Sensex settles above 14,400

The market surged in the second half of the trading session as fears of immediate elections eased after India's biggest communist party, Communists Party of India (Marxists), or CPM, said after trading hours on Thursday, 23 August 2007, it does not want to pull down the government over a nuclear deal with the United States. The market saw a bout of volatility. Despite the rally today, the turnover was dull.

The highlight of today's trading session was that the domestic market ignored weak global cues. Most of the Asian markets and European markets were trading lower today, 24 August 2007. US markets settled flat on Thursday, 23 August 2007. Over the recent past, local bourses have been closely tracking world markets.

India's wholesale price index rose 4.10% in the 12 months to 11 August 2007, slightly up from the previous week's 4.05%, due to higher food and manufactured product prices, government data showed on Friday, 24 August 2007.

The BSE 30-share Sensex rose 260.89 points or 1.84% to settle at 14,424.87. It had opened higher at 14,237.26 and advanced further to hit 14,455.49 as buying continued. The index slipped to a low of 14,163.61. It had oscillated in a range of 291.88 points for the day.

The S&P CNX Nifty was up 75.20 points or 1.83% at 4190.15. The Nifty August 2007 futures settled at 4169.90, a discount of 20.25 points as compared to the spot closing

The market breadth was positive on BSE with 1581 shares advancing as compared to 1112 that declined, while 62 remained unchanged.

The BSE Mid-Cap Index settled 1.4% higher at 6,190.45, while the BSE Small-Cap Index gained 1.32% to7,522.25. But both the indices underperformed the broad market index.

The total turnover on BSE amounted to Rs 3608 crore as against Rs 4914.46 crore on Thursday, 23 August 2007. The NSE F&O turnover was Rs 43336.32 crore as compared to Rs 56000.15 crore on Thursday, 23 August 2007.

All the sectoral indices on BSE settled higher. The BSE Metal index (up 2.84% to 10,276.60), BSE PSU index (up 2.30% to 6,626.05), BSE Auto index (up 2.37% to 4,569.26) and BSE Capital Goods index (up 2.31% to 12,622.23), were outperformers compared with the broad market index.

BSE Oil & Gas index (up 1.78% to 7,516.68), BSE Realty index (up 0.45% to 6,783.21), BSE Bankex (up 1.36% to 7,315.43), BSE Health Care index (up 1.10% to 3,424.02), BSE Consumer Durables (up 0.64% to 3,987.01), BSE TECk index (up 1.48% to 3,466.72), BSE FMCG Index (up 0.84% to 1,877.97), and BSE IT index (up 1.20% to 4,408.48) were underperformers compared to broad market index.

Among the 30-member Sensex pack, 27 advanced while only 3 of them slipped.

India’s top truck maker Tata motors jumped 6.11% to Rs 660.15 on 4.08 lakh shares. It was the top gainer from the Sensex pack. On Thursday, 23 August 2007 it launched two light commercial vehicles, Magic and Winger in the metropolis. Magic and Winger are being produced in the Pune facility of the company. The stock had lost 14.31% in the past one month to Thursday, 23 August 2007.

Reliance Energy (up 4% to Rs 734), and ACC (up 3.75% to Rs 1008.90) were the other gainers from the Sensex pack.

India’s leading power equipment maker Bharat Heavy Electricals gained 5.32% at Rs 1750. It had bagged contracts worth Rs 6500 crore for setting up power project units on Wednesday, 22 August 2007. The orders were placed by Damodar Valley Corporation (DVC).

India’s biggest engineering & construction firm by sales L&T rose 1.61% to Rs 2435. L&T has sought shareholders' nod for raising up to $700 million through issues that could include global depositary receipts (GDRs), American depositary receipts (ADRs), foreign currency convertible bonds or other equity related instruments.

State Bank of India, the country’s largest bank by net profit, advanced 3.81% to Rs 1469 after the Parliament on Thursday, 23 August 2007, passed a bill to replace an ordinance enabling transfer of the Reserve Bank of India’s stake in State Bank of India to the Union government.

The SBI (Amendment) Bill, 2007 was approved by the Rajya Sabha by a voice vote yesterday, while it got the Lok Sabha’s clearance on Tuesday, 21 August 2007.

