Market started the week on firm note after Federal Reserve chairman Ben Bernanke and US president George Bush assured that they would not let the economy to collapse. It extended gains later. BSE Sensex gained in 3 out of the 5 trading sessions.

BSE Sensex rose 271.82 points or 1.77% to 15,590.42 in the week ended 7 September 2007.

The S&P CNX Nifty rose 45.5 points or 1.01% to 4518.60 in the week.

BSE Mid-Cap Index (up 3.68% to 6,851.65), BSE SmallCap index (up 4.63% to 8,433.52) , BSE Auto index (up 0.24% to 4,889.83), Bankex (up 3.01% to 8,095.69), Capital Goods index (up 1.4% to 13,613.24), BSE IT index (up 1.61% to 4,659.70) and BSE Realty index (up 3.16% to 7,470.27) edged higher.

FIIs bought shares worth a net Rs 2191.60 crore in four trading sessions from 3 September 2007 to 6 September 2007. Mutual funds bought shares worth a net Rs 353.80 crore in four trading sessions from 3 September 2007 to 6 September 2007

The BSE Sensex rose 103.45 points or 0.68% at 15,422.05 on Monday, 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. European and Asian markers were mixed on that day.

The BSE Sensex rose 43.35 points or 0.28% at 15,465.40 on Tuesday, 4 September 2007. The market settled with small gains, amid mixed trend in index pivotals. The market started the day firm but slipped in the negative zone in mid-morning trade on profit booking. It staged recovery from lower level later. The market pared gains towards the close of the trading session. Some volatility was witnessed at higher levels. That was eighth straight session of gains for the market. European and Asian markets were subdued.

The BSE Sensex declined 19.25 points or 0.12% at 15,446.15 on Wednesday, 5 September 2007. Domestic stock markets snapped their eight-day winning streak, as profit booking emerged at higher levels in late trade. The market 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. Selling was witnessed in capital goods and oil & gas stocks.

The BSE Sensex gained 170.16 points to 15,616.31 on Thursday, 6 September 2007. The market scaled higher as buying continued buying throughout the day, except for the odd blip in early trade. Asian markets also rebounded from initial sluggishness while European stocks were trading mixed.

The BSE Sensex lost 25.89 points or 0.17% to 15,590.42 on Friday, 7 Aeptember 2007. The market pared early gains as fresh selling emerged in later half of the day when European markets drifted lower. Earlier, 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 top utility vehicle maker, Mahindra & declined 0.66% to 704.35. It said on Monday 3 September 2007 that its vehicle sales rose 30 % to 18,269 units in August 2007 over August 2006.. As per reports, Mahindra & Mahindra is looking to buy a design firm in Italy as part of its plans to expand presence in the automotive space. Reports also suggest that the company is likely to launch its new sports utility vehicle (SUV) Ingenio and hybrid variants of Scorpio next year.

Bajaj Auto declined 0.89% to Rs 2,324.25. Bajaj Auto’s vehicle sales in August fell 6% to 195,707 units from 2,08,163 units a year earlier. It said sales of motorcycles fell 7% to 1,67,483 units from 1,80,570 and sales of all two-wheelers fell 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. Meanwhile, as per reports, TVS Motor, India's third-largest motorbike maker, plans to take libel action against Bajaj Auto after the firm accused it of breaching patented rights on engine technology.

Hero Honda Motors rose 2.97% to Rs 667.85. It sold 2,40,875 units in August 2007, up 12% from 2,15,076 units sold in, the same month last year, on the strength of new launches.

Maruti Udyog rose 0.54% to Rs 872.90. On Saturday, 1 September 2007, Maruti Udyog said it sold 65,958 vehicles in August 2007, up 27% from 51,855 vehicles sold in the same month last year. The company sold 60,229 units in the domestic market, up 25% percent from 48,259 units a year earlier. Maruti’s exported 5,739 units, up from 3,596 units last year.

ACC rose 1.96% to Rs 1,086.75. It announced on 3 September 2007 that its cement dispatches jumped 14.59% to 1.57 million tonnes in August 2007 over August 2006. Cement production grew 20.3% to 1.6 million tonnes in August 2007 over August 2006.

India's top bus and truck maker, Tata Motors declined 0.76% to Rs 696.50. Its vehicle sales in August fell 0.4% to 45,144 units from 45,325 units a year earlier. Commercial vehicle sales in the domestic market rose 1.6% to 23,431 units from 23,069 units a year earlier, while sales of cars and utility vehicles fell 5% to 16,620 units. Exports in August 2007 rose 8% to 5,093 units from 4,715 units a year earlier.

Index heavyweight RIL gained 0.1% to Rs 1961.40. It said on 6 August 2007, that it had completed acquisition of IPCL, a move that could help control two-thirds of the country's petrochemical market. Meanwhile, RIL announced on Tuesday, 4 September 2007, the acquisition of a majority stake and management control of Gulf Africa Petroleum Corporation (GAPCO) for an undisclosed amount. The CPI (M) on Tuesday, 4 September 2007, said RIL had proposed an unfair price of $4.33 per million british thermal units (MBTU) for gas to be produced from Krishna-Godavari basin.

