Gains capped despite swelling turnover

The market remained unbeaten for the fourth straight day as buying continued unabated. The high turnover on BSE, which was more than Rs 5,000 crore, was the salient feature of trading today.

The BSE Sensex gained 26.50 points (0.20%), to end at 13,425.50, a lifetime closing high. The Sensex had surged to an all-time high of 13,486.74 in opening trade, its low being 13,380.77, even while oscillating 106 points for the day.

The S&P CNX nifty rose 7.15 points (0.19%), to finish at 3,865.90, also a lifetime closing high.

The market-breadth turned negative due to profit-booking in small-cap and mid-cap counters. Against 1,625 shares that declined, only 929 advanced. As many as 65 scrips remained unchanged. The BSE Mid-Cap Index was down 0.76%, while the BSE Small-Cap Index lost 0.91%.

The total turnover on BSE beat Monday’s turnover of Rs 3,943 crore, as investors bet long on frontline IT pivotals, and shares worth Rs 5,139 crore changed hands. A huge block deal in TCS accounted for almost 18.65% (Rs 957.36 crore) of today's turnover. Obviously, TCS was the top-traded counter on BSE.

Among the 30-Sensex pack, 18 declined while the rest advanced.

IT major TCS was thre top gainer, up 2.97% to Rs 1,106.50 on a total volume of 88.92 lakh shares, after block deals for a total of 85.05 lakh shares were executed in the scrip on BSE, at an average price of Rs 1,075.50 in early trade. This constitutes 0.8% of the equity capital of Rs 97.86 crore (face value Re 1 per share). Citigroup Asia has purchased this stake from the promoters, who hold 84% in the company. TCS has also won a $100 million contract in the US.

Infosys advanced 2.32% to Rs 2,211 on 5.13 lakh shares. The stock had surged to a lifetime high of Rs 2,225. On Monday, the Infy ADR had surged 3% to $55.17.

The excitement in Infosys also translated into gains for other IT scrips. Satyam Computers (up 1.30% to Rs 431.10) and Wipro (up 0.93% to Rs 547) shifted to higher terrain. Satyam Computer Services ADR rose 3.29% to $22.61, while Wipro’s ADR added 1.89% to finish at $14.56 on NYSE.

A block deal of 5.43 lakh shares was struck in Mphasis BFL, at Rs 242.95 per share by 10:13 IST. It rose 2.66% for the day, to Rs 247.25 on a cumulative volume of 10.75 lakh shares.

ICICI Bank gained 2% to Rs 857.45, extending its recent surge, after striking a lifetime high of Rs 861. The stock is trading at record levels on expectations that earnings growth will last. Renewed buying has lifted the scrip 10.8%, from Rs 767.75 on 6 November 2006.

PSU power generation company NTPC was the top loser, down 2.14% to Rs 135, on 9.33 lakh shares.

FMCG major HLL lost 2.05% to Rs 247.50 on 5.96 lakh shares. It traded in a range of Rs 245.05 – Rs 254.

Dr Reddy’s Lab (DRL) lost 0.74% to Rs 789.20, after the company on Monday applied to US regulators to sell 13.5 million ADRs. As per reports, DRL has filed for $ 235 million ADS issue with the US Securities and Exchange Commission. This is DRL's second ADS issue on the NYSE. DRL ADS issue will lead to equity dilution of 8.8% and the company will have 20.8% paid-up equity listed on the NYSE. Dr Reddy’s will use the proceeds to repay the long-term debt from Betapharm's acquisition.

Index heavyweight Reliance Industries (RIL) recovered slightly from the day’s low of Rs 1,273 and finished with a loss of 0.83%, at Rs 1,276.10. As many as 6.12 lakh shares had been transacted in the counter. Reports point to Reliance Retail considering a tie-up with Nestle India. RIL has also applied for three coal blocks to implement underground coal gasification project.

While the market was trading strong, metal producers tumbled under selling pressure. A sharp decline in metal prices on the London Metal Exchange (LME) triggered the fall. The BSE Metal index was the top loser among sectoral indices, down 119.64 points (1.32%), at 8,978.43.

