Sensex, Nifty strike new highs

Intense volatility characterised trading today, 16 July 2007, as the market swung between the positive and negative territories to eventually settle in the green as buying continued in index pivotals for the third straight session. Shares from the banking, real estate, and cement sectors advanced, while IT, FMCG and pharma stocks declined.

The 30-share BSE Sensex gained 38.50 points, or 0.25%, to 15,311.22, an all time closing high. It opened higher at 15,295.03, and rallied to strike a lifetime high of 15,341.38 at the onset of the trading session. The index slipped to a low of 15,239.41 at 10:20 IST. It moved in a range of about 98 points in the day.

The S&P CNX Nifty rose 7.60 points, or 0.17%, to 4,512.15, an all-time closing high. The index had struck a record high of 4,521.85 earlier in the day. The Nifty July 2007 futures settled at 4,500, a discount of 12.15 points compared to spot closing

The market breadth was positive on BSE, with 1,481 shares advancing as compared to 1,224 that declined, while 59 remained unchanged

The BSE Mid-Cap index rose 39.25 points, or 0.6%, to settle at 6,834.55. The BSE Small-Cap index rose 64.44 points, or 0.80%, to 8,280.58.

The total turnover on BSE amounted to Rs 5,270 crore as against Rs 6,752.31 crore on Friday, 13 July 2007

The NSE F&O turnover was Rs 38,884.18 crore as compared to Rs 48,879.76 crore on Friday, 13 July 2007

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

Reliance Energy gained 4.85% to Rs 708, on 7.70 lakh shares. The Anil Ambani-controlled Reliance Energy (REL) has set a target to bag at least two ultra mega power projects (UMPPs) of 4,000 MW each with an investment outlay of nearly Rs 40,000 crore. It was the top gainer from the Sensex pack.

State-run banking major State Bank of India (SBI) surged 4.15% to Rs 1,618.50. SBI Mutual Fund on Thursday, 12 July 2007, said it collected Rs 2,536 crore from Infrastructure Fund Series-I, which closed for subscription in June 2007. The scheme got good response from retail investors, and received an overwhelming 6.7 lakh applications during the new fund offer (NFO) period.

Led by SBI, the BSE Bankex surged 1.27% to 8,386.65, after hitting an all time high of 8,398.59 in intra-day trade. PSU bank shares extended recent gains on a view that interest rates have peaked for the time being. Indian Bank (up 7.81% to Rs 163.60), Bank of Baroda (up 5.95% to Rs 300), Union Bank of India (up 6.15% to Rs 156.20), Oriental Bank of Commerce (up 3.19% to Rs 259), and Punjab National Bank (up 3.76% to Rs 573.95) gained from the banking pack.

State-run Central Bank of India on Friday, 13 July 2007, set Rs 85-Rs 102 per share price band for its IPO.

Allahabad Bank jumped 9.32% to Rs 100.25 on posting a 56.26% growth in net profit in Q1 June 2007 to Rs 200.40 crore as against Rs 128.25 crore in Q1 June 2006. Total operating income was up 38.63% to Rs 1,440.45 crore (Rs 1,039.05 crore). The results were announced during market hours today, 16 July 2007.

Auto major Bajaj Auto jumped 4.11% to Rs 2,264 on reports the two-wheeler maker is looking for an acquisition in the European motorcycle market. As per reports, ace bike makers Ducati Motor Holding of Italy and Triumph Motorcycles of the UK are among the possible targets for acquisition.

Telecom services provider Reliance Communication moved up 3.44% to Rs 573.80 on reports that it had signed an agreement to acquire US-based Yipes for $300 million. The stock also struck an all-time high of Rs 572.70. Yipes Enterprise Services, Inc, the leading provider of managed, end-to-end gigabit ethernet solutions, is a privately held company backed by top tier investors.

Metal stocks saw mixed trend today, after gaining in the past two sessions. Rio Tinto Group’s $38-billion bid on Thursday, 12 July 2007, for Alcan has sparked speculation of more takeovers across the globe in metal space. The BSE Metal Index rose 0.75% to 12,090.98. Hindalco Industries surged 4% to Rs 181.35. Maharashtra Seamless (up 1.07% to Rs 666), Jindal Saw (up 1.47% to Rs 692.50) and Nalco (up 3.40% to Rs 298) advanced.

