Sensex, Nifty strike lifetime highs

The market settled with decent gains as buying continued throughout the day. Both the benchmark indices, the BSE 30-share Sensex and the NSE's S&P CNX Nifty, struck record highs. Shares from capital goods, banking and IT sectors were in demand, while FMCG stocks declined.

The Sensex gained 81.61 points, or 0.55%, to 15,045.73, an all-time closing high. It opened higher at 15,018.71 and surged to strike a record high of 15,085.22 at 14:47 IST on buying interest following firm Asian and US bourses. The Sensex had slipped to a low of 15,005.47, at 10:34 IST.

It oscillated a mere 85 points throughout the day’s trading session, indicating the absence of volatility on the bourses.

The Sensex had hit 15,000 for the first time on Friday, 6 July 2007, but it had failed to settle above that level on that day.

The S&P CNX Nifty advanced 34.55 points or 0.79% at 4,419.40, an all- time closing high. It struck an all-time high of 4,427.55 in intra-day trade. The Nifty July 2007 futures settled at 4405, a discount of 22.55 points over spot closing.

The market breadth was strong on BSE, with 1,622 shares advancing as compared to 1,047 that declined, while 75 remained unchanged.

The BSE Small-Cap Index rose 1.47% to 8,019.99, after striking an all-time high of 8,036.08.

The BSE Mid-Cap Index gained 0.95% to 6,683.70. It also hit an all-time high of 6,689.79

The total turnover on BSE amounted to Rs 4,551 crore as against Rs 5,877 crore on Friday, 6 July 2007

The NSE F&O turnover was at Rs 27,570.89 crore as compared to Rs 34,609.98 crore on Friday, 6 July 2007.

Among the Sensex pack, 20 gained, while the remaining declined.

Reliance Energy (REL) was the top gainer among the Sensex constituents. It advanced 2.52% to Rs 613 on 3.44 lakh shares. As per reports, a consortium led by REL has emerged as the successful bidder for the Rs 6,400 crore business district project proposed in Hyderabad by the state-owned Andhra Pradesh Industrial Infrastructure Corporation (APIIC). The project is expected to be completed in five years. Reliance Energy will hold 66% equity in the project while its joint venture partner, Sobha Developers, will own a 23% stake. The remaining 11% equity will be held by APIIC towards the land component of the project.

Capital goods shares were in demand with the BSE Capital Goods index striking an all-time high of 12,954.34 in intra-day trade. The index rose 1% to 12,901.82.

State-run engineering major Bhel gained 1.40% to Rs 1,577.70, after striking an all-time high of Rs 1594. Engineering and construction major Larsen and Toubro (L&T) advanced 2.26% to Rs 2,417.90, after striking an all-time high of Rs 2,425. Both Bhel and L&T are sitting on robust order books that provide a strong visibility of revenue growth.

L&T is planning to take three more companies, operating in infratech, infotech and finance, to the primary market as part of its efforts to reorganise the corporate structure. As per reports, the infratech arm will be the first to tap the market in the next 12 to 18 months, while the other two companies will take about three years to hit the market.

Banking shares surged on rumours that the Reserve Bank of India may cut cash reserve ratio (CRR). The BSE Bankex was up 0.7% at 8,179.72. State Bank of India (up 1.48% to Rs 1573.10), Union Bank of India (up 12.13% to Rs 145.60), HDFC Bank (up 1.55% to Rs 1171.25), Bank of India (up 3.58% to Rs 230.25) and Punjab National Bank (up 3.79% to Rs 544.10) edged higher.

IT stocks were in demand on renewed buying interest ahead of Q1 June 2007 results. A rally in their ADRs on Friday, 6 July 2007, aided gains in IT shares. Infosys Technologies (up 1% to Rs 1,990.90), Wipro (up 0.88% to Rs 524), and TCS (up 1.46% to Rs 1,176) advanced. Infosys declares its Q1 June 2007 results on Wednesday, 11 July 2007. Infosys ADR surged 4.8% to $52.59 and Wipro ADR gained 5% to $16.08 on Friday, 6 July 2007. The BSE IT Index gained 1% to 4,996.66.

Meanwhile, the rupee climbed towards a nine-year peak on Monday, 9 July 2007, as traders built positions in the local unit in anticipation of strong foreign investment flows and on positive cues global equities. In early trade, the partially convertible rupee was at 40.39/40 per dollar, strengthening from Friday's (6 July 2007) 40.46/47, and moving towards a nine-year high of 40.28, hit in late May 2007.

Market men expect Infosys to revise downwards its rupee EPS guidance for FY 2008 to factor in the impact of the rupee’s rise. But they expect Infosys to raise revenue guidance in dollar terms. This will help it maintain the EPS guidance in dollar terms. Infosys had guided a 20% to 22% growth in EPS in FY 2008 and a higher 25.7% to 27.7% growth in EPS in dollar terms while announcing FY 2007 results.

Infosys is seen reporting a fall in net profit on a sequential basis in Q1 June 2007 due to the surge in the rupee and wage hike. The revenue is expected to grow only a bit on a sequential basis.

HDFC was up 0.47% to Rs 1,925 after a newspaper reported Insurance Australia Group was in talks to buy a 26% stake in an insurance firm founded by HDFC.

Index heavyweight Reliance Industries was lacklustre today. It closed 0.03% lower at Rs 1,710.80, on 3.46 lakh shares. It moved in a range of Rs 1,701.10 – Rs 1,719.

