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Sensex rose 170.16, just 253 points away from new high

Thursday, September 6, 2007

The market scaled higher level as buying continued throughout the day, except for the odd blip in early trade. Asian markets rebounded from initial sluggishness while European stocks were trading mixed.

The BSE 30-share Sensex rose 170.16 points or 1.10% at 15,616.31. It opened lower at 15,383.13 and slipped further to hit a low of 15,350.18 at the onset of the trading session due to the overnight fall in the US stocks caused by weak US housing data.

However, it bounced sharply from that level to hit a high of 15,637.74. At the day’s low of 15,350.18, the Sensex had lost 95.97 points for the day.

Sensex is now just 252.54 points away from its all time high of 15,868.85 hit on 24 July 2007.

The S&P CNX Nifty was up 42.75 points or 0.96% at 4,518.60. The Nifty September 2007 futures settled at 4507, a discount of 11.60 points as compared to spot closing

The market breadth was strong on BSE, with 1,698 shares advancing as compared to 1,050 that declined, while 74 remained unchanged.

The total turnover on BSE amounted to Rs 4646 crore as compared to Rs 5,167.23 crore on Wednesday, 5 September 2007. The NSE F&O turnover was Rs 40927.51 crore as compared to Rs 42642.91 crore on Wednesday, 5 September 2007.

The BSE Mid-Cap Index rose 1.11% to 6,848.68 while the BSE Small-Cap Index gained 1.28% to 8,395.58. Both these indices outperformed the Sensex by small margin

All the sectoral indices on BSE settled higher. BSE Consumer Durables index (up 1.09% to 4,497.19), BSE FMCG Index (up 1.54% at 2,032.09), BSE PSU index (up 1.22% to 7,287.77), BSE Oil and Gas Index (up 1.11% at 8,231.83), BSE Auto Index (up 1.24% at 4,937.54) and BSE Bankex (up 1.15% at 8,110.85), outperformed the Sensex.

However, BSE Realty index (up 0.37% to 7,547.65), BSE IT Index (up 0.41% at 4,665.46), BSE Metal Index (up 0.76% at 11,687.04), BSE TecK index (up 0.32% to 3,647.37), BSE Health Care Index (up 0.50% at 3,717.03), BSE Capital Goods Index (up 0.68% at 13,658.66 ) were underperformers.

From the 30-member Sensex pack, 27 advanced while the rest declined.

India's largest private sector power utility company by sales Reliance Energy advanced 4.91% to Rs 863.80 on 14.75 lakh shares. The stock surged to an all time high of Rs 864.70. As per reports the firm is planning to hive off its engineering, procurement and construction division into a new company. It was the top gainer from the Sensex pack.

Cement stocks held on to gains after opening firm on healthy dispatches in August 2007. The AV Birla group diversified company Grasim vaulted 4.25% to Rs 3186. It hit an all time high of Rs 3195

Other cement companies ACC (up 1.72% to Rs 1101), Ambuja Cement (up 1.56% to Rs 140), India Cements (up 4.31% to Rs 274.60), UltraTech Cement Company (up 1.68% to Rs 998), and Birla Corporation (up 3.55% to Rs 317.95) also edged higher.

HDFC (up 3.79% to Rs 2131), and ITC (up 3.15% to Rs 176.50), were the other gainers from the Sensex pack.

Ranbaxy Laboratories, India’s top drug maker by sales, climbed 3.76% to Rs 415, on a newspaper report that the drug maker had submitted an initial bid for US-based Bradley Pharmaceuticals Inc

However Dr. Reddy's Laboratories, India’s only drug maker listed in the US, was down 0.05% to Rs 661.95. The company has received approval from the US Food and Drug Administration for ulcer drug ranitidine hydrochloride tablets.

State Bank of India (SBI), the nation’s largest banking entity by net profit advanced 2.60% to Rs 1635.90. As per reports, it will raise about Rs 1,500 crore through a bond issue this week. The issue will be part of SBI's Tier II capital and the size of core issue likely to be set at Rs 1,000 crore with over subscription option of Rs 500 crore.

