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Sensex settles above 15,400

Monday, September 3, 2007

The market was steady throughout the day, except an initial hiccup, on continued buying interest for index pivotals. Today is the seventh straight day of gains for the market. European and Asian markers were mixed today, 3 September 2007.

In opening trade, the market had pared gains after surging initially. It had opened on a firm note following the rally in US stocks on Friday (31 August 2007) after Federal Reserve’s chairman Ben Bernanke and US president George Bush assured that they would not let the economy to collapse.

The BSE 30-share Sensex rose 103.45 points or 0.68% at 15,422.05. It opened higher at 15,401.99 and advanced further to hit a high of 15,427.16. The index touched a low of 15,323.05. It oscillated in a narrow band of 104.11 points in the day.

The BSE Sensex has surged 1258 points, or 8.83%, in the past seven trading sessions, from 14,163.98 on 23 August 2007 to current 15,422.05

The S&P CNX Nifty was up 10.75 points or 0.24% at 4,474.75. The Nifty September 2007 futures settled at 4446, a discount of 28.75 points as compared to spot closing

Data released during trading hours on Friday (31 August 2007) showing strong economic growth in India in Q1 June 2007 and easing of inflation also aided upmove on the bourses today.

The market breadth was strong on BSE, with 1,971 shares advancing as compared to 760 that declined, while 53 remained unchanged.

The BSE Mid-Cap Index rose 1.69% to 6,720.07 while the BSE Small-Cap Index gained 1.66% to 8,194.45. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 4,715 crore as against Rs 5,070.78 crore on Friday, 31 August 2007. The NSE’s F&O turnover was Rs 34,491.99 crore as compared to Rs 45,012.59 crore on Friday, 31 August 2007

All the sectoral indices on BSE posted gains, except the BSE Oil and Gas Index.

The BSE Health Care Index (up 1.64% at 3,631.33), BSE Bankex (up 1.67% at 7,990.32), BSE Capital Goods Index (up 1.22% at 13,588.78), BSE Consumer Durables index (up 2.63% to 4,412.22), BSE Realty index (up 1.16% to 7,325.50), BSE FMCG Index (up 1.48% at 2,003.11), and BSE PSU index (up 1.83% to 7,225.03) outperformed the Sensex.

However BSE TecK index (up 0.34% to 3,638.87), BSE IT Index (up 0.48% at 4,607.82), BSE Auto Index (up 0.44% at 4,899.58), BSE Metal Index (up 0.62% at 11,637.94), and BSE Oil and Gas Index (down 0.06% at 8,155.11), were underperformers.

From the 30-member Sensex pack, 22 rose while the rest declined.

India’s largest power generation company NTPC galloped 6.49% to Rs 184.55 on 24.59 lakh shares. It hit an all time high of Rs 187.90 which is a record high for the counter. It was the top gainer from Sensex pack. As per recent reports, the government plans to divest 4.75% of its stake in NTPC through a public offer that could fetch it nearly Rs 6000 crore.

Domestic pharma companies advanced on renewed buying. India’s second largest drug maker by sales Dr Reddy’s Laboratories advanced 3.80% to Rs 665 on reports that it has made a non-binding bid to acquire US-based Bradley, which has a strong presence in the dermatology segment.

Cipla, the country’s third largest drug maker by sales, gained 2.75% to Rs 172, while Ranbaxy Laboratories, the country’s top drug maker, rose 0.97% to Rs 395.10

Banking pivotals gained on fresh buying. State Bank of India, the country’s largest bank by net profit, rose 0.16% to Rs 1602, off its day’s high of Rs 1621.90. As per reports, the government may give in-principle approval to the intermediate holding company proposed by State Bank of India (SBI). It plans to transfer its investments in its insurance and mutual funds businesses to a subsidiary within the next two to three months. The subsidiary in turn will act as a holding company for SBI’s insurance and mutual fund businesses. It may be listed in 2008-09.

ICICI Bank (up 2.70% to Rs 908.50) and HDFC Bank (up 0.49% to Rs 1177) also gained.

India’s largest power equipment manufacturer Bharat Heavy Electricals (Bhel) rose 3.01% to Rs 1946. It also hit an all time high of Rs 1950. On 29 August 2007, it had won Rs 1,990-crore order for the supply and installation of steam generator and turbine packages at the upcoming 1,000 mega watt Vallur Thermal Power Project in Tamil Nadu.

India’s top small car marker Maruti-Suzuki India rose 1.47% to Rs 881. It posted 25% rise in domestic sales to 60,229 units in August 2007 compared to 48,259 units in August 2006.

IT stocks saw mixed trend. Infosys (up 0.37% to Rs 1862) and Satyam Computers (up 0.59% to Rs 450) rose. However TCS (down 0.75% to Rs 1057), and Wipro (down 1.69% to Rs 474.10), declined. The rupee was hovering at 40.89 against the dollar, slightly weaker than Friday (31 August 2007)’s close of 40.875/885.

Hindustan Unilever (HUL) was up 0.43% to Rs 209.50 on high total volume of 33.09 lakh shares. A block deal of 10 lakh shares was struck on the Hindustan Unilever (HUL) counter at Rs 208 per share on BSE by 10:06 IST. Another block deal of 20 lakh shares was struck on the HUL counter at Rs 208.50 per share on BSE by 11:26 IST.

India’s largest company by market capitalisation and oil refiner Reliance Industries (RIL) slipped from an all time high of Rs 1981. It was down 0.57% to Rs 1948.25 on 6.45 lakh shares. It is reportedly in the process of setting up an optic fibre cable (OFC) network in Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra and Gujarat, which will run alongside its gas pipeline from Kakinada to Bharuch.

