Nifty settles in the red even as Sensex gains

The market saw a complete trend reversal today - it bounced back after an initial slump caused by on worries about the US economic outlook. Volatility was high due to alternate bouts of buying and selling. Sustained buying in blue-chip stocks at lower levels and short covering helped the market break its four-day loosing streak. European and Asian markets were trading lower today, 22 October 2007 on worries about the US economic outlook.

The BSE 30-share Sensex was up 84.70 points, or 0.48%, to 17,644.48, as per provisional closing. It opened 300.33 points lower at 17,259.65 and slipped to a low of 17171.45 within minutes after commencement of trade. At the day’s low of 17,171.45, the Sensex had lost 388.53 points for the day. From here it staged a solid rebound. Sensex hit a high of 17,704.83 in the day. At day's high of 17,704.83, Sensex had risen 144.85 points for the day. Sensex oscillated 533.38 points in the day.

However, the broader based S&P CNX Nifty lost 22.70 points, or 0.44%, to 5,192.60, as per provisional closing.

Of the 30 shares of the Sensex, 17 rose while the rest slipped. The market breadth was just about positive on BSE. 1341 scrips advanced as compared to 1314 that declined, while 70 remained unchanged.

The total turnover on BSE amounted to Rs 7486 crore as compared to Rs 6013 crore by 14:30 IST.

India’s largest private sector mortgage financer in terms of net profit Housing Development Finance Corporation (HDFC) vaulted 5.92% to Rs 2540 on 2.25 lakh shares. It was top gainers from Sensex pack.

ICICI Bank, the country’s largest private sector bank in terms of net profit rose 4.74% to Rs 1072.45. Its net profit rose 32.7% to Rs 1002.60 crore on 41% growth in total income to Rs 9588.41 crore in Q2 September 2007 over Q2 September 2006. The results hit the market after trading hours on Friday, 19 October 2007.

North India’s largest cement manufacturer, Ambuja Cements gained 4.48% to Rs 145.85 on 5.44 crore shares after three block deals of 1.57 crore shares each were executed on the counter on BSE in opening trade at an average price of Rs 144.42 per share. It was the top traded counter on BSE with total turnover of Rs 787.18 crore

Mahindra & Mahindra (up 3.96% to Rs 757), ACC (up 3.92% to Rs 1030) and ITC (up 2.35% to Rs 179), were the other gainers from Sensex pack.

Shares from capital goods space made a late comeback. India’s largest power equipment maker in terms of sales, Bharat Heavy Electricals (Bhel) gained 1.48% to Rs 2080. The company informed BSE that due to some unavoidable circumstances, its board meet to consider Q2 September 2007 results scheduled to be held on 25 October 2007 has been postponed to 29 October 2007. Itss day’s low was at Rs 1970

Larsen & Toubro(L&T), the nation's largest engineering and construction company by sales, gained 3.04% to Rs 3115. Its day’s low was at Rs 2912.

Reliance Energy, the country’s second largest power utility company in terms of sales, rose 2.38% to Rs 1370 on 39.97 lakh shares, off its day’s high of Rs 1465. The stock surged sharply from early lows of Rs 1255, on value buying. The stock had plunged 18.52% in past one week to Rs 1333.25 on 19 October 2007.

India’s largest oil exploration company in terms of market capitalisation Oil and Natural Gas Corporation declined 1.38% to Rs 1090. As per reports that its joint venture firm ONGC-Mittal Energy had acquired a 30% participating interest in an exploration block in Turkmenistan. The report did not disclose the deal value.

India’s largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) was down 1.98% to Rs 2420.20 on 19.74 lakh shares. It recovered sharply from early lows of Rs 2395. As a part of a restructuring exercise, RIL has reportedly decided to hive off Reliance Fresh into a separate company, Ranger Farm, for single point accountability. Reliance Fresh sells food, fruits and vegetables and consumer products.

IT stocks stayed under selling pressure throughout the day and dominated the list of top losers, on worries about a downturn in the United States, where the firms earn more than half their revenue. India’s fourth largest sofftware services exporter Satyam Computers lost 3.14% to Rs 445.60 on 7.01 lakh shares. It was the top loser from Sensex pack.

