Bajaj Auto rallies amid stock-specific buying

The market ended little changed today after witnessing a bout of volatility in the day. Investors refrained building large positions ahead of the weekly inflation data and Index of Industrial Production (IIP) data for May 2008 to be released by the government tomorrow, 11 July 2008.

The Sensex ended in the red while the Nifty ended slightly higher. All sectoral indices on BSE barring BSE Metal index and BSE PSU index, were negative. India's largest aluminium producer by sales Hindalco surged.

As per provisional data, foreign funds today, 10 July 2008, sold shares worth a net Rs 551.67 crore. Domestic funds sold shares worth a net Rs 112.46 crore.

The 30-share BSE Sensex lost 38.02 points or 0.27% at 13,926.24. It shed 200.32 points at the day’s low of 13,763.94 hit in afternoon trade. At the day’s high of 14,047.43, the Sensex gained 83.17 points in early trade.

The broader based S&P CNX Nifty rose 5.1 points or 0.12% at 4162.20. Nifty July 2008 futures were at 4146, at a discount of 13.2 points as compared to spot closing.

The BSE Mid-Cap index rose 0.08% at 5,475.20, while the BSE Small-Cap index was up 0.29% at 6,809.82.

The market breadth was strong on BSE, with 1453 gainers as against 1171 losers. 73 stocks remained unchanged.

BSE clocked a turnover of Rs 4807 crore as against Rs 5,093.01 on Wednesday, 9 July 2008. NSE's futures & options (F&O) segment turnover was Rs 35645.89 crore, which was lower than Rs 47907.81 crore on Wednesday, 9 July 2008.

India's largest aluminium producer Hindalco surged 5.49% to Rs 153.65 and state-run National Aluminium Company jumped 8.57% to Rs 360.25 tracking London Metal Exchange aluminium futures which surged to a record high of $3,350 a tonne.

The BSE Metal index outperformed the Sensex, rising 2.50% at 12,959.17. Ispat Industries (up 6.44% at Rs 23.95), Hindustan Zinc (up 6.19% at Rs 550.20), Steel Authority of India (up 3.18% at Rs 139.70), and Sterlite Industries (up 1.93% at Rs 650.80), soared.

World’s sixth largest steel maker Tata Steel rose 3.11% at Rs 698.95 on reports the company plans to list a holding firm for steel and raw material assets outside India, on the London Stock Exchange to raise funds for acquiring iron ore and coal mines.

Cement pivotals rose. ACC (up 3.12% at Rs 552.80), and Ambuja Cement (up 2.46% at Rs 79), advanced.

Shares of public sector units witnessed buying interest on hopes the government may kickstart divestment of state-run units following Left's withdrawal of support to the government. MMTC (up 10% at Rs 22,678.60), Power Grid Corporation of India (up 4.69% at Rs 88.25), NMDC (up 4.01% at Rs 251.80), and Chennai Petroleum (up 3.93% at Rs 289.80), spurted. The BSE PSU index outperformed the Sensex, rising 1.79% at 6,073.82

Over the last four years, Left parities had stalled privatisation of state-run firms, pension reforms, higher foreign limits in insurance and more liberal norms for foreign bank. Left parties on Tuesday said they are withdrawing support to the Congress-led United Progressive Alliance government to protest Indo-US nuclear deal.

Auto stocks declined. The BSE Auto index underperformed the Sensex, sliding 1.12% at 3,565.67. Maruti Suzuki (down 3.56% at Rs 567.70), hero Honda (down 2.73% at Rs 687.80), And Tata Motors (up 1.25% at Rs 399.50), slipped.

Two and three wheeler maker Bajaj Auto gained 9.60% to Rs 494.15. The company reported 4.37% fall in net profit to Rs 175 crore on a 9.24% rise in total income to Rs 2340 crore in Q1 June 2008 over Q1 June 2007. As per reports, Bajaj’s quarterly figures were higher than expectations.

India’s largest real estate developer by market capitalization DLF rose 1.79% to Rs 458.35 after the company today said it has set aside Rs 1100 croer for buyback of shares at a maximum price of Rs 600 a share.

