Sensex ends with modest gains

The market, which was in excellent form during the first-half of trading, eased in the second as investors began booking profits at the higher level.

The BSE 30-shares Sensex finished with a modest 22.50-point gain, at 13,703.33. It had moved in the 13,767.85 - 13,665.52 range, for the day.

The S&P CNX Nifty settled up 2.65 points, at 3,948.10.

The total turnover on BSE amounted to Rs 5,213 crore, boosted by four block deals of 15.30 lakh shares each, executed in HDFC in opening trade at an average Rs 1,662 per share. It was the top traded counter on BSE, with a total turnover of Rs 1,021.86 crore. The deals accounted for 2.4% of HDFC’s equity. The stock lost 0.25% to Rs 1,648 on a total volume of 61.48 lakh shares.

The turnover has been rising as the day of expiry of November 2006 derivatives contracts, approaches.

The market-breadth stayed positive as small-cap and mid-cap stocks also benefitted from the rally on the bourses. For 1,336 shares that advanced on BSE, 1,195 declined; just 88 remained unchanged.

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

NTPC was the top gainer, up 5.64% to Rs 149.95, on a high volume of 26.05 lakh shares. It struck a new 52-week high of Rs 150.70 following strong demand. As per grapevine, the company will benefit the most if the Indo-US nuclear deal finally sees the light of day.

Pharma major Dr Reddy’s advanced 2.53% to Rs 756, while FMCG major Hindustan Lever was up 1.02% at Rs 243.10.

Tata Steel rose 2.57% to Rs 483.55, on a volume of 15.34 lakh shares. The company brushed aside media reports about a sweetened bid for Corus Group, to stall the counter-bid by a Brazilian company. Soon after Brazil’s CSN on 17 November made a counter bid for Corus, the Tata Steel stock started languishing with investors worrying that the steel maker will over-pay in a bidding war.

ONGC rose 1.16% to Rs 855, on reports that it is likely to win 21 blocks in the sixth round of the New Exploration Licensing Policy (NELP VI). Of the 21 likely to be awarded to ONGC, 12 are deep-water blocks.

Index heavyweight Reliance Industries (RIL) lost 0.90% to Rs 1,260, on 4.39 lakh shares. It had struck an intra-day high of Rs 1,274.50.

Hero Honda was the top loser, down 1.47% to Rs 735.95. It had hit a high of Rs 747.

India's wholesale price index rose 5.29% for the year ended 11 November, marginally lower than the previous week's annual rise of 5.30% due to lower energy and milk prices, data showed on Friday. The annual inflation rate was at 4.09% during the corresponding week of the previous year.

The Nikkei average closed 1.13% down on Friday after hitting its lowest intra-day in two months, as shares of exporters such as Honda Motor Company slid on concern a higher yen will crimp earnings from abroad, and as banks and insurers fell after earnings reports. The Nikkei lost 179.63 points to 15,734.60 after earlier hitting its lowest point since late September.

Hang Seng index was down marginally by 0.03%, or 5.02 points, to 19,260.30.

FIIs continue to mop up Indian stocks, overlooking apprehensions of stretched valuations. As per provisional data, FIIs were net buyers to the tune of Rs 295 crore on Thursday (23 November), the day when the Sensex lost 26 points.

Mutual funds bought shares worth a net Rs 184 crore on 22 November 2006.

High volatility is expected in the next few days, ahead of expiry of November 2006 derivative contracts next Thursday (30 November). On Wednesday (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.