Market rallies for ninth straight trading session

The market continued a winning streak and extended a string of record highs that it had hit over the past few days. Strong rollover from September 2007 futures to October 2007 futures boosted bourses today. Turnover on BSE was high, just under Rs 8,000 crore mark.

Despite the market holding positive zone, market breadth, which indicates overall health of the market, was negative on BSE. With today’s rally, the market has posted gains for ninth consecutive day, boosted by step-up of FII inflows. Metal, banking, FMCG and pharma stocks were in forefornt of today’s rally. However profit booking was witnessed in select oil & gas and IT pivotals.

European markets were weak and Asian markets were mixed today. US markets were steady overnight.

The wholesale price index rose 3.23% in the 12 months to 15 September 2007, lower than previous week's 3.32%, due to a fall in some food prices, government data released at about 12:00 IST today showed.

The 30-shares BSE Sensex was up 140.54 points or 0.82% at 17,291.10. It opened higher at 17,152.31 and advanced further to hit an all-time high of 17,361.47.

At the day’s high of 17,361.47, the Sensex had gained 210.91 points for the day.

From a recent low of 13,989.11 on 21 August 2007, Sensex surged 3,301.99 points or 23.60% in 28 trading sessions to 17,291.10 on 28 September 2007. FII buying boosted the bourses in this period.

The S&P CNX Nifty rose 20.80 points or 0.42% at 5,021.35. It struck an all time high of 5055.80. The Nifty October 2007 futures settled at 5,038, a premium of 16.65 points as compare to spot closing of 5,021.35.

The market had opened on a firm note and extended early gains to hit record high in early afternoon trade as following a healthy rollover of derivatives positions from September 2007 contracts to October 2007 contracts. It had come sharply off higher level in early afternoon trade, before bouncing back again later.

The breadth was slightly negative on BSE. 1392 shares declined as compared to 1362 that advanced on BSE. 58 remained unchanged. It was strong in morning trade. Interestingly in the past six trading days when the market has surged, the market breadth in contrast to the firm trend was negative in five sessions.

The BSE Mid-Cap index was up 1.23% to 7,422.43. The BSE Small-Cap index rose 0.59% to 9,099.93. It hit an all time high of 9,136.32 in intra-day trade.

The total turnover on BSE amounted to Rs 7915 crore as compared to Rs 7,750.07 crore yesterday, 27 September 2007

The NSE F&O turnover was Rs 56,998.5 crore today as compared to a record Rs 86,226.41 crore on Thursday, 27 September 2007

Sectoral indices on BSE displayed mixed trend. BSE Metal Index (up 3.28% at 13,944.83), BSE Health Care Index (up 1.72% at 3,784.21), BSE Auto Index (up 1.17% at 5,332.26), BSE Realty index (up 1.63% to 9,178.53) and BSE FMCG Index (up 1.94% at 2,161.35) outperformed the Sensex.

However BSE Capital Goods Index (down 0.08% at 14,679.84), BSE TecK index (down 0.49% to 3,766.00), BSE IT Index (down 0.34% at 4,627.83), BSE Oil and Gas Index (down 0.81% at 9,561.95), BSE Consumer Durables index (up 0.07% to 4,804.24), BSE PSU index (up 0.77% to 8,202.07), were underperformers.

Among the 30-member Sensex pack, 20 advanced while the rest declined.

India’s second largest power utility company in terms of revenue Reliance Energy (REL) extended early surge. It jumped 8.82% to Rs 1215.80 on 35.31 lakh shares. It hit an all time high of Rs 1220 on BSE in late trade. As per reports REL is believed to be restructuring its businesses under three verticals — utility, infrastructure and real estate. It was the top gainer from Sensex pack.

World’s sixth largest steel manufacturer Tata Steel surged 7% to Rs 850. It hit a 52-week high of Rs 868.10 on BSE today. The stock was boosted after Mr Ratan Tata, Tata Group Chairman at the UK - India conference Said that the group expects to earn nearly 60% of its revenue this year (38% last year) from its overseas operations following the acquisition of Corus Steel in UK.

