Market extends gains

The market settled with decent gains as buying emerged for index pivotals. IT pivotals led the rally along with index heavyweight Reliance Industries (RIL). Yet, weak global markets capped upside. On the flip side, value buying coupled with short covering provided support at lower level.

Asian markets settled on mixed note today, 28 August 2007. Some of these markets recovered from initial weakness. However, all European markets were trading lower. US markets closed lower on Monday, 27 August 2007.

The BSE 30-share Sensex gained 76.81 points or 0.52% at 14,919.19. It had opened slightly lower at 14,841.61 and slipped further to hit a low of 14,751.68, in early trade. However it rebounded from lower levels to hit a high of 14,952.04 at 15:12 IST.

From the recent low of 13,989.11 on 21 August 2007, the Sensex has recovered 930 points or 6.65% at current 14,919.19

The S&P CNX Nifty rose 18.10 points or 0.42% at 4320.70. The Nifty August 2007 futures settled at 4298.80, a discount of 21.90 points as compared to spot closing

The total turnover on BSE amounted to Rs 4096 crore as against Rs 4,017.17 crore on Monday, 27 August 2007. The NSE F&O turnover was Rs 57,340.78 crore as compared to Rs 52749.11 crore on Monday, 27 August 2007.

The market breadth was strong on BSE, with 1593 shares advancing as compared to 1061 that declined, while 75 remained unchanged.

The BSE Mid-Cap index rose 0.77% to 6,409.64 while the BSE Small-Cap index settled with gain of 1.07% to 7,808.44. Both these indices outperformed the Sensex.

Volatility is expected to remain high in the next three days ahead of the expiry of derivatives contracts for August 2007 series on Thursday, 30 August 2007.

Among the 30-member Sensex pack, 19 rose while the rest declined.

India’s largest aluminium manufacturer Hindalco Industries advanced 3.10% to Rs 153 on 12.08 lakh shares. It was the top gainer from the Sensex pack. As per recent reports it plans to make inroads into supplies for the car market which has so far been dominated by steel manufacturers. Hindalco will soon make high-grade aluminium products for the body-in-white segment for cars.

Other metal counters, Tata Steel (up 0.50% to Rs 606), Hindustan Zinc (up 1.68% to Rs 697), and Sail (up 2.61% to Rs 153.35), also edged higher. The BSE Metal Index rose 1.04% to 10,748.27

IT pivotals made a comeback today, as rupee weakened against the dollar. Satyam Computers (up 2.10% to Rs 448) and Infosys (up 1.72% to Rs 1880), gained from IT pack. The BSE IT Index gained 1.91% at 4,558.76, and was the top gainer among the sectoral indices on BSE

TCS, the country’s largest software services exporter rose 0.13% to Rs 1027, on reports it had signed a multi-year contract with Hawaiian Airlines to provide IT, business process outsourcing and infrastructure services. Reports suggest that the deal may be worth about $40 million.

India’s third largest software services exporter Wipro gained 0.11% to Rs 465.05 on reports that it plans to open a software development center in the US city of Atlanta that will employ mostly graduates from colleges and universities in the state of Georgia. The Atlanta facility will hire more than 200 people in the first year, and is expected to employ over 500 by the third year of operations.

Financial Technologies (up 10% to Rs 2300), HCL Technologies (up 2.88% to Rs 293) and Tech Mahindra (up 1.57% to Rs 120.50), gained from mid-cap IT pack.

Rupee was hovering at 41.17 as against yesterday's close of 41.01/41.02.

India’s largest private sector entity in terms of market capitalisation and oil refiner Reliance Industries soared to a high of Rs 1890. It settled 2.80% higher to Rs 1884.25 on 8.15 lakh shares. Reliance Industries (RIL) is reportedly entering into an alliance with Container Corporation of India (Concor), the country’s largest container train operator. Under the partnership, RIL will have access to several infrastructural facilities of Concor, including almost 60 terminals across the country. RIL intends to utilise these facilities as key warehousing points for Reliance Retail.

BSE Oil and Gas Index gained 1.5% at 7,839.17

FMCG stocks were in demand on fresh buying. The BSE FMCG Index gained 0.98% at 1,930.93. ITC (up 1.40% to Rs 167.35), Marico (up 3.11% to Rs 59.70), Britannia (up 0.30% to Rs 1590), and Nirma (up 1.46% to Rs 160), gained from FMCG pack.