TCS (up 1.15% to Rs 1077.30), Reliance Energy (up 9.06% to Rs 850.40), Ranbaxy Labs (up 4.75% to Rs 409.90), Infosys (up 2.9% to Rs 1908.85), HDFC Bank (up 2.07% to Rs 1195.60), HDFC (up 7.8% to Rs 2,130.20) and ICICI Bank (up 3.88% to Rs 919) were the major gainers amongs the Sensex constituents

Securities & Exchange Board of India (Sebi) has withdrawn the recognition granted to the Hyderabad Stock Exchange for its failure to comply with the demutualisation rules under the stipulated time frame. As per the demutualisation requirement, every stock exchange has to ensure that at least 51% of its equity capital is held by the public other than its broking members.

BSE, on Monday, 3 September 2007, decided to add 13 stocks to trade-to-trade segment, to be effective from Friday, 7 September 2007. The stocks being transferred to trade-to-trade segment include Acrow (India), Indokem, Rasoi, Yashraj Securities, Lakshmi Mills Company and Transchem, among others.

Securities and Exchange Board of India (Sebi) on Tuesday, 4 September 2007, refused to renew the recognition of Magadh Stock Exchange (MSE). The grounds for refusal to renew its recognition include failure to appoint an executive director for the exchange, inadequate infrastructure, non-recovery of dues from members and listed companies, and failure to create an investor protection fund trust, among others.

National Stock Exchange (NSE) has decided to 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.

According to data released by the commerce ministry on Monday 3 September 2007, India's exports expanded 18.52% to $ 12.49 billion in July 2007 from $ 10.54 billion in July 2006. In rupee terms, exports moved up 3.10% to Rs 50493.57 crore in July 2007 compared with Rs 48974.77 crore in July 2006.

India's net direct tax receipts expanded 42% to Rs 61030 crore ($ 15 billion) in April-August 2007 over Rs 42980 crore in April-August 2006. Direct tax collection surged because of a healthy corporate performance, buoyancy in the economy, better tax compliance and improved tax administration.

A 15-member United Progressive Alliance (UPA)-Left committee was announced in New Delhi by External Affairs Minister Pranab Mukherjee to address concerns raised by the Communist parties on the Indo-US civil nuclear deal. The committee is expected to hold its first meeting after 9 September 2007

BSE has revised daily circuit filter for a number of stocks effective, 7 September 2007. Following the revision, a total of 376 stocks will attract 10% circuit filter, 346 shares will attract 5% circuit filter and 30 stocks will attract 2% circuit filter.

Inflation dipped to a 16-month low at 3.79% in the week ending 25 August 2007 as against 3.94% in the week ending 18 August 2007. Inflation was at 5.27% in the corresponding week last year. Inflation growth declined because of fall in prices of food articles like fruits and vegetables, maize and fish-marine.

Strong US economic data, hopes that US Federal Reserve will cut the key interest rate and FII and mutual fund buying triggered a solid rebound on the domestic bourses last week. BSE Sensex rallied on all the 5 trading sessions this week.

BSE Sensex rose 893.73 points or 6.2% to 15,318.60 in the week ended 31 August 2007. S&P CNX Nifty rose 273.85 points or 6.53% to 4464 in the week.

Major sectoral indices such as BSE IT index (up 4.02% or 177.18 points to 4585.66), Capital Goods index (up 6.36% or 802.51 poits to 13,424.74), BSE Auto index (up 6.76% or 308.79 points to 4,878.05), BSE Midcap (up 417.97 points or 6.75% to 6608.42), BSE small cap (up 6.99% or 525.59 points to 8060.52), surged.

The Sensex surged 417.51 points or 2.89% at 14,842.38 on Monday, 27 August 2007. The momentum was derived from the rally on Wall Street on Friday, 24 August 2007, triggered by surprisingly strong data on US home sales and durable goods. Also short covering ahead of the expiry of derivatives contracts for August 2007 series aided the market's rise.

The BSE Sensex gained 76.81 points or 0.52% at 14,919.19 on Tuesday, 28 August 2007. The market settled with decent gains as buying emerged for index pivotals. IT pivotals led the rally along with index heavyweight Reliance Industries (RIL). Yet, weak global markets capped upside. On the flip side, value buying coupled with short covering provided support at lower level.

The BSE Sensex advanced 73.85 points or 0.50% at 14,993.04 on Wednesday, 29 August 2007. The market staged comeback from day’s low touched in early trade following drop in US stocks overnight driven by credit concerns. The market rebounded on value buying coupled with short covering in derivatives market.

