The rally on the bourses gathered steam in the last one hour of day’s trade, as buying momentum intensified for index pivotals. The market had witnessed a bout of volatility in early afternoon trade when the sentiment was dampened by Reserve Bank of India (RBI) increasing the CRR (cash to reserve ratio) by 50 bps to 7% from 6.5% (100 bps is equal to 1%). The market had opened on a firm note tracking recovery in Asian markets.

All the sectoral indices on BSE posted gains, with shares from capital goods leading the rally on strong revenue growth visibility. Cement, FMCG, metal shares rallied. Banking shares gained in see-saw trade.

The BSE 30-share Sensex galloped 290.08 points or 1.90% at 15,550.99. The Sensex opened higher at 15,358.69 and slipped to a low of 15,224.82 at 12:20 IST, soon after the monetary policy was announced by RBI. From here it recovered slowly and steadily until it hit a high of 15,568.85 at 15:20 IST. It oscillated in a band of 344 points for the day.

The S&P CNX Nifty gained 88.80 points or 2% to settle at 4,528.85. The Nifty August 2007 futures settled at 4,510, a discount of 18.85 points as compared to spot closing.

The benchmark index BSE Sensex gained 11.90% in the past month from 14,650.51 on 29 June 2007, on strong FII inflow and good Q1 June 2007 results from India Inc.

The market breadth was strong on BSE with over 1.5 gainers for every loser as small-cap and mid-caps attracted buying interest: 1,695 shares advanced as compared to 973 that declined, while 79 remained unchanged

The BSE Mid-Cap Index rose 99 points or 1.5% to 6,718.08 while the BSE Small-Cap Index advanced 129 points or 1.6% to 8,070.63.

The central bank left the reverse repo rate, the rate at which it absorbs excess cash from banks, unchanged at 6%. It also kept bank rate unchanged at 6%. The RBI said it will endeavor to contain inflation close to 5% in 2007-08 and in the range of 4–4.5% over the medium term. It also maintained its FY 2008 GDP growth forecast unchanged at 8.5%.

The central bank also removed the Rs 3,000 crore cap on daily reverse repo transaction from 6 August 2007, the window through which it absorbs liquidity in a bid to check volatility in call money rates.

The total turnover on BSE amounted to Rs 5272 crore as against Rs 5,057.84 crore on Monday, 30 July 2007

NSE’s F&O turnover amounted to Rs 49276.21 crore as against Rs 44285.38 crore on Monday, 30 July 2007

Among the Sensex pack, 24 advanced while the rest declined

Shares from the banking sector, settled on a mixed note today, 31 July 2007. The BSE Bankex was up 1.2% at 8,148.68. ICICI Bank (up 0.50% to Rs 928), Bank of Baroda (up 2.34% to Rs 300.25), Vijaya Bank (up 1.40% to Rs 54.50), Federal Bank (up 1.82% to Rs 352.80) and State Bank of India (up 3.61% to Rs 1636) gained.

On the other hand, Union Bank of India (down 1.74% to Rs 155), Indian Overseas Bank (down 2.24% to Rs 126.70), Axis Bank (down 2.03% to Rs 603) and Andhra Bank (down 3.10% to Rs 84) declined

Shares from capital goods pack rallied on the back of strong revenue growth visibility due to their robust order book positions. The BSE Capital Goods index soared 4.90% to 13,321.78, and was the top gainer from sectoral indices on BSE. Bhel (up 5.48% to Rs 1734.10) and L&T (up 7.29% to Rs 2624), surged.

India's largest power equipment Bhel firmed up even as it reported a lower-than-expected 22% growth in net profit to Rs 288.9 crore in Q1 June 2007 over Q1 June 2006. At the end of Q1 June 2007, Bhel had an outstanding order book position of around Rs 62,400 crore.

ABB India (up 7.11% to Rs 1149), Crompton Greaves (up 6.92% to Rs 292), Punj Lloyd (up 5.20% to Rs 283.20), and Siemens India (up 3.46% to Rs 1306), were the other winners from the capital goods pack.

