Sensex snaps three-day winning streak

The benchmark index, BSE Sensex took breather after three-day of rally, on profit booking. However value buying at lower levels cushioned any sharp fall. Global markets played spoilsport today.

Volatility was the hallmark of the day, with the Sensex swinging sharply. It moved between positive and negative zone. The release of inflation data, showing lower wholesale price rise, failed to calm the market. The market is expected to stay volatile over the next few days ahead of the expiry of the June 2007 derivatives contracts next Thursday, 28 June 2007.

The 30-shares BSE Sensex lost 31.88 points or 0.22% at 14,467.36. It opened higher at 14,508.63 and advanced to strike a high of 14,560.32 at 11:49 IST, which was a gain of 61.08 points for the day. From here, the index slipped to a low of 14,441.76 by 15:27 IST, a fall of 57.48 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, on 21 June 2007.

The S&P CNX Nifty settled with loss of 15.35 points or 0.36% at 4,252.05. The Nifty June 2007 futures settled at 12.55 point discount to spot closing at 4239.50

The market breadth was almost even. On BSE 1,306 shares advanced as compared to 1,301 that declined, while 101 remained unchanged.

The BSE Mid-Cap declined marginally by 0.06 points to 6,373.70 after striking an all time high of 6421.63, in intra-day trade today

The BSE Small-Cap index rose 16.64 points or 0.22% at 7,513.12.

Meanwhile, India's wholesale price index rose 4.28% in the 12 months to 9 June 2007, lower than the previous week's increase of 4.80%, due to a decline in food prices, government data released by noon today showed.

The turnover surged sharply in the past hour of trade on BSE to Rs 5302 crore compared to Rs 3,495 crore at 14:30 IST. The turnover crossed Rs 5,000 crore mark for the third straight day. The NSE F&O turnover stood at Rs 37,941.31crore.

Among the Sensex pack, 20 declined while the rest advanced.

Reliance Energy (REL) galloped 6% to Rs 594.10 on 11.04 lakh shares. It had surged to a high of Rs 597.40 in intra-day trade. It was the top gainer from the Sensex pack. The company was one of the five qualified bidders to have submitted bids for the 4,000-mega watt Sasan ultra mega power project.

The Lanco Infratech-Globeleq Singapore consortium had won the bid for the Sasan project after outbidding eight companies by quoting the lowest tariff of Rs 1.19 per unit. However, the project became controversial after Prince Stone Investments, the Mauritius-based holding company of Lanco, and Jindal Steel & Power together acquired Globeleq Singapore in February 2007.

The REL stock was further boosted by the latest Bombay High Court order which raised hopes of gas supplies from Reliance Industries (RIL) to its proposed power project in northern India.

NTPC,too, gained 1.63% to Rs 152.55, boosted by the Bombay High Court’s decision, which came after market hours yesterday, 21 June 2007, that RIL cannot sell the gas to be produced from one of its prime blocks in the Krishna-Godavari basin to any third party other than Anil Ambani’s Reliance Natural Resourses (RNRL) and NTPC.

Housing finance major HDFC moved up 1.61% to Rs 1,879. 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.

Aluminium and copper major Hindalco Industries advanced 1.89% to Rs 170, on volumes of 14.31 lakh shares. There is market speculation that promoters are hiking their stake from the open market.

However, the BSE metal index lost 75.08 points or 0.69% at 10,744.98. Hindustan Zinc (down 3.47% to Rs 724), Sterlite Industries (down 2.63% to Rs 582), Tata Steel (down 1.54% to Rs 599), and Maharashtra Seamless (down 1.58% to Rs 634.50), all edged lower.

ICICI Bank saw high volatility today. It rose 0.14% to Rs 951.05 after its the Rs 8,750-crore follow-on public offer (FPO) of was subscribed 10.53 times by 16:00 IST today, 22 June 2007. The issue closes on Friday, 22 June 2007. The scrip moved in a range of Rs 947–Rs 967.

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.

State Bank of India (SBI) advanced for the fourth straight session, gaining 0.73% to Rs 1456. 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).

Bank stocks gained after inflation data, but later pared gains. BSE Bankex was up 7.44 points or 0.10% at 7,835.34. Bank of Baroda (up 0.40% to Rs 224), Union Bank (up 0.54% to Rs 130), Allahabad Bank (up 0.43% to Rs 81.30), gained while Canara Bank (down 0.39% to Rs 262), Federal Bank (down 0.47% to Rs 296) and UTI Bank (down 0.32% to Rs 614.50) declined.

Cement stocks came under selling pressure. Gujarat Ambuja Cement lost 2.72% to Rs 116.15, on 3.51 lakh shares, and was the top loser from the Sensex pack. ACC (down 0.55% to Rs 850.55) and Grasim (down 0.68% to Rs 2490) also edged lower.

Index heavyweight Reliance Industries (RIL) slipped 1.86% to Rs 1,701 on 8.55 lakh shares. It also slipped to a low of Rs 1704.25. In the interim order on a petition filed by RNRL, the Bombay High Court said that the 81.6 million cubic metres of gas per day (mmscmd) is to be earmarked for RNRL, NTPC or for RIL’s captive use for the next eight years. The BSE oil & gas index was down 74.43 points or 0.97% at 7,593.86, and was the top loser among the sectoral indices on BSE.

State-run oil exploration major Oil & Natural Gas Corporation (ONGC) was down 1.16% to Rs 902.20. The stocks lost for the second straight day on reports that 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.

IT stocks declined on fresh selling. The BSE IT index lost 28.76 points or 0.69% at 4,858.09. Satyam Computers (down 0.92% to Rs 462.50), TCS (down 0.41% to Rs 1139), Infosys (down 0.43% to Rs 1948), and Wipro (down 1.51% to Rs 515.95) declined. A rise in rupee impacts margins of IT companies.