The BSE Sensex rose 128.70 points or 0.86% at 15,121.74 on Thursday, 30 August 2007. The market settled with gains for the fourth straight session on continued buying demand for index pivotals. It saw volatile swings in fag session of day, after staying firm throughout the day.

The BSE Sensex surged 196.86 points or 1.3% to 15,318.60 on Friday, 31 August 2007. The market rallied for the fifth straight session, as investors flocked to index pivotals. Data showing robust GDP growth in the April-June 2007 quarter, declining inflation, easing of political worries and firm Asian & European markets boosted sentiment. All the sectoral indices on BSE posted gains.

State Bank of India (SBI) rose 9.09% to Rs 1599.50 in the week. It has started the consolidation process with its associate banks by deciding to merge its wholly-owned subsidiary State Bank of Saurashtra (SBS) with itself. SBS is the smallest of the seven associates banks. The boards of both SBI and SBS have given approval to the merger proposal on 25 August 2007.

India's largest thermal power generator by revenue NTPC was up 5.8% to Rs 173.70 in the week on reports the government plans to sell 4.75% holding in the firm through follow-on public issue. The proposed sale is aimed at increasing the free float of NTPC's shares in the market and help improve the company's valuation.

India's top truck maker, Tata Motors was up 6.72% to Rs 701.85 in the week after chairman Ratan Tata confirmed on Friday, 24 August 2007 that Tata Group is interested in acquiring Jaguar and Land Rover from their parent, Ford.

India's largest private sector steel manufacturer Tata Steel gained 18.43% to Rs 689.70 in the week on reports it is targeting to more than double production by 2015. Tata Steel recorded a consolidated net turnover of Rs 31,155 crore for Q1 June 2007, an increase of 442% over the same period last year, on the back of Corus acquisition.

Take Solutions debuted at Rs 876 on 27 August 2007, a premium of 20% over the IPO price of Rs 730. It settled at Rs 926.50 on the BSE, a premium of 26.91% over the IPO price of Rs 730

K P R Mill debuted at Rs 201.20, a discount of 10.57% over the IPO price of Rs 225 on 28 August 2007. It settled at Rs 173.50 on the BSE, a discount of 22.89% over IPO price of Rs 225.

Puravankara Projects debuted at Rs 399, a discount of 0.25% over the IPO price of Rs 400 on 30 August 2007. It ended at Rs 361.75 at 10:00 IST on BSE, a discount of 9.56% over the IPO price of Rs 400.

The Confederation of Indian Industry (CII) on 27 August 2007 appealed to Uttar Pradesh (UP) goverment to reconsider the decision to close the Reliance Fresh stores in the state. CII fears that it will be detrimental to the pace of inclusive growth of the country.

BSE decided to shift 197 stocks back to normal rolling settlement from trade-to-trade segment, effective from Friday, 31 August 2007. The stocks transferred back to normal rolling settlement from trade-to-trade segment include Adhunik Metaliks, Advani Hotels & Resorts, Andrew Yule & Company, Autolite (India), Bank of Rajasthan, Cable Corporation of India, Cinevistaas, FCI OEC Connectors, among others. A total of 276 scrips will remain in trade-to-trade segment on BSE, from 31 August 2007.

The Reserve Bank of India (RBI) posted a discussion paper on its web site on Monday (27 August 2007) to review aspects of bank and financial holding company structures and how suitable they are for India. The intermediary holding company, being a non-banking finance company, is not fully regulated by RBI. Therefore, RBI said, a proper legal framework needs to be created before such structures are floated to ensure that no unregulated entities are present within the structure.

Bombay Stock Exchange (BSE) acquired 5% stake in Calcutta Stock Exchange (CSE) on 29 August 2007 for Rs 60 crore as part of the corporatisation of the regional exchange. BSE bought stake at Rs 2000 per share. CSE has been valued at Rs 1200 crore based on the BSE purchase value.

The Indian government has decided to form a panel to study the Indo-US nuke deal, taking into account objections from communist parties. The announcement came after a meeting between senior government leaders and their communist allies, on Thursday 30 August 2007. The Communist Party of India (CPI) had demanded that the goverment must form a mechanism to address their concerns pertaining to the deal

India's gross domestic product (GDP) rose 9.3% in the quarter ended June 2007 (Q1 of FY 2008) as against 9.6% in Q1 of FY 2007.

Inflation dipped 3.94% in the week ending 18 August 2007 as against 4.10% in the week ending 11 August 2007.

The government on Thursday, 30 August 2007 approved an initial public offering of 10% of new equity in Oil India (OIL) and the preferential allotment of 10% of the exploration firm's current equity to three state-run refiners. The cabinet also approved the issue of 1% of shares to employees.