Cement shares posted smart gains on fresh buying. ACC (up 3.36% to Rs 1057), India Cements (up 7.59% to Rs 218.90) and UltraTech Cement Company (up 4.44% to Rs 937) surged.

India Cements' net profit rose 62.89% to Rs 183.4 crore in Q1 June 2007 over Q1 June 2006. Total Income rose 44.88% to Rs 710.91 crore in Q1 June 2007 over Q1 June 2006.

India’s top housing finance company HDFC vaulted 5.62% to Rs 2016. Recently HDFC reported a robust 26% rise in net profit in Q1 June 2007 over Q1 June 2006, driven by 25% asset growth and an improvement in asset yields.

ITC, India’s largest cigarette manufacturer, rose 1.82% to Rs 170.35. The stock gained after brokerage CLSA maintained `buy' with a target of Rs 200 post-results. ITC on Friday, 27 July 2007, reported a 20.2% rise in net profits to Rs 783 crore in Q1 June 2007 over Q1 June 2006 driven by higher cigarette prices and continuing growth in the consumer, hotels and agri-businesses.

Ranbaxy Laboratories, the country’s largest pharma company by sales, rose 3.80% to Rs 391 after it commercialised its first authorised generic product, Isoptin SR -- an anti hypertensive agent -- in the US market.

India's second largest listed telecom service provider in terms of sales, Reliance Communications advanced 3.83% to Rs 561.40 after its net profit soared 76.58% to Rs 837.3 crore in Q1 June 2007 over Q1 June 2006. Total income rose 18.21% to Rs 3229.69 crore in Q1 June 2007 over Q1 June 2006.

India’s largest private steel maker Tata Steel rose 1.30% to Rs 655.65. Tata Steel posted 28% rise in net profit to Rs 1222 crore Q1 June 2007 over Q1 June 2006, on foreign exchange gains and higher margins. It earned Rs 553 crore in the quarter as gains from foreign exchange. Net sales rose 7.66% to Rs 4198 crore in Q1 June 2007 over Q1 June 2006.

Metal stocks gained on fresh buying. The BSE Metal Index gained 2.2% to 11,630.92. Sterlite Industries (up 6.22% to Rs 659), Hindusatn Zinc (up 6.05% to Rs 622), Hindalco Industries (up 2.62% to Rs 170.50), Jindal Steel & Power (up 4.49% to Rs 4191) and Sail (up 2.87% to Rs 150.50), advanced from metal pack.

Fourth largest IT services exporter Satyam Computer Services rose 0.52% to Rs 481.40 on bagging two multi million dollar contracts to support International Federation of Association Football and its major forthcoming events.

Reliance Industries (RIL), the country’s largest private sector company, gained 2.44% to Rs 1893. There were reports that after acquiring the retail venture of the Adani Group, RIL is now likely to acquire Adani’s Rs 331 crore gas supply network linking three towns in western India.

India's top tractor and utility vehicle maker Mahindra & Mahindra lost 2.86% to Rs 731, on 3.09 lakh shares. It was the top loser from the Sensex pack. The stock slipped for the second day in a row today after it posted a 6.4% fall in net profit to Rs 191 crore in Q1 June 2007 over Q1 June 2006. The results were declared during market hours yesterday, 30 July 2007.

Hindustan Unilever (down 1.32% to Rs 206), Infosys (down 0.62% to Rs 1976) and Tata Motors (down 1.15% to Rs 699), were the other losers from the Sensex pack.

Shares of oil marketing companies advanced on reports that petroleum price hike is on cards. Bharat Petroleum Corporation (up 5.26% to Rs 320.25), and Indian Oil Corporation (up 1.94% to Rs 402.80), advanced.

