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Friday, July 13, 2007
Short Term Trading Calls
Buy Kirloskar Oil Engines with a stop loss of Rs 300 for target of Rs 590.
Buy Shaw Wallace with a stop loss of Rs 250 for target of Rs 370
Buy Unitech with a stop loss of Rs 542 for a short-term (3 months) target of Rs 625
Buy Natco Pharma with a stop loss of Rs 125 for a short-term (3 months) target of Rs 166.
Reliance, Hindalco lift indices to record close
On the back of strong global cues and surge in metal and capital goods shares, the Sensex and Nifty set record closing highs on Friday. But small-cap and mid-cap stocks were pressured as traders booked profits at higher levels.
The Bombay Stock Exchange's Sensex ended 181 points or 1.2% higher at 15273. It touched a high of 15330.73 and low of 15216.83 intra day.
National Stock Exchange's Nifty closed up 59 points or 1.31% at 4504, making a high of 4514 and low of 4446 earlier in the day.
But the market breadth was negative, with 1,534 declines against 1,148 advances on BSE and 636 losers versus 489 gainers on NSE.
Biggest Sensex gainers were Hindalco Industries (up 6%), Tata Motors (3.8%), Tata Steel (3.35%), Reliance Industries (3%) and Satyam Computer (2.8%).
Index losers comprised Tata Consultancy Services (down 2.1%), Dr Reddy's Laboratories (2.03%), Hindustan Unilever (2.5%), Ranbaxy Laboratories (1.48%) and Reliance Communications (1.41%).
Metal shares were in the limelight on ArcelorMittal entering into an agreement with Nippon Steel Corp for a global strategic alliance and expansion of current joint business ventures in North America. Also, Rio Tinto Group has agreed to buy Alcan for $38.1 billion, trumping a hostile bid by Alcoa to form the world's biggest aluminum maker.
BSE Metal Index gained nearly 5% to 12,032. Hindalco rose 6% to Rs 174.45, Sterlite Industries gained 3.25% to Rs 663, Steel Authority of India surged 9.73% to Rs 158.50 and Tata Steel added 3.83% to Rs 698.
After the recent run-up in the real estate space, investors chose to book profits, pulling the BSE realty index down 1.31% to 7778. DLF shed 1.65% to Rs 600, Parsvnath Developers lost 3.7% to Rs 378 and Sobha Developers fell 2% to Rs 931.
Oil and gas shares were riding on the gains in Reliance Industries, which added nearly 3%. Intra-day, the scrip hit a life-time high of Rs 1,790 versus the previous high of Rs 1,785. ONGC was also up nearly 1% to Rs 900, IOC gained 0.6% to Rs 434 and GAIL India rose 1.22% to Rs 319.
CMC slumped 11% to Rs 1,299 despite the company posting nearly 48% rise in net profit to Rs 22.12 crore for the quarter ended June 30, 2007 compared with Rs 14.95 crore in the same period previous year. Total income decreased to Rs 216.89 crore during the June quarter from Rs 232.35 crore a year ago.
Sensex ends up 181pts; metal stocks sizzle
The buying momentum witnessed yesterday, coupled with positive cues from the global markets, saw the Sensex open today with a positive gap of 125 points at 15,217.
The index rallied to a new, all-time intra-day high of 15,331 - up 239 points from the last close. The Sensex finally ended with a significant gain of 181 points at 15,273.
The BSE Metal index gained a whopping 4.5% (526 points) to 12,001.
The market breadth turned negative towards the close as mid-cap and small-cap stocks witnessed profit-booking - out of 2,737 stocks traded, 1,529 declined, 1,154 advanced and 54 were unchanged today.
THE INDEX MOVERS....
Hindalco soared 6% to Rs 174. Tata Motors rallied 3.8% to Rs 767, and Tata Steel surged 3.4% to Rs 695.
Reliance gained nearly 3% to Rs 1,769. Satyam and Mahindra & Mahindra moved up nearly 3% each to Rs 493 and Rs 825, respectively.
BHEL and HDFC Bank advanced 2.5% each to Rs 1,684 and 1,231, respectively.
ACC, Ambuja Cements, ITC and Grasim gained around 2% each at Rs 1,096, Rs 129, Rs 156 and Rs 2,871, respectively.
Reliance Energy, Infosys and Larsen & Toubro were up 1% each at Rs 675, Rs 1,940 and Rs 2,400, respectively.
