Market settles near day’s high; pivotals rally

The market settled near day’s highs helped by late buying frenzy in index pivotals. Shares from real estate, software and capital goods were at the forefront of the rally. A cooling off of crude oil prices, which had soared to record high near $127 a barrel earlier in the week, and firm Asian markets, supported the market sentiment. European markets, which opened after Indian markets, recovered after shaky start and were trading flat.

As per provisional data, foreign funds bought shares worth a net Rs 706.88 crore today. Domestic funds bought shares worth a net Rs 363.11 crore.

The 30-share BSE Sensex surged 375.19 points or 2.21% at 17,353.54. It opened 137.84 points higher at 17,116.19. The barometer index hit a high of 17,366.19 in late trade. At the day’s high, Sensex gained 387.84 points. Sensex rose 121.03 points at day’s low of 17,099.38 touched in early trade.

The broader based S&P CNX Nifty gained 103.50 points or 2.07% at 5,115.25. Nifty May 2008 futures were at 5113, a discount of 2.25 points as compared to spot closing.

The barometer index – BSE Sensex has risen 2544.05 points or 17.17% from recent low of 14,809.49 touched on 17 March 2008. However the Sensex is still 3853.23 points or 18.16% away from its all-time high of 21206.77 hit on 10 January 2008.

The market breadth was strong on BSE with 1737 shares advancing as compared to 941 that declined. 78 remained unchanged.

The BSE Mid-Cap index rose 1.29% to 7,079.89 while the BSE Small-Cap index gained 1.33% to 8,546.41. Both these indices underperformed the Sensex.

Turnover on BSE surged amounted to Rs 6439 crore as compared to Rs 6,219.35 crore yesterday, 14 May 2008. Turnover in NSE’s futures & options segment amounted to Rs 38196.16 crore as compared to Rs 32919.78 crore yesterday, 14 May 2008.

All sectoral indices on BSE logged gains barring the BSE FMCG index which shed 0.21% to 2,494.54.

The BSE Oil & Gas index (up 2.65% to 11,205.76), BSE Bankex (up 2.44% at 8,806.01), BSE Capital Goods index (up 3.46% at 13,600.80), BSE Realty index (up 3.41% at 8,042.52), outperformed the Sensex.

The BSE TecK index (up 1.89% to 3,552.76), BSE IT index (up 1.33% to 4,486.36), The BSE PSU index (up 1.60% to 7,762.62), BSE Auto (up 0.25% at 4,730.24), BSE Health Care index (up 0.79% at 4,285.99), BSE Metal index (up 1.86% to 16,740.37), BSE Power (up 2.13% to 3,303.13), and BSE Consumer Durables index (up 0.91% to 4,548.75), underperformed the Sensex.

Among the 30-member Sensex pack, 24 advanced while the rest slipped.

India’s largest private sector engineering company Larsen & Toubro galloped 5.42% to Rs 2983.90 after French cement producer Lafarge said on Wednesday it had acquired L&T Concrete at an enterprise value of 226 million euros ($349.5 million). The deal involves L&T’s 66 concrete plants across India with an estimated volume of 41 lakh cubic meters in 2008. It was the top gainer from Sensex pack. A total of 4.06 lakh shares changed hands on the counter

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) advanced 3.52% to Rs 2619 on 6.88 lakh shares. The stock moved in a range of Rs 2535 and Rs 2633.15 during the day. As per recent reports, RIL plans to convert its fuel retail outlets into malls and multiplexes, and is holding talks with its dealers in Uttar Pradesh for the same.

Shares from real estate pack advanced, on fresh buying. DLF (up 3.23% to Rs 643.10), Unitech (up 4.63% to Rs 287), Omaxe (up 6.44% to Rs 228), and Parsvnath Developers (up 4.46% to Rs 219.90), surged on fresh buying.

India’s second largest cellular services provider Reliance Communications (RCom) jumped 5.40% to Rs 589.50 on reports its infrastructure arm Reliance Infratel has recieved Securities & exchange board of India (Sebi)’s approval for public issue.

