Market ends slightly higher

After holding positive ground for most part of the day, the market succumbed to selling pressure in late trade erasing almost all gains. Subdued trend in European markets, which opened after Indian market, led to weakness later in the day.

The market witnessed a bout of volatility in the second half of the day. Strong response to the IPO of Rural Electrification Corporation, which opened for bidding today, had aided the rally on the bourses in early afternoon trade. Asian markets which opened before Indian market, were firm.

The market breadth was strong. 16 shares of 30-member Sensex pack advanced. Bajaj Auto surged 6% on fresh buying.

The IPO of Rural Electrification Corporation (REC) was subscribed 2.13 times by 16:00 IST. The IPO received bids for 33.32 crore shares as compared to 15.61 crore shares on offer. The price band for the IPO is Rs 90 to Rs 105.

The 30-share BSE Sensex rose 27.61 points or 0.15% at 18,075.66. Sensex had surged 266.05 points to hit a high of 18,314.10 in early trade. It lost 29.57 points at day’s low of 18,018.48 hit in late trade.

At current 18,075.66, Sensex trades at a PE multiple of 17.21 to 18.07, based on projected FY 2009 EPS of Rs 1000-to-Rs 1050 for 30 Sensex companies.

The broader based S&P CNX Nifty gained 3.90 points or 0.07% at 5,280.80. Nifty February 2008 futures were at 5250.25, a discount of 30.55 points as compared to spot closing

The market breadth was strong: On BSE 1,519 shares advanced as compared to 1228 that declined. 61 shares remained unchanged.

The BSE Mid-Cap index was up 0.57% to 7,685.33 and the BSE Small-Cap index rose 0.41% to 9,795.54. Both these indices outperformed the Sensex.

The total turnover amounted to Rs 5114 crore on BSE as compared to Rs 4,965.20 crore on Monday, 18 February 2008.

Turnover in NSE’s futures & options segment amounted to Rs 36397.03 crore as compared to Rs 32416.67 crore on Monday, 18 February 2008.

Sectoral indices on BSE displayed mixed trend. The the BSE Consumer Durables index (up 2.85% to 4,842.64), the BSE Auto (up 1.62% at 4,866.49), the BSE FMCG index (up 0.49% at 2,269.29), the BSE Health Care index (up 1.33% at 3,727.14), the BSE Bankex (up 0.17% at 10,963.76), the BSE Capital Goods index (up 0.43% at 16,392.27), the BSE IT (up 0.54% to 3,849.77), the BSE TecK index (up 0.21% to 3,339.65), outperformed the Sensex.

The BSE PSU index (down 0.43% to 8,535.79), the BSE Metal index (down 0.23% to 16,209.95), the BSE Oil & Gas index (down 0.38% to 11,130.88), the BSE Power (down 1.13% to 3,710.30), the BSE Realty index (down 1.33% at 10,070.74), underperformed the Sensex.

Bajaj Auto, the country’s second largest bike manufacturer surged 5.96% to Rs 2331 on 1.22 lakh shares. It was the top gainer from Sensex pack. The stock was in the red till afternoon trade. Its low for the day is at Rs 2185. Bajaj Auto today said the Bombay High Court has sanctioned a scheme of arrangement between the company, Bajaj Holdings & Investment and Bajaj Finserv and their respective shareholders and creditors.

India’s second largest cement manufacturer in terms of sales, ACC gained 4.82% to Rs 792.50, off sharply from day’s low of Rs 752.25.

Other cement shares, Ambuja Cement (up 0.83% to Rs 116), UltraTech Cement Company (up 0.20% to Rs 892), India Cement (up 1.36% to Rs 209.10) and Grasim (up 2.62% to Rs 2860), also logged gains

India’s largest private sector engineering company in terms of outstanding order book position, Larsen & Toubro rose 1.03% to Rs 3546.50. The company said on Monday, 18 February 2008, it has bagged an order worth Rs 1250 crore from Oil & Natural Gas Corporation.

India’s largest public sector engineering company in terms of net profit, Bharat Heavy Electricals rose 0.26% to Rs 2222. The company said during trading hours on Monday, 18 February 2008, it had bagged an order worth Rs 650 crore from General Electricity Company, Libya for setting up a 300 megatwatt gas turbine based power plant

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) slipped from day’s high of Rs 2616.80. It settled 0.78% lower to Rs 2532. 5.07 lakh shares changed hands. As per reports, the company is in advanced talks with the New York-based Vornado Realty Trust, one of the world’s top five real estate asset managers, to float a $1-billion plus fund.

ITC (down 2.29% to Rs 204.80) and DLF (down 2.77% to Rs 836), edged lower from the Sensex pack.

Pharma shares gained on fresh buying. Ranbaxy Laboratories (up 3.95% to Rs 412), Cipla (up 1.70% to Rs 187.95), and Lupin (up 3.63% to Rs 537.55), rose.

Banking shares posted marginal gains. HDFC Bank (up 0.54% to Rs 1565.35), State Bank of India (up 0.45% to Rs 2265), and ICICI Bank (up 0.41% to Rs 1213), rose

IT pivotals were mixed. Infosys Technologies (up 1.28% to Rs 1573), and TCS (up 3.23% to Rs 879.50), rose. Wipro (down 0.49% to Rs 412.50) and Satyam Computers (down 0.96% to Rs 421.90), declined

Mid-cap software shares outperformed their large-cap peers. NIIT Technologies (up 6.67% to Rs 128), Rolta India (up 3.33% to Rs 296.10), and KPIT Cummins Infosystems (up 4.88% to Rs 86), surged.

