Sensex surges 518 points

Asian markets were mixed after firm opening. European markets were in the green.

Sensex ended up 518.42 points or 2.99 per cent at 17,847.04 an all time closing high. It had hit a fresh all-time high of 17,953.07 in early afternoon trade. It hit a low of 17,288.41 during mid-afternoon trade. Sensex opened with a upward gap of 138.79 points.

Market had come sharply off the higher level to slip into the red for a short while in mid-afternoon trade. At day's low of 17288.41, it had declined 40 points for the day. At day's high of 17,953.07, Sensex had risen 624.45 points for the day.

The market had spurted in opening trade with Sensex and S&P CNX Nifty hitting all-time highs after more bad news on the US housing market kept alive hopes of further US interest rate cuts after last monthís steep 50 basis points cut in fed funds rate to 4.75per cent from 5.25per cent. The market has been a roll with the Sensex hitting record high in each of the past ten trading sessions from 19 September 2007 to 3 October 2007. Heavy FII buying and hopes of a further cut interest rates by the US Federal Reserve at its next policy meeting on 30 October 2007-31 October 2007 has boosted bourses. From a low of 13,989.11 on 21 August 2007, Sensex galloped a whopping 3,857.93 points or 27.57per cent to 17,847.04 yesterday.

India's largest private sector company and oil refiner Reliance Industries (RIL) was up 4.55per cent to Rs 2,393.55. It hit an all-time high of Rs 2,443.90 in the early afternoon trade yesterday. As per reports, RIL paid 46per cent higher advance tax to Rs 649 crore in the second advance tax installment ended 15 September 2007, over 15 September 2006.

IT bigwigs firmed today on hopes quarterly earnings from the beaten down sector may not be as bad as widely feared. Indiaís second largest IT services exporter in terms of revenue Infosys was up 5.72 per cent to Rs 2,001.40, and was the top gainer amongst the Sensex pack. TCS (up 3.99 per cent to Rs 1,079.95), Satyam (up 1.86 per cent to Rs 451) edged higher. Wipro rose 3.68 per cent to Rs 470.65. Infosys kickstarts earnings reporting season on Thursday, 11 October 2007. Pharma majors declined yesterday. Cipla was down 1.93 per cent to Rs 185. It was the top loser among the Sensex pack. Dr. Reddys Laboratories (down 0.49 per cent to Rs 655.25), Ranbaxy Laboratories (down 0.54per cent to 438.60) were the major losers among the Sensex pack.

Hindustan Unilever lost 0.92 per cent to Rs 220.35.

Ambuja Cements (down 1.63 per cent to Rs 144.95) declined after its September 2007 cement shipments fell 4.2 per cent to 12.9 lakh tonnes from 13.4 lakh tonnes in September 2006.

Shares of power generation and distribution companies hogged the limelight. Tata Power Company surged 13.22per cent to Rs 1,031.25. It hit an all-time high of Rs 1,150. Reliance Energy rose 7.48 per cent to Rs 1,450.40 on a volatile trade, It hit an all-time high of Rs 1,488.40. It was the top gainer from the Sensex pack. NTPC rose 5.34 per cent to Rs 217, It hit an all time high of Rs 222.40.

The rally in power stocks was attributed to the proposed public issue of Reliance Power.

The unlisted power arm of Anil Ambani is planning additional capacity worth 25,000 mega watts through new projects. Reliance Communications rose 5.03 per cent to Rs 642.65. It hit an all-time high of Rs 660 yesterday. ONGC was up 2.76per cent to Rs 1,024.60. It hit an all-time high of Rs 1,052 yesterday.