Tata Motors, the nation’s top truck and bus maker in terms of sales rose 1% to Rs 758. Deutsche Bank is bullish on the stock and has maintained buy rating with target price of Rs 920.

Hindalco (up 4.81% to Rs 172), and Cipla (up 3.95% to Rs 183.15), were the other gainers from Sensex pack

India's largest private sector bank by assets ICICI Bank gained 2.99% to Rs 1060 after it raised $2 billion through a bond issue abroad through a 5-year fixed rate note. The stock struck an all time high of Rs 1070.80 today.

The notes have been priced at 237 basis points (bps) over US Libor or at Libor plus 172 bps. The six-month Libor is currently at 5.14%.

State Bank of India, the country’s largest bank in terms of net profit jumped 4.19% to Rs 1965. The stock hit a record high of Rs 1969.80 today.

Other banking shares - Bank of India (up 7.78% to Rs 280.40), Canara Bank (up 3.38% to Rs 278), Union Bank of India (up 4.45% to Rs 164.25), Kotak Mahindra Bank (up 3.30% to Rs 924.50) and Federal Bank (up 2.77% to Rs 375), edged higher.

India’s largest private sector mortgage financer in terms of market share Housign Development Corporation (HDFC) gained 0.82% to Rs 2517. It hit an all time high of Rs 2544.

Bharat Heavy Electricals (Bhel), the country’s largest power equipment maker by sales was down 0.67% to Rs 2,027, off its all time high of Rs 2089.20. As per recent reports Bhel has won a Rs 765 crore turnkey order from Steel Authority of India (SAIL) to set up a 62.2 mega watt captive power plant in Burnpur, West Bengal.

IT pivotals snapped two-day rally. India’s third largest software services exporter Wipro rose 0.09% to Rs 460.75 off its day’s high of Rs 469. It acquired Oki Techno Centre (Singapore) in an all cash deal over a period of one year. Oki Techno Centre (OTCS) is based in Singapore and is focused on wireless design in the areas of RF (radio frequency) and baseband design.

Other IT pivotals, Infosys (down 1.03% to Rs 1892, off its day’s high of Rs 1950), TCS (down 1.08 % to Rs 1050.25, off its day’s high of Rs 1077), slipped. Satyam Computers (up 0.03% to Rs 442.50), off its day’s high of Rs 452.90 held positive zone.

IT pivotals had started the day firm, but pared gains on selling pressure later.

India’s largest cellular services provider by market capitalistation Bharti Airtel lost 2.33% to Rs 938 on 1.83 lakh shares. It was the top loser from Sensex pack.

Ambuja Cements (down 1.41% to Rs 143.10), and Larsen & Toubro (down 0.67% to Rs 2818), were the other losers from Sensex pack

India’s largest company in terms of market capitalisation and operator of world's third largest refinery at Jamnagar, Gujarat, Reliance Industries (RIL) saw volatile movement. It was now down 0.78% at Rs 2302.25 on 7.55 lakh shares. The stock moved between a high of Rs 2349 and low of Rs 2268. RIL is reportedly laying off 1,000 staff in the country's most populous state of Uttar Pradesh after failed attempts to reopen Western-style supermarkets, which closed after protests from small traders.

Among side counters, Whirlpool India (up 20% to Rs 47.10), Mirza Internatonal (up 20% to Rs 28.50), Dynemic Products (up 20% to Rs 23.10), Braddy & Morris (up 20% to Rs 191.20) and Ashiana Housing (up 20 to Rs 320.60 were the top gainers.

Among stocks with high volumes, Reliance Natural Resources surged 3.30% to Rs 89.55 on 4.32 crore shares. Himachal Futuristic Communications plunged 8.23% to Rs 26.75 on 2.90 crore shares. Ispat Industries rose 1.86% to Rs 27.45 on 2.33 crore shares and Tata Teleservices (Maharashtra) (TTML) slipped 0.11% to Rs 43.45 on 1.94 crore shares.

