Sensex rallies 928 pts

Sharpest rise since Jan 25, 2nd biggest single-day points gain.

After lying low for most trading sessions this calendar, stocks saw a spectacular surge today as the Bombay Stock Exchange's benchmark Sensex rallied to its second-biggest single-day points' gain on positive cues from European and Asian markets, where the broader MSCI Asia Pacific Index showed the largest gain since February 14.

Short covering, big buying by foreign and domestic institutions and an expected increase in salaries of central government employees following the sixth Pay Commission recommendations, also buoyed sentiment.

The Sensex advanced 928.09 points, or 6.1 per cent, to 16,217.49, its steepest rise since January 25.

Overall, the Sensex added 9.5 per cent in the past four trading sessions. This is the first time this year that the index has risen for four consecutive days.

Three stocks advanced for each that fell on the exchange.

The Sensex has fallen 20 per cent this year after adding 47 per cent in 2007, its sixth consecutive annual rise.

In the cash market, foreign institutional investors (FIIs) bought Rs 1,250 crore worth stocks while domestic institutions bought a net of Rs 400 crore today, according to the BSE website. 
 

BOOM AFTER GLOOM
Asian markets
	25-Mar-08	Net Chg*	% chg*
Hang Seng	22464.52	1356.30	6.43
Jakarta Composite	2419.62	80.32	3.43
Straits Times	3000.19	72.40	2.47
Dow Jones^	12537.33	-11.31	-0.09
FTSE 100	5689.10	193.90	3.53
BSE sectoral indices (top 5 gainers)
	25-Mar-08	Change*	% chg*
Realty	7451.24	645.06	9.48
Bankex	8371.34	626.99	8.10
Cons. durables	3772.23	279.96	8.02
IT	3686.35	264.39	7.73
Power	3153.87	191.01	6.45
Top 5 single-day gainers
DATE	Index	Change*	% chg*
25-Jan-08	18361.66	1139.92	6.62
25-Mar-08	16217.49	928.09	6.07
14-Nov-07	19929.06	893.58	4.69
23-Oct-07	18492.84	878.85	4.99
23-Jan-08	17594.07	864.13	5.17
^ up to 0000 hrs                                 * Over previous close

The National Stock Exchange's S&P CNX Nifty advanced 267.55, or 5.8 per cent, to 4,877.5 points. "The Nifty could go up to 5,200 to 5,400 levels. The market will be range-bound between 4,700 and 5,300," said a dealer.

Experts said they expect the rally to continue for some more sessions since investor sentiment had touched rock-bottom levels in the recent crash. 
 

Top 5 gainers
Name	25-Mar-08	% chg*
Jaiprakash Asso	233.10	16.38
DLF	678.65	13.47
Reliance Energy	1300.15	12.97
Infosys Techn	1492.55	9.64
ICICI Bank	879.95	9.37

"Stock prices normally rally from the depths of despair and crash from the heights of euphoria," said a dealer. "What we have seen recently was the former."

Madhusudan Kela of Reliance Mutual Fund said: "Currently, the risk-reward ratio is highly attractive and it is a good buying opportunity for investors. It is not a bear phase in the market and any major fall is merely a sharp correction that may last for three to six months in the bull market."

The realty index was the biggest gainer today as investors judged more money chasing the sector following the recommendations of higher pay scales for government employees.

"We expect central government employee pay revision after the 6th Pay Commission award to support domestic spending when global growth is slackening. This injects spending power of about 0.5 per cent of GDP in hard cash," said Indranil Sen Gupta, economist, DSP Merrill Lynch in a note to clients.

Two stocks hogged the limelight today "" Jaiprakash Associates and Reliance Energy. Jaiprakash surged 16.38 per cent, to Rs 233.1, its steepest percentage rise in more than 16 months after ICICI Bank bought 1 per cent of Jaypee Infratech Ltd, a unit of Jaiprakash Associates, for Rs 2,500 crore.

Reliance Energy, which began its buyback programme today, rose 12.97 per cent to Rs 1,300.15. The Mumbai-based utility is buying back shares at a maximum of Rs 1,600 apiece.