Market rises for the fifth day in a row

The market rallied for the fifth straight session, as investors flocked to index pivotals. Data showing robust GDP growth in the April-June 2007 quarter, declining inflation, easing of political worries and firm Asian & European markets boosted sentiment. All the sectoral indices on BSE posted gains.

The BSE 30-share Sensex 196.86 points or 1.30% at 15,318.60. It opened higher at 15,131.36 and advanced further to hit a high of 15,350.91 at 12:04 IST.

The BSE Sensex has surged 1155 points, or 8.15%, in five trading sessions, from 14,163.98 on 23 August 2007 to 15,318.60 on 31 August 2007

The S&P CNX Nifty gained 51.70 points or 1.17% at 4,464. The Nifty September 2007 futures settled at 4,420.70, a sharp discount of 43.30 points as compared to spot closing

The market breadth was strong on BSE, with 1,653 shares advancing as compared to 1,049 that declined, while 73 remained unchanged.

The BSE Mid-Cap Index rose 1.90% to 6,608.42, outperforming the broad market. The BSE Small-Cap Index gained 1.29% to 8,060.52.

The total turnover on BSE amounted to Rs 5,038 crore as compared to Rs 5,668 crore on Thursday, 30 August 2007

The NSE’s F&O turnover was Rs 45,012.59 crore as compared to Rs 71282.94 crore on Thursday, 30 August 2007.

India's wholesale price index rose 3.94% in the 12 months to 18 August 2007, lower than the previous week's 4.10% due to a decline in some manufactured product prices, government data showed. It is the first time when annual inflation has fallen below 4% since the end of April 2006. The annual inflation rate was 5.12% in the corresponding week of the previous year.

India's economy in the April-June 2007 quarter grew at 9.3% from a year earlier, led by robust manufacturing and services. Manufacturing grew an annual 11.9% in the April-June 2007 quarter, lower than the 12.4% in the previous quarter. Services grew at an annual pace of 10.6%, while farming expanded by 3.8%.

The economic growth of 9.4% in the fiscal year that ended March 2007 was its fastest rate in 18 years. The central bank has set a target of 8.5% growth this fiscal.

The GDP data was released by the government at about 11:00 IST today, 31 August 2007.

Meanwhile, the UPA and the Left on Thursday, 30 August 2007 agreed on a compromise formula and also agreed on the formation of a committee to look at Left objections to the 123 agreement. The committee will look into certain aspects of the bilateral agreement including the implication of the Hyde Act on the 123 agreement, self-reliance in the nuclear sector and the implication of nuclear agreement on foreign policy and security cooperation.

All the sectoral indices on BSE posted gains. The BSE Auto Index (up 2.12% at 4,878.05), BSE Health Care Index (up 2.05% at 3,572.82), BSE Bankex (up 1.38% at 7,858.79), BSE Metal Index (up 2.38% at 11,565.81), BSE Realty index (up 1.76% to 7,241.65), BSE Oil and Gas Index (up 2.30% at 8,160.13) and BSE PSU index (up 2.11% to 7,095.44) outperformed the Sensex.

However, BSE Capital Goods Index (up 0.89% at 13,424.74), BSE FMCG Index (up 1.26% at 1,973.93), BSE IT Index (up 0.73% at 4,585.66), BSE Consumer Durables index (up 0.64% to 4,299.00) and BSE TecK index (up 0.94% to 3,626.58) were underperformers.

From the 30-member Sensex pack, 24 advanced while the rest declined.

Tata Steel, the world's sixth largest steel manufacturer soared 4.51% to Rs 687 on 18.92 lakh shares. The stock had spurted on Wednesday, 29 August 2007, after it recorded a surge in net profit in Q1 June 2007 over Q1 June 2006 based on consolidated financial performance taking into Corus' results. The results were unveiled during trading hours on 29 August 2007.

Auto stocks gained on momentum buying in the wake of possible merger & acquisition (M&A) activity. Also receding fears of hike in petrol prices triggered further buying.

