Sensex storms past 19K

Gain of 639.63 points was in tandem with other Asian markets.

The Sensex surged 3.5 per cent on Monday, storming past 19,000 after heavy purchases by foreign institutional investors (FIIs) "" net buyers for the 15th consecutive day "" propelled the benchmark index past the milestone in four trading days.

The Sensex surge of 639.63 points was in tandem with other Asian markets, which rose sharply after crude oil prices climbed to a new record. The Bombay Stock Exchange index was, in fact, the highest gainer in Asia on Monday followed by Hong Kong.

Overall, the Sensex has zoomed 5,069.6 points in less than two months. 
 

Share price in Rs	Oct 15, 2007	%  change*
Sensex Gainers
Reliance Energy	1847.35	12.90
ONGC	1191.00	9.11
Tata Steel	911.40	7.46
Maruti Udyog	1160.35	5.79
Hindalco	188.85	5.56
Bharti Airtel	1126.75	5.38
State Bank of India	1956.95	5.08
Reliance Comm	752.70	4.87
NTPC	226.80	4.28
HDFC Bank	1490.45	4.17
Sensex Losers
Hindustan Unilever	219.20	-0.99
Infosys Tech	1928.75	-0.09
* over previous close

Yesterday's surge follows Friday's sharp increase in US stocks helped by reports that retail sales rose in September.

FIIs' purchases yesterday were worth Rs 2,868 crore, taking net purchases since the Federal Reserve cut rates on September 18 to over Rs 28,000 crore.

The broader S&P CNX Nifty Index of the National Stock Exchange also raced past the 5,600-mark to end the day at 5,670.40 (up 4.46 per cent or 258.75).

Metal sector stocks "" relative underperformers till last month "" were the fastest gainers on Monday. The BSE metal index zoomed 9.16 per cent, or 1,358.74 points, to close at 16,200 "" a new record for the index after several overseas commodity funds pumped money into stocks such as Tata Steel (up 7.46 per cent to Rs 911) and Hindalco (up 5.56 per cent to Rs 88.85).

The trigger, said brokers, was industrial production data on Friday, which showed robust mining sector growth at 17.1 per cent this quarter against a decline of 1.7 per cent in the corresponding month last year.

Banking stocks (up 4.25 per cent) were the second-biggest sectoral gainers on Monday. ICICI Bank gained 4.2 per cent on expectations of strong results after the good show by HDFC Bank and Axis Bank.

Analysts remain optimistic despite the rise. Seshadri Bharathan of Dawnay Day said investors who were willing to take a long-term bet would continue to buy.

"Historically, Indian markets trade at a 17 to 18 times price-to-earnings multiple. Given the 8 per cent- plus economic growth, our markets can trade at 20 to 25 times earnings multiple. Even after the fast rise, we feel the market is not very expensive," he said.

After yesterday's rise, the 30-stock Sensex index commands a price to earnings multiple of 26 times.

Added Vikas Khemani, co-head of institutional equities at Edelweiss Capital, "The pace of the rise in stock prices may make many people worried. But that's what liquidity can do to valuations."

Also read:-

Seven stocks spur Sensex

Metal scrips up 9% on FII flows

Rally forecasts seem possible
 
Indian markets now 18 karat