Auto shares also rose on renewed buying. Tata Motors, India’s top auto firm by revenue, rose 2.06% to Rs 712.60. Hero Honda Motors (up 2.72% to Rs 652), Bajaj Auto (up 1.44% to Rs 2340) and Maruti Udyog (up 0.57% to Rs 878) were the other gainers from auto pack.

Mahindra & Mahindra, the country's top utility vehicle manufacturer by sales edged higher by 1.84% to Rs 723 boosted by reports that it is looking to buy a design firm in Italy as part of its plans to expand presence in the automotive space.

India's largest private sector entity by market capitalisation and oil refiner Reliance Industries rose 1.51% to Rs 1987 on 5.05 lakh shares. It recovered from day’s low of Rs 1948. RIL has completed acquisition of Indian Petrochemicals Corporation (IPCL), a move that could help it control two-thirds of the country's petrochemical market.

India’s largest FMCG firm by sales Hindustan Unilever (HUL) rose 1.91% to Rs 216.50. As per reports, HUL will end a seven-week lockout on Monday, 10 September 2007, at one of its factories at Assam after a dispute with workers was resolved. The factory makes almost a third of the company’s personal care products.

IT pivotals rose on late buying. Wipro (up 1.21% to Rs 478.50), TCS (up 0.35% to Rs 1075), Satyam Computers (up 0.78% to Rs 452) and Infosys (up 0.32% to Rs 1903) edged higher.

India's largest aluminium producer by sales Hindalco Industries was the top loser from the Sensex pack. It lost 1.37% to Rs 154.80 on 9.90 lakh shares.

India’s largest listed cellular services provider in terms of profit, Bharti Airtel slipped 0.28% to Rs 846.60. As per recent 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

IVRCL Infrastructures (Rs 132.64 crore), Reliance Energy (Rs 124.95 crore), State Bank of India (Rs 104.89 crore), Indiabulls Financial Services (Rs 103.93 crore) and GMR Infrastructures (Rs 102.34 crore) were among the turnover toppers on BSE.

A lot of action was seen in 14 stocks that were included in the futures & options segment of NSE effective today, 6 September 2007.

3i Infotech (up 0.34% to Rs 149), Aptech (up 5.99% to Rs 338.10), Bhushan Steel (up 1.13% to Rs 948.70), Biocon (up 0.87% to Rs 471.05), CMC (up 3.06% to Rs 1156.95), Lakshmi Machine Works (up 9.56% to Rs 3205), NIIT Technologies (up 6.62% to Rs 365), Nucleus Software (up 0.63% to Rs 373), Sasken Communications (up 1.21% to Rs 382), Tech Mahindra (up 3.31% to Rs 1329), and Yes Bank (up 3.43% to Rs 189.90) surged.

But Welspun Gujarat Stahl Rhoren (down 5.77% to Rs 241), Tulip IT Services (down 0.75% to Rs 921.10), and Havells India (down 1.56% to Rs 512.10) edged lower.

Textile and apparel company Raymond was down 0.62% to Rs 273.10. It has reportedly entered the Rs 800-crore premium women's western-wear market with the launch of ColorPlus Women. Raymond will open 175 stores in the next three years to retail the range of ColorPlus apparel.

Punj Lloyd rose 1.63% to Rs 296. As per reports, the firm is planning a foray into defence equipment. It proposes to produce guns, rockets, missile artillery systems and related defence equipment and has applied for an industrial licence to make these products. The licensing committee of the ministry of commerce is expected to take a decision on this soon.

Color Chips (India) slumped 3.12% to Rs 7.77 after the National Stock Exchange said it had decided to suspend trading in the stock for non-compliance of provisions of listing agreement. The stock will be suspended from NSE after trading hours on 12 September 2007.

Saregama India jumped 10% to Rs 302.60. 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. The stock has risen 21% in the past two trading sessions.

Kernex Microsystem (India) gained 5% to Rs 359.40 on recent rumors that it may bag a six-year long railways contract worth Rs 2,000 crore in joint venture with Konkan Railways.

MSK Projects (India) rose 1.77% to Rs 100.40 after it received order worth of Rs 76.45 crore from Madhya Pradesh Road Development Corporation for execution of the Khandwa-Khargone (SH-26) road project.

