Sensex ends a tad above 14000

The market succumbed to intense selling pressure in late trade when the Sensex slipped below 14,000 level to hit a low of 13,968.38. Sensex settled just above 14,000 mark. It lost 127.92 points or 0.91% to 14,003.03. Earlier today, it opened higher at 14,139.92 and advanced to a high of 14,152.79 shortly.

The S&P CNX Nifty lost 42.15 points or 1.01% to 4,113.05. The Nifty June 2007 futures were at 4,082.90, a discount of 30.10 points compared to the spot closing of 4,113.05.

The market was weak right from the opening bell and kept on declining as trading progressed. There was fresh selling at every small rise. Also, lack of fresh buying played spoilsport. The turnover was low, indicating that the action might have shifted to primary markets.

As per latest data from the stock exchanges, the IPO of DLF was subscribed 1.96 times by end of the third day today, 13 June 2007. The IPO closes on Thursday, 14 June 2007. The IPO would constitute 10.27% of the fully diluted post-issue capital of the company.

The market breadth was weak on BSE, with 1,433 shares declining as compared to 1,119 shares that advanced. 89 remained unchanged.

The BSE Small-Cap Index lost 0.06% to 7,224.27 while the BSE Mid-Cap Index settled 0.31% lower at 6,065.63

The total turnover on BSE amounted to Rs 4189.24 crore while the NSE futures & options segment turnover amounted to Rs 34009.31 crore.

Among the Sensex pack, 25 slipped while the rest gained.

State Bank of India (SBI) lost 3.74% to Rs 1282 on 6.26 lakh shares, and was the top loser among Sensex constituents. The stock slipped on fears of more monetary tightening measures by the Reserve Bank of India, following a stronger-than-expected industrial production numbers for April 2007 announced yesterday, 12 June 2007. Industrial production rose 13.6% per annum in April 2007, higher than street expectations of 11.3% rise. The figure for March 2007 was also raised upwards from 13% to 14.5%.

ICICI Bank lost 0.97% to Rs 910.15, after advancing to a high of Rs 937. ICICI Bank said during trading hours today, 13 June 2007, it had filed offer documents to raise up to Rs 8750 crore in India. In late April 2007, ICICI Bank had announced that it planned to raise equity to the tune of Rs 20000 crore from domestic and overseas markets.

Also, ICICI Bank informed the stock exchanges after market hours on Tuesday, 12 June 2007, that it has received a firm commitment of Rs 2650 crore ($650 million) for a 5.9% stake in the holding company for its insurance and asset management business. The investor names were not disclosed.

The BSE Bankex declined 1.14% at 7,453.52. Other losers from the banking pack were Bank of India (down 3.50% to Rs 182), Oriental Bank of Commerce (down 1.52% to Rs 206.90), Kotak Mahindra Bank (down 2% to Rs 551.50), HDFC Bank (down 0.20% to Rs 1085) and Bank of Baroda (down 1.57% to Rs 248).

Reliance Communications (down 2.86% to Rs 483.50), Hindustan Unilever (down 2.14% to Rs 185.60) and L&T (down 2.07% to Rs 1866.50) edged lower.

Cement major ACC was down 1.23% to Rs 797. It had reported a 19% increase in sales in May 2007, more than three times the pace of growth recorded in the previous month, indicating strong demand for cement from homes and other construction projects.

Pharma major Dr Reddy’s Laboratories (DRL) was the top gainer among Sensex constituents. It surged 2.51% to Rs 627, on 3.37 lakh shares after Credit Suisse raised its rating on the stock to "outperfom" from "neutral".

Tata Steel eased from high of Rs 611.90 and was down 1.93% to Rs 591.45. Anglo-Dutch steelmaker Corus, owned by Tata Steel, on 12 June 2007, attributed the decision to raise UK wire rod prices by at least 7% in the third quarter to rising demand. It said the price increase will apply to deliveries from 2 July 2007. Tata Steel had won a bid battle in January 2007 to take over Corus.

Index heavyweight Reliance Industries (RIL) slipped 1.71% to Rs 1,670.50, on 8.75 lakh shares. RIL is eyeing stakes in refineries in the United States and West Asia to increase its presence overseas. The company has stakes in oil exploration blocks in Yemen and Oman, and is also looking to acquire similar assets in Peru and Colombia, reports indicated.

IT pivotals stayed mixed, after a pause on Tuesday, 12 June 2007, from a stead advance over the past few days. The BSE IT Index lost 0.17% to 4,966.87. Satyam Computers rose 1.22% to Rs 484.30 while TCS (down 1.05% to Rs 1202), Infosys (down 0.35% to Rs 1980) and Wipro (down 1.69% to Rs 530) declined. All these stocks eased from their highs of the day in a weak market. As per reports, Wipro and US based EMC Corp have formed an alliance to focus on information technology infrastructure. The financial details were not available.

Rupee eased against the dollar on Wednesday, 13 June 2007, on buying from importers. In early trade, the rupee was at 40.855/865 per dollar, weaker than the previous close of 40.7475/7575.

Time Technoplast settled at Rs 480.35 on BSE, a premium of 52.50% over the IPO price of Rs 315. The stock debuted at Rs 415 which was also its low for the day. It hit a high of Rs 498. On BSE, 1.33 crore shares were traded in the stock. The IPO had received strong investor response.

Debutante Time Technoplast was the top traded counter on BSE with turnover of Rs 636.30 crore followed by Reliance Industries (RIL) (Rs 148 crore), Nestle India (Rs 103.65 crore), Indiabulls Real Estate (Rs 100.75 crore) and State Bank of India (SBI) (Rs 82 crore).