India's second largest software exporter by sales Infosys Technologies fell 0.82% at Rs 1806.20. The company will declare Q1 June 2008 results on Friday, 11 July 2008.

The key thing that analysts and market men will be looking at is whether Infosys revises its year ending March 2009 (FY 2009) guidance given at the time of announcing the year ended March 2008 (FY 2008) results in April 2008. Some analysts expects Infosys to revise the guidance upwards due to good Q1 June 2008 results and also to factor in sharp fall in rupee against the dollar. Infosys had given FY 2009 guidance based on a rupee/dollar rate of 40.02. Rupee is currently hovering at below 43 a dollar.

India’s largest private sector bank by market capitalization ICICI Bank fell 0.83% at Rs 616.75.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries declined 1.72% at Rs 2044.10.

Reliance Capital reported the highest turnover of Rs 280.88 crore on BSE. Reliance Industries (Rs 211.72 crore), Reliance Infrastructure (Rs 191.64 crore), DLF (Rs 185.04 crore) and Mundra Port & Special Economic Zone (Rs 160.53 crore), were the other turnover toppers on BSE in that order.

IFCI clocked highest volume of 1.91 crore shares on BSE. Reliance Natural Resources (1.69 crore shares), Ispat Industries (1.67 crore shares), Reliance Petroleum (92.24 crore shares) and First Winner Industries (80.72 crore shares), were the other volume toppers on BSE in that order.

Real estate developer DS Kulkarni Developers surged 5.93% to Rs 100.95 after the company said it has sold 50% in a unit that is setting up a premium Bangalore residential project to ICICI Prudential PMS Real Estate Portfolio, for Rs 35 crore.

Engineering and construction firm Petron Engineering Construction spurted 6.74% to Rs 209.90 after the company said on Wednesday, 9 July 2008, it has received letters of intent for four power project works in Uttar Pradesh, totally worth Rs 14.07 crore.

Aluminium producer Madras Aluminium Company jumped 11.41% to Rs 741.50 after the company fixed 24 July 2008 as record date for a 5-for-1 stock split.

IT services firm Allied Digital Services moved up 7.02% to Rs 890 after company acquired 80.5% in infrastructure management business of US-based EnPointe Technologies for $30 million.

Paint maker ICI India rose 1.94% at Rs 538 after the company said its board will meet on 17 July 2008 to consider extending the share buyback scheme, at a price of up to Rs 575 each.

Tyre maker JK Tyre & Industries slipped 3.29% to Rs 91.20 on reports that it has raised truck tyre prices by 6% effective yesterday, 9 July 2008, in the wake of rising input costs.

Volatility was caused by uncertainty as to whether the government will be able to win vote of confidence in the parliament. Reports suggest that government may hold a special session of parliament on 21 July 2008 - 22 July 2008 to seek vote of confidence following withdrawal of support to the government by Left front this week.

The government is confident of retaining power due to backing from Samajwadi Party, a regional party in Uttar Pradesh. Samajwadi Party (SP) yesterday, 8 July 2008, said it will vote with the government in support of the nuclear deal with the United States.

Cues from global markets were mixed. In Europe, key benchmark indices in UK, France and Germany were down by 0.97% to 1.64%. Asian markets were mixed. Key benchmark indices in Taiwan, South Korea, Hong Kong and Japan were up by 0.07% to 1.19%. Key indices in Singapore, and China were down by 0.55% to 1.54%.

US stocks plunged yesterday, 9 July 2008 with financial stocks taking the biggest hit as concerns over the credit crisis took the spotlight again, sending cautious investors to the sidelines. The Dow Jones industrial average plunged 236.77 points, or 2.08%, to 11,147.44. The Standard & Poor's 500 index lost 29.01 points, or 2.28%, to 1,244.69, while the Nasdaq Composite index declined 59.55 points, or 2.60%, to 2,234.89.

From a record high of 21,206.77 hit on 10 January 2008, Sensex has lost 7,280.53 points or 34.33%. It is down 6360.75 points or 31.35% in calendar year 2008 so far.