Sensex, Nifty strike new highs

The market surged towards the latter part of the trading session led heavy buying in index pivotals especially for Reliance group stocks. Total turnover on BSE jumped above the Rs 8000 crore mark. Both the niche indices BSE Sensex and S&P CNX Nifty struck all time highs. IT pivotals bounced back after initial slide

Asian markets, which opened before Indian markets, settled on mixed note today, 21 September 2007. European markets, which opened after Indian markets, were in the green. US markets finished lower yesterday, 20 September 2007.

Inflation based on the wholesale-price-index rose 3.32% for the week ended 8 September 2007 as against 3.52% in the previous week.

The 30-shares BSE Sensex surged 216.28 points or 1.32% at 16,564.23, an all time closing high. It opened slightly higher at 16,308.09 and slipped to touch intra-day low of 16,308.09. From here it staged a solid rally to hit an all time high of 16,616.84 in late trade.

The market came off higher level in mid-morning trade. Before that it had recovered from lower level after it had slipped into the red in early trade.

From a recent low of 13,989.11 on 21 August 2007, the Sensex has surged 2557.12 points or 18.27% to 16,564.23, in just 23 trading days.

The S&P CNX Nifty surged up 90 points or 1.90% at 4,837.55, an all time closing high. The sharper surge in Nifty when compared to Sensex was due to rally in some of the non-Sensex constituents in the index. Nifty hit an all time high of 4,855.70. The Nifty September 2007 futures settled at 4863, a sharp premium of 25.45 points as compared to spot closing

A number of stocks are common in the two niche indices viz. 30-share BSE Sensex and 50-share Nifty. But Nifty being broader based index, it has more constituents and some of the Nifty constituents are not a part of Sensex.

The market breadth was negative on BSE with 1615 shares declining as compared to 1149 that advanced. 51 remained unchanged

The BSE Mid-Cap index rose 0.94% to 7,199.92 after hitting an all time high of 7,231.90. The BSE Small-Cap index gained 0.22% to 8,895.88, after hitting an all time high of 8,964.29. Both these indices underperformed the Sensex.

The total turnover on BSE surged above the Rs 8000 crore mark co. It amounted to Rs 8198 crore compared to Rs 7221 crore yesterday, 20 September 2007.

Four massive block deals of 1.62 crore shares each were struck on Ambuja Cements counter on BSE in opening trade. These deals were executed at an average rate of Rs 149.48 per share. Ambuja Cements was the top traded counter on BSE with total turnover of Rs 1053.05 crore. The scrip rose 1.95% to Rs 149 on huge volumes of 7.05 crore shares.

The NSE F&O turnover was Rs 75,928.77 crore as compared to Rs 58327.40 crore yesterday, 20 September 2007

Most of the sectoral indices on BSE posted gains. BSE Realty index (up 1.54% to 9,183.44), BSE Oil and Gas Index (up 3.55% at 9,340.05) and BSE TecK index (down 1.62% to 3,638.25) outperformed the Sensex.

BSE Auto Index (up 1.10% at 5,193.50), BSE PSU index (up 1.28% to 7,780.84), BSE Capital Goods Index (up 0.89% at 14,520.17), BSE Consumer Durables index (down 0.35% to 4,748), BSE FMCG Index (down 0.59% at 2,152.99), BSE Metal Index (up 0.70% at 12,812.76), BSE Health Care Index (down 0.54% at 3,654.24), BSE Bankex (up 0.59% at 8,739.84) and BSE IT Index (up 0.86% at 4,428.34) were underperformers

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

India’s largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) recovered sharply from its day’s low of Rs 2151.10. It advanced 4.56% to Rs 2292 on 8.70 lakh shares. It hit an all-time high of Rs 2294. As per reports it has found oil in its D4 block in the Krishna Godavari (KG) Basin. The company completed the technical testing in the block KG (D4) on 8 September 2007 and is in the process of informing the Directorate General of Hydrocarbons (DGH). The company had started drilling the third well in the block from 16 July 2007.

