The market ended a loser during the week, the first time after six straight victorious weeks.
The BSE Sensex lost 45.29 points for the week ended Friday (8 December), to settle at 13,799.49. The Nifty lost 35.60 points, to settle at 3,962 during the week.
On 4 December, the BSE Sensex rose 29.55 points, to 13,874.33, as shares from auto, metal and sugar sectors were bought. The 30-share BSE Sensex gained 63.32 points, to 13,937.65 on 5 December, as buying continued, shares from the metal and IT sector at forefront.
On 6 December, the BSE Sensex settled marginally higher by 11.35 points, to 13,937.65, after witnessing high volatility throughout the day’s trading session. It also surged to an all-time high of 14,035.30 on the same day.
The Sensex rose 23.03 points to 13,972.03 on 7 December, a record closing high amid a mixed trend in the Sensex's constituents. the BSE Sensex plunged 172.54 points, to 13,799.49 on 8 December, tracking weak global markets.
Bharti Airtel lost 0.29% to Rs 631.10. Reports state Vodafone Group is looking to hike stake in the telecom firm. Vodafone holds 10% stake in Bharti Airtel.
Tata Consultancy Services (TCS) lost 1.02% to Rs 1,175. As per reports, the company won a five-year outsourcing contract from Britain's United Biscuits. Reports add that the multi-million-pound deal involves IT support services such as application support, business analysis services and strategic IT programmes for Europe's second-largest biscuit maker.
Tata Steel rose 2.31% to Rs 479. It had signed an agreement with Nippon Yasen Kabushiki Kaisha for an equal shipping joint venture. The JV will cater to both dry and bulk cargo.
Reliance Industries rose 0.38% to Rs 1,265.90. It had struck a 52-week high of Rs 1,350, on 5 December. The company’s hydrotreater plant at Jamnagar refinery, which was partially damaged in a fire on 25 October, had been refurbished and started functioning from 1 December.
NTPC rose 2.02% to Rs 151. 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.
Reliance Communications rose 0.87% to Rs 445.85, amid reports that the company has invited bids for 90-100 million cellular lines, valued at $7-8 billion. It added 1.35 million new subscribers in November (CDMA plus GSM based).
Tata Motors rose 2.19% to Rs 861.50. Tata Motors’ vehicle sales rose 43% in November to 49,061 units compared with the same month a year ago. Sales of commercial vehicles rose 46% to 25,793, while sales of cars rose 48% to 19,475, helped by a surge in sales of its Indica model. Exports rose 9.6% to 3,793 units.
Shares from the sugar sector were in demand on speculation that the exports ban may be lifted shortly. Also, reports that Indonesia will buy as much as 2,00,000 tonnes of sugar by March 2007, to ensure supplies to keep a check on prices and control inflation. Indonesian sugar production is expected to reach 2.3 million tonnes this year, which is 7% lower than an initial target. Bajaj Hindustan (up 7.62% to Rs 253.75), Balrampur Chini Mills (up 9.64% to Rs 89.25), Dhampur Sugar Mills (up 10.46% to Rs 94), Shree Renuka Sugar (up 5.23% to Rs 523) and Sakthi Sugar (up 8.38% to Rs 111.40) surged.
Helicopter operator Global Vectra Helicorp advanced 9.57% to Rs 206.35, boosted by reports that the government proposes to raise FDI limit in helicopter firms and in non-scheduled airline operations from 49% to 74%.
Export house Adani Enterprises surged 9.76% to Rs 236.20, after data showed that Reliance Mutual Fund has purchased 43.3 lakh shares of the company on Wednesday (6 December), 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 37.25% to Rs 133.90, 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.
i-flex solutions surged 21.98% to Rs 2,047, after Oracle Corp raised the open offer price for i-flex to Rs 2,100 per share. Oracle now intends to raise its stake in i-flex to 90% from the earlier plan of raising its holding to 75%, from existing 55%. In September 2006, Oracle had announced an open offer for 20% stake at Rs 1,475 per share.
India's wholesale price index rose 5.30% in the 12 months to 25 November, lower than previous week's annual rise of 5.45% due to a fall in food and energy prices, data showed on Friday. The annual inflation rate was 4.48% during the corresponding week of the previous year.
The European Central Bank raised its key interest rate a quarter of a point to 3.5% on Thursday (7 December), despite strength in the euro which some analysts expect could stunt economic growth and hurt the crucial export sector.