Sensex regains 16,100; realty, capital goods shares rally

Local markets managed to post decent gains in choppy trade boosted by steady buying demand for index pivotals and short covering at lower level after the recent fall. Firm global markets also lifted the sentiment. The total turnover on BSE crossed Rs 7000 core. It had opened lower tracking weak US markets. European markets extended early gains. Asian markets also reversed early losses to post gains.

17 shares from the 30-member Sensex pack advanced. The market breadth was strong after initial weakness. Shares from real estate, capital goods, sugar and oil & gas rallied on fresh buying.

The 30-share BSE Sensex gained 199.43 points or 1.25% at 16,123.15. It opened slightly lower at 15,778.27 and slipped further to touch a low of 15,739.05 in early trade. At the day’s low, the Sensex lost 184.67 points. It gained 244.41 points at day’s high of 16,168.13 hit in early afternoon trade.

The broader based S&P CNX Nifty advanced 65.50 points or 1.36% at 4,865.90. Nifty March 2008 futures were at 4846.30, a discount of 19.60 points as compared to spot closing

The market breadth was strong: On BSE 2,070 shares advanced as compared to 634 that declined. 37 shares remained unchanged.

The BSE Mid-Cap index rose 3.32% to 6,992.84 and the BSE Small-Cap index gained 3.75% to 8,557.72. Both these indices outperformed the Sensex.

The total turnover amounted to Rs 7253 crore as compared to Rs 6896 crore yesterday, 10 March 2008.

Turnover in NSE’s futures & options segment declined to Rs 38176.25 crore as compared to Rs 42402.30 crore yesterday, 10 March 2008.

Most sectoral indices on BSE posted gains. The BSE Consumer Durables index (up 2.75% to 4,259.52), the BSE Power (up 5.11% to 3,271.52), the BSE Capital Goods index (up 5.39% at 14,060.65), the BSE Realty index (up 6.76% at 8,226.89), the BSE Metal index (up 1.73% to 16,072.74), the BSE Oil & Gas index (up 3.28% to 10,560.64), and the BSE PSU index (up 3.35% to 7,867.91), outperformed the Sensex.

The BSE IT index (down 0.62% to 3,548.78), the BSE FMCG index (up 0.65% at 2,204.41), the BSE Health Care index (up 0.95% at 3,833.51), the BSE TecK index (down 0.47% to 3,055.70), the BSE Bankex (up 0.58% at 8,487.24), the BSE Auto (up 0.33% at 4,669.34), underperformed the Sensex

Shares from real estate sector surged on fresh buying. India’s largest real estate developer DLF surged 10.53% to Rs 752 on 10.58 lakh shares. It was the top gainer from Sensex pack.

Other gainers from real estate sector were HDIL (up 6.70% to Rs 681), Indiabulls Real Estate (up 6.57% to Rs 516.50) and Unitech (up 3.81% to Rs 283.30), edged higher.

Heavyweights from capital goods sector staged a smart comeback after sell-off on previous day. India’s largest private sector engineering & construction company in terms of order book galloped 6.90% to Rs 2916.50. The stock had plunged 8.57% to Rs 2732 on concerns of losses from commodity hedging for the fiscal year ending March 2008.

India’s largest engineering & construction company in terms of order book, Bharat Heavy Electricals gained 4.74% to Rs 2001, after hitting low of Rs 1880. The stock lost 6.20% to Rs 1900 yesterday.

India’s second largest two wheeler maker by sales Bajaj Auto eased from day’s high of Rs 2140. It settled 4.80% higher at Rs 2078. The stock surged ahead of record date of 25 March 2008 for effecting the scheme of arrangement.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries advanced 3.16% to Rs 2345.05 on 9.05 lakh shares. The stock recovered sharply after hitting low of Rs 2215.15 in early trade

ACC (up 5.56% to Rs 809), NPTC (up 4.26% to Rs 193.25), and Ranbaxy Laboratories (up 4.73% to Rs 453.90), were the other gainers from Sensex pack.

India’s top small car maker in terms of sales, Maruti Suzuki India lost 3.65% to Rs 860.90 on 2.53 lakh shares. It was the top loser from the Sensex pack

IT pivotals were subdued. Satyam Computer Services (down 2.94% to Rs 396), TCS (down 1.16% to Rs 822), and Wipro (down 2.96% to Rs 390.10), also declined

HDFC (down 2.52% to Rs 2505), and Cipla (down 2.91% to Rs 195.05), were the other losers from Sensex pack.