IT pivotals advanced on fresh buying as the rupee held near 13-month lows against the dollar. India’s second largest software services exporter Infosys Technologies gained 3.46% to Rs 1889.40 after striking an intra-day high of Rs 1908. Infosys has 7.63% weightage in Sensex and 3.46% weightage in Nifty.

Other IT pivotals, Wipro (up 0.91% to Rs 508.20), and TCS (up 2.02% to Rs 989.55), also logged gains. The partially convertible rupee was at 42.35/36 per dollar, stronger than yesterday's close of 42.45/46.

A depreciating rupee augurs well for IT companies as they derive over 50% of their revenues from exports to US.

However, India’s fourth largest software services exporter Satyam Computer Services, recovered from early low of Rs 465.10, to settle 3.61% lower at Rs 483. The counter clocked high volumes of 32.90 lakh shares. It was the top loser from Sensex pack. As per reports Satyam Computer Services could have to pay penalties in excess of $1 billion if it loses a case to one of its former customers, Upaid Systems, in the US federal Court in Texas.

ICICI Bank (up 3.93% to Rs 931.50), Hindalco Industries (up 5.30% to Rs 202.50) and Maruti Suzuki India (up 3.05% to Rs 821.50) edged higher from Sensex pack.

Tata Motors (down 1.14% to Rs 664.90), Hindustan Unilever (down 1.05% to Rs 240.55), and Tata Steel (down 0.49% to Rs 882.05) edged lower from Sensex pack.

Recently listed Aishwarya Telecom was up 0.28% to Rs 124.80 after seeing volatile swings between day’s low and high of Rs 118.20 and Rs 135.50 respectively. The counter clocked high volumes of 7.02 crore shares.

Other volume toppers were IFCI (2.19 crore shares), Ispat Industries (1.09 crore shares), Cybermate Infotec (1.08 crore shares) and Reliance Natural Resources (1.03 crore shares) in that order.

Aishwarya Telecom was also the top traded counter on BSE with turnover of Rs 883.06 crore followed by Reliance Communications (Rs 258.56 crore), Reliance Industries (Rs 178.51 crore), Reliance Petroleum (Rs 161.90 crore), and Satyam Computer Services (Rs 158.28 crore) in that order.

Among the side counters, Jhagadia Copper (up 20% to Rs 12.14), National Oxygen (up 20% to Rs 57.70), Lumax Industries (up 16.09% to Rs 188), Alfa Transformer (up 10% to Rs 62), and Indag Rubber (up 14.78% to Rs 80), surged

However, Smruti Organics (down 10.87% to Rs 61.50), JMA Industries (down 10.09% to Rs 196), and Jumbo Bag (down 9.87% to Rs 30.15), slipped.

Shares of oil marketing firms were mixed following recent reports that the Union government will issue bonds worth Rs 15000 crore to state oil refiners for the quarter ended on March 2008. Bharat Petroleum Corporation slipped down 0.59% to Rs 337. Hindustan Petroleum Corporation (up 0.57% to Rs 238.90) and Indian Oil Corporation (up 0.72% to Rs 400) rose.

The oil bonds will be issued to oil marketing firms so as to compensate half the revenue loss incurred for selling fuel at state-set low prices. During 2006/07, the government had compensated 42.7% of the revenue losses of state oil refiners

Industrial and power systems company Crompton Greaves jumped 8.44% to Rs 246 on reports that the company is expected to take over the distribution and billing rights for electricity supply to Nagpur city by end July 2008. The contract has been awarded to the company for a period of 15 years by the Maharashtra Electricity Regulatory Commission (MERC).

Kinetic Motor Company hit 5% upper circuit at Rs 29.30 on BSE despite the company terming recent media reports of Mahindra & Mahindra planning to acquire the company, as speculative.

Kirloskar Brothers surged 4.20% to Rs 250.30 after the company said its joint venture firm has received an order worth Rs 933.76 crore from the Andhra Pradesh state government's Irrigation & CAD Department for building a pump house. The company made this announcement after trading hours on Wednesday, 14 May 2008.

Syndicate Bank rose 3.38% to Rs 77.55 after reporting 21% growth in net profit to Rs 126.26 crore on 22.85% growth in operating income to Rs 2134 crore in Q4 March 2008 over Q4 March 2007. The bank announced the result after market hours on 14 May 2008.

