Turnover drops ahead of long weekend

The market ended with small gains on a volatile day of trade. The market breadth turned weak later during the day in contrast to a strong breadth earlier during the day. IT pivotals rallied. Reliance Industries edged higher.

FMCG, capital goods, consumer durables, banking stocks declined. Satyam Computer Services and Infosys were major gainers whereas ACC and Cipla were major losers from the Sensex pack. European markets were positive. Asian markets were mixed today, 20 December 2007. The Dow industrials and the S&P 500 declined slightly on Wednesday, 19 December 2007.

Annual inflation, based on the wholesale price index (WPI), rose 3.65% in the week ended 8 December 2007, lower than previous week's 3.75% rise, data released by the government during trading hours today showed.

The 30-share BSE Sensex rose 70.61 points or 0.37% to 19,162.57. It hit a high of 19,291.14 in mid-morning trade. At its day’s high Sensex had gained 199.18 points.

The S&P CNX Nifty up 15.35 points or 0.27% to 5,766.50.

BSE clocked a turnover of Rs 6206 crore, lower than Wednesday (19 December 2007)'s Rs 8,347.15 crore.

The market remains closed on Friday, 21 December 2007 on account of Bakri Id.

Nifty December 2007 futures were at 5780.05, at a premium of 13.55 points as compared to the spot closing of 5766.50.

The NSE's futures & options (F&O) segment turnover was Rs 73,067.55 crore, which was lower than Rs 79,137.15 crore on Wednesday, 19 December 2007.

Market breadth was weak. On BSE, 1,139 stocks advanced, 1,748 stocks declined and 26 stocks remained unchanged. 16 out of 30 stocks from the Sensex pack advanced.

BSE Mid-Cap index declined 0.6% to 9,025.54. BSE Small-Cap index declined 0.86% to 11,813.32. Both these indices underperformed Sensex.

BSE Metal index (up 0.39% to 18,273) and BSE IT index (up 3.34% to 4,320.63) outperformed Sensex.

BSE Auto index (up 0.28% to 5,541.26), BSE Realty index (up 0.09% to 11,614.08), BSE Health Care index (down 0.11% to 4,242.53), BSE Bankex (down 0.24% to 10,738.59),BSE Power index (down 0.27% to 4,211.32), BSE Consumer Durables index (down 0.62% to 6,084.31), BSE Capital Goods index (down 0.91% to 18,725.69) and BSE FMCG index (down 1.16% to 2,198.45) underperformed Sensex.

IT stocks surged. Wipro (up 1.77% to Rs 491.75), Tata Consultancy Services (up 2.34% to Rs 1,045.25), Infosys (up 3.68% to Rs 1,698.35), Satyam Computer Services (up 5.65% to Rs 427.70) edged higher.

FMCG majors declined. ITC (down 1.83% to Rs 196.05), United Spirits (down 2.56% to Rs 1,846), Hindustan Unilever (down 0.28% to Rs 211.450 edged lower.

Capital goods stocks declined. Bharat Heavy Electricals (down 1.27% to Rs 2,370), Larsen & Toubro (down 0.48% to Rs 3,979) and Suzlon Energy (down 3.66% to Rs 1,830) edged lower.

Banking stocks declined. ICICI Bank (down 0.35% to Rs 1,157), HDFC Bank (down 0.18% to Rs 1,654) edged lower. State Bank of India rose 0.31% to Rs 2,265.20.

Consumer durables stocks edged lower. Videocon Industries (down 2.11% to Rs 625.25), Titan Industries (down 1.45% to Rs 1,480) and Rajesh Exports (down 1.92% to Rs 869.15) edged lower.

India’s largest private sector firm by market capitalization & oil refiner Reliance Industries was up 0.37% to Rs 2,714.70. The stock came off session's high of Rs 2,754. Reliance Industries (RIL) is reportedly in talks with Tata Chemicals (TCL) for sale of 2.2 million metric standard cubic metres per day (mmscmd) of gas from KG basin once the ongoing dispute with Reliance Natural Resources (RNRL) is resolved.

India's second largest power utility by revenue Reliance Energy rose 3.04% to Rs 1,939.85.

Cipla (down 2.04% to Rs 210.95), ACC (down 2.77% to Rs 1,002.05) and Ranbaxy Laboratories (down 1.65% to Rs 196.40) edged lower.

India's biggest power generation firm by revenue NTPC declined 0.04% to Rs 229.40. The company is reprotedly in active talks with more than one foreign power generation company for acquiring assets in excess of $1 billion (Rs 3,960 crore).

India's biggest commercial vehicle maker in terms of market share, Tata Motors, rose 2.86% to Rs 710.90. The company which is considered a front-runner to buy Ford Motor Co's luxury Jaguar and Land Rover brands, will unveil the world's cheapest car at an auto show in India next month. Tata Motors will showcase its $2,500 car at the Auto Expo in New Delhi on 10 January 2008, with a commercial launch planned for later in 2008.

Tata Steel, the world's sixth largest steel maker, rose 0.07% to Rs 824.80. Vale, the world’s largest producer of iron ore and pellets, is reportedly in talks with Tata Steel to set up a steel slab plant in Brazil. The $20 billion mining company, formerly known as CVRD, has three plants under construction in Brazil in partnership with ThyssenKrupp, Dongkuk and Baosteel. Vale has a minority stake in these projects.

IFCI clocked the highest volume of 6.11 crore shares on BSE. The scrip declined 23.29% to Rs 76.75 after the company, on Wednesday, 19 December 2007, called off the exercise to rope in a strategic partner through the private placement of 26% equity stake.

Ispat Industries clocked the second highest volume of 2.1 crore shares on BSE. The stock declined 3.91% to Rs 82.25. IKF Technologies clocked the third highest volume of 1.78 crore shares. The scrip declined 9.35% to Rs 12.89. Harig Crankshaft clocked the fourth highest volume of 1.28 crore shares. The scrip hit 55 upper circuit at Rs 4.50.G V Films clocked the fifth highest volume of 1.27 crore . The scrip declined 7.22% to Rs 10.66.

IFCI clocked the highest turnover of Rs 473.69 crore on BSE. Reliance Energy (Rs 292.34 crore), Reliance Industries (Rs 251.92 crore), Ispat Industries (Rs 175.3 crore) and Reliance Petroleum (Rs 86.96 core) were other turnover toppers in that order.

European markets edged higher in early trade. Germany’s DAX (up 0.51% to 7,877.18) and UK’s FTSE 100 (up 0.56% to 6,319.60) edged higher.

Asian markets were mixed today, 20 December 2007. Japan's Nikkei (up 0.01% to 15,031.60), Shanghai Composite (up 2.05% to 5,043.54) edged higher. Hong Kong's Hang Seng (down 0.05% at 27,017.09), Taiwan's Taiwan Weighted (down 1.96% at 7,857.08), South Korea's Seoul Composite (down 0.92% at 1,844.37) declined.

The Dow industrials and the S&P 500 declined slightly on Wednesday, 19 December 2007, in light trading on concerns about more fallout from the housing slump. The Dow Jones industrial average declined 25.20 points, or 0.19%, to end at 13,207.27. The Standard & Poor's 500 Index shed 1.98 points, or 0.14%, at 1,453.00. But the Nasdaq Composite Index edged up 4.98 points, or 0.19%, to close at 2,601.01.

Traders are likely to start building positions towards the end of the month based on expectations of Q3 December 2007 results due next month.