Market scales record closing high in choppy trade

The market extended gains for the third straight day today. It was trading strong till late afternoon trade, but witnessed a trend reversal and slipped into the red at one point of time in last one hour of trade on profit booking. It had opened firm as strong buying interest continued following a 249-point rally on Thursday, 19 July 2007. Also strong Asian and US markets boosted sentiment in early trade. The latest data showed that the inflation growth remained unchanged for the week ended 7 July 2007.

Shares from capital goods, telecom, real estate and metal pack witnessed buying interest while selling pressure was seen in IT, banking, FMCG and oil & gas stocks.

The BSE 30-share Sensex gained 15.42 points to 15,565.55, an all time closing high. It opened higher at 15,625.63 and surged to an all time high of 15,683.03 in initial trade. It slipped to a low of 15,524.68 at 15:16 IST.

The NSE Nifty crossed the 4,600 mark to strike an all time high of 4600.80. It settled with a gain of 3.95 points or 0.09% at 4,566.05, an all time closing high. The Nifty July 2007 futures settled at a sharp discount of 20.75 points to 4,545.30, as compared to spot closing

The market witnessed high volatility today, and it is expected to stay choppy in the near term ahead of expiry of July 2007 derivatives contracts on Thursday, 26 July 2007. The total open interest in NSE’s F&O segment increased to an all time record of Rs 94,041.37 crore, from Rs 89,173.11 crore on previous day.

India's wholesale price index was unchanged at the previous week's level of 4.27% in the 12 months to 7 July 2007, despite a fall in some food prices, government data showed on Friday. The annual inflation rate was 4.83% during the corresponding week of the previous year. Annual inflation for the week ended 12 May 2007 was revised to 5.62% from 5.27%.

The market breadth was negative on BSE with 1729 shares declining as compared to 964 that advanced. 70 remained unchanged

The BSE Mid-Cap Index ended with a gain of 8.33 points or 0.12% to at 6,836.07. However, the BSE Small-Cap Index slumped 70.40 points or 0.85% to 8,188.12.

The total turnover on BSE amounted to Rs 5761 crore as against Rs 6,426.46 crore on Thursday, 19 July 2007. The NSE F&O turnover was at Rs 48073.22 crore as compared to Rs 45874.91 crore on Thursday, 19 July 2007

Among the Sensex pack, 17 advanced while the rest declined

Cement stocks saw unwinding after the recent rally. Second largest cement producer ACC, slumped 3.68% to Rs 1108 on 11.05 lakh shares. It was the top loser from Sensex pack. Ambuja Cement lost 2.31% to Rs 135.60 while India Cements lost 1.30% to Rs 224.50

North India's largest cement maker Ambuja Cements' net profit rose 168.02% to Rs 877.75 in Q2 June 2007 over Q2 June 2006. Total income rose 15.77% to Rs 1513.03 crore in Q2 June 2007 over Q2 June 2006.

India's largest engineering and construction firm Larsen and Toubro surged 4.20% to Rs 2476 on launch of an IT SEZ, a first of its kind integrated project. It also struck an all time high of Rs 2499 today. The project coming up at Vallancheri, Tamil Nadu will have a total built up area of 2.70 million squre feet (sq. ft.), would be completed in two phases. Construction of the first phase is expected to begin in August end this year and would constitute 1.5 million sq. ft.

The BSE Capital Goods Index gained 1.5% at 13,070.08. Thermax (up 7.45% to Rs 608), Bharat Bijlee (up 1.74% to Rs 2431), and Jyoti Structures (up 2.24% to Rs 212), edged higher from the capital goods pack.

Metal stocks gained on fresh buying on hopes of firm global metal prices. Top private sector steel major Tata Steel vaulted 4.93% to Rs 715.90 on 18.11 lakh shares. It was the top gainer from the Sensex pack

Other metal stocks - Sail (up 0.68% to Rs 156.40), Hindustan Zinc (up 2.46% to Rs 788.60), Sesa Goa (up 1.06% to Rs 1895), and JSW Steel (up 2.68% to Rs 722) also gained. The BSE Metal Index closed at 12,211.10, up 1.5%.

