Market extends gains as heavyweights rise

The market, after trading in a narrow range through the day, eased from early highs and ended with decent gain. It was a rewarding session for IT stocks for second consecutive day after IT bellwether Infosys on Tuesday, 15 April 2008, gave a confident medium-term outlook.

Gains in three index heavyweights Infosys, Reliance Industries and ICICI Bank led gains in the key benchmark indices. Small- and mid-cap stocks extended gains from the previous session.

Positive cues from the global markets boosted domestic bourses today. Also supporting sentiment, the government said monsoon rains, vital in determing farm output and rural spending, were likely to be near normal in 2008.

Asian markets, which opened before Indian markets, were trading higher today. Key indices in Taiwan, South Korea, Singapore, and Japan were up 0.94% to 1.58%. However, China’s Shanghai Composite and Hong Kong’s Hang Seng were down by 0.10% to 1.69%.

In Europe key indices in UK, France and Germany were up 0.34% to 0.87%. US stocks gained on Tuesday, 15 April 2008, as record oil prices lifted energy shares and stronger-than-expected quarterly results at several US regional banks boosted financial companies.

The 30-share BSE Sensex rose 90.53 points or 0.56% at 16,244.19. The Sensex gained 260.14 points at day’s high of 16,413.80, hit in early trade.

The S&P CNX Nifty rose 7.65 points or 0.16% at 4887.30. Nifty April 2008 futures were at 4888.15, at a premium of 0.85 points as compared to spot closing of 4879.65.

The BSE Mid-Cap index was up 1.43% at 6,699.10 and the BSE Small-Cap index was up 1.79% at 8,351.14. Both these indices outperformed the Sensex.

The market breadth was strong: on BSE, 1864 stocks gained, 816 stocks declined and 74 stocks were unchanged.

BSE clocked a turnover of Rs 6767 crore as against Rs 5,861.39 on Tuesday, 15 April 2008.

The NSE's futures & options (F&O) segment turnover was Rs 39646.97 crore, which was lower than Rs 46369.75 crore on Tuesday, 15 April 2008.

The BSE IT index outperformed the Sensex, gaining 3.73% to 4,006.50. Aptech (up 14.53% at Rs 263.95), NIIT (up 6.21% at Rs 102.55), Wipro (up 5.35% at Rs 447.35), and Satyam Computer (up 0.44% at Rs 454.05), moved up. TCS was nearly unchanged at Rs 974.45.

India’s second largest software exporter by sales Infosys Technologies rose 5.90% at Rs 1599.95. The company, on Tuesday, 15 April 2008, reported 1.46% rise in consolidated net profit to Rs 1249 crore on a 6.34% growth in revenue to Rs 4542 crore in Q4 March 2008 over Q3 December 2007.

At the time of announcing Q4 March 2008 results, Infosys management said on Tuesday, 15 April 2008, there are significant growth opportunities for the company in the medium to long term. The company, however, may face short-term challenges due to global economic uncertainties.

The BSE Oil & Gas index outperformed the Sensex, rising 0.78% to 11,422.02. Aban Offshore (up 3.98% at Rs 3502.25), Cairn India (up 3.21% at Rs 252.75), Reliance Natural Resources (up 1.61% at Rs 104.40), Gail India (up 1.51% at Rs 454.60) and Essar Oil (up 0.53% at Rs 263.35), rose.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries rose 1.38% at Rs 264.80.

The BSE Bankex underperformed the Sensex, gaining 0.52% to 8,043.71. Kotak Mahindra Bank (up 5% at Rs 710.85), Andhra Bank (up 2.59% at Rs 79.10), Axis Bank (up 1.54% at Rs 786.80), and Federal Bank (up 1.39% at Rs 236.30), gained.

India’s largest private sector bank by assets ICICI Bank gained 1.10% at Rs 815.75.

Drug maker Nicholas Piramal India advanced 2.45% to Rs 328.10 after the company signed an agreement with Khandelwal Laboratories for the purchase of its anti-spasmodic Anafortan and antibiotic CEFI brands for a total consideration of Rs 116 crore.

Construction firm Maytas Infra fell 1.52% to Rs 644.10, off day's high of Rs 680. The company said on Tuesday 15 April 2008 it has bagged an order worth Rs 68 crore from AP Road Development Corporation, Andhra Pradesh for building a bridge.

Agro chemicals maker Rallis India galloped 5.82% to Rs 432.50 after the company reported 115.40% surge in net profit to Rs 125.19 crore on 7.60% rise in net sales to Rs 692.15 crore in the year ended March 2008 (FY 2008) over the year ended March 2007 (FY 2007).

Mukesh Ambani-controlled Reliance Industrial Infrastructure was locked at upper limit of 5% at Rs 999.85 after posting 52.4% rise in net profit to Rs 6.43 crore on 38.6% rise in sales to Rs 18.92 crore in Q4 March 2008 over Q4 March 2007.

Orchid Chemicals & Pharmaceuticals clocked the highest turnover of Rs 783.04 crore on BSE. Reliance Petroleum (Rs 353.31 crore), Reliance Industries (Rs 291.26 crore), Reliance Natural Resources (Rs 284.36 crore) and OnMobile Global (Rs 199.28 crore), were the turnover toppers on BSE in that order.

Reliance Natural Resources reported the highest volume of 2.59 crore shares on BSE. Orchid Chemicals & Pharmaceuticals (2.46 crore shares), Reliance Petroleum (Rs 1.86 crore shares), Sita Shree Foods (1.43 crore shares) and Kashyap Technologies (1.25 crore shares), were the volume toppers on BSE in that order.

US markets logged gains on Tuesday, 15 April 2008, following better-than-forecast earnings at regional banks and record prices for oil and gasoline. The gain was led by financial and energy shares. The Dow Jones industrial average gained 60 points to close at 12,362. The Nasdaq gained 10 points at 2,286, while the S&P 500 index rose 6 points to 1,334.

Sensex has gained 1434.7 points or 9.68% from a low of 14,809.49 on 17 March 2008. It is off 4962.58 points or 23.40% from a record high of 21206.77 hit on 10 January 2008.

Besides concerns about corporate earnings, moderation in economic growth, prospects of further rise in interest rates and fears of funding crunch for some corporates amid credit crisis in the United States, spooked the Indian market in the past three months. Fears of redemption pressure for mutual funds following steep market fall looms large on the bourses.

In the calendar year so far, FIIs sold shares worth a net Rs 11720.90 crore (till 15 April 2008), to offset their huge losses in the US sub-prime mortgage market.