Shares of Anil Dhirubhai Ambani group (ADAG) slipped. Reliance Energy, the country’s largest private sector utility company in terms of sales, slipped 4.71% to Rs 1617. It was the top loser from Sensex pack.

Other losers from ADAG group were, Reliance Communications (down 2.03% to Rs 600.25), Reliance Natural Resources (down 2.39% to Rs 139.60), and Adlabs Films (down 3.63% to Rs 910), slipped.

Reliance Power was down 0.46% to Rs 411.75 on volumes of 62.50 lakh shares. The stock had surged 7.53% to Rs 413.65 on Monday, 18 February 2008, after the company said on Sunday, 17 February 2008, its board will meet on Sunday, 24 February 2008, to consider issue of bonus shares.The bonus shares will be issued to non-promoter shareholders to compensate the losses suffered by them when the company was listed last week. The stock has been consistently trading at a discount to IPO price of Rs 450, since its listing on 11 February 2008.

India’s largest oil exploration company in terms of market capitalisation Oil & Natural Gas Corporation slipped 0.75% to Rs 1013.10 after hitting a high of Rs 1054 in early trade. As per reports, the company has been registered with Iraqi authorities for tenders to develop the world's third-largest oil reserves.

India’s largest real estate developer in terms of market capitalisation DLF lost 2.77% to Rs 836. As per reports, the company has entered into a joint venutre with Italian designer Giorgio Armani in the retailing sector.

OnMobile Global settled at Rs 521.90 on BSE, a premium of 18.6% over IPO price of Rs 440. The stock debuted at Rs 440, at the same price at which the IPO was priced. The stock hit a low of Rs 421 and high of Rs 579.90. On BSE, 1.97 crore shares changed hands in the counter.

OnMobile Global topped the turnover chart on BSE with a turnover of Rs 1042.25 crore followed by Reliance Natural Resources (Rs 298 crore), Reliance Capital (Rs 265.30 crore), Reliance Power (Rs 259.80 crore) and Reliance Energy (Rs 181.75 crore) in that order.

Reliance Natural Resources led the volume chart with 2.08 crore shares followed by OnMobile Global (1.97 crore shares), Ispat Industries (1.61 crore shares), Reliance Petroleum (1.02 crore shares) and Nagarjuna Fertilisers (87 lakh shares), in that order.

Among the side counters, Shoppers Stop (up 17.90% to Rs 467), Astra Microwave (up 17.90% to Rs 95.65), and Disa India (up 10.61% to Rs 2020), surged.

Cords Cable (down 7.80% to Rs 140.70), Jaiprakash Associates (down 7% to Rs 264.25), and Dish TV (down 5.99% to Rs 66.70), slipped

Fertiliser stocks rose after the government announced the issue of 7.95% Fertilizer Companies’ Government of India Special Bonds 2026 at par worth Rs 3,610 crore in the second and final tranche.

Tata Chemicals (up 4.85% to Rs 305), Nagarjuna Chemicals & Fertilisers (up 0.57% to Rs 53.05), National Fertilisers (up 5% to Rs 67.10), and Gujarat State Fertilisers & Chemicals (up 3.10% to Rs 247) edged higher. The first tranche came in December 2007 for bonds worth Rs 3,890 crore.

NIIT slipped 2.33% to Rs 111.05. The company said it has signed a memorandum of understanding with the provincial government of Wuxi, China to set up IT training centers and offer training programmes.

Financial Technologies India was down 0.46% to Rs 2182. The company said its unit Multi Commodity Exchange of India has filed draft red herring prospectus to raise Rs 500 crore via an initial public offering. Financial Technologies India currently holds about 32% in MCX.

Polaris Software Lab rose 6.75% to Rs 90.90. The company announced today that it has entered into a strategic partnership with City Networks. City Networks is a leader in the development and implementation of software and services for the treasury, securities and derivatives markets.

3i Infotech surged 6.57% to Rs 125.70 after the company said it has signed a non-binding memorandum of understanding with Yucheng Technologies, China to set up a 51:49 joint venture.

United Phosphorus slipped 2.45% to Rs 322.90. The company said on Monday, 18 February 2008, it has acquired Colombian marketing firm Evofarms group. Evofarms has several product registrations in Colombia and has a distribution network covering over 100 customers.

Everest Kanto Cylinder fell 0.43% to Rs 299.15. The company said its board has granted in-principle approval for acquiring the assets of a US-based manufacturing firm for $70 million

The Union Buget 2008-09 will be the key event to watch out for in the near term. The Budget would be presented by the finance ministry at the fag end of the month.

European markets fell today, 19 February 2008. Key benchmark indices in United Kingdom (down 0.21% to 5,934.10), France (down 0.61% to 4,832.23), and Germany (down 0.59% to 6,926.55) declined.

Asian markets settled with gains. Hong Kong's Hang Seng (up 1.53% at 24,123.17), China’s Shanghai Composite index (up 2.10% to 4,664.25), Japan's Nikkei (up 0.90% at 13,757.91), Taiwan's Taiwan Weighted index (up 1.69% at 8,024.22), South Korea's Seoul Composite index (up 1.45% at 1,720.91) and Singapore's Straits Times index (up 0.74% at 3,106.13) edged higher.

The US market was closed on Monday, 18 February 2008, for the Presidents' Day holiday.

Crude oil slipped today, 19 February 2008, as the market grappled with worries over an economic slowdown in the United States and supply concerns from Venezuela and Nigeria. U.S. light crude for March delivery was down 16 cents at $95.95 a barrel