Tata Motors dropped 2.36% to Rs 658. The company’s board approved raising additional long-term funds of up to Rs 4000 crore.

Shares from sugar sector surged on momentum buying. Shree Renuka Sugars (up 31.36% to Rs 1160), Bajaj Hindustan (up 12.73% to Rs 236), Balrampur Chini Mills (up 10.51% to Rs 95.65), and Sakthi Sugars (up 13.60% to Rs 74.35), surged on high volumes.

Reliance Energy was the top traded counter on BSE with turnover of Rs 596.69 crore followed by RNRL (Rs 319.06 crore), GSS America Infotech (Rs 311.81 crore), Reliance Petroleum (Rs 280.18 crore) and Reliance Industries (Rs 208.20 crore) in that order.

Among the side counters, English Indian Clays (up 20% to Rs 1006.55), Shakti Pumps (up 20% to Rs 134.20), Deepak Fertilisers (up 20% to Rs 105.75), SKY Industries (up 20% to Rs 59.20), and Noida Toll Bridge (up 20% to Rs 43.55), surged.

However Network 18 Fincap (down 13.20% to Rs 310), Poddar Pigments (down 10% to Rs 36.50), and Midas Pharma (down 10% to Rs 12.65), slipped

Kotak Mahindra Bank vaulted 10.68% to Rs 679 after the private sector bank denied reports of its books in a special audit by Reserve Bank of India.

Orbit Corporation jumped 11.05% to Rs 534 after the firm sold a stake in a unit, Orbit Highcity, to Cyprus-based Rodere Holdings for Rs 200 crore. The investment would be used to develop township projects in metropolitan region.

GAIL (India) rose 6.25% to Rs 418.50 on reports the company will consider issuing bonus shares in two to three months. According to reports, the company has planned a capital expenditure of Rs 4,200 crore for the full year ending March 2009, up from Rs 2,300 crore this year.

Mundra Port and Special Economic Zone surged 3.57% to Rs 621.60 on reports the port will begin commercial flights into its airport by mid-2008. As per reports, the port is in talks with all the leading domestic airlines to start commercial flights by June this year. The group is also looking for partners to develop maintenance and repair facilities at the airport and also provide for aircraft parking in the long run in UK, the reports added.

The next trigger for the market would come from the figures of advance tax payment by corporates for the fourth installment, which falls due on 15 March 2008.

All eyes will now be the US Federal Reserve which meets on 18 March 2008 to review interest rates. A cut in interest rate, as expected by street may provide some support to the markets. Fed Chairman Ben Bernanke had signaled a readiness to cut interest rates again to prevent further damage to the weak US economy, even as he took note of rising inflation risks.

European markets logged gains. Key benchmark indices from United Kingdom (up 1.06% to 5,688.602), Germany (up 0.42% to 6,475.30) and France (up 0.55% to 4,592.04), advanced

Asian markets reversed early losses to post gains today, 11 March 2008. Japan's Nikkei (up 1.01% at 12,658.28), Taiwan's Taiwan Weighted (up 0.99% at 8,381.60), South Korea's Seoul Composite (up 1% at 1,641.48), Hong Kong's Hang Seng (up 1.28% at 22,995.35), Straits Times (up 0.86% at 2,860.68) and Shanghai Composite (up 0.47% to 4,165.78) advanced

US markets slumped for the third straight day on Monday, 10 March 2008 led by a plunge in financial shares as a fresh wave of credit worries rattled the market. Bear Stearns tumbled amid news that the brokerage firm has liquidity problems. The Dow Jones industrial average plunged 153.54 points, or 1.29%. The Standard & Poor's 500 index was down 20 points or 1.55%, to 1,273.37, while the Nasdaq Composite index declined 43.15 points, or 1.95%, to 2,169.34.

Crude oil was slightly lower today, 11 March 2008, just below its record high of $108.21 yesterday, 10 March 2008, as investors hedged against growing inflation and the falling dollar. U.S. light crude for April delivery fell 5 cents to $107.85 a barrel, a barrel in the previous session. London Brent crude was down 11 cents to $104.05.