....AND THE SHAKERS
TCS and Dr.Reddy's slipped 2% each to Rs 1,137 and Rs 668, respectively.
Hindustan Unilever and Ranbaxy shed 1.5% each to Rs 203 and Rs 353, respectively.
Reliance Communications, Cipla and Bajaj Auto were down 1% each to Rs 555, Rs 211 and Rs 2,175, respectively.
METAL STOCKS SIZZLE
SAIL zoomed 10.5% to Rs 160. Hindustan Zinc soared 8% to Rs 798. Jindal Steel, National Aluminium, Sesa Goa and Sterlite Industries gained 3-6% each.
MOST ACTIVE COUNTERS
GMR Infrastructure topped the value chart with a turnover of Rs 396.60 crore followed by India Infoline (Rs 187 crore), Reliance (Rs 175 crore), Infosys (Rs 169.30 crore) and DLF (Rs 152.50 crore).
Bellary Steel led the volume chart with trades of around 1.70 crore shares followed by Silverline (1.08 crore), Reliance Natural Resources (97.50 lakh), IFCI (93 lakh) and SAIL (64.20 lakh).
Sensex hits another high as metals shine
The benchmark share index Sensex rose to its eighth record high for this month as metal stocks registered heavy gains. The market opened 125 points above its previous close and zoomed to touch the early high of 15305. The Sensex remained steady on the back of firm metal and capital goods stocks. Strong support also came from Tata Motors, Reliance Industries and few cement stocks. The metal stocks were in the limelight on the reports that ArcelorMittal, the world's largest steel company, is signing Nippon Steel Corp for a global strategic alliance and Rio Tinto Group agreeing to buy Alcan for $38.1 billion. The Wholesale Price Index rose to 4.27% for the week ended June 20, higher than previous week's increase of 4.13%, but the same had a little or no impact on the market sentiment. The Sensex touched the lifetime high of 15331 by the afternoon. After exhibiting some range-bound moves the Sensex finally closed the session at 15273, up 181 points. The broad based Nifty also hit the record high of 4514 in the afternoon and the index ended the session by adding 58 points at 4504.
Surprisingly the breadth of the market was negative. Of the 2,735 stocks traded on the BSE, 1,534 stocks declined, 1,148 stocks advanced and 53 stocks ended unchanged. Among the sectoral indices, the BSE Metal index flared up by 4.58% followed by the BSE Oil & Gas index (up 1.79%), the BSE PSU index (up 1.49%) and the BSE Auto index (up 1.04%). However, the BSE Realty index, the BSE HC index and the BSE CD index ended in the negative territory.
Except a few most of the index stocks ended at higher levels. Hindalco was the day's star performer and shot up by 5.99% at Rs174. Among the other major gainers Tata Motors surged 3.75% at Rs767, Tata Steel vaulted by 3.35% at Rs695, Reliance Industries spurted 2.89% at Rs1,769, Satyam Computers jumped by 2.82% at Rs493, M&M scaled up by 2.72% at Rs825, BHEL advanced by 2.58% at Rs1,684, HDFC Bank added 2.48% at Rs1,231 and ACC rose 2.18% at Rs1,096. Among the laggards TCS slumped by 2.10% at Rs1,137, Dr Reddy's Lab dropped 2.03% at Rs668, HLL slipped 1.51% at Rs203, Ranbaxy shed 1.48% at Rs353 and Reliance Communication fell by 1.21% at Rs555.
Metal stocks were in limelight today. SAIL vaulted by 10.49% at Rs160, Hindustan Zinc soared 7.99% at Rs798, Sesa Goa zoomed 6.12% at Rs1,909, Shree Precoated advanced 6.02% at Rs407, Hindalco shot up by 5.99% at Rs174 and JSW Steel added 5.17% at Rs723.
Over 1.07 crore Silverline Technologies shares changed hands on the BSE followed by Reliance Natural Resources (97.56 lakh shares), IFCI (92.95 lakh shares), SAIL (64.22 lakh shares) and G V Films (57.61 lakh shares).
Value-wise GMR Infrastructure registered a turnover of Rs396 crore on the BSE followed by India Infoline (Rs186 crore), Reliance Industries (Rs175 crore), Infosys (Rs169 crore) and DLF (Rs152 crore).
