Sensex adds 58 points in volatile trade

Though the market ended in the green, it came off higher level as index heavyweight Reliance Industries slipped. Volatility on the bourses was high today. ICICI Bank edged higher. Cipla surged. Consumer durables stocks dwindled. Realty stocks were the star performers in today’s trade. Market breadth was strong. 18 out of 30 stocks from the Sensex pack were in green. European markets, which opened after Indian markets, were trading firm. Key Asian indices, except China, were in green.

The 30-share BSE Sensex rose 57.80 points or 0.29% to 19,795.87. Sensex hit a low of 19,716.57 in late trade. At day's low, Sensex had shed 21.50 points for the day. Sensex had hit a high of 20,064.31 in early trade. At day's high, Sensex had gained 326.24 points.

Sensex had hit all-time high of 20,238.16 on 30 October 2007 but was not able to sustain at higher levels and it is yet to close above the physcological 20,000 level. The Sensex’s all time closing high is 19,977.67 on 29 October 2007.

The broader S&P CNX Nifty rose 14.70 points or 0.25% to 5954.70.

The BSE Mid-Cap index fell 0.21% to 9,033.76. It underperformed the Sensex. The BSE Small-Cap index was up 0.79% to 11,360.73. It outperformed the Sensex.

Market breadth was strong. On BSE, 1805 stocks advanced, 1043 stocks declined and 39 stocks remained unchanged.

BSE clocked a turnover of Rs 9712 crore compared to yesterday (5 December 2007)’s turnover of Rs 9,410.33.

Nifty December 2007 futures were at 5984, a premium of 29.30 points as compared to spot closing of 5954.70.

NSE’s futures & options (F&O) segment turnover was Rs 66472.74 crore, which was higher than Rs 57522.12 crore on Wednesday, 5 December 2007

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries fell 0.97% to Rs 2874.55, off day’s high of Rs 2955. The company and Kuwait Petroleum (KPC), the national oil major of Kuwait, have reportedly begun the first round of discussions for scripting a mega joint collaboration across the oil and gas vertical. KPC is keen to rope in RIL as a partner in its upcoming projects in Kuwait in both refining and petrochemicals.

The BSE Realty index was up 3.59% to 11,347.36. It outperformed the Sensex. Sobha Developers gained 2.12% to Rs 909.15, DLF rose 1.71% to Rs 971.25 and Indiabulls Real Estate jumped 0.93% to Rs 666.25

Real estate developer Omaxe soared 12.20% to Rs 482.05. Omaxe today said a consortium comprising the company, GVK Power & Infrastructure and Nagarjuna Construction Company has put in a bid for development of 8-lane access controlled expressway project in Uttar Pradesh (UP). The Rs 30,000 crore project named Ganga Expressway Project would be constructed on the banks of river Ganga to connect eastern and western UP.

India’s second largest realty firm by market capitalization Unitech soared 9.82% to Rs 431.15 on reports it may hive off its retail business i.e. the mall development business as a separate company.

The BSE Bankex rose 0.80% to 11,108.28. It outperformed the Sensex. India’s largest private sector bank by assets ICICI Bank rose 3.24% to Rs 1199.30.

Centurion Bank of Punjab jumped 7.73% to Rs 48.80, Canara Bank soared 3.25% to Rs 300, Oriental Bank of Commerce gained 0.99% to Rs 270.55 and State Bank of India rose 0.55% to Rs 2396.60.

Consumer durables stocks fell sharply. The BSE Consumer Durables index fell 2.95% to 6,042.74. It underperformed the Sensex. Videocon Industries slumped 6.73% to Rs 572, Gitanjali Gems fell 2.15% to Rs 446.10, Titan Industries declined 1.55% to Rs 1565.40, and Blue Star shed 1.16% to Rs 469.05.

The BSE IT index rose 0.83% to 4,267.15. It outperformed the Sensex. India’s second largest software exporter Infosys Technologies gained 1.97% to Rs 1634.90.

Patni Computers gained 1% to Rs 328.95, and TCS rose 0.25% to Rs 1034.20. However, Wipro fell 1.12% to Rs 493.40 and Satyam Computers declined 0.44% to Rs 436.80.

