Sensex settles above 9,400 level; Spice Communications spurts

Fresh build-up of derivative positions on day one of February 2009 series propelled key benchmark indices after a shaky start. Derivative contracts for January 2009 series expired yesterday, 29 January 2009 with healthy rollovers. Shares from oil & gas, metal and realty sectors were in forefront of the rally. The BSE 30-share Sensex surged 187.96 points, or 2.04%. Spice Communications was the start of the day's trading session, galloping over 80% on high volumes.

Weak global cues on the back of poor global economic economic data and recent selling by the foreign institutional investors had triggered a subdued start. Indices recovered thereafter as index pivotals staged a rebound to the positive zone in early afternoon trade. Firm European indices and data showing the Dow could rise 35 points at the opening bell triggered a solid rally in late trade.

Futures & options contracts for January 2009 series expired on Thursday, 29 January 2009. Rollover of positions was more or less in line with that in the previous series. As per reports, rollover of Nifty positions from January 2009 series to February 2009 series was 66%, from 66.50% during previous series. Marketwide rollover of positions was 75%, from 76% earlier.

European shares led by pharma stocks, and ahead of unemployment figures out of Europe and GDP data from the United States. Key benchmark indices in France, UK and Germany were up by between 0.51% to 0.69%.

Asian markets though in the red, recovered from early lows, today 30 January 2009. Record crash in Japanese production and lower profit forecasts fueled anxiety among investors that the global recession is expanding in early trade. Key benchmark indices in Japan, Singapore and South Korea fell by between 0.38% to 3.12%. However, Hong Kong's Hang Seng rose 0.94%.

US stocks slumped on Thursday, 29 January 2009, after weaker than expected jobless claims, new home sales and manufactured goods` orders and amid concerns over company earnings. The Dow Jones industrial average declined 226.44 points, or 2.70%, to end at 8,149.01. The Standard & Poor`s 500 index slipped 28.95 points, or 3.31%, to settle at 845. The Nasdaq Composite index fell 50.50 points, or 3.24%, to 1,507.84.

US initial jobless claims surged to a record, rising by 3,000 last week to 588,000. Also the US Durable-goods orders edged lower for the fifth consecutive month; declining 2.6% in December 2008. US new-home sales fell to an all-time low; tumbling 14.7% to 331,000 annual rate, the slowest pace on record. Japan's factory output slumped 9.6% in December 2009.

Foreign institutional investors (FIIs) are in selling mode after an inflow of Rs 1319.10 crore in December 2008. Their outflow in January 2009 totaled Rs 4508.80 crore (till 28 January 2009).

The BSE 30-share Sensex was up 187.96 points, or 2.04%, to 9,424.24. At the day's high of 9,438.31 the Sensex gained 202.03 points in late trade. The Sensex fell 148.92 points at the day's low of 9,087.36 in early trade.

The S&P CNX Nifty rose 50.85 points, or 1.8%, to 2,874.80.

The BSE clocked a turnover of Rs 3,589 crore today lower compared to a turnover of Rs 3,825 crore on Thursday, 29 January 2009.

Nifty February 2009 futures were at 2871, at a discount of 3.80 points as compared to the spot closing of 2874.80. Turnover in NSE's futures & options (F&O) segment was Rs 34,242.93 crore much lower than Rs 51,659.61 crore on Thursday, 29 January 2009.

Sectoral indices on BSE displayed mixed trend. The BSE Realty index (up 4.32%), the BSE Metal index (up 4.05%), the BSE Oil & Gas index (up 3.58%), outperformed the Sensex.

The BSE FMCG index (up 2.04%) matched the performance of Sensex.

The BSE HealthCare index (down 0.5%), the BSE Power index (up 0.22%), the BSE IT index (up 0.34%), the BSE Teck index (up 0.92%), the BSE Consumer Durables index (up 0.96%), the BSE Auto index (up 1.09%), the BSE PSU index (up 1.27%), the BSE Capital Goods index (up 1.76%), the BSE Bankex (up 1.99%), underperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive on BSE with 1,382 shares advancing as compared with 1,029 that declined. 64 shares remained unchanged. The breadth was weak in early trade.

Among the 30-share Sensex pack, 25 advanced while the rest slipped.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 4.51% to Rs 1,325.20 boosted by reports the Bombay High Court has in its interim order lifted stay on sale of RIL gas till the final order. Further the High Court added the gas has be sold at $4.2 mmbtu as per government utilisation, triggering a solid spurt in the stock from early low of Rs 1242.05.

Shares of other two firms involved in the gas tussle saw mixed trend. RNRL rose 4.58% whereas NTPC slipped 0.24%

India's largest oil exploration firm by revenue ONGC jumped 2.98%.