Alpa Laboratories
Indore-based Alpa Laboratories (promoted by Purshottam Patel, M S Chawla, and Pravin Shah) manufactures pharmaceutical formulations with a range of products such as ethical drugs, generic drugs, over-the-counter drugs (OTC) and veterinary products in various dosage forms and markets them under the trademark, Alpa. It also undertakes contract manufacturing of formulations for a number of other pharmaceutical companies such as Cipla, Zydus Cadila, Lupin, Glenmark, Genom Biotech, and Jenburkt located both in India and abroad mainly in unregulated and semi-regulated markets in Africa, Latin America and Asia. For its own products, the company has established a marketing network covering both metro and mini-metro cities through a number of distributors and dealers spread across the country.
Alpa Laboratories is currently operating its capacities at nearly 90% utilisation. To cater to rising demand, it has planned a massive expansion program to add 1.5 times its existing overall capacity at a capital cost of Rs 58.21 crore with the commissioning scheduled for April 2008. The new plant is planned to be US FDA-compliant considering export prospects. The company is approaching the capital markets to mop up around Rs 65 crore to finance this expansion besides augmenting working capital and other contingencies.
Holding approvals to manufacture 1,366 formulations based on around 50 active pharma ingredients (APIs), Alpa Laboratories routinely manufactures 300 to 350 formulations based on market demand and limited formulation lines. The existing flexible manufacturing infrastructure helps it to change product-mix in response to changes in market demand. The company has been continually World Health Organisation(WHO) Good Manufacturing Practices (GMP)-certified since 2001. In the overseas semi-regulated markets, which contributed around 11% of sales in the year ending March 2007 (FY 2007), Alpa Laboratories holds registrations for around 40 formulations. Nearly 90 more are likely to get registered over the next 12 months.
After converting its veterinary segment, generating around 4% of its annual revenue, to ethical marketing in five states in India with an initial range of 27 products, Alpa Laboratories plans to start ethical marketing for human formulations as well, particularly for the high-value products that it manufactures.
Efforts are on to reduce the low-margin contract manufacturing business, contributing around 30% of the revenue. But once the expanded capacities come into play, Alpa Laboratories will try to include MNC pharmaceutical companies in its clientele for contract manufacturing.
Strengths:
Alpa Laboratores plans to venture into segments such as pro- and pre-biotics and pre-filled syringes due to consistent demand. Will also diversify into lifestyle disorder segments including diabetes, cardio-vascular and gynecology. Entry into such higher-end segments is likely to improve operating profit margin (OPM)..
Export is a lucrative market giving better margin compared with the domestic business. On completion of the expansion programme, the company will be able to ramp up exports, helped by the rising number of overseas product registrations.
Weaknesses:
Although implementation has started, the expansion project is behind schedule by three months and may get further delayed due to factors such as government approvals or delivery of equipment. So far has not placed orders for any of its capital equipment requirement.
Incurred negative cash flows in three out of the last five years including year ended March 2007.
The promoter group company, Alpa Labs (India), owns the trademark, Alpa, which the company has licensed. Alpa Labs (India) has common objects as per its memorandum of association, which could give rise to conflicts in future.
Valuation:
Alpa Laboratories has set a price band of Rs 62 to Rs 68 per equity share of Rs 10 each face value. At the lower band of Rs 62, P/E works out to 20.7. At the higher band of Rs 68, P/E is 22.7 based on FY 2007 EPS of Rs 3 on post-issue equity of Rs 21.56 crore. There are several listed pharmaceutical players focusing on the formulations business. The group of such companies is trading at a composite P/E of 13.2 only.
Market to scale fresh peaks
The market is expected to scale fresh peaks on buying momentum in the week beginning 16 July 2007.
Strong global markets, fresh buying at higher levels, healthy inflow from foreign funds and domestic mutual funds, easing fears of interest rate hike, anticipation of robust set of Q1 June 2007 results were some of the factors that led a solid rally on the bourses in the week ended 13 July 2007.
The BSE 30-share Sensex jumped 308.60 points in the week ended 13 July 2007 to settle at a record closing high of 15,272.72. It also struck an all-time high of 15,330.73 in intra-day trade.
However, profit booking cannot be ruled out at higher levels. Also any spike in crude oil prices from the current levels may put brakes on rally. As per latest data, Brent crude was hovering at the $77 a barrel mark
Mahanagar Telephone Nigam, Zee Entertainment Enterprises, Reliance Energy, DLF Larsen & Toubro, Ambuja Cement and Ultratech Cement Company will announce their Q1 June 2007 in the coming week.
