Sensex gains 81 points on firm global markets

The market saw volatile swings in fag session of day, after staying firm throughout the day. It had opening on a firm note today, 30 August 2007, as US stocks rallied overnight on expectation that the US Federal Reserve would cut rates in September 2007 to cushion the impact of the subprime crisis on the broader US economy.

Key Asian and European markets were trading higher today, 30 August 2007.

The BSE 30-share Sensex rose 81.06 points to 15,074.10, as per provisional closing. It opened with a 175.65-point upward gap at 15,168.69 and advanced further to hit a high of 15,200.81. The index touched a low of 15,053.98. It oscillated in a range of 114.71 points for the day

The S&P CNX Nifty rose 9.35 points to 4,398.35, as per provisional closing.

The total turnover spiked in last one hour of trade. On BSE it amounted to Rs 5,378 crore as compared to Rs 4,181 crore by 14:30 IST. Turnover aggregated Rs 4,815 crore yesterday, 29 August 2007.

The market breadth was strong on BSE, with 1,578 shares advancing as compared to 1112 that declined, while 84 remained unchanged.

Among the 30-member Sensex pack, 21 advanced while the rest declined.

Mahindra & Mahindra, the country’s top tractor maker by sales, rose 2.47% to Rs 672 on 1.15 lakh shares. It was the top gainer from Sensex pack. The stock rose 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.

India's top truck maker Tata Motors rose 0.59% to Rs 679, off its day’s high of Rs 699.

Banking shares advanced on fresh buying on a view that interest rates have peaked. ICICI Bank (up 1.46% to Rs 869.50), and HDFC Bank (up 2.02% to Rs 1180), advanced.

Market expectations peg inflation rate at 3.94% for 12 month to 18 August 2007 compared to previous week’s 4.1%. The data will be released by the government tomorrow, 31 August 2007, afternoon.

India’s largest pharma company by sales Ranbaxy Laboratories rose 1.60% to Rs 378. Recently, US Food and Drug Administration gave approval to the company to make and market two drugs hydrocodone bitartrate and acetaminophen prescribed for pain relief. Total annual market sales of the drugs were $391 million.

India's largest firm by market capitalisation and oil refiner Reliance Industries (RIL) slipped sharply just before closing bell. It was up marginally by 0.11% to Rs 1891.80 on 8.96 lakh shares, after surging to a high of Rs 1924. A newspaper reported on Wednesday, 29 August 2007, the government is likely to approve a pricing formula for the company's natural gas within a few days. The stock had hit an all- time high of Rs 1948 on 26 July 2007.

India’s second largest software services exporter Infosys Technologies rose 1.42% to Rs 1860. As per report, Infosys Technologies plans to increase billing rates for new customers by 3-4% due to the sharp appreciation of the rupee against the dollar. The billing rates for existing contracts could increase by 2-3%. Infosys gets about 60% of its revenue from the United States.

Tata Consultancy Services (TCS), the country’s leading software services exporter rose 0.80% to Rs 1040 after it won a deal worth Rs 574 crore ($ 140 million) over a multi period from BSNL to provide comprehensive range of telecom services.

The rupee was hovering at 41.13, slightly weaker than Wednesday (29 August 2007)’s close of 41.10/41.11

Cipla, the country’s third largest pharma company by sales lost 2.50% to Rs 165.50 on 8.71 lakh shares. It was the top loser from the Sensex pack.

Reliance Energy (down 1.80% to Rs 768.10), State Bank of India (down 0.74% to Rs 1563.25) and Bharti Airtel (down 0.53% to Rs 875) were the other losers from the Sensex pack.

India’s largest power equipment maker by sales Bhel declined 0.87% to Rs 1835.30, off the session’s high of Rs 1884, after the company won a Rs 1990-crore order for supply and installation of power equipment to a project in southern India.

Tata Steel, the world's sixth largest steel manufacturer lost 0.51% to Rs 656.50. It came off sharply from day’s high of Rs 679.80. It had surged 9.2% to Rs 659.85 yesterday, 29 August 2007 after it recorded a consolidated net turnover of Rs 31,155 crore for Q1 June 2007, an increase of 442% over the same period last year, on the back of Corus acquisition.

Its consolidated operating profit surged 186% to Rs 4,904 crore in Q1 June 2007 over Q1 June 2006. The results also include an extraordinary item of Rs 4,121 crore primarily representing actuarial gains due to increase in yield rates on bonds held by various pension funds of Corus.

Three block deals of 18.85 lakh shares each were struck in Axis bank counter at an average rate of Rs 614 per share on BSE in opening trade. The stock rose 2.44% to Rs 627 on high volume of 82.33 lakh shares.

Key benchmark indices in Europe including Germany (up 0.09% to 7,445.59), France (up 0.61% to 5,553.47), and United Kingdom (up 0.43% to 6,158.50), advanced

All Asian markets were trading higher today, 30 August 2007, except Singapore's Straits Times (down 0.41% at 3,321.15). Hang Seng (up 2.02% at 23,486.29), Shanghai Composite (up 1.14% to 5,167.57), Japan's Nikkei (up 0.88% at 16,153.82), Taiwan Weighted (up 1.48% at 8,772.20), and South Korea's Seoul Composite (up 0.85% at 1,841.70) edged higher.

US stocks rallied across the board on Wednesday, 29 August 2007 boosted by strong gains in technology and energy shares. The Dow Jones Industrial Average surged 247 points, or 1.9%, to 13,289. The S&P 500 index rose 31 points, or 2.2%, to 1,463 and the technology-laden Nasdaq Composite rallied 62 points, or 2.5%, to 2,563 points.

August 2007 futures & options (F&O) contracts expired today. As per reports, the marketwide rollover from August 2007 series to September 2007 series stood at 64.7% as compared to 60% in July 2007 expiry, so far. The Nifty rollover was 64% as against 61% in July 2007 series.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 163.73 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 65.48 crore on Wednesday, 29 August 2007.

Crude oil prices steadied on Thursday, 30 August 2007. US crude inched up 2 cents to $73.53 a barrel.

The BSE 30-shares Sensex advanced 73.85 points, or 0.50%, to 14,993.04, on Wednesday, 29 August 2007. The S&P CNX Nifty rose 38.60 points, or 0.89%, to 4,359.30, on Wednesday, 29 August 2007.

From a recent low of 13,989.11 on 21 August 2007, the Sensex has surged 1,004 points to 14,993.04 on 29 August 2007.

The United Progressive Alliance (UPA) and the Left parities are expected to firm up a mechanism on Thursday, 30 August 2007, to address the concerns of the allies on the Indo-US nuclear deal. The four Left parties met on Wednesday, 29 August 2007, to chalk out their joint strategy ahead of their meeting with UPA leaders on the issue.

The Communist Party of India (CPI) on Tuesday, 28 August 2007, said it had no intention of destabilising the government and force an immediate election on the contentious Indo-US nuclear deal issue. The party, however, wanted its concerns on the deal to be addressed by the ruling coalition by a mechanism, like a committee at the political level, to clarify all doubts on 123 agreement and allied matters like the Hyde Act.

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 remains unresolved. In a meeting of government with the Left party leaders held on Monday, 27 August 2007, Left parties had 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 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