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Sensex, Nifty strike all time closing highs

Tuesday, July 24, 2007

The market ended on a winning steak for the firth straight session, helped by steady buying interest for capital goods, power and IT stocks. But auto, cement, FMCG and pharma shares saw selling pressure. The market was choppy today, which is likely to be the case over the next two days ahead of the expiry of the July 2007 derivatives contracts on 26 July 2007.

The BSE 30-share Sensex rose 62.72 points to 15,794.92, an all time closing high. It opened lower at 15,802.19, but immediately started advancing to hit an all-time high of 15,868.85 at 10:45 IST as buying intensified. It slipped to a low of 15,742.69 at 12:34 IST.

It oscillated in a range of 127 points during the day.

Sensex has posted gain of 505.10 points in five trading sessions from a recent low of 15,289.82 on 17 July 2007.

The S&P CNX Nifty gained 1.40 points to 4,620.75, also an all time high. It hit an all time high of 4647.95 in intra-day trade. The Nifty July 2007 futures settled at 4,609.85, a discount of 10.80 points as compared to spot closing

The market breadth, indicating the overall health of the market, was negative on BSE as small-cap and mid-cap shares came under selling pressure. 1,776 shares declined on BSE as compared to 901 that advanced, while 64 remained unchanged.

The BSE Mid-Cap Index settled at 6,812.34, down 37 points or 0.5% while the BSE Small-Cap Index slipped 81 points or 1% to 8,153.63

The total turnover on BSE amounted to Rs 5,558 crore as against Rs 4,854.72 crore on Monday, 23 July 2007. The turnover in NSE’s F&O soared to highest ever Rs 64,281 crore as compared to Rs 51,007.17 on Monday, 23 July 2007.

The total open interest in NSE’s futures and option (F&O) segment vaulted to an all-time record of Rs 99,812.37 crore on 24 July 2007, from Rs 92,507.76 crore on the previous day.

Among the Sensex pack, 19 declined while the rest advanced

Auto stocks came under selling pressure on profit booking, with the BSE Auto Index losing 1.40% to 5,125.51. Top utility maker and tractor major Mahindra & Mahindra was the top loser from the Sensex pack. The stock was down 3.13% to Rs 797.30 on 75,509 shares.

Tata Motors (down 2.87% to Rs 749), Maruti Udyog (down 1.52% to Rs 821) were the other losers from the auto sector.

India's top bike maker Hero Honda slipped 1.67% to Rs 693 after the two-wheeler maker reported a 20.1% fall in net profit to Rs 189.84 crore in Q1 June 2007 over Q1 June 2006.

FMCG stocks also eased led by MNC heavyweight Hindustan Unilever (HUL) which shed 1.96% to Rs 200. The BSE FMCG Index lost 1.5% at 1,843.30. Colgate (down 1.27% to Rs 369) and United Spirits (down 9.06% to Rs 1333) slipped

Cement stocks also took a breather after recent rally. ACC (down 2.94% to Rs 797.30), Ambuja Cements (down 0.63% to Rs 134.35) and Grasim (down 0.20% to Rs 3025), declined from the cement pack.

Leading power utility Reliance Energy (REL) galloped 7.58% to Rs 768.95 on reports that it is in talks with commodity exchanges, the Multi Commodity Exchange (MCX) and the National Commodity Derivatives Exchange (NCDEX), to pick up equity stake in two power exchanges proposed to be set up by them. It was the top gainer from the Sensex pack. The stock rose on high volume of 20.56 lakh shares on BSE.

Fourth largest software exporter Satyam Computer Services surged 4.95% to Rs 516 on announcing strategic initiatives to strengthen its presence in South Africa. The company is banking on a sizeable number of contracts emanating from South Africa in the coming years and sees potential in providing IT solutions to the banking and financial, energy and utilities and government sectors.

Shares from the capital goods sector advanced as investors chased these stocks betting on their soaring order book positions of these companies. The capital goods stocks were further boosted by reports that these companies would bag lucrative contracts as a result of the breakthrough achieved in the India-US nuclear deal.

