The market continued its journey downward, posting losses for the third straight week.
The barometer index lost 142.78 points (1.05%) for the week ended Friday (22 December) at 13,471.74. The S&P CNX Nifty slipped 17.50 points (0.5%), to 3,871.15.
The 30-shares BSE Sensex gained 116.57 points, to 13,731.09, on 18 December, on strong buying in index pivotals, especially for index heavyweight Reliance Industries (RIL).
The BSE Sensex plunged 349.08-point on 19 December 2006, to 13,382.01, amid high volatility following a sell-off across Asian emerging markets, sparked by a 10% penalty imposed on foreign funds moving out Thailand within a year, by its central bank.
The Sensex lost 41.80 points to 13,340.21 on 20 December following a mixed trend in index pivotals.
The BSE Sensex settled with a gain of 44.65 points, at 13,384.86, as buying resumed. On 22 December 2006, the BSE index gained 86.88 points, to 13,471.74, as buying picked up in the fag end of the trading session.
PSU oil exploration major ONGC advanced 5.7% to Rs 869.There were reports of huge gas finds in the Bay of Bengal, initial estimates suggesting reserves of about 21 trillion cubic feet.
Reliance Industries (RIL) advanced 1.5% to Rs 1,272. It has paid an advance tax of Rs 444 crore for the third installment, taking its total remittance to Rs 1,102 crore, compared to Rs 848 crore paid in the same period last year, reports said. Also, there were reports that RIL is talking with the Russian government for permission to invest in a refinery and petrochemical industry there. Unconfirmed reports suggested that the company had acquired Orient Craft, a leading garment exporter.
Maruti Udyog rose 2.13% to Rs 922.10, after the Cabinet Committee on Economic Affairs (CCEA) approved the sale of the government's residual 10.2% stake. Japanese car giant Suzuki has a majority 54.2% stake in the company. The government's stake in Maruti is valued at Rs 2,800 crore.
PSU engineering major Bhel lost 8% to Rs 2,310. The scrip declined as it failed to secure ceratin equipment orders for the upcoming ultra mega power projects. It also bagged a Rs 165-crore order from IOC for setting up a power plant at the oil major's Haldia refinery in West Bengal.
FMCG bigwig, ITC, slipped 2.90% to Rs 169.55, amid reports that it will expand fruit, vegetable retail as well as the wholesale business by opening 54 new outlets in select metros in the next three years. The company will target metropolitan cities for these wholesale-cum-retail stores. Currently, there are 6,500 e-Choupal kiosks in over 38,000 villages across nine states.
Telecom software firm, Tech Mahindra, jumped 46.36% to Rs 1,651. It had announced signing of a five-year deal to provide BT with strategic sourcing services. This contract is expected to generate in excess of $1 billion new revenue for Tech Mahindra. The company will support BT’s planned growth of managed services to business customers around the globe, while continuing ongoing services related to BT’s internal systems, processes and re-usable platforms.
L.T. Overseas settled at a slight discount, at Rs 55, compared to its IPO price of Rs 56 per share on 18 December 2006. The stock listed on BSE at 7.14% premium, at Rs 60, and hit an intra-day high of Rs 62.90. The intra-day low was Rs 51.
On 20 December 2006, Sobha Developers settled at premium at Rs 968.75 on BSE, compared to its IPO price of Rs 640 per share. The scrip debuted at Rs 1,111.25 on BSE and hit a high of Rs 1,179. Its low was Rs 918.10. Sobha Developers’ IPO was subscribed over 100 times.
Ruchira Papers finished at a discount, at Rs 20.95 on BSE, compared to the IPO price of Rs 23 per share on 20 December. The stock listed on BSE at 5.86% premium, at Rs 24.35 per share, which was also its intra-day high. The stock dipped to a low of Rs 20.65.
On 21 December, Great Offshore settled at Rs 727.05. Great Offshore came into existence following a restructuring of GE Shipping, whereby the shipping firms’ offshore services business was transferred to a separate company.
Jindal Drilling & Industries settled at Rs 580 on BSE, on 22 December. Jindal Drilling’s restructuring scheme involved the amalgamation of two group companies Newsco Newtech and Discovery Hydrocarbons with the company. It also involved demerger of Jindal Drilling’s Casinvest division into Haryana Engineering.
India's wholesale price index rose 5.32% in the 12 months to 9 December, which is higher than previous week's annual rise of 5.16% due to an increase in food prices. The annual inflation rate was 4.39% during the corresponding week of the previous year, data released on Friday showed.
Meanwhile, RBI on 15 December came out with new capital market exposure norms for banks, which will come into force from April 2007. In terms of the new guidelines, the exposure of a bank to the capital market cannot exceed 40% of its net worth as on 31 March of the previous year.