Larsen & Toubro (L&T) rose 0.30% to Rs 2543 after L&T Capital Company, its group company invested around Rs 100 crore for a stake in Mysore based Rangsons Electronics, an electronic manufacturing services (EMS) provider.

India’s third largest pharma company in terms of net sales, Cipla was up 0.15% to Rs 170.55 on reports that company will replace all products with chlorofluorocarbons ahead of Montreal Protocol ban deadline.

ICICI Bank, the country’s largest private sector bank in terms of net profit, extended early fall. It lost 2.89% to Rs 858.20 on 11.72 lakh shares. It was the top loser from Sensex pack. The bank got a setback today, after the Reserve Bank of India made a strong case against intermediate holding companies to float holding companies for their insurance and mutual fund business. The regulator said any clearance for foreign investment in such a holding company by other regulators could be subject to “legal review”.

State Bank of India, the country’s largest bank in terms of net profit slipped to a low of Rs 1527 in early trade. However it recovered from lower levels and ended 0.10% lower at Rs 1555.50.

Led by ICICI Bank and SBI, Bankex fell 0.25% to 7,636.21, and was the top loser among the sectoral indices on BSE.

India’s largest listed cellular services provider Bharti Airtel declined 0.34% to Rs 874. As per reports, the Telecom Regulatory and Development Authority (Trai) has alleged that the company had violated the national numbering plan that designates short codes and numbers for value-added services. It has asked the company to immediately discontinue some services.

Ranbaxy laboratories (down 1.51% to Rs 365.25), ACC (down 1.40% to Rs 1022.40), and ONGC (down 1.13% to Rs 808.90) were the other losers from Sensex pack.

Sugar shares advanced in volatile market on renewed buying interest. Shree Renuka Sugars (up 2.82% to Rs 486.20), Bajaj Hindustan (up 2.90% to Rs 127.70), Sakthi Sugar (up 3% to Rs 64.40), and Mawana Sugar (up 5.80% to Rs 26.45), advanced. Bajaj Hindustan got a boost from reports that it will clinch an export deal for 60 lakh litres of rectified spirit from Japan.

K P R Mill settled at Rs 173.50 on the BSE, a discount of 22.89% as compared to IPO price of Rs 225. On BSE, 49.21 lakh shares of the scrip were traded. The stock had debuted at Rs 201.20 on BSE, a discount of 10.57% over the IPO price. It had hit a high of Rs 209.80 and a low of Rs 169.10.

Hindustan Motors surged 20% to Rs 29.75 on reports it plans to launch premium sports utility vehicles from the Mitsubishi stable in the price range of Rs 15-25 lakh within six months. The decision follows a surge in sales of Mitsubishi’s Pajero and Montero models during 2006-07. The SUVs will be manufactured at the company's Chennai plant.

Karnataka Bank was up 1.64% to Rs 179.50. As per reports, the bank has put its asset management joint venture on hold. The bank would need capital to fund its projected business growth of 20-22% and also for the non-life insurance joint venture. Reports also suggest that the bank is planning to enter into online broking in a tie-up with an established broking firm.

Vikas WSP, which was relisted yesterday, 27 August 2007, jumped 5% to Rs 38.03 today. It was suspended from trading on the BSE on 1 October 2001. As per reports, it has lined up Rs 735 crore for capital expenditure.

Federal-Mogul Goetze (India) surged 7.70% to Rs 171.25 after company approved rights issue aggregating Rs 106.33 crore. Its board of directors approved rights issue of 73.33 lakh equity shares of Rs 10 each at an issue price of Rs 145 per equity share (including a premium of Rs 135 per equity share) aggregating Rs 106.33 crore. The rights issue will be in the ratio of 29:100 (29 equity shares for every 100 equity shares held).

Automobile batteries-maker Exide Industries jumped 6.65% to Rs 60.15. The company’s board has approved a rights issue of up to 5 crore equity shares in the ratio of 1:15 (that is, one share for every 15 shares held), priced at Rs at Rs 30 per equity share.

GMR Infrastructure, which develops various infrastructure projects, moved up 6.46% to Rs 797.25. On Monday, 27 August 2007, the company's subsidiary GMR Energy secured a major hydropower project in Himachal Pradesh, after it paid the state government Rs 82 crore as premium upfront money.

