Sensex about 150 points short of 14,000

The market’s gravity defying rally continues. The Sensex today struck an all-time high, and made a move closer to 14,000. A smooth rollover from November contracts on Thursday to December series coupled with robust GDP growth data released during trading hours on Thursday, lifted the Sensex by almost 150 points today. Auto scrips, PSU banks and index heavyweight Reliance Industries were at the forefront of today’s rally.

The Sensex jumped 148.47 points (1%), to settle at 13,844.78, a record closing. It is now just about 150 points away from the psychologically important 14,000 milestone.

S&P CNX Nifty advanced 43.10 points (1%), to settle at 3,997.60, a record closing. It also hit 4,001.30, a life high for the index.

The BSE clocked a turnover of Rs 4,451 crore, compared to Thursday’s Rs 4,854 crore.

The market-breadth was strong. For 1,484 shares that rose on BSE, 1,080 declined. As many as 72 stocks were unchanged.

The salient feature of the recent rally has been a surge in small-cap and mid-cap shares. Even as the Sensex kept striking a string of record highs over the past few days, small-cap and mid-cap stocks had lacked momentum.

From 6,531.39 on 28 November, the BSE Small Cap Index has risen 187.35 points (2.8%) in the past three trading sessions to current 6,718.74. From 5,651.21 on 28 November, the BSE Mid Cap Index has gained 124.21 points (2.1%) in three days, to current 5,775.42. The Sensex added 242.83 points (1.7%) in this three-day period, from 13,601.95 on 28 November 2006.

The market sentiment remains bullish due to strong FII-inflows and an upward revision in earnings growth by brokerages, on the back of strong Q2 results. Widespread optimism that FIIs may step up buying this month, as allocations are made for calendar 2007. FII inflow in 2006 has reached $8.7 billion, compared to a record inflow of $10.7 billion in 2005.

The BSE Sensex is up 47.3% in calendar 2006 so far. From 4,644 on 23 June 2004, it has galloped 198% in less than two-and-a-half years. A section of the market attributes the solid surge on the Indian bourses, to increasing recognition of India’s long-term growth prospects. India’s growth drivers are a favourable demography (large share of young population), robust domestic consumption and acceleration in infrastructure creation.

In today’s trade, Ranbaxy Laboratories surged nearly 4% to Rs 385.60, with the stock rallying in late-trading after the company announced the acquisition of Be-Tabs Pharmaceuticals, the fifth largest generic drugs company in South Africa, for $70 million.

Auto shares dominated the proceedings on decent-to-strong sales numbers for November. Bajaj Auto rose 4% to Rs 2,751, after its total sales rose 33% in November 2006, to 2,43,713 units from a year ago. Bike sales rose 36% to 2,14,321 units and sales of three-wheelers were up 71% at 29,384 units. Exports rose 56% to 36,086.

Hero Honda rose nearly 2% to Rs 757.35. Hero Honda today launched two variants of its CD series motorcycles, CD Deluxe and CD Dawn, in the 100-cc, entry-level segment.

Tata Motors surged 4% to Rs 844.25, on expectations of strong sales for November 2006. Tata Motors is likely to disclose its monthly sales figures today.

Car major Maruti Udyog added nearly 3% to Rs 952.60. In early-trade today, the car major reported selling 55,033 vehicles in November, a 16.1% rise from a year earlier. The company said domestic sales rose an annual 20.7%, to 52,574, but exports fell 35.7% to 2,459 units.

PSU banks were in demand after the latest data showed lower-than- expected rise in inflation. SBI jumped 4% to Rs 1,369.90. The stock hit Rs 1,370, a life high for the scrip.

Cellular services provider Reliance Communications rose 3.7% to Rs 445.25. The scrip struck Rs 446.90, an all-time high. A staggering 16.8 lakh shares changed hands in the counter on BSE.

Reliance Energy gained 2.2% to Rs 540.05. As per reports, Maharashtra Electricity Regulation Commission has directed the company to discontinue levy of load management charges.

Reliance Industries gained 1.3% to Rs 1,262.25. A strong 7.4 lakh shares changed hands in the counter.