Aditya Birla Nuvo jumped 7.56% to Rs 1478.50 after its consolidated net profit rose 49.60% to Rs 99.80 crore for Q1 June 2007 over Q1 June 2006. Due to acquisition of Minacs Worldwide Inc, Canada by A V TransWorks, a subsidiary of the company, the consolidated results for the quarter are not comparable.

Mukand surged 4.51% to Rs 84.50 on media reports that the firm may offer stake to Bosch India and alternatively may hive off a division into a joint venture with Bosch India. The Mukand promoters are yet to firm their decision on offering equity stake to Bosch India.

Drug maker Divi's Laboratories dropped 2.14% to Rs 6685 even as it reported a 151.5% rise in net profit to Rs 67.28 crore in Q1 June 2007 over Q1 June 2006.

JK Tyre & Industries jumped 3.64% to Rs 158 after its board approved a rights issue of one share for every three held.

Jindal Drilling & Industries dropped 1.97% to Rs 774.90 after it board deferred the decision to split its shares. The matter will be taken up at an appropriate time, the company said in a announcement late on Monday, 30 July 2007.

Agrochemicals and pesticides maker United Phosphorus rose 1.67% to Rs 305 after it reported a 36.5% growth in consolidated net profit to Rs 73.78 crore in Q1 June 2007 over Q1 June 2006.

Hanung Toys & Textiles rose 2.13% to Rs 132 after its board approved raising $50 million via foreign currency convertible bonds/global depository receipts/qualified institutional placement for part financing capital expenditure and possible acquisition program to be undertaken by the company.

Valecha Engineering plunged 5.64% to Rs 293 on profit taking after its board recommended bonus in the ratio of 1 share for every 2 shares held. The company’s current equity is Rs 7.95 crore, with 79.5 lakh outstanding shares of face value of Rs 10.

Ingersoll Rand India galloped 14.87% to Rs 346 after its net profit spurted 1796% to Rs 158.9 crore in Q1 June 2007 over Q1 June 2006 boosed by a huge exceptional income of Rs 140.50 crore. Total income rose 9.39% to Rs 131.13 crore in Q1 June 2007 over Q1 June 2006.

Dredging Corporation of India flared up 10.88% to Rs 546.90 On 30 July 2007, the company said its net profit rose 62.17% to Rs 53.92 crore in Q1 June 2007 over Q1 June 2006. Sales jumped 83.90% to Rs 194.20 crore in Q1 June 2007 over Q1 June 2006.

Unitech surged 4.75% to Rs 562.30 after its shareholders approved a 1:1 bonus issue.

Asian markets gained in volatile trade today, 31 July 2007. Hong Kong's Hang Seng (up 1.96% at 23,184.94), Taiwan Weighted (up 2.37% at 9,287.25), Singapore's Straits Times (up 0.61% at 3,547.66) and South Korea's Seoul Composite (up 1.39% at 1,933.27), edged higher.

Japanese stocks were mixed as losses in electronic parts maker Kyocera Corp. were matched by gains in Mitsubishi Electric and Sharp Corp. Nikkei slipped 0.37% at 17,248.89.

Shanghai Composite was up 0.68% to 4,471.03

All the European indices were trading higher today, 31 July 2007.

Wall Street found a foothold yesterday, 30 July 2007 as investors, still anxious that a credit crunch could crimp US growth, took advantage of low prices after last week's steep losses. The Dow Jones advanced 92.84 points, or 0.70%, to 13,358.31. Broader stock indicators also posted gains. The Standard & Poor's 500 index added 14.96 points, or 1.03%, to 1,473.91, and the Nasdaq Composite index advanced 21.04 points, or 0.82%, to 2,583.28.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 1117.25 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 854.32 crore on Monday, 30 July 2007.

Oil prices were little changed on Tuesday, 31 July 2007 with US crude still within sight of its record high as traders feared further declines in hefty US crude stocks. US crude eased 16 cents to $76.67 a barrel. London's Brent crude slipped 14 cents to $75.60 a barrel.