Nifty strikes lifetime closing high above 4,300; Sensex at second best close

The market surged today on renewed buying in index pivotals on smooth rollover of positions from the June 2007 series to the July 2007 series in the derivatives segment, and on build-up of fresh positions. The June 2007 derivatives contracts expired on Thursday, 28 June 2007. Data showing a further fall in inflation aided the rally.

Shares from banking, sugar, cement and capital goods sector rose while some profit booking was seen in metal stocks. Among sectoral indices, Bankex, BSE Mid-Cap, BSE Consumer Durables, BSE Capital Goods, all struck lifetime high.

The BSE 30-share Sensex vaulted 145.94 points or 1.01% at 14,650.51. This is the second highest closing for the Sensex. The barometer index had struck record closing high of 14,652.09 on 8 February 2007.

Sensex opened higher at 14,589.52, and surged to strike a high of 14,663.25 at 15:07 IST as buying inetensified towards the close of the trading session. The benchmark hit a low of 14,574.45, at 10:20 IST. The Sensex oscillated in a range of 89 points for the day. A bout of volatility was witnessed in mid-afternoon trade.

The Sensex is just about 73 points away from its all-time high of 14,723.88, which it had struck on 9 February 2007.

The S&P CNX Nifty advanced 36.30 points or 0.85% at 4,318.30. This an all time closing high for the Nifty. It had struck an all time high of 4,362.95 on 4 June 2007. The July 2007 futures settled at 4290.50, a discount of 27.80 points compared to spot closing.

The NSE F&O turnover slumped to Rs 35,463.65 crore as compared to Rs 60,499.60 crore on Thursday, 28 June 2007. The turnover had surged on Thursday on account June 2007 futures expiry

India's wholesale price index rose 4.03% in the 12 months to 16 June 2007, lower than the previous week's increase of 4.28% due to a decline in food and manufactured product prices, government data released today, 29 June 2007, afternoon showed. The annual inflation rate was the lowest since the end of April 2006.

As per market data, Nifty futures witnessed a rollover of 65% to 70% whereas stock futures saw rollover of around 70% to 73%, to July 2007 series from June 2007 series.

The total turnover on BSE amounted to Rs 4817 crore as compared to Rs 4848 crore on Thursday, 28 June 2007.

The market breadth was strong on BSE with 1,496 shares advancing as compared to 1141 that declined. 80 remained unchanged.

The BSE Mid-Cap index struck an all time high of 6,527.48, as buying continued in small and mid-cap stocks. The BSE Mid-Cap index settled 69.03 points or 1.07% higher at 6,527.03.

The BSE Small-Cap Index rose up 68.30 points or 0.89% to 7,730.40.

Among the Sensex pack, 23 advanced while the rest declined.

Reliance Energy (REL) surged 5.63% to Rs 613.25, on 6.81 lakh shares, and it was the top gainer from the Sensex pack. REL’s wholly owned subsidiary Rosa Power Supply, on 26 June 2007 tied up long-term loans of around Rs 2,000 crore for the first stage of its 600 meg watt (MW) power project.

Housing Development Finance Corporation (HDFC) jumped 3.27% to Rs 2022.50, after it received Rs 445 crore for its stake sale in BPO firm Intelenet to Blackstone, which has resulted in a total capital gain of Rs 381 crore on its BPO venture. The stock surged to an all time high of Rs 2039, in intra-day trade.

At its 30th annual general meeting (AGM) held on Wednesday, 27 June 2007, HDFC chairman Deepak Parekh said interest rates had peaked and he expected them to remain stable for some time.

State-run banking major State Bank of India (SBI) vaulted 3.89% to Rs 1527.50, after striking an all time high of Rs 1531 in intra-day trade. The stock is buzzing on reports that it is planning to launch a private equity fund with a corpus of $1 billion (Rs 4100 crore). SBI also informed BSE today, that the entire shareholding of Reserve Bank of India (RBI) aggregating 31.43 crore equity shares of Rs 10 each in the bank was transferred to the Central Government on 29 June 2007.

Banking shares rallied today after data showing fall in inflation. The BSE Bankex surged 2.9% at 8,009.94, after striking an all time high of 8,019.27. It was the top gainer from the sectoral indices on BSE. HDFC Bank (up 4.39% to Rs 1140.25), ICICI Bank (up 1.18% to Rs 954), Canara Bank (up 4.11% to Rs 271), Bank of Baroda (up 4.35% to Rs 270.95), Union Bank (up 2.72% to Rs 132), Bank of India (up 3.91% to Rs 234), Federal Bank (up 2.74% to Rs 302), and UTI Bank (up 4.26% to Rs 605) gained.