Fertiliser shares rallied on renewed buying. Chambal Fertilisers & Chemicals (up 7.10% to Rs 58.80), Coromandel Fertilisers (up 13.29% to Rs 122.35), Gujarat State Fertilisers & Chemicals (up 4.97% to Rs 242), National Fertilizers (up 4% to Rs 48), Rashtriya Chemicals & Fertilisers (up 2.17% to Rs 61.30) and Nagarjuna Fertilizers (up 11.19% to Rs 60.60) surged.

India’s largest private sector iron ore exporter in terms of revenue Sesa Goa jumped 8.15% to Rs 2548. It had surged 7.14% to Rs 2388.20 yesterday, 27 September 2007 on reports that Cia. Vale do Rio Doce, Rio Tinto Group and BHP Billiton, the world's three largest iron-ore exporters, may increase prices by 30% next year as demand driven by steelmakers in China outpaces growth in supply

Watch and jewellery maker Titan Industries rose 1.10% to Rs 1470. The company expects FY 2008 profit to rise by at least 50%. Revenue is expected at Rs 3150 crore as compared with March 2007 revenue of Rs 2140 crore. Titan expects to sell 10 million watches this fiscal year with nine million of them in India

NIIT Technologies gained 5.77% to Rs 353 on reports that the company is in preliminary discussions with private equity players Carlyle and TPG to sell a majority stake. Promoters currently hold 40% stake in NIIT Technologies.

IFCI soared 7.70% to Rs 99.90 on reports that it has shortlisted eight bidders for the sale of its 26% stake including consortia led by Wilbur L Ross and Shinsei Bank. As many as 10 bidders had applied earlier this month. The identity of the bidders that have been left out of the race is not known.

DLF gained 2.89% to Rs 763. As per reports it will apply for telecom licence by today, 28 September 2007, to become the fourth real estate company to have applied for the same purpose. IndiaBulls Real Estate, Unitech and Parsvnath Developers are the others.

Emkay Share & Stock Brokers jumped 10% to Rs 145.60 after its 100% subsidiary - Emkay Insurance Brokers received licence from the Insurance Regulatory and Development Authority (IRDA) in terms of sub section (1) of Section 42 D of the Insurance Act, 1938 to act as a direct insurance broker. The company made this announcement after market hours on 27 September 2007.

Brady & Morris Engineering Company surged 20% to Rs 191.20 after its board of directors of at its meeting held on 27 September 2007 decided to issue bonus shares in the ratio of 1 bonus share for every 2 shares held. The company made this announcement after market hours on 27 September 2007.

WH Brady & Company jumped 10% to Rs 159.70 after is board of directors at its meeting held on 27 September 2007 decided to issue bonus shares in the ratio of 1 bonus share for every 2 shares held. The company made this announcement after market hours on 27 September 2007.

United Breweries was up 0.58% to Rs 382. Its board approved raising upto Rs 425 crore by issuing equity shares to the existing equity shareholders of the company on rights basis. The other terms regarding rights issues will be decided by a committee of directors.

Arvind Mills galloped 5.67% to Rs 61.50 after its board approved issue of 5.06 crore convertible warrants to the founders of the company at Rs 52 per share. Post issue, the shareholding of the promoters in the company will increase to 46.77% from 33.90% at present.

Cairn India rose 3% to Rs 181.40 on reports that it made new oil find in one of its exploration wells in the Ravva field off India's east coast.

Deccan Aviation declined 1.78% to Rs 146 after it announced today, 28 September 2007, that it has reported a net loss for the quarter to June 2007.

State Trading Corporation of India plunged 5% to Rs 341.90. It had lost 5% to Rs 359.85 yesterday, 27 September 2007 after its board of directors at its meeting held on 26 September 2007 deferred recommendation of bonus shares to the next board meeting. The company made this announcement after market hours on 26 September 2007.

