Market extends gains for third straight week

The key benchmark indices extended gains for the third straight week in the week ended Friday, 25 July 2008, buoyed the Congress-led coalition government winning confidence vote in parliament, sharp correction in crude oil and short covering of derivatives positions.

The barometer index BSE Sensex gained 639.54 points or 4.69% to 14,274.94 in the week ended Friday, 25 July 2008. The S&P CNX Nifty edged up 219.60 points or 5.36% to 4,311.85 in the week.

The BSE Mid-Cap index rose 333.20 points or 6.35% to 5,572.59. The BSE Small-Cap index advanced 322.89 points or 5.01% to 6778.78.

Foreign institutional investors (FIIs) were net buyers to the tune of Rs 43 crore in the month of July 2008 so far, till 24 July 2008. FIIs sold shares worth Rs 25,422.30 crore in the calendar year 2008. Mutual funds have bought shares worth Rs 882.20 crore in the month of July 2008 so far, till 23 July 2008.

Trading for the week started on an upbeat note. The 30-share BSE Sensex gained 214.64 points or 1.57% at 13,850.04 and the broader based S&P CNX Nifty advanced 67.25 points or 1.64% at 4159.50 on Monday, 21 July 2008. Index pivotals were in demand on strong rally in Asian stocks.

Market extended gains on Tuesday, 22 July 2008 ahead of the government's trust vote in parliament. The 30-share BSE Sensex advanced 254.16 points or 1.84% at 14,104.20 and the broader based S&P CNX Nifty advanced 80.6 points or 1.94% at 4240.10, on that day.

Markets galloped on Wednesday, 23 July 2008 after the Congress-led coalition government won a confidence vote in parliament late on Tuesday, 22 July 2008, raising hopes for economic reforms. The 30-share BSE Sensex surged 838.08 points or 5.94% at 14,942.28 and the broader based S&P CNX Nifty advanced 236.70 points or 5.58% at 4476.80, on that day.

The market snapped its five-day rally on Thursday, 24 July 2008 as investors booked profits at higher level. The 30-share BSE Sensex lost 165.27 points or 1.11% at 14,777.01 and the broader based S&P CNX Nifty fell 43.25 points or 0.97% at 4433.55, on that day.

The market extended losses on Friday, 25 July 2008 following overnight sharp setback in US stocks. The sentiment was also hit by seven blasts that took place in Bangalore. The 30-share BSE Sensex lost 502.07 points or 3.40% at 14,274. 94 and the broader based S&P CNX Nifty fell 121.70 points or 2.74% at 4311.85, on that day.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 1.64% to Rs 2147.35 in the week. RIL reported 13.2% growth in net profit to Rs 4110 crore on 40.65% increase in total income to Rs 41,805 crore in Q1 June 2008 over Q1 June 2007. The results were announced after market hours on 24 July 2008.

India’s second largest listed telecom services provider by sales Reliance Communication galloped 15.60% to Rs 503.10 after it called off tie-up talks with South Africa's MTN Group, Africa's biggest mobile phone group, citing legal issues.

However, India’s largest listed cellular services provider by sales Bharti Airtel fell 0.69% at Rs 796.45. The company reported 44.86% growth in net profit to Rs 2046.79 crore on a 39.72% increase in revenue to Rs 7952.32 crore in Q1 June 2008 over Q1 June 2007.The company announced the results before trading hours on 24 July 2008.

Banking shares advanced in anticipation of reforms in the banking sector after the UPA government won trust vote in parliament. India’s largest private sector bank by assets ICICI Bank rose 6.36% to Rs 656.85 and India’s second largest private sector bank by assets HDFC Bank rose 9.06% to Rs 1127.15

India’s largest state run bank by assets State Bank of India vaulted 11.47% to Rs 1448.75. The Union cabinet approved the merger of unlisted State Bank of Saurashtra with its parent State Bank of India (SBI) on Thursday, 24 July 2008.

India’s largest drug maker by sales Ranbaxy Laboratories surged 10.01% at Rs 481.25 after the company said a UK court had quashed the country's Serious Fraud Office's (SFO) prosecution of the firm's subsidiary. Ranbaxy said in a statement the English Crown Court had also declined an application by the SFO for permission to appeal to the English Court of Appeal. However, the SFO retained a right to appeal to the court directly, the Indian firm said.

India's largest passenger carmaker by sales Maruti Suzuki (India) slipped 1.50% to Rs 614.40. Its net profit fell 6.8% to Rs 465.85 on a 20.9% increase in sales to Rs 4753.58 crore in Q1 June 2008 over Q1 June 2007. The company announced the results after trading hours on 21 July 2008.

India's largest power equipment maker by sales Bharat Heavy Electricals (Bhel) advanced 8.15% at Rs 1654.90. Its net profit rose 33.1% to Rs 384.41 crore on a 33.9% increase in sales to Rs 4329.24 crore in Q1 June 2008 over Q1 June 2007. The company's outstanding order book stood at Rs 95,000 crore as on 30 June 2008. The company announced the results after trading hours on 21 July 2008.

World’s sixth largest steel maker Tata Steel climbed 4.26% at Rs 617.90 after its Thailand unit reported a surge in quarterly net profit and on expectations for a domestic price rise.

Shares of firms which are potential beneficiaries of the Indo-US nuclear deal surged after the Indian government won parliamentary vote of confidence clearing the way for the landmark civilian nuclear deal with the US. Reliance Infrastructure (up 15.08% to Rs 984.65), Alstom Projects India (up 6.60% to Rs 428.70), Rolta India (up 5.41% to Rs 288.60), Walchandnagar Industries (up 4% to Rs 267.70), Areva T&D India (up 12.56% to Rs 1655.25), Larsen & Toubro (up 3.16% to Rs 2625.60), National Thermal Power Corporation (up 8.19% to Rs 187.50), surged.

Among mid-cap stocks, McDowell Holding (up 48.73% to Rs 141), Phoenix Mills (up 45.29% to Rs 165.85), ITI (up 44.42% to Rs 38.20), Reliance Natural Resources (up 38.11% to Rs 95.50), Adlabs Films (up 26.83% to Rs 528.05), HMT (up 41.82% to Rs 75.45), and Strides Arcolabs (up 38.56% to Rs 190.45), surged.

Inflation based on the wholesale price index rose 11.89% in 12 months to 12 July 2008, below the previous week's annual rise of 11.91%, government data released on 24 July 2008 showed. Inflation for the week ended 17 May 2008 was revised upwards to 8.66% from 8.10%.

Participating in a debate on the trust motion in parliament, Finance Minister P Chidambaram on 22 July 2008, said the gross domestic product (GDP) growth in the fiscal year 2007/08 was close to 9.1%. He said the government has targeted farm credit of 2.8 trillion rupees ($65 billion) for the fiscal year ending in March 2009. Debt waiver of Rs 66,477 crore was granted to farmers so far, he said.