Time Technoplast, was also the volume topper on BSE with 1.33 crore shares followed by G V Films (81.25 lakh shares), IFCI (66.40 lakh shares), Reliance Natural Resources (61.60 lakh shares) and Dabur (51.62 lakh shares).

Dabur India saw huge volumes of 51.62 lakh shares after 3 block deals of 15.87 lakh each were struck on the counter in opening trades at Rs 101.33 per share on BSE. The stock was up 1.31% to Rs 100.90

Shares of real estate developers were in demand after the IPO of DLF received good response. Unitech (up 0.30% to Rs 491.45), India Bulls Real Estate (up 0.91% to Rs 350.30), and Parsvnath Developers (up 2.12% to Rs 319) gained.

Drug maker Wyeth gained 3.81% to Rs 558.25 after it recommended a dividend of 300%, or Rs 30 per share of Rs 10 face value. Wyeth's net profit galloped 648.6% to Rs 13.25 crore in Q4 March 2007 as against Rs 1.77 crore in Q4 March 2006. Sales rose 345 to Rs 60.27 crore in Q4 March 2007 (Rs 44.98 crore).

Simplex Infrastructures galloped 10% to Rs 367.15 after the construction firm said it had secured two overseas orders worth Rs 1007 crore.

Rolta India rose 1.78% to Rs 417.25 on receiving shareholders' nod for hike in the limit on FII investment in the company from 40% to 75%. The FII investment would exclude non-resident Indian and overseas corporate body investments. Rolta also received approval to issue any equity linked foreign/ Indian securities such as foreign currency convertible bonds (FCCBs), American depository receipts (ADRs), global depository receipts (GDRs), or equity shares through qualified institutional placements (QIPs) for an amount not exceeding $250 million or equivalent Indian rupees.

Lanco Infratech gained 3.54% to Rs 169.50 on follow-up buying. On 11 June 2007, Lanco Infratech’s group firm, Lanco Horizon Properties had entered into a joint development agreement for developing an integrated township in Chennai. The township would consist of residential towers, shopping space and service apartments. The project is estimated to cost Rs 600 crore and would be completed within 36 months from the date of plan approvals.

GTL advanced 3.48% to Rs 222.95. As per recent reports, France Telecom is set to acquire GTL's IT business for about Rs 250-300 crore. GTL had recently put its IT division on the block following a decision to focus on its core network services business

MICO gained 3.44% to Rs 4493.95. On 27 April 2007, MICO's parent Robert Bosch GmbH had announced an open offer to the shareholders of MICO to buy over 64 lakh shares in the company constituting 20% of the paid-up equity share capital at Rs 4,000 per share.

Sical Logistics jumped 5% to Rs 258.30 on deciding to raise up to Rs 103 crore of equity through private placement. Sical Logistics announced on Tuesday, 12 June 2007 after the market hours that its board had approved raising up to Rs 103 crore through issue of 20.50 lakh equity shares each to Credit Suisse Singapore and Macquarie Bank.

Tanla Solutions declined 1.36% to Rs 383 after announcing Rs 20-crore infusion in Tanla Mobile Asia Pacific, Singapore. The announcement after the market hours on Tuesday, 12 June 2007, of its Rs 20-crore investment will make Tanla Mobile Asia Pacific, Singapore, a wholly owned subsidiary of TSL.

Deccan Aviation gained 1.88% to Rs 133 after Vijay Mallya, head of UB Group which acquired 26% stake in Deccan Aviation, said the low cost carrier may raise air fares by about Rs 500 to stem losses. He also said that airfares should reflect exact costs, including aviation turbine fuel (ATF) and congestion charges. Air Deccan can cover these costs and still remain competitive.

Praj Industries was down 1.12% to Rs 521. The company has finalised an agreement to form a joint venture with Aker Kvaerner, after market hours on Tuesday, 12 June 2007 to form a company in Europe that will be called BioCnergy Europe. Praj will have 60% stake in BioCnergy, while Aker Kvaerner will have 40% of the shareholding.

Most Asian and European indices edged lower today, 13 June 2007, mirroring the overnight fall in US markets, with export-related shares such as Toyota Motor Corp. retreating on concerns over global growth, while Sumitomo Metal Mining and BHP Billiton lost ground on weaker metals prices. Japan's Nikkei slipped 0.16%, while Hong Kong's Hang Seng index slumped 0.28%.

South Korea's Seoul Composite (down 0.46%), Singapore's Straits Times (down 0.29%) also declined.

However, China’s Shanghai Composite (up 2.56% to 4,176.48) and Belgium’s BEL-20 (up 0.05% to 4,551.09) advanced.

US stocks plunged on Tuesday, 12 June 2007, as investors grappled with a seemingly relentless rise in bond yields. The Dow Jones industrial average slipped 129.95 points, or 0.97%, to 13,295.01. The blue chip index is now 381 points, or 2.8%, below its all time closing high of 13,676.32, reached on 4 June 2007.

The broader stock indices also declined. The Standard & Poor's 500 index fell 16.12 points, or 1.07%, to 1,493.00, while the Nasdaq composite index dropped 22.38 points, or 0.87%, to 2,549.77.

Crude oil was little changed in New York after fall in gasoline yesterday on speculation US fuel stockpiles rose a sixth week as refiners increased output. Crude oil for July delivery was $65.29 a barrel, down 6 cents, in after-hours electronic trading on the New York Mercantile Exchange in Singapore.

As per latest data, FIIs were net buyers in equities to the tune of Rs 545.30 crore, while mutual funds also sold equity worth Rs 339.80 crore on 12 June 2007

Trade Minister Kamal Nath said on Wednesday that India is confident of meeting its 2007/08 export target of $160 billion, despite the rise in the rupee. India's export target of $160 billion for the fiscal 2007/08 year, which began in April, compares with exports of $125 billion in 2006/07.