Sensex ends with small gains in volatile trade

Expiry of the near month October 2008 derivatives contracts caused high volatility on the bourses today. The market swung between positive and negative negative zone throughout the day with Sensex gaining 36.43 points or 0.4%. Gains in some Asian and European marekts supported domestic bourses.

Reliance Communications slumped 10.27% wheeras Hindalco Industries surged 18.24% ahead of their Q2 results due on Friday, 31 October 2008. The market breadth was weak, reflecting caution among investors after a recent setback in share prices.

Major Asian markets rose on hopes the Bank of Japan and the Federal Reserve will cut interest rates this week to spur growth, and as credit markets continued to show signs of recovery. Key benchmark indices in Japan and Taiwan were up by between 0.15% to 7.74%. However, Key benchmark indices in China, Hong Kong, Singapore and South Korea were down between 0.97% to 3.02%.

Key European markets also rose on Fed rate cut expectations. Key benchmark indices in France and UK were up by between 4.88% to 6.42%. However, Germany’s DAX fell 0.56%. The Fed is seen cutting interest rates at a two-day policy meet that concludes today, 29 October 2008.

The BSE 30-share Sensex gained 36.43 points or 0.4% to 9.044.51. The Sensex jumped 289.68 points at the day's high of 9.297.76 in early trade. The Sensex fell 113.74 points at day’s low of 8,894.34 in mid-morning trade.

The S&P CNX Nifty was up 12.45 points or 0.46% to 2,697.05.

The BSE clocked a turnover of Rs 3,091 crore today, 29 October 2008 compared to a turnover of Rs 3388.65 on Monday, 27 October 2008.

Nifty November 2008 futures were at 2738, at a premium of 40.95 points as compared to spot closing of 2697.05. NSE's futures & options (F&O) segment turnover was Rs 54223.24 crore, which was higher than Rs 46002.30 crore on Monday, 27 October 2008.

Most of the derivatives positions are normally rolled over at the time of expiry of near month contracts. This is done by closing the derivative position for the near month and taking a similar position in the subsequent's month's series.

There has been a massive erosion in investors' wealth this year. The barometer index is down 11,242.48 points or 55.41% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 12,162.26 points or 57.35% below its all-time high of 21,206.77 struck on 10 January 2008.

The BSE Mid-Cap index was down 1.99% at 3,094.48. The BSE Small-Cap index was down 1% at 3,674.61. Both the indices underperformed the Sensex.

The BSE Metal index (up 6.52% to 4,870.87), the BSE Oil & Gas index (up 2.78% to 5,678.33), the BSE Auto index (up 1.63% to 2,524.20), the BSE Consumer Durables index (up 1.46% to 2,027.42), the BSE PSU index (up 0.86% to 4,443.35) outperformed the Sensex.

The BSE Realty index (down 3.24% to 1,933.24), the BSE HealthCare index (down 3.23% to 2,691.72), the BSE FMCG index (down 2.35% to 1,742.07), the BSE Capital Goods index (down 1.48% to 6,683.71), the BSE Bankex (down 0.64% to 4,674.34), the BSE Teck index (down 0.56% to 2,027.62), the BSE Power index (down 0.03% to 1,500.24), and the BSE IT index (up 0.37% to 2,705.77) underperformed the Sensex.

The market breadth was weak. On BSE, 1104 shares advanced as compared to 1319 that declined. 75 shares remained unchanged.

India’s largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) jumped 4.47% to Rs 1,204.40 on shutting down polypropylene plant at the Jamnagar refinery complex with the objective of improving product swing capability and increasing propylene yield. The shutdown is expected to last for approximately four weeks.

ACC (up 6.93% to Rs 473.70), Tata Power Company (up 4.33% to Rs 616.552), Jaiprakash Associates (up 3.53% to Rs 61.65), were the major gainers from the Sensex pack.

India’s largest oil exploration firm by revenue ONGC rose 0.88% ahead of Q2 September 2008 result to be announced today.

DLF (down 6.98% to Rs 202.45), Ranbaxy Laboratories (down 9.62% to Rs 172.85), Hindustan Unilever (down 4.74% to Rs 208.20) were the major losers from the Sensex pack.

Reliance Communications slumped 10.24% ahead of its Q2 results due on Friday, 31 October 2008.

Auto stocks rose after Mahindra & Mahindra (M&M), India's largest tractor maker by sales, said the demand for its products remains healthy despite fears of a global recession. M&M rose 8.25%, despite 20.6% fall in net profit to Rs 226.77 crore on 13.25% rise in total income to Rs 3252.26 crore in Q2 September 2008 over Q2 September 2007. Hero Honda Motors, Tata Motors rose by between 1.45% to 3.74%. India’s largest car maker by sales Maruti Suzuki India fell 1.17%.

Metal stocks rose on rebound in metal prices triggered by strong rally in global stocks. The BSE Metal index gained 6.52% and was the biggest gainer from the sectoral indices on BSE. Tata Steel, Sterlite Industries, Hindustan Zinc rose between 3.35% to 15.13%.

India’s largest aluminum maker by sales Hindalco Industries surged 18.24% ahead of Q2 September 2008 result due on riday 31 October 2008.

India’s second largest aluminum producer by sales National Aluminum Company dipped 1.85%, ahead of Q2 September 2008 result to be announced today.

Banking stocks were mixed despite overnight spurt in American depository receipts (ADRs). India’s second largest private sector bank by net profit HDFC Bank fell 1.98%. HDFC Bank ADR ended up 16.17%. India’s largest private sector bank by net profit ICICI Bank gained 3.19%, as ADR rose 18.96%. India’s largest commercial bank State Bank of India slipped 2.01%.

IT stocks were mixed as a strong rupee offset rally in ADRs. India's third largest IT exporter by sales Satyam Computer Services fell 5.44%, even as ADR rose 16.83%, India's fourth largest IT exporter by sales Wipro rose 7.33%, as ADR jumped 22.84%. India's second largest IT exporter by sales Infosys gained 1.82%, as ADR jumped 15.55%. India's largest IT exporter by sales Tata Consultancy Services jumped 0.37%.

India's rupee rose for a second day as local stocks extended their best gains in two weeks made yesterday on optimism measures by governments worldwide will ease the global credit crunch. The rupee rose 0.1 % to 49.8325 per dollar from 49.8575 on 27 October.

Hindalco Industries clocked the highest volume of 2.18 crore shares on BSE. Unitech (1.6 crore shares), Suzlon Energy (1.04 crore shares), IFCI (76.93 lakh shares) and Reliance Natural Resources (65.70 lakh shares) were the other volume toppers in that order.

Reliance Industries clocked the highest turnover of Rs 276.50 crore on BSE. Educomp Solutions (Rs 172.30 crore), Reliance Capital (Rs 138.42 crore), HDFC (Rs 108.84 crore) and Hindalco Industries (Rs 107.81 crore) were the other turnover toppers in that order.

Tata Tea lost 7.42% on reports it may cut tea prices.

Sical Logistics declined 2.16% after the company reported a net loss of Rs 41.93 crore in Q2 September 2008 as compared to net profit of Rs 9.39 crore in Q2 September 2007.

Fortis Healthcare rose 4.09% on reporting net profit of Rs 10.06 crore in Q2 September 2008 as compared to net loss of Rs 15.23 crore in Q2 September 2007.

Unitech advanced 1.43% on entering into a deal to sell a majority stake in telecom unit.

Readymade garments maker Gokaldas Exports surged 20% on reports of Anand Jain, a close confidante of Reliance Industries, picking up close to 10% stake in the firm.