Sensex climbs nearly 90 points on FII support

The BSE Sensex settled above 13,700 for the first time, extending its 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. It touched an all time high of 3960.

The total turnover on BSE amounted to Rs 5,151 crore as compared to Rs 4595 crore on Tuesday (21 November).

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. The BSE Mid-Cap index finished at 5,600.56 up 53.70 points or 1% while the BSE Small-Cap index rose 0.74% or 47.17 points to 6,463.78.

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.

Tata Steel lost 0.84% to Rs 471.45 on 9.40 lakh shares. It said on Wednesday it has signed a joint venture agreement with Tata Power Company for captive power plants in three states. Tata Steel will hold 26% in the venture, with Tata Power holding the remainder. The plants would be set up in Chattisgarh, Orissa and Jharkhand to support the expansion plans of Tata Steel.

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 cumulative volume of 25.64 lakh shares.

The BSE capital goods index was the biggest gainer among sectoral indices, up 210.32 points (2.39%), to 9,004.53. Crompton Greaves (up 3% to Rs 272.50), Aban Loyd Chiles (up 6.45% to Rs 1,105), SKF Bearings (up 3.62% to Rs 309.50), Cummins (up 4.67% to Rs 282.55), Bhel (up 2.10% to Rs 2470), Larsen & Toubro (up 1.92% to Rs 1,374) and ABB (up 4.48% to Rs 3,547) moved higher.

FMCG stocks failed to take-off because of profit-booking, the BSE FMCG index declining 1.10%, to 2,011.12. It was the lone loser among sectoral indices on BSE. Major losers were ITC (down 0.98% to Rs 182), HLL (down 1.25% to Rs 245.45), Dabur India (down 0.52% to Rs 142.20) and Colgate (down 1.10% to Rs 378.35).

State-run oil refiners and marketing firms slipped after crude oil touched $60 a barrel on Wednesday, its highest in two weeks. Indian Oil Corporation (down 2% to Rs 503.10), Hindustan Petroleum Corporation (down 3.03% to Rs 315), and Bharat Petroleum Corporation (down 2.23% to Rs 371.25) declined.

Siemens jumped 11.83% to Rs 1,356.90, after it bagged a Rs 4,000 crore project in the power transmission and distribution segment, the execution of which will happen over 22 months, starting December 2006. Interestingly, Siemens November 2006 futures contracts were the most active in the F&O segment, accounting for Rs 1,373.49 crore in turnover. The contract settled at a premium, at 1,358.95.

ICI India jumped 7.55% to Rs 374, under the reckoning it will make huge capital gains by disposing off subsidiary, Quest International. ICI India has decided to sell its wholly-owned subsidiary, Quest International India (Quest India), to Switzerland's Givaudan Group for not less than Rs 390 crore. Since ICI India had invested Rs 209 crore in Quest India shares, it will end up with a capital gain of at least Rs 181 crore from the sale. ICI said it expects the transaction to be completed before the end of the financial year.

Shares of textile firm Birla VXL surged 10% to Rs 53.10, for the second day in a row, on hopes that the impending rights issue may be another step towards a possible turnaround. The stock surged 10% to Rs 48.30 on Tuesday (21 November) – the day when the scrip turned ex-rights. The company’s rights issue in the ratio of 4:7, is priced at par. But, there will be large equity dilution following the rights issue. The paid-up equity capital will surge to Rs 68.74 crore from Rs 43.74 crore on completion of allotment in the rights issue.

Gateway Distriparks rose 3.10% to Rs 177.75, after its board approved buying 50.1% stake in Snowman Frozen Foods for Rs 48.12 crore, which is well-known for transporting and stocking ice-creams, fruits, vegetables, and seafood, especially for Hindustan Lever and Amalgam group. Snowman’s integrated logistics management comprises the entire spectrum of the supply chain; from procurement to storage and retail distribution.

Top zinc maker Hindustan Zinc surged 7.13% to Rs 932, on the back of a rise in zinc prices on the LME, for the second day in a row. Zinc for delivery in three months closed at $4,295 a tonne, up 3% or $126 from the previous session. The stock had risen 3%, on Tuesday (21 November) to Rs 869.90 after being listed on NSE.

International Travel House, an ITC associate company, rose 2.26% to Rs 162.60 amid reports that it has been put on the block. Reports also reveal that the price tag is about Rs 140 crore for the company.

Fulford India rose 1.90% to Rs 592 after UK-based Dashtag made an open offer to shareholders for acquiring an additional 20% stake in the pharma company at Rs 575 per share.

State-run Union Bank of India rose 1.16% to Rs 135, after allying with Infrastructure Leasing & Financial Services (IL&FS) for rendering services to foreign funds in India.

Crude oil prices edged slightly lower after climbing above $60 yesterday on news that Alaskan oil shipments had been disrupted. Falls were limited, however, by expectations that today's inventory data will show another drop in US fuel stocks. New York light sweet crude contracts for January delivery were down 22 cents, at $ 59.99 a barrel.

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.