The BSE Power index was up 0.41% to 4,560.10. It outperformed the Sensex. Reliance Energy jumped 3.13% to Rs 1946.60, Gujarat Industries Power gained 1.67% to Rs 112.30, and NTPC rose 0.35% to Rs 245. Tata Power was steady at Rs 1311.05.

Power generation and supply firm GVK Power & Infrastructure surged 6.17% to Rs 840.90 after its board approved a 10-for-1 stock split.

Direct-to-home broadcast service provider Dish TV declined 0.32% to Rs 93.95, off day’s high of Rs 102.10 after the company said after market hours on Wednesday (5 December 2007) that Kishore Biyani’s Indivision Capital, the private equity arm of Future Capital, would buy 4.9% in in the company for Rs 250 crore.

Maharashtra Seamless (MSL), the flagship company of DP Jindal Group, rose 0.31% to Rs 581.70 after the company said it is acquiring a seamless pipes plant in Romania having a capacity of 2 lakh tonnes per annum.

Drug maker Glenmark Pharmaceuticals jumped 3.98% to Rs 503.80. The company reportedly plans to acquire a distribution and marketing company in Indonesia, in a bid to increase its foothold in Asia’s emerging markets.

Steel maker JSW Steel rose 3.31% to Rs 1166.85 after the company said on Wednesday, 5 December 2007, its crude steel production rose 16% in November 2007 over November 2006.

Apparel firm House of Pearl soared 5.60% to Rs 276.30 after it acquired UK fashion retailer FX Imports.

Essar Steel, part of the Essar Group, was locked at upper limit of 20% at Rs 71.10 following an order passed by Securities Appellate Tribunal prohibiting the firm from delisting.

Pharmaceutical packaging material maker Essar Steel fell 2.76% to Rs 1282, off day’s high of Rs 1398 after the company signed a deal to set up a Rs 88.40 crore clinical supplies unit in Wales.

Reliance Petroleum clocked highest turnover of Rs 529.63 crore on BSE. Ispat Industries (Rs 438.36 crore), Reliance Energy (Rs 322.51 crore), Reliance Natural Resources (Rs 273.25 crore) and Unitech (Rs 207.29 crore), were the others turnover toppers on BSE in that order.

Ispat Industries registered the highest volumes of 5.98 crore shares on BSE. Reliance Petroleum (2.29 crore shares), Tata Teleservices (2.25 crore shares), Chambal Fertilisers and Petrochemicals (1.84 crore shares) and IKF Technologies (1.82 crore shares), were the others volume toppers on BSE in that order.

In Europe, key indices in UK, France and Germany were up between 0.37% to 1.01%.

Asian markets climbed today, 6 December 2007. Key indices in Hong Kong, Singapore Ssouth Korea, Taiwan and Japan were up by between 0.20% to 1.70%. However, China’s Shanghai Composite fell 0.15%.

US markets surged on Wednesday, 5 December 2007, led by rally in large-cap tech and financial stocks. Data that showed that US companies added staff in November 2007 at the fastest pace in a year, and worker productivity rose at the strongest rate in four years in the third quarter, helped ease recession fears, which boosted the bourses. The Dow Jones industrial average jumped 196.23 points, or 1.48%, to 13,444.96. The S&P 500 index gained 22.22 points, or 1.52%, to 1,485.01, while the Nasdaq Composite index advanced 46.53 points, or 1.78%, to 2,666.36.

Oil prices fell for a third straight day in New York, hitting a six-week low, boosted by an unexpected surge in US stockpiles. Crude oil for January 2008 delivery dropped as much as 96 cents, or 1.1%, to $86.53 a barrel in after-hours electronic trading on the New York Mercantile Exchange.

European Central Bank and Bank of England meet today, 6 December 2007, seperately to consider interest rate. The US Federal Reserve will meet on 11 December 2007 to consider interest rates. Fed is likely to reduce Fed funds rate by 25 basis points to 4.25% as the country's economy is slowing down and money markets are strained. It has already cut the Fed funds rate two times in the last three months.