M A I N   N E W S

Sensex sparkles to a new high
Fuelled by spectacular response to Coal India’s public issue, BSE closes at an all-time high of 20,893.57
Sanjeev Sharma & Shiv Kumar
Tribune News Service

New Delhi/Mumbai, November 4
It was a cracker of a Divali closing for the BSE Sensex to end Samvat year 2066 at a new all-time high powered by a spectacular listing of the largest-ever public issue of Coal India, which had received 17 lakh retail applications in its public issue. The scrip of the public sector unit jumped 40 per cent with a market capitalisation of 2.16 lakh crore. The market’s rise was aided by another stimulus package of $ 680 billion by the Federal Reserve to bolster the weak US economy.

The BSE Sensex closed the day at an all-time high of 20,893.57 points as foreign institutional investors (FIIs) continued their record buying in the Indian markets which has crossed $ 26 billion in 2010.

The NSE Nifty index too spurted by 121.30 points to close at record high of 6,281.80 points.

Dizzying Heights Coal India is now the fourth most valuable company in India at M-cap of Rs 2.16 lakh crore FIIs continue record buying in the Indian markets which has crossed $ 26 billion Retail investors have been mostly left out of the stupendous rally in the secondary market

At today’s closing, the 30-share benchmark Sensex shot up by 427.83 points to 20,893.57 points, surpassing its previous record closing level of 20,873.33 on January 8, 2008. The index was still below the intra-day high of 21,206.77 on January 10, in the same year.

The highlight of the power-packed markets session was the trading debut of Coal India, which became India’s fourth most valuable listed company in terms of market capitalisation. Coal India was the country’s largest IPO and raised Rs 15,200 crore and was oversubscribed 15 times.

The issue was able to attract retail investors who participated in the offering. Retail investors have been mostly left out of the stupendous rally in the secondary market, which has made India one of the best-performing stock markets. The reasonable pricing of the Coal India issue which has left returns on the table for investors and the gush of liquidity from domestic as well as overseas sources has led to its fantastic performance.

At today's closing price, Coal India enjoys a market capitalization of Rs 2.16 lakh crore which makes the company the fourth most valuable company in India. Only Reliance Industries, ONGC, and SBI rank ahead of Coal India. Even IT giants like TCS and Infosys rank below CIL in terms of market cap.

On the Coal India listing, Jagannadham Thunuguntla, strategist and head of research, SMC Global Securities said, “The issue will ensure more local and global investors come into the Indian markets and help the disinvestment programme. It has seen a hige trading volume of around Rs 22,000 crore and the first day trading volume is 1.44 times that of the issue size.