The market posted fourth straight weekly loss, tracking weak global markets. A whole host of factors right from yen carry trade unwinding, hedge fund redemption pressure, heavy FII selling and sub-prime concerns haunted local bourses throughout the week. The market declined in 3 out of 4 trading sessions. Markets across the globe were inflicted with intense volatility

The benchmark index BSE Sensex declined 726.73 points to 14,141.52 in the week ended Friday, 17 August 2007. The S&P CNX Nifty was down 225.30 points to 4,108.05 in the week.

The week began on an upbeat note with the BSE Sensex advancing 148.96 points to 15,017.21, on Monday, 13 August 2007, tracking firm Asian markets. All the sectoral indices on BSE posted gains, except BSE IT index.

Sensex posted marginal loss of 16.30 points to 15,000.91, on mixed global cues, on Tuesday, 14 August 2007. Turnover was low on that day. Stock markets remained closed on 15 August 2007 on account of Independence day.

On Thursday, 16 August 2007, the Sensex slumped 642.70 points at 14,358.21, its second biggest point fall in a day, on intense selling pressure throughout the day. Markets across the globe were gripped with selling pressure.

Selling continued a day later with Sensex declining 216.69 points at 14,141.52. The Sensex oscillated in a wide rage of 538.68 points. Volatility was intense.

Capital goods stocks declined on profit booking. Larsen & Toubro (L&T) and Bharat Heavy Electricals (Bhel) declined 5.22% and 8.01% respectively. India’s largest private sector engineering company Larsen & Toubro (L&T) won orders worth Rs 203 crore for Delhi's metro rail project to be executed in 30 months.

Bharat Heavy Electricals (Bhel), the country’s biggest power equipment maker, bagged orders worth over Rs 2900 crore for the supply and installation of the main plant package at the upcoming Jhajjar Super Thermal Power Project in Haryana involving three units of 500 MW each.

IT stocks declined. India's largest software service exporter TCS slipped 7.77% in the week. As per reports, it is interested in buying UK-based financial services firm Prudential’s captive back office, having centres in the UK, Ireland, Scotland and India.

Infosys (down 4.99%), Satyam Computers (down 8.18%), and Wipro (down 0.99%), also declined.

Metal stocks were hit hard as global metal prices came under pressure. Hindalco Industries, the country’s largest aluminium company, lost 7.38%. As per reports, it plans to become supplier to the car market.

Tata Steel tanked 14.40% while Sterlite Industries plunged 12.85%.

NTPC, India's biggest power generator, was down 1.10%. NTPC will replace Dabur India in S&P CNX Nifty from 24 September 2007.

State-run Oil and Natural Gas Corporation (ONGC) lost 7.13%. It has reportedly demanded a 12.5% hike in price of natural gas it produces from fields given to it on nomination basis as it was incurring losses at the present price of Rs 3.2 per cubic meter.

State Bank of India (SBI), the country’s largest bank, eased 5.46%. It plans to mop up nearly Rs 180000 crore over the next five years, including a Rs 14500-crore public offer this fiscal.

India’s largest private sector company and oil refiner Reliance Industries (RIL) declined 3.20%. As per reports, RIL has received clearance from West Bengal's Food Processing and Horticulture department for its agri-retail business in the state.

Ranbaxy Laboratories lost 4.13% on reports that Europe’s third-biggest drugmaker Novartis has sued the company to block sale of a blood-pressure medicine Diovan, in the United States.

On 14 August 2007, Omnitech InfoSolutions settled at Rs 164.55 on BSE, a premium of 56.71% over the IPO price of Rs 105. It debuted at Rs 183.75 on BSE, and hit a low and high of Rs 155 and 183.75, respectively.

IVR Prime Urban Developers settled at Rs 418.15 on BSE, a discount of 23.97% over the IPO price of Rs 550, on 16 August 2007. The IVR scrip debuted at Rs 500. It touched a high of Rs 500 and a low of Rs 388.

Zylog Systems settled at Rs 431.10 on BSE, a premium of 23.14% over the IPO price of Rs 350, on Friday, 17 August 2007. The scrip debuted at Rs 525, also its high. It also touched a low of Rs 356.20.

The global liquidity crunch continued to cast its shadow on the Indian bourses as bellwether indices fell more than 1.5% during the week ended August 10.

The domestic markets went into a tailspin after the 400-point bounce mid-week as the US subprime mortgage woes re-emerged with BNP Paribas reportedly suspending three funds linked to the high-risk subprime property loans.

The Bombay Stock Exchange index, Sensex, witnessed high volatility, and swung in a range of 970-points (high of 15,542.40 and low of 14,570.89) before ending the week at 14,868.25 - a net fall of 270.15 points (1.78 %) from the last weekend close of 15,138.40.

The broad-based S&P CNX Nifty of the National Stock Exchange (NSE), which touched an intra-trade low of 4,239.20, ended the week at 4,333.35 - a drop of 68.2 points (1.55%) from the previous weekend close of 4,401.55.

Global markets dictated trend on Indian bourses over the past few days i.e. market rose when equities rose globally and vice versa. Global bourses witnessed alternate bouts of buying and selling caused by risk aversion or risk appetite that in turn was driven by how concerned the market was about US subprime mortgage woes.