State Bank of India (up 4.02% to Rs 1830), Bharti Airtel (up 3.52% to Rs 922.25), and Hindustan Unilever (up 3.13% to Rs 220.85), were the other gainers from the Sensex pack.

India’s top private sector utility company in terms of revenue Reliance Energy (REL) gained 2.46% to Rs 1012 on 12.32 lakh shares. The stock hit all-time high of Rs 1033 in intra-day trade. It was the top gainer from Sensex pack. As per recent reports, REL is scouting for coal mines in Indonesia, Australia, Africa and Mozambique and it sees infrastructure projects such as road and rail transport as key growth drivers. It also plans to raise $12.0-$12.5 billion in debt over the next seven to eight years to expand generation capacity nearly 16 times to 15,000 mega watt

India's largest engineering & construction firm by revenue Larsen & Toubro climbed up 1.23% to Rs 2780 on recent reports that the company is eyeing a stake in Feedback Ventures, a leading integrated infrastructure services firm.

India’s largest oil exploration company in terms of market capitalisation Oil and Natural Gas Corporation (ONGC) gained 2.44% to Rs 927.50. It has reportedly sought a steep hike in the price of gas to Rs 4,500 per thousand cubic metre from the present Rs 3,200 per thousand cubic metre. ONGC hopes to gain Rs 2000 crore in revenues annually if prices were raised.

IT stocks saw high volatility today. They declined in early trade but later staged a sharp recovery on value buying.

India’s third largest software services exporter Wipro rose 1.70% to Rs 440.85. It had slipped to 52-week low of Rs 425 earlier during the day.

Satyam Computers was down 0.31% to Rs 420, off day's low of Rs 401.50. Infosys Technologies gained 1.40% to Rs 1793, off session's low of Rs 1751.50. TCS gained 1.72% to Rs 1018 after touching 52-week low of Rs 978 earlier during the day.

Infosys Technologies ADR slipped 4.59% to $47.02 overnight on Nasdaq. Other IT ADRs also edged lower. Wipro (down 2.74% to $ 13.83), Patni Computer Systems (down 2.33% to $ 23.28), and Satyam Computers (down 3.70% to $24.76) declined.

The Indian rupee was trading almost unchanged 39.89, as compared to yesterday’s (20 September 2007), closing of 39.89/39.90. A rise in rupee impacts the margins of IT companies as they earn over 50% of revenues from exports

India’s top power generation company in terms of net profit, NTPC lost 2.49% to Rs 184.40 on 62.13 lakh shares. It was the top loser from Sensex pack.

ITC (down 2.20% to Rs 189.65), Hindalco (down 1.33% to Rs 159.95), and Cipla (down 0.89% to Rs 167.45), were the other losers from Sensex pack.

Reliance Natural Resources surged 34.68% to Rs 76.50 on huge volumes of 9.44 crore shares on reports that the company has applied for a license to undertake city gas distribution business in Delhi, Mumbai, Gurgaon and Noida. It hit an all time high of Rs 79.20 on BSE

Reliance group stocks were in spotlight on heavy buying demand. Reliance Petroleum (up 11.10% to Rs 154.25 on 2.88 crore shares), Reliance Capital (up 1.95% to Rs 1541.30 on 8.46 lakh shares), Reliance Industrial Infrastructure (up 10% to Rs 1043.10 on 60,354 shares), Reliance Communication (up 2.22% to Rs 579.05 on 20.43 lakh shares), Adlabs Films (up 9.18% to Rs 549) and IPCL (up 5.27% to Rs 454.60) surged.

Jindal Steel & Power jumped 9.66% to Rs 5371.20. Earlier some reports suggested that the company is planning to diversify into coal mining in overseas markets, coal and power trading and chartered air services.

