up hub centre

Bajaj Allianz Life Insurance Company has set up a hub centre exclusively for a regional rural bank, at Dharwad. The Karnataka Vikas Grameen Bank (KVGB) said here on Dec 20 that a hub center exclusively for a regional rural bank is the first of its kind in the country. The Dharwad-headquartered KVGB is a regional rural bank sponsored by Syndicate Bank. Various policies of Bajaj Allianz Life Insurance Company will be available in the shortest time at the branches of KVGB. The opening of hub centre is hoped to accelerate the disposal of proposals. The bank had already brought 20,000 people under the insurance fold.

Tatas ask Orient Express Hotels to apologise

Taj Hotels (Indian Hotels Company of Tata Group) has demanded an immediate apology from US-based Orient Express Hotels (OEH) for what it said was misinformation and libellous language contained in a recent letter by OEH President & CEO, Mr Paul White, turning town the Indian company''s request for alliance negotiations. Mr White''s letter had said that that OEH did not wish to be involved in an attempt to improve the performance of Taj''s non-Indian properties; and that an association with Taj''s brands and properties would result in a decrease of OEH brands and erosion in its RevPar premiums. The Indian company''s letter supplied figures to show that on financial parameters, it compared better against OEH.

OEH''s average room rate was meaningfully below those of Taj Hotels properties at $302, against $383 for Taj. Taj Hotels had acquired a 10 per cent stake in OEH in September this year, increasing it to 11.5 per cent later only to have a serious and credible foundation for discussions with the OEH board, the letter said: they acted in the mistaken belief that your Board recognised its fiduciary duties and would act in a responsible manner to begin a dialogue with them.

Indian aviation industry flies high

India''s crowded skies saw the first wave of consolidation as some airlines merged and others gobbled up a rival to gain market share and cut losses during the year 2007 that was also marked by a rapid increase in air travellers, infrastructure hurdles and addition of new planes.Domestic passenger traffic soared by almost 40 per cent this year. This prompted nearly all the airlines to place orders for buying new aircraft, undeterred by the fact that they posted combined losses of about Rs 2,000 crore largely on account of rising fuel costs and payments of aircraft.

Indian carriers have inducted about 150 aircraft in the past two years, taking the total number of planes with them to more than 310. They will be adding close to 500 aircraft over the next few years to expand operations. The increase in the number of planes, coupled with more foreign flights, put immense pressure on the hard-pressed aviation infrastructure. This forced the Civil Aviation Ministry to start working on a policy to encourage private or merchant airports, besides expediting airport modernisation works in Delhi, Mumbai and other major cities.

The Airports Authority of India also started work on 35 non-metro airports, and called for bids for developing the city-side of these airports. Government will also set up an Airport Economic Regulatory Authority to deal with the emerging scenario of private airport operators. A major achievement this year was that no accident occurred, the best record in the past seven years. However, a number of ''air-miss'' incidents were registered, including one involving a special aircraft carrying UPA Chairperson Sonia Gandhi. But aviation authorities maintained that these were procedural failures and would never have caused an accident.

IDBI Fortis Life gets IRDA nod

The Insurance Regulatory and Development Authority (IRDA) has given certificate of registration to IDBI Fortis Life Insurance Co Ltd, a joint venture life insurance company promoted by IDBI, Federal Bank, India and Fortis Insurance International, Netherlands. With this registration, the total number of life insurers registered with the Authority has gone up to18, according to an IRDA notification.