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Market ends its eight-day rally

Wednesday, September 5, 2007

Domestic stock markets snapped its eight-day winning streak today, 5 September 2007, as profit booking emerged at higher levels in late trade. It saw volatile movements towards the later half of the day, in sync with Asian and European markets, which also swung in and out of positive zone. Buying was seen in software, sugar and realty stocks. While selling was witnessed in capital goods and oil & gas stocks.

The BSE 30-share Sensex declined 19.25 points or 0.12% at 15,446.15. It opened higher at 15,535.35 and advanced further to hit a high of 15,580.86. It settled at lowest point of the day at 15,407. It oscillated in a range of 173.86 points for the day

The Sensex had surged 1,301 points, or 9.18%, in eight trading sessions, from 14,163.98 on 23 August 2007 to 15,465.40 on 4 September 2007. A fall in inflation and robust economic data along with steady inflow of FIIs has helped the market rally in the recent past.

The S&P CNX Nifty slipped 3.40 points or 0.08% at 4,475.85. The Nifty September 2007 futures settled at 4416.15, a sharp discount of 59.70 points as compared to spot closing

The market breadth which was strong throughout the day, eased in late-afternoon session. On BSE; 1,403 shares advanced as compared to 1,331 that declined, while 65 remained unchanged. This is in contrast to morning session, when 1253 shares advanced, 324 declined and 29 were unchanged.

The BSE Mid-Cap Index rose 0.11% to 6,773.34 while the BSE Small-Cap Index gained 0.23% to 8,289.81. Both these indices outperformed the Sensex.

Most of the sectoral indices on BSE settled higher. The BSE Health Care Index (up 0.50% at 3,698.69), BSE Consumer Durables index (up 1.07% to 4,448.64), BSE Realty index (up 0.77% to 7,520.04), BSE PSU index (up 0.08% to 7,200.09), BSE FMCG Index (up 0.35% at 2,001.21), BSE Metal Index (up 0.17% at 11,598.59), BSE TecK index (up 0.02% to 3,635.58), BSE Auto Index (up 0.05% at 4,876.96) BSE Bankex (up 0.15% at 8,018.42), and BSE IT Index (up 0.44% at 4,646.29) outperformed the Sensex.

However, BSE Capital Goods Index (down 0.48% at 13,566.71) and BSE Oil and Gas Index (down 0.56% at 8,141.59), were underperformers.

The total turnover on BSE spiked today to Rs 5,167.23 crore as compared to Rs 4207 crore on Tuesday, 4 September 2007.

The NSE’s F&O NSE F&O turnover was Rs 42642.91 crore as compared to Rs 39013.75 crore on Tuesday, 4 September 2007.

From 30-member Sensex pack, 18 slipped while the rest gained.

India’s third largest pharma company by sales, Cipla gained 2.17% to Rs 183.50 on 9.27 lakh shares. It was the top gainer from Sensex pack.

Ambuja Cements, India's third-largest cement maker, gained 1.98% to Rs 138.80 after the company said during trading hours on Wednesday, 5 September 2007, its cement shipments rose 3% to 1.15 million tonnes in August 2007 over August 2006.

India’s largest power generation company by sales NTPC advanced 1.74% to Rs 184.50. The stock hit an all-time high of Rs 188.60. As per reports, NTPC is looking at the possibility of acquiring Karnataka-based public sector firm Tungabhadra Steel Products (TSPL). TSPL is a supplier of hydraulic gates, radial and vertical gates for hydel power plants, equipment for sponge iron and thermal power plants, and even oil rigs.

ICICI Bank (up 1.45% to Rs 917.25) and Grasim (up 1.06% to Rs 3055) were the other gainers from the Sensex pack.

IT pivotals gained on fresh buying. Wipro (up 1.08% to Rs 471), Infosys (up 0.20% to Rs 1892.30) and TCS (up 0.87% to Rs 1075) rose

However India’s fourth largest software company by profit, Satyam Computers slipped 0.72% to Rs 446 on high volumes of 14.26 lakh shares after a block deal of 11.61 lakh shares was struck on the counter on BSE at Rs 453.30 by 09:58 IST.