India’s top oil explorer Oil and Natural Gas Corporation (ONGC) lost 1.93% to Rs 841 on 99,939 shares. It was the top loser from the Sensex pack. It has reportedly entered into an agreement with global oil giant British Petroleum (BP) to jointly undertake oil and gas exploration and production projects in India and overseas.

Bharti Airtel (down 1.92% to Rs 863) and Wipro (down 1.69% to Rs 474.10) were the other losers from the Sensex pack.

India’s second largest bike maker Bajaj Auto lost 0.90% to Rs 2324. Its vehicle sales in August fell 6% to 195,707 units from 208,163 units a year earlier. It said sales of motorcycles declined 7% to 1,67,483 units from 1,80,570 and sales of all two-wheelers slipped 6% to 1,70,203 units from 1,82,013 units a year earlier. The company’s exports jumped 75% to 56,452 units from 32,283 units a year earlier.

Among side counters, Bhushan Steel (up 20% to Rs 911.60), JCT (up 20% to Rs 9.15), NIIT Technologies (up 13.90% to Rs 351.75), Adani Enterprises (up 12.21% to Rs 383.80), Sasken Communications (up 10.87% to Rs 379.80) and Gulf Oil Corporation (up 10% to Rs 1056.80) surged.

Cairn India was up 0.37% to Rs 150.55. As per reports it plans to invest around Rs 1,000 crore over three years in new discoveries at 15 blocks under its fold, including three each in Andhra Pradesh and Rajasthan, four in Gujarat and two in Uttar Pradesh.

Paramount Communications surged 17.40% to Rs 33.40 on reports that it plans to buy UK-based AEI Cables, an unit of TT Electronics, for about Rs 260 crore. AEI Cables is a provider of cabling solutions to the industries like construction, defence, industrial, fire protection, mining, oil and gas, power and rail.

Jammu & Kashmir Bank rose 3.25% to Rs 690 after the Reserve Bank of India said after trading hours on Friday (31 August 2007) foreign funds can now buy fresh shares up to 46.85% of its paid-up capital.

Auto parts maker Omax Autos rose 1.93% to Rs 65.85 after it said during trading hours on Monday, 3 September 2007, its board approved the issue of 2.5 million warrants at Rs 83 each.

Cholamandalam DBS Finance rose 9.90% to Rs 206 after the financial services firm approved the issue of three rights shares for every eight held at Rs 140 each.

Apollo Hospitals Enterprise rose 1.80% to Rs 492.80 after its board approved issuing seven million shares at Rs 605.10 per share to Apax Partners.

Drug maker Venus Remedies rose 5.5% to Rs 550 after it said during trading hours on Monday, 3 September 2007, that Sonata Investments had acquired 1.72% n the company to raise its stake to 11.17%.

TVS Motor Company was up 1% to Rs 66.40 after it strongly refuted charges that it stole technology from its competitor Bajaj Auto. Media reports on Saturday (1 September 2007) had suggested that Bajaj Auto plans to sue TVS Motor for stealing its patented digital twin spark '(DTSi) technology' that made a motorcycle faster and fuel efficient.

Gitanjali Gems rose 1.22% to Rs 295 after it received in-principle approval from the Ministry of Commerce, Board of Approvals for establishing a 1,000-hectare SEZ at Nagpur in Maharashtra for multi products and a 50-hectare SEZ at Aurangabad in Maharashtra for gems and jewellery. The company made this announcement after market hours on Friday, 31 August 2007

JSW Steel rose 2% to Rs 655 after it posted highest ever crude steel production with 32% growth in August 2007. The company has also shown 21% growth in volumes sequentially in crude steel, 11% growth in hot rolled (HR) Coils and 19% growth in HR plate products in August 2007 over July 2007.

Patni Computers rose 0.80% to Rs 530.9 on reports that promoters of Patni Computers are looking to sell their stake for which 4 private equity firms have been short listed. The deal is rumored to be valued between Rs 675-Rs 710 per share.

Mahindra & Mahindra rose 1.90% to Rs 722.50 after its vehicle sales rose 30% to 18,269 units in August 2007 over August 2006. Mahindra said domestic auto sales, including utility vehicles, light commercial vehicles and three-wheelers, rose 34 % to 17,438 units from 12,981 units a year earlier. Exports fell 21% to 831 units from 1,051 units.

Apeejay Tea hit 20% upper circuit at Rs 108 after it scheduled a board meet on 4 September 2007 to consider a proposal from the founders of the company to delist shares from the BSE. Promoters currently hold 74.27% stake (as on 30 June 2007).

European markets which opened after Indian’ markets were trading mixed today, 3 September 2007. Key benchmark indices in London (up 0.21% to 6,316.80), Germany (up 0.14% to 7,648.6062) rose. However France’s CAC 40 index declined 0.27% to 5,647.57

Asian markets were mixed today, 3 September 2007. Japan's Nikkei (down 0.27% at 16,524.93), Taiwan Weighted (down 0.02% at 8,979.96), Singapore's Straits Times (down 0.20% at 3,386.22), and Hong Kong's Hang Seng (down 0.33% at 23,904.09) slipped.

However, Shanghai Composite (up 1.96% to 5,321.05), and South Korea's Seoul Composite (up 0.46% at 1,881.81) gained.

On Friday, 31 August 2007, the Dow Jones Industrial Average rose 119 points to 13,358. S&P 500 gained 16 points to settle at 1,474 and the Nasdaq Composite climbed up 31 points to close at 2,596.

Crude oil was little changed near a four-week high in New York today, 3 September 2007, on signs a hurricane approaching the Gulf of Mexico will miss US oil facilities. Crude oil for October delivery was at $74.05, up 1 cent, in after-hours electronic trading on the New York Mercantile Exchange.

Posted by FR at 10:25 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.