Stone India jumped 6.59% to Rs 148 after it executed a technical collaboration agreement for producing 180 kilovolt-amps auxiliary power converter for Indian Railways.

Atlanta galloped 10% at Rs 346.70 after Sebi allowed the firm to restructure its capital to raise funds for expansion. Securities and Exchange Board of India (Sebi) has allowed the company conversion of warrants and listing of shares issued on conversion. Earlier in February 2007, Sebi had asked the promoter group, which comprises 16 entities, of Atlanta, not to deal in Atlanta scrip.

Centurion Bank of Punjab moved up 3.12% to Rs 44.65 after Reserve Bank of India allowed foreign investors to buy further shares in the bank as their holding went below the caution limit.

Virat Crane Industries jumped 10% at Rs 21.85 after its subsidiary Durga Dairy tied-up with Walmart to supply branded ghee to retail stores. So far, Durga Dairy has entered into similar alliances with major retail players like Reliance Retail, Trinetra, Gaint, Spencers, Foodworld, Subhiksha and Metro.

Rallis India surged 5.12% to Rs 415 after it sold 31 acres of land to R R Mega Property Developers.

Hinduja TMT rose 1.60% to Rs 437 after company said it is actively considering to apply for unified telecom license. It is in process of changing its name to Hinduja Ventures

Core Projects & Technologies rose 0.84% to Rs 190.40. Its board approved acquisition of virtual learning of Azzuri Communications, UK. The board has also approved acquisition of 100% equity stake in Hamlet Computer Group, UK. Also the company has decided to sign share purchase agreement for acquisition of 100% equity stake in KC Management Group, US.

Financial Technologies India galloped 6.06% to Rs 2760 after Merrill Lynch and Citigroup acquired a 5% stake each in its unit, Multi Commodity Exchange of India.

As per market data, marketwide rollover from September 2007 derivatives contracts to October 2007 contracts was 84% as compared to rollover of 82.30% from August 2007 contracts to September 2007 contracts. Nifty rollover from stood at 71% as compared to rollover of 70% from August 2007 contracts to September 2007 contracts.

European markets, which opened after Indian market were trading lower today, 28 September 2007. France’s CAC (down 0.39% to 5,711.11), Germany’s DAX (down 0.11% to 7,844.94) and UK’s FTSE 100 (down 0.84% to 6,431.90) edged lower.

Asian markets, which opened before Indian market were trading mixed today, 28 September 2007. South Korea's Seoul Composite (up 0.06% at 1,946.80), Shanghai Composite (up 2.64% to 5,552.30), and Hong Kong's Hang Seng (up 0.29% to 27,142.47) rose.

Singapore's Straits Times (down 0.22% at 3,706.77), Japan's Nikkei (down 0.28% at 16,785.69) and Taiwan's Taiwan Weighted (down 0.02% at 9,411.95) slipped.

US stocks extended their gains yesterday, 27 September 2007 with a moderate advance as investors weighed fresh economic data, including a sharp drop in new home sales, for clues to whether more interest rate cuts are in the offing. The Dow Jones industrial average rose 34.79 points, or 0.25%, to 13,912.94. It is now 87 points below its record close of 14,000.41 set on 19 July 2007. Broader indexes also advanced. The Standard & Poor's 500 index rose 5.96 points, or 0.39%, to 1,531.38, and the technology-heavy Nasdaq Composite index rose 10.56 points, or 0.39%, to 2,709.59.

Crude oil extended gains for a third day on Friday, 28 September 2007 to above $83 a barrel, nearing its record high as a weak dollar and pre-winter supply worries fuelled fund buying. US crude for November delivery rose 30 cents to $83.18 a barrel Oil is recovering from a profit-taking dip earlier this week that pulled prices off their $83.90 peak. London Brent crude rose 30 cents to $80.33 a barrel.