Market ekes out small gains; turnover drops

Profit booking in late trade curtailed gains in key benchmark indices after a strong start. The BSE Sensex advanced 49 points. The market retreated from day's high struck in early afternoon trade as index heavyweight Reliance Industries (RIL) slipped and as banking shares pared gains. A sharp slump in the price of oil and notable gains in US stocks on Friday, 22 August 2008, had triggered firm opening. Asian markets were firm while European markets were subdued.

Shares from interest rate sensitive firms and OMCs were in demand. However metal stocks declined on selling pressure. The market breadth was mildly negative. Turnover was dull today.

As per provisional data released by the stock exchanges after trading hours, foreign funds today, 25 August 2008, bought shares worth a net Rs 62.92 crore. Domestic funds bought shares worth a net Rs 96.26 crore.

European markets, which opened after Indian markets, were subdued. Key benchmark indices in France and Germany fell 0.57% and 0.23% respectively. Stock markets in UK were closed.

Light, sweet crude for October 2008 delivery plunged $6.59, or 5.43%, to $114.59 a barrel on the New York Mercantile Exchange (NYMEX) on Friday, 22 August 2008, its biggest one-day slide since 2004 as Russian troops began a long-awaited pullback in Georgia.

The BSE 30-share Sensex rose 48.86 points or 0.34% at 14,672.69. The Sensex opened with an upward gap of 241.88 points at 14,643.37 and advanced to hit an intra-day high of 14,672.69 in mid-morning trade. At the day’s high, the Sensex gained 271.20 points. At the day’s low of 14,416.20 hit in late trade, the Sensex rose 14.71 points.

The S&P CNX Nifty rose 7.90 points or 0.18% at 4,335.35. Nifty August 2008 futures were at 4336.50, at a premium of 1.15 points as compared to spot closing. Volatility is likely to remain high ahead of the expiry of derivative contracts for the August 2008 on Thursday, 28 August 2008.

The BSE Sensex is down 5,836.64 points or 28.77% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6756.42 points or 31.84% away from its all-time high of 21,206.77 struck on 10 January 2008.

The BSE Mid-Cap index was rose 0.25% to 5,741.21 and the BSE Small-cap index fell 0.05% to 6,922.25.

The market breadth, which was strong throughout the day, ended negative as small-cap and mid-cap stocks succumbed to selling pressure in late trade. On BSE 1322 shares declined as compared to 1312 that advanced. 89 remained unchanged.

Turnover was dull today. The total turnover on BSE amounted to Rs 3239 crore on BSE as compared to Rs 4,066.93 crore on Friday, 22 August 2008. NSE's futures & options (F&O) segment turnover was Rs 45,979.13 crore, which was higher than Rs 44,332.45 crore on Friday, 22 August 2008.

17 shares from the 30-member Sensex pack advanced with shares from interest rate sensitive sectors dominating gainers as sharp fall in oil price eased inflation concerns.

India's largest dedicated housing finance company in terms of revenue Housing Development Finance Corporation vaulted 3.30% to Rs 2356 on 1.90 lakh shares. It was the top gainer from Sensex pack.

Banking shares retraced from their early highs. India's largest private sector bank in terms of net profit ICICI Bank was up 1.47% to Rs 654, off day’s high of Rs 674.80. HDFC Bank, the country's second largest private sector bank in terms of net profit was up 1.21% to Rs 1209.20, off day’s high of Rs 1245. India's largest state-run bank by net profit State Bank of India was up 0.81% to Rs 1357.10, off day’s high of Rs 1391.35.

State-run banks rose. Canara Bank (up 1.35% to Rs 203.40), Bank of Baroda (up 3.60% to Rs 263.25), and Union Bank of India (up 2.25% to Rs 132), rose.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries slipped 1.05% at Rs 2222 on 5.28 lakh shares. The stock eased from day’s high of Rs 2284.

Frontline real estate developers DLF (up 2.06% to Rs 493.90) and Unitech (up 0.80% to Rs 160), advanced.

India’s top truck maker by sales, Tata Motors advanced 2.21% to Rs 435 despite protest by Trinamool Congress, demanding 400 acres of land taken for the Nano small-car project in Singur in Orissa to be returned to farmers.

Shares of frontline telecom service providers gained. India's second largest listed cellular services provider by sales Reliance Communications (RCom) gained 0.37% to Rs 407.25. The issue of RCom's interconnection with GSM operators was resolved last week.

India’s largest cellular services provider by sales Bharti Airtel gained 1% to Rs 814.90.

