Tuesday, April 15, 2008
The market witnessed a dramatic turnaround in early noon trades, as a change of guard from lower levels helped the index scale above 16,150 at close and clock gains of more than 340 points after the second session of the trading. The Sensex in the first half however traded exactly the opposite of what it did in the second half. It resumed 114 points lower at 15,694 and shed another 121 points to slip below the 15,600 mark and touch the day's low of 15,573 amid weak US and Asian markets. While the market languished in negative territory and was on a recovery mode thereafter, the index rolled back into green in noon trades and surged to an intra-day high of 16,249 on fresh buoyancy in heavyweights, IT, Technology and health care stocks. The Sensex finally signed off the session with gains of 2.19% or 346 points at 16,154, while the Nifty advanced 2.13% or 102 points to close at 4,880.
The market breadth was positive. Of the 2,709 stocks traded on the BSE (Bombay Stock Exchange), 1,789 stocks advanced, 872 stocks declined and 48 stocks ended unchanged. Out of 13 sectoral indices, all indices ended higher. The BSE IT index scaled up by 5.55% followed by the BSE Teck index (up 4.08%), the BSE HC index (up 3.32%) and the BSE CD index (up 2.78%). However, the BSE Auto and the BSE Metal index ended with marginal gains.
Heavyweights spurred the late rally and notched up significant gains. Ranbaxy Laboratories soared 8.62% at Rs481.80, TCS advanced 7.37% at Rs975.10, Infosys added 6.21% at Rs1,510.80, Reliance Communications scaled up 5.38% at Rs519.80, Wipro rose 4.52% at Rs424.65 and HUL jumped 4.36% at Rs245.40. Satyam Computer, DLF, NTPC, ONGC, ICICI Bank, RIL, Cipla and Jaiprakash Associates gained over 2% each. Among the laggards Hindalco dropped 1.59% at Rs173.55, HDFC Bank lost 0.95% at Rs1,315.25, Ambuja Cement declined by 0.89% at Rs116.55, HDFC was marginally down at Rs1,264 and ACC lost 0.24% at Rs810.65.
IT stocks registered strong gains in the late rally. Mphasis advanced 7.10% at Rs226.95, HCL Technology gained 6.78% at Rs245.80. Patni Computers, I-Flex, Tech Mahindra, Rolta India and NIIT were up over 3% each. Among the Teck stocks Zee News, HFCL, WWIL, Adlabs Films, Deecan, Aptech, flared up over 1.7% each.
Over 2.27 crore RNRL shares changed hands on the BSE followed by Orchid Chemical (1.65 crore shares), RPL (1.59 crore shares), Sita Shree Food Products (1.42 crore shares) and BL Kashyap (1.33 crore shares).
Orchid Chemicals was the most actively traded counter on the BSE with a turnover of Rs453 crore followed by RIL (Rs373 crore), RPL (Rs299 crore), RNRL (Rs233 crore) and Reliance Capital (Rs196 crore).
The battered stock market found a solace in IT bellwether Infosys Technologies' good future outlook. That triggered a broad-based rally in IT stocks. Healthcare and oil & gas stocks marched ahead as well. Ranbaxy Laboratories was the top gainer from the Sensex pack.
The 30-share BSE Sensex rose 346.02 points or 2.19% at 16,153.66. The index gained 441.82 points at session's high of 16,249.46, hit in mid-afternoon trade. The Sensex slipped 234.61 points at day's low of 15,573.03, hit in early trade.
The S&P CNX Nifty was up 101.85 points or 2.13% at 4879.65. Nifty April 2008 futures were at 4914.90, at a premium of 35.25 points as compared to spot closing of 4879.65.
The BSE Mid-Cap index underperformed the Sensex, gaining 1.24% at 6,604.42. The BSE Small-Cap index underperformed the Sensex, gaining 1.52% at 8,204.39.
The market breadth was strong: on BSE, 1784 stocks gained, 875 stocks declined and 50 stocks were unchanged.
BSE clocked a turnover of Rs 5827 crore as against the turover of Rs 5,586.86 crore on Friday, 11 April 2008.
The NSE's futures & options (F&O) segment turnover was Rs 46369.75 crore, which was higher than Rs 41003.92 crore on Friday, 11 April 2008.
India's second largest software exporter by sales Infosys Technologies rose 6.21% at Rs 1510.75. At the time of announcing Q4 March 2008 results, Infosys management today said there are significant growth opportunities for the company in the medium to long term. The company, however, may face short-term challenges due to global economic uncertainties. Another major booster for the counter was the company's announcement that it has decided to increase the dividend payout ratio to up to 30% of net profits from the current year from 20% thus far
Infosys has given guidance of a between 16.3% to 18.3% growth in earnings per share (EPS) to between Rs 92.32 to Rs 93.92 for the year ending March 2009 over the year ending March 2008. It has given guidance of a between 19.2% to 21.1% growth in revenue to between Rs 19894 crore to Rs 20214 crore for the year ending March 2009 over the year ending March 2008
As per US GAAP, Infosys has given guidance of a 16.7% to 18.7% growth in earnings per American Depository Shares at between $2.31 to $2.35 for the year ending March 2009 over the year ending March 2008. It has given guidance of a between 19% to 21% growth in revenue as per US GAAP to between $4.97 billion to $5.05 billion for the year ending March 2009 over the year ending March 2008
Infosys reported 1.46% rise in consolidated net profit to Rs 1249 crore on a 6.34% growth in revenue to Rs 4542 crore in Q4 March 2008 over Q3 December 2007.
Infosys’ strong outlook comes at a time when there has been a gloom surrounding India Inc’s earnings due to mark-to-market losses on forex derivatives, rise in input costs and due to concerns about delays in project execution for the capital goods sector.