The 30-share BSE Sensex lost 270.15 points or 1.78% to settle at 14,868.25 in the week ended 10 August 2007. The S&P CNX Nifty lost 68.20 points or 1.5% to settle at 4,333.35 in the week.

BSE Small-Cap index outperformed the market gaining 12.59 points or 0.16% to settle at 7,904.13 in the week. BSE Mid-Cap index lost 97.62 points or 1.48% to settled at 6,507.62 in the week.

In the first four trading sessions of the week till Thursday, 9 August 2007, the 30-share BSE Sensex lost 38.25 point to settle at 15,100.15. Nifty gained 1.65 points to 4,403.20.

Weakness in Asian stocks pulled Sensex down 235 points on Monday, 6 August 2007. Nevertheless, the market came sharply off lower level from an intra-day 433 points fall. Asian stock markets slumped after downbeat US economic data, including the influential non-farm payrolls report, adding to fears of the US subprime mortgage crisis.

The market recovered the next day amid mixed Asian markets. However, it came off higher level. Sensex rose 30 points. It had risen as much as 239 points at one point of time during the day.

The market surged on Wednesday, 8 August 2007, tracking rally across global markets. IT stocks led rally as rupee eased against the US dollar after the government on Tuesday, 7 August 2007, tightened overseas borrowing norms in a bid to check rupee’s rise. Stocks rose across the globe after the US Federal Reserve's positive outlook for the US economy helped soothe concerns about a global credit squeeze arising from US subprime mortgage woes.

The market lost ground on Thursday, 9 August 2007, in what was a complete reversal of trend during the day. Holding firm till afternoon trade, the market lost ground later following weak opening of European markets. Sensex lost 208 points. European shares slipped as BNP Paribas suspended redemptions from three funds citing problems in US subprime mortgages. The news came just at a time when worries about global credit problems arising from US subprime mortgatge woes appeared to be easing.

The market lost further ground the next day as markets fell across the globe. Sensex lost 232 points on Friday, 10 August 2007. Yet, it made a strong rebound from an intra-day 529 points fall.

Index heavyweight Reliance Industries (RIL) witnessed alternate bouts of buying and selling. The government on Monday, 6 August 2007, constituted an Empowered Group of Ministers (EGoM) to decide on the pricing of gas from Reliance Industries' KG basin field. The EGoM will be headed by External Affairs Minister Pranab Mukherjee. The eventual formula will apply to all future gas production in India.

Reliance Industries (RIL) is developing two deep-sea gas fields in its D-6 block in the Krishna (KG) Godavari basin, and it aims to produce 80 million cubic metres of gas per day by mid-2008.

IT shares surged on Wednesday, 8 August 2007, as rupee weakened against the dollar after the government on Tuesday, 7 August 2007, tightened overseas borrowing norms. Investor sentiment on the tech stocks has been sluggish in the last few months mainly because of the strong rupee. Rupee has been one of the best performers among Asian currencies in this calendar year so far.

At the time of announcing Q1 June 2007 results, IT bellwether Infosys had last month cut its FY 2008 earnings and revenue guidance in rupee terms due to a surge in rupee against the US dollar. A rise and rupee directly impacts the operating margins of IT firms which derive a lion’s share of revenue in dollars.

Bank stocks witnessed alternate bouts of buying and selling despite the view that Indian banks are unlikely to be impacted by US sub-prime mortgage defaults. Following the subprime loan problem, spreads of all credit default swaps have gone up. That is, their prices have gone down. Indian banks will, therefore, have to make higher provisions for losses on these swaps, when they mark to market their investments at the end of the current quarter. But these will be marginal compared to the size of their balance sheet.

Banking sector is expected to benefit from tighter overseas borrowing norms announced by the government on Tuesday, 7 August 2007, as companies looking to raise money abroad now have to turn to domestic banks for credit.

Two capital goods majors and market favourites L&T and Bhel witnessed buying at declines. Robust order book positions of the two firms give strong revenue visibility.

Cement shares, too, witnessed buying at declines due to firm cement prices. Cement firms reported strong dispatches for the month just gone by.

Omaxe settled at Rs 349.95 on BSE on Thursday, 9 August 2007, a premium of 12.8% over IPO price of Rs 310. The stock debuted at Rs 400. The IPO of Omxe had received strong investor response. It was subscribed 68 times. The company had priced the IPO at the top end of the Rs 265 to Rs 310 price band.

India Index Services & Products (IISL), a joint venture between NSE and CRISIL, on Tuesday, 7 August 2007, launched a new sectoral index based on the infrastructure sector. The 25-stock CNX Infrastructure Index includes companies belonging to the telecom, power, port, air, roads, railways, shipping and other utility services providers.

