Market fails to sustain higher level as heavyweights give up early gains

An early surge on the bourses proved short-lived as index heavyweights Reliance Industries, ICICI Bank and L&T, gave up initial gains. The Sensex, which had surged past 16,000 mark in early trade, fell below that level later. Nevertheless, the market breadth remained strong. 16 shares advanced from the 30-member Sensex pack.

Sensex settled 123.78 points or 0.79% higher at 15,750.40. Sensex gained 92.85 points at day’s low of 15,719.47 hit in late trade. Sensex opened with an upward gap of 396.68 points at 16,023.30 and advanced further to hit a high of 16,236.70 in early trade. At the day’s high, the Sensex rose 610.08 points. It oscillated in a band of 517.30 points in volatile trade

The broader based S&P CNX Nifty was up 14.65 points or 0.31% at 4,754.20. Nifty April 2008 futures were at 4741.15, a discount of 13.05 points as compared to spot closing.

Strong cues from global markets had boosted domestic bourses earlier in the day. US stocks rallied on Tuesday, 1 April 2008, after Lehman Brothers said it raised $4 billion in an offering of convertible preferred shares, which soothed fears it was heading for a fate similar to that of Bear Stearns. European markets, which opened after Indian market, were in green. Asian markets, which opened before Indian market Indian market, surged.

The market breadth was strong on BSE: 1734 shares advanced as compared to 938 that declined. 50 shares remained unchanged.

The BSE Mid-Cap index rose 0.08% to 6,400.37 and the BSE Small-Cap index advanced 0.51% to 7,901.91, as per provisional closing. Both these indices underperformed the Sensex.

The total turnover amounted to Rs 4769 crore on BSE as compared to Rs 4,718 crore yesterday, 1 April 2008

Total turnover in NSE’s futures options segment amounted to Rs 34170.35 crore as compared to Rs 35886.84 crore yesterday, 1 April 2008

The BSE Consumer Durables index (up 0.80% to 3,917.70), the BSE IT index (up 2.93% to 3,644.35), the BSE Auto (up 1.56% at 4,539.52), the BSE Bankex (up 2.34% at 7,822.56), the BSE Health Care index (up 0.82% at 3,862.83), the BSE TecK index (up 2.04% to 3,078.22), outperformed the Sensex

The BSE Metal index (down 2.15% to 13,516.89), the BSE FMCG index (down 0.79% at 2,318.80), the BSE Oil & Gas index (down 0.25% to 10,328.08), the BSE Realty index (up 0.46% at 7,501.17), the BSE Power (down 0.49% to 3,137.12), the BSE Capital Goods index (down 0.46% at 13,498.15), and the BSE PSU index (down 0.11% to 7,387.62), underperformed the Sensex

IT pivotals advanced on fresh buying. India’s second largest software services exporter Infosys Technologies surged 4.34% to Rs 1483 on 1.66 lakh shares. It was the top gainer from Sensex pack.

Other IT pivotals, Wipro (up 1.10% to Rs 413.50), Satyam Computer Services (up 1.91% to Rs 405), and TCS (up 2.06% to Rs 852), advanced.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries eased sharply from day’s high of Rs 2455. It settled 0.22% lower at Rs 2340 on 13.27 lakh shares. The company said on Tuesday, 1 April 2008, it had discovered more gas in an exploration block off the east coast. The potential commercial interest of the discovery is being ascertained through more data gathering and analysis, the company said in a statement.

Jaiprakash Associates (up 2.51% to Rs 231, off day’s high of Rs 240.95), HDFC (up 3.82% to Rs 2450, off day’s high of Rs 2524.70) and Bharti Airtel (up 1.32% to Rs 815.25, off day’s high of Rs 839), though up pared early gains.

Banking shares gained on fresh buying. India’s largest private sector bank in terms of net profit ICICI Bank advanced 3.93% to Rs 786.25. The stock came off session's high of Rs 815. The bank’s American Depository Receipt (ADR) jumped 8% yesterday, 1 April 2008, on the New York Stock Exchange (NYSE).

Other banking shares, State Bank of India (up 1.51% to Rs 1649), and HDFC Bank (up 0.45% to Rs 1314), also logged gains

India’s top tractor marker in terms of sales, Mahindra & Mahindra (M&M) rose 2.61% to Rs 667.25 after it said on Tuesday, 1 April 2008, its vehicle sales rose 20% to 24,682 units in March 2008 over March 2007. M&M’s sales rose 30% to 2,31,355 vehicles, in the financial year to March 2008 over the financial year to March 2007.

India’s top truck marker in terms of sales, Tata Motors rose 1.51% to Rs 636.90 after it said on Tuesday, its vehicle sales 6% to 66,495 units in March 2008 over March 2007. Sales of commercial vehicles rose 17% to 35,993 units and sales of cars and utility vehicles fell 4% to 24,737. Exports fell 9% to 5,765 vehicles

India’s largest private sector power utility company in terms of sales, Reliance Energy slumped 5.15% to Rs 1222 on 9.22 lakh shares. It was the top loser from Sensex pack.

Steel stocks declined on reports that the government has asked steel makers to cut prices by 10% to 20%, failing which it may take a host of fiscal measures to lower prices. Tata Steel, the country’s largest private sector in terms of sales, declined 3.50% to Rs 644

Other steel manufacturers JSW Steel (down 4.93% to Rs 785), Steel Authority of India (down 4.13% to Rs 167.30), and Jindal Steel & Power (down 2.36% to Rs 1965), declined. As per reports, the government has asked steel makers to cut prices by 10% to 20%, failing which it may take a host of fiscal measures to lower prices.

