The yield on the benchmark 10-year Treasury note hovered around 5.20% early Thursday, compared with 5.21% late Wednesday. Dow futures expiring in September rose 1, or 0.01%, to 13,606, while Standard & Poor's 500 index futures rose 0.10, or 0.01%, at 1,530.30. Nasdaq 100 index futures advanced 3.75, or 0.19%, to 1,941.00.


7:30AM NY-6:30PM Mumbai Sensex surges 201 points in a broad-based rally Thursday.

The Sensex on BSE finished 200.69 points, or 1.43%, higher Thursday, at 14,203.72.

The strong market-breadth was supported by two advancers for every decliner. Of 1,692 stocks which advanced, 781 stocks declined and only 88 stocks were unchanged. Of the 30 stocks in the Sensex, only four declined, while all the rest advanced. The turnover on BSE was Rs 4,402 crore, higher than Rs 4,189 crore on Wednesday.

Economic news

The strike at Indian, a state-run airline, was called off on Thursday after it continued for three-day. An agreement to pay salaries in arrear, career promotion and wage hikes was reached between the union of ground staff and the management. Private carriers SpiceJet, Deccan Aviaton and Jet Air stocks gained more than 4%. Indian, the state controlled domestic carrier has been losing market share since the air travel privatization in 1993. The airline market share has dipped below 20% from its monopoly on domestic travel.

The government is looking for ways to help exporters in the face of rising rupee value in the international market. The government is planning to offer a special relief package including duty exemption pass book credit rates from service rates, a cut in insurance premium and lower export credit rates.

Trading highlights

Time Technoplast was the most-active stock with a turnover of Rs 248 crore followed by ICRA and Unitech.

Advancers

HDFC led the advancers, surging 4.2% to Rs 1,825. The stock advanced as the chairman of the bank hinted at possible increase in interest rates after two to three months. Reportedly, HDFC realty fund has bought 10% equity of Pune based housing and construction company Paranjape Schemes for a total value of Rs 74 crore.

Cement stocks surged on a report that the cement shortage is not likely to be resolved for another two years. Cement large-cap ACC gained 3.4% to Rs 825, while Grasim rose 3% to Rs 2,432.

Tata Steel rallied 3.2% to Rs 614 and BHEL surged 2.9% to Rs 1,349. IT stocks advanced on steady buying. Satyam Computers gained 0.4% to Rs 488, Infosys added 1.9% to Rs 2,020, Wipro rose 0.4% to Rs 532 and TCS advanced 0.1% to Rs 1,204.

Engineering & Construction major L&T advanced 2.8% to Rs 1,923 on news that it intends to unite all its businesses under 15 divisions from the present 6 business divisions. Other gainers included Hindalco which settled up 2.3% at Rs 164. Dr.Reddy's and SBI gained around 2% each to Rs 640 and Rs 1,314, respectively. Gujarat Ambuja and Ranbaxy added 1.7% each to Rs 111 and Rs 370.

Index heavy Reliance Industries gained 1.4% to Rs 1,696 on 5.79 lakh shares. Reliance announced yesterday, June 13 2007, that its Jamnagar refinery was functioning normally and will meet planned production.

Decliners

Hero Honda led the few decliners, slipping 1.7% to Rs 684. Hero Honda has been on the decline since news that it has reduced production as demand was declining in the face of five-year-high interest rates.

ICICI Bank lost 0.8% to Rs 906. ICICI Bank announced today that it would come up with a share sale next week to subsidize the strong demand for loans in the rapidly expanding economy of India.

The other two decliners were Tata Motors, off 0.5% to Rs 643 and ITC, 0.2% lower to Rs 152.