Bank shares were also boosted by reports that the Reserve bank of India has allowed banks to undertake pension fund management business through their subsidiaries. Only profitable and credible banks with have net worth of not less than Rs 500 crore, capital adequacy ratio of more than 11% and return on assets of not less than 0.6% to undertake the business, can enter into the business of pension fund management. Besides this, the banks venturing into pension fund management need to ensure that they have net non-performing assets of less than 3%.

Bhel (up 3.50% to Rs 1541) and L&T (up 1.49% to Rs 2186), advanced from the capital goods pack. The BSE Capital Goods Index was up 1.9% at 12,299.36. It struck an all time high of 12,329.20.

Cement shares rallied for the second straight day as buying continued after the Finance Minister P Chidambaram told a television news channel, after market hours, on Wednesday, 27 June 2007, that there was no freeze on cement price and the government has not tried to control cement prices. He also said prices had gone up by a few rupees in south India.

Cement major ACC (up 3.58% to Rs 931.05), and Grasim (up 0.32% to Rs 2632) advanced.

Pharma shares, Cipla (up 3.92% to Rs 211), Dr Reddy’s Laboratories (up 0.10% to Rs 655.45), and Ranbaxy Laboratories (up 2.17% to Rs 355.50), edged higher.

Aluminum and copper major Hindalco Industries slipped throughout the day, as selling continued. It lost 5.25% at Rs 160.10, on 13.74 lakh shares. It was the top loser among the Sensex constituents.

Other shares from the metal pack, Nalco (down 0.42% to Rs 259), Sail (down 0.34% to Rs 131), declined while Tata Steel (up 0.83% to Rs 598), and JSW Steel (up 1.32% to Rs 608.10), edged higher. The BSE Metal Index closed at 10,605, down 0.28%, and was the only loser among the sectoral indices on BSE.

Auto major Maruti Udyog lost 1.05% to Rs 742 while telecom services provider Bharti Airtel slipped 0.98% to Rs 834.50.

Index heavyweight Reliance Industries was up 0.46% to Rs 1700, on 7.01 lakh shares. It moved in a range of Rs 1689.05 –1711.50

Infosys Technologies rose 0.22% to Rs 1930.10 on rumours that it is mulling a bid to buy Europe’s largest IT services giant, Capgemini. Both Infosys Technologies and Capgemini have denied the takeover rumours, though the Capgemini stock surged on Thursday, 28 June 2007, boosted by this rumour. Infosys Technologies will announce its first quarter June 2007 results on 11 July 2007.

Satyam Computers ended flat at Rs 468.30 while Wipro (up 0.36% to Rs 517) and TCS (up 1.43% to Rs 1153) edged higher. The BSE IT Index settled with agin of 0.60% to 4,870.73.

The BSE Consumer Durables index also struck all time high of 4,280.52, before settling 3.39 points higher at 4,250.65. Lloyd Electric (up 2.57% to Rs 181.35), and Rajesh Exports (up 0.62% to Rs 532.90) rose.

Shares from the sugar pack rallied for the second straight day, as buying continued after the Finance Minister told a TV channel on Wednesday, 27 June 2007, that more sops will be given to the sugar sector if required. Bajaj Hindusthan (up 8.39% to Rs 169.30), Sakthi Sugars (up 10% to Rs 88.20), Balrampur Chini Mills (up 13.27% to Rs 76.40) and Shree Renuka Sugars (up 9.26% to Rs 651) surged.

Wendt India was up 5% to Rs 797.75 after the machine tool accessories maker said Winterthur Technologies AG has indirectly acquired 40.02% of the company from parent, Wendt GmbH Germany. The company made the announcement before trading hours today, 29 June 2007.

Indian state-run lender IDBI rose 5.64% to Rs 119, after it said on Thursday, 28 June 2007, after market hours that it had sold 2% stake in the National Stock Exchange of India (NSE) to MS Strategic (Mauritius) for $50 million, after receiving the necessary approvals.

