Frenzied buying in index pivotals led by Reliance Industries, ICICI Bank and Bharti Airtel coupled with short covering triggered a solid rally on the bourses. A sharp fall in crude oil prices for the third day in a row on Thursday, 17 July 2008, boosted the sentiments. The rally was spread across sectors barring IT and metal. The market breadth was strong.

On the New York Mercantile Exchange, August 2008 crude settled $5.31 lower at $129.29 a barrel yesterday, 17 July 2008.

European markets, which opened after Indian market, were in the red. Asian markets, which opened before Indian market, were mixed.

The wholesale price index (WPI)-based annual rate of inflation rose to 11.91% in the week ended 5 July 2008, marginally higher than the 11.89% rise in the previous week. Inflation for the week ended 10 May 2008 was revised upwards to 8.57% from 7.82% reported earlier. The data was released after market hours yesterday, 17 July 2008.

The 30-share BSE Sensex surged 523.55 points or 3.99% to 13,635.40. It hit a high of 13,684.27 in late trade. At the day's high, the Sensex surged 572.42 points. The Sensex lost 18.51 points at days low of 13,093.34 hit in mid-morning trade.

The broader based S&P; CNX Nifty advanced 145.05 points or 3.67% to 4,092.25. Nifty July 2008 futures were at 4056.70, at a discount of 35.55 points as compared to spot closing.

Sensex has risen 1059.60 points or 8.42% in last two trading days from its close of 12575.80 on 16 July 2008. Prior to this the BSE Sensex plunged 1350.44 points or 9.67% in four trading sessions from 13964.26 on 9 July 2008 to 12575.80 on 16 July 2008.

Sensex is down 6651.59 points or 32.78% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 7571.37 points or 35.70% away from its all-time high of 21,206.77 struck on 10 January 2008.

Back to today's trade, the market breadth was strong on BSE with 1614 shares advancing as compared to 990 that declined. 83 remained unchanged.

The BSE Mid-Cap index was 1.48% to 5,231.42 and the BSE Small-Cap index rose 1.05% to 6,454.03, as per provisional closing. Both these indices underperformed the Sensex.

Political uncertainty will continue to weigh on the market early next week. The government is holding a two-day special session of parliament on 21 July 2008 and 22 July 2008 to seek vote of confidence after it was reduced to minority following withdrawal of support by Left parties on 8 July 2008. The government hopes to retain power due to backing from Samajwadi Party, a regional party in Uttar Pradesh.

The total turnover on BSE amounted to Rs 5312 crore as compared to Rs 4,865.47 crore on Thursday, 17 July 2008. NSE's futures & options (F&O;) segment turnover was Rs 52,794.98 crore, which was higher than Rs 46,300.96 crore on Thursday, 17 July 2008.

Among the 30-member Sensex pack, 22 advanced while the rest slipped.

Shares from banking and financial services providers rallied after the latest data showed inflation rose at a slower pace than expected in the year through 5 July 2008.

Indias largest private sector bank in terms of net profit ICICI Bank vaulted 13.02% to Rs 622.95 on 30.74 lakh shares after the banks American depository receipt (ADR) rallied 9.4% to $29.02 on the New York Stock Exchange (NYSE) yesterday, 17 July 2008. It was the top gainer from Sensex pack.

HDFC Bank (up 7.54% to Rs 1030.35), and State Bank of India (up 5.37% to Rs 1293), surged.

India's largest dedicated housing finance company in terms of operating income HDFC soared 10.13% to Rs 2080. The stock rallied 9.91% yesterday, 17 July 2008 after the company's chairman Deepak Parekh denied rumors that Citigroup may sell its 11.74% stake in firm.

Indias largest private sector firm by market capitalization and oil refiner Reliance Industries advanced 4.69% at Rs 2110 on 14.12 lakh shares. The stock moved in a range of Rs 2125 and Rs 1995.05 in the day.

Reliance Communications, the countrys second largest cellular services provider in terms of market capitalisation was up 3.61% to Rs 433.

