Robust global risk appetite, improved 01 June 2009 results and signs of economic recovery send stocks surging

been extended. Producers of natural gas from coal-bed methane blocks would also be ex­tended tax breaks.
Some companies that announced spectacu­lar results included cement maker ACC, trac­tor maker Mahindra & Mahindra, diversified Grasim Industries, drug maker Dr Reddy's Laboratories and two-wheeler major Hero Honda. India's biggest commercial vehicle maker by market share Tata Motors surprised the market with a 58% growth in the bottom line as against market expectation of a sharp fall. The strong result sent the stock surging.
India's biggest commercial bank by branch network State Bank of India (SB!) also cheered the market with a stronger-than-expected 42% growth in the bottom line, sending the stock up nearly 10% in just two days after the result hit the market during trading hours on 29 July 2009. India's biggest small-car maker by mar­ket share Maruti Suzuki surged to a record high after reporting a forecast-beating 25% growth in the bottom line in QI June 2009. The stock galloped 19.2% to Rs 1413.25 in the fortnight ended 31 July 2009.
However, India's biggest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) disappointed the street by reporting a larger-than-expected 12% fall in net profit due to sharp decline in refining margin, causing a near 4% slide in the stock on 27 July 2009 after it announced the results after trading hours on 24 July 2009.
Meanwhile, some top Indian companies raised large sums of money that will help
fund expansion and reduce debt. On 16 July 2009, copper major Sterlite Industries raised US$ 1.5 billion through American depository shares (ADS). Parent Vedanta picked up US$ 500 million. On 21 July 2009, Tata Steel raised US$ 500 million through issue of glo­bal depository receipts (GDR) in London. This is the biggest issue on the London Stock Exchange so far tills year and, in fact, exceeds the total raised through all new issues in the first six months on the London bourse.
On the same day, wind turbine maker Suzlon Energy raised US$ 202 million through issue ofGDRs and convertible bonds (CBs). Another Tata group major Tata Power took the opportunity to tap the same market. The company raised US$ 335 million in a GDR offering. The target was US$ 250 million, although the company had shareholder ap­proval to go up to US$ 500 million.
The latest economic data indicated im­proving economic activity. The six infra­structure industries - crude oil, refining, coal, electricity, cement and steel - to­gether grew at an annual rate of 6.5% in June 2009, faster than the previous month's rise of2.8%, data showed on 23 July 2009. The infrastructure sector accounts for 26.7% of India's industrial output.
But weak monsoon remains a cause of concern. After being above normal in the preceding two weeks, the monsoon rains were 18% below normal in the week to 29 July 2009. Total rainfall since the beginning of June was 19% below average, the India