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Small-cap, mid-cap shares outperform market

Friday, September 7, 2007

The market pared early gains as fresh selling emerged in later half of the day when European markets drifted lower. Earlier today, the market had opened on a firm note following overnight gains in US stocks as a series of mixed reports on the US economy raised investors' optimism of an interest-rate cut by the US Federal Reserve in a meeting scheduled to be held on 18 September 2007.

India's wholesale price index rose 3.79% per annum in the 12 months to 25 August 2007, lower than the previous week's 3.94% due to a decline in some food prices, government data showed on Friday, 7 September 2007. Inflation is at its lowest level since it touched 3.70% in the week ended April 15, 2006. Inflation data hit the market at about 12:00 IST.

The BSE 30-share Sensex declined 25.89 points or 0.17% at 15,590.42. It had opened higher at 15,655.37 and advanced further to hit a high of 15,716.06. The index had slipped to a low of 15,565.22. It oscillated in a range of 150.84 points in the day.

The S&P CNX Nifty shed 9.10 points or 0.20% at 4509.50. The Nifty September 2007 futures settled at 4480, a discount of 29.50 points as compared to spot closing

The market breadth which was strong throughout the day, eased at the fag end of the day. On BSE, 1,383 shares advanced as compared to 1,381 that declined, while 71 remained unchanged. This is in sharp contrast to a strong market breadth in morning when, 1264 shares advanced as compared to 305 that declined, while 24 remained unchanged.

The BSE Mid-Cap Index rose 0.04% to 6,851.65 while the BSE Small-Cap Index gained 0.45% to 8,433.52. Both these indices outperformed the Sensex

The total turnover on BSE amounted to Rs 4864 crore as compared to Rs 4,670.89 crore on Thursday, 6 September 2007. The NSE’s F&O turnover was Rs 38,666.44 crore as compared to Rs 40927.51 crore on Thursday, 6 September 2007.

Most of the sectoral indices on BSE settled lower. The BSE FMCG Index (up 0.72% at 2,046.63), BSE TecK index (down 0.14% to 3,642.30), and BSE PSU index (up 0.01% to 7,288.49) outperformed the broad market.

However, the BSE Metal Index (down 0.67% at 11,609.08), BSE Bankex (down 0.19% at 8,095.69), BSE Oil and Gas Index (down 0.56% at 8,185.77), BSE Consumer Durables index (down 0.39% to 4,479.70), BSE Realty index (down 1.03% to 7,470.27), BSE Health Care Index (down 0.31% at 3,705.68), BSE Capital Goods Index (down 0.33% at 13,613.24), BSE Auto Index (down 0.97% at 4,889.83) and BSE IT Index (down 0.12% at 4,659.70) were underperformers.

From the 30-member Sensex pack, 20 slipped; the rest gained.

India’s largest cigarette manufacturer by sales ITC surged 1.63% to Rs 177.50 on 17.62 lakh shares. It was the top gainer from the Sensex pack.

Hindalco Industries (up 1.32% to Rs 157), HDFC Bank (up 1.07% to Rs 1198) were the other gainers from the Sensex pack

Oil and Natural Gas Corporation, India's second-most valuable firm, rose 1.56% to Rs 850.10 as oil prices climbed above $76 a barrel as tension between Syria and Israel raised supply concerns.

State Bank of India (SBI), the nation’s largest banking entity by net profit, slipped 0.91% to Rs 1617. As per reports, it will raise about Rs 1500 crore through a bond issue this week. The issue will be part of the bank's Tier II capital. The size of core issue likely to be set at Rs 1000 crore with over subscription option of Rs 500 crore.

Cipla, the country's third largest pharma company by sales, was the top loser from the Sensex pack. It slipped 2.43% to Rs 180.50 on 6.39 lakh shares.

TCS, India’s biggest software exporter by revenue, came off the lower level of Rs 1070.20 after Chief Operating Officer N. Chandrasekaran said the outlook for deals is good and the company sees no adverse impact from the US subprime crisis. The stock was down 0.07% to Rs 1076.20.

ICICI Bank, India’s biggest private sector bank by net profit slipped 1.01% to Rs 911.05. As per reports, it is setting up a $2-billion infrastructure fund.

Auto shares declined on profit booking. Tata Motors (down 1.80% to Rs 699), Bajaj Auto (down 0.26% to Rs 2327), Mahindra & Mahindra (down 2.10% to Rs 707), and Maruti Udyog (down 0.98% to Rs 873.15) edged lower.

India's largest private sector entity by market capitalisation and oil refiner, Reliance Industries (RIL), was down 1.29% to Rs 1957.70 on 5.09 lakh shares as its gas pricing formula from the Krishna-Godavari basin faced oppositon from the CPM politburo and Samajwadi Party. The Union fertiliser minister Ram Vilas Paswan said the price ($ 4.33 per million British thermal unit) sought by RIL for the gas it plans to produce from KG block next year is unrealistic.

Aptech (Rs 126.64 crore), Reliance Industries (Rs 100.67 crore), Welspun Gujarat Stahl Rhoern (Rs 95.05 crore), Oil & Natural Gas Corporation (Rs 91.96 crore), and IFCI (Rs 84.23 crore) were the turnover toppers on BSE.

