Small-caps gain in volatile market

The key indices ended the highly volatile session on a mixed note. The Nifty ended almost steady even as the Sensex declined. The imminent expiry of March 2008 derivatives contracts caused volatility. Firm European markets aided recovery from lower level. In Europe, key indices in UK, France and Germany were up by 0.86% to 1.38%.

IT and banking shares fell sharply whereas FMCG and realty stocks bucked the weak trend. Gains in mid-cap and small-cap stocks led to positive market breadth.

Most of the Asian indices slipped today on worries that there will be more bank write-downs in the US after a prominent analyst lowered first-quarter profit forecasts for four major US banks namely -- Citigroup, Bank of America Corporation, JPMorgan Chase & Co, and Wachovia Corp. Key indices in China, Japan, South Korea, Singapore, and Taiwan were down by 0.20% to 5.42%. However, Hong Kong's Hang Seng was up 0.21%.

The 30-share BSE Sensex fell 71.27 points or 0.44% at 16,015.56. Sensex rose 24.61 points at the day's high of 16,111.44 in mid-afternoon trade. The index lost 217.74 points at session's low of 15,869.09, hit in early afternoon trade.

The broader CNX S&P Nifty rose 1.40 points or 0.03% at 4830.25. Nifty April 2008 futures were at 4849.45, at a premium of 19.2 points as compared to spot closing of 4830.25.

As per provisional data, foreign institutional investors bought shares worth a net Rs 247.98 crore today. Domestic funds bought shares worth a net Rs 339.84 crore.

The NSE's futures & options (F&O) segment turnover was Rs 64,308.86 crore, which was lower than Rs 57,628.83 crore on Wednesday, 26 March 2008.

The BSE small-cap index outperformed the Sensex, rising 1.18% at 7,526.78. The BSE Mid-cap index outperformed the Sensex, rising 0.08% at 6,276.26.

The market breadth was positive. On BSE, 1493 stocks advanced, 1223 declined and 59 stocks were unchanged.

BSE clocked a turnover of Rs 6343 crore as against Rs 6,137.44 on Wednesday, 26 March 2008.

India's largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) fell 1.03% to Rs 2275.

India's largest commercial vehicles maker by sales Tata Motors slipped 3.56% to Rs 655.20 on concerns that its borrowing cost may go up due to funding of the acquisition, which in the short term would impact the net profit of the company. The American depository receipt (ADR) of Tata Motors fell 7% on Wednesday, 26 March 2008 on the New York Stock Exchange after the deal was announced.

Top Sensex gainers were, Hindalco Industries (up 6.61% at Rs 172.50), Hindustan Unilever (up 4.10% at Rs 244), Cipla (up 2.89% at Rs 211.60), Bharti Airtel (up 2.68% at Rs 824.65) and ITC (up 2.54% at Rs 200.05).

Top Sensex losers were, Satyam Computer (down 4.35% at Rs 395.05), State Bank of India (down 3.69% at Rs 1650.45), Infosys Technologies (down 3.66% at Rs 1440.80), TCS (down 2.97% at Rs 853.15), and Ranbaxy Laboratories (down 2.78% at Rs 435.65).

The BSE Realty index outperformed the Sensex, rising 2.28% to 7,651.29. Parsvnath Developers (up 5.48% at Rs 201.30), Omaxe (up 5.16% at Rs 212.05), Housing Development & Infrastructure (up 4.78% at Rs 608.45), Unitech (up 3.9% at Rs 281.60) and Penland (up 3.17% at Rs 96.05), edged higher.

The BSE FMCG index outperformed the Sensex, rising 2.03% to 2,280.38. Glaxosmithkline Consumer Healthcare (up 5.09% at Rs 603.20), Nestle (up 2.16% at Rs 1,469.70), and REI Agro (up 0.56% at Rs 1,457.85), gained.