TCS (down 2.96% to Rs 1074), Wipro (down 1.31% to Rs 494) and Infosys (down 1.54% to Rs 1878.15), edged lower.

India’s largest listed cellular services provider by sales, Bharti Airtel recovered sharply from its day’ s low of Rs 909 to settle 1.49% lower to Rs 954. The early fall was triggered by on concerns that the launch of nationwide GSM services by rival Reliance Communications would eat into its market share. The stock lost 9.43% in past one week to Rs 968.45 on 19 October 2007.

Reliance Communications was down 0.71% to Rs 722, off its day’s high of Rs 741. Reliance Communications (RCom), on Friday, 19 October 2007, got nod to launch nationwide GSM-based cellular services from Department of Telecom (DoT).

Tata Motors (down 2.27% to Rs 765), and Maruti Suzuki India (down 2.21% to Rs 1050), were the other losers from Sensex pack.

A crucial meeting of the panel set up by the government to look into Left front’s concerns over the Indo-US nuclear deal holds its fifth meeting today, 22 October 2007, with Left front demanding a clear statement that the deal is off.

The Securities and Exchange Board of India chairman, M Damodaran, will hold a video conference with overseas investors today, 22 October 2007, to clarify all issues arising from the draft proposal on participatory notes (PNs) released by the regulator on Tuesday, 16 October 2007.

After trading hours on Tuesday, 16 October 2007, Sebi issued draft proposals wherein the market regulator proposed restriction on use of the popular participatory notes (PNs) route of FII inflow and it also recommended unwinding of some PNs within 18 months. PNs are financial instruments used by foreign investors that are not registered with Sebi, to invest in Indian shares. FIIs and their sub-accounts buy Indian securities and then issue PNs to foreign investors with these securities as the underlying.

European markets opened lower today, 22 October 2007. Key benchmark indices from United Kingdom (down 1.26% to 6,445.50), and Germany (down 1.27% to 7,748.01) declined.

Asian markets were trading weak today, 22 October 2007, in the wake of a sell-off on Wall Street on Friday, 19 October 2007. Hong Kong's Hang Seng (down 3.70% at 28,373.63), Japan's Nikkei (down 2.24% at 16,438.47), Taiwan's Taiwan Weighted (down 2.61% at 9,360.63), Singapore's Straits Times (down 2.81% at 3,642.64) and South Korea's Seoul Composite (down 3.36% at 1,903.81) all edged lower.

US markets tumbled on Friday, 19 October 2007, amid lackluster profit reports and credit concerns on Black Monday Anniversary. The Dow Jones Industrial Average plunged 366.94 points, or 2.64%, to 13,522.02. The Standard & Poor's 500 index fell 39.45 points, or 2.56%, to 1,500.63, and the Nasdaq Composite index dropped 74.15 points, or 2.65%, to 2,725.

India's wholesale price index rose 3.07% in the 12 months to 6 October 2007, lower than the previous week's 3.26% rise, government data released on Friday, 19 October 2007 showed. It was the lowest annual rise in 5 years.

Volatility is expected to remain high for in coming few days ahead of expiry of October 2007 derivatives contracts on Thursday, 25 October 2007.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 1750.76 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 186.26 crore on Friday, 19 October 2007.

Crude oil prices fell on Monday, 22 October 2007 on profit taking from record highs, but hovered near $88 on simmering geo-political tensions and a weak dollar. US light crude for November delivery fell 77 cents to $87.83 a barrel. On Friday, 19 October 2007, it touched an all-time high of $90.07. London Brent crude fell 46 cents to $83.33 a barrel.

The BSE 30-share Sensex plunged 438.41 points or 2.44% to 17,559.98, on Friday, 19 October 2007. The broader based S&P CNX Nifty lost 135.70 points or 2.54% at 5,215.30 on that day.

The Sensex settled the week ended 19 October 2007 with a loss of 859 points or 4.7%. The S&P CNX Nifty lost 212.95 points or 3.9% to 5215.30 in the week.