Bharat Heavy Electricals (down 2% to Rs 1854), and ITC (down 2.18% to Rs 206.55), edged lower from Sensex pack.

India's biggest engineering & construction firm by revenue L&T lost 1.1% to Rs 2861.25. The stock came off session's high of Rs 3069.90

GSS America Systems was the top traded counter on BSE with turnover of Rs 344.18 crore followed by Reliance Industries (Rs 318.62 crore), Reliance Capital (Rs 277.80 crore), Essar Oil (Rs 209.51 crore), and Reliance Petroleum (Rs 207.35 crore), in that order

Indiabulls Securities topped volumes chart clocking volumes of 1.50 crore shares followed by Reliance Petroleum (1.22 crore shares), Kashyap Technologies (1.10 crore shares), Reliance Natural Resources (1.02 crore shares) and Essar Oil (95.50 lakh shares), in that order.

Indiabulls Securities, which was spun off from Indiabulls Financial Services in January, settled at Rs 99.05 on BSE, as against base price of Rs 380, on its debut today. The stock hit a high and low of Rs 300 and Rs 96.20 respectively during the day. Indiabulls Financial Services, had allotted one share of Indiabulls Securities for every share held.

Among the side counters, Global Vectra Helicorp (up 19.97% to Rs 78.10), Classic Diamonds (up 20% to Rs 75.75), and Haldyn Glass Gujarat (up 20% to Rs 78.05), surged.

GSS America Systems (down 20% to Rs 623.10), Bosch Chasiss Systems (down 10% to Rs 559.75), ETC Networks (down 11.95% to Rs 261.95), and (down 9.94% to Rs 41.70), slipped

Cement shares gained on reports that they have raised prices in the range of 3% to 4% across the country. Ultratech Cement (up 5.53% to Rs 804), India Cements (up 2.05% to Rs 189.25), Birla Corporation (up 0.13% to Rs 198.50), ACC (up 0.89% to Rs 833.10) and Deccan Cement (up 1.61% to Rs 259) edged higher.

Prices were increased because of the rise in production cost. The cement price is now Rs 258 per 50 kilogram bag in Mumbai.

Steel Strips Wheels gained 3.62% to Rs 174.70 after the company said it has bagged an export order worth Rs 110 crore from Renault, France for supply of one million steel wheel rims over five years.

Gujarat Gas Company dipped 2.97% to Rs 227.30. The company said it has signed a contract for supply of 2.13 million cubic metres of gas per day with GAIL (India). The company made this announcement after trading hours on Tuesday, 1 April 2008.

BEML gained 1.45% to Rs 989 on achieving a provisional turnover of Rs 3005 crore with 15.5% growth and profit before tax of Rs 350 crore with 11% growth in the financial year 2007-08 over 2006-07. The company made this announcement before trading hours today, 2 April 2008. The order book of the company stands at Rs 3,795 crore.

GAIL India gained 2.56% to Rs 433.05 after the company said on Tuesday, 1 April 2008, it has signed contracts for marketing the entire volume of gas produced from the Panna-Mukta and Tapti fields.

Shree Cement declined 1.40% to Rs 1060. The company’s cement shipments jumped 60.08% to 7,54,000 tonnes in March 2008 over March 2007.

Kilburn Engineering advanced 6% to Rs 44.25 after the company said it has received an order worth Rs 11 crore from GHCL for manufacture of calciner.

The sharp rise in inflation has been a cause of concern, which has now risen above the Reserve Bank of India’s caution limit of 5%. India's wholesale price index surged to 13-month to 6.68% in the 12 months to 15 March 2008, surging from the previous week's rise of 5.92%, government data showed on Friday, 28 March 2008.

Finance minister P Chidambaram on 31 March 2008 announced a slew of measures, in an attempt to rein in commodity prices. The measures announced by Chidambaram include a total ban on non-basmati rice exports, a reduction in import duty on edible oils, allowing states to impose stock limits with traders, and also warning the steel lobby to hold the priceline, no matter the consequences.

The market sentiment may remain edgy in near term as Indian companies are sitting on huge potential losses on account of the forex derivative transactions they undertook last year. A steep decline in the value of the US dollar against the Japanese Yen and the Swiss Franc has hit Indian corporates which have used these two currencies (Yen and Franc) extensively to swap their rupee denominated debt.

European markets were trading higher mixed, 2 April 2008. Key benchmark indices Germany (up 0.38% to 6,746.36), and France (up 0.37% to 3,831.64), advanced. However United Kingdom’s FTSE 100 index slipped 0.07% to 5,848.60.

Asian markets settled higher today, 2 April 2008, led by banks and technology companies, on speculation financial companies will be able to overcome a freeze in credit markets and shore up global economic growth. Japan's Nikkei (up 4.21% at 13,189.36), Hang Seng (up 3.18% at 23,872.43), Taiwan's Taiwan Weighted (up 2.20% at 8,605.32), Singapore's Straits Times (up 2.56% at 3,344.39), Shanghai Composite (up 0.56% to 3,347.88), and South Korea's Seoul Composite (up 2.35% at 1,742.19), edged higher.

US markets rallied yesterday, 1 April 2008, after Lehman Brothers indicated that the bank can weather further credit losses. Better-than-expected reading on the manufacturing sector also fueled gains. The ISM reported that its purchasing manager’s index rose unexpectedly to 48.6 in March 2008 as compared to 48.3 in February 2008. The Dow Jones industrial average jumped 391 points to 12,654. The Nasdaq Composite index surged 84 points at 2,363 while the S&P 500 gained 47 points to 1,370.