Market firms up ahead of monetary policy; L&T gains on strong Q1 results

The key benchmark indices snapped Friday (25 July 2008)’s heavy fall to score marginal gains. However, trade was cautious ahead of the Reserve Bank’s monetary policy review scheduled tomorrow, 29 July 2008.

Reliance Industries (RIL) recovered after weak start. Banking stocks were mixed ahead of the monetary policy review by the central bank. Capital goods and oil & gas stocks edged higher. Asian markets, which opened before Indian market, were mostly in green. European markets, which opened after Indian market, were trading in red.

The 30-share BSE Sensex gained 74.17 points or 0.52% higher at 14,349.11. Sensex gained 145.66 points at day’s high of 14,420.60 hit in early afternoon trade.

The market had opened lower dampened by serial blasts in Bangalore and Ahmedabad, which rocked the nation late last week. Sensex lost 55.56 points at the day’s low of 14,219.38, hit in early trade.

The broader based S&P CNX Nifty rose 20.25 points or 0.47% at 4,332.10.

The barometer index BSE Sensex is down 5,937.88 points or 29.26% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,857.66 points or 32.33% away from its all-time high of 21,206.77 struck on 10 January 2008.

Nifty July 2008 futures were at 4338.50, at a premium of 6.40 points as compared to spot closing of 4332.10.

The BSE clocked a turnover of Rs 4596 crore today, 28 July 2008 as compared to a turnover of Rs 5,866.95 on Friday, 25 July 2008.

NSE's futures & options (F&O) segment turnover was Rs 45,000.90 crore, which was lower than Rs 53,163.45 crore on Friday, 25 July 2008.

The BSE Mid-Cap index was up 1.04% to 5,630.78 and the BSE Small-Cap index was up 1.98% to 6,912.98.

The market breadth was positive on BSE with 1,767 shares advancing as compared to 848 that declined. 77 remained unchanged.

As per the provisional figures on BSE, the foreign institutional investors (FII)'s sold shares worth Rs 721.90 crore while domestic funds bought shares worth Rs 456.67 crore today,28 July 2008.

BSE Oil & Gas (up 1.56% to 9,652.90), BSE Capital Goods index (up 1.44% to 11,906.81), BSE Consumer Durables index (up 1.02% to 3,660.72), BSE Realty index (up 1% to 5,079.12), BSE PSU index (up 0.75% to 6,724.42) outperformed Sensex.

BSE Metal index (down 1% to 12,366.6.72), BSE Power index (down 0.29% to 2,579.81), BSE IT index (down 0.12% to 3,606.81), BSE Auto index (down 0.06% to 3,723.80), BSE Bankex (up 0.15% to 6,761.82), BSE Teck index (up 0.29% to 2,981.88), BSE HealthCare (up 0.39% to 4,202.67) and BSE FMCG (up 0.5% to 2,135.11) underperformed Sensex.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries rose 1.48% to Rs 2,179.10. The stock came off from the session's low of Rs 2,105.55. Earlier in the day, the stock had extended a sharp fall witnessed on Friday, 25 July 2008, after its Q1 June 2008 results disappointed investors.

Power stocks were mixed. Power Grid Corporation of India (down 1.06% to Rs 98.10), NTPC (down 1.44% to Rs 184.80) edged lower while Reliance Infrastructure (up 0.24% to Rs 987.05) and Reliance Power (up 0.21% to Rs 169.20) edged higher.

Metal stocks fell. Steel Authority of India (down 1.4% to Rs 137.30), National Aluminum Company (down 3.06% to Rs 428.75), Tata Steel (down 2.26% to Rs 603.95) edged lower.

Capital Goods stocks rose. India’s largest engineering and construction firm by sales Larsen & Toubro rose 3.73% to Rs 2,723.55. L&T reported 33.32% growth in net profit to Rs 502.44 crore on 50.63% rise in total income to Rs 7,103.26 crore in Q1 June 2008 over Q1 June 2007. It announced the result during the market hours today.

India’s largest wind turbine maker by sales Suzlon Energy rose 1.09% to Rs 213.75 while India’s largest electric equipment maker by sales Bharat Heavy Electricals declined 0.37% to Rs 1,665edged higher.

Oil & Gas stocks rose. BPCL (up 1.86% to Rs 325.70), HPCL (up 0.22% to Rs 230.20), Reliance Petroleum (up 1.72% to Rs 162.75) edged higher.

