Sensex garners 594 points; settles above 18,000

The market galloped in late trade, to snap its four-day loosing streak, on buying in pivotals. Fresh build-up of positions after a smooth expiry of January 2008 derivative contracts propelled market from lower level. January 2008 derivatives contracts expired on Thursday, 31 January 2008. Earlier today, the market had opened firm but it had slipped in mid-morning trade amid volatile swings before bouncing back.

European markets, which opened after Indian market advanced. Asian markets, which opened before Indian market, rallied after witnessing a shaky start.

Despite the rally, the market breadth was negative. Turnover was also subdued. Shares from software and auto pack were the key drivers of today’s rally. Inflation based on the wholesale price index (WPI) moved up to 3.93% for the week ended 19 January 2008 from 3.83% in the previous week.

The 30-share BSE Sensex vaulted 593.87 points or 3.36% at 18,242.58. Sensex hit a high of 18,312.40 in late trade. At the day's high, the Sensex gained 663.69 points. Sensex hit a low of 17,534.96 in early afternoon trade. At the day’s low, the Sensex lost 113.75 points. It oscillated in a band of 777.44 points for the day.

The broader based S&P CNX Nifty jumped 179.80 points or 3.50% at 5,317.25. Nifty February 2008 futures were at 5314, a discount of 3.25 points as compared to spot closing.

The market breadth was negative in contrast to a positive breadth in early trade: 1,630 shares declined on BSE as compared to 1120 that advanced. 48 shares remained unchanged. 28 out of 30 Sensex stocks advanced.

The BSE Mid-Cap index was down 5.08 points or 0.07% at 7,761.54. The BSE Small-Cap index slipped 52.10 points or 0.52% to 10,072.32.

Turnover in NSE's futures & options segment declined to Rs 35830.69 crore as compared to Rs 78768.81 crore yesterday, 31 January 2008

The total turnover amounted to Rs 35830.69 crore on BSE as compared to Rs 78768.81 crore yesterday, 31 January 2008

Most sectoral indices on BSE posted gains. BSE Metal index (up 3.75% to 15,910.16), BSE Auto (up 3.44% at 5,004.87), BSE IT index (up 5.70% at 3,934.27), BSE TecK index (up 4.07% to 3,420.32), outperformed the Sensex

BSE FMCG index (up 2.59% at 2,225.02), BSE Oil & Gas index (up 2.88% at 11,022.85), BSE Consumer Durables index (up 0.35% to 5,121.58), BSE Health Care index (up 1.08% at 3,642.71), BSE Bankex (up 1.62% at 10,890.27), BSE Capital Goods index (up 0.28% at 16,438.70), BSE Power (up 1.45% to 3,795.42), BSE Realty index (down 0.05% at 9,866.40), BSE PSU index (up 2.27% to 8,376.90), underperformed the Sensex

IT pivotals surged. India’s fourth largest software services exporter Satyam Computer surged 7.88% to Rs 419.90 on 7.23 lakh shares. It was the top gainer from Sensex pack.

Other IT pivotals - Infosys Technoliges (up 5.40% to Rs 1585), Wipro (up 6.21% to Rs 439) and TCS (up 6.71% to Rs 934) also logged gains.

Shares from mid-cap IT pack i flex Solutions (up 9.29% to Rs 1059), Tech Mahindra (up 8.30% to Rs 750), Rolta India (up 8.42% to Rs 253), NIIT Technologies (up 3.86% to Rs 138.40), and Polaris Sofware Lab (up 3.62% to Rs 85.90), also joined the rally

Auto stocks gained on fresh buying. Tata Motors, the country’s top truck market in terms of sales, advanced 6.35% to Rs 751. Its consolidated net profit rose 8.75% to Rs 654.79 crore on 13.85% growth in total income to Rs 9324.69 crore in Q3 December 2007 over Q3 December 2006. The results were announced after market hours on 31 January 2008.

Maruti Suzuki India (up 6.15% to Rs 900.90) and Bajaj Auto (up 4.26% to Rs 2456), were the other gainers from auto sector.

India’s top tractor maker in terms of sales, Mahindra & Mahindra rose 0.84% to Rs 675 after its sales rose 12 % to 22,309 units in January 2008 over January 2007.

India’s largest dedicated housing finance company in terms of revenue Housing Finance Development Corporation gained 5.47% to Rs 2999. The company said on Thursday that it has reduced its retail prime lending rate (RPLR) by 25 basis points, with effect from 1 February 2008.

Tata Steel (up 5.93% to Rs 777), Hindalco Industries (up 6.71% to Rs 176.90) and ONGC (up 6.10% to Rs 1048.50), were the other gainers from Sensex pack.

India’s largest power generation company in terms of market capitalisation National Thermal Power Corporation gained 3.59% to Rs 205. The company said on Wednesday, 30 January 2008 it would invest about Rs 4375 crore ($1.1 billion) in setting up a power plant in north-east India.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) recovered from day’s low of Rs 2424. It rose 2.10% to Rs 2531 on 6.49 lakh shares.

From the frontline banking pack, State bank of India (up 1.19% to Rs 2188), ICICI bank (up 5.10% to Rs 1204), and HDFC Bank (up 0.13% to Rs 1570), advanced.

Mid-cap state run banks were mixed. Andhra Bank (up 1.37% to Rs 92.25), Canara Bank (up 2.26% to Rs 296), and Vijaya Bank (up 1.83% to Rs 66.75), gained. Oriental Bank of Commerce (down 2.68% to Rs 247.20) and Punjab National Bank (down 0.40% to Rs 646), slipped.

