According to an analyst, Prime Minister Manmohan Singhs statement that there is no impact of a US crisis on the Indian economy boosted investors confidence. Added to the boost was the fact that several traders were seen covering short positions in the market place. And this caused the huge jump in market capitalisation.
Amongst the financial services sector, Reliance Capital gained a whopping Rs 3,671 crore from its M-Cap, an increase of 13.3% to Rs 31,332 crore over its September 18 level of Rs 27,661 crore. HDFC showed an increase of 8.3% in M-Cap, while PFC gained Rs 912 crore. Overall, while the M-Cap on the stock exchange, Mumbai (BSE) increased by a whopping Rs 1.87 lakh crore (4.33%) in a day, the M-Cap on the BSE A also increased by 4.79%.
Reliance Inds, the numero uno in terms of M-Cap, increased its value by Rs 17,304 crore during the study period. ONGC increased its value by Rs 15,603 crore during the day. Among others, some significant increase in M-Cap on September 19, were seen in major stocks like ICICI Bank, gaining a whopping Rs 5,817 crore to its M-Cap, an increase of 9.1% over its September 18 level at Rs 64,109 crore. DLF showed an increase of 7.8% in its M-Cap. SAIL gained Rs 4,006 crore to its M-Cap during the study period.
IT stocks that were taking a beating for some time made a comeback, thanks to some strong short covering. IT stocks like SatyamComputer (10.48 %), HCL Technologies (8.15%) and Infosys Techno (6.59%) were prime gainers. Some other power stocks also showed bullishness. Consider Torrent Power, which increased by 8.67% or Tata Power, which increased by 8.3%. Conversely, some of the biggest decreases in M-Cap were observed in the case of HPCL (-2.65%), Hero Honda Motors (-1.94%), Indian Oil (-1.83%) and Bajaj Auto (-1.62%).