Banking stocks were mixed ahead of Reserve Bank of India (RBI’s) monetary policy review scheduled tomorrow 29 July 2008. India’s largest private sector bank in terms of net profit ICICI Bank rose 1% to Rs 663.45. The bank’s net profit declined 6% to Rs 728 crore on 1.6% growth in total income to Rs 9429.98 crore in Q1 June 2008 over Q1 June 2007. Treasury losses and slower growth in advances have taken a toll on ICICI Bank’s profits for the first quarter of the current financial year.

India’s second largest private sector bank by sales HDFC Bank was flat at Rs 1127.05 after the bank reported 44.55% jump in net profit to Rs 464.35 crore on 59.56% spurt in total income to Rs 4215.15 crore in Q1 June 2008 over Q1 June 2007. HDFC Bank said the results were not comparable due to merger of Centurion Bank of Punjab with the bank. HDFC Bank announced the result today during the market hours.

Axis Bank (down 2.15% to Rs 697.20) and Allahabad Bank (down 0.32% to Rs 61.70) edged lower.

India’s largest commercial bank State Bank of India (SBI) declined 2.12% to Rs 1,418.05. The bank’s net profit rose 15% to Rs 1640.79 crore on 32.4% growth in total income to Rs 16203.07 crore in Q1 June 2008 over Q1 June 2007.

India’s largest FMCG major by sales Hindustan Unilever declined 0.56% to Rs 230.90. Net profit of Hindustan Unilever fell 0.06% to Rs 558.18 crore on 21.09% growth in sales to Rs 4215.67 crore in Q2 June 2008 over Q2 June 2007. The company announced the results at the fag end of the trading session on Friday, 25 July 2008.

Sterlite Industries declined 3.47% to Rs 582.25 and Tata Power Company rose 3.5 6% to Rs 1,051.60. Sterlite Industries and Tata Power Company will replace Ambuja Cement and Cipla in Sensex from today, 28 July 2008. Cipla declined 1.17% to Rs 222.95.

Sterlite Industries' net profit rose 77.67% to Rs 357.93 crore on 0.73% fall in total income to Rs 3,142.6 crore in Q1 June 2008 over Q1 June 2007. It announced the result during trading hours today.

Ambuja Cement fell 0.37% to Rs 81.80. Net profit of Ambuja Cements declined 32.51% to Rs 577.02 crore on 8.20% growth in sales to Rs 1569.77 crore in the quarter ended June 2008 over the quarter ended June 2007.

Ranbaxy Laboratories (up 2.6% to Rs 493.75), ACC (up 3.34% to Rs 593.45), ONGC (up 3% to Rs 1,012.50), Reliance Communications (up 1.82% to Rs 512.25), and edged higher from Sensex pack.

Reliance Natural Resources clocked the highest volume of 1.68 crore shares on BSE. Ispat Industries (1.58 crore shares), Himachal Futuristic Communications (93.93 lakh shares), IFCI (88.73 lakh shares) and Mangalore Refinery and Petrochemicals (79.93 lakh shares) were the volume toppers in that order.

Larsen & Toubro clocked the highest turnover of Rs 294.76 crore on BSE. Reliance Industries (Rs 262.66 crore), Reliance Capital (Rs 197.62 crore), Housing Development and Infrastructure (Rs 189.08 crore) and Reliance Natural Resources (Rs 161.34 crore) were other turnover toppers in that order.

Expiry of futures & options contracts for July 2008 series is on Thursday, 31 July 2008. As per reports, marketwide rollover of positions from July 2008 series to August 2008 series stood at 19%, while that of Nifty was 24%, as of Friday 25 July 2008.

In Europe, France’s CAC, UK’s FTSE 100 and Germany’s DAX were down by between 0.33% to 1.26%.

Asian markets were trading higher today, 28 July 2008. China's Shanghai Composite, Japan's Nikkei, South Korea's Seoul Composite, rose between 0.02% to 1.32%. Singapore's Strait Times and Hong Kong's Hang Seng fell between 0.29% to 0.44%.

US markets advanced on Friday, 25 July 2008 on better than expected economic of durables, new home sales and consumer sentiment eased concerns of economic slowdown. The Dow Jones rose 21 points at 11,370 while the Nasdaq Composite gained 30 points to 2,310. The S&P 500 index climbed 5.22 points at 1257.76.

Back home, the markets had cracked on Friday, 25 July 2008 on weak global cues and profit booking by investors after a recent sharp surge in a short span. The 30-share BSE Sensex fell 502.07 points or 3.40% at 14,274.94 and the broader based S&P CNX Nifty slipped 121.7 points or 2.74% at 4311.85, on that day.