CNX Infrastructure Index constituents represent about 21.01% of the total market capitalisation as on 31 July 2007. The index is a market-capitalisation-weighted index with base date of 1 January 2004, indexed to a base value of 1000.

BSE has revised free-float adjustment factor of four constituents of BSE Sensex. It has raised the free-float adjustment factor of Maruti Udyog to 0.45 from 0.4. It has cut free-float adjustment factor of Bajaj Auto to 0.65 from 0.7 and that of Hindalco to 0.7% from 0.75%. It has cut free float adjustment factor of Ambuja Cements to 0.65% from 0.7%. The revised free float factors would come into effect from 13 August 2007.

Free float adjustment factor is used for calculating a scrip’s weightage in Sensex. The free float of a listed security is the proportion of shares available for purchase in the market by investors. In principle, it is the part of shares not held by strategic shareholders or promoters

BSE decided to transfer a total of 32 stocks to trade-to-trade segment to be effective from Friday, 10 August 2007. The stocks transferred to trade-to-trade segment include Adarsh Derivatives, BCC Fuba India, Bihar Sponge Iron, Garware Polyesters, Ras Propack Lamipack and Tanu Health Care, among others.

A Securities Exchange Board of India (Sebi) committee on launch of dedicated infrastructure funds (DIFs) has suggested that the proposed DIFs should operate as a closed-ended scheme with a maturity period of seven years. The committee has also suggested listing options for DIFs to provide liquidity to investors in the fund.

The committee, which submitted its report on Monday, 6 August 2007, also suggested that retail investors investing in DIFs be given tax incentives. The committee has, however, added that such tax benefits should be available only to the original investors.

India's industrial production rose an annual 9.8% in June 2007, lower than the downwardly revised annual growth of 10.9% in May 2007. Manufacturing production was up an annual 10.6% in June 2007, compared with a provisional annual growth of 11.9% in May 2007.

The wholesale price index rose 4.45% in the 12 months to 28 July 2007, higher than the previous week's 4.36% due to increased food and manufactured product prices.

The US Federal Reserve on Tuesday, 7 August 2007, left its benchmark interest rate unchanged at 5.25% in a widely expected move and said while tightening credit conditions had increased downside risks to the US economy, inflation was still its main concern.

Indian government on Tuesday, 7 August 2007, put stiff restrictions on overseas borrowings, a measure sought by the Reserve Bank of India (RBI) to enable it to check the rupee’s sharp appreciation. External commercial borrowings (ECBs) above $20 million have now been allowed only for foreign currency expenditure for permissible end-uses and are required to be parked abroad.

As a result, interest costs for companies might jump by 75-100 basis points as ECBs were usually at lower interest rates than domestic borrowings, reports suggest. Indian companies had raised a total of $24 billion of ECBs in 2006-07 against the government’s internal target of $22 billion.

According to Society of Indian Automobile Manufacturers (SIAM), domestic motorcycle sales contracted 17.25 % to 3,75,004 units in July 2007 over July 2006. Total domestic sales of two-wheelers fell 9.95% to 5,03,356 units in July 2007 over July 2006.

Domestic passenger car sales increased 11.18% at 89,548 units in July 2007 over July 2006. Domestic sales of commercial vehicles edged up 2.53% to 33,496 units in July 2007 over July 2006.

The prime minister's office on Wednesday, 8 August 2007, said India is committed to the present system of fertiliser subsidy for this year and will ensure adequate funds are made available.

The Reserve Bank of India said on Thursday, 9 August 2007, it has formed a working group to find ways to revive trading of interest-rate futures and to consider whether foreign investors should be allowed to trade in the derivatives.

It was another volatile week with a second weekly loss for the markets, in spite of gains on four out of five trading sessions. The Sensex shed 96 points, settling at 15,138.40 - 0.63 per cent lower compared to the previous week’s close.

What to expect this week
In spite of the domestic bourses being awash with liquidity, the indices have been moving in tandem with global markets, which is likely to continue over this week.

Strong macroeconomic drivers, money raised by asset management and insurance companies which is likely to be routed to the equity markets and decent corporate earnings continue to support a healthy undercurrent for a potential uptrend.

Stock to watch

Ballarpur Industries has plans to restructure the undertakings of the company, split its shares and buyback 40 per cent equity shares from all its shareholders. Under the reorganisation scheme, the company plans to hive off its commodity paper business into a separate subsidiary.

The stock-split will be in the ratio of 1:5, dividing the face value of its share from Rs 10 to Rs 2 per share, reducing the total number of shares outstanding from 18.61 crore to 10.71 crore. This reorganisation is aimed at generating a higher valuation for its commodity paper business.

The company had acquired plantations in Malaysia last year, and has a sizeable forest inventory and captive pulp. Further, it has plans in place for expansion of its captive power generation company Bilt Power, at an investment of Rs 6,000 crore.