The rupee was hovering at 40.94, slightly firmer than Tuesday (4 September 2007)’s close of 40.97/98.

India’s largest private sector entity and oil refiner Reliance Industries (RIL) slipped form an all-time high of Rs 1999.30. It shed 1.28% to Rs 1946.20 on 6.56 lakh shares. CPI (M) on Tuesday, 4 September 2007, joined the row over pricing of gas to be produced from RIL’s Krishna Godavari basin, asking the government to reject what it feels is an artificially inflated price proposed by the company.

RIL said after market closed on Tuesday, 4 September 2007, it had acquired a majority stake in Gulf Africa Petroleum Corp for an undisclosed sum.

India’s top small car maker in terms of net profit Maruti Udyog slipped 2.68% to Rs 869.95 on 1.36 lakh share after it hinted that it may continue to offer discounts on its car models to boost sales in the upcoming festive season. It was the top loser from the Sensex pack.

Ranbaxy Laboratories (down 2.09% to Rs 398.20), and ACC (down 2.05% to Rs 1075.10) were the other losers from the Sensex pack.

India’s largest listed cellular services provider in terms of profit, Bharti Airtel slipped 1.51% to Rs 846.40. As per reports, in the Karnataka circle, Bharti Airtel cannot acquire any operator as it already has a 39.7% market share. The 40% market share cap suggested by the Telecom Regulatory Authority of India (Trai) is likely to make mergers between existing telecom operators extremely tough.

Larsen & Toubro (L&T), India’s largest private sector engineering company in terms of sales lost 1.82% to Rs 2575.55. It’s ECC division in consortium with Paul Wurth, Italy bagged a Rs 1205 crore order from Bhushan Steel. L&T’s share in this project is pegged at Rs 760.5 crore.

Among side counters, Escorts (up 8.94% to Rs 103), Omnitech Solutions (up 20% to Rs 155.30), and Allied Digital (up 9.58% to Rs 350.10) surged.

While SEL Manufacturing (down 17.58% to Rs 147.40), JCT (down 6.90% to Rs 9.99) and Indiabulls Financial Services (down 5.81% to Rs 532.50) slipped

Sugar shares surged on renewed buying. Dwarikesh Sugar (up 2.50% to Rs 55.40), Sakthi Sugar (up 2.99% to Rs 75.75), Triveni Engineering (up 5.09% to Rs 81.55), Balrampur Chini Mills (up 2.18% to Rs 60.95), Shree Renuka Sugars (up 1.10% to Rs 528.90), and Bajaj Hindustan (up 0.75% to Rs 135.05) advanced.

Everonn Systems (Rs 86.77 crore), Reliance Industries (Rs 129.19 crore), Lakshmi Machine Works (Rs 125.48 crore), Take Solutions (Rs 124.66 crore), and Reliance Energy (Rs 117.57 crore) were among the turnover toppers on BSE.

Akruti Nirman moved up 4.34% to Rs 568 on reports that the company has tied-up with a Dubai-based firm Limitless, a subsidiary of Dubai World, to bid for the project for redevelopment of Asia’s largest slum, Dharavi in Mumbai.

Kernex Microsystem (India) jumped 5% to Rs 342.30 on rumors that it may bag a 6-year long railways contract worth Rs 2,000 crore in joint venture with Konkan Railways.

Ashok Leyland had gained 0.91% to Rs 38.70 on reports that the company is open to acquisitions and alliances in medium and heavy truck sectors.

Shreyas Shipping & Logistics had jumped 14.62% to Rs 103.50 after it bought 51% in Sri Lankan transportation and freight forwarding firm Haytrans (India) for an undisclosed amount.

Saregama India jumped 10% to Rs 275.10 after Sonata Investments acquired 10.58 lakh shares of the company, at Rs 260 per share in a block deal on Tuesday, 4 September 2007 on BSE.

Kirloskar Brothers slipped from a high of Rs 477.70 to settle 1.12% lower at Rs 464.95. Its joint venture firm KBL-PLR bagged a Rs 118.27 crore project from Andhra government's irrigation department. Of the total value of the contract, Kirloskar's portion is worth Rs 94.27 crore.