Mahindra & Mahindra, the country’s top tractor maker by sales, rallied 4.50% to Rs 705.55, off its day’s high of Rs 722.15. In the past seven trading sessions till 30 August 2007, the stock had soared 10.30% to Rs 675.15, riding on reports that it is conducting due diligence on Jaguar and Land Rover, put up for sale by Ford. Other potential bidders include private equity groups TPG Capital, Cerberus Capital Management, Ripplewood Holdings, One Equity Partners and Tata Motors.

Tata Motors (up 2.80% to Rs 701) and Maruti Udyog (up 4.05% to Rs 867.50) were the other gainers from the auto pack.

However India’s second largest bike maker, Bajaj Auto lost 0.74% to Rs 2347, off sharply from its day’s high of Rs 2400.

NTPC, the country’s largest power generation company, surged 4.06% to Rs 172.95. The stock rose after both NTPC and Reliance Industries (RIL), involved in a legal battle in the Bombay High Court over supply of natural gas, yesterday, 30 August 2007, sought an early hearing and a final decision on the petition filed by NTPC.

NTPC had earlier argued that RIL agreed to supply gas to it from its new gas finds in Krishna Godavari basin, and the agreement was finalised. However, RIL is disputing the claim, saying that agreement was not yet final and was subject to negotiations on some points.

India’s largest private sector entity in terms of market capitalisation and oil refiner Reliance Industries galloped to an all-time high of Rs 1969.90 displacing its previous all-time high of Rs 1948 struck on 26 July 2007. It rose 2.50% to Rs 1955 on 11.88 lakh shares. RIL has gained 12.20% from the recent low of Rs 1742.60 on 23 August 2007.

India’s largest bank in terms of net profit, State Bank of India was up 1.56% to Rs 1596.90 after three block deals totaling 2.45 lakh shares were struck at an average price of Rs 1886.75 on the BSE. At the strike price of Rs 1886.75, the aggregate value of all deals work out to Rs 46.29 crore.

India’s third largest IT services provider Wipro rose 1.21% to Rs 482.45 on reports it plans to buy US analytics services provider marketRx, whose valuation is pegged at close to $160 million.

India’s second largest software services exporter Infosys Technologies is also in the race to acquire marketRx. It’s shares were, up 0.09% to Rs 1860.

Hindalco Industries, the country’s biggest aluminium producer slipped 0.93% to Rs 157 on 12.63 lakh shares. It was the top loser from Sensex pack.

HDFC Bank (down 0.77% to Rs 1173) and HDFC (down 0.69% to Rs 1972.30) were the losers from the Sensex pack

Sugar shares, which had surged in the previous two sessions on reports that a group of ministers (GoM) had recommended mandatory blending of 10% ethanol with petrol by October 2008 to deal with the massive oversupply of sugar, declined on profit booking.

Dwarikesh Sugar (down 4% to Rs 54), Sakthi Sugar (down 5.76% to Rs 74.50), Triveni Sugar & Industries (down 3.20% to Rs 79.25), Balrampur Chini Mills (down 3.66% to Rs 59.15), Shree Renuka Sugars (down 2.20% to Rs 526.20), Dhampur Sugar Mills (down 8.35% to Rs 50.50) and Bajaj Hindustan (down 2.2% to Rs 134.45) slipped.

Hindustan Zinc was up 3.14% to Rs 722 on reports that Sterlite Industries is planning to buy out the government’s 29.54% holding in the company. After the buyout of government holdings, Sterlite’s stake will go up to 94.47%, which is much beyond the minimum threshold level of 90% needed for de-listing a company.

GMR Infrastructure rose 0.17% to Rs 806 after fixing 8 October 2007 as record date for the purpose of split of equity shares from Rs 10 each into 5 equity shares of Re 2 each.

Nicholas Piramal India soared 6.47% to Rs 266.60 after its board approved the spinning off its novel drug discovery research operations into a separate company as part of restructuring its research activities. Nicholas Piramal shareholders will get one share in the new company for every 10 held.

Essar Oil rose 1.2% to Rs 52.10 on its plans to raise up to $750 million by way of issue of convertible bonds, Global Depositary Receipts, American Depositary Receipts and other instruments overseas.

GE Capital Transportation Financial Services rose 5.87% to Rs 100 after it said its board will meet on 7 September 2007 to consider rights issue to meet the capital to risk weighted assets of 10%, as prescribed by the Reserve Bank of India.