With strong value unlocking potential and a good past track record of the company, analysts believe there is a potential upside for the stock from its current levels. At Rs 133.80, the stock trades at about 9 times its estimated FY08 earnings.

The markets rallied smartly last week led by frenzied buying in metal stocks. The BSE Metal index gained a whopping 11.4% (1,226 points) with the heavyweights SAIL, Tata Steel and Hindalco — the three stocks amount for almost 59% weightage in the index of 15 stocks — making sharp gains.

The Banks, FMCG and realty stocks also witnessed considerable buying activity. While Infosys’ lowering its guidance for the full-year had limited impact on the technology stocks, pharma stocks continued to sag.

The Nifty is close to its short-term target of 4520. The index has reached here rather sooner than expected. The index touched a lifetime high of 4514, and ended the week 120 points higher at 4505.



KEY LEVELS
Sensex Nifty

S3 14960 4400

S2 15020 4420

S1 15080 4440

Close 15273 4505

R1 15465 4570

R2 15525 4590

R3 15585 4610

S-Support level
R-Resistance level

With momentum on its side, and the index in unchartered territory, it will be difficult to set an upside target for the Nifty. The bulls are unlikely to give up initiative. However, one may see some profit-taking around the 4600-4690 level.

The short-term bias remains extremely bullish as long as the index trades above the 4420-mark.

The Sensex, from an intra-week low of 14,830, soared to a new high of 15,331 — a swing of 501 points during the week. The index finally ended with a gain of 309 points at 15,273. The Sensex may rally to 15,500-15,780. On the downside, the index is likely to find considerable support in the range of 14,930-15,100 for remaining part of the month.

The CNX 100 index, which ended with a gain of 126 points at 4433, is likely to touch the 4530 level this week, with an eye on 4700 in the short-term. On the downside, the index is likely to find support in the range of 4340-4370.

Continued institutional buying, firm global markets and short covering in derivatives took the S&P CNX Nifty to all time high and BSE Sensex to its highest level in nearly 4 months, last week. The market has been on an uptrend since early April 2007.

The 30-share BSE Sensex rose 232.30 points or 1.62% to 14,570.75 in the week ended Friday, 1 June 2007. This was its highest closing in nearly four months since 9 February 2007. The S&P CNX Nifty gained 48.90 points or 1.15% to 4297.05, a lifetime closing high.

Small-cap and mid-cap stocks which have been rising for a while now extended gains. The BSE Small-Cap index jumped 207.95 points or 2.86% to settle at 7,473.87. BSE Mid-Cap index rose 121.14 points or 1.97% to 6,264.28.

Positive cues from US and Asian markets took Sensex up 59 points on Monday 28 May 2007. The S&P CNX Nifty struck all time high.

The benchmark index, BSE Sensex, which stayed lacklustre for most part of the day, surged 110 points to cross the 14,500 level on Tuesday, 29 May 2007, led by gain in index heavyweight Reliance Industries (RIL). The rally was partly due to short covering ahead of expiry of May 2007 derivatives contracts on Thursday, 31 May 2007. Nifty struck a fresh record high.

Weakness in global markets pulled Sensex down 97 points on Wednesday, 30 May 2007. Chinese stocks tumbled 6.50% on that day after the government tripled a share-trading tax to cool its red-hot market, buffeting Asian and European markets. Nevertheless, the sharp fall in Chinese markets failed to trigger a broad rout in global markets which some had feared.

China's Ministry of Finance raised stamp duty on share transactions to 0.3% from 0.1% in what was seen as the strongest attempt yet to curb speculation in a market that had risen more than 60% so far this year.

A rebound in Asian markets, strong January-March 2007 quarter GDP growth data and short-covering in derivatives ahead of expiry of May 2007 derivatives contracts lifted Sensex 133 points on Thursday, 31 May 2007. Asian shares rebounded after a record close on Wall Street on Wednesday helped soothe worries about a slump in Chinese mainland stocks.

The market posted small gains in volatile trading on Friday, 1 June 2007. Sensex rose 26 points.

FIIs made heavy purchases in the month of May 2007. FII inflow for May 2007, till 30 May 2007, aggregated Rs 3959.70 crore. Mutual funds, too, were in buying mode. Their inflow in May 2007, till 30 May 2007, totaled Rs 1783 crore.

Engineering & construction major L&T surged in two trading sessions on Tuesday and Wednesday, after it reported robust Q4 results during trading hours on Tuesday. It reported 50% rise in net profit to Rs 701 crore in Q4 March 2007 from Rs 467 crore in Q4 March 2006. Sales rose 35.01% to Rs 6248.24 crore in the Q4 March 2007 as against Rs 4627.87 crore in Q4 March 2006. The company has strong order book of over Rs 35,000 crore.

Bhel continued its uptrend that began early this month ahead of record date for bonus issue. The company had set 1 June 2007 as record date for a 1:1 bonus issue. The stock turned ex-bonus from Thursday, 31 May 2007.