Besides, the following companies from small and mid-cap space, too will announce their Q1 June 2007 results in the coming week: Garware Offshore Services, Sesa Goa, Dish TV India, Blue Dart Express, 3M India, Sonata Software, Tata Coffee, 3M India, Shanthi Gears, Zensar Technologies, Dolphin Offshore Enterprises (India), Aventis Pharma, Jubilant Organosys, Alembic, Industrial Development Bank of India, Tanla Solutions, Plethico Pharmaceuticals and Ashok Leyland
Sensex, Nifty settle at new peaks
The market continued its winning streak on strong buying momentum in index pivotals in the week ended 13 July 2007. Strong markets across the globe, fresh buying at higher levels, healthy inflow from foreign funds and domestic mutual funds and anticipation of robust set of Q1 June 2007 results triggered the rally on the bourses. Shares from the metal, capital goods, and real estate sectors advanced, while those from the IT sector slipped.
The BSE 30-share Sensex jumped 308.60 points in the week ended Friday, 13 July 2007, to settle at a record closing high of 15,272.72. Tractor and utility vehicle maker Mahindra & Mahindra replaced Hero Honda in the BSE Sensex from 9 July 2007.
The S&P Nifty added 119.70 points to record closing high of 4,504.55, in the week.
Trading for the week began on an upbeat note. The Sensex rose 81.61 points, or 0.55%, to 15,045.73, an all-time closing high, tracking firm Asian markets, on Monday 9 July 2007.
The market drifted lower on Tuesday, 10 July 2007, as caution prevailed ahead of Infosys’ earnings. The Sensex lost 36 points.
The market extended the fall on Wednesday 11 July 2007, tracking weak global markets and after IT bellwether Infosys Technologies slashed its EPS and revenue guidance for FY 2008 in rupee terms while announcing Q1 June 2007 results.
The market bounced back on Thursday, 12 July 2007. Firm global markets and strong industrial production data for May 2007 released by the government during trading hours, aided the surge. The Sensex jumped 181.42 to 15,092.04.
On Friday, 13 July 2007, the Sensex surged 180.68 points to 15,272.72, an all-time closing high, tracking strong global markets. It also struck an all-time high of 15,330.73 in intra-day trade
Metal shares advanced on strong buying momentum. Aluminiun and copper major Hindalco Industries galloped 13% to Rs 174.35 on hopes of consolidation in the global aluminium industry after global miner Rio Tinto launched today, 13 July 2007, a $38.1-billion offer to buy Canada's Alcan Inc. in an agreed deal to create the world's No. 1 aluminium producer, feeding expectations of more deals. Rio trumped a hostile bid by Alcoa Inc., now seen vulnerable to becoming a takeover target itself.
Sterlite Industries, Sesa Goa, Tata Steel, Hindustan Zinc and Sail also edged higher from the metal pack.
Bhel & L&T, bets on India’s infrastructure growth, struck all-time highs in the week. Both these firms are sitting on robust order books that provide a strong visibility of revenue growth.
Reliance Energy soared after the company said it plans to invest Rs 60,000 crore to add 15,000 mega watts (MW) of power over the next five years. This will boost the company’s generation capacity almost 17 times from 941 MW now. The stock was also boosted by market rumors that promoters may hike their stake in REL by 5%, taking it around to 40%
Index heavyweight Reliance Industries (RIL) gained 3.33% to Rs 1,768.50. The government has set up a Group of Ministers (GoM) to look into all aspects - production to pricing - of gas to be produced from newer areas, particularly in the deep sea. The GoM, headed by External Affairs Minister Pranab Mukherjee, would decide on production, utilisation, transportation and pricing of gas.
IT stocks saw some unwinding after IT bellwether Infosys Technologies dissapointed with results. Infosys' consolidated net profit as per Indian GAAP was down 5.6% to Rs 1079 crore in Q1 June 2007, from Rs 1,144 crore in Q4 March 2007. Revenue was almost unchanged at Rs 3,773 crore in Q1 June 2007 compared to Rs 3,772 crore in Q4 March 2007.
Infosys Technologies, Satyam Computers, Wipro and TCS all settled the week with losses.
GMR Infrastructure spurted 23.12% to Rs 911.95 after it bagged the tender for developing the Sabiha Gokcen International (SGA) airport in Istanbul, Turkey. SGA is the second airport in Istanbul besides Istanbul Ataturk airport.
