Third straight day of gains

Rally in Asian and European markets, and firm US stock futures indicating higher opening of US stocks today helped Indian market shrug off a surge in inflation to highest level in more than three years. Shares from banking and metal advanced on renewed buying.

The Dow Jones Industrial Average futures were up 25 points to 13017 while Nasdaq futures were up 4.25 points to 2040.

The 30-share BSE Sensex rose 81.40 points or 0.47% at 17,434.94. The barometer index opened with an upward gap of 122.87 points at 17,476.41. It struck a high of 17,497.36 in early trade. At the day’s high, Sensex gained 143.82 points. Sensex lost 38.02 points at day’s low of 17,315.52 touched in early afternoon trade.

The broader based S&P CNX Nifty advanced 42.45 points or 0.83% at 5,157.70. Nifty May 2008 futures were at 5148 a discount of 9.70 points as compared to spot closing

As per provisional data, foreign funds bought shares worth a net Rs 475.87 crore today, 16 May 2008. Domestic funds bought shares worth Rs 392.10 crore.

The BSE Sensex has gained 682.08 points or 4.07% in three trading sessions from 16752.86 on 13 May 2008, on firm global markets and due to depreciation of the rupee against the dollar which has lifted export driven IT shares.

The wholesale price index rose 7.83% in 12 months to 3 May 2008, higher than previous week's annual rise of 7.61%, government data released today, 16 May 2008, showed. It was the highest since an annual reading of 7.93% n 6 November 2004. Meanwhile, the government also revised inflation for the week ended 8 March 2008 sharply upwards to 7.78% as compared to 5.92% reported earlier.

The market breadth was strong on BSE with 1521 shares advancing as compared to 1160 that declined. 86 remained unchanged.

The BSE Mid-Cap index was up 0.70% to 7,129.70 while the BSE Small-Cap index gained 0.86% to 8,620.26. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 6085 crore as compared to Rs 6,484.97 crore yesterday, 15 May 2008. Turnover in NSE’s futures & options segment amounted to Rs 37876.68 crore as compared to Rs 38196.16 crore yesterday, 15 May 2008

All sectoral indices on BSE logged gains barring the BSE IT index which shed 0.42% to 4,467.55.

The BSE Oil & Gas index (up 0.75% to 11,289.58), BSE Bankex (up 1.54% at 8,941.28), BSE Capital Goods index (up 0.71% at 13,696.75), BSE FMCG index (up 0.55% to 2,508.25), BSE Auto (up 0.57% at 4,757.30), BSE Health Care index (up 0.83% at 4,321.48), BSE Metal index (up 1.90% to 17,058.01), BSE Power (up 0.89% to 3,332.49), and BSE Consumer Durables index (up 0.75% to 4,582.72s), outperformed the Sensex.

The BSE Realty index (up 0.02% at 8,044.25), BSE TecK index (up 0.06% to 3,555.01), BSE PSU index (up 0.40% to 7,793.86), underperformed the Sensex.

Among the 30-member Sensex pack, 16 gained while the rest slipped

India’s largest bulk drug maker in terms of sales, Ranbaxy Laboratories advanced 3.04% to Rs 509.50 on 7.61 lakh shares. It was the top gainer from Sensex pack.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) was up 0.72% to Rs 2641.45 on 6.52 lakh shares. The stock moved in a range of Rs 2601 and Rs 2646 so far during the day.

Metal shares rose on fresh buying. Sterlite Industries (up 2.08% to Rs 891.10), Tata Steel (up 0.98% to Rs 890.50), and Sesa Goa (up 0.55% to Rs 4280) gained.

Steel Authority of India jumped 7.97% to Rs 187 on reporting 24.97% rise in net profit to Rs 2376.76 crore on 30.42% increase in total income to Rs 13855.25 crore in Q4 March 2008 over Q4 March 2007. The company announced the results during trading hours today, 16 May 2008.

India’s largest cellular services provider in terms of market capitalisation Reliance Communications gained 2.73% to Rs 605.10 after its 95% infrastructure subsidiary Reliance Infratel reportedly secured the Securities and Exchange Board of India (Sebi)’s nod for public issue. The Anil Ambani group company may offload a 10.05% stake in Reliance Infratel to raise Rs 5,000-6,000 crore through the IPO.

India’s largest cellular services provider in terms of market capitalisation Bharti Airtel shed 1.13% to Rs 846.50. The company’s plan for taking over South African telecom major MTN has reportedly entered into a crucial negotiation phase. While Bharti Airtel is ready to acquire 51% stake, MTN’s management wants it to buyout the entire company.

Banking shares shrugged off data showing a surge in inflation. HDFC Bank (up 1.61% to Rs 1500), and State Bank of India (up 1.31% to Rs 1701) advanced

ICICI Bank, the country's largest private sector bank in terms of net profit was up 1.22% to Rs 940. As per reports, the bank’s the private equity arm ICICI Venture Fund Management, will raise as much as $3 billion for an infrastructure and a real estate fund.

IT pivotals slipped after firm start on profit taking. Infosys (down 1.28% to Rs 1867.10, off day’s high of Rs 1918.40), Wipro (down 0.66% to Rs 505.50, off day’s high of Rs 515), and TCS (down 1.05% to Rs 975.10, off day’s high of Rs 1000.15), declined.

However India’s fourth largest software services exporter Satyam Computer Services rose 0.64% to Rs 487.

The Indian rupee fell to a 13-month low against the dollar today, 16 May 2008. A depreciating rupee augurs well for IT companies as they derive over 50% of their revenues from exports to US.

