Nifty moves closer to 4000 mark

The market continued its winning streak with Sensex surging to a record high. It was the index's 12th record close in 19 trading days so far this month. Steady to firm Asian markets and short covering in derivatives ahead of expiry of November 2006 derivatives contracts aided the Sensex’s surge. November derivatives contracts expire on Thursday 30 November.

Cement, banking, power generation and IT shares led today’s Sensex surge. Refinery shares edged lower though.

Sensex jumped 70.26 points or 0.5% to settle at 13,773.59, a record closing high. The S&P CNX Nifty advanced 18.05 points or 0.46% to settle at 3,968.90, a lifetime closing peak.

The market opened on a firm note and it firmed up further in early afternoon trade. Sensex rose as much as 95.69 points to a high of 13,799.02 at 12:24 IST which is a lifetime high for the barometer index.

Select side counters surged. The market breadth was positive. 1425 shares rose on BSE as compared to 1129 shares that declined. 64 shares were unchanged. Gainers outpaced losers by a ratio of 1.26:1. BSE clocked a turnover of Rs 4173 crore, much lower than Friday (24 November)’s Rs 5249 crore.

Sensex has risen 46.5% this year, making it Asia's best performing market. The near term trend on the bourses would be determined by the extent of rollover to December 2006 contracts from November contracts ahead of expiry of November contracts this Thursday (30 November). Derivatives positions are quite large. On 22 November, the open interest in NSE’s futures & options segment hit an all-time high of Rs 57,158 crore. The previous record high was Rs 56,991 crore of 27 April 2006. 46% of the open positions are stock futures and 22% are index-based futures.

Meanwhile, large daily FII figures indicate that there have been simultaneous entries and exits. This in turn indicates of different strategies being adopted by various FIIs operating in India. This also suggests churning of portfolios. On a net basis, there has been stepping up of inflow by FIIs over the past two months. Their inflow totaled Rs 8378.20 crore in November 2006 (till 23 November). The inflow was Rs 8013 crore in October 2006. The inflow was Rs 1145 crore in July, Rs 4643.10 crore in August and Rs 5425 crore in September. The cumulative inflow for calendar 2006 has totaled $8.5 billion. The inflow was a record $10.7 billion 2005.

Market men are watching also as to what extent the ruling government is able to pass some of the financial sector reforms. The winter session will debate, among other things, the Banking Regulation (Amendment) Bill, which proposes to increase the voting rights of foreign stakeholders in private banks presently capped at 10%. However, the Left parties are opposed to the amendment fearing that it will lead to a takeover of private banks by foreign entities. The winter session has just begun, and will last till 19 December 2006.

In today’s trade, cement shares rose on firm cement prices. ACC gained 3.8% to Rs 1114, Gujarat Ambuja Cements added 3.6% to Rs 143.50, Grasim rose 0.6% to Rs 2690.30 and UltraTech Cement advanced 0.5% to Rs 886.

Tata Power rose 2.3% to Rs 590 after the company today reported 61% growth in net profit for Q2 September 2006 to Rs 202.32 crore (Rs 125.67 crore). Total revenue rose 16.5% to Rs 1279.17 crore from Rs 1097.21 crore.

NTPC rose 2.3% to Rs 153.60 on its plans to set up a power plant in Sri Lanka. But the stock pared gains, after rising as much as 5.1% to a high of Rs 157.80 at 10:52 IST. A block deal of 10.35 lakh shares was executed in the scrip on BSE at Rs 155 at 14:01 IST.

Bharti Airtel rose 2% to Rs 629.45 after group company Bharti Enterprises agreed to form a joint venture with US retailer Wal-Mart Stores to enter the Indian retail sector.

IT shares were in demand. Wipro rose 1.9% to Rs 602, HCL Tech advanced 1.7% to Rs 640.25, and TCS rose 0.8% to Rs 1157.80. Software major Infosys shed 0.3% to Rs 2226. TCS Chief Executive S. Ramadorai said on Friday (24 November) TCS was getting new contracts at 5-10 percent higher billing rates. He said the existing contracts were being negotiated for renewal at 3-5 percent higher rates.

Tata Steel lost 0.5% to Rs 480.50 in volatile trade. Corus Group PLC said on Monday it is to give Brazilian steel company Companhia Siderurgica Nacional SA (CSN) more time to weigh up a formal offer for the Anglo-Dutch steel group. CSN approached Corus on Nov 17 with an informal takeover offer of 475 pence a share topping the 455p a share bid from India's Tata Steel on Oct 20.

Frontline bank shares were in demand after bond price hit 7-month high. State Bank of India gained 2% to Rs 1282. ICICI Bank was 0.8% to Rs 882. A block deal of 17.6 lakh shares was executed in the FII segment in the scrip on BSE at Rs 885.