Power Finance Corporation was down 0.30% to Rs 155.50 after the company said it has signed a loan agreement with Exim Bank of US for $800 million under the latter's India infrastructure facility.

Mercator Lines soared 14.69% to Rs 115.15 after posting 351.7% surge in net profit to Rs 74.04 crore on 31% growth in net sales to Rs 265.67 in Q4 March 2008 over Q4 March 2007. The company announced the results after trading hours on Wednesday, 14 May 2008.

i-flex Solutions dropped 1.80% to Rs 1360 even as the company said Kotak Mahindra Bank has selected i-flex’s wealth management solution - Flexcube Private Banking to manage relationships with high net worth individuals. The company made this announcement during trading hours today, 15 May 2008.

Lanco Infratech rose 0.23% to Rs 515 after the company said on Wednesday its consortium with Malaysia's Pembinan Radzai had won rights to build the Vizhinjam Container Port project in Kerala, estimated to cost Rs 8000 crore. The company made this announcement after trading hours on Wednesday, 14 May 2008.

BASF India rose 1.22% to Rs 245 after its promoter BASF SE announced a voluntary open offer to the shareholders of BASF India to purchase up to 62.9 lakh shares at Rs 274 each. The company made the announcement before market hours today, 15 May 2008.

Neyveli Lignite Corporation rose 4.45% to Rs 142.10 after the Union government gave approval to the company for development of 1000 megawatt coal based thermal power project at Tuticorin in Tamil Nadu. The company made this announcement during market hours today 15 May 2008.

The South-West monsoon is likely to hit Kerala on 29 May 2008, the Indian Meteorological Department (IMD), yesterday, 14 May 2008, said. Initial forecast by the Indian Meteorological Department (IMD) suggest that the crucial South-West monsoon (June-September) this year will be near normal. Now IMD's second forecast in June 2008 which may also indicate spatial rainfall distribution in the main sowing season of July 2008, is crucial.

A well distributed monsoon will bolster food production which in turn will help rein in inflation which is currently ruling at a three-year high. Surging global food prices has been a key driver of soaring inflation in India in recent weeks. Agricultural output in India depends on good rains.

European markets, which opened after Indian markets, staged a comeback after a shaky start and were trading with little change. Key benchmark indices in United Kingdom (down 0.01% to 6,215.60), Germany (down 0.13% to 7,074.26) and France (down 0.01% to 5,055.10) declined.

Most Asian markets were trading higher today, 15 May 2008, led by technology companies, after Sony and NEC Electronics forecast higher profit than expected. Nikkei 225 Average (up 0.94% at 14,251.74), Straits Times (up 0.36% at 3,212.15), Seoul Composite (up 2.28% at 1,885.71), Taiwan Weighted (up 1.54% at 9,157.18) edged higher.

However Hong Kong’s Hang Seng index (down 0.08% at 25,513.71) and Shanghai Composite (down 0.54% at 3,637.32), declined

US stocks climbed on Wednesday, 14 May 2008, after a better-than-expected report on consumer prices eased some of the market`s concerns about inflation. The Dow Jones industrial average rose 66.20 points, or 0.51, to 12,898.38. The Nasdaq Composite index rose 1.58 points, or 0.06%, to 2,496.70.

Back home, frenzied buying in software and metal stocks in late trade propelled market higher after a nervous start yesterday, 14 May 2008. The 30-share BSE Sensex surged 225.49 points or 1.36% at 16,978.35 while the broader based S&P CNX Nifty gained 53.95 points or 1.09% at 5,011.75, on that day.

Meanwhile, excise duty collection by the government fell by 3.9% to Rs 6,410 crore in the April 2008 against Rs 6,673 crore in April 2007. However, customs duty collection grew 24.9% to Rs 9,018 crore in April 2008 as against Rs 7,221 crore in April 2007, because of high growth in imports.

US light crude for June 2008 delivery was down 48 cents a barrel at $123.74 today, 15 May 2008, as rising U.S. distillates stocks and Iran's reassurances that it would not cut crude exports added to a strengthening U.S. dollar to limit the upside