Sun TV Network jumped 4.69% to Rs 1,599 on reporting a 310.9% rise in net profit in Q4 March 2007 to Rs 118.86 crore as compared to Rs 28.93 crore in Q4 March 2006. Sales spurted 382.2% to Rs379.04 crore (Rs 78.60 crore). Net profit jumped 106.42% to Rs 268.82 crore in the year ended March 2007 (FY 2007) as against Rs 130.23 crore in FY 2006. Sales advanced 110.29% to Rs 676.95 crore (Rs 321.91 crore). The results were announced after market hours on Thursday 28 June 2007.

Along with the Q4 results, Sun TV Network also informed stock exchanges that the register of members & share transfer books will remain closed from 28 July 2007 to 6 August 2007 (both days inclusive) for the purpose of payment of final dividend, stock split, bonus issue.

GMR Industries was locked at the 5% upper circuit of Rs 170.35 at 14:05 IST, following the company's decision to set up an integrated sugar complex with a capacity of 2500 tonnes per day (tcd), expandable to 3500 tcd, in Srikakulam district, Andhra Pradesh. The company made the announcement during trading hours today, 29 June 2007.

ICI (India) declined 3.13% to Rs 531 on turning ex-dividend, for a huge dividend of Rs 27 per share. The company, on 16 May 2007 had announced dividend of Rs 27 per share, which included a one-off special dividend of Rs 20 a share.

GMR Infrastructure rose 5.59% to Rs 747.90, ahead of its Q4 March 2007 and FY 2007 results which are scheduled tomorrow, 30 June 2007.

LIC Housing Finance rose 5.95% to Rs 206.40 on reports that the company is evaluating plans to float its own venture fund focusing on the realty sector. LIC Housing has already invested Rs 50 crore in Kotak Realty Fund and Rs 10 crore in CIG Realty Fund. The proposed new fund would focus on financing projects such as shopping malls and special economic zones.

TVS Motor Company plunged 5.50% to Rs 61 after the two-wheeler maker reported 69% fall in net profit in Q4 March 2007 to Rs 9.05 crore as against Rs 29.09 crore during the previous quarter ended March 2006. Sales moved up 9.60% to Rs 919.88 crore in Q4 March 2007 (Rs 839.27 crore). The net profit dropped 43.08% to Rs 66.60 crore in the year ended March 2007 as against Rs 117.00 crore during the year ended March 2006. Sales jumped 19.17% to Rs 3854.96 crore in FY 2007 (Rs 3234.96 crore). The company declared the Q4 results after market hours yesterday, 28 June 2007.

Kesoram Industries rose 4.34% to Rs 454.40 on media reports that the diversified firm plans to spend Rs 1200 crore in FY 2008 to set up tyre and cement plants.

Suzlon Energy gained 0.76% to Rs 1489. Suzlon Energy announced today 29 June 2007, during market hours said that Suzlon Wind Energy Corporation, the USA, the step-down subsidiary of the company has extended its contract with PPM Energy of Portland, Oregon, USA to add 300 mega watt (MW). The original agreement calls for delivery of 300 MW of turbine capacity in 2008 and 100 MW of capacity in 2009, but now has been extended to include an additional 300 MW in 2009 for a total of 700 MW over two years.

Banco Products (India) slipped 1.80% to Rs 319.50 after the company recommended issue of bonus shares in the ratio of one equity share for every one share held. The announcement was made after market hours on Thursday, 28 June 2007.

Asian stocks were mixed today, 29 June 2007, after the US Federal Reserve left US interest rates unchanged. The yen weakened against the dollar. Japan's Nikkei surged 1.15% at 18,138.36 and Straits Times rose 0.28% at 3,548.20. However, Taiwan's Taiwan Weighted (down 0.11% at 8,883.21), Seoul Composite (down 0.47% at 1,743.60) and Hong Kong's Hang Seng (down 0.75% to 21,772.73) slipped.

China’s Shanghai Composite slumped 2.39% to 3,820.70

Most of the European markets were trading weak.

US stocks finished flat on Friday, 29 June 2007, after the Federal Reserve said the economy appeared to be growing at a moderate pace. The Fed, however, repeated its worries about inflation. The Dow Jones industrial average lost 5.45 points, or 0.04%, to 13,422.28. Broader stock indicators finished mixed. The S&P 500 index slipped 0.63 points, or 0.04%, to 1,505.71, and the Nasdaq Composite rose 3.02 points, or 0.12%, to 2,608.37.

Oil held steady around $70 for the third session on Friday, 29 June 2007 as the market remained focused on falling US gasoline inventories and a decline in crude stocks in a key delivery point in the world's largest consumer. US crude rose 5 cents to $69.62 a barrel