Sensex soars 791 points

Disappointing industrial production data for September 2007 pulled down the markets at the start the week. But the market rebounded with a bang later on easing political worries. Market later pared gains on profit bookings and as the US sub-prime mortgage crisis continued to haunt global equity markets. Market gained in 2 out of 5 trading sessions till Friday, 16 November 2007.

Sensex surged 790.76 points or 4.18% to 19,698.36 in the week ended Friday, 16 November 2007. S&P CNX Nifty rose 243.6 points or 4.3% to 5,906.85 in the week.

The BSE Small Cap index rose 623.85 points or 6.39% to 10,380.73. BSE Mid Cap advanced 498.75 points or 6.22% to 8,512.38.

BSE Auto index (up 1.47% to 5,284.01), BSE IT (down 2.21% to 4,159.12), BSE Metal index (up 3.76% to 17,498.20) and BSE Realty (up 4.07% to 10,521.84) underperformed Sensex.

BSE Bankex (up 7.74% to 11,003.05), BSE Capital Goods index (up 5.02% to 20,643.71), BSE Power index (up 4.66% to 4,591.97) and BSE Oil & Gas (up 7.26% to 12,479.56) outperformed Sensex.

The BSE Sensex ended down 170.33 points or 0.90% to 18,737.27 on Monday, 12 November 2007. Disappointing industrial production data for September 2007 and weak global markets weighed on sentiments. Realty, IT and oil & gas stocks were major contributors in decline. FMCG, power and PSU stocks ended higher.

The 30-share BSE Sensex rose 298.21 points or 1.59% to 19,035.48 on Tuesday, 13 November 2007. The market surged on value buying after a sustained slide over the past six days in a row. Reports that the Left front may allow the government to negotiate safeguards for a civilian nuclear agreement with the US, aided the surge. Volatility was high throughout the trading session. Infosys edged lower, in volatile trade. Banking, capital goods and power stocks edged higher.

The 30-share BSE Sensex ended up 893.58 points or 4.69% to 19,929.06 on Wednesday, 14 November 2007. Sensex registered its biggest intra-day absolute gains on the back of strong global cues and huge gains in index heavyweights Reliance Industries and ICICI Bank. Banking, oil & gas, IT and metal stocks were star performers. The market spurted as worries about the US credit crisis eased after several top US executives reassured investors that the US banking system could withstand shocks from credit-related losses.

The 30-share BSE Sensex lost 144.17 points or 0.72% to 19,784.89 on Thursday, 15 November 2007. The market sentiment was cautious due to persistent worry that more fallout from the US housing downturn and US credit crunch lies ahead, as stocks dropped across Asia. Weakness in banking, IT and power stocks pulled the Sensex down 205.86 points for the day at one point of time in the day to a low of 19,723.20.

The 30-share BSE Sensex ended down 86.53 points or 0.44% at 19,698.36 on Friday, 16 November 2007. Market swayed between gains and losses throughout the trading session. Banking and power stocks declined. Cement and consumer durables stocks were in demand. ITC surged.

ITC rose 21.46% to Rs 205.15 in the week on reports that it has approached Parle Products to buy out the latter’s confectionery business.

Reliance Communications lost 0.25% to Rs 707.80 in the week on reports it has submitted a bid for 51% stake in Kenya's state-run telecom giant Telkom Kenya.

Reliance Industries rose 5.12% to Rs 2,875.70 in the week after it executed two production sharing contracts covering petroleum exploration activities in the Kurdistan region of Iraq. Further, its wholly owned subsidiary signed a production sharing agreement with the government of Oman for offshore block number 41 in Oman.

State bank of India rose 7.54% to Rs 2,325.60 in the week on reports that the Union Cabinet is likely to take a call by 22 November 2007 regarding the bank’s proposed plan to raise about Rs 18,000 crore through a rights issue.

Reliance Energy declined 0.67% to Rs 1,825.70 on BSE, on reports its subsidiary Reliance Power is close to bag a 4,000-mega watts Krishnapatnam ultra mega power project in Andhra Pradesh.

India's biggest power generation firm by revenue National Thermal Power Corporation (NTPC) jumped 9.51% to Rs 264.30. As per reports, it is one of the bidders who have submitted bids for setting up the 4,000 mega watt Tilaiya ultra mega power project in Jharkhand.

