Hat trick of gains for Sensex

The market settled with modest gains as buying continued in index pivotals. It rose for the third straight trading session today. All the sectoral indices settled with gains, except the BSE IT index. The BSE Mid-Cap index settled at all time high.

Nevertheless, intense volatility was hallmark of today’s session. The market was firm till the early afternoon. It saw sharp swings in the second half of the trading session. The BSE 30-share Sensex struck intra-day low as well as intra-day high of the day during last one hour or so of trade.

Volatility is expected to stay on over the next few days ahead of the expiry of the June 2007 derivatives contracts next Thursday, 28 June 2007.

Shares from the capital goods sector were in demand today.

The Sensex rose 87.29 points or 0.61% at 14,499.24. It opened higher at 14,415.56 and slipped to touch a low of 14,406.67 at 14:21 IST, which was a fall of 5.28 points for the day. However, it recovered sharply from that low to strike a two-week high of 14,526.44 by 15:16 IST, which was a gain of 114.49 points for the day.

From 14,080.14 on 18 June 2007, the Sensex gained 419 points three trading sessions at current 14,499.24.

The S&P CNX Nifty gained 18.75 points or 0.44% at 4,267.40. The Nifty June 2007 futures settled at 4256, a discount of 11.40 points as compared to spot closing.

The turnover on BSE crossed Rs 5000 crore mark for the second straight day today. Turnover surged to Rs 5,277 crore today compared to Rs 5,085 crore on Wednesday, 20 June 2007. It surged in the last one hour of trade today.

NSE's futures & options segment clocked a turnover of Rs 41682.48 crore compared to Wednesday's Rs 41,733.11 crore

The market breadth was positive on BSE with 1,443 shares advancing as compared to 1,156 that declined, while 92 remained unchanged.

The BSE Mid-Cap index rose 34 points or 0.53% to 6,373.76 after striking all time high of 6,397.15. Its previous all time high was 6341.45 hit on 20 June 2007.

The BSE Small-Cap index advanced 76 points or 1.02% to 7,496.48.

Among the Sensex pack, 16 gained, while the remaining were trading in the negative territory.

Reliance Energy spurted 4.67% to Rs 563.10, on 2.99 lakh shares. It was the top gainer from the Sensex pack. The company was one of the five qualified bidders who had submitted bids for the 4,000-mega watt Sasan ultra mega power project.

The BSE capital goods index soared to an all-time high of 11,835.98, led by heavyweights L&T and Bhel. It settled 2.06% higher at 11,736.76, and was the top performer among the sectoral indices on BSE.

Engineering and construction major L&T was up 4.24% to Rs 2,114 on 6.89 lakh shares. L&T spurted to an all-time high of Rs 2,149 today. L&T said during trading hours today, 21 June 2007, it has signed a $95-million shipbuilding contract with Netherland's BigLift.

On Tuesday, 19 June 2007, L&T and Eastern Contracting LLC (Eastern) had jointly bagged a Rs 610-crore order from Victory Heights Golf Residential and Development, to build a residential property in Dubai Sports City. The project is expected to be completed in 660 days.

State-run engineering major Bharat Heavy Electrical (Bhel) spurted 3.86% to Rs 1,484.90, on 2.15 lakh shares. It rose to an all-time high of Rs 1,491 today. Bhel had bagged a Rs 139-crore contract from NTPC for supplying and commissioning of 27 transformers on 19 June 2007.

State Bank of India (SBI) saw high volatility in the day. It surged 2.93% to Rs 1,467 after striking a low of Rs 1,400 earlier during the day. SBI is set to raise $225 million from the overseas market this year by issuing perpetual bonds. The overseas issue opened on Monday, 18 June 2007, and the bank is expected to price the bonds this week. It plans to raise a total of Rs 15,000 crore this year in the form of equity (tier-I) and debt (tier-II).

The BSE Bankex was up 0.48% at 7,827.90. Other shares from the banking pack were mixed. Canara Bank (down 5.11% to Rs 261), Bank of Baroda (down 1.61% to Rs 266), and Union Bank (down 3.50% to Rs 128.35), slipped while Bank of India (up 2.42% to Rs 218), Federal Bank (up 1.67% to Rs 298), Kotak Mahindra Bank (up 4.96% to Rs 633), gained.