Oil exploration heavyweights declined. India’s largest state-run oil exploration firm Oil & natural Gas Corporation (ONGC) fell 0.67% to Rs 1009. As per reports, ONGC may not be able to acquire Russia-focused Imperial Energy Oil as the Indian firm has already exhausted its investment limit. Cairn India, a private sector oil exploration firm, lost 1.19% to Rs 244

Majority of IT pivotals gained after the rupee eased against the dollar today, 25 August 2008. Infosys Technologies (up 0.59% to Rs 1705), Satyam Computer Services (up 1.42% to Rs 391.90), and Wipro (up 0.14% to Rs 418.15), edged higher. However India’s largest software services exporter TCS fell 0.23% to Rs 816.50.

Weak rupee boosts margins of IT companies which derive a lion’s share of revenue from exports to US.

Grasim (up 1.35% to Rs 1955.05), ITC (up 0.93% to Rs 183.80), and ACC (up 0.22% to Rs 560), edged higher from the Sensex pack.

India’s largest dam builder by sales Jaiprakash Associates lost 3.44% to Rs 158.65 on 39.19 lakh shares. It was the top loser from Sensex pack.

Metal stocks declined on selling pressure. Tata Steel (down 2.25% to Rs 581), Sterlite Industries (down 1.64% to Rs 616.50), and Hindalco Industries (down 0.22% to Rs 134.25), declined.

India’s largest pharma company by sales, Ranbaxy Laboratories, fell 2.26% to Rs 511 on reports the purchase a controlling stake by Daiichi Sankyo, Japan's third-largest drugmaker, in the company, needs the approval of the Cabinet Committee on Economic Affairs because it exceeds Rs 600 crore.

Tata Power (down 2.89% to Rs 1020.35), Maruti Suzuki India (down 1.70% to Rs 621.10), and Bharat Heavy Electricals (down 1.34% to Rs 1693), edged lower from the Sensex pack.

Shares of state-run oil marketing companies rose boosted by the sharp fall in oil price on Friday, 22 August 2008. Hindustan Petroleum Corporation (up 3.48% to Rs 206.50), Bharat Petroleum Corporation (up 1.25% to Rs 296), and India Oil Corporation (up 1.75% to Rs 403.50), rose.

Vishal Information Technologies topped the turnover chart on BSE with turnover of Rs 196.90 crore followed by Reliance Capital (Rs 146.70 crore), Reliance Industries (Rs 119 crore), Reliance Natural Resources (Rs 114.70 crore) and Tata Steel (Rs 90.10 crore), in that order.

Reliance Natural Resources was the most traded counter on BSE clocking volumes of 1.20 crore shares followed by Vishal Information Technologies (62.60 lakh shares), Kashyap Technologies (59 lakh shares), Chambal Fertilisers (51.80 lakh shares) and Ispat Industries (50.80 lakh shares), in that order.

MM Forgings surged 6.91% to Rs 184 after the company said it has fixed 30 September 2008 as the record date for its 1:1 bonus issue. The company announced the record date during trading hours today, 25 August 2008.

Himalya International spurted 20% to Rs 26.30 after the company said it has formed an alliance with Bharti Wal-Mart retail chain as well as with its parent company Wal-Mart for selling food products in India. The company made this announcement after trading hours on Friday, 22 August 2008.

Gujarat Apollo Industries galloped 4.04% to Rs 182.90 after the company said its board has recommended issue of bonus shares in the ratio of 1:2. The company made this announcement during trading hours today, 25 August 2008.

Jet Airways (India) rose 1.34% to Rs 462 on reports the company is likely to merge its wholly-owned subsidiary JetLite with the company in the current fiscal.

Meanwhile, the meeting of the 45-member Nuclear Suppliers Group (NSG) on whether to lift a ban on nuclear trade with India ended inconclusively on Friday, 22 August 2008, after many countries raised conditions, leaving the future of the controversial Indo-US nuclear deal unclear. The next round of talks is now scheduled to take place in the first week of September 2008.

Asian markets, which opened before Indian markets, rebounded from a two-year low today, 25 August 2008. Key benchmark indices in China, Japan, Hong Kong, Taiwan, Singapore and South Korea were up by between 0.35% and 3.50%.

US markets surged on Friday, 22 August 2008 led by the financial sector on speculation that a purchase of Lehman Brothers would end the worst slump in financial shares since at least 1962. The Dow Jones industrial average jumped 197.85 points, or 1.73%, to 11,628.06. The Standard & Poor's 500 index rose 14.48 points, or 1.13%, to 1,292.20, and the Nasdaq Composite index rose 34.33 points, or 1.44%, to 2,414.71.

Ratings firm Standard & Poor's (S&) today launched the S&P India Select Index aimed at providing foreign funds tradable exposure to Indian equity markets. Stocks that have reached the maximum investment limit for foreign institutional investors (FII) have been excluded from the index to reflect lack of access to those scrips for such investors, S&P said.

A minimum market capitalisation of $500 million and a six-month average daily trading volume of $2 million are the key criteria for inclusion in the index. The index would be revised every April and October.