BSE Realty index, launched by BSE on Tuesday, 10 July 2007, surged soon after its launch and it struck an all-time high of 8,041.37 on Friday, 13 July 2007. Two heavyweights in this index, Unitech and DLF, contributed to the rally.
Roman Tarmat settled at Rs 319.85 on BSE, a premium of 82.77% over the IPO price of Rs 175, on Monday, 9 July 2007. Roman Tarmat is a Mumbai-based infrastructure company constructing highways, runways and other civil work.
Ankit Metal & Power settled at a premium of 2.63% at Rs 36.95 on BSE on its debut on Tuesday, 10 July 2007, compared to the IPO price of Rs 36.
Meanwhile, industrial production data was released during the week. Industrial production rose an annual 11.1% in May 2007, lower than a downwardly revised annual growth of 12.4% in April 2007. The growth in April 2007 was revised downward from 13.6% reported earlier. The growth was an annual 11.7% in May 2006. Manufacturing production rose an annual 11.9% in May 2007 compared with provisional annual growth of 15.1% in April 2007.
As per reports, the committee on secretaries has given a go-ahead to public sector enterprises (PSEs) to invest a part of their cash reserves, estimated at over Rs 250000 crore, in mutual funds. Reports suggest that PSEs may be allowed to invest up to 10% of surplus cash in equity mutual funds
On Thursday, 12 July 2007, the government cleared 28 fresh SEZ proposals, including the Navi Mumbai project promoted by Reliance Industries chairman Mukesh Ambani, taking the total number of approvals to over 500.
On the same day, the government asked banks to reduce interest rates on loans given to exporters. The government will provide 2% grant to loans given to exporters. The concessions will cost the government Rs 800 crore this fiscal.
Inflation data released on 13 July 2007 showed a slight rise in inflation for the week ended 30 June 2007: 4.27% per annum as against 4.13% in the previous week due to costlier food and manufactured products. However, it was lower when compared to the annual inflation rate of 5.21% during the comparable week of the previous year.
Sensex, Nifty settle at new peaks
The market continued its winning streak on strong buying momentum in index pivotals in the week ended 13 July 2007. Strong markets across the globe, fresh buying at higher levels, healthy inflow from foreign funds and domestic mutual funds and anticipation of robust set of Q1 June 2007 results triggered the rally on the bourses. Shares from the metal, capital goods, and real estate sectors advanced, while those from the IT sector slipped.
The BSE 30-share Sensex jumped 308.60 points in the week ended Friday, 13 July 2007, to settle at a record closing high of 15,272.72. Tractor and utility vehicle maker Mahindra & Mahindra replaced Hero Honda in the BSE Sensex from 9 July 2007.
The S&P Nifty added 119.70 points to record closing high of 4,504.55, in the week.
Trading for the week began on an upbeat note. The Sensex rose 81.61 points, or 0.55%, to 15,045.73, an all-time closing high, tracking firm Asian markets, on Monday 9 July 2007.
The market drifted lower on Tuesday, 10 July 2007, as caution prevailed ahead of Infosys’ earnings. The Sensex lost 36 points.
The market extended the fall on Wednesday 11 July 2007, tracking weak global markets and after IT bellwether Infosys Technologies slashed its EPS and revenue guidance for FY 2008 in rupee terms while announcing Q1 June 2007 results.
The market bounced back on Thursday, 12 July 2007. Firm global markets and strong industrial production data for May 2007 released by the government during trading hours, aided the surge. The Sensex jumped 181.42 to 15,092.04.
On Friday, 13 July 2007, the Sensex surged 180.68 points to 15,272.72, an all-time closing high, tracking strong global markets. It also struck an all-time high of 15,330.73 in intra-day trade
Metal shares advanced on strong buying momentum. Aluminiun and copper major Hindalco Industries galloped 13% to Rs 174.35 on hopes of consolidation in the global aluminium industry after global miner Rio Tinto launched today, 13 July 2007, a $38.1-billion offer to buy Canada's Alcan Inc. in an agreed deal to create the world's No. 1 aluminium producer, feeding expectations of more deals. Rio trumped a hostile bid by Alcoa Inc., now seen vulnerable to becoming a takeover target itself.
Sterlite Industries, Sesa Goa, Tata Steel, Hindustan Zinc and Sail also edged higher from the metal pack.
Bhel & L&T, bets on India’s infrastructure growth, struck all-time highs in the week. Both these firms are sitting on robust order books that provide a strong visibility of revenue growth.
