Sensex closes at record high

The market continued its winning streak today and the barometer BSE Sensex closed at a record high. A divergent trend was witnessed in various constituents of the Bombay Stock Exchange (BSE)'s benchmark index.

The Sensex rose 23.03 points (0.17%), to settle at 13,972.03, a record closing high. The S&P CNX Nifty ended flat at 4,015.35.

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 and afternoon trade. In early-trade, the benchmark index was gripped by high volatility.

Though the barometer index has been exceeding 14,000 in intra-day trade for the last three trading sessions, it has failed to close above that level. On the other hand, the Nifty has succeeded in staying afloat the 4,000 mark in the same three sessions.

The market-breadth, however, has failed to meet the same high standards set by the key indices. The advance-decline ratio was negative even today. For 1,286 shares that declined on BSE, 1,283 shares rose. Just 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. On Wednesday, the breadth was weak with a decline-to-advances ratio of about 1.75:1.

The BSE clocked a turnover of Rs 3,787 crore, lower than Wednesday’s Rs 4,561 crore.

The BSE index is up more than 48% this year, the best-performer in the Asia-Pacific region. The Sensex has surged over 10% in a little over a month, in what has been a liquidity driven rally with strong FII inflow. The market sentiment remains firm due to strong FII inflow, continued strong economic growth data and healthy corporate earnings. A lot of money is said to be waiting on the sidelines to enter the market at a correction. Very few have had an opportunity to ride the latest rally, which has been extraordinarily sharp and swift.

In today's trade, Reliance Industries rose 1.4% to Rs 1,298.45. A 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) on rectification that it added 1.65 million new users in November 2006.

Reliance Communications shed 1.6% to Rs 455. It added 1.35 million new subscribers in November (CDMA plus GSM based).

Two-wheeler makers were subdued-to-weak. Hero Honda lost 2.2% to Rs 750 and Bajaj Auto lost 0.6% to Rs 2,692.

Housing finance major HDFC shed 1.4% to Rs 1,566.

HDFC Bank rose 1% to Rs 1,100. ICICI Bank rose 0.3% to Rs 874. ICICI Bank today said its international assets will grow to 25% of its total assets, from the current 16% in two years as Indian corporates continue to expand overseas.

State Bank of India rose 0.4% to Rs 1,343.90. The country's largest bank could raise fresh equity capital in the fiscal year starting next April, once the banking law is amended, Chairman O P Bhatt said on Thursday. He added that the state-run lender was waiting for the government to change legislation, allowing it to raise various types of capital with more ease.

Gujarat Ambuja Cements rose 1% to Rs 141.50. Holcim, the world's second-largest cement maker, is looking to raise its stake in Gujarat Ambuja Cements, a newspaper quoted a Holcim official in a report. Last month, the Swiss major raised its stake in GACL from 14.8% to 18.4%, by acquiring shares from GACL founders.

Power equipment makers rose on renewed buying. ABB surged 6% to Rs 3,905, Areva T&D added 5% to Rs 1,033.05, Alstom Projects gained 3.4% to Rs 461, EMCO gained 3% to Rs 734 and Siemens rose 2.5% to Rs 1,190. Bhel gained 1.6% to Rs 2,665. The stock hit Rs 2,668 a lifetime high for the counter.

Great Eastern Shipping lost 1.2% to Rs 227.05. It said on Thursday, it had signed a contract to buy a product tanker of 29,998 dead-weight tonnage. The tanker is expected to join its fleet in the fourth quarter of fiscal year 2006/07.

Bayer CropScience jumped 9.5% to Rs 268, as expectations of land sale triggered a surge in the counter. In August 2006, Bayer CropScience decided to discontinue operations at the Thane plant. The company has about 50-60 acres in Thane, which it is likely to sell.

Royal Orchid Hotels rose 2.3% to Rs 190 after it signed an exclusive territorial agreement with Ramada World Trade, to manage and develop hotels under the Ramada brand, in India. Ramada, a part of Wyndham Group World-wide, runs about 900 hotels across 25 countries.

Marico lost 0.6% to Rs 546.50. A block deal of 1 lakh shares was executed in the scrip on BSE, at Rs 550 per share.

Export house Adani Enterprises surged 5% to Rs 232.50, after data showed Reliance Mutual Fund bought 43.3 lakh shares of the company on Wednesday in a block deal on BSE. Foreign fund Lotus Global Investment sold 52 lakh shares in the block deal, which was executed at a little over Rs 200 a piece.

Shreyas Shipping & Logistics jumped 20% to Rs 121.55, after the company disclosed plans to raise up to Rs 150 crore for buyouts in India or abroad, or for investments in logistics companies. The company's board will meet on 9 December, to consider these proposals.

Centurion Bank of Punjab rose 4.6% to Rs 30.95, after it said its board had approved investing in an equity broking venture, Ambit RSM Group and TV-18 Group being the other stake holders.

Granules India rose 4.3% to Rs 91.80, after the drug maker agreed with Dutch firm PharmaMatch B.V. to jointly develop, manufacture and market formulations in the European market.

Jewellery maker Classic Diamonds (India) rose 2.9% to Rs 484.70 on reports that the company plans to raise $20 million overseas, to fund acquisitions.

Aban Offshore rose 0.9% to Rs 1,161, after the company said it had incorporated a wholly-owned subsidiary in Singapore, Aban Holdings on 6 December 2006.

Mazda rose 2.5% to Rs 186, after the company secured an order worth Rs 1.75 crore from Jindal Polyfilms.

Garments maker Gokaldas Exports lost 1.1% to Rs 632. The company said on Thursday, it is setting up a production facility in Hyderabad for Rs 25 crore.

SREI Infrastructure Finance lost 0.8% to Rs 49. The company today said T Rowe Price Associates and its affiliates sold 1.16% stake in it, lowering their shareholding in the company to 3.67%