Paramount Communications surged 5.57% to Rs 28.45 on reports that it plans to buy UK-based AEI Cables, an unit of TT Electronics, for about Rs 260 crore. AEI Cables is a provider of cabling solutions to the industries like construction, defence, industrial, fire protection, mining, oil and gas, power and rail.

IT People (India) plunged 10% to Rs 31 after it withdrew its follow-on public offer (FPO) due to poor subscription. The FPO, subscribed a mere 0.30 times till 30 August 2007, was scheduled to close on 31 August 2007.

TVS Motors galloped 7.80% to Rs 65.75. It has reportedly entered into the executive segment of motorcycles with a brand new product. It has also forayed into the three-wheeler market and is pioneering the development of hybrid two-wheelers and a bike that will run on CNG.

United Phosphorus was up 2.89% to Rs 329.20, after a block deal of 1.30 lakh shares was struck on the counter at Rs 320 per share on the BSE by 10:00 IST.

Ahluwalia Contracts (India) advanced 5.61% to Rs 671 after it fixed 17 September 2007 as the record date for the purpose of splitting of equity shares of Rs 10 per share of the company into 5 shares of Rs 2 each.

Arvind Mills rose 3.56% to Rs 48 on reports it is planning to undertake a major restructuring exercise. The group will merge its strategic business units (SBUs) into two main divisions: apparels and textiles.

Stocks which will be included in derivatives segment were in demand. 3i Infotech (up 7.82% to Rs 148.30),Aptech (up 4.10% to Rs 299.95), Bhushan Steel (up 16% to Rs 766), Biocon (up 5% to Rs 455), CMC (up 6.88% to Rs 1046), Havell’s India (up 10.38% to Rs 510), Lakshmi Machine Works (up 5.05% to Rs 2890), NIIT Technologies (up 9.41% to Rs 308.80), Nucleus Software (up 3.33% to Rs 347.45), Sasken Communications (up 6.51% to Rs 342), Tech Mahindra (up 7.80% to Rs 1292.25), Tulip IT Services (up 6.52% to Rs 832), Yes Bank (up 10.58% to Rs 185.50) and Welspun Gujarat Stahl Rhoren (up 5.12% to Rs 246.65), surged. NSE said after trading hours on Thursday, 30 August 2007, it will include 14 additional stocks to futures & options to be effective from 6 September 2007.

All the European markets, which opened after the Indian markets, were trading higher. Key benchmark indices in United Kingdom (up 0.52% to 6,244.38), Germany (up 0.38% to 7,548.33), and France (up 0.72% to 5,632.79), gained.

All the Asian markets settled higher today, 31 August 2007. Japan's Nikkei (up 2.57% at 16,569.09), Taiwan's Taiwan Weighted (up 2.41% at 8,982.16), Hong Kong's Hang Seng (up 2.13% at 23,984.14), Shanghai Composite (up 0.99% to 5,218.82), Singapore's Straits Times (up 2.16% at 3,392.91), and South Korea's Seoul Composite (up 1.71% at 1,873.24), all edged higher.

US stocks fell yesterday, 30 August 2007, on mounting concerns that credit market upheaval will erode profits and hold back consumer spending. The Dow Jones industrial average lost 50.56 points, or 0.38%, to 13,238.73. The Standard & Poor's 500 Index was down 6.12 points, or 0.42%, to 1,457.64. The Nasdaq Composite Index was up 2.14 points, or 0.08%, to 2,565.30.

As per reports, the marketwide rollover of positions from August 2007 series to September 2007 series stood at 82.3%, while Nifty rollover was 70%. The high open interest positions indicates a bullish undertone. Liquidation of outstanding positions would have signalled a dim outlook on the future course of the market. The August 2007 futures & options (F&O) contracts expired on Thursday, 30 August 2007.

Crude oil prices steadied on Friday, 31 August 2007, as concerns over low oil stocks in the United States were compounded by a possible tropical storm forming in the Atlantic. US crude rose 24 cents to $73.60 a barrel while London Brent was up 21 cents at $72.11 a barrel.