Reliance Energy soared after the company said it plans to invest Rs 60,000 crore to add 15,000 mega watts (MW) of power over the next five years. This will boost the company’s generation capacity almost 17 times from 941 MW now. The stock was also boosted by market rumors that promoters may hike their stake in REL by 5%, taking it around to 40%
Index heavyweight Reliance Industries (RIL) gained 3.33% to Rs 1,768.50. The government has set up a Group of Ministers (GoM) to look into all aspects - production to pricing - of gas to be produced from newer areas, particularly in the deep sea. The GoM, headed by External Affairs Minister Pranab Mukherjee, would decide on production, utilisation, transportation and pricing of gas.
IT stocks saw some unwinding after IT bellwether Infosys Technologies dissapointed with results. Infosys' consolidated net profit as per Indian GAAP was down 5.6% to Rs 1079 crore in Q1 June 2007, from Rs 1,144 crore in Q4 March 2007. Revenue was almost unchanged at Rs 3,773 crore in Q1 June 2007 compared to Rs 3,772 crore in Q4 March 2007.
Infosys Technologies, Satyam Computers, Wipro and TCS all settled the week with losses.
GMR Infrastructure spurted 23.12% to Rs 911.95 after it bagged the tender for developing the Sabiha Gokcen International (SGA) airport in Istanbul, Turkey. SGA is the second airport in Istanbul besides Istanbul Ataturk airport.
BSE Realty index, launched by BSE on Tuesday, 10 July 2007, surged soon after its launch and it struck an all-time high of 8,041.37 on Friday, 13 July 2007. Two heavyweights in this index, Unitech and DLF, contributed to the rally.
Roman Tarmat settled at Rs 319.85 on BSE, a premium of 82.77% over the IPO price of Rs 175, on Monday, 9 July 2007. Roman Tarmat is a Mumbai-based infrastructure company constructing highways, runways and other civil work.
Ankit Metal & Power settled at a premium of 2.63% at Rs 36.95 on BSE on its debut on Tuesday, 10 July 2007, compared to the IPO price of Rs 36.
Meanwhile, industrial production data was released during the week. Industrial production rose an annual 11.1% in May 2007, lower than a downwardly revised annual growth of 12.4% in April 2007. The growth in April 2007 was revised downward from 13.6% reported earlier. The growth was an annual 11.7% in May 2006. Manufacturing production rose an annual 11.9% in May 2007 compared with provisional annual growth of 15.1% in April 2007.
As per reports, the committee on secretaries has given a go-ahead to public sector enterprises (PSEs) to invest a part of their cash reserves, estimated at over Rs 250000 crore, in mutual funds. Reports suggest that PSEs may be allowed to invest up to 10% of surplus cash in equity mutual funds
On Thursday, 12 July 2007, the government cleared 28 fresh SEZ proposals, including the Navi Mumbai project promoted by Reliance Industries chairman Mukesh Ambani, taking the total number of approvals to over 500.
On the same day, the government asked banks to reduce interest rates on loans given to exporters. The government will provide 2% grant to loans given to exporters. The concessions will cost the government Rs 800 crore this fiscal.
Inflation data released on 13 July 2007 showed a slight rise in inflation for the week ended 30 June 2007: 4.27% per annum as against 4.13% in the previous week due to costlier food and manufactured products. However, it was lower when compared to the annual inflation rate of 5.21% during the comparable week of the previous year.
Sensex, Nifty settle at lifetime highs
The market saw steady buying interest throughout the day’s trading session except for the odd blip in late-afternoon trade, which was marked by some volatility. Shares from the metal pack were in theforefront, while auto and cement stocks also participated in the rally. Pharma and real estate shares were offloaded today, 13 July 2007.
The market opened on a strong note tracking cues from firm global markets. Data showed a slight rise in inflation for the week ended 30 June 2007: 4.27% per annum as against 4.13% in the previous week due to costlier food and manufactured products. However, it was lower when compared to the annual inflation rate of 5.21% during the comparable week of the previous year.
Meanwhile, the government today revised the inflation rate for the week ended 5 May to 5.74% from the provisional estimate of 5.44%.
The 30-share BSE Sensex surged 180.68 points to 15,272.72, an all-time closing high. It opened higher at 15,216.83 (also its low for the day), and rallied to strike an all-time high of 15,330.73 at 13:26 IST as buying intensified.
The S&P CNX Nifty rose 58.40 points to 4,504.55. It had struck an all-time high of 4,513.90 in intra-day trade.
