Market ends higher in choppy trade

Key benchmark indices staged a late comeback after struggling in the red for a major part of the day, boosted by fall in crude oil prices and higher US stock futures. Banking and auto shares recovered sharply from early lows. Volatility was high throughout the day. The barometer index BSE Sensex saw wild swings above and below the 15,000 mark. The market breadth was negative. European shares edged higher while Asian markets were trading mixed.

US stock futures hinted higher opening on Wall Street. The Dow Jones futures are up 0.3% while Nasdaq futures are up 0.4%. US light crude slumped $2.06 to $117.96 a barrel today, 8 August 2008, as supply concerns eased after an indication that a key oil pipeline through Turkey, still burning after an explosion, may come back on line earlier than some previous expectations.

India's inflation, represented by the wholesale price index (WPI), rose 12.01% in the year to 26 July 2008, slightly above the previous week’s 11.98% rise. The reading was the highest in the last 13 years. The figure was released after market hours yesterday, 7 August 2008.

Science and Technology Minister Kapil Sibal today, 8 August 2008, said the June-September monsoon rains have revived across the country and are expected to be normal.

The BSE 30-share Sensex was up 50.57 points or 0.33% at 15,167.82. It opened 80.68 points lower at 15,036.57 and slipped further to hit an intra-day low of 14,888.12 in early afternoon trade. At the day’s low, the Sensex lost 229.13 points. At the day’s high of 15,228.82 struck in mid-afternoon trade, the Sensex 111.57 gained points.

The S&P CNX Nifty was up 5.65 points or 0.12% at 4529.50. Nifty August 2008 futures were at 4549, at a premium of 19.50 points as compared to spot closing.

As per provisional data released by the stock exchanges after trading hours, foreign funds today, 8 August 2008, sold shares worth a net Rs 142.22 crore. Domestic funds bought shares worth a net Rs 16.29 crore.

The BSE Sensex is down 5,119.17 points or 25.23% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6038.95 points or 28.47% away from its all-time high of 21,206.77 struck on 10 January 2008.

Sentiment may remain cautious in the forthcoming week, as the market regulator Securities & Exchange Board of India (Sebi) meets on 13 August 2008 to review the rules relating to issuance of Participatory Notes (PNs) by foreign portfolio investors, which it had revised in October 2007. A review of securities lending & borrowing mechanism, know your client (KYC) norms for FIIs and status on launch of currency futures are likely to be discussed in the meeting.

The market breadth was negative on BSE with 1409 shares declining as compared to 1306 that advanced. 67 remained unchanged.

The BSE Mid-Cap index was up 0.09% to 5,886.97 and the BSE Small-Cap index was up 0.21% to 7,181.74.

The total turnover on BSE amounted to Rs 5375 crore as compared to Rs 5691 crore yesterday, 7 August 2008. NSE’s futures & options turnover amounted to Rs 47,120.45 crore as compared to Rs 49,917.63 crore yesterday, 7 August 2008.

Among the 30-member Sensex pack, 17 declined while the rest advanced.

Banking and auto shares rebounded sharply from early lows. ICICI Bank (up 2.80% to Rs 728.35, off day’s low of Rs 683.10), and HDFC Bank (up 1.54% to Rs 1273, off day’s low of Rs 1225), advanced.

India’s largest state-run bank in terms of net profit State Bank of India fell marginally by 0.07% to Rs 1523. The stock came sharply off the day’s low of Rs 1477.40.

Fall in crude oil prices fuelled rally in auto stocks from day’s low. India's top truck maker by sales, Tata Motors recovered from day's low of Rs 427. It ended 0.21% lower at Rs 443.25. Mahindra & Mahindra, the nation's top tractor maker by sales ended 0.68% lower at Rs 572.05 after hitting day's low of Rs 551.10.

India’s top small car maker by sales Maruti Suzuki India rose 1.26% to Rs 677, after sliding to day’s day’s low of Rs 655.05.

Oil and Natural Gas Corporation (ONGC), the country’s largest oil exploration company by market capitalisation surged 4.21% to Rs 1066.20. It was the top gainer from the Sensex pack. The company reportedly plans to scale up its gas production in Tripura and has revised the project cost to Rs 4376 crore from Rs 1817 crore.

India’s third largest pharma company by sales, Cipla advanced 3.19% to Rs 234.70. As per reports the hearing in the Delhi High Court between Cipla and Swiss drug maker Roche has been adjourned to 11 August 2008. Roche had dragged Cipla to court due to patent infringement of Roche’s HIV/AIDS drug Valcyte by Cipla.

Capital goods heavyweights, Larsen & Toubro (up 3.02% to Rs 2841.05), and Bharat Heavy Electricals (up 0.30% to Rs 1780), gained.

India's largest private sector steelmaker by sales, Tata Steel gained 1.16% to Rs 650.25 after three straight days of fall. Top steel producers have decided not to raise steel prices even as the three month moratorium with the government on price freeze ended on 7 August 2008

Hindalco (up 2.04% to Rs 144.90), HDFC (up 1.35% to Rs 2510), and NTPC (up 0.60% to Rs 184.55), edged higher from Sensex pack.

India's largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) was down 1.29% at Rs 2242 on 9.34 lakh shares. The stock recovered from day’s low of Rs 2230. Reliance Natural Resources (RNRL) gained 3.82% to Rs 104.75.

As per reports, the Bombay High Court (HC) has once again postponed hearing on the RIL-RNRL case till 12 August 2008. The court will decide in its next hearing whether the government can intervene in this case at this stage. The government had filed a petition in the HC to become a party to the case, supporting RIL.