However Tata Steel (down 0.18% to Rs 693.50), Hindustan Zinc (down 1.61% to Rs 785.10),and Sail (down 0.75% to Rs 158.40), edged lower

Cement stocks gained on expectations of good Q1 June 2007 earnings. ACC (up 2.30% to Rs 1,121), Ambuja Cements (up 3.65% to Rs 133.60), Birla Corporation (up 1.45% to Rs 295), UltraTech Cement Company (up 3.71% to Rs 963) and Shree Cements (up 9.64% to Rs 1,500) edged higher

State-run oil exploration major Oil and Natural Gas Corporation (ONGC) gained 1.60% to Rs 915 on its plans to expand its presence in the power sector by adding about 2,700 MW of gas-based generation capacity, for both captive and commercial use, through three plants. The plant at the company's special economic zone at Dahej in Gujarat is touted to be biggest among the, 1,000-MW gas-based plants.

Index heavyweight Reliance Industries (RIL) was up 0.20% to Rs 1,772, on 3.80 lakh shares. The stock is eyeing an all-time high of Rs 1,786.40, which was hit on Friday, 13 July 2007.

Engineering & construction major Larsen & Toubro (L&T) rose 0.30% to Rs 2407 after it secured contracts worth $177.75 million for different projects in the hydrocarbon sector in the Gulf region. L&T-led consortium also bagged orders worth Rs 1,070 crore for supply and installation of sinter plant and other packages from Tata Steel.

FMCG major Hindustan Unilever slumped 2.66% to Rs 197.25, on high volumes of 26.58 lakh shares. A block deal of 12.04 lakh shares was struck on the counter on BSE at Rs 201.85 per share by 10:08 IST. It was the top loser from the Sensex pack. The BSE FMCG Index lost 0.97% to 1,846.03

Pharma shares slipped on profit booking. Cipla (down 1.63% to Rs 207.90), Ranbaxy Laboratories (down 2.05% to Rs 346), and Dr. Reddy’s Laboratories (down 1.17% to Rs 660.50) slipped. A strong rupee impacts the margin of pharma companies. The BSE Healthcare index was down 0.9% to 3,814.80.

IT pivotals remained subdued throughout the day. The BSE IT Index lost 1.01% at 4,848.27, and was the top loser among the sectoral indices on BSE.

Satyam Computer (down 2.58% to Rs 480.50), Wipro (down 2.46% to Rs 500), TCS (down 0.87% to Rs 1127) and Infosys (down 0.01% to Rs 1940) edged lower.

The rupee rallied further against the US currency and breached 40.40 level during morning trading, buoyed by dollar selling by exporters and banks coupled with the sliding dollar in the overseas markets. The local currency resumed higher at 40.40/42 per dollar against Friday's (13 July 2007) close of 40.42/4250 per dollar and later rose to 40.37/38 a dollar in late morning deals

Shares of mid-cap IT stocks tumbled on intense selling pressure on concerns of slowdown in growth rates as the Indian rupee firmed up against the US dollar. CMC (down 5.54% to Rs 1227), iGate Global Solutions (down 3.35% to Rs 268), i-flex Solutions (down 1.45% to Rs 2475), Polaris Software (down 1.03% to Rs 148.50), MphasiS BFL (down 5% to Rs 285), and NIIT Technologies (down 2.76% to Rs 493), were offloaded from the mid-cap IT pack.

Shares from the real-estate sector surged in the belief that interest rates have peaked and the Reserve Bank of India may not raise them further in its monetary policy review on 31 July 2007. Orbit Corporation (up 7.41% to Rs 348.55), Indiabulls Real Estate (up 9.63% to Rs 560) and DLF (up 1.75% to Rs 610) advanced. The BSE Realty index, launched recently by BSE on 10 July 2007, jumped 1.80% at 7,917.93, and was the top gainer among the sectoral indices on BSE.