The positive market breadth till mid-afternoon session turned negative on BSE, with 1,566 shares declining as compared to 1,164 that advanced, while 50 remained unchanged.
The BSE Mid-Cap Index rose 12.61 points, or 0.19%, to 6,795.30, after striking an all-time high of 6,863.71. The BSE Small-Cap Index gained 0.01% to 8,216.14. It also hit an all-time high of 8,320.47 during intra-day trades.
The total turnover on BSE vaulted in the last hour of trade, amounting to Rs 6,714 crore as compared to Rs 5,325 crore by 14:30 IST
Among the Sensex pack, 21 scrips were trading up, while the rest were down.
Metal stocks dominated the list of gainers. The BSE Metal Index surged 4.58% at 12,000.90, and was the top gainer among the sectoral indices on BSE.
Aluminiun and copper major Hindalco Industries galloped 6.20% to Rs 174.70 on high volumes of 49.99 lakh shares. It was the top gainer from the Sensex pack. The stock rose on hopes of consolidation in the global aluminium industry after global miner Rio Tinto launched today, 13 July 2007, a $38.1-billion offer to buy Canada's Alcan Inc. in an agreed deal to create the world's No. 1 aluminium producer, feeding expectations of more deals. Rio trumped a hostile bid by Alcoa Inc., now seen vulnerable to becoming a takeover target itself.
Sterlite Industries surged 4.03% to Rs 668. Its ADR jumped 7.8% on NYSE. Other shares from the metal pack, Sesa Goa (up 6.75% to Rs 1919.95), Tata Steel (up 2.92% to Rs 691.90), Hindustan Zinc (up 8.24% to Rs 799.80), and Sail (up 14% to Rs 164.60) edged higher.
Index heavyweight Reliance Industries (RIL) extended early gains and was up 2.74% to Rs 1,766 on 9.83 lakh shares. The government has set up a Group of Ministers (GoM) to look into all aspects - production to pricing - of gas to be produced from newer areas, particularly in the deep sea. The GoM, headed by External Affairs Minister Pranab Mukherjee, would decide on production, utilisation, transportation and pricing of gas.
State-run oil exploration major Oil & Natural Gas Corporation (ONGC) added 0.99% to Rs 901.80. Led by RIL & ONGC, the BSE Oil and Gas Index advanced 1.8% to 7,819.67.
Cement shares advanced on renewed buying after cement sales increased of 4.6% in June 2007 over June 2006. Production rose 5.6% to 13.66 million tonnes in June 2007 as against 12.94 million tonnes a year earlier, according to provisional figures compiled by the Cement Manufacturers' Association (CMA). Cement shares are seen to be benefiting from the recent hike of prices by Rs 3-to Rs 5 per 50-kilogram bag across India.
ACC (up 2.35% to Rs 1097.50), UltraTech Cement (up 2.94% to Rs 925.70), Ambuja Cements (up 2.20% to Rs 129) and Grasim Industries (up 1.61% to Rs 2865) gained from the cement pack.
Capital goods shares saw buying as investors bet on their strong order book position. State-run engineering major Bhel gained 2.96% higher to Rs 1,690 after striking an all-time high of 1,715. L&T rose 0.95% to Rs 2,400 after hitting an all-time high of Rs 2,450. Larsen & Toubro today bagged two contracts worth Rs 853 crore.
Cigarette major ITC gained 2% to Rs 156 on high volumes of 46.30 lakh shares after a block deal of 26.57 lakh shares was struck on the counter at Rs 155.30 per share on BSE by 10:18 IST.
ICICI Bank gained 0.36% to Rs 970, after state-owned Dubai International Capital said on Thursday, 13 July 2007, it bought 2.87% of India's second-largest lender with more than $79 billion in assets. The agency was now one of the largest investors in the bank.
Auto stocks gained as fears of interest rate hike in near future eased. Tata Motors (up 3.72% to Rs 174.70), Mahindra & Mahindra (up 2.52% to Rs 823.30) and Maruti Udyog (up 0.16% to Rs 829) gained from the auto pack. The BSE Auto Index rose 1% to 5,058.45.
IT major TCS lost the most in the Sensex pack. It was down 2.51% to Rs 1,132 on 3.80 lakh shares. The company unveils its Q1 June 2007 results on Monday 16 July 2007.
But IT bellwether Infosys was 0.69% to Rs 1,935 on renewed speculation that it is bidding for Capgemini.