A host of power equipment makers/solutions provider to the power sector surged. Alstom Projects jumped 9.7% to Rs 468.90, Bharat Bijlee gained 7.9% to Rs 1,205, ABB surged 7% to Rs 3,747, Voltamp Transformers gained 5.8% to Rs 631.80, Areva T&D rose 5% to Rs 972.10, Siemens advanced 4.7% to Rs 1,182, and KEC International gained 3% to Rs 390.

Construction firm Punj Lloyd jumped 7.6% to Rs 1,112, after the firm said it had an order worth Rs 1,000 crore to construct an LDPE manufacturing plant in Thailand.

Gas cylinder maker Everest Kanto Cylinder jumped 10% to Rs 606.50, on expectation that the firm will announce a large order in the next few days.

Thomas Cook India jumped 10% to Rs 564.05, ahead of the company's board meeting to consider merger and acquisition proposals.

Sponge iron and steelmaker Raipur Alloys and Steel jumped 14% to Rs 140 after the company informed Friday that Reliance Long Term Equity scheme of Reliance mutual fund purchased 9.62% in it. The fund acquired about 1.26 million shares on 29 Nov, the company said.

Essar Shipping jumped 17.8% to Rs 27.80. The company today said it had received a letter from promoters, Essar Shipping & Logistics, to delist the company's shares from BSE. The company has called a board meeting on Saturday, to consider delisting.

McLeod Russel India rose 2.6% to Rs 109.95 on reports that the company had acquired 72 % stake in Moran Tea Co for Rs 41.50 crore. The acquisition of Moran Tea will add Rs 32 - Rs 33 core to McLeod's annual revenue, Managing Director Aditya Khaitan said.

Paramount Communications jumped 8.5% to Rs 255. The scrip rose on heavy volume of 37.1 lakh shares on BSE. A block deal of 2,67,268 shares was executed in the stock on BSE, at Rs 247.

Global Vectra Helicorp jumped 20% to Rs 192, on reports that the government is planning to raise FDI limit to 74% in helicopter services, non-scheduled airline operations and regional airlines using small aircraft. The current ceiling for airline services is 49%.

Shoppers’ Stop rose 3% to Rs 702.25, after the company formed a 50:50 joint venture with Swiss firm Nuance Group, a global market leader in the airport retail space, to operate duty free shops at international airports in India.

Ispat Industries was flat at Rs 11.09. The company has reduced prices of hot-rolled coils by Rs 400 - Rs 600 per tonne, with immediate effect.

Tamil Nadu Newsprint & Papers gained 1.5% to Rs 94. The company said on Friday that Reliance Growth Fund and Reliance Portfolio Management Services, have picked up an additional 0.32% stake in the company. This takes their collective stake to 5.08%

Nandan Exim dropped 5% to Rs 10.55 in volatile trade. Initially, the scrip had surged 5% to Rs 11.65 after a block deal of 5 lakh shares was executed in the scrip on BSE, at Rs 11.45.

Steel Strips Wheels rose 3% to Rs 155.90, after the company said on Friday its November sales of wheel rims rose to 4,10,086 units, up 35% from a year ago. It produced 4,00,824 wheel rims in November compared to 2,68,555 rims same month a year ago.

Flex Industries (up 20% to Rs 82.65) surged for the second day in a row after the company said on Thursday that the merger of two other group companies, had been cleared by the Delhi High Court. Group companies, Flex Engineering and FCL Technologies, will be merged with Flex Industries, enabling accumulation of resources under a single entity that will provide end-to-end packaging solutions.

Financial Technologies shed 1.8% to Rs 2,062. The company on Thursday said it had in principle approval from the Financial Services Commission, Mauritius, for setting up an international multi-commodity exchange styled Global Board of Trade.

TRF lost 0.8% to Rs 425. ACC has cut its stake in the company by 2%, bringing it down to 4.54%, informed TRF.

HCL Infosystems rose 0.3% to Rs 165. The personal computers market recorded 24% growth in the third quarter ended 30 September 2006. HCL Infosystems has retailed its number two slot with a market share of 12%.

Graphite India rose 1.4% to Rs 303, after the company fixed 18 December 2006 as a record date for 5-for-1 stock-split.