A steep decline in the value of the US dollar against the Japanese Yen and the Swiss Franc hit Indian corporates which have used these two currencies (Yen and Franc) extensively to swap their rupee denominated debt. As per estimates by a domestic brokerage, the mark-to-market losses of corporate India under forex derivatives could be around $4 billion.
The BSE IT index outperformed the Sensex, gaining 5.55% to 3,862.48. TCS (up 7.37% at Rs 975.10), Mphasis (up 7.10% at Rs 226.95), HCL Technologies (up 6.78% at Rs 245.80), Wipro (up 4.52% at Rs 424.65), and Satyam Computer (up 4.35% at Rs 452.05), soared.
The BSE Healthcare index outperformed the Sensex, gaining 3.32% to 4,049.35. Orchid Chemicals & Pharmaceuticals (up 16.50% at Rs 288.10), Glenmark Pharmaceuticals (up 5.97% at Rs 533.80), Wockhardt (up 5.38% at Rs 299.90), Bilcare (up 4.81% at Rs 950.35) and Dr Reddy's Pharmaceuticals (up 4.22% at Rs 615.95), moved up.
India's largest drug maker by sales Ranbaxy Laboratories surged 8.62% to Rs 481.80 after the company said Anglo-Swedish drugmaker AstraZeneca had settled US patent litigation against the company over its top-selling drug, ulcer pill Nexium.
The BSE Oil & Gas index outperformed the Sensex, gaining 2.77% to 11,333.93. Essar Oil (up 8.65% at Rs 261.95), Reliance Natural Resources (up 6.61% at Rs 105.70), Reliance Petroleum (up 4.31% at Rs 189.80), BPCL (up 3.84% at Rs 408.50) and ONGC (up 2.45% at Rs 1,024.80), soared.
India's largest private sector firm by market capitalization and oil refiner Reliance Industries rose 2.30% at Rs 2608.80.
The BSE Bankex underperformed the Sensex, gaining 1.28% to 8,002.40. Kotak Mahindra Bank (up 5.97% at Rs 677), Union Bank (up 2.85% at Rs 155), Punjab National Bank (up 2.27% at Rs 519.45), Axis Bank (up 1.73% at Rs 774.90) and State Bank of India (up 0.55% at Rs 1,677.05), flared up.
India’s largest private sector bank by assets ICICI Bank rose 2.34% at Rs 806.90.
New age lender Yes Bank rose 3.39% at Rs 166.25 on reports the bank plans to raise $300 million (about Rs 1,200 crore) by December for its expansion plans.
Brokerage firm Motilal Oswal Financial Services soared 4% at Rs 683.80 after the firm said its board will meet on 21 April 2008 to consider the subdivision (split) of the equity shares of the company.
Automobile tyres maker JK Tyre & Industries spurted 4.34% at Rs 121.40 after the firm on Friday, 11 April 2008 announced the acquisition of a $200 million Mexican tyre-producing company Tornel for Rs 270 crore.
Anil Dhirubhai Ambani-controlled Reliance Power moved up 6.37% at Rs 384.35 after the Reserve Bank of India (RBI) reportedly approved a proposal by the company to raise $2 billion (about Rs 8,000 crore) for its Sasan ultra mega power project.
Bhagyanagar India, which makes non-ferrous metal products, surged 16.71% to Rs 45.75 after the company said it has scheduled a board meet on 22 April 2008 to consider buy back of equity shares.
Cement maker Grasim Industries rose 0.11% to Rs 2553.45 after the company said it has increased its stake from 25% to 45% in AV Cell Inc, a joint venture company in Canada for a total consideration of around Canadian dollar 6 million.
Orchid Chemicals & Pharmaceuticals clocked the highest turnover of Rs 453.41 crore on BSE. Reliance Industries (Rs 373.44 crore), Reliance Petroleum (Rs 299.24 crore), Reliance Natural Resources (Rs 233.98 crore) and Reliance Capital (Rs 196.31 crore), these were the turnover toppers on BSE in that order.
Reliance Natural Resources reported the highest volume of 2.27 crore shares on BSE. Orchid Chemicals & Pharmaceuticals (1.65 crore shares), Reliance Petroleum (1.59 crore shares), Sita Shree Food Products (1.42 crore shares) and Kaashyap Technologies (1.33 crore shares), these were the volume toppers on BSE in that order.
Asian markets, which were mixed earlier, were mostly in green. Key indices in China, Hong Kong, Japan, Singapore, and Taiwan were up by between 0.36% to 1.57%. However, South Korea's Seoul Composite index was down 0.26%. European markets, which opened higher, however, slipped into red after positive start. Key indices in Germany and France were down 0.04% to 0.12%. However, UK’s FTSE 100 was up 0.86%.
US markets slipped yesterday, 14 April 2008, after Wachovia declared an unexpected first quarter loss. On the other hand, a US government report declared better-than-expected growth in retail sales. The Dow Jones industrial average slipped 23.36 points, or 0.19%, to 12,302.06. The S&P 500 index was down 4.51 points, or 0.34%, to 1,328.32, and the Nasdaq Composite index dropped 14.42 points, or 0.63%, to 2,275.82. US markets had suffered sharp losses on Friday, 11 April 2008.
Besides concerns about corporate earnings, moderation in economic growth, prospects of further rise in interest rates and fears of funding crunch for some corporates amid credit crisis in the United States, spooked the Indian market in the past three months. Fears of redemption pressure for mutual funds following steep market fall looms large on the bourses.
Sensex has gained 1344.17 points or 9.07% from a low of 14,809.49 on 17 March 2008. It is off 5,053.11 points or 23.82% from a record high of 21206.77 hit on 10 January 2008.