14,000 breached in later trade, Sensex closes shade lower

The market ended with a small gain today amid a divergent trend in the constituents of the Bombay Stock Exchange benchmark index. Index heavyweights, Reliance Industries and Infosys, moved in opposite direction; the former gained while the latter slipped.

Tata Motors, NTPC and Hindustan Lever (HLL) firmed up in late trading. Shipping firms and power equipment makers were in demand.

The Sensex rose 23.03 points (0.17%), a record closing, to settle at 13,972.03.

The market had firmed up in late-trading, when the Sensex had risen as many as 53.72 points, to a high of 14,002.72 at 15:01 IST. But it failed to sustained higher level, and eased at the fag end of the trading session.

The Sensex fluctuated within a narrow range during mid-morning to afternoon trade. In early-trade, the benchmark index was gripped by high volatility.

The advance-decline ratio was even. For 1,286 shares that declined on BSE, 1,283 shares rose. As many as 68 scrips were unchanged. The market-breadth weakened during the course of the trading. There was an advance-decline ratio of 1.45:1 at about 11:20 IST.

The BSE clocked a turnover of Rs 3,787 crore.

Reliance Industries rose 1.4% to Rs 1,298.45. A recent report by brokerage CLSA said, RIL’s recently submitted revised field development plan indicated potential crude reserves of 1.6 billion barrels in the block. It said the oil find was in addition to RIL’s previous similar discovery in another exploration block KG-III-6. Recently, there were unconfirmed reports that RIL is close to acquiring Adani Retail. If this acquisition materializes, it will provide RIL with retail infrastructure and real estate for Gujarat operations.

Hindalco Industries rose 3% to Rs 183.30. The stock rose for the second day in a row following reports that China’s aluminium imports are rising.

NTPC rose 2.3% to Rs 151.50. The stock rose in late-trading. In a recent report dated 5 December 2006, Merrill Lynch has raised the price target on the scrip, to Rs 180. Its revised price target is based on a discounted cash flow (DCF) analysis. The brokerages have raised their earnings estimates for NTPC.

Tata Motors (up 1.2% to Rs 892) firmed up in the last one hour of trade after being subdued for the most part. Early this week, the stock had surged on the back of strong sales for the month just gone by.

Bhel rose 1.6% to Rs 2,665. The stock hit Rs 2,668, a life high for the scrip.

Infosys shed 1.1% to Rs 2,220.

Bharti Airtel dropped in volatile trade. The stock shed 1.5% to Rs 637.10. In early-afternoon trade, the stock had lost as much as 1.9% to a low of Rs 634, after reports filtered in that it had added more than 1.35 million users in the month just gone by. It had later recovered to Rs 644 at 14:17 IST ( a fall of 0.4% for the day) after reports that it added 1.65 million new users in November 2006.