State-run engineering major Bharat Heavy Electricals (Bhel) continued galloping, and gained 4.56% to Rs 1,846 today, coming of its all-time high of Rs 1,899 struck earlier in the day. The company secured a Rs 1,829-crore order for manufacturing and setting up a three 500-MW thermal power units in Haryana on Monday, 23 July 2007, when it had gained 7.5%. The project is a joint venture between National Thermal Power Corporation, Harayana State Electricity Board and Indraprastha Power Generation Company.

Engineering & construction major L&T gained 2.10% to Rs 2,669, after striking an all-time high of Rs 2,735.

Crompton Greaves (up 0.67% to Rs 273.25), Thermax (up 0.65% to Rs 602.30), and Bharat Bijlee (up 1.78% to Rs 2,420.30) were the other winners from capital goods sector. The BSE Capital Goods Index was up 1.26% at 13,767.31, and was the top gainer from sectoral indices on BSE. It also hit an all time high of 14,049.40

NTPC jumped 3.58% to Rs 163 after the state-run power generation firm signed an MoU with Asian Development Bank for setting up a joint venture company to undertake renewable power generation. NTPC and other government entities will hold up to 50% in the joint venture to be established with other strategic investors, who will hold the remainder. ADB is expected to acquire 20% at a later stage. Financial details were not disclosed.

India’s top oil exploration firm Oil and Natural Gas Corporation gained 0.71% to Rs 916 after chairman R.S. Sharma today said ONGC will produce 12 million standard cubic metres per day (mscmd) of gas from a block in the Krishna Godavari basin off India's east coast from 2012.

India’s only New York-listed pharma firm Dr Reddy’s Labs gained 0.73% to Rs 672 after it reported a 30.5% growth in net profit in Q1 June 2007 to Rs 182.50 crore over Q1 June 2006.

However, Ranbaxy (down 1.55% to Rs 345.20), Cipla (down 1.75% to Rs 188), and Biocon (down 2.65% to Rs 455), edged lower. The BSE Health Care Index slipped 0.5% at 3,778.21.

Index heavyweight Reliance Industries (RIL) slipped 0.13% to Rs 1,908.50. The stock hit an all-time high of Rs 1,932 in intra-day trade today. As per reports, RIL plans to build a fertiliser plant that will use natural gas to be produced from its fields off India's east coast. The company has submitted a proposal to the fertiliser ministry to set up a plant with a capacity of up to four million tones.

Real-state developer Housing Development and Infrastructure settled at Rs 558.60 on BSE, a modest premium of 11.72% over the price of Rs 500 per share. The stock debuted at Rs 567.50 and hit a low of Rs 473.50 and high of Rs 617.50. On BSE, 1.56 crore shares were traded on the counter. The stock also debuted in NSE's F&O segment with a lot size of 400. The HDIL IPO was subscribed 6.6 times.

ABG Shipyard soared 7.72% to Rs 492 after it secured a major order for construction of 12 vessels of approximately 32,000 dead weigh tonnage (DWT) for $360 million (Rs 1,460 crore) from Precious Shipping Public Co. Thailand, as a part of its ship acquisition programme. Following this order the order book position of ABG Shipyard stands at about Rs 5,560 crore.

Punj Lloyd slipped 0.36% to Rs 277.90 despite its joint venture Dayim Punj Lloyd securing a Rs 320-crore order from Saudi Kayan Petrochemical Company to build tanks and terminals.

Patni Computer Systems lost 2.55% to Rs 515. It acquired a US-based life-sciences services consultancy Taratec Development Corporation for $27.2 million, on 23 July 2007. With an annual revenue of $20 million, Taratec provides business, information technology and regulatory compliance products and services for the life-sciences industry, a high-growth market.

Jindal Stainless vaulted 5.23% to Rs 163 after its net profit rose 62.6% to Rs 82.60 crore in Q1 June 2007 over Q1 June 2006. Sales moved up 40% to Rs 1196.82 crore in Q1 June 2007 over Q1 June 2006.

