The benchmark index, BSE Sensex, which had surged to highest level above 14,650 in nearly four months since 9 February 2007, at the onset of the trading session started declining since afternoon trade. Selling accentuated at the fag end of the trading session. Auto and IT pivotals declined while shares from metal and banking sector edged higher

The 30-shares BSE Sensex lost 101.24 points at 14,469.51, as per provisional closing. In opening trade, it had surged to an intra-day high of 14,683.36, buoyed by strong global markets and sustained buying from FIIs and mutual funds. This is Sensex's highest level in nearly four months since 9 February 2007. The market had pared gains shortly after a firm opening. Sensex hit a low 14,465.68.

Sensex all time high is at 14,723.88, struck on 9 February 2007.

The S&P CNX Nifty which had advanced above the 4,350 level, to strike an all time high of 4,362.95, in opening session, settled 39.25 points lower at 4,257.80, as per provisional closing.

The total turnover on BSE amounted to Rs 3745 crore compared to Rs 3138 crore by 14:30 IST.

Market breadth was negative on BSE, with 1398 shares declining as compared to 1172 that advanced. 95 remained unchanged. The breadth turned negative in early afternoon trade from a strong breadth at the onset of the trading session. In morning session, there were over 2 gainers for every loser on BSE.

Among the Sensex pack, 19 declined while the rest advanced.

Aluminium and copper major Hindalco Industries surged 4.01% to Rs 146.65 on high volume of 59.57 lakh shares, tracking firm global copper prices. It surged to a high of Rs 156.25, in intra-day trade. As per reports Hindalco and Sterlite Industries, are in talks with global firms to separately bid for Canada's Alcan. Sterlite's parent Vedanta Resources Plc was in advanced talks with global miner Rio Tinto to form a special purpose vehicle to bid for the aluminum major. While London-based Vedanta is likely invest $3-$4 billion and Rio Tinto could put in $10-$12 billion in the joint venture.

State Bank of India (SBI) advanced 2.02% to Rs 1405.90 on 6.59 lakh shares. It also surged to an all time high of Rs 1418.90, in intra-day trade. The government appears set to promulgate an ordinance to close the largest ever acquisition involving the transfer of Reserve Bank of India's 59.7% stake in State Bank of India to the Centre in a deal worth nearly Rs 40,000 crore. The government will value the 31.43 crore SBI shares, which have a face value of Rs 100 each, held by RBI at the average closing price for six months.

As per reports, the finance ministry will seek the Cabinet's approval over the next couple of weeks to ensure that the Centre hands over the cheque to RBI on 29 June 2007, a day before RBI closes its annual books of accounts.

Other shares from the banking and financial sector also advanced on renewed buying, after fears of hike in CRR eased. HDFC Bank (up 1.05% to Rs 1165), HDFC (up 0.71% to Rs 1875), and ICICI Bank (up 0.42% to Rs 932), edged higher.

Tata Motors slumped 4.97% to Rs 710 on 6.82 lakh shares, and was the top loser from the Sensex pack. Tata Motors’ sales declined 4% to 42,558 units May 2007. Commercial vehicle (CV) sales declined to 20,675 units in May 2007 from 21,903 units in May 2006. Passenger vehicle sales were down 3% at 17,580 units in May 2007. It slipped to a low of Rs 710.20.

Hero Honda Motors declined 0.56% to Rs 713.10, after its May 2007 sales declined 6% to 2,85,109 units from 3,03,444 units in May 2006.

Pune headquartered Bajaj Auto slipped 0.95% to Rs 2214 after its bike sales (including exports) dipped 15% at 1,67,008 units in May 2007 from 1,96,120 units in the same month last year. Three-wheeler sales were flat at 24,110 units (24,029). The company’s exports, however, were up 53% at 49,203 units against 32,179 units in the same month last year.

Cipla (down 3.39% to Rs 216.60), Grasim (down 3.25% to Rs 2438.05), and Bhel (down 3.14% to Rs 1370), were the other losers from the Sensex pack.

IT pivotals stayed weak, as they did over the past few weeks, as selling continued. Satyam Computers (down 2.10% to Rs 468.50), TCS (down 1.21% to Rs 1204.35), Infosys (down 1.45% to Rs 1912) and Wipro (down 2.37% to Rs 531.25) slipped.

IT stocks have not performed in the market's recent surge due to 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. The Indian rupee headed towards last week's nine-year high on Monday, 4 June 2007, spurred by capital inflows and positive cues from most Asian currencies.

Index heavyweight Reliance Industries (RIL) slipped 0.76% to Rs 1737 on 3.66 lakh shares. As per reports, it has inked a pact with Gas Authority of India (GAIL) to supply, transport and market gas. Under the agreement, RIL would be allowed to use state-run GAIL's pipeline network in states such as Andhra Pradesh and Madhya Pradesh. In return, GAIL would get to market a portion of RIL's gas from the Krishna-Godavari basin. The two companies have not made a decision on the price of the gas.

Asahi Songwon Colors settled at Rs 89.95, a marginal discount over its IPO price of Rs 90 per share. On BSE, 62.91 lakh shares were traded in the scrip. The scrip listed on BSE at Rs 93 and moved in a range of Rs 87.65 to Rs 134.70. The company had priced its IPO at the lower end of the Rs 90 – Rs 108 per price band. The IPO was subscribed 1.85 times.

Chinese stocks fell sharply on Monday, 4 June 2007, following government efforts to cool a market boom that authorities worry could create a dangerous price bubble. The benchmark Shanghai Composite Index was down 8.26% at 3,670.41 after a 2.7% decline on Friday, 1 June 2007.

The Chinese government had raised taxes on trading last week in an effort to cool a frenzied market that by last week had pushed up prices more than 50% before they began to decline. Even with today’s fall, the Shanghai market is still up more than 40% since the start of the year after rising 130% in 2006.

However, most of the other Asian market held gains. Hang Seng index rose 126.72 points or 0.62% to 20,729.59 while Nikkei 225 index gained 14.54 points or 0.08% to 17,973.42

As per provisional figures, FIIs were net buyers to the tune of Rs 373.38 crore, while domestic institutional investors bought net shares worth Rs 319.84 crore on Friday, 1 June 2007

Wall Street carved out a solid advance on Friday, 1 June 2007, after data on job creation, manufacturing and inflation injected the market with renewed confidence about the economy and sent major indexes to record closes. The Standard & Poor's 500 index was the biggest gainer among the major indicators and moved toward its all-time high.

The Dow Jones industrial average advanced 40.47 points, or 0.30%, to 13,668.11, with the Dow closing on all time high for the 26th session in the year. The Dow also set a fresh intra-day high of 13,692

Broader stock indicators also gained Friday to end a week that saw stocks advance amid a bevy of favorable economic figures and the continued hum of corporate takeover activity. The Standard & Poor's 500 index rose 5.72 points, or 0.37 %, to 1,536.34. The S&P traded as high as 1,540.56 and advanced toward its record trading high of 1,552.87 set in March 2000.

Oil prices slipped on Monday, 4 June 2007, after three days of gains as a major US gasoline pipeline resumed pumping and some Nigerian militants called a one-month truce, although analysts saw little to suggest an end to 18 months of violence.

London Brent crude, currently seen as a better gauge of global oil markets, fell 31 cents to $68.76. US light, sweet crude fell 40 cents to $64.68 a barrel.