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Stocks surge on buying spree

All the sectoral indices on BSE posted gains. Tracking steady gains from US markets overnight, European and Asian markets also posted gains.

The 30-share BSE Sensex advanced 375.21 points or 2.51 per cent at 15,307.98. It opened with 155.30 point upward gap at 15,088.07 and cruised ahead to hit a high of 15,340.24 at 14:39 IST as buying continued.

IT stocks dominated the market since opening bell following easing of rupee against the dollar after the government on Tuesday tightened external commercial borrowing (ECB) norms. The BSE IT index surged 4.11 per cent to 4,808.43, and was the best performing sectoral index on BSE. It had underperformed the market in the past one month period when it lost 7.57 per cent, till August 7, 2007.

Second largest software services exporter Infosys Technologies jumped 4.59 per cent to Rs1964.90 on 6.44 lakh shares. It was the top gainer from Sensex pack.

Other IT stocks Satyam Computers (up 3.67 per cent to Rs480), Wipro (up 3.60 per cent to Rs475.85), and TCS (up 4.34 per cent to Rs1156), also posted gained.

India's rupee weakened yesterday on concern capital inflows from abroad will slow after the government imposed curbs on overseas borrowings by Indian companies. The rupee was hovering at 40.55 versus dollar, weaker than Tuesday's close of 40.41/42.

Shares from mid-cap software sector outperformed their large-cap peers. MphasiS (up 6.20 per cent to Rs303), Polaris Software (up 12.88 per cent to Rs120.50), i-Gate Global (up 5.51 per cent to Rs247.50), KPIT Cummins (up 4.16 per cent to Rs122.70) and Mastek India (up 3.33 per cent to Rs262) surged.

India's largest private sector enterprise Reliance Industries (RIL) surged 3.77 per cent to Rs1873.95, on 14.22 lakh shares. As per reports RIL is understood to be keen on picking up a stake in the proposed 4,00,000-barrel-a-day Jizan refinery project in Saudi Arabia.

State run refining companies gained on recent rumors of a petrol price hike in September 2007. HPCL (up 1.49 per cent to Rs259.45), BPCL (up 2.10 per cent to Rs322.50), and IOC (up 0.54 per cent to Rs409.95), rose.

Led by RIL and state run refinery stocks, the BSE Oil and Gas Index rose 3.13 per cent to 8,048.75.

Housing Development Finance Corporation (HDFC) rose 3.72 per cent to Rs2047 on reports it has shortlisted three foreign insurers for inducting one of them as a joint venture partner in its wholly-owned subsidiary, HDFC Chubb General Insurance Company.

State Bank of India (SBI), the country's largest bank, rose 1.07 per cent to Rs1701.25 on reports that it is ready with a $1 billion war chest to take over a niche bank which not just gives it access to foreign markets but also helps it blunt the advantage of international players who are poised to enter India in 2009.

ICICI Bank, the country's largest private sector bank rose 1.75 per cent to Rs886 on reports that the Foreign Investment Promotion Board (FIPB) is expected to reconsider the much-discussed proposal of infusion of foreign funds into its holding company at its next meeting on August 7, 2007.

Other banking shares also witnessed strong buying demand. The BSE Bankex rose 1.86 per cent to 8,076.32. Kotak Mahindra Bank (up 1.66 per cent to Rs794.90), HDFC Bank (up 1.80 per cent to Rs1163), Oriental Bank of Commerce (up 2.02 per cent to Rs237.50), Punjab National Bank (up 3.51 per cent to Rs522.90), Bank of India (up 3 per cent to Rs253), Bank of Baroda (up 4.92 per cent to Rs318), Axis Bank (up 1.48 per cent to Rs624.15) and Union Bank of India (up 4.47 per cent to Rs155.45) edged higher.