The two key indices, BSE Sensex and S&P CNX Nifty witnessed a divergent trend last week. While Sensex rose, Nifty declined. Both the niche indices struck all-time highs in the week. Sensex hit all-time high above 21,000. Small-cap and mid-cap indices underwent a major correction ever since they hit all-time highs on 8 January 2008. Volatility was high throughout the week.
The 30-share BSE Sensex gained 140.56 points or 0.67% to 20,827.45 in the week ended Friday, 11 January 2008. The S&P CNX Nifty declined 74.20 points or 1.18% to 6,200.10 in the week.
The BSE Mid-Cap index lost 674.58 points or 6.67% to 9,438.48 in the week. The BSE Small-Cap index declined 1190.09 points or 8.57% to 12,694.02 in the week. Both these indices underperformed the Sensex.
Trading for the week started on an upbeat note with the BSE Sensex rising 125.76 points to 20,812.65, on 7 January 2008 on selective buying in index pivotals.
Buying support continued on 8 January 2008, with Sensex gaining 60.68 points to 20,873.33, a record closing high. The BSE Mid-Cap index struck an all time high of 10,245.81 while the BSE Small-Cap index hit an all time high of 14,239.24 on that day.
The 30-share BSE Sensex declined 3.55 points or 0.02% to 20,869.78 on 9 January 2008. The broader CNX S&P Nifty lost 15.85 points or 0.25% to 6,272.
The 30-share BSE Sensex slumped 287.70 points to 20,582.08 on 10 January 2008 on profit booking in index pivotals. It hit a record high of 21,206.77 in mid-morning trade.
The market showed volatile swings on Friday, 11 January 2008. The 30-share BSE Sensex surged 245.37 points to 20,827.45, led by Reliance Industries and ICICI Bank.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries advanced 4.77% to Rs 3128.15.
India’s largest private sector bank by assets ICICI Bank surged 12.02% to Rs 1439.90 on reports the bank will list at least 4 arms starting with ICICI Securities in next 6 months though board is yet to decide on securities arm listing.
India’s second largest software exporter by sales Infosys Technologies declined 6.77% to Rs 1580.10 in the week. Infosys’ consolidated net profit as per Indian GAAP rose 11.9% to Rs 1231 crore on 4% rise in net sales to Rs 4271 crore in Q3 December 2007 over Q2 September 2007.
Tata Motors was down 2.80% to Rs 762.45 in the week. The company unveiled people's car (Rs 1 lakh) christened Nano on 10 January 2008. Tata Motors will commercially launch Nano in the second half of 2008.
India's largest engineering & construction firm in terms of revenue, Larsen & Toubro (L&T) declined 1.63% to Rs 4175.10 in the week. It secured two major contracts from Cairn India for its project located near Barmer in Rajasthan.
India's biggest power equipment maker by revenue, Bharat Heavy Electricals (Bhel), declined 4.34% to Rs 2435.15 in the week. The company signed a joint venture agreement with NTPC for establishment and operation of a joint venture company for taking up engineering, procurement and construction business.
Mahindra & Mahindra, India's biggest tractor and utility vehicle maker by revenue, slipped 5.87% to Rs 774.75 in the week. It acquired the business of G R Grafica Ricerca Design S.r.l (GRD), an Italian auto designing, body engineering and feasibility and styling company based in Turin, Italy.
On 8 January 2008, Manaksia settled at Rs 168.10 on BSE a premium of 5.06% over the IPO price of Rs 160. Manaksia’s business is spread across aluminium sheets, galvanised steel sheets, mosquito coils and metal packaging products.
On 11 January 2008, Precision Pipes and Profiles Company settled at Rs 138.65 on BSE, a discount of 7.57% over the IPO price of Rs 150. Precision Pipes and Profiles Company (PPAP) is engaged in the business of manufacturing automobile sealing systems and exterior products. On the same day, Aries Agro settled at Rs 251.60 on BSE, a premium of 93.54% over the IPO price of Rs 130. Aries Agro is engaged in the manufacture of agricultural products.
FII inflow in calendar year 2008 amounted to Rs 3176.70 crore (till 10 January 2008). Mutual funds bought shares worth a net Rs 1473 crore in the first few days of the New Year, till 10 January 2008.
Based on data from fund groups reporting activity daily and weekly, flows into global emerging markets funds surged 380% in 2007 and flows into Latin America equity funds were up 308% from 2006.
India will continue to witness dynamic growth in 2008, on account of investment in the manufacturing and service sectors, and will be largely insulated from weakness in the global economy, as per a report dated 10 January 2008 by the United Nations
Union oil minister Murli Deora scheduled first meeting of a ministerial panel on fuel pricing on 17 January 2008 to discuss a response to scorching global crude oil prices.
Car sales climbed up 8.9% to 88,220 units in December 2007 over December 2006. Sales of commercial vehicles, trucks and buses, edged up 1.4% to 42,508 in December 2007 on an annual basis.
In a conference in New Delhi held on 9 January 2008, Commerce and Industry Minister Kamal Nath said domestic cement prices were high due to a demand-supply mismatch and higher imports were necessary to bridge the gap. The minister also informed that the government is monitoring cement prices.