The rupee was steady on Friday, 13 July 2007, despite the dollar's weakness against some currencies and surging stocks as traders were worried that the Reserve Bank of India (RBI) may again intervene aggressively to curb gains. At 10:05 IST, the partially convertible rupee was at 40.50/40.51, unchanged from the previous close.
Pharma shares saw some unwinding today. Cipla (down 0.89% to Rs 211.60), Ranbaxy Laboratories (down 1.44% to Rs 353.45), and Dr Reddy’s Laboratories (down 1.93 % to Rs 669) edged lower. The BSE Healthcare index lost 0.51% to 3,848.65.
Real-estate stocks slipped after a recent rally. The BSE Realty index, launched by BSE on Tuesday, 10 July 2007, surged today and struck an all-time high of 8,041.37. It settled 1.31% lower at 7,777.64, and was the top loser among the sectoral indices on BSE. Unitech (down 1.58% to Rs 563.50), Parsvnath Developers (down 3.95% to Rs 377.40), Sobha Developers (down 2.52% to Rs 927) and Mahindra Gesco Developers (down 1.10% to Rs 562) slipped.
Aditya Birla Nuvo surged 10.91% to Rs 1512.05 on reports that the Aditya Birla group is scouting for emerging opportunities in the financial services sector. The group had roped in Prudential Corporation (Asia) chief executive (fund management) to head its financial services portfolio.
Monnet Ispat (up 12.21% to Rs 329), Gujarat Mineral Development Corporation (up 8.86% to Rs 928), Madras Aluminium (up 14.15% to Rs 634), Man Industries (up 11.20% to Rs 309) and Kothari Products (up 10% to Rs 870.50) surged from the small and mid-caps pack.
Real-estate major DLF lost 1.78% to Rs 599.70. It is reportedly buying 100 acres of land from the DCM Group in west Delhi. This is the country’s largest land deal. The deal has been struck at Rs 1,750 crore, beating Unitech’s Rs 1,500-crore land deal in Noida a few months ago.
India Infoline jumped 5.94% to Rs 811 on reports that it's planning to venture into consumer finance business. Reportedly, the company is looking for private equity funding or a strategic partner for its new venture, India Infoline Finance Holding (IIFH). The newly formed holding company for the retail financing business will be valued at Rs 800 crore - Rs1,000 crore. India Infoline will infuse around Rs 200 crore into IIFH directly, and around $100 million would be raised either through private equity or stake dilution to the extent of 30%-40%.
Great Offshore advanced 2.83% to Rs 826.95 after it received a Rs 1,000-crore contract from ONGC. The contract is slated to commence before May 2009. The company made the announcement after market hours yesterday, 12 July 2007.
Tata Metaliks declined 4% to Rs 141.95 even though net profit increased 45.32% in Q1 June 2007 to Rs 15.36 crore as against Rs 10.57 crore in Q1 June 2006. Sales jumped 32.82% to Rs 211.28 crore (Rs 159.07 crore). The results were announced during the market hours today 13 July 2007
All the Asian markets rallied on Friday, 13 July 2007, buoyed by a strong overnight rally on the Wall Street, with indices in South Korea, Singapore and Taiwan hitting record highs. China’s Shanghai Composite down 0.04% to 3,914.25, was the only exception
Hong Kong's Hang Seng (up 1.27% at 23,099.29), Japan's Nikkei (up 1.42% at 18,238.95), Taiwan's Taiwan Weighted (up 1.25% at 9,471.30), Singapore's Straits Times (up 0.83% at 3,654.61) and South Korea's Seoul Composite (up 2.78% at 1,963.73) edged higher.
All the European indices were trading with gains
Wall Street shares soared on Thursday, 12 July 2007, propelling the Standard & Poor's 500 index and Dow Jones Industrials Average to record highs as investors tossed aside concerns about the health of the economy amid sluggish retails sales.
The Dow Jones surged 283.86 points, or 2.09%, to 13,861.73. Thursday's rally was the biggest one-day percentage gain for the blue chip index since October 2003 and the biggest single-session point gain since October 2002. The Dow also reached a new trading high of 13,869.94.
The S&P 500 rose 28.94 points, or 1.91%, to 1,547.70, above its record close of 1,539.18, set on 4 June 2007. The Nasdaq Composite index rose 49.94 points, or 1.88%, to 2,701.73. Still, the index, bloated by the late 1990s tech boom, is nowhere near its closing record of 5,048.62, set in March 2000.
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