Aluminium and copper major Hindalco Industries advanced 2.74% to Rs 166.85 on high volumes of 23.48 lakh shares. A block deal of 5 lakh shares was struck on the counter on BSE at Rs 163 per share by 12:29 IST. There is market speculation that promoters are hiking their stake from open market.

Housing finance major HDFC moved up 2.20% to Rs 1,850. HDFC’s chairman Deepak Parekh had recently indicated that home loans may get a little more expensive after the monsoon. A possible tightening by the central bank could push up rates.

Pharma major Ranbaxy Laboratories rose 1.32% to Rs 356.50. The drug maker said it had received an approval to manufacture and sell Amlodipine Besylate in the US. The company made the announcement after market hours on Wednesday, 20 June 2007. Amlodipine Besylate tablets are indicated for the treatment of hypertension

Index heavyweight Reliance Industries (RIL) was down 0.36% to Rs 1,726.90, on 5.63 lakh shares. As per reports, global oil giants including Shell, Exxon and Chevron are eying a stake in Reliance Industries’ overseas oil & gas assets. RIL recently hived off these assets into a separate company, Reliance Exploration and Production DMCC.

Tata Motors was up 0.43% to Rs 689.85 after the vehicle maker said it would raise Rs 1836 crore in the international markets. The company made the announcement after market hours on Wednesday, 20 June 2007. The funds would be utilised to meet capital and product development expenses in projects involving the growth of both its commercial vehicle and passenger car business units apart from other unspecified corporate purposes.

IT stocks slipped on lack of fresh buying. The BSE IT Index was down marginally by 0.01% to 4,886.85. It was the only sectoral index closing in the red. Satyam Computers lost 1.27% to Rs 465.80 on 3.04 lakh shares. It was the top loser from the Sensex pack.

Other IT pivotals did not see much movement. Infosys (up 0.05% to Rs 1955), Wipro (down up 0.91% to Rs 526.50) edged higher, while TCS slipped 0.05% to Rs 1145.25.

India's rupee slipped slightly today, 21 June 2007, on speculation refiners will use the currency's recent gains to buy dollars to reduce costs arising from higher crude oil prices. The rupee fell to 40.76 per dollar from 40.75 on 20 June 2007. It has gained 8% this year. A stronger rupee impacts the profit margins of IT firms which derive a lion's share of their revenue from exports

Auto counters dropped. Hero Honda Motors lost 1.13% to Rs 661.15, while Maruti Udyog declined 1.12% to Rs 760. The BSE Auto Index rose 0.7% to 4,796.07.

The BSE Metal Index gained 0.9% to 10,820.06. Sterlite Industries India lost 2.23% to Rs 591.10. Its American depository shares had made a strong debut on the New York Stock Exchange on Tuesday, 19 June 2007, ending 9.4% higher than the offer price of $13.44.

Hindustan Zinc galloped 4.21% Rs 748.55. The stocks surged for the second straight day on reports that government will offload residual 29.5% stake in the zinc major to reap Rs 8381 crore from stake sale.

Tata Steel lost 0.35% to Rs 605.95 whereas Sail rose marginally by 0.04% to Rs 135.10.

State-run oil exploration major Oil & Natural Gas Corporation (ONGC) was down 0.51% to Rs 912. As per reports, the Directorate General of Hydrocarbons has sharply cut the estimates of ONGC's gas discovery in a block in Krishna-Godavari basin. This may come has a setback to ONGC which was betting heavily on discovery in this particular block for its future growth.

ICICI Bank was down 0.29% to Rs 945.10. The follow-on public offer (FPO) of ICICI Bank was subscribed 5.13 times by 16:00 IST on Thursday, 21 June 2007. The issue closes on Friday, 22 June 2007.

Retail bidders would be allotted shares at a discount of Rs 50 per share to the issue price determined by the book-building process, in the ICICI Bank FPO. The issue size is Rs 8,750 crore. In addition, there is a green-shoe option under which the bank may allocate additional equity shares up to Rs 1,312.5 crore. The issue including the green-shoe option aggregates Rs 10,062.5 crore.

Banco Products India soared 10% to Rs 297.90 after saying its board would meet on 28 June 2007 to consider recommendation of bonus issue. The company made the announcement after market hours on Wednesday, 20 June 2007. The company has latest equity share capital of Rs 6.76 crore while its latest book value is Rs 136.61 per share. It has total reserves of Rs 85.59 crore. The company had last declared 1:1 bonus in 1999.