Mercator Lines rose 1.84% to Rs 69.35 after it on 20 September 2007 acquired a 2006 built vessel (dredger). The company made this announcement after market hours on Thursday, 20 September 2007.

Ashapura Minechem gained 2.85% to Rs 438 after it fixed 19 October 2007 as record date for the purpose of issue of 1:1 bonus shares. The company made this announcement after market hours on Thursday, 20 September 2007.

ICRA rose 0.33% to Rs 1023 after it signed a memorandum of understanding with Dena Bank for rating the bank's loans.

United Breweries soared 9.32% to Rs 358.50 after it said its board will meet on 28 September 2007 to consider rights issue.

Punj Lloyd rose 2.12% to Rs 313 on recent reports that Pipavav Shipyard is raising $125 million private equity through pre-IPO deals.

Sun TV Network gained 0.45% to Rs 355. Earlier this month, Sun TV had acquired 48.9% stake in Red FM, promoted by NDTV. In return (on a swap ratio basis), the Red FM promoters had picked up 35% stake in South Asia FM, the subsidiary of the company.

Petron Engineering Construction jumped 19.10% to Rs 267.45 after its net profit jumped 97.4% to Rs 2.29 crore on 15.8% rise in sales to Rs 63.51 crore in Q1 June 2007 over Q1 June 2006.

Financial Technologies (India) rose 0.51% to Rs 2705.25 after it won regulatory approval to set up India's first national power exchange, The Indian Energy Exchange, an electronic bourse.

PTC India surged 6.94% to Rs 90.15 after it agreed to take on 26% stake in IEX and Tata Power Company, Reliance Energy and Rural Electrification Corp have also agreed to a stake in IEX. Adani Enterprises and IDEC will also take part in the consortium, the release added.

Tezpore Tea Company jumped 10% at Rs 42.60 after it said it had entered into a deal to sell its Merryview tea estate to Dalmia Tea Plantations & Industries for an undisclosed amount.

Meanwhile, foreign institutional investors' net inflow in the country crossed $10 billion so far in this year with an investment of $5.75 billion in the month of July 2007, highest ever in a month. FIIs made a net purchase worth about $10.5 billion in equity and debt markets since the beginning of 2007, topping the total net investment of $8.87 billion in the entire year 2006. Total FII inflow so far in the country is $61 billion. The number of FIIs registered with the market regulator has increased to 1,063 in July 2007 from 934 last year.

European markets, which opened after Indian markets, extended early gains. Key benchmark indices from United Kingdom (up 0.82% to 6,481.60), Germany (up 0.90% to 7,804.69), and France (up 0.40% to 5,711.25), advanced

Asian markets which opened before Indian markets, settled on mixed note today, 21 September 2007. Taiwan Weighted (up 1.36% at 9,105.28), Hang Seng (up 0.56% at 25,843.76), and South Korea's Seoul Composite (up 0.54% to 1,919.26), rose

Singapore's Straits Times (down 0.29% to 3,542.22) and Japan's Nikkei (down 0.62% or at 16,316.74), slipped

US stocks retreated yesterday, 20 September 2007 impacted by mixed earnings reports, a tumbling dollar and surging oil prices. The Dow Jones Industrial Average fell 48.86 points, or 0.35%, to 13,766.70. Broader stock indices also declined. The Standard & Poor's 500 index fell 10.28 points, or 0.67%, to 1,518.75, and the technology-dominated Nasdaq Composite index fell 12.19 points, or 0.46%, to 2,654.29.

Crude oil prices held near $82 a barrel on Friday, 21 September 2007 after hitting a record of $84.10 the previous day, 20 September 2007 as a tropical depression forced the shutdown of Gulf of Mexico output and sparked supply fears ahead of peak winter fuel demand. US crude for November delivery, the new front month, dipped 6 cents to $81.72 a barrel. London Brent November crude rose 3 cents to $79.12 per barrel.