Market extends gains

The key benchmark indices extended yesterday (30 July 2008)’s sharp gains ending marginally higher amidst volatility as futures & options contracts for July 2008 series expired today. However, the market breadth turned negative from earlier strong breadth. Crude oil surged by more than $4 a barrel yesterday, 30 July 2008. Tata Power Company and Tata Steel rose close to 4%.

Banking shares were mixed ahead of the inflation data for 12 months to 19 July 2008 to be released after trading hours today, 31 July 2008. Metal stocks gained. Healthcare and IT stocks fell.

The 30-share BSE Sensex rose 68.54 points or 0.48% at 14,355.75. At the day’s low of 14,161.76, the Sensex lost 125.45 points in afternoon trade. Sensex hit a high of 14,369.59 in late trade. At the day's high, the Sensex rose 82.38 points.

The broader based S&P CNX Nifty was up 19.40 points or 0.45% to 4,332.95. Nifty August 2008 futures were at 4337, at a premium of 4.05 points as compared to spot closing of 4332.95.

The BSE clocked the turnover of Rs 5,047 crore as compared to Rs 5,353.99 crore on 30 July 2008. NSE's futures & options (F&O) segment turnover was Rs 64,640.25 crore, which was higher than Rs 58,543.91 crore on Wednesday, 30 July 2008.

The barometer index BSE Sensex is down 5,931.24 points or 29.23% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,851.02 points or 32.3% away from its all-time high of 21,206.77 struck on 10 January 2008.

The market breadth turned negative from earlier strong breadth with 1,296 shares advancing as compared to 1,326 that declined on BSE. 75 remained unchanged.

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

The BSE Mid-Cap index fell 0.24% to 5,567.37 and BSE Small-Cap index declined 0.21% to 6,912.79. Both these indices underperformed Sensex.

BSE Metal index (up 1.68% to 12,912.61), BSE Oil & Gas (up 1.27% to 9,729.48), BSE Power index (up 0.78% to 2,574.27), BSE Realty index (up 0.74% to 5,079.01), BSE Consumer Durables index (up 0.73% to 3,685.84), BSE Capital Goods index (up 0.48% to 11,683.80) outperformed Sensex.

BSE HealthCare (down 1.09% to 4,162.03), BSE Teck index (down 0.99% to 3,000.41), BSE IT index (down 0.87% to 3,689.57), BSE Bankex (down 0.1% to 6,516.41), BSE Auto index (up 0.18% to 3,679.51), BSE FMCG index (up 0.28% to 2,139.18), BSE PSU index (up 0.44% to 6,706.14), underperformed Sensex.

As per the provisional figures on BSE, foreign institutional investors (FII)'s bought shares worth Rs 494.87 crore and domestic funds bought shares worth Rs 320.57 crore today, 31 July 2008.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 1.99% to Rs 2,206.20.

IT stocks fell. Infosys (down 1.2% to Rs 1,583.30), Tata Consultancy Services (down 0.72% to Rs 832.55) and Wipro (down 1.53% to Rs 416) edged lower. India’s third largest IT exporter by sales Satyam Computer Services was flat at Rs 380.30.

Healthcare stocks fell. Cipla (down 0.61% to Rs 218.70), Dr Reddy’s Laboratories (down 2.78% to Rs 569.20), Wochardt (down 2.48% to Rs 186.85) edged lower. India’s largest drugmaker by sales Ranbaxy rose 1.29% to Rs 439.10.

Metal stocks rose. Hindalco Industries (up 0.68% to Rs 141.10), Steel Authority of India (up 3.42% to Rs 140.70), Sterlite Industries (up 1.5% to Rs 631.80) and Tata Steel (up 3.95% to Rs 654.95) edged higher.

Banking shares were mixed ahead of the weekly inflation data, to be released after market hours today, 31 July 2008. India’s largest private sector bank by net profit ICICI Bank declined 0.07% to Rs 634.85. India’s largest commercial bank State Bank of India rose 2.03% to Rs 1,414.75.

HDFC Bank, India's second largest private sector bank in terms of operating income, rose 0.25% to Rs 1,095.25.

Grasim Industries (down 2.78% to Rs 1,800.45), Bharti Airtel (down 2.46% to Rs 790), Maruti Suzuki India (down 2.36% to Rs 574.90), edged lower from Sensex pack.

Tata Power Company (up 4% to Rs 1,160.10), DLF (up 3.79% to Rs 509.30), Mahindra & Mahindra (up 1.37% to Rs 520.55), NTPC (up 0.79% to Rs 172.25), Ranbaxy Laboratories (up 1.29% to Rs 499.10), edged higher from Sensex pack.

Tata Motors, the country’s top truck manufacturer in terms of sales lost 3.13% to Rs 403.25 after the company reported 30.10% fall in net profit to Rs 326.11 crore on 14.40% rise in net sales to Rs 6928.44 crore in Q1 June 2008 over Q1 June 2007. The company announced the results during trading hours yeserday, 30 July 2008, when the stock had risen 4.91% to Rs 416.30.

India’s largest cigarette maker in terms of sales ITC was flat at Rs 187.80. After market hours yesterday, 30 July 2008, the company reported 4% drop in net profit at Rs 748.67 crore on 18% growth in net turnover to Rs 3,900 crore in Q1 June 2008 over Q1 June 2007. The drop in net profit was attributed to the increase in excise duties on non-filter cigarettes in the Union Budget 2008, steep rise in commodity prices and store rentals.

Reliance Natural Resources clocked the highest volume of 3.72 crore shares on BSE. Birla Cotsyn (1.79 crore shares), Iapat Industries (1.3 crore shares), Kashyap Technologies (88.35 lakh shares) and Chambal Fertilisers and Chemicals (83.17 lakh shares) were the other volume toppers in that order.

Reliance Natural Resources clocked the hoghest turnover of Rs 370.34 crore on BSE. Reliance Capital (Rs 344.41 crore), Reliance Industries (Rs 182.77 crore), Tata Steel (Rs 163.03 crore) and SEL Manufacturing (Rs 151.18 crore) were the other turnover toppers in that order.

On the New York Mercantile Exchange, September 2008 crude surged $4.58, or 3.75%, to $126.77 a barrel yesterday, 30 July 2008 after data showed a surprise drawdown in gasoline stocks last week.

US markets surged yesterday, 30 July 2008 after encouraging jobs data and the central bank's attempts at boosting liquidity in the financial markets offset a surge in oil prices. The Dow Jones jumped 186.13 points, or 1.63%, to 11,583.69. The Standard & Poor's 500 index rose 21.06 points, or 1.67%, to 1,284.26, and the Nasdaq Composite index advanced 10.10 points, or 0.44%, to 2,329.72.

European markets which opened after Indian market were positive. France’s CAC 40, Germany’s DAX and UK’s FTSE 100 were down by between 0.64% to 1.11%.

Asian markets were trading mixed today, 31 July 2008. Key benchmark indices in China and Taiwan were down by between 0.65% and 1.25%. However, indices in Hong Kong, Japan Singapore and South Korea were up by between 0.07% and 1.08%.

Back home, rally in global equities and fall in oil prices aided a rebound on the domestic bourses yesterday, 30 July 2008. The 30-share BSE Sensex jumped 495.67 points or 3.59% at 14,287.21 and the broader based S&P CNX Nifty jumped 123.70 points or 2.95% at 4,313.55, on that day.