Mukesh Ambani-owned Reliance Industries (RIL) on Thursday, 17 July 2008 said it has started arbitration proceedings against younger brother Anil Ambanis Reliance Communications (RCOM) to thwart the latters merger with Africas largest telco MTN. According to reports, RCom has dismissed the RIL move and said the arbitration can only happen when both parties refer the dispute to a person outside the court. RCom's talks with MTN, which have been extended once, are scheduled to end on 21 July 2008.

Two oil exploration heavyweights saw edged higher. Oil & Natural Gas Corporation (ONGC) gained 3.68% to Rs 937 while Cairn India rose 0.72% to Rs 218

Bharti Airtel (up 7.50% to Rs 805), and Jaiprakash Associates (up 8.86% to Rs 162.25), gained from the Sensex pack.

DLF (up 6.65% at Rs 455.55), Unitech (up 3.72% to Rs 147.90), Ansal Infrastructures (up 8.27% to Rs 93.95), Parsvnath Developers (up 1.70% to Rs 110), and Indiabulls Real Estate (up 6.54% to Rs 287.35), surged from the real estate space.

Most IT pivotals declined after Indias third largest software services exporter Wipro said it was cautious in the near term, echoing its larger rivals TCS and Infosys.

Wipro slumped 4.23% to Rs 363.75. The company posted 3.16% rise in consolidated net profit to Rs 907.8 crore on 5.18% rise in total income to Rs 6087.1 crore in Q1 June 2008 over Q4 March 2007. The company announced the results before trading hours today, 18 July 2008.

Indias fourth largest software services exporter Satyam Computer Services plunged 7.53% to Rs 383 on 45.77 lakh shares. It was the top loser from Sensex pack. The company reported 17.32% rise in consolidated net profit to Rs 547.70 crore on 8.47% increase in consolidated sales to Rs 2620.83 crore in Q1 June 2008 over Q4 March 2008. The company declared the results before market hours today, 18 July 2008.

Indias second largest software services exporter Infosys was down 1.76% to Rs 1555.

However Indias largest software services exporter TCS staged a strong recovery from days low of Rs 748.60. It rose 1.54% to Rs 791.20

Ranbaxy (down 3.72% to Rs 435.40), and ACC (down 1.06% to Rs 533.10), edged lower from Sensex pack.

Metal stocks slipped on selling pressure. Tata Steel (down 3.38% to Rs 586.90), Sterlite Industries (down 3.02% to Rs 590), JSW Steel (down 2.23% to Rs 725), Sesa Goa (down 1.74% to Rs 2708.85), and Hindustan Zinc (down 1.02% to Rs 526), declined from metal sector.

Reliance Capital topped the turnover chart on BSE with a turnover of Rs 323.70 crore followed by Reliance Industries (Rs 291.50 crore), Reliance Petroleum (Rs 193 crore), ICICI Bank (Rs 185 crore) and Satyam Computer Services (Rs 177.70 crore).

Reliance Natural Resources led the volume chart with volumes of 1.67 crore shares followed by IFCI (1.45 crore shares), Reliance Petroleum (1.28 crore shares), IDFC (1.05 crore shares) and Chambal Fertilisers (90.25 lakh shares).

Fertiliser shares rallied. Coramandel Fertilisers (up 4.41% to Rs 119.65), Nagarjuna Fertilizers & Chemicals (up 2.68% at Rs 30.60), Gujarat State Fertilizers & Chemicals (up 1.18% at Rs 145.80), Chambal Fertilisers & Chemicals (up 4.98% at Rs 60.05), Rashtriya Chemicals and Fertilizers (up 1.76% at Rs 49.05), soared

State run oil-marketing companies extended gains for the third straight day today, 18 July 2008, tracking sharp fall in crude oil prices for the third straight day yesterday, 17 July 2008. Hindustan Petroleum Corporation (up 4.36% to Rs 218), Bharat Petroleum Corporation (up 3.11% to Rs 283.25), and Indian Oil Corporation (up 5.06% to Rs 382), surged.

Kirloskar Brothers slumped 10.42% to Rs 166 on reporting a net loss of Rs 4.48 crore in Q1 June 2008 as against net profit of Rs 25.71 crore in Q1 June 2007. The company announced the results during trading hours today, 18 July 2008.

Ballarpur Industries soared 6.35%