Punjab Chemicals and Crop Protection soared 7.24% to Rs 155.50 on reports the firm is eyeing a 30% stake in US-based PSD Chemicals, a privately-held firm in the US. Reportedly, the total deal size could be around Rs 100 crore.

Gujarat Industries Power Company spurted 9.22% to Rs 7.40. 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.

iGate Global Solutions flared up 6.16% to Rs 145.70. Yesterday (5 September 2007), Reliance Long Term Equity Fund bought 6.51 lakh shares of the company via two bulk deals on the BSE.

Hindoostan Spinning & Weaving Mills jumped 5% at Rs 56.10. It has spurted recently 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.

Networth Stock Broking jumped 5% to Rs 99.80. The stock had risen 5% yesterday, 5 September 2007, on rumors that Hinduja Group is buying a majority stake in the company. The company clarified after market on that day, that that the company has been considering & contemplating proposal from investors. However no firm decision has been taken by it, neither has any arrangement was finalized.

Hindustan Dorr Oliver rose 2.22% to Rs 131 bagged a contract of Rs 77 crore from National Aluminium Company (Nalco)

Sical Logistics gained 4.86% to Rs 257 after Old Lane Mauritius IV invested Rs 107 crore for a 26% stake in the company’s new unit, Sical Infra Assets.

Escorts dropped 1.61% to Rs 103.85 after the National Stock Exchange said after trading hours on Wednesday, 5 September 2007, it had barred fresh positions in the company's derivatives contracts as the open interest had crossed the 95% limit

Drug maker Abbott India was up 0.78% to Rs 575. The stock came off the session’s high of Rs 585. It said after trading hours on Wednesday, 5 September 2007, its board had approved buying back shares worth Rs 51.84 crore, at a price not exceeding Rs 650 per share.

KS Oils surged 5.51%to Rs 71.75 after it said during trading hours on Thursday, 6 September 2007, it plans to form a joint venture in Malaysia to invest in palm plantations. The company will hold 49% in the joint venture.

Hindustan Zinc rose 2.96% to Rs 724.10 even it cut zinc prices by 3.7% to Rs 139200 per tonne, with ieffect from 6 September 2007. The company said lead prices were reduced by 6% to Rs 139100 a tonne.

Business directory publisher Infomedia India gained 5% to Rs 256.45 on a newspaper report that said a clutch of private equity firms were vying for ICICI Venture's 63% stake in it.

The European Central Bank kept interest rates unchanged at 4% in a meeting held today, 6 September 2007.

There are hopes that the US Federal Reserve will cut the fed funds rate by at least a quarter percentage point on 18 September 2007.

European markets, which opened after the Indian markets, were trading mixed today. Among key European indices, United Kingdom (down 0.11% to 6,253.50) and France (down 0.23% to 5,538.53) slipped while Germany's DAX rose 0.34% to 7,613.93.

Asian markets rebounded from lower levels today, 6 September 2007. Japan's Nikkei (up 0.61% at 16,257), Taiwan's Taiwan Weighted (up 1.16% at 9,017.08), South Korea's Seoul Composite (up 1.24% at 1,888.81) and Shanghai Composite (up 1.56% at 5,393.56) rose.

Hang Seng index was down marginally by 0.08% at 24,050.40

US markets finished lower yesterday, 5 September 2007, after weak US housing data revived concerns about the health of the world's biggest economy. The Dow Jones Industrial Average slipped 143.39 points, or 1.07%, at 13,305.47. Broader stock indicators also lost ground. The

Standard & Poor's 500 index fell 17.13 points, or 1.15%, to 1,472.29, and the Nasdaq Composite index fell 24.29 points, or 0.92%, to 2,605.95.

Crude oil prices rose to $76 a barrel on Thursday, 6 September 2007 buoyed by expectations that US crude and gasoline inventories fell last week. US crude rose 33 cents to $76.06 a barrel while London Brent crude was up 21 cents at $74.55 a barrel.

The National Stock Exchange said on Thursday, 6 September 2007, it will extend trading timing by 45 minutes from 25 September 2007 to 9 October 2007 due to loss of satellite connectivity during this period. Trading will close at 11:25 IST and re-open at 12:10 IST. The final closing will be at 16:15 IST, instead of 15:30 IST.

Posted by FR at 7:06 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.