Market spews fire, ends at record high

The BSE Sensex settled above 13,700 for the first time. The market continued to rally for the third straight day, as FIIs lapped up equities on the domestic bourses.

The Sensex rose 89.76 points (0.66%), at 13,706.53, an all-time closing high. It had opened with an upward gap, at 13,625.09, backed by firm Asian markets. The market had touched an all-time high of 13,740.39, during the afternoon session, the low being 13,625.09. Thus, the benchmark index oscillated 115 points intra-day.

The S&P CNX Nifty advanced 36.50 points (0.93%), to 3,954.75, its all time closing high.

The total turnover on BSE amounted to Rs 5,151 crore.

The market-breadth was just about positive with 1,299 shares advancing on BSE, against 1,235 that declined. A total of 78 shares did not change.

Among the 30-Sensex pack, 19 advanced while the rest declined.

Satyam Computers was a top gainer, up 5.96% to Rs 480.25, on 17.43 lakh shares. The stock moved in a broad range of Rs 482 – 455.05.

Reliance Energy advanced 3.50% to Rs 551, amid reports that subsidiary, Reliance Energy Transmission, had bid for establishing transmission lines for the Western Region System Strengthening (WRSS) scheme by Power Grid Corporation of India. The financial bids were opened on 20 November 2006, and are being scrutinised. The stock fluctuated between Rs 536.90 – Rs 555.45.

Bharti Airtel (up 2.32% to Rs 638) and Reliance Communications (up 3.43% to Rs 430.15) rose for the second successive day amid reports that the government will free up more frequencies for cellular telephony. Both had set new records earlier in the day.

The media informs that the Department of Telecom (DoT) has decided to roll out the optical fibre cable project in phases, which will free a part of the 45 Mhz of radio frequency being used by the armed forces presently. This will help cellular service providers, who are facing a severe spectrum crunch. Reports also claim that the third generation 3G mobile services may hit the market as early as mid-2007.

State-run oil explorer ONGC rose 1.40% to Rs 857, after global crude oil prices firmed up around $60 a barrel.

ICICI Bank rose 1.04% to Rs 880.40, due to reports that it will raise funds overseas to finance lending growth. ICICI Bank has been riding the crest of a lending wave which has lashed Indian shores. Bank loans in India have been growing at an annual rate of nearly 30%, even though the central bank turned on the screws during policy setting meets this year. Last month, ICICI Bank sold $400 million worth of five-year bonds. In August, it raised $340 million in perpetual, hybrid tier-I securities.

Index heavyweight Reliance Industries advanced 0.39% to Rs 1,277.60, on a volume of 6.22 lakh shares. It moved between Rs 1,273- Rs 1,290.

HDFC Bank was the top loser, down 1.29% to Rs 1,077.10, on 1.39 lakh shares.

Infosys lost 1.28% to Rs 2,223, as its ADR lost 3.3% on Tuesday, to settle at $53.44.

Two block deals of 12.85 lakh shares and 5.65 lakh shares were struck in Rico Auto at an average Rs 60 per share. The stock lost 0.83% to Rs 60.10, on a total volume of 25.64 lakh shares.

The Nikkei rose 1.14% on Wednesday as Softbank Corp and Fast Retailing Co rebounded after recent drops. The Nikkei 225 index added 180.09 points, to 15,914.23. On Monday, the Nikkei benchmark ended at its lowest close since late-September.

Hong Kong’s Hang Seng index rose 242.49 points (1.28%), to 19,250.79.

US stocks ended a bit higher on Tuesday, as fresh records in shares of aircraft maker Boeing Co and Web search leader Google Inc outweighed rising oil prices. The Dow Jones industrial average rose 5.05 points, or 0.04%, to end at 12,321.59. The Nasdaq Composite Index added 2.12 points, or 0.09%, to close at 2,454.84.

Mutual Funds were net equity sellers worth Rs 285 crore on 20 November 2006.

High volatility may emerge in the near term as traders square off, or carry forward, their outstanding contracts for November futures ahead of the expiry of contracts next Thursday (30 November). The latest NSE F&O open interest has gone up by Rs 1,659 crore, to Rs 54,824 crore.