India’s largest private sector engineering company in terms of outstanding order book position Larsen & Toubro slipped from day’s high of Rs 3033. It closed with gain of 0.56% to Rs 2997. The company said it had entered into a partnership agreement with GE Energy, a unit of General Electric, for power plant control systems in India.

Hindustan Unilever (up 1.47% to Rs 242.10) and Jaiprakash Associates (up 1.67% to Rs 270.05), edged higher from Sensex pack.

India’s largest dedicated housing finance company in terms of total income Housing Development Finance Corporation fell 1.55% to Rs 2750 on 63,625 shares. It was the top loser from Sensex pack.

NTPC, the country’s largest power generation company in terms of sales, slipped 0.16% to Rs 191.35 on reports the Finance Ministry has turned down its proposal for selling 4.75% stake through follow-on public offer. The Government holds 89.5% in the utility (as at end March 2008).

Ambuja Cements (down 1.07% to Rs 110.90), and Cipla (down 1.12% to Rs 211.30) edged lower from Sensex pack.

Aishwarya Telecom was the top traded counter on BSE with turnover of Rs 357.30 crore followed by Housing Development Infrastructure (Rs 177.66 crore), Steel Authority of India (Rs 171.22 crore), Reliance Industries (Rs 171.20 crore), and Reliance Communications (Rs 169.78 crore), in that order.

Bank of India vaulted 5.66% to Rs 358.20 on reporting 76.87% rise in net profit to Rs 1959.84 crore on 38.26% rise in total income to Rs 14528.41 crore, on a consolidated basis, in the year ended March 2008 over year ended March 2007

Zylog Systems declined 4.62% to Rs 282.85 on reporting 21.67% fall in net profit to Rs 18.36 crore on 1.37% rise in net sales to Rs 162.08 crore in Q4 March 2008 over Q3 December 2007. The company announced the results after trading hours on Thursday, 15 May 2008.

Voltas dropped 2.71% to Rs 163.20 on reporting 53.8% fall in net profit to Rs 55.41 crore on 16.7% rise in net sales to Rs 842.11 crore in Q4 March 2008 over Q4 March 2007.

Chennai Petroleum Corporation rose 0.26% to Rs 351 on reporting 81.9% surge in net profit to Rs 343.92 crore on 48% increase in net sales to Rs 8367.89 crore in Q4 March 2008 over Q4 March 2007. The company announced the results after trading hours on Thursday, 15 May 2008.

Edelweiss Capital declined 2.08% to Rs 793 despite reporting 88.51% rise in net profit to Rs 10.01 crore on 252.64% rise in total income to Rs 71.2 crore in Q4 March 2008 over Q4 March 2007.

Tata Investment Corporation surged 5.35% to Rs 577.50 after the company said its board will raise Rs 448 crore through rights issue of zero-coupon convertible bonds in the ratio of 1:5.

Tech Mahindra gained 2% to Rs 952 on reports the company has bagged a $700-million contract from BT Group to improve its IT infrastructure.

Kinetic Motor Company jumped 5% to Rs 30.75 on reports Sanyang Industry Company, a Taiwan-based two-wheeler maker, has expressed keen interest in acquiring controlling stake in the Pune-based company.

Bongaigaon Refinery & Petrochemicals galloped 9.54% to Rs 62 after the company today, 16 May 2008, announced a divided of Rs 5 per share for the year ended March 2008

In a development that can boost the stock market, the government is reportedly set to review the restrictions imposed on participatory notes (P-notes), as foreign institutional investor (FII) have pressed substantial sales from Indian markets in calendar year 2008. In October 2007, FIIs were barred from issuing P-notes in the derivatives market. The finance ministry has asked the Securities & Exchange Board of India (Sebi) to examine whether those restrictions have hindered investments by FIIs.

Meanwhile, polling began for the second phase from today, 16 May 2008, in 66 Assembly constituencies in ten districts of Karnataka. Third and final phase of election will be held on 22 May 2008 in 69 constituencies spread across eight districts. Counting of votes for all the 224 segments will be held on 25 May 2008.

European markets which opened after Indian markets, extended early gains. Key benchmark indices in United Kingdom (up 1.47% to 6,342.80), Germany (up 1.32% to 7,174.62), and France (up 0.87% to 5,101.36), edged higher.

Asian markets settled mixed today, 16 May 2008. Hang Seng (up 0.41% at 25,618.86), Straits Times (up 0.91% at 3,236.56), Seoul Composite (up 0.14% at 1,888.43) and Taiwan Weighted (up 0.44% at 9,197.41) edged higher.

However China’s Shanghai Composite (down 0.36% at 3,624.33) and Nikkei 225 Average (down 0.23% at 14,219.48), declined.

US markets rallied yesterday, 15 May 2008, after a better-than-expected economic data and pullback in oil prices eased some of the market`s concerns about inflation. The Dow Jones industrial average rose 94.28 points, or 0.73%, to 12,992.66. The Nasdaq Composite index rose 37.03 points, or 1.48%, to 2,533.73 while the S&P 500 index gained 15 points at 1,424.

Back home, the 30-share BSE Sensex surged 375.19 points or 2.21% at 17,353.54 and the broader based S&P CNX Nifty gained 103.50 points or 2.07% at 5,115.25, yesterday 16 May 2008.

US crude for June delivery rose 67 cents to $124.79 a barrel today, led by the bullish heating oil market as China and Europe scramble for barrels, thinning global supply.

The Indian stock market remains closed on Monday, 19 May 2008, on account of Buddha Pournima.