Market snaps five-day rally

The market settled with nominal losses, after swinging sharply during the day. It staged a strong intra-day rebound. The market opened on a strong note tracking firm global equities, but immediately slipped sharply into the red after striking an all-time high. It later recovering on value buying and on short covering. Auto and capital goods shares were in demand, while IT pivotals were offloaded. Realty major DFL ended at 8.5% premium over IPO price.

The BSE 30-share Sensex settled with a decline of 18.35 points or 0.12% at 14861.89. The barometer index had opened higher at 14,932.53 and surged to strike a record high of 14,963.26 at 09:58 IST as buying momentum intensified. But it had faltered later to touch a low of 14,731.22 by 11:35 IST --- a fall of 149.02 points for the day. Sensex later made a strong intra-day rebound.

The Sensex oscillated 242 points in the day in volatile trade.

The barometer index had gained 449 points, or 3.11%, in five trading sessions to 14,880.24 on Wednesday, 4 July 2007, from its close of 14,431.06 on 27 June 2007.

The S&P CNX Nifty lost 5.35 points or 0.12% today to settle at 4,353.95. The Nifty July 2007 futures were at 4355, a marginal premium of 1.05 points as compared to spot closing

Real-estate major DLF settled at Rs 570.05, a premium of 8.57% over the IPO price of Rs 525 per share. The scrip debuted at Rs 582, and touched a high of Rs 714.25 and a low of Rs 505.60 during the day on BSE. The counter saw high volumes of 3.42 crore shares on BSE.

The DLF IPO was subscribed 3.47 times. The IPO received total bids for 60.70 crore shares compared to issue size of 17.50 crore shares. Post-issue promoter holding in the company is 88.24%. The post-issue FII holding was 5.92%.

The market breadth remained weak on BSE: 1,656 shares declined as compared to 997 shares that advanced, while 71 remained unchanged. The breadth turned negative from positive in mid-morning trade.

The BSE Mid-Cap Index settled or 0.60% lower at 6,605.85, while the BSE Small-Cap Index lost 0.80% to 7,796.02

The total turnover on BSE amounted to Rs 4583 crore as against Rs 5624 crore on Wednesday, 4 July 2007. The NSE F&O turnover was Rs 41,247.62 crore as compared to Rs 34125.16 on Wednesday, 4 July 2007.

Among the Sensex pack, 18 declined while the rest advanced.

Private sector banking major ICICI Bank rose 1.80% to Rs 1003, on 11.77 lakh shares, after striking an all time high of Rs 1009.90 in intra-day trade. The stock rose for the second day in a row following reports that the department of industrial policy and promotion has approved ICICI Bank's plan to sell a 24% stake in ICICI Financial Services. ICICI Bank had recently said that its plant to sell stake in ICICI Financial Services to foreign investors was unlikely to get go ahead from the Foreign Investment Promotion Board (FIPB). It was the top gainer from the Sensex pack

Other banking stocks, UTI Bank (up 1.97% to Rs 630), Indian Bank (up 6.88% to Rs 140.50), Union Bank (up 0.40% to Rs 130.15), rose. The BSE Bankex was up 0.4% at 7,427.55.

Engineering and construction major L&T advanced 1.46% to Rs 2,325, on 3.26 lakh shares after striking an all-time high of Rs 2364. L&T will float five new companies to ensure better corporate governance as well as attracting talent. The companies will operate in L&T’s new business areas of power projects, boilers, turbines, water and shipbuilding.

State run engineering major Bhel rose 1.28% to Rs 1564.95. The BSE Capital Goods Index was up 0.37% at 12,618.94.

Auto stocks extended recent gains on hopes that interest rates may soften. The BSE Auto Index gained 0.92% to 4,881.94, and was the top gainer among the sectoral indices on BSE. Car major Maruti Udyog advanced 1.74% to Rs 805, as buying continued after it recorded a 24% rise in sales in June 2007 on demand for its Swift hatchback and the new SX4 sedan. Maruti sold 59,917 cars, vans and sport-utility vehicles in India and overseas last month compared with 48,425 a year earlier.

Tata Motors rose 1.48% to Rs 708. The country's biggest truck and bus maker recorded 2% decline in sales in June 2007 as demand for commercial vehicles and cars fell. Tata Motors sold 44,317 commercial and passenger vehicles in India and overseas in June 2007.

Hero Honda Motors added 0.42% to Rs 688.50. TVS Motors Company jumped 3.39% to Rs 62.60. TVS Motors’ sales in June 2007 declined 15.2% to 1,07,117 units compared to 1,26,290 units in June 2006.

Index heavyweight Reliance Industries (RIL) recovered from a low of Rs 1,680.50, to settle at Rs 1710, on 5.90 lakh shares. The stock lost 0.33% for the day. The Committee of Secretaries (CoS), which met on 2 July 2007 to decide on the issue of gas pricing from RIL’s D6 fields in the Krishna-Godavari (K-G) basin, has asked the power and fertiliser ministries to present their views before the committee on 5 July 2007. No decision was taken in the meeting even as the petroleum ministry pitched for a market-determined price of gas produced from NELP blocks.

Reliance Energy was the top loser from the Sensex pack. It shed 3.25% to Rs 591.50, on volumes of 9.10 lakh shares. The stock slipped on profit booking.

Ranbaxy (down 2.28% to Rs 359.30), HDFC (down 1.93% to Rs 1941.50) and Hindlaco (down 1.25% to Rs 154.65) were the other losers

IT stocks remained subdued, with the BSE IT Index declining the most among the sectoral indices on BSE, by 1.03% at 4,791.99. Infosys Technologies (down 1.11% to Rs 1911.50), TCS (down 0.73% to Rs 1109.10), Satyam Computers (down 1.52% to Rs 464), and Wipro (down 0.95% to Rs 504.10) edged lower.

