The Week That Was - Sensex gains 224 points

Market continued its winning streak to settle at lifetime high on strong demand for index pivotals.

The Sensex rose 223.98 points or 1.73% for the week ended 3 November 2006 to 13,130.79. Nifty gained 66 points or 1.76% for the week to settle at 3,805.35.

Sensex rose 117.45 points on Monday to settle at 13,024.26, as investors mopped up heavyweights and scrips that have reported strong Q2 results. Sensex declined 62.36 points to 12961.90 on Tuesday, on selling pressure throughout the day.

The benchmark index advanced 71.14 points on Wednesday, to settle at 13,033.04 as investors bought blue chip shares. On Thursday, the Sensex finished 58 points higher to 13,091.12. Sensex rose 39.67 points on Friday to settle at 13,130.79, a lifetime closing high, as shares staged a rebound in later part of the day.

The total inflow of FIIs in the Indian equity market was Rs 1848.60 crore in the first four days of the week till Thursday (2 November).

On 31 October, Reserve Bank of India in its mid-term review of annual policy kept Reverse Repo rate unchanged at 6%, while the Repo rate was raised by 25 basis points to 7.25%.

Bank rate was kept unchanged at 6% while the Cash Reserve Ratio (CRR) was kept steady at 5%. The central bank also raised 2006/07 economic growth forecast to "around 8%" from a previous 7.5-8% estimate. The central bank said inflation would be driven by demand conditions rather than supply-side effects. It said keeping inflation in 5.0-5.5% range needed monitoring, appropriate policy response.

PSU oil exploration major ONGC surged 12.06% to Rs 884.50 for the week. The stock was boosted by news on Thursday that Norway's Norsk Hydro had offered it stake in two exploration blocks. Also there were reports, that it plans joint ventures with Russian oil companies to acquire oil and gas assets. The joint ventures would look for properties in Russia and other countries but not India. ONGC once again regained its numero uno slot in terms of market cap displacing Reliance Industries from that slot.

Reliance Industries rose 5.41% for the week to Rs 1289. It had surged to a lifetime high of Rs 1298.50 on Thursday. RIL kickstarted its retail initiative by opening its first retail store in Hyderabad. Also there were on reports that it will invest $5.2-billion to double the output from its D6 block in Krishna Godavari basin to 80 million standard cubic meters per day (mmscmd). RIL had earlier proposed investment of $2.47 billion to produce 40 mmscmd from discoveries - Dhirubhai 1 and 3 (in the D6 block) - out of a total 34 wells. RIL plans to raise up to $2 billion overseas to fund its oil & gas exploration and production business.

FMCG major, Hindustan Lever (HLL) advanced 4.15% to Rs 236 for the week. The company posted 60% rise in September quarterly earnings on strong demand for soaps, shampoos and packaged foods, as well as one-off gains from stake sales. Net profit rose to Rs 520.74 crore for the quarter ended 30 September 2006 where as the same was Rs 325.96 crore for the quarter ended 30 September 2005. The net profit included exceptional items such as gains from sale of stakes in some firms. Total Income rose to Rs 3162.82 crore (Rs 2816.42 crore).

Bharti Airtel rose 3.78% to Rs 547 for the week. It reported 79% growth in net profit to Rs 934 crore for the quarter ended September 2006, from Rs 521 crore in the corresponding period of the previous year. The company's net sales jumped 61% to Rs 4,357 crore from Rs 2,709 crore.

Colgate surged 11.44% for the week, to Rs 419.30. It reported 25% fall in net profit for Q2 September 2006 due to a huge VRS outgo of Rs 58.80 crore. Colgate’s net profit in Q2 September 2006 declined 24.9% to Rs 23.18 crore (Rs 30.88 crore). Net sales rose 15% to Rs 320.01 crore (Rs 278.12 crore).

Jaiprakash Associates surged 30.73% to Rs 596 during the week, after the cabinet of state government of Uttar Pradesh gave clean chit to a land development project which was earlier awarded to the company by the state government.

Cummins India rose 5.88% to Rs 270.70 during the week, after it reported 66% surge in net profit for Q2 September 2006 to Rs 62.69 crore (Rs 37.76 crore). Net sales has surged 30.8% to Rs 467.44 crore (Rs 357.29 crore).

KPIT Cummins Infosystems jumped 24.70% during the week, to Rs 619. The company’s board would meet on 08 November 2006 to consider a 1 for 1 bonus issue and splitting its 5-rupee share into shares of 2 rupees face value each.

AIA Engineering jumped 23.48% to Rs 1145, during the week, after it reported a 122.4% surge in net profit for Q2 September 2006 to Rs 14.81 crore (Rs 6.66 crore). Net sales rose 35.1% to Rs 95.51 crore.

The latest economic data showed infrastructure sector output grew 9.9% in September 2006 from a year earlier, much faster than revised annual growth of 5.7% in August 2006. Output rose an annual 6.3% in September 2005. It was up an annual 7.3% in the April-September 2006 period compared with 6.1% during the same period a year earlier.