IT solutions provider i-flex Solutions spurted 5.13% to Rs 2014.45. Recently, its Dutch unit, i-flex Solutions BV, had raised its stake in Greek unit i-flex Solutions SA to 90%. The Greek unit was incorporated in May 2007 with an investment of 35% by i-flex Solutions BV.

Nicholas Piramal India surged 3.93% to Rs 257.70 after it announced that its board will consider proposal for restructuring the company's research & development division by demerging its new chemical entity (NCE) research unit into a separate entity. The board meeting will be held on 31 August 2007.

Modern Dairies hit 5% upper circuit of Rs 95.05 on BSE after it fixed 1 October 2007 as record date for issue the 1:1 bonus shares.

UTV jumped 4.92% to Rs 485.95 on reports that it is in talks to rope in a strategic investor for its broadcasting business, which entails an investment of Rs 600 crore for nine channels. The broadcasting initiatives are under UTV Global Broadcasting which is privately held. UTV Global Broadcasting has three subsidiary companies which run the different lines of businesses.

Nagarjuna Fertilisers slipped 1.47% to Rs 33.60 after the National Stock Exchange (NSE) barred further F&O positions in the stock as 95% marketwide position limit was crossed on Monday, 27 August 2007.

Centurion Bank of Punjab rose 0.91% to Rs 38.80 after the private sector bank got Reserve Bank of India's approval for the merger of Lord Krishna Bank with it. The merger is effective from 29 August 2007 and Centurion will issue seven shares in itself for every five held in Lord Krishna, the bank said.

Mold-Tek Technologies was locked at upper limit of 5% at Rs 131.90 after its board approved to de-merge plastic business and merge Teck Men Tools with itself.

Auto ancillary maker Perfect Circle India jumped 5% to Rs 26.70 after it said during market hours on Monday, 27 August 2007, that acquirer Asia Investments has accepted delisting price of Rs 35 per share for acquiring balance stake of 15.70% from the public, as discovered in the reverse book building process which closed on 24 August 2007.

All European markets were trading weak today, 28 August 2007. Key benchmark indices in France (down 0.98% to 5,535.51), Germany (down 0.38% to 7,457.54) and United Kingdom (down 0.71% to 6,176) declined.

Asian markets settled on a mixed note today, 28 August 2007. South Korea's Seoul Composite (up 1.46% at 1,829.31), Taiwan Weighted (up 0.11% at 8,727.55) and Shanghai Composite (up 0.87% to 5,194.68) rose.

Hang Seng (down 0.91% at 23,363.76), Singapore's Straits Times (down 1.34% at 3,343) and Japan's Nikkei (down 0.09% at 16,287.49) slipped.

US shares slipped yesterday, 27 August 2007 after news that sales of existing homes slipped in July 2007 for a fifth straight month stirred concerns about the strength of the economy. The Dow Jones industrial Average fell 56.74 points, or 0.42%, to 13,322.13. Broader stock indicators also declined. The Standard & Poor's 500 index fell 12.58 points, or 0.85%, to 1,466.79, and the Nasdaq Composite index fell 15.44 points, or 0.60%, to 2,561.25.

Crude oil prices were steady at above $72 on Tuesday, 28 August 2007, with US refinery shutdowns reviving supply concerns. US crude rose 6 cents to $72.03 a barrel. London Brent gained 7 cents to $71.02 a barrel.

The UPA government and the Left parties, on Monday 27 August 2007, agreed to formalise a joint mechanism to address the latter’s objections on the civil nuclear deal with the US. But the Left’s main demand of not proceeding with International Atomic Energy Agency (IAEA) negotiations remained unresolved, even after a series of high-profile meetings between the two sides, reports suggest. In a meeting of government with the Left party leaders held on Monday, 27 August 2007, Left parties reiterated their that they would agree to participate in the mechanism, but the government shouldn't go ahead with next round of IAEA negotiations.

The proposed mechanism in the form of a committee will also decide how long the government will stall IAEA negotiations. However, the government has refused to give any time frame for the committee to finish its work

The Left Front’s opposition to the nuclear deal with US had stoked concerns over the past few days that if the Communist allies of the ruling coalition government at the Centre decide to pull their support, the government will be reduced to a minority, triggering fresh elections