A block deal on the SBI counter was executed in the FII segment of NSE on Thursday, 23 August 2007. The strike price was Rs 1750, a premium of 23.70% over the ruling market price.

India’s biggest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 2% to Rs 1778 on 5.62 lakh shares. The Empowered Group of Ministers, formed to look into pricing and utilisation of natural gas produced from new fields like the KG-D6 of RIL, is likely to hold its first meeting on 27 August 2007. RIL had proposed increase in gas price from $4.33 per million British thermal unit to $4.58, which was opposed by key consuming sectors like fertiliser and power.

Cement shares rallied for the second straight day today, 24 August 2007 following Swiss cement major Holcim’s open offer to acquire an additional 20% stake in Ambuja Cement, India’s second largest cement producer by sales, yesterday, 23 August 2007.

ACC (up 3.75% to Rs 1008.90), UltraTech Cement (up 0.55% to Rs 872.60), Birla Corporation (up 5.71% to Rs 277), India Cements (up 5.73% to Rs 229.75), Ambuja Cement (up 2.34% to Rs 135.85), and Grasim Industries (up 0.42% to Rs 2762) ended higher.

Switzerland's Holcim yesterday, 23 August 2007 said it had acquired a 3.9% additional stake in Ambuja Cements from the founding families at Rs 154 share, in a deal worth $220 million. This will be followed by an open offer.

IT shares also participated in the rally today. Satyam Computers (up 3.36% to Rs 436.90), Wipro (up 1.25% to Rs 454), TCS (up 1.02% to Rs 1017.95), and Infosys (up 0.39% to Rs 1815.50), all posted gains. The Indian rupee was hovering at 41.07 against the dollar, almost unchanged from Thursday (23 August 2007)’s close of 41.04/41.06

HDFC Bank (down 0.25% to Rs 1097), Dr Reddy’s (down 0.29% to Rs 629) and Bajaj Auto (down 0.50% to Rs 2217), were the losers from the Sensex pack.

SEL Manufacturing Company galloped 16% to Rs 215.30 on huge volumes of 1.02 crore shares after it received an export order for exporting readymade garments to the extent of $18 million (approximately Rs 73.80 crore). It was the top traded counter on BSE with turnover of Rs 212.20 crore

Among the side counters, Patel Airtemp (up 20% to Rs 41.75), Vadilal Industries (up 20% to Rs 56.20), Stewarts & Lloyds (up 13.33% to Rs 170), Steelcast (up 12.58% to Rs 200), and Asian Granito (up 12.45% to Rs 106.55), advanced

Alfred Herbert (down 11.95% to Rs 147), Jindal Worldwide (down 9.09% to Rs 123), Sutlej Industries (down 5.31% to Rs 65.10), Wpil (down 5.12% to Rs 40.80), and Era Construction (down 5% to Rs 468.05) slipped.

Western India Shipyard jumped 4.86% to Rs 17.25 on reports ABG Shipyard plans to buy the company for Rs 200 crore. ABG Shipyard slumped 6.46% to Rs 474.50. Reportedly, ABG Shipyard will get management control and a 40% stake in the company held by financial institutions led by ICICI Bank. The deal will not be followed by an open offer as it is a court-initiated sale.

Gujarat State Petronet spurted 3.55% to Rs 55.55 after it approved issuing up to 22 million preference equity shares to International Finance Corporation. The approximate equity investment by IFC would not exceed $30 million.

ICSA (India) soared 10% to Rs 1561.15 after it announced its board would meet on 30 August 2007 to consider a stock-split.

Panoramic Universal vaulted 4.85% to Rs 107 after announcing a board meet on 30 August 2007 to consider raising Rs 65 crore through a rights issue. The board will also consider issuing non-convertible preference shares to promoter group on private placement basis to raise Rs 50 crore.

Cairn India slipped 0.86% to Rs 143.90 despite reports of the government approving the company's proposal to lay the 582-kilo metre pipeline from Barmer district of Rajasthan to Gujarat coast for transporting crude oil it had discovered in Rajasthan

Turnkey construction firm Madhucon Projects galloped 8.80% to Rs 243.80 after a large block deal of 11 lakh shares changed hands at Rs 229 per share on the BSE. The block deal constituted nearly 3% of its equity capital of the company.