Shares from real estate pack advanced, with the BSE Real Estate index hitting an all time high of 8,303.32. It settled 1.60% higher at 8,183.02, and was the best performer among the sectoral indices on BSE. Indiabulls Real Estate (up 2.91% to Rs 593), Unitech (up 4.04% to Rs 565.60), Mahindra Gesco Developers (up 3.41% to Rs 593.60) and Sobha Developers (up 1.36% to Rs 927.20) advanced from the real estate sector.

India’s largest cellular services provider Bharti Airtel galloped 2.86% to Rs 921.50, after hitting an all time high of Rs 943. Bharti Enterprises, the parent of Bharti Airtel said on Wednesday, 18 July 2007, one of its group companies had bought a 4.99% in the telecom firm from Vodafone. The purchase took Bharti's voting interest in Bharti Airtel to more than 50%.

India's second-largest mobile services firm Reliance Communications (RCom) rose 1.29% to Rs 586.80. The company has sold a 5% stake in its telecom tower business, valued at Rs 27000 crore, Chairman Anil Ambani said on Thursday, 19 July 2007. It has placed the 5% stake with a handful of leading investors in the United States, Europe and Asia, for Rs 1400 crore. It also struck an all time high of Rs 592

RCom is also evaluating a possible initial public offering or strategic equity placements for the tower business, Ambani said.

Mahindra & Mahindra (up 1.05% to Rs 824), and Dr Reddy’s (up 0.74% to Rs 670), were the other gainers from the Sensex pack.

India's largest private sector company Reliance Industries (RIL) slipped 0.50% to Rs 1,887. The Bombay High Court on Wednesday, 18 July 2007, refused to stay an interim order barring RIL from selling gas from its KG basin field to any other firm except Anil Ambani's Reliance Natural Resources (RNRL) and state-run NTPC. A division bench of Justices J N Patel and Ahmed Sayed also adjourned by eight weeks the hearing on RIL's appeal against the previous interim order.

The court, however, said the government can go ahead with the process of fixing of gas price as per the contract for the field, without any prejudice to either party.

Reliance Energy rose 0.16% to Rs 687 on bagging three road projects valued at Rs 2320 crore from National Highways Authority of India. The projects include four-laning work of high-traffic density corridor from Salem to Ulundurpet, Trichy to Dindigul and Trichy to Karur in Tamil Nadu. The projects are scheduled for completion by 2010, REL said in a statement. The announcement came after market hours on Thursday, 19 July 2007

Fourth largest IT company Satyam Computer Services lost 2.27% to Rs 475.60, after it posted 2.1% fall in net profit to Rs 389.14 crore in Q1 June 2007 over March 2007. Total income rose 6.5% to Rs 1820.93 crore over Q4 March 2007. Satyam Computer has cut FY 2008 EPS guidance in rupee terms. It has now projected a between 12.5% to 14% growth in EPS to between Rs 24.14 and Rs 24.46. It had earlier guided of 18% to 20% EPS growth in rupee terms for FY 2008.

It has, however, raised FY 2008 revenue guidance in rupee terms. It now expects 21.1% and 22.5% growth in revenue in rupee terms compared to earlier guidance of 20% to 22%. The results hit markets before trading hours today.

The BSE IT Index lost 0.7% at 4,921.06. Mphasis (down 3.16% to Rs 269.75), i-flex Solutions (down 1.53% to Rs 2330), Infosys (down 1.10% to Rs 1974.95), and Financial Technologies (down 1.48% to Rs 2850), edged lower.

Cipla (down 2.41% to Rs 200.50) and Bajaj Auto (down 2% to Rs 2335) were the other losers.

Shares of standalone refineries advanced on renewed buying. MRPL (up 9.21% to Rs 45.65), Bongaingaon Refinery & Petrocemicals (up 5.78% to Rs 54) and Essar Oil (up 1.76% to Rs 55), gained.

Shares from fertiliser sector rallied on fresh buying momentum in the wake of normal monsoon. These companies generally get active and see movement during this quarter of the year, as they derive majority of their revenues during this period of time. As per the recent Indian meteorological department’s (IMD) analysis, the monsoon is expected to be average across the country. This acts in favor for the whole fertilizer sector because sector's fortune depends on the monsoon in the country.