India's largest cellular service provider by market share Bharti Airtel rose 4.71% to Rs 911.60. Bharti added 2.03 million subscribers in October 2007 against 2.06 million additions in September 2007, taking its total mobile user base to 50.9 million. Meanwhile, Bharti's chairman Sunil Mittal on Wednesday, 14 November 2007, said he favours mobile number portability across the country and not just in the four big metro cities.

India’s largest dedicated housing finance company by revenue Housing Development Finance Corporation (HDFC) was up 7% to Rs 2,700 on reports that the company has received a premium commitment of Rs 170 crore from German insurer Ergo for the latter’s 26% stake in its non-life insurance company.

India’s biggest software exporter TCS edged lower 0.33% to Rs 982.20. The company said on Thursday, 15 November 2007 that it won a four-year outsourcing deal from Social Security Institute of Mexico worth more than $200 million.

Tata Steel gained 1.1% to Rs 843.20. The company is raising Rs 9135 crore from a rights issue of equity shares and convertible preference shares. The rights issue of equity shares is in the ratio of 1:5, priced at Rs 300 per share. The issue opens on 22 November 2007 and closes on 21 December 2007.

Larsen & Toubro soared 5.98% to Rs 4,375.85 after its consortium won an order worth Rs 580 crore from state-run Steel Authority of India to rebuild one of its blast furnaces.

HDFC Bank (up 9.68% to Rs 1,687.15) and ICICI Bank (up 6.69% to Rs 1,219.45) also gained among the Sensex pack.

US Futures Exchange (USFE) has entered into an exclusive licensing agreement with Bombay Stock Exchange (BSE) to list the dollar-denominated Sensex futures on the former, which will allow US investors to directly trade in India’s equity market.

The Index of Industrial Production (IIP) rose 6.4% in September 2007 compared to 12% growth in September 2006. IIP growth was 9.2% in April-September 2007 compared with 11.1% growth in April-September 2006.

The government on Tuesday, 13 November 2007 estimated India’s growth to be 8.5% in FY 2008 as its macro-economic fundamentals were favourable for a sustained, rapid and more inclusive economic growth.

Finance Minister P Chidambaram, in Economic Editors’ Conference in New Delhi (Tuesday, 13 November 2007), cautioned that the pressures on consumer prices continued due to rising international oil, food and commodity prices. The sharp deceleration in the consumer goods segment has pulled down the overall industrial output.

Agriculture Minister Sharad Pawar, in a news conference on Tuesday (13 November 2007), said the government had no plans to change import duties on edible oils.

Six core infrastructure industries edged up 6% in September 2007 as against 10.6% in September 2006. The growth rate slowed down 6.6% in April-September 2007 from 8.7% in in April-September 2006.

The government on Wednesday (14 November 2007) ruled out any immediate hike in retail prices of petrol and diesel saying global crude oil prices will first need to stabilise before a decision is taken.

The Left has permitted the United Progressive Alliance (UPA) coalition government to speak to the International Atomic Energy Association (IAEA). However, Left wants its prior approval before signing the safeguards. The UPA-Left panel on the nuclear deal is scheduled to meet on 16 November 2007.

The board of Securities & Exchange Board of India (Sebi) on 14 November 2007, approved launch of a number of new derivative products to provide investors a wide range of risk mitigation products and create more activity in the onshore market. The products will relate to mini-contracts on equity indices, options with longer life, volatility index and F&O contracts, options on futures, bond indices and F&O contracts, foreign exchange F&O and introduction of exchange-traded products.

Trade Minister Kamal Nath in the sidelines of a conference held in New Delhi on Wednesday (14 November 2007) expressed hope that manufacturing growth would revive in the coming months. According to the minister, sluggish growth of 6.4% in industrial output in September 2007 over September 2006 was due to a weaker dollar.

The Centre’s excise duty collections rose 14% at Rs 10293 crore in October 2007 from Rs 9066 crore in October 2006. Customs duty collections jumped 25% at Rs 9353 crore in October 2007 as against Rs 7503 crore in October 2006.

Annual inflation, based on the wholesale price index (WPI), moved up 3.11% in the week ended 3 November 2007 compared to a rise 2.97% in the week ended 27 October 2007. The market estimate was 2.97%. The annual inflation rate was 5.45% in the corresponding week of the previous year.

The Indo-US nuclear deal will be discussed in the Lok Sabha on 27 November 2007. Acoording to Parliamentary affairs minister Priyaranjan Dasmunsi the government has also proposed discussion in the Rajya Sabha on 28 November 2007. Earlier the dates fixed were 16 November 2007 for the Lok Sabha and 17 November 2007 for Rajya Sabha.