IT shares which have underperformed in the market latest rally, found support at lower level. Over the past few weeks, IT shares have been hit by stronger rupee. A rise in the rupee directly impacts revenue and profit of IT firms, which derive a lion’s share of revenue from exports to the US.

Bank pivotals found buying support at lower level. RBI had, on 16 May 2007, released the long-awaited draft guidelines for banks and dealers to begin trading credit default swaps in the country – derivatives that allow banks to hedge against the risk of default. The move will enable banks in India to step up lending to the corporate sector by allowing them to offload some of the risk to third-party investors.

Tata Tea gained in volatile trade after selling its stake in US-based Glaceau to Coca-Cola. It announced after market hours on Friday, 25 May 2007, that it would receive about $1.2 billion for selling its 30% stake in vitamin water maker Glaceau to Coca-Cola. This is nearly twice what it paid for it.

India Infoline spurted after four top officials from a rival brokerage joined the firm. The market believes that inducting top officials from rival brokerage would help the firm significantly expand its client base.

On Monday, 28 May 2007, Binani Cement settled at Rs 68.65 on BSE, a discount of 8.40% over IPO price of Rs 75 per share. The Binani Cement IPO was subscribed 1.36 times.

On Wednesday, 30 May 2007, Insecticides India settled at Rs 109.50, a discount of almost 5% over IPO price of Rs 115. The company had priced its IPO at the top end of the Rs 97 to Rs 115 price band.

On the same day, MIC Electronics settled at Rs 335.65 on BSE, a premium of nearly 124% over IPO price of Rs 150 per share. The company had priced its IPO at the top end of Rs 129 to Rs 150 price band, following overwhelming investor response to the IPO.

McDowell Holdings jumped 20% to 195.60, compared to base price of Rs 163, on its listing on BSE on 30 May 2007. The listing McDowell Holdings (MHL) on the bourses follows a restructuring scheme undertaken at United Spirits (USL) whereby investment business of USL was transferred to MHL as a going concern. The listing McDowell Holdings (MHL) on the bourses took place following a restructuring scheme undertaken at United Spirits (USL) whereby investment business of USL was transferred to MHL as a going concern.

BSE shifted a total of 25 scrips to trade-to-trade segment from 1 June 2007. The scrips transferred to trade-to-trade segment include Raj Television Network, Autolite (India), KIC Metaliks, S Kumars.com and Mukat Pipes, among others.

On 28 May 2007, The Securities and Exchange Board of India (Sebi) barred promoters of the Adani group from accessing the equity markets and dealing in securities for two years. The market regulator has found that the promoters aided and abetted Ketan Parekh (KP) entities in manipulating the share price of Adani Exports, now known as Adani Enterprises.

The GDP grew 9.4% in FY 2007 as against 9.2% in the previous fiscal as robust growth in manufacturing and services sector more than made up for a slowdown in agriculture and construction sector.

However, GDP growth slowed down to 9.1% in Q4 FY 2007 (Jan-March) as against 10% in the same quarter of the previous fiscal, pulled down by slow agriculture, construction, financial and social services growth.

Manufacturing grew 12.3% in FY 2007 as against 9.1% in the previous year, while trade, hotels, transport and communication grew 13% as against 10.4%. Agriculture and allied sector's growth, however, slowed down to 2.7% as against 6% in the previous fiscal and construction to 10.7% as against 14.2%.

The Communist Party of India (Marxist), which supports the ruling coalition, urged the government on Wednesday, 30 May 2007, to establish a licensing system for organised retail business and prevent the entry of foreign players like Wal-Mart. It also reiterated that the government should abandon moves to permit foreign investment in the retail sector through what it said was the "backdoor".

Indian Meteorological Department declared onset of southwest monsoon over Kerala Tuesday, 28 May 2007. The annual monsoon rains have hit the country's southern coast four days ahead of the normal date of 1 June 2007. An early monsoon would help several crops - cotton, soybean, groundnut and rice -- if rains were evenly spread over the next two months. The distribution of rains is crucial for agricultural yield. Good rains also spur rural spending on a wide range of industrial products, from soaps to motorcycles.

Sensex up 1.6%; Nifty up 1.1%, CNX Nifty Junior up 2%

CNX Midcap Index up 1.8%; BSE Small Cap Index up 3%

BSE Cap Goods Index up 6.8%; L&T up 15%, ABB up 4.5%, BHEL up 4%

BSE Auto Index up 3.4%; Hero Honda up 5.5%,M&M up 4%,Bajaj Auto up 3%

BSE Healthcare, Bank Indices up 2.7% Each

Index Gainers: Cipla up 9%, HDFC Bank up 7.5%,Jet,MTNL up 7% Each

BSE FMCG Index Down 1.5%;BSE IT Index Down 1%

Index Losers: Suzlon Down 7%, SAIL~Dn 6%, ITC Dn 3.3%, Infy Dn 2.4%

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