Rashtriya Chemicals & Fertilisers (up 20% to Rs 54.05), Khaitan Chemicals (up 3.27% to Rs 60), National Fertilisers (up 20% to Rs 36.45), Fertilisers & Chemicals Travancore (FACT) (up 9.76% to Rs 25.30), Coramandel Fertilisers (up 0.54% to Rs 84.50), and Zuari Industries (up 5% to Rs 238.85), surged on high volume.

BASF India slumped 6.10% to Rs 270.75 after it reported 15% growth in net profit in Q1 June 2007 to Rs 19.87 crore over Q1 June 2006. Sales moved up 14.11% to Rs 236.01 crore in Q1 June 2007 over Q1 June 2006. The chemicals maker declared the result during market hours today, 20 July 2007.

Tata Metaliks gained 1.56% to Rs 135.50 on signing a joint venture agreement with Kubota Corporation and Metal One, both from Japan, for pipe manufacturing in India.

Sixth largest IT company by sales Tech Mahindra plunged 5.37% to Rs 1400 after it reported 13% a fall in net profit in Q1 June 2007 on a sequential basis. Tech Mahindra’s consolidated net profit declined 13.1% to Rs 170.30 crore in Q1 June 2007 over Q4 March 2007. Revenue rose 0.2% to Rs 876.30 crore over March 2007.

Prism Cement rose 2.50% to Rs 53.25 after the company said it would invest Rs 74 crore for a 74% stake in a joint venture with Australia's QBE International (Investments) for general insurance business in India. QBE is Australia’s largest international general insurance & reinsurance group.

United Phosphorus rose 3.40% to Rs 310 after its UK subsidiary purchased 100% stake of Icona and Icona San Luis S.A. Icona makes crop protection products. The share purchase includes all stocks, products registrations, manufacturing sites and all other property rights associated with the business of Icona.

Battery manufacturer Exide Industries spurted 20% to Rs 56.50 after its net profit rose 84% in Q1 June 2007 to Rs 70.11 crore over Q1 June 2006. Sales rose 50.51% to Rs 663.92 crore in Q1 June 2007 over Q1 June 2006.

Sasken Communication Technology slipped 5.42% to Rs 458 after its consolidated net profit declined 45.43% in Q1 June 2007 to Rs 6.39 over Q4 March 2007. Sales declined 5.46% to Rs 128 crore in Q1 June 2007 over March 2007.

The net profit declined 26.12% to Rs 6.39 crore in Q1 June 2007 over Q1 June 2006. Sales moved up 40.47% to Rs 128 crore in Q1 June 2007 over Q1 June 2006.

Pantaloon Retail India rose 3.53% to Rs 541.10 after it entered into a 50:50 joint venture (JV) with Axiom Telecom LLC, UAE, to do sourcing and wholesale distribution of mobile handsets, accessories and setting up service centres and authorised after sales service centres for mobile handsets in India.

All the Asian indices settled higher, boosted by a record close on Wall Street, with Japanese rising on strong earnings reports from LG Electronics and Korea Zinc Inc. Nikkei gained 0.23% at 18,157.93.

Hong Kong's Hang Seng (up 1.20% at 23,291.90), Taiwan's Taiwan Weighted (up 1.19% at 9,585.90), Singapore's Straits Times (up 1.30% at 3,651.38) and South Korea's Seoul Composite (up 2.36% at 1,983.54), posted gains in early trade.

Shanghai Composite jumped 3.73% to 4,058.83

Most of the European indices were trading higher

Wall Street edged higher yesterday, 19 July 2007, taking the Dow Jones Industrial Average (DJIA) to its first close above 14,000 as investors kept jitters about the economy at bay and focused on a string of upbeat earnings reports. The Standard & Poor's 500 index also had a record close.

The Dow advanced 82.19 points, or 0.59%, to 14,000.41. Broader stock indicators also gained Thursday. The S&P 500 index gained 6.91 points, or 0.45%, to 1,553.08. The technology-focused Nasdaq Composite index rose 20.55 points, or 0.76%, to 2,720.04, following the upbeat tech earnings.

Meanwhile the Reserve Bank of India (RBI) has cleared the operational hurdles for FIIs to pledge foreign sovereign securities like US treasury bills for taking positions in futures and options. Till now, FIIs were mandatorily required to give cash as margin for investing in derivatives. From now on, foreign portfolio managers can dip into their idle holdings of bonds issued by overseas governments to give margins against F&O trades in Indian stock exchanges.