The rupee remained stable at 40.45/46 on Thursday, 5 July 2007, against the US currency on the back of suspected intervention by the Reserve Bank. On Wednesday, 4 July 2007, the rupee had closed at fresh nine-year closing peak of 40.45/46 a dollar

NTPC lost 1.51% to Rs 153 after large block deal of 39.19 lakh shares was executed in the counter on BSE at Rs 157.25 per share in opening trade.

Cement shares made a good intra-day rebound though many of them ended in the red. ACC (down 0.03% to Rs 1022.25), Ambuja Cements (down 1.12% to Rs 128.50), UltraTech Cement Company (down 4.37% to Rs 899) and India Cements (down 0.70% to Rs 213.60) edged lower while Grasim rose 0.34% to Rs 2749. Cement shares had surged recently on reports that cement firms have hiked prices by Rs 3-Rs 5 per 50-kilogram bag across India effective from Wednesday, 4 July 2007.

Shares of construction firms and property developers were hammered today on profit booking after the recent surge. Era Construction (down 5.48% to Rs 428), Ansal Infrastructures (down 5.19% to Rs 294.10), Unitech (down 5.64% to Rs 522.10), Madhucon Projects (down 4.66% to Rs 228.90), Parsvnath Developers (down 4.61% to Rs 360.90), and Sobha Developers (down 4.46% to Rs 901.80) all edged lower.

Asian Electronics was locked at the 5% upper limit of Rs 953.40 after posting a 146% rise in net profit Q4 March 2007 to Rs 31.55 crore as against Rs 12.83 crore in Q4 March 2006. Sales surged 162.15% to Rs 150.21 crore in Q4 March 2007 (Rs 57.30 crore). Net profit spurted 164.93% to Rs 66.63 crore in the year ended March 2007 as against Rs 25.15 crore in FY 2006. Sales rose 134.72% to Rs 367.45 crore in FY 2007 (Rs 156.55 crore). The company’s board also approved a 2-for-1 stock-split.

Sadbhav Engineering rose 1.43% to Rs 605 after its joint venture with JMC Projects (India), received a Rs 328-crore road development order. The share of Sadbhav Engineering in the joint venture is 49.50%.

Indus Fila soared 5.49% to Rs 222 after the textile firm said it bought a 51% stake in Indus Garments (India) for Rs 9.35 crore. The company made the announcement during trading hours today, 5 June 2007.

Arvind Mills declined 4.73% to Rs 46.40 after NSE banned fresh derivatives contracts on the counter as they have crossed 95% of the market-wide position limit.

Pidilite Industries rose 3.30% to Rs 128.40 after its Brazilian unit acquired shares in an adhesive and sealant maker in that country. The company made the announcement after market hours on Wednesday, 4 July 2007. The company did not disclose any financial details about the acqusition.

Zensar Technologies gained 4.26% to Rs 350 on reports that the Pune-based IT service provider is looking at acquiring a company in Europe to gain access to the non-English speaking market. The size of the acquisition would be in the range of $4-5 million.

Britannia Industries spurted 4.97% to Rs 1703.90. French food company Danone announced plans on Tuesday, 3 July 2007, to sell its biscuit and cereal snack unit to Kraft Foods Inc., excluding its stakes in its Indian and Latin American businesses. Danone is an equal partner with Wadia Group in top biscuits maker Britannia Industries

Vadilal Industries rose 2.58% to Rs 43.70 even as it reported a 12.77% fall in net profit in Q4 March 2007 to Rs 1.64 crore as against Rs 1.88 crore in Q4 March 2006. Sales rose 0.73% to Rs 26.11 crore in Q4 March 2007 as against Rs 25.92 crore in Q4 March 2006. The results were announced after market hours on Wednesday, 4 July 2007.

Khaitan Electricals was down 2% to Rs 137.10 despite reporting a rise of 57.83% in net profit in Q4 March 2007 to Rs 7.86 crore as against Rs 4.98 crore in Q4 March 2006. Sales rose 27.03% to Rs 110.77 crore in Q4 March 2007 as against Rs 87.20 crore in Q4 March 2006. The results were announced after market hours on 4 July 2007.

Most of the Asian indices settled higher on Thursday, 5 July 2007. Japan's Nikkei 225 index advanced as shares of exporters such as Sony Corp. and machinery makers such as Komatsu extended gains, while stocks in South Korea and Taiwan extended their record run from Wednesday. Nikkei gained 0.29% at 18,221.48.

Hang Seng (up 0.16% at 22,252.99), South Korea's Seoul Composite (up 0.51% at 1,847.79), and Taiwan's Taiwan Weighted (up 0.88% at 9,148.78) all edged higher.

But China’s Shanghai Composite plunged 5.25% to 3,615.87

All the European indices which had opened higher, slipped in the red later. The Bank of England (BoE) monetary committee today, 5 July 2007, lifted bank rate by 25 basis points to 5.75%. Earlier the bank had increased rate by 25 basis points to 5.5% on 10 May 2007. The BoE announcement hit the market after the Indian markets had closed.

US markets were closed on Wednesday, 4 July 2007 for the Independence Day holiday.

Oil surged above $74 to another 10-month high on Thursday, 5 July 2007, ahead of U.S. data that is expected to show refiners are processing more crude to meet robust gasoline demand in the world's top consumer. London Brent crude, now seen as more representative of the global market, hit $74.06 a barrel, the highest since 25 August 2006, after kicking through the previous 10-month high.