The rupee held steady against the US dollar at 40.71/72 in late morning deals today, 22 June 2007.

EIH rose 0.80% to Rs 102.25 on high volumes of 20.16 lakh shares after a block deal of 19 lakh shares was struck on the counter at Rs 102 per share on BSE at 10:41 IST

Reliance Natural Resources (RNRL) surged 3.10% to Rs 35.05 on the back of Bombay High Court’s verdict in favour of the company. In interim order on a petition filed by RNRL, the high court has said that the 81.6 million cubic metres of gas per day (mmscmd) is to be earmarked for RNRL, NTPC or for RIL’s captive use for the next eight years.

Educomp Solutions had jumped 7% to Rs 2307.50 after announcing the pricing of its $80-million convertible bond issue at Rs 2949.83 per share. The bonds would be listed on Singapore Exchange, with an initial conversion price of Rs 2949.83 per share. This is a 27.7% premium over the current ruling market price. The zero coupon bonds would be redeemed on 26 July 2012.

Banco Products India soared 10% to Rs 327.65 after the company made the announcement after market hours on Wednesday, 20 June 2007 that its board would meet on 28 June 2007 to consider recommendation of bonus issue. 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.

Ratnamani Metals & Tubes slumped 4.13% to Rs 887.50 despite reporting a 91.35% surge in net profit in FY 2007. Ratnamani Metals’ net profit jumped 38.43% to Rs 17.47 crore in Q4 March 2007 as against Rs 12.62 crore in Q4 March 2006. Sales flared up 97.30% to Rs 152.51 crore (Rs 77.30 crore). Net profit grew 91.35% to Rs 64.18 crore in the year ended March 2007 as against Rs 33.54 crore in FY 2006. Sales rose 79.01% to Rs 571.25 crore in FY 2007 (Rs 319.12 crore).

Rolta India plunged 7.41% to Rs 455.35 after it raised over Rs 600 crore through a convertible bonds issue in international markets. The company made the announcement before trading hours today, 22 June 2007.

Bank of India rose 3.63% to Rs 224 on signing the deed for acquiring 76% stake in PT Bank Swadesi, Indonesia. Bank Swadesi is a well run mid sized bank operating in Indonesia for the last 38 years and it has 16 outlets. Bank Swadesi has a licence to do forex business and is listed on the Jakarta Stock Exchange.

Gayatri Projects slipped from high of Rs 317.80, to settled 0.62% higher to Rs 299.50. It got two road construction orders worth Rs 880 crore, jointly with Maytas Infra,in Andhra Pradesh. The company made the announcement during market hours today, 22 June 2007. Both the contracts won by Gayatri Projects and Maytas Infra in a consortium of 50:50 are for road construction.

Kothari Products lost 2.61% to Rs 578 after surging 10% to Rs 652.85, on reports that company's co-founders would transfer 19.44% stake beween them at market price on 28 June 2007. Reportedly, Deepak Kothari will buy the stake from M.M. Kothari and Sharda Kothari to raise his stake to 46.02% in the company. The transfer of shares between promoters will involve Deepak Kothari buying the stake from M.M. Kothari and Sharda M. Kothari to raise his stake to 46.02% in the company.

Finolex Industries rose 1.85% to Rs 85.20 on reports that the company is close to selling its Pune land to Tishman Speyer India Ventures for Rs 300 crore. Tishman Speyer India Ventures is a company engaged in real estate development. FIL will move its Chinchwad plant, lock, stock and barrel to its 1,000-acre plot in Ratnagiri where it is already producing nearly 60,000 tonnes of pipes annually, in addition to PVC resin.

Great Eastern Shipping Company (Gesco) vaulted 5.98% to Rs 343 on signing a contract to buy a 1,47,092 dead weight tonne modern double hull Suezmax crude tanker. Gesco announced after market hours on 21 June 2007. The ship is expected to join the cmpany's fleet during the second quarter of the year ended 31 March 2008. The decision to induct the vessel is with the objective of modernising the tanker tonnage and to enhance the Suezmax fleet

Japanese shares were trading weaker today, 22 June 2007, with banking stocks such as Mitsubishi UFJ Financial Group and automaker Toyota Motor Corp. leading declines. But chipmaker Advantest Corp. rose sharply as the yen weakened further against the US dollar. The Nikkei was down 0.28% at 18,188.63.

Most of the Asian markets were trading lower. Hong Kong's Hang Seng (up 0.21% at 21,999.91), South Korea's Seoul Composite (down 1.30% at 1,770.98), Singapore's Straits Times (down 0.66% at 3,615.38) and Taiwan's Taiwan Weighted (down 0.06% at 8,846.39) declined. China’s Shanghai Composite slumped 3.29% to 4,091.45.

All the European markets were trading weak.

US stocks edged higher on Thursday, 21 June 2007, as investors apparently set aside some interest rate concerns and took a dose of upbeat economic data at face value. The Dow Jones Industrial Average rose 56.42 points, or 0.42%, to 13,545.84. Broader stock indicators also rose. The Standard & Poor's 500 index was up 9.35 points, or 0.62%, to 1,522.19, and the Nasdaq Composite index advanced 17 points, or 0.65%, to 2,616.96.

As per the provisional data, foreign institutional investors (FIIs) were net buyers of shares worth Rs 144.49 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 147.71 crore on Thursday, 21 June 2007.

Oil prices edged higher in Asian trade Friday, 22 June 2007, as players assessed whether a strike in key African crude oil producer Nigeria would affect supplies. New York's main oil futures contract, light sweet crude for delivery in August, was up six cents at $68.71 per barrel from $68.65 in late US trades.