Among the side counters, Elpro International (up 20% to Rs 241.20), Murali Agro (up 20% to Rs 950.40), Triveni Glass (up 20% to Rs 35.70), Uni Abex Alloys (up 20% to Rs 293.10), Hester Pharma (up 18.97% to Rs 153.95), Roto Pumps (up 18.63% to Rs 73.85), BPL (up 20% to Rs 59.50) and Zuari Industries (up 12.11% to Rs 288) surged.

Saregama India jumped 6.75% to Rs 323. The stock has been on a roll since 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 surged 21% in the previous two trading sessions from Rs 250.10 on 4 September 2007 to Rs 302.60 on 6 September 2007.

Hindoostan Spinning & Weaving Mills jumped 10% at Rs 64.75. It surged 15.60% in the previous three trading sessions from Rs 50.95 on 3 September 2007 to Rs 58.90 on 6 September 2007 on reports that the firm has sold eight acres of its defunct mill located near the Siddhivinayak temple at Prabhadevi, Mumbai, for Rs 350 crore to Mumbai-based builder Akruti Nirman.

Eveready Industries India rose 2.72% to Rs 54.75 on pricing equity warrants issue at an 8.81% premium to Thursday, 6 September 2007's closing price of Rs 53.30. The warrant holder will have an option to apply for one equity share of Rs 5 each at a premium of Rs 53 per share.

Tata Power Company was down 1.76% to Rs 716. As per reports, Tata Power plans to pick up a 15% stake in a new spot power exchange being planned by the leading commodity exchange National Commodity and Derivatives Exchange (NCDEX) and National Thermal Power Corporation (NTPC).

DLF was down 2.20% to Rs 621.25. As per reports, DLF plans to spin off its multiplex unit, DT Cinemas, into a separate company that will raise money through an initial public offering (IPO) in the next two years after adding more screens. DT Cinemas, fully owned by DLF, plans to invest Rs 1500 crore over two years to take its total number of screens to 500 in 100 multiplexes from seven in two currently.

Indraprastha Medical slumped 3.95%to Rs 34 after it turned ex-dividend, for a dividend of Rs 1.25 per share from today. It has face value of Rs 10 each.

Federal-Mogul Goetze (India) declined 2.94% to Rs 165 after it fixed 24 September 2007 as the record date for the purpose of rights issue.

Infomedia India surged 6.26% to Rs 272.50, despite denying PE firms picking up ICICI Venture’s stake in the company. A newspaper report on Thursday, 6 September 2007, said private equity funds General Atlantic, Blackstone and Warburg Pincus had shown interest in acquiring ICICI Venture’ 63% stake in Infomedia (formerly Tata Infomedia).

Sintex Industries slipped from the day’s high of Rs 340. It closed 1.30% down at Rs 325. It acquired automotive products business of Mumbai-based Bright Brothers in an all-cash transaction for Rs 149 crore. Sintex will acquire ownership of Bright Brothers’ all five automotive component manufacturing plants located in close proximity to major automobile production hubs like Chennai, Sohna, Pune, Pithampur and Nashik.

Rajesh Exports moved up 0.91% to Rs 651.85. The company said during trading hours on Friday, 7 September 2007, its board would meet on 17 September 2007 to consider increasing the investment ceiling for overseas investors' in the company.

Pump maker Kirloskar Brothers rose 6% to Rs 488 after it said after trading hours on Thursday, 6 September 2007, one of its joint ventures had received a 761-crore order for a canal project from the government of Andhra Pradesh. Kirloskar Brothers' share of the contract is worth Rs 114 crore

GMR Infrastructure lost 4.44% to Rs 775.70 after the National Stock Exchange banned fresh derivatives contracts effective today, 7 September 2007, as the open interest had crossed the 95% limit.

South Indian Bank climbed up 6.05% to Rs 168.45. A large block deal of 10.01 lakh shares was executed in the stock on BSE in early trade at Rs 162.50.

European markets, which opened after the Indian markets, were trading mixed. Key benchmark indices in Germany (down 0.46% to 7,586.39) and France (down 0.59% to 5,543.44) slipped. United Kingdom’s FTSE 100 rose 0.08% to 6,318.40.

Asian markets settled mixed today, 7 September 2007. Japan's Nikkei (down 0.83% at 16,122.16), Hang Seng (down 0.28% at 23,982.61), South Korea's Seoul Composite (down 0.21% at 1,884.90) and Shanghai Composite (down 2.16% to 5,277.15) slipped.

However, Taiwan Weighted (up 0.01% at 9,018.08) and Singapore's Straits Times (up 0.66% at 3,489.08) advanced.

The Dow Jones industrial average rose 57.88 points, or 0.44%, to 13,363.35, on Thursday, 6 September 2007. Broader stock indicators also lifted. The Standard & Poor's 500 index gained 6.26 points, or 0.43%, to 1,478.55, and the Nasdaq Composite index was up 8.37 points, or 0.32%, to 2,614.32.

In a meeting held yesterday, 6 September 2007, Bank of England kept interest rates unchanged at 5.75% and the European Central Bank (ECB) also decided to keep its rates unchanged to 4%.

Crude oil prices climbed further above $76 a barrel on Friday, 7 September 2007, just about $2 below record highs, as tension between Syria and Israel compounded supply worries after fall in US crude and gasoline inventories. US crude gained 18 cents to $76.48 a barrel while London Brent crude edged up 3 cents to $74.80.

Posted by FR at 8:02 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.