Ahluwalia Contracts India rose 0.20% to Rs 530.30 after it scheduled a meeting of the board of directors of the company to be held on 31 July 2007 to consider and approve sub-division of shares.

Indiabulls Financial Services plunged 3.64% to Rs 640 despite reporting a surge in consolidated net profit in Q1 June 2007 to Rs 166 crore compared to Rs 77 crore in Q1 June 2006. Total revenue surged to Rs 443 crore, from Rs 221 crore. The results hit the market before trading hours today, 24 July 2007.

Modern Dairies jumped 5% upper limit of Rs 49.05 after its board approved a liberal 1:1 bonus issue after market hours yesterday, 23 July 2007.

Sun Pharma Advanced Research Company slumped 16.90% to Rs 90.45 after reporting a net loss of Rs 9.95 crore in Q1 June 2007. There were no sales reported in Q1 June 2007. The drug maker had declared the results after market hours yesterday, 23 July 2007.

Siemens rose 1.2% to Rs 1338 after the power equipment maker posted a 45% in net profit in Q3 June 2007 to Rs 81.79 crore over Q3 June 2006 and said it had valued its automotive unit at Rs 170 crore for the purpose of sale of the unit to another group company. Siemens is the Indian unit of Europe's largest engineering company Siemens AG.

Apollo Hospital Enterprises gained 2.41% to Rs 501.55 after India’s largest corporate hospital in terms of sales posted a 73% surge in net profit to Rs 30 crore in Q1 June 2007 over Q1 June 2006.

World's second-biggest forgings company Bharat Forge lost 1.33% to Rs 301.10, off the day’s high of Rs 316.95, after it reported a 26% growth in net profit to Rs 64.81 crore in Q1 June 2007 over Q1 June 2006.

Easun Reyrolle (ERL), a leading player in the field of power system protection, was locked at the 5% upper limit of Rs 1,248.25 after the company on Friday, 19 July 2007 set 7 August 2007 as record date for 5-for-1 stock split. The stock had jumped 5% to Rs 1,188.85 on Monday, 23 July 2007, boosted by the announcement.

Lube oil marker Castrol India jumped 10.91% to Rs 280 after it posted 31% growth in net profit to Rs 65.93 crore in Q2 June 2007 over Q2 June 2006

Private sector bank Kotak Mahindra Bank dropped 0.25% to Rs 741 after it said its board had approved issue of up to 1.7 crore equity shares in the domestic and/or international markets at a price and other terms and conditions to be decided by the board in accordance with the relevant regulations and guidelines issued by the Securities and Exchange Board of India.

Asian indices gained today, 24 July 2007. Japan's Nikkei (up 0.21% to 18,002.03), Taiwan's Taiwan Weighted (up 1.27% to 9,744.06), Hong Kong's Hang Seng (up 0.46% to 23,472.88) and Singapore's Straits Times (up 0.82% to 3,665.13) gained.

Shanghai Composite was down 0.07% to 4,210.32. It is near its all-time high of 4,335.96

European indices were trading on a weak note today, 24 July 2007.

US stocks rebounded yesterday, 23 July 2007, after a fresh round of buyout news offered evidence that Wall Street's penchant for dealmaking hasn't disappeared. Better-than-expected profit news from Merck & Co. also boosted the mood on Wall Street. The Dow Jones industrial average rose 92.34 points, or 0.67%, to 13,943.42

Broader stock indicators also advanced. The Standard & Poor's 500 index rose 7.46 points, or 0.49%, to 1,541.56. The technology-heavy Nasdaq composite index showed more modest gains, rising 2.98 points, or 0.11%, to 2,690.58.

Oil prices extended losses in Asia today, 24 July 2007 of nearly a dollar the previous session amid worries that crude prices have risen too high in recent weeks and on speculation that recent OPEC comments may signal a less bullish position on production and supplies. Light, sweet crude for September delivery lost 13 cents to $74.76 a barrel in Asian electronic trading on the New York Mercantile Exchange. The contract fell 90 cents to $74.89 a barrel on Monday, 23 July 2007.

Posted by FR at 5:45 PM  


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Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it.& take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations given in this blog.