Strong Q4 GDP lifts bourses

Falling global crude oil prices and strong Q4 GDP data kept market up throughout the day. Power and oil & gas stocks tumbled. Information technology stocks were in demand.

Crude oil was trading around $125 a barrel, nearly $5 lower than its level on Thursday, 29 May 2008. It hit a record $135 last week.

European markets, which opened at Indian markets, were trading firm. Key indices in UK, France and Germany were up by 0.21% to 0.49%. Asian markets were mostly in the green. Key indices in Hong Kong, China, Japan, Singapore and South Korea were up by 0.59% to 1.52%. However, the key index in Taiwan was down 0.76%.

India's GDP grew a strong 8.8% in Q4 March 2008 from a year earlier, led by strong expansion in the services sector, data released by the government earlier in the day showed. The Q4 annual GDP growth matched an upwardly revised 8.8% growth in Q3 December 2007. The GDP growth was 9% in FY 2008 (year ended March 2008). The government had earlier estimated annual growth of 8.7% in FY 2008.

India's inflation based on the wholesale price index rose 8.1% in 12 months to 17 May 2008, the highest reading in more than 3-½ years and above the previous week's annual rise of 7.82%, government data released today, 30 May 2008, afternoon showed. Inflation for the week ended 22 March 2008 was revised upwards to 7.85% from 7%.

The 30-share BSE Sensex rose 99.31 points or 0.61% to 16,415.57. The index climbed 224.23 points at day’s high of 16,540.49, hit at the onset of trading session. Sensex lost 1.27 points at the day's low of 16,314.99, hit in afternoon trade.

The broader based S&P CNX Nifty rose 34.8 points or 0.72% at 4870.10. Nifty June 2008 futures were at 4848, a discount of 22.10 points against the spot closing.

The NSE's futures & options (F&O) segment turnover was at Rs 35,883.79 crore, lower than Rs 64758.96 crore on Thursday, 29 May 2008. BSE clocked a turnover of Rs 5478 crore in the cash segment as against Rs 6,230.43 on Thursday, 29 May 2008.

The Securities & Exchange Board of India (Sebi) on Thursday, 29 May 2008, allowed sovereign wealth funds, university funds, endowments and charitable trusts to register as foreign institutional investors. (FIIs).

The government on Thursday, 29 May 2008, announced relaxation on restriction imposed last year on external commercial borrowings (ECBs). The limit on the amount that a company can borrow by way of ECB and repatriate, has been raised to $50 million from $20 million. The government has allowed infrastructure firms to borrow up to $100 million from abroad.

Derivative contracts for May 2008 series expired yesterday. As per reports, rollover of Nifty positions from May 2008 series to June 2008 series stood at 66% as compared to 71% in the previous expiry. Marketwide rollovers were 82% as compared 81% in the previous series.

US markets advanced for a third straight day yesterday, 29 May 2008. The rally was led by strength in the financial sector and a big decline in oil prices.The Dow Jones industrial average advanced 52.19 points, or 0.41%, to 12,646.22. The Standard & Poor's 500 index rose 7.42 points, or 0.53%, to 1,398.26, and the Nasdaq composite index gained 21.62 points, or 0.87%, to 2,508.32.

The market breadth was weak on BSE with 1008 shares advancing as compared to 1701 stocks that declined. 58 stocks remained unchanged.

The BSE Mid-Cap index rose 0.28% to 6,760.54, while BSE Small-Cap index fell 0.59% to 8,133.04. Both these indices underperformed the Sensex.

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries fell 2.63% at Rs 2401.65.

India’s largest private sector bank by assets ICICI Bank was down 1.13% at Rs 788.30.

The top Sensex gainers were, Housing Development Finance Corporation (up 5.59% at Rs 2569.15), Ranbaxy Laboratories (up 4.77% at Rs 528.65), Bharat Heavy Electricals (up 3.89% at Rs 1662.15), HDFC Bank (up 2.53% at Rs 1357.85).

India’s largest engineering & construction firm by revenue Larsen & Toubro soared 3.19% at Rs 2981.35. The company, on Thursday (29 May 2008) recommended a liberal 1:1 bonus issue and a total dividend of Rs 17 per share for the year ended March 2008. The company reported a 37.95% rise in net profit to Rs 966.76 crore on a 34.79% increase in total income to Rs 8715.92 crore in Q4 March 2008 over Q4 March 2007.

