The Bombay Stock Exchange Sensitive index registered its biggest gain in more than four years, as Finance Minister P Chidambaram joined governments around the world to step up efforts to improve liquidity in the system.
Shares zoomed after Chidambaram’s statement, made before the market opened today, said India will shortly announce more measures to increase the amount of cash in the financial system. He said the government, the Reserve Bank of India and the Securities & Exchange Board of India were working on a coordinated action plan.
The domestic markets also took heart from the sharp increase in other global indices following the steps taken by several countries to save their banking system from a possible collapse. The UK government today agreed to invest $64 billion in leading UK banks, Europe agreed to keep distressed lenders afloat, and Australia and New Zealand guaranteed bank deposits.
Banking stocks led the rally in Indian stock exchanges, with ICICI Bank climbing by a record 17 per cent to Rs 425.15 after reassuring statements issued by the bank’s CEO KV Kamath. The bank’s shares fell by a record 20 per cent on Friday.
State Bank of India climbed 11 per cent, the most in more than 15 years.
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The Sensex rose 781.24, or 7.4 per cent, to 11,309.09, its biggest gain since May 18, 2004. The S&P CNX Nifty Index on the National Stock Exchange climbed 210.75, or 6.4 per cent, to 3,490.70. The BSE 200 Index added 6.9 per cent to 1,339.56. Nifty futures for October delivery added 7 percent to 3,534.10.
In Europe, the key benchmarks in the UK, Germany and France were up between 4.93 and 6.93 per cent while in Asian markets, top indices including Hang Seng, Shanghai Composite, Straits Times and Seoul Composite rose between 3.65 and 9.35 per cent. Taiwan Weighted fell 2.15 per cent.
| ASIA | 13-Oct | % Chg* |
| Hang Seng | 16312.16 | 10.24 |
| Sensex | 11309.09 | 7.42 |
| Straits Times | 2076.35 | 6.57 |
| SET | 476.33 | 5.39 |
| Kospi | 1288.53 | 3.79 |
| Shanghai Composite | 2073.57 | 3.65 |
| EUROPE # | ||
| DAX | 5062.45 | 11.40 |
| CAC 40 | 3531.50 | 11.18 |
| FTSE 100 | 4256.90 | 8.26 |
| US ^ | ||
| Dow Jones | 8960.30 | 6.02 |
| Nasdaq 100 | 1753.30 | 6.29 |
| * over previous close # at close ^at 12 midnight (IST) | ||
Reliance Communications was the top gainer among the Sensex stocks — up 18.93 per cent at Rs 282. Mahindra and Mahindra, Larsen & Toubro, Reliance Infrastructure Ltd, Hindalco, HDFC Bank and Bhel were the other top gainers in the range of 10-16 percent.
According to Sanjay Sinha, chief executive officer at DBS Chola Mandalam Mutual Fund, the markets may not slide from here on as badly as they did during the last week. "The fall in stocks last week was only due to excessive short selling. Besides, liquidity conditions may ease within a couple of months," said Sinha.
However, Kashmira Mehta, institutional dealer at a Mumbai-based brokerage CD Equity Search, says there may not be much upside in the markets for now.
| GAINERS & LOSERS Top gainers | ||
| 13-Oct | % Chg* | |
| Reliance Comm | 282.35 | 18.93 |
| Reliance Infra | 601.65 | 16.76 |
| ICICI Bank | 425.10 | 16.75 |
| Sterlite Ind | 317.70 | 15.84 |
| HDFC Bank | 1179.70 | 12.74 |
| Mah & Mah | 520.75 | 11.94 |
| Larsen & Toubro | 988.30 | 11.15 |
| SBI | 1501.75 | 11.06 |
| BHEL | 1494.20 | 11.02 |
| TCS | 575.80 | 10.10 |
| Top losers | ||
| Ranbaxy Labs | 274.65 | -6.07 |
| ONGC | 915.60 | -0.03 |
| Rupee stable | ||
| Open | 48.23 | |
| High | 48.31 | |
| Low | 48.00 | |
| Close | 48.26 | |
| Call Rate COOLS (%) | ||
| Oct 10,2008 | 16.00 | |
| Oct 13,2008 | 10.00 | |
| *over previous close Share price in Rs | ||
As per provisional figures, foreign institutional investors (FIIs) sold stocks worth Rs 1,060 crore in the cash segment today while domestic institutions made purchases of Rs 582 crore.
Market-wide breadth looked positive as 63.16 per cent, or 1,689 stocks, advanced against the declines of 34.76 per cent or 929 stocks.