Oil exploration major ONGC added 1.7% to Rs 871.90 on market expectations of new gas finds.

Reliance Industries (RIL) lost 0.8% to Rs 1251. Reliance Industries is finding more and more gas in the Krishna Godavari basin off southern India, Chairman Mukesh Ambani said on Monday. Reliance made one of the world's largest gas finds at the KG basin in 2002.

Hindustan Zinc jumped 5.6% to Rs 970.65 after the top zinc producer raised zinc prices by 3.5 percent to Rs 2,28,800 a tonne. The firm simultaneously cut lead prices by 3.04 percent to Rs 82,800 a tonne.

GE Shipping was trading at Rs 221.30 compared to the last trading price of Rs 336.70 of 7 November 2006. The scrip was relisted today giving effect to a restructuring scheme whereby its offshore services division has been demered into a separate company which would be listed separately. 37.2 lakh shares changed hands in the counter on BSE.

Lanco Infratech closed at Rs 241.40 on BSE compared to IPO price of Rs 240. The scrip reached a low of Rs 239.55 and a high of Rs 275. 1.02 crore shares changed hands in the counter on BSE.

Rise in crude price weighed on refinery shares. Indian Oil Corporation lost 3% to Rs 488.05, HPCL shed 1.8% to Rs 310.50 and BPCL shed 1.1% to Rs 371. Nymex crude was up 56 cents at $59.80. It had hit a high of above $60 in intra-day trade today.

Bhel lost 1.1% to Rs 2500. The company said on Monday it had won a Rs 129 crore order from Hindustan Zinc to build a power plant in Rajasthan.

UTI Bank lost 0.3% to Rs 495. Three block deals of 23.11 lakh shares each were executed in the UTI Bank scrip on BSE at average price of about Rs 501.30.

Construction firm Unity Infraprojects rose 3% to Rs 539 after a consortium headed by it secured a contract worth Rs 65.58 crore to expand the Amritsar airport building. It would partner with Pratibha Industries in this project. Pratibha Industries dropped 3% to Rs 230.30.

Essar Oil rose 2% to Rs 52.70 after the firm said late on Friday it had started operations at its $2.4 billion refinery at Vadinar in western India.

Lok Housing and Constructions rose 4% to Rs 337.05 after the firm said its board approved raising up to $200 million in the overseas market through convertible bonds or depositary receipts.

Tyre shares edged higher on the back of falling natural rubber prices. JK Industries jumped 10% to Rs 136.90, MRF rose 5% to Rs 4995, Falcon Tyres rsoe 2.5% to Rs 113, Apollo Tyres gained 2.2% to Rs 346 and CEAT rose 1% to Rs 121.15. Natural rubber is a key raw material in the manufacture of tyres.

Punj Lloyd jumped nearly 9% to Rs 1044 on reports it has evinced interest in setting up a refinery in Russia. It has also evinced interest in setting up a construction equipment manufacturing unit and an agriculture project in that country.

Sun TV ended flat at Rs 1515. The company said on Monday its board has approved the merger of satellite television company, Gemini TV with itself. The board also approved merging Udaya TV excluding the FM (frequency modulation) radio division, with itself.

Plantation firm McLeod Russel India rose 2.4% to Rs 108 after the company said on Monday its board would meet on Dec. 1 to consider merging its subsidiary, Doom Dooma Tea Co. Ltd., with itself.

UTV Software lost 2.4% to Rs 259.50. UTV Software said on Monday it plans a television joint venture with a unit of Malaysia's Astro All Asia Networks Plc., marking its return to television broadcasting.

Hindustan Construction (HCC) lost 2.4% to Rs 150. As per reports, Hindustan Construction (HCC) is planning an initial public offering of its real estate unit HCC Real Estate. It is currently 100% owned by HCC.

City Union Bank jumped 14% to Rs 150.50 after the bank said on Friday its board will meet on 30 November 2006 to consider further issue of equity shares by way of preferential allotment.

Bank of Rajasthan was flat at Rs 38.10. As per reports, the private sector bank plans to get into life and general insurance businesses, after shoring up its net worth to Rs 1000 crore in 18 months.

IDBI ended flat at Rs 77.75. It plans to raise Rs 350 crore through bonds this week.

Adani Enterprises ended flat at Rs 202. The export firm said its board would meet on Dec. 2 to consider issue of foreign currency convertible bonds or other securities or debt.

Provogue India rose 2.2% to Rs 448. The company’s board meets on December 1 to consider expansion plans.

Alembic Glass lost 1.7% to Rs 2775. As per reports, it has come out of purview of BIFR as its net worth has become positive on amalgamation of Shreno with itself.