FMCG major Hindustan Unilever lost 3% to Rs 194, on 9.58 lakh shares, and was the top loser from Sensex pack. The stock slipped on profit booking. ITC slipped 0.32% to Rs 155. The BSE FMCG index dropped 0.60% to 1,844.48, and was the top loser among the sectoral indices on BSE

ICICI Bank witnessed selling pressure for the second straight day. It shed 1.23% to Rs 969.50, on 14.99 lakh shares. The 5.81-crore shares of ICICI Bank offered in its follow-on public offer (FPO) completed last month were listed on the bourses on Friday, 6 July 2007. The company had priced its FPO at Rs 940 per share. Retail investors were offered the shares at a discount of Rs 50, i.e., at Rs 890 per share. The issue was subscribed 11.5 times, with qualified institutional buyers bidding 21.6 times. It was open from 19 to 22 June 2007.

The ICICI Bank stock declined after it cut home loans rates under Rs 20 lakh for new customers by 50 basis points (100 bps is equal to 1%).

Cipla (down 0.65% to Rs 210.75), Maruti Udyog (down 0.61% to Rs 791), and Grasim (down 0.61% to Rs 2760) were the other losers.

Mahindra & Mahindra (M&M) dropped 0.30% to Rs 785 and Hero Honda Motors shed 1.55% to Rs 687. The former replaced the latter in BSE Sensex from today.

Roman Tarmat settled at Rs 319.85 on BSE, a premium of 82.77% over the IPO price of Rs 175. The scrip debuted at Rs 295, and had touched a high of Rs 376.25 and a low of Rs 295 during the day. On BSE, 81.89 lakh shares of the scrip had changed hands. Roman Tarmat is a Mumbai-based infrastructure company constructing highways, runways and other civil work.

Kothari Products (up 20% to Rs 669.90), Ind Swift Labs (up 16.83% to Rs 69.75), Ankur Drugs (up 10% to Rs 389.65), Astral Poly (up 10.25% to Rs 126.25) and Prime Securities (up 10% to Rs 91.50) surged from the small- and mid-cap space.

Development Credit Bank jumped 7.12% to Rs 109.75 after its board would meet on 10 July 2007 to consider raising up to Rs 310 crore through a preferential issue. The company made the announcement after market hours on Friday, 6 July 2007.

Dishman Pharmaceuticals & Chemicals rose 3.32% to Rs 336.50 after the drug maker said it had agreed to acquire the fine chemicals and vitamins business of the Netherlands' Solvay Pharmaceuticals BV. The company did not disclose the deal size. The company made the announcement during trading hours today, 9 July 2007.

Sadbhav Engineering rose 0.49% to Rs 598 after its board approved raised the foreign portfolio limit to 49% of its paid-up capital.

ICSA India surged 7.47% to Rs 1,308.70 on bagging work orders from Andhra Pradesh Southern Power Distribution Company worth Rs 30.44 crore for design, supply, transport, construction, testing, erection & commissioning of 33/11 kilo volts (KV ) substations in the Krishna, Guntur and Prakasam districts of Andhra Pradesh.

FCI OEN Connectors was locked at the upper circuit of 5% at Rs 584.15 after its parent FCI SA's offer to buy back 20 lakh shares, opened today, 9 July 2007. The delisting offer will close on 13 July 2007. The parent, currently holding a 68% stake in the Indian arm, had offered to buy up to 20 lakh, or 31.69%, from minority shareholders at a floor price of Rs 391.38 a share.

Nucleus Software Exports galloped 4.79% to Rs 1,050 on fixing 6 August 2007 as the record date for issue of bonus shares in the ratio of 1:1.

Hikal jumped 14.19% to Rs 540 after it bagged a Rs 200 crore contract from Alpharma, a US-based specialty pharmaceutical company, for manufacture and supply of an active pharmaceutical ingredient (API) for the veterinary sector. The company will be manufacturing the API at its USFDA approved plant at Jigani, Bangalore.

IFCI rose 1.43% to Rs 60.25 after getting its board's approval to invite expression of interest from strategic investors at its meeting held on 06 July 2007. IFCI reported a net profit of Rs 246.86 crore in Q1 June 2007 as against net loss of Rs 15.61 crore in Q1 June 2006. Operating income rose 96.6% to Rs 506.35 crore in Q1 June 2007 as against Rs 257.61 crore in Q1 June 2006. The results were declared after market hours on Friday, 6 July 2007.

All the Asian stocks were up today, 9 July 2007. Machinery makers such as Komatsu and Fanuc lifted Japanese markets. Nikkei surged 0.67% at 18,261.98.

Hang Seng (up 1.27% at 22,817.43), Taiwan Weighted (up 1.98% at 9,369.84), Singapore's Straits Times (up 1.24% at 3,606.28) and South Korea's Seoul Composite (up 1.40% at 1,887.02) edged higher. The Shanghai Composite surged 2.69% to 3,883.21

All the European indices were also trading with gains.

US stocks gained on Friday, 6 July 2007, after rising oil prices lifted energy shares and a strong jobs report reassured investors about the economy. Dow Jones Industrial Average rose 45.84 points, or 0.34%, to 13,611.68. The Nasdaq Composite Index advanced 9.86 points, or 0.37%, to 2,666.51

Oil prices edged lower on Monday, 9 July 2007, after reaching an 11-month high late last week. London Brent crude eased 14 cents to $75.48 a barrel.