MARKET SURGED RECORD 28% IN A MONTH...

It was a great month for the Indian capital markets. The index rallied to lot of vital events that occurred in May and provided fuel to the positive sentiments. Realty, metal, capital goods and banking sectors witnessed enormous buying interest.

Indices had hit the 20% circuit on Monday, May 18, after the UPA (United Progressive Alliance) swept the Lok Sabha polls.This was the repeat of the history .The day's percentage rise was the biggest since a 20.8 percent jump on March 2, 1992 when Singh, who was then finance minister, unveiled reforms that opened the economy to foreigners .This was the pivotal event for the market where same person voted by Indian people to govern in for next five year freely and also saw the government unveiling the list of Cabinet Ministers.

The exile of left party from the decision making process was also celebrated by the market.

Globally, the OPEC kept crude oil output unchanged which resulted a shoot in prices above USD 66 a barrel. On the M&A front, Bharti Airtel renewed talks with South Africa's MTN. These were some of the major events of this week. Both the indices gained 5% each on week-on-week basis.

Index (%)	Weekly	Monthly
Reality	15.38	79.30
Metal	11.68	57.98
Smallcap	8.59	51.92
Capital Goods	7.32	50.74
Bankex	5.50	45.26
Midcap	6.33	43.91
Power	5.28	36.38
Auto	5.29	31.80
Sensex	5.31	28.26
Oil&Gas	6.17	28.12
Nifty	4.97	28.07
IT	5.92	12.55
Healthcare	1.74	11.99
FMCG	0.77	0.08

The May series ended on a high note with the biggest percentage gain ever in an F&O series. Both the Sensex and the Niifty surged 28% on the month-on-month basis

Good global cues also aided the positive momentum. Infrastructure (capital goods + power), oil & gas, metal, realty, auto, telecom and technology stocks saw huge buying interest. Better than estimated GDB numbers cheered the markets; Growth number for the full year, FY2008-09, came in at 6.7% versus a projection of 7.1%. The GDP growth for the last financial year, FY08, stood at 9%. The numbers for the fourth quarter of FY09 also came in at 5.8% versus 5.8% last quarter and 8.8% a year ago.

The the statement of oil minister about deregulation bill for oil price would be taken up by the Cabinet soon and added that tax breaks for gas production would also be taken up shortly. The Ministry said it planned to re-launch New Exploration Licensing Policy (NELP) VIII soon. The Ministry further stated that it would consider the decontrol of APM gas after the oil product deregulation.

Speaking on the impact, VK Sharma of Anagram Sharma said. “I think it is worthwhile and it will give oil marketing companies as well as ONGC and GAIL some levy from having to bear the burden. The government too will not have to do that much. So I think it augers well for not only marketing companies but the others also for ONGC and GAIL.”

The 30-share BSE sensitive index surpassed the 14,700 during the day and touched an intraday high of 14,727.28, up 431.27 points. But the some profit booking at higher levels wiped out some gains. It closed 329.24 points or 2.3% higher at 14,625.25. The 50-share NSE Nifty surged 150.95 points to touch a high of 4488.05, before closing at 4448.95, up 2.58% or 111.85 points at the last trading day of the month. In the last trading week The Sensex surged 5.3% and the Nifty gained 4.97%. Among the broader indices, the Nifty Junior was up 4.5%, CNX Midcap Index up 5% and BSE Small Cap Index went up 8.4%.