Sensex up 893 points, biggest single day rally

The Indian markets cheers with strong opening and
remained up throughout the day. Strong global cues,
controlled oil prices and soft stand by the left parties on
Indo-US nuke deal talks supported today’s rally. Sensex
opened at 19336.96 up 301.48 and fell to its initial level in
the early trade. Index heavyweights Reliance Industries,
SBIN, HDFC Bank and Power stocks fuelled the Sensex
and touched the day’s high of 19987.71, biggest single
day rally of 952.23 points. It closed at 893.58 points
(4.69%) up from previous close at 19,987.71.
As per reports (Economic Times) nearly 50 applications
for FII registrations, including from Morgan Stanley,
Citigroup, Bank of America, CLSA and hedge fund DE
Shaw, have been cleared by SEBI since mid-October
2007 when the curbs on participatory notes (PNs),
derivatives that allowed foreign investors to trade on the
Indian markets, were imposed by the market regulator.
DLF gained 2.42% to Rs 927.55. DLF is acquiring the
privately-held super luxury resorts and spa chain
Singapore-based Amanresorts for around $ 250 mn. This
will be the first overseas acquisition by India's largest real
estate company.
Bharti Airtel surged 3.01% to Rs 859.40 on reports that it
added 2.03 million subscribers in October 2007.
Reliance Industries increased by 7.25% to Rs 2888.45 on
reports that it has increased the prices of Petrol & Diesel
as the crude oil reached USD 100 per barrel.
NSE benchmark Nifty 50 index closed at 5,937.90 points
up 4.26%.
The market breadth in today’s trade remained positive
with about 2025 shares advancing, 763 shares declining,
and 61 shares remained unchanged.
Currently PE of the Sensex stands at 25.71
Asian stocks moved up with Wall Street on weak Yen
and reasurance from Financial firms over exposure to
credit crisis. Wal Mart’s more than expected profits
signaled that US consumers will keep spending
increases the investors confidence.
European indices rose following the gain in Wall street
and Asian markets after reassurance from Goldman
Sachs and HSBC eased fears on credit crisis. Declining
Oil prices also contributed to investors sentiment.
U.S. stocks, last night, has seen a pull back after four
days of continuous fall with NASDAQ posting its biggest
gain in more than four years after news that Apple Inc
was in talks to offer iPhones in China. This caused heavy
buying of technology stocks. Also US stocks rallied after
Wal-Mart Stores Inc.'s profit hit above expected mark and
Goldman Sachs Group Inc. said it doesn't plan any
significant write downs on mortgage- related assets.
Falling crude oil prices also easing concerns on inflation.
European indices that have opened flat to negative were
trading mixed. European equities rose to day’s high on
Monday and wiped out early losses, supported by gains
in beaten down banks as Barclays, Royal Bank of
Scotland and UBS all rose between 2 - 4.5%. UK’s FTSE
100 index rose 0.6% boosted by a 14% jump in insures
Standard Life after it withdrew from a 4.9 billion pound
battle for rival resolution.