Sensex settles above 15,100 in volatile trade

Key benchmark indices ended with marginal gains after swinging wildly. The market breadth was just about positive. Turnover on BSE remained dull. European markets recovered after weak start. Asian markets were trading mixed.

The Bank of England left interest rate unchanged at 5% at its meeting today, 7 August 2008. The European Central Bank which also meets today is expected to hold interest rates at 4.25%.

The Indian government will release the weekly inflation data today, 7 August 2008, evening. Inflation measured by wholesale price index is forecast to have risen 12.02% in the 12 months to 26 July 2008, up from previous week’s rise of 11.98%.

Foreign institutional investors were net equity sellers worth Rs 223.19 crore while mutual funds purchased shares worth Rs 24.10 crore today, 7 August 2008, according to provisional data on NSE.

The BSE 30-share Sensex rose 43.71 points or 0.29% at 15,117.25. At the day’s high of 15,280.06 struck in mid-afternoon trade, the Sensex gained 206.52 points. Sensex opened 41.68 points lower at 15,031.86 and slipped further to hit an intra-day low of 14,992.97 in early trade. At the day’s low, the Sensex lost 80.57 points.

The S&P CNX Nifty was up 6.30 points or 0.14% at 4523.85. Nifty August 2008 futures were at 4530.75, a premium of 6.9 points over spot closing.

The BSE Sensex is down 5,169.74 points or 25.48% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,089.52 points or 28.71% away from its all-time high of 21,206.77 struck on 10 January 2008.

The market breadth was just about positive on BSE with 1381 shares advancing as compared to 1262 that declined. 84 remained unchanged.

The BSE Mid-Cap index was up 0.45% to 5,881.60 and the BSE Small-Cap index gained 0.32% to 7,166.99. Both these indices outperformed the Sensex.

Turnover was dull today. The total turnover on BSE amounted to Rs 5,641 crore as compared to Rs 7,203 crore yesterday, 6 August 2008.

Sectoral indices on BSE displayed mixed trend. The BSE auto index (up 1.21% at 3967.03), BSE IT index (up 0.80% at 3954.87), BSE Realty index (up 0.69% at 5580.88), Bankex (up 0.66% at 7283.15), BSE FMCG index (up 0.53% at 2191.05), BSE Oil & Gas index (down 0.34% at 10153.07), BSE Consumer Durables (up 2.86% to 3,977.97), outperformed the Sensex.

The BSE Metal index (up 0.21% at 12885.97), BSE Healthcare (up 0.28% at 4269.87), BSE Capital goods (down 0.70% at 12394.90), BSE Power index (down 0.47% at 2686.46), BSE TecK (down 0.10% to 3,123.98), BSE PSU (down 0.36% to 7,025.66), underperformed the Sensex.

Among the 30-member Sensex pack, 20 advanced while the rest slipped.

Auto shares advanced for the third straight day and dominated Sensex gainers. India’s top truck maker in terms of sales, Tata Motors surged 4.28% to Rs 445 on 2.84 lakh shares. It was the top gainer from the Sensex pack.

Maruti Suzuki India (up 2.33% to Rs 668), and Mahindra & Mahindra (up 2.14% to Rs 574.05), also logged gains from auto pack.

Frontline banking shares were firm ahead of inflation data. HDFC Bank (up 3.25% to Rs 1256.25), State Bank of India (up 0.10% to Rs 1525), and ICICI Bank (up 0.74% to Rs 712), gained.

Cement shares rose despite recent reports that they could find it difficult to raise prices when the moratorium on price freeze ends on 14 August 2008. Ambuja Cements (up 1.93% to Rs 90), Grasim (up 1.52% to Rs 2069.60), and ACC (up 0.09% to Rs 638.20), edged higher from the cement pack. In May 2008, cement firms had agreed to hold prices for three months to help the government contain skyrocketing inflation.

India’s largest dedicated housing finance company in terms of revenue Housing Development Finance Corporation vaulted 3.36% to Rs 2476.40 on reports the company is in talks with GE Money to buy the latter's Indian home loan business.

Real estate stocks advanced on fresh buying. DLF (up 2.28% to Rs 557), Parsvnath Developers (up 3.78% to Rs 129.20), Omaxe (up 3.51% to Rs 138.60), and Unitech (up 1.27% to Rs 179.40), logged gains from the realty space.

IT pivotals were mixed. Wipro (down 1.63% to Rs 446.20), and TCS (down 1.56% to Rs 845.05), slipped.