The BSE IT index underperformed the Sensex, falling 3.05% to 3,579.75. Mphasis (down 6.54% at Rs 182.10), NIIT (down 4.83% at Rs 96.45), and HCL Technologies (down 4.83% at Rs 262.85), declined. However, Wipro rose 0.26% to Rs 430.10.

The BSE Bankex underperformed the Sensex, falling 1.51% to 8,176.66. Union Bank of India (down 4.05% at Rs 143.40), Axis Bank (down 4.03% at Rs 793.25), Yes Bank (down 2.77% at Rs 185.80), Andhra Bank (down 2.37% at Rs 74.15) and HDFC Bank (down 0.43% at Rs 1,434.95), slipped.

India’s largest private sector bank by assets ICICI Bank fell 1.03% at Rs 834.55.

Among the small-caps, Ankur Drugs And Pharma (up 20% at Rs 190.95), Classic Diamonds (India) (up 20% at Rs 62.15), Renaissance Jewellery (up 20% at Rs 61.30), BAG Films & Media (up 18.51% at Rs 38.10), and Grabal Alok Impex (up 17.14% at Rs 95), surged.

Hindustan Zinc fell 2.10% to Rs 523.95 after the company said it had cut its zinc prices by 4.6% or Rs 5,200 a tonnes to Rs 1.07 lakh per tonne with immediate effect.

State-run power utility Power Grid Corporation of India rose 1.13% to Rs 98.50 on reports that the company may win a Sri Lankan sub-sea cable order worth Rs 2500 crore.

Shipping firm Great Offshore slipped 1.65% to Rs 614.75 after the company said it has sold its vessel - Malaviya Nine, a 1983 built anchor handling tug - supply vessel.

Power sector financer Power Finance Corporation gained 2.03% to Rs 166 after the company said it has signed a memorandum of understanding with RITES to combine its resources and expertise to facilitate import of coal from African countries.

Valecha Engineering, which is primarily into road construction business, jumped 5.23% to Rs 175.95 after the company said it has bagged new projects worth Rs 250 crore which includes road works at Pune, Delhi airport express line work and piling projects.

Chemicals maker J B Chemicals & Pharmaceuticals surged 20% to Rs 44.80 after the company scheduled a meeting of the board of directors on 8 April 2008 to consider buyback of equity shares.

Software firm i-flex Solutions declined 3.02% to Rs 953.75 even as the company said Lien Viet Bank, Vietnam has selected Flexcube, i-flex’s core banking solution for its banking operations.

Jewellery maker Rajesh Exports jumped 2.92% to Rs 72.35 after the company clarified that it has not suffered any losses in any type of currency options, commodity trading or any other speculative business.

Brokerage firm Prime Securities slumped 5% to Rs 87.95 after the firm said it incurred a loss of about Rs 3 crore in the futures and options segment and had made a provision of Rs 23 crore for 2007/08 towards depletion in value of securities. The comapny expects profit before tax for the current year to be Rs 27 crore after the write-off of investment, it said in a statement.

Housing Development Finance Corporation clocked a highest turnover of Rs 908.92 crore on BSE. Reliance Capital (Rs 298.46 crore), Reliance Industries (Rs 245.84 crore), GSS America (Rs 205.79 crore) and Nagarjuna Construction Company (Rs 414.17 crore), were the other turnover toppers on BSE in that order.

Reliance Natural Resources reported highest volume of 1.22 crore shares on BSE. Ispat Industries (1.16 crore shares), IFCI (93.77 lakh shares), Nagarjuna Construction Company (68.63 lakh shares) and Reliance Petroleum (59.17 lakh shares), were the other volume toppers on BSE in that order.

US markets declined yesterday, 26 March 2008 due to poor economic data. US Treasury Secretary, Henry Paulson said that there is a need to strengthen & clarify rules governing the financial sector. The Dow Jones industrial average slipped 109.74, or 0.88%, to 12,422.86. The Standard & Poor's 500 index declined 11.86 points, or 0.88%, to 1,341.13, while the Nasdaq Composite index shed 16.69 points, or 0.71%, to 2,324.36.