Mastek surged 16.75% to Rs 332.80 after it announced today, 16 July 2007, before market hours the acquisition of Vector Insurance Services LLC (Vector), a technology solutions provider and third party administrator that focuses on the North American life & annuity insurance industry. Under the terms of the agreement, the Mastek’s wholly owned US subsidiary MajescoMastek will hold 90% equity stake in Vector. The consideration for this acquisition will be paid partly in cash and partly by way of future cash earn outs. The acquisition is being funded through internal accruals.

Power Finance Corporation jumped 14.07% to Rs 199.85 after its net profit soared 103.18% to Rs 308.64 crore in Q1 June 2007 as against Rs 151.90 crore in Q1 June 2006. Total income flared up 35.57% to Rs 1,145.80 crore in Q1 June 2007 (Rs 845.13 crore).

Eicher Motors rose 0.86% to Rs 346 on reports that South Korea's Hyundai Motor Company may acquire a stake in the Indian automobile maker. As per report, Korea’s automotive giant Hyundai Motor is planning to start commercial vehicle business in India and, therefore, is said to have initiated talks with Eicher group with an intention to acquire a stake in Eicher Motors.

Modern Steels galloped 20% to Rs 66.10 after it said its board will consider a bonus issue on 24 July 2007.

Jaiprakash Associates slumped 3.69% to Rs 838 despite reporting a 54.34% rise in net profit in Q1 June 2007 to Rs 140 crore compared to Rs 92 crore in Q1 June 2006. Total income increased 8.76% to Rs 1,005 crore (Rs 924 crore). The results were announced before market hours today, 16 July 2007.

Idea Cellular gained 3.22% to Rs 125. Idea Cellular added 8.59 lakh users in June 2007 as compared to 7.03 lakh users in previous month

Real-estate developer Parsvnath Developers was up 0.01% to Rs 378.15. Its subsidiary got government nod for the development of a bio-technology and pharma special economic zone (SEZ) in Andhra Pradesh. It will cover 25 acres at Genome Valley Biotech Park, Phase-III, Hyderabad (Andhra Pradesh). This state-of-the art SEZ envisages a developable area of 21.5 lakh squre feet with an investment of Rs 400 crore.

Subros jumped 8.90% to Rs 241.70 after the company said its board will meet on 30 July 2007 to consider a stock split. The company’s equity capital is Rs 12 crore, with 1.2 crore outstanding shares of a face value of Rs 10 each.

Ashok Leyland rose 1.02% to Rs 39.45 on forming a joint venture with automotive supplier Siemens VDO Automotive AG, Germany to design, develop and adapt infotronics products and services for the transportation sector. The equity of the JV Company will be held at a ratio of 50:50 between the company & Siemens VDO. The JV is subject to certain corporate and statutory approvals from both sides.

Asian markets were trading on a mixed note today, 16 July 2007, with shares in Singapore setting a record intra-day high after US blue chips' record performance on Friday, 13 July 2007. South Korea's Kospi was volatile as investors booked profits in shipbuilding shares.

Hong Kong's Hang Seng (down 0.63% at 22,953.94), South Korea's Seoul Composite (down 0.68% at 1,949.51), Taiwan's Taiwan Weighted (down 0.57% at 9,415.31), Singapore's Straits Times (down 0.04% at 3,653.23) and Shanghai Composite (down 2.36% to 3,821.96) slipped.

Japanese market is closed today for public holiday.

Most of the European markets were trading higher

US stocks rose further into record territory on Friday, 13 July 2007, and posted strong weekly gains as investors continued the previous session's record rally after in-line earnings from General Electric Co. and a jump in a consumer-confidence survey. The Dow Jones Industrial Average rose 45.52 points to a record 13,907.25, while the Standard & Poor's 500 Index gained 4.80 points to a record finish of 1552.50.

Oil prices inched up Monday, 16 July 2007, amid concerns over production in the North Sea. Light, sweet crude for August delivery gained 5 cents to $73.98 a barrel in Asian electronic trading on the New York Mercantile Exchange, midmorning in Singapore.