Hindustan Zinc was the chief loser among metal shares, down 4.87% to Rs 861.25 on 12.98 lakh shares. Sterlite Industries (down 0.91% to Rs 534), Hindalco (down 1.87% to Rs 178.50), Tata Steel (down 1.39% to Rs 490.25), SAIL (down 2.05% to Rs 84), and Hindustan Copper (down 2.77% to Rs 86) declined.

Refinery shares edged higher as oil price declined for the second day in a row on Monday. BPCL gained 1.07% to Rs 367.20 and HPCL added 2.42% to Rs 306.50 as crude oil prices stabilised, below $ 60 per barrel.

Chemicals and pesticides maker United Phosphorus surged 5.25% to Rs 306.65. Media reports speculate that it will buy a crop protection firm in western Europe for "slightly higher" than 100 million euros.

PBA Infrastructure jumped 7.37% to Rs 142.80, after it bagged two contracts worth Rs 101.12 crore from Jammu & Kashmir Economic Reconstruction Agency.

Real estate developer Unitech jumped 5% to Rs 447.20, extending its recent surge with pending buy orders for 4.16 lakh shares at the 5% upper limit in the scrip on BSE. A strong response to the recent IPO of real estate development major Parsvnath Developers, has in turn lifted the Unitech scrip. Parsvnath's IPO was subscribed over 60 times, with FIIs making a beeline for the IPO. The issue was closed on 10 November 2006.

Glenmark Pharma rose 3.46% to Rs 507.30, on reports that the new drug policy will extend tax benefits on R&D till 2015.

UTI Bank jumped 5.35% to Rs 475.70, after the company said on Monday it plans to raise Rs 200 crore through upper tier II unsecured redeemable subordinated debentures. The scrip had surged to a lifetime high of Rs 477.45.

Tulip IT Services lost 1.91% to Rs 379, after it contradicted media claims about winning a large order worth Rs 102 crore IT project from Haryana government.

FDC spurted 4% to Rs 41.50, on signing an exclusive development and supply agreement with Akorn Inc, for two ophthalmic drugs. Under the agreement, Akron will get 40%, while FDC will get 60% of the gross profit generated from the sales of the two products, which, currently, have a combined US market size of about $ 170 million.

The Nikkei share average rose for the first time in five sessions, gaining 1.67% after stronger-than-expected gross domestic product data sparked a rebound in Sumitomo Mitsui Financial Group and other firms sensitive to domestic demand. Japan's economy expanded 0.5% in the three months to September compared with the preceding quarter, beating market expectations of 0.2% growth in price-adjusted terms. The Nikkei 225 index settled up 267.06 points, at 16,289.55.

Hang Seng index ended up marginally 9.88 points (0.05%), at 18,878.42.

FII-inflows remain strong. By the first few days of November 2006, FII inflow stand at Rs 2,816 crore (till 10 November). In October 2006, when the earnings poured in, their net inflow totaled Rs 8,013 crore compared to an inflow of Rs 4,643 crore in August and Rs 5,428 crore in September. FII-inflow in calendar 2006 stands at $7.3 billion. In calendar 2005, FII inflow was a record $ 10.7 billion.

Net foreign investment in Indian equities has topped $7 billion this year, helping the BSE index gain over 15% since the start of September and more than 43% so far this calendar year, making it the best-performing index in Asia-Pacific.

FIIs had purchased net equities worth $ 103.7 million on 10 November, while mutual funds purchased to the tune of Rs 129.87 crore on 10 November 2006.

The US stock markets closed higher on Monday. Nasdaq gained 16.66 points, or 0.70%, to 2,406.38. It opened at 2,388.93 and touched a high of 2,408.91 during the day. The Dow Jones Industrial Average rose 23.45 points, or 0.19%, to 12,131.88, after reaching an intra-day high of 12,164.70. Out of the 30 components of the Dow, 20 finished higher and 10 ended lower.