Cement counters slipped on selling pressure. North India’s largest cement producer Ambuja Cements lost 3.66% to Rs 86.85 on 4.77 lakh shares. It was the top loser from the Sensex pack.

Other cement counters, Grasim (down 2.65% to Rs 2034), and ACC (down 1.89% to Rs 627), declined.

India’s largest cigarette maker in terms of sales ITC was down 0.63% to Rs 190.50 on reports the company may hike prices of some of its premium brands by end-August 2008.

Frontline telecom shares slipped. Bharti Airtel, the nation’s top mobile operator by revenue lost 1.18% to Rs 840.15. The company yesterday, 6 August 2008, said it would launch Apple Inc's third-generation iPhone in India on 22 August 2008.

India’s number two cellular services provider in terms of market capitalisation Reliance Communications (RCom) was down 0.07% to Rs 438.25. According to recent reports, the company is all set to float a $500-million tender for GSM 3G networks. At present, RCom is predominantly a CDMA-based operator which is now looking at 3G services only in the GSM space.

IT pivotals were under selling pressure. Wipro (down 2.68% to Rs 436.50), TCS (down 1.10% to Rs 842.05), Satyam Computer Services (down 2.03% to Rs 408.10), and Infosys (down 2.78% to Rs 1673.55), edged lower.

Interest rate sensitive realty shares declined. DLF (down 0.91% to Rs 549.80), Parsvnath Developers (down 1.49% to Rs 126.50), Unitech (down 1.39% to Rs 176.90), fell from the realty space.

Ranbaxy (down 0.14% to Rs 503.25), and Jaiprakash Associates (down 2% to Rs 183.65), and edged lower from the Sensex pack.

Reliance Capital topped turnover charts on BSE notching turnover of Rs 346.35 crore followed by Reliance Natural Resources (Rs 293.50 crore), Reliance Industries (Rs 211 crore), ICICI Bank (Rs 193.80 crore) and Larsen & Toubro (Rs 178.40 crore), in that order.

Reliance Natural Resources was the volume topper clocking volumes of 2.90 crore shares followed by Chambal Fertilisers & Chemicals (1.62 crore shares), Nagarjuna Fertilisers (1.35 crore shares), Ispat Industries (1.05 crore shares) and IFCI (88.70 lakh shares), in that order.

Fertilizer shares edged higher on reports the government approved the investment policy for urea, linking cost of production to the import parity price, a key demand of the industry.

National Fertilizer (up 5% at Rs 60.45), Rastriya Chemical & Fertilizer (up 2.08% at Rs 68.70), Nagarjuna Fertilizers & Chemicals (up 3.22% at Rs 41.65), Chambal Fertilizers & Chemicals (up 2.65% at Rs 81.50), and Tata Chemicals (up 7.46% at Rs 350), spurted.

Among side counters, Noida Toll Bridge (up 14.40% to Rs 42.90), Zuari Industries (up 20% to Rs 327.70), and MRO Teck (up 20% to Rs 61), surged.

Josts Engineering (down 11.40% to Rs 264.90), Hester Pharma (down 10.26% to Rs 105), and Man Aluminium (down 9.88% to Rs 34.20), slipped.

Shares of state-run oil marketing companies slipped. Hindustan Petroleum Corporation (down 3.5% to Rs 229.60), Bharat Petroleum Corporation (down 3.25% to Rs 318.30), and Indian Oil Corporation (down 2.32% to Rs 432.50), slipped.

Financial Technologies (India) jumped 2.53% to Rs 1405 on reports its subsidiary, the Multi Commodity Exchange, has sought regulatory nod for trading in currency futures. Financial Technologies holds 32% in the Multi Commodity Exchange (MCX).

SEL Manufacturing Company plunged 20% to Rs 500.90 even as the company received an export order for supplying 1.1 million pieces of readymade garments to a Russian customer. The company made this announcement during trading hours today, 8 August 2008.

Cairn India slipped 5.31% to Rs 232.50 on reports the government could impose a special tax on oil firms' incremental revenues beyond $75 per barrel as part of the subsidy-sharing regime of the oil sector.

Shanthi Gears surged 9.27% to Rs 73.65 on reports Suzlon Energy, through its Belgium-based unit, is planning to buy 50% and 100% stake in Shanthi Gears at around a 30% premium to the market price.

Housing Development & Infrastructure rose 2.84% to Rs 495.40 after the Reserve Bank of India on Thursday, 7 August 2008, raised foreign institutional investors limit in the company to 100%.

European markets, which opened after Indian market, edged higher. Key benchmark indices in France, UK and Germany were up by between 0.13% and 0.58%.

Asian markets were trading mixed today, 8 August 2008. Key benchmark indices in Taiwan, Japan, and South Korea were up by between 0.30% and 2.63%. However indices in China, Hong Kong and Singapore were down 0.69% and 4.47% respectively.

US stocks declined yesterday, 7 August 2008, after American International Group (AIG) posted its third consecutive quarterly loss of more than $5 billion, which fueled fears of more fallout from the credit crisis. Wal-Mart's cautious sales forecast added to concerns about consumer spending.

The Dow Jones Industrial Average slumped 224.64 points, or 1.93% to 11,431.43, the Standard & Poor's 500 index fell 23.11 points, or 1.79% to 1,266.08, while the Nasdaq Composite index dropped 22.64 points, or 0.95% to 2,355.73.

The European Central Bank and the Bank of England both left their benchmark interest rates unchanged at 4.25% and 5% respectively in a meeting yesterday, 7 August 2008, as they ponder how best to steer their economies between the shoals of mounting inflation and slowing growth.