DLF, the largest real estate developer in terms of market capitalisation was up 0.30% to Rs 815, off sharply from day’s high of Rs 870. The stock will replace Glaxosmithkline Pharmaceuticals, in S&P CNX Nifty index from 14 March 2008.

Cement shares rebounded from lower levels, but settled in red. India’s second biggest cement maker in terms of total production ACC slipped 3.72% to Rs 753.50, after sliding to a low of Rs 741.10. A total of 1.12 lakh shares changed hands on the counter. It was the top loser from Sensex pack.

North India’s largest cement company in terms of sales Ambuja Cements slipped 1.25% to Rs 118.10, off day’s low of Rs 115.30.

Future Capital Holdings settled at Rs 908 on BSE, at a premium of 19% over IPO price of Rs 765. The stock debuted at Rs 1044 on BSE, a premium of 36.44% over the IPO price. The scrip hit a low of Rs 826.10 and high of Rs 1100.

Future Capital Holdings was the most active counter with a turnover of Rs 784 crore followed by Reliance Energy (Rs 246 crore), Reliance Petroleum (Rs 178 crore), Reliance Natural Resources (Rs 177 crore) and Reliance Industries (Rs 162 crore) in that order.

Ispat Industries was the volume topper clocking volumes of 1.47 crore shares followed by Reliance Natural Resources (1.28 crore shares), Reliance Petroelum (1.07 crore shares), Himachal Futuristic Communications (93.68 lakh shares) and Future Capital Holdings (88.84 lakh shares), in that order

GMR Infrastructure rose 1.24% to Rs 176 after its consortium bagged a contract from the government of Nepal to build a 300 megawatt hydro electric project in Nepal.

GAIL India rose 0.97% to Rs 420.25 on reporting 6.6% fall in net profit to Rs 621.32 crore on 15.80% fall in net sales to Rs 4298.33 in Q3 December 2007 over Q3 December 2006. The results were announced after trading hours on Thursday, 31 January 2008.

Siemens declined 2.20% to Rs 1637 after it fixed 3 March 2008 as the record date for the purpose of 1:1 bonus issue.

Aurobindo Pharma slipped 0.14% to Rs 294 on bagging a contract worth Rs 70 crore for supplying three products to United Nations Office for Project Services, a non-government organization established by the United Nations.

Punj Lloyd declined 8.90% to Rs 402.90 despite posting 105.7% rise in net profit to Rs 39.16 crore on 91.10% rise in net sales to Rs 1,243.75 crore in Q3 December 2007 over Q3 December 2006. The company announced the results after market hours on 31 January 2008.

Rolta India surged 8.42% to Rs 253 on posting 10.79% rise in net profit to Rs 68.02 crore in on 9.80% rise in net sales to Rs 212.30 crore in Q2 December 2007 over Q1 September 2007. The results were announced after trading hours on Thursday, 31 January 2008.

Hero Honda Motors rose 7.40% to Rs 727. It reported 31.4% rise in net profit to Rs 275.01 crore on 3.5% growth in total income to Rs 2795.17 crore in Q3 December 2007 over Q3 December 2006. The results were announced after market hours on 31 January 2008.

Bharat Petroleum Corporation gained 6.18% to Rs 386 on reporting 4% fall in net profit to Rs 291.30 crore on 19.50% rise in net sales to Rs 28,928.40 crore in Q3 December 2007 over Q3 December 2006. The results were announced after trading hours on Thursday, 31 January 2008.

A good rollover in derivatives segment was witnessed when the January 2008 derivative contracts expired yesterday, 31 January 2008. As per reports, rollover of Nifty futures from January 2008 series to February 2008 series stood at 75% while rollover was 80% in stock futures

European markets, which opened after Indian market, were firm. Key benchmark indices in United Kingdom (up 1.43% to 5,963.80), France (up 1.56% to 4,945.54) and Germany (up 1.33% to 6,942.79) edged higher.

Select Asian markets extended early gains. Hong Kong's Hang Seng (up 2.85% at 24,123.56), Singapore's Straits Times (up 0.87% at 3,007.80), Taiwan's Taiwan Weighted (up 2.03% at 7,673.99), South Korea's Seoul Composite (up 0.61% at 1,634.53) rose. However, Japan's Nikkei (down 0.70% at 13,497.16), and Shanghai Composite (down 1.43% to 4,320.67) slipped

US markets rallied on Thursday, 31 January 2008, led by financial shares after the world's largest bond insurer, MBIA announced that it expects to retain its credit ratings. The Dow Jones industrial average surged 207.53 points, or 1.67%, to 12,650.36. The S&P 500 index gained 22.74 points, or 1.68%, to 1,378.55, and the Nasdaq Composite index shot up 40.86 points, or 1.74%, to 2,389.86.

Foreign institutional investors (FIIs) sold shares worth Rs 13833.60 crore while mutual funds were net buyers of shares worth Rs 5568.10 crore in the month of January 2008

Meanwhile, as per reports, short selling by the institutional investors may be kicked off a week later than what was earlier scheduled for today, 1 February 2008. Though Securities & Exchange Board of India and stock exchanges are ready for its timely rollout, there seems to be some confusion whether short selling will attract the Securities Transaction Tax (STT) or not. The Central Board of Direct Taxes (CBDT) is yet to clarify on the issue.