The benchmark index, BSE Sensex, which stayed lacklusture for most part of the day, surged to cross the 14,500 level, as sudden buying momentum emerged in late-afternoon trade, led by index heavyweight Reliance Industries (RIL).

Sensex advanced 103.69 points at 14,501.58, as per provisional closing. This is Sensex's highest closing in over 3-1/2 months since 9 February 2007. Sensex today opened higher at 14,457.57, and touched an intra-day low of 14,372.07. It advanced to an intra-day high of 14,530.15, by 14:48 IST.

The S&P CNX Nifty, which struck a record high of 4,298.85 points in late trade, settled 36.70 points higher at 4,293.25, as per provisional closing.

Volatility was the hallmark of today’s trading session, with the Sensex moving in and out of positive zone. Going forward, volatility is expected to remain high this week in the run-up to expiry of May 2007 derivatives contracts on Thursday, 31 May 2007.

The market breadth, which indicates overall health of the market, stayed positive on BSE, with 1352 shares advancing as compared to 1240 that declined. 96 remained unchanged. It was much stronger by 10:30 IST, with 949 shares advancing and 500 declining.

The total turnover on BSE amounted to Rs 4573 crore, compared to Rs 3583 crore by 14:30 IST.

Among the Sensex pack, 21 shares advanced while the rest declined.

Pharma major Cipla surged 5.64% to Rs 220, on high volumes of 11.62 lakh shares. It was the top gainer from the Sensex pack. The witnessed strong buying momentum today, after it was hammered in the past few weeks, for posting poor Q4 March 2007 results

State run engineering major Bhel advanced 4.75% to Rs 2853, on 2.91 lakh shares. It had galloped to an all time high of Rs 2889.90 in intra-day trade. It had reported 32.54% rise in net profit in Q4 March 2007 to Rs 1150.37 crore from Rs 867.95 crore in Q4 March 2006, after trading hours on 25 May 2007. Sales rose to Rs 6919.68 crore, from Rs 5515.69 crore in March 2006. The net profit rose to Rs 2414.70 crore in the year ended FY 2007, from Rs 1679.16 crore in FY 2006. Sales rose to Rs 17237.53 crore in FY 2007, compared with Rs 13228.26 crore in FY 2006. Earlier, Bhel had set 1 June 2007 as record date for a liberal 1:1 bonus issue.

Pharma major Ranbaxy Laboratories advanced 2.10% to Rs 390.40. Ranbaxy Laboratories Inc., the wholly owned subsidiary of Ranbaxy Laboratories, acquired the US rights to a group of 13 dermatology brands from Bristol-Myers Squibb Co.(BMS) for $26 million on Monday, 28 May 2007. Ranbaxy expects the 13 products, with a US presence of over 10 years, to contribute significantly to its incremental sales volume

Engineering and construction major Larsen & Toubro advanced 3.30% to Rs 1844, after it reported 50% rise in net profit in Q4 March 2007 to Rs 701 crore from Rs 467 crore in Q4 March 2006.

Index heavyweight Reliance Industries (RIL) rose 1.67% to Rs 1752 on 8.53 lakh shares. It saw high volatility, as it moved in a range of Rs 1711.95 to Rs 1765.80. As per reports, the Directorate of Revenue Intelligence (DRI) officials on Monday visited Mukesh Ambani promoted Special Economic Zone (SEZ) at Jamnagar to ascertain the area used for setting up the export zone.

Cement major Gujarat Ambuja Cements was the top loser, down 1.47% to Rs 114.30 on 7.43 lakh shares.

HDFC (down 0.98% to Rs 1827), Bajaj Auto (down 0.89% to Rs 2183), NTPC (down 0.85% to Rs 160.90), and ITC (down 0.45% to Rs 165.35) were the other losers.

IT pivotals showed mixed trends, after the rupee inched towards a nine-year high on Tuesday, 29 May 2007. IT stocks have not participated in the recent rally, due to concerns of stronger rupee.

Satyam Computers (up 0.53% to Rs 471.50), and TCS (up 0.46% to Rs 1230.35) advanced whereas Infosys (down 0.95% to Rs 1945.90) and Wipro (down 0.37% to Rs 537.20) declined. A rise in the rupee directly impacts revenue and profit of IT firms, which derive a lion’s share of revenue from exports to the US.

Recently listed real estate company Orbit Corporation surged 15.13% to Rs 252.60 on huge volumes of 84.38 lakh shares. It was the top traded counter on BSE with total turnover of Rs 207.53 crore

The Nikkei rose 0.48% on Tuesday, 29 May 2007, as Sanyo Electric Co. surged after posting strong earnings. The Nikkei added 84.97 points to 17,672.56.

FII inflow has been robust over the past few days. As per provisional data, FIIs were net buyers to the tune of Rs 180.65 crore on Monday, 28 May 2007, the day when Sensex had risen 59 points. Domestic institutions were net buyers to the tune of Rs 74.74 crore on Monday, 28 May 2007.

FII inflow aggregated Rs 4015 crore in 6 trading sessions from 17 May 2007 to 24 May 2007. But they had turned net sellers on Friday 25 May 2007. FIIs sold shares worth a net Rs 147 crore on that day.

Finance Minister P Chidambaram said on Tuesday, 29 May 2007, that he aims to bring down inflation to 4%-4.5%, urging states to maintain adequate supplies of food for ensuring price stability.

The Reserve Bank of India (RBI) on Monday, 28 May 2007, asked Securitisation Companies/Reconstruction Companies (SC/RC) to declare their net asset values (NAVs) to enable investors know the value of their investment in the securities issued by such companies.

RBI has asked the SC/RC companies to use the ratings obtained from SEBI-registered rating agencies like Crisil, Icra etc for the purpose of arriving at NAV. The NAV should be calculated according to the past experience of the company in recoveries.

Commerce Minister Kamal Nath expects foreign direct investment (FDI) equity flows of $30 billion in the fiscal year ending in March 2008, almost doubling from the previous year. FDI equity flows increased almost three times to $15.7 billion in 2006/07, from $5.5 billion in 2005/06.

Crude oil prices bounced back to $70 per barrel in London on Tuesday due to concerns over Nigerian crude production at the beginning of the summer driving season in US. London Brent crude was up 29 cents at $70 per barrel after hitting $70.05 earlier. It had slipped 98 cents on Monday after Nigerian oil unions called off the two-day strike that had threatened to halt oil supplies.