India’s fourth largest software services exporter Satyam Computer Services advanced 2.23% to Rs 416.50. As per recent reports, the company is pursuing 15-20 deals of over $50 million each and is eyeing buyouts in the Asia Pacific, US, and European continents.

India’s second largest software services exporter Infosys gained 1.29% to Rs 1720.20

Oil and Natural Gas Corporation (ONGC), the country’s largest oil exploration company by market capitalisation gained 0.40% to Rs 1020. 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.

NTPC (up 1.66% to Rs 183.25), and Jaiprakash Associates (up 1.55% to Rs 188), edged higher from the Sensex pack.

India’s largest power equipment maker by sales, Bharat Heavy Electricals lost 3.53% to Rs 1763 on reports the government blamed the company for delaying the projects causing acute shortage of electricity in various parts of the country.

India’s largest pharma company in terms of sales Ranbaxy Laboratories fell 1.28% to Rs 506. The government gave its approval to Daiichi Sankyo’s proposed acquisition of shares in the company. It was the top loser from Sensex pack.

Frontline telecom shares slipped. Bharti Airtel, the nation’s top mobile operator by revenue lost 1.46% to Rs 857. 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 1.71% to Rs 438.65. 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.

India's largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) was down 1.45% at Rs 2262.50 on 10.30 lakh shares. The stock moved in a range of Rs 2315.25 and Rs 2248.60 so in the day. However, Reliance Natural Resources (RNRL) was up 0.70% to Rs 100.95.

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.

India’s largest private sector steelmaker by sales, Tata Steel fell 0.54% to Rs 642.15 on reports top steel producers have decided not to raise steel prices even as the three month moratorium with the government on price freeze ends today, 7 August 2008.

Hindustan Unilever (down 1.45% to Rs 242.15), and Larsen & Toubro (down 0.34% to Rs 2754), edged lower from the Sensex pack.

Reliance Capital topped turnover charts on BSE clocking turnover of Rs 342.50 crore followed by Reliance Natural Resources (Rs 296 crore), Reliance Industries (Rs 235.80 crore), SEL Manufacturing (Rs 228 crore) and ONGC (Rs 137.80 crore) in that order.

Reliance Natural Resources topped volumes chart on BSE notching volumes of 2.92 crore shares followed by Ispat Industries (1.41 crore shares), Tata Teleservices (Maharashtra) (1.19 crore shares), Kashyap Technologies (88.30 lakh shares) and Chambal Fertilisers & Chemicals (86 lakh shares).

SEL Manufacturing saw heightened activity on high volumes. From the day’s low of Rs 530, the stock galloped to strike a day’s high of Rs 627.80. The stock settled with gain of 6.55% to Rs 609.70 on high volumes of 38.56 lakh shares.

Shiv Vani Oil & Gas Exploration Services jumped 5.16% to Rs 576 after the company said secured a contract worth Rs 1610 crore from Oil & Natural Gas Corporation to deploy eight onshore deep drilling rigs. The company made this announcement during trading hours today, 7 August 2008.

Dr Reddy’s Laboratories surged 4.02% to Rs 606.10 after the company said Dr Reddy’s Laboratories Holdings, a promoter group firm, acquired 1.95 lakh equity shares from

Elecon Engineering Company soared 9.76% to Rs 117.55 after the company said Emtici Engineering, a promoter, purchased 1.07 lakh equity shares on 16 July 2008 from open market. The company made this announcement after trading hours on Wednesday, 6 August 2008.

Ansal Properties & Infrastructure spurted 15.85% to Rs 105.60 after 9.8 lakh shares or 0.86% of the company’s equity changed hands in a block deal on BSE at Rs 92 each. open market for Rs 11.36 crore.

US crude rose 26 cents to $118.84 a barrel today, 7 August 2008. The contract is almost 20% off the record of $147.27 a barrel hit on 11 July 2008.

European markets, which opened after Indian market, edged higher. Key benchmark indices in UK, Germany and France were up by between 0.48% and 0.98%.

Asian markets, which opened before Indian market, were trading mixed today, 7 August 2008. Key benchmark indices in Japan, Taiwan Singapore, and South Korea were down by between 0.02% and 1.80%. However Hong Kong's Hang Seng index and China’s Shanghai Composite were up 0.70% and 0.30% respectively.

US stocks rose on Wednesday, building on the previous day's big gains, as a further drop in oil prices and a reassuring outlook from Cisco Systems overshadowed persistent credit concerns. The Dow Jones industrial average added 40.30 points, or 0.35%, to 11,656.07. The Nasdaq Composite index rose 28.54 points, or 1.21%, to 2,378.37.