The first trading week of the New Year began on a positive note. However, after beginning the year with a bang, the market cooled off later.
For the week ended 5 January 2007, the barometer index BSE Sensex gained 73.61 points or 0.53% to settle at 13,860.52. The S&P CNX Nifty gained 17 points (0.42%) for the week to settle at 3983.40.
Small-cap and mid-cap stocks outperformed the market. BSE Small-Cap Index rose 299.23 points or 4.3% to settle at 7,191.55. BSE Mid-Cap Index gained 131.49 points or 2.26% to settle at 5,936.67.
The markets entered the year 2007 on a positive note. On Tuesday (2 January), the first day of trading this year, the Sensex settled at 13942.24 gaining a good 155.33 points. IT and auto stocks played anchor on the day in pulling up the Sensex. The IT stocks gained in anticipation of good Q3 results while the autos found increased buying interest on the back of favorable December month sales volumes that were announced on the day.
On Wednesday, the start was not pronouncedly bullish but the markets recovered in mid afternoon trading. During intra day trading, the Sensex had marginally crossed its all time high level of 14035.30. The Sensex closed the day 72.68 points higher at 14024.49.
Thursday was a day of volatility. However the volatility was not as strong as witnessed in sessions a fortnight back. The Sensex swung intra day 210 points. It opened strong on reports of the center and the state having agreed to phase out Central Sales Tax (CST) over the next 4 years. It touched an all time high of 14060.35. Then the correction came in with selling pressure on FMCG, IT and metal stocks resulting in the Sensex closing at 13871.71, which was 143.21 points below its previous day close.
The markets were plainly flat on Friday. Sensex closed marginally lower by 11.19 points at 13860.52. The Nifty closed lower by 5.40 points to settle at 3983.40.
Index heavy weight Reliance Industries gained 1.44% for the week to Rs 1288.60.
Infosys gained 1.53% for the week at Rs 2274.80. Infosys would be coming out with its Q3 numbers on 11th January.
Banking major ICICI Bank gained 2.25% for the week and settled at Rs.910.40. As per reports, its offshore dollar-denominated debt offering had received a strong response.
Satyam Computer firmed up. Apart from the anticipated favourable Q3 results, there are also rumours in the market that Anil Ambani is in talks with company chairman Ramalinga Raju for a stake in the company. The stock gained 3.63% for the week to close at Rs 501.50. Satyam announces Q3 results on 19 January 2007.
Ranbaxy rose 5.5% for the week to Rs 413.45. The company’s alliance with Ipca Laboratories received USFDA approval to sell atenolol tablets in the United States. Atenolol is indicated in the management of hypertension. Ranbaxy settled at Rs 413.45 to close the week.
Allcargo Global Logistics was a major gainer among side counters. It acquired Hindustan Cargo, a subsidiary of travel and forex major Thomas Cook India. Hindustan Cargo is predominantly an airfreight and logistics service provider. The stock surged by Rs.221.90 or 20.89% on the back of the development and closed the week at 1284.10.
Air Deccan grew about 5% during the week on news that it had managed to post nominal profits in the October – December quarter.
Indian real estate developer DLF has filed a prospectus for an initial public offering (IPO) after pulling a planned issue last year. As per reports, the sale of 10.2% of the company could raise more than $2 billion. This offer is said to India's biggest ever-public issue.
Commodity prices continued to correct during last week. Copper fell sharply to touch $5700 per tonne levels. The metal saw its 8-month low price being hit last week. Sterlite and Hindalco, both having copper in its product portfolio, did not lose much and closed the week more or less flat. Hindalco lost Rs.3 over the week and closed at 171.10. Sterlite lost a meager Rs.0.10 (-0.02%) over its previous week’s close and settled at Rs 543.30.
On Friday, Pyramid Saimira Theatre settled at Rs 158.20 on BSE on high volume of 1.69 crore shares, compared to IPO price of Rs 100. The stock debuted at Rs 135. It hit a high of Rs 163.85 and low of Rs 125. The company had priced its IPO at the higher end of the Rs 88 to Rs 100 price band.
On the same day, Tanla Solutions finished at upper circuit of Rs 379.80 on BSE, compared to IPO price of Rs 265. 32.63 lakh shares changed hands in the counter on BSE on the day of its debut. Tanla Solutions had priced its IPO at the upper end of the Rs 230 to Rs 265 price band.
FIIs were net buyers to the tune of Rs.3892.90 crore for January 2007 till 4 January 2007. This included FII subscription to the mega IPO of Cairn India. FII allotment in the Cairn India IPO was to the tune of Rs 3030 crore.
Mutual Funds were net buyers to the tune of Rs 164 crore by the first three trading sessions of the New Year.