Autoline Industries rose 1.92% to Rs 199. As per reports, is in advanced talks with a US-based maker of sheet metal-based assembled products with $25 million (Rs102.5 crore) in sales. The firm is also in initial talks with a European sheet metal component supplier which it is interested in acquiring.

Gayatri Projects had gained 0.10% to Rs 287.35 on bagging a 3-year long road contract worth Rs 311.89 crore in Orissa.

Cambridge Technology Enterprises rose 1.21% to Rs 50.15 after it said before trading hours on Wednesday, 5 September 2007, its board has approved raising Rs 23.37 crore through the issue of 4.25 million convertible equity warrants at a price of Rs 55 each.

Bombay Burmah Trading Corporation surged 5% at Rs 488.50 on BSE on reports that the company may use its cash reserves to buy Danone’s 25.5% stake in Britannia Industries. As per its latest annual report, it has Rs 608.27 crore in consolidated reserves and surplus.

Hindoostan Spinning & Weaving Mills jumped 5% at Rs 56.10. It had gained 5% yesterday, 4 September 2007 on reports that the firm has sold 8 acres of its defunct mill located near the Siddhivinayak temple at Prabhadevi, Mumbai, for Rs 350 crore to Mumbai-based builder Akruti Nirman.

Gujarat Industries Power Company spurted 8.62% to Rs 69.95. Recently, its board approved expansion of its lignite-fired power generating capacity at an investment of Rs 1300 crore by installing two units of 250 mega watts each.

Exide Industries advanced 4.88% to Rs 64.45. Earlier on 28 August 2007, the company’s board had approved to raise Rs 150 via rights issue in the ratio of 1:15 i.e one rights share for every 15 shares held at Rs 30 per share.

Puravankara Projects was down 1.04% to Rs 371.50. As per reports, it is close to signing a memorandum of understanding (MoU) with France-based hospitality group Accor for the former’s first hotel project in Bangalore.

Pyramid Saimira Theatre (PSTL) was down 4% to Rs 336.90. It hit a high of Rs 361.90 on repots that it is bidding for Hoyts, the largest Australian chain of multiplexes owned by the Kerry Packer group, for around $360 million (Rs 1500 crore).

Jet Airways rose 0.55% to Rs 830, on reports it is delaying a planned $400-million rights issue because of the recent turmoil in the global credit markets.

The government late on Tuesday, 4 September 2007, announced setting up of a 15-member UPA-Left committee which will look into the concerns raised by Left parties on the Indo-US civil nuclear deal. External Affairs Minister Pranab Mukherjee will be the convenor of the committee. The committee will have six members each from Congress and Left parties and one each from UPA constituents RJD, DMK and the NCP.

European markets which opened after the Indian markets, were trading lower. Key benchmark indices in Germany (down 0.80% to 7,660.35), France (down 1.12% to 5,609.40) and United Kingdom (down 0.97% to 6,314.70) slipped.

Asian markets that began trading before the Indian markets, settled on a mixed note. Hong Kong's Hang Seng (up 0.77% at 24,069.17), Shanghai Composite (up 0.31% to 5,310.76) and Singapore's Straits Times (up 2.04% at 3,445.08) advanced.

However, Japan's Nikkei (down 1.60% at 16,158.45), Taiwan Weighted (down 0.10% at 8,913.85), and South Korea's Seoul Composite (down 0.49% at 1,865.59) slipped.

US stocks advanced yesterday, 4 September 2007. The Dow Jones industrial average rose 91.12 points, or 0.68%, to 13,448.86. Broader stock indicators also advanced. The Standard & Poor's 500 index added 15.43 points, or 1.05%, to 1,489.42, and the technology-dominated Nasdaq Composite index surged 33.88 points, or 1.30%, to 2,630.24.

Crude oil rose towards $75 today, 5 September 2007, after predictions of more hurricanes in the Atlantic Ocean raised concern over potential oil and gas outages. US crude was up 70 cents at $74.74 while London Brent crude was up 45 cents at $73.86.

Posted by FR at 5:47 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.