Gillette India was down 0.70% to Rs 907 after striking a high of Rs 950, in early trade. The shaving products maker said after market hours on Wednesday, 20 June 2007, it sold a piece of property at Gurgaon, India, for Rs 72.75 crore. The company had received the final payment on 19 June 2007. Further, the company also stated that, the book value of the said immovable property was Rs 30.54 crore.

Pipe maker PSL had jumped 10.61% to Rs 304 on reports that it had bagged Rs 380-crore orders from Sharjah and Malaysia.

Hindustan Petroleum Corporation (HPCL) surged 4.54% to Rs 274.90 after the Union Cabinet on Thursday, 21 June 2007, allowed Lakshmi Mittal to pick up 49% stake in HPCL's Bhatinda, Punjab, refinery. Mittal Investments plans to acquire the stake in the 9 million tonne per year refinery for Rs 3365 crore through its 100% arm, Mittal Energy Investments Pte, incorporated in Singapore.

Britannia Industries rose 3.16% to Rs 1518 on reports of possible settlement of dispute between Groupe Danone and the Wadia group. The stock touched a high of Rs 1630 today. As per the reports today the long drawn Danone-Wadia disaga may soon draw to an amicable close. The French food company Groupe Danone is considering a peace formula that comprises a voluntary exit from Britannia Industries and dissolution of the Wadia-BSN joint venture. Wadia-BSN, was set up by the Wadia group and Danone in 1997 to jointly explore business opportunities outside Britannia.

Jetking Infotrain slumped 4.93% to Rs 567.45, even as its board announced a liberal 1:1 bonus issue in a meeting held on Wednesday, 20 June 2007. This announcement was made before market hours on 21 June 2007.

Godfrey Phillips India lost 0.60% to Rs 1463 after its net profit surged 472.98% to Rs 18.45 crore in Q4 March 2007 as against Rs 3.22 crore in Q4 March 2006. Sales were up 38.04% to Rs 232.51 crore ( Rs 168.44 crore). Net profit jumped 46.52% to Rs 88.10 crore in the year ended March 2007 as against Rs 60.13 crore in FY 2006. Sales moved up 15.29% to Rs 772.54 crore (Rs 670.11 crore). The results were announced after the market hours on Wednesday, 20 June 2007.

Hindustan Organic Chemicals was locked at 5% upper limit of Rs 43.85 on reporting a whopping 16,745% rise in net profit in Q4 March 2007. HOCL’s net profit surged 16,745% to Rs 33.69 crore in Q4 March 2007 as against Rs 0.20 crore in Q4 March 2006. Sales rose 34.44% to Rs 158.73 crore in Q4 March 2007 as against Rs 118.07 crore in Q4 March 2006. The company reported a net profit of Rs 17.04 crore in the year ended March 2007 as against net loss of Rs 56.61 crore in FY 2006. Sales were up 31.06% to Rs 506.07 crore in FY 2007 as against Rs 386.14 crore in FY 2006. The results were announced after market hours on Wednesday, 20 June 2007.

Most of the Asian markets settled with gains. Hong Kong's Hang Seng (up 1.25% at 21,954.67), Japan's Nikkei (up 0.16% at 18,240.30), Taiwan's Taiwan Weighted (up 1.10% at 8,851.99) and South Korea's Seoul Composite (up 0.59% at 1,794.24) all settled higher.

Shanghai Composite rose 1.18% to 4,230.82. The Shanghai Composite Index had hit a record high of 4,335.96 on 29 May 2007.

In contrast, all the European markets were trading weak.

A surge in treasury yields rattled Wall Street on Wednesday 20 June 2007, forcing stocks to give up early gains. The Dow Jones slipped 146 points, or 1.07%, to 13,489.42, after bobbing in and out of positive and negative territory earlier in the day. Broader stock indicators also tumbled. The Standard & Poor's 500 index declined 20.86 points, or 1.36%, to 1,512.84, and the Nasdaq Composite index fell 26.80 points, or 1.02%, to 2,599.96.

Oil prices nudged higher on Thursday, 21 June 2007, after declining 2% on Wednesday, 20 June 2007, on data showing a surge in US crude stocks, with dealers refocusing on a general strike in Nigeria and unusually low US refinery operations. London benchmark Brent crude rose 27 cents to $70.69 a barrel by. Prices had touched a 10-month high of $72.25 on Monday, 18 June 2007.