Jaiprakash Hydro-Power rose 3.89% to Rs 45.40, after NSE lifted the ban on its trading in the F&O segment on the stock from today, 24 August 2007.

Financial Technologies (India) (FTIL) was up 0.49% to Rs 2040 after it bought 4.50 lakh shares of NSE from ICICI Bank at an outlay of Rs 125 crore, yesterday 23 August 2007. The average share price of NSE works out to be Rs 2778.

Chennai Petroleum slumped 6.82% to Rs 245.10 after it turned ex-dividend of Rs 12 per share today. It has face value of Rs 10 each.

Mercator Lines (MLL), the Mumbai-based shipping company rose 3.20% to Rs 53.60 on reports that it is raising around $250 million in the largest-ever Indian offering in Singapore. It will offload 30% stake in its wholly-owned subsidiary Mercator Lines (Singapore) through the proposed IPO.

Chennai-based Aban Offshore gained 3.20% to Rs 2634.90 on reports it is planning to list its wholly-owned subsidiary, Aban Singapore, in Singapore. The subsidiary was the vehicle used to acquire the Norwegian company Sinvest in 2006.

Areva T&D India rose 4.84% to Rs 1480 after securing turnkey sub station contract from Essar Steel worth Rs 63 crore. Also, Maharashtra State Electricity Transmission Company (MSETCL) awarded a turnkey solutions order worth Rs 33.90 crore to the company.

Chambal Fertilisers & Chemicals jumped 4.33% to Rs 46.65 on reports that its subsidiary is likely to sign an MoU with the Orissa government for setting up a 2,000-mega watt thermal power project with an investment of Rs 8,000 crore in the state. The project will come up at Saria in Dhenkanal district.

Shree Renuka Sugars declined 0.37% to Rs 460.80. It announced before market hours today, 25 August 2007, that it has completed the acquisition of the ethanol plant of Dhanuka Petro-Chem, a division of Dhanuka Cold Storage located at Khopoli, Maharashtra for a total consideration of approximately Rs 6 crore. The company has plans to increase the ethanol capacity of this unit from 100 klpd to 250 klpd, in the near future.

It also set up a wholly owned subsidiary viz. Shree Renuka Biofuels Holdings FZE in Sharjah International Free Zone (SAIF Zone) for its overseas investments.

Reliance Capital (RCL) gained 3.16% to Rs 1089 after it reportedly picked up 26% stake in Victory Transformer & Switchgear (VTSL), a fully-integrated transformer manufacturing company, for Rs 75 crore. VTSL’s revenue has grown at a CAGR of 89% over the last two years, and it has an order book of over Rs 200 crore.

HCL Infosystems edged higher by 6% to Rs 174.35 on reports that it has bagged a contract from BSNL includes convergent billing and customer relationship management for BSNL and would be implemented in 18 months, worth Rs 500 crore

Though CPM softened its stand on withdrawing support to the ruling coalition government at the Centre, it reiterated the government should not go ahead with negotiations with the International Atomic Energy Agency and Nuclear Suppliers Group over a nuclear deal with the US.

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.

Most of the Asian markets settled lower today, 24 August 2007. Hang Seng (down 0.20% at 22,921.89), Japan's Nikkei (down 0.41% at 16,248.97), Taiwan's Taiwan Weighted (down 0.49% at 8,690.09), Singapore's Straits Times (down 0.04% at 3,369.45) and South Korea's Seoul Composite (down 0.47% at 1,791.33) edged lower.

However, Shanghai Composite was up 1.49% to 5,107.66. It also struck an all time high of 5,125.35

Most of the European indices were trading lower today, 24 August 2007. UK's FTSE 100 (up 0.10% to 6,203.90) and CAC 40 (up 0.15% to 5,531.81) rose while DAX lost 0.39% to 7,482.86.

The US market ended on flat note yesterday, 23 August 2007. The Dow Jones Industrial Average closed almost unchanged at 13,235.88, marginally down by 0.25 points. Tech-heavy Nasdaq dropped 11.1 points to close at 2,541.7. S&P 500 lost 1.57 points to end at 1,462.5.

Oil prices steadied at below $70 a barrel on Friday, 24 August 2007, after Mexico's state oil firm said Gulf oil rigs suffered only minor damage from powerful Hurricane Dea. US light crude for October delivery dipped 5 cents at $69.78 a barrel.