Record closing high for Sensex

Gains in cement, banking, power generation and IT shares took the Sensex to a record high today. Refinery shares edged lower though.

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.

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.

As per provisional close, BSE Sensex gained 72.74 points to 13,776.07, a record closing high.

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 62.4% growth in net profit for Q2 September 2006 to Rs 203 crore (Rs 125 crore). Total revenue rose 13.7% to Rs 1200 crore from Rs 1055 crore.

NTPC rose 2.3% to Rs 153.60 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 on Monday drawing support from lower oil prices. 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. Lower oil prices may help check inflation pressures.

Oil exploration major ONGC added 1.7% to Rs 871.90 after another exploration firm Carin India set Rs 160 to Rs 190 as price band for its forthcoming IPO.

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 provisionally closed at Rs 240.80 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.