The top Sensex losers were, Jaiprakash Associates (down 5.39% at Rs 213.20), Ambuja Cements (down 2.66% at Rs 95.20), Mahindra & Mahindra (down 2.26% at Rs 592.50), State Bank of India (down 1.43% at Rs 1443.35), and Reliance Infrastructure (down 1.25% at Rs 1230.75).

The BSE IT index outperformed the Sensex, gaining 2.11% at 4,643.79. Infosys Technologies (up 3.64% at Rs 1,957.55), TCS (up 3.41% at Rs 1,029.25), and HCL Technologies (up 0.92% at Rs 312.90), gained. However, Wipro (down 0.88% at Rs 508) and Satyam Computer (down 0.485 at Rs 523.75), slipped.

The BSE Power index underperformed the Sensex, falling 3.69% at 2,936.24. Power Grid Corporation of India (down 3.48% at Rs 98.50), GVK Power & Infrastructure (1.85% at Rs 47.75), Torrent Power (down 1.45% at Rs 115.50) and Tata Power (down 0.65% at Rs 1,356.65), slipped.

Reliance Power traded ex-bonus on a bonus of 3:5 at Rs 235.85. The record date for bonus issue is on Monday, 2 June 2008.

State-run oil firms, which were marginally up earlier in the day, fell even as the Reserve Bank of India (RBI) raised banks' borrowing limit to state-run refining companies to 25% keeping in mind the current situation in the oil sector. The BSE Oil & Gas index underperformed the Sensex, falling 1.65% at 10,396.85. HPCL (down 1.94% at Rs 244.655), BPCL (down 0.33% at 357.70), declined.

Among the private sector oil firms, Essar Oil (down 2.78% at Rs 223.65), Reliance Petroleum (down 1.02% at Rs 174.55) and Cairn India (down 0.64% at Rs 285.65), slipped.

AIA Engineering galloped 5.95% to Rs 1559.15 after the company scheduled a board meet on 4 June 2008 to consider stock split proposal.

Stock brokerage firm Geojit Financial Services vaulted 4.09% to Rs 56.05 on reports the Reserve Bank of India has cleared French bank BNP Paribas’ open offer for Geojit Financial Services shareholders.

Steel products maker Sujana Metal Products surged 4.42% to Rs 24.80 after the company announced the acquisition of three steel units with an investment of Rs 180 crore.

Pharmaceuticals firm Cadila Healthcare gained 1.35% to Rs 295.50 after the company said it has acquired 100% stake in Laboratories Combix, a Spanish pharmaceutical company, for an undisclosed amount.

Real estate developer Sobha Developers gained 2% to Rs 498.85 after posting 13.23% rise in net profit to Rs 228.3 crore on 32.77% increase in total income to Rs 476.50 crore in Q4 March 2008 over Q4 March 2007.

Tamil Nadu Newsprint & Papers rose 1.11% to Rs 100.10 after posting 26.1% rise in net profit to Rs 27.38 crore on 10.9% increase in net sales to Rs 250.22 crore in Q4 March 2008 over Q4 March 2007.

Among the side counters, Spice Communication (up 10% at Rs 59.65), Bhushan Steel (up 8.67% at Rs 909.15), Hindustan Construction Company (up 7.25% at Rs 119.10) and Sintex Industries (up 7.06% at Rs 418.55) and Sun TV Network (up 6.81% at Rs 354.35), soared.

Indian Overseas Bank (down 5.93% at Rs 115.75), Adani Enterprise (down 5.79% at Rs 794.05), Indiabulls Financial Services (down 5.56% at Rs 367.15), and Dish TV (down 5.50% at Rs 46.40), lost ground.

Reliance Power clocked a highest turover of Rs 354.21 crore on BSE. Reliance Industries (Rs 290.11 crore), larsen & Toubro (Rs 224.07 crore), Piramal Life Sciences (Rs 169.61 crore) and IFCI (Rs 166.31 crore), were the other turnover toppers on BSE in that order.

IFCI reported a highest volume of 2.62 crore shares on BSE. Reliance Power (1.44 crore shares), Spice Communication (1.35 crore shares), Ispat Industries (1.20 crore shares) and Reliance Natural Resources (88.22 lakh shares), were the other volume toppers on BSE in that order.