Oil was steady under $42 a barrel on Friday, after falling nearly 2% overnight, weighed down by another round of grim U.S. economic data reflecting faltering demand in the world's top energy consumer. U.S. crude was up 27 cents a barrel at $41.71, off an intraday low of $41.31 today.

FMCG stocks, rose on defensive buying. Nestle India, Britannia Industries, Hindustan Unilever, ITC, Dabur India, United Spirits rose by between 1.81% to 12.62%.

Rate sensitive realty stocks rose on hopes lower rates will spur housing demand. DLF, Indiabulls Real Estate, HDIL, Unitech fell by between 3.04% to 7.39%.

Metal stocks rose. Jindal Steel, Tata Steel, SAIL, Hindusten Zinc and Sterlite Industries rose by between 0.74% to 6.51%. Hindalco Industries rose 6.51% after its net profit remained flat in Q3 December 2008 over Q3 December 2007.

Banking stocks rose as fears of rising defaults in a weakening economy and on fall in American Depository Receipts (ADRs) offset hopes a further fall in interest rates may boost lending growth. India's second largest private sector bank by net profit HDFC Bank rose 0.31% even as its American depository receipt (ADR) fell 6.15% on Thursday, 29 January 2009.

India's largest bank in terms of assets and branch network State Bank of India rose 5.05%. Its net profit rose 37.03% to Rs 2478.42 crore on 38.3% rise in total operating income to Rs 21,255.90 crore in Q3 December 2008 over Q3 December 2007. The bank announced the result on 24 January 2008.

India's largest private sector bank by net profit ICICI Bank rose 1.93% even as its ADR fell 6.3% overnight. Net profit of ICICI Bank rose 3.41% to Rs 1272.15 crore on 0.1% rise in total operating income to Rs 10,350.62 crore in Q3 December 2008 over Q3 December 2007. The unexpected rise in net profit was because earnings from fees and bond trading offset slowing credit growth and rise in bad loans. The bank announced the result on Saturday, 24 January 2008.

India's largest dedicated housing finance company
by total income HDFC rose 0.46%.

Punjab National Bank rose 2.59% after its net profit nearly doubled in Q3 December 2008.

IT stocks rose. India's third largest software services exporter, Wipro rose 2.01% even as its American depository receipt (ADR) fell 4.37% on Thursday, 29 January 2009. The company forecasted a 7% fall in revenue for Q4 March 2009 on global economic downturn and pricing pressure from western clients, at the time of declaring results before market hours on 21 January 2009.

India's second largest software services exporter Infosys Technologies slipped 0.32% as its ADR fell 2.07% overnight.

While, India's fifth largest IT exporter by sales HCL Technologies rose 5.41% .Its net profit rose 56.82% to Rs 398.01 crore on 10.97% rise in sales to Rs 1,304.85 crore in Q2 December 2008 over Q1 September 2008.

TCS, India's largest software services exporter by sales rose 0.58%.

India's largest engineering and construction firm, Larsen & Toubro rose 4.38% after its quarterly net profit more than trebled, boosted by a one-time gain. The profit included an extraordinary gain of Rs 916 crore from sale ready-mix concrete business.

India's largest electric equipment maker by sales Bharat Heavy Electricals slumped 2.6%. Its net profit rose 2.4% to Rs 790.56 crore on a 21.3% increase in sales to Rs 6022.25 crore in Q3 December 2008 over Q3 December 2007.The company announced the result after the market hours on yesterday.

Auto shares were mixed on hopes lower interest rates and fall in fuel prices would spur demand for vehicles which is mainly driven by finance. Maruti Suzuki India and M&M rose by between 1.61% to 4.81%.

India's largest commercial vehicle maker by sales Tata Motors fell 0.6% ahead of its Q3 December 2008 result today.

India's largest pharma company by market capitalization Sun Pharmaceuticals Industries slumped 6.1% ahead of its Q3 December 2008 result today.

Spice Communications surged 81.21% to Rs 47.74 on high volumes of 90.23 lakh shares.

Balrampur Chini rose 9.02% after it reported a net profit of Rs 51.29 crore in Q1 December 2008 compared to a net loss of Rs 0.06 crore in Q1 December 2007.

Adani Enterprises fell 1.56% after its net profit fell 54% in Q3 December 2008 over Q3 December 2007.

Ceat rose 2.83% on reports it will post a profit in the Jan-March 2009 period after three consecutive quarters of losses as input prices soften.

Satyam Computer Services clocked the highest volume of 3.73 crore shares on BSE. Unitech (2.24 crore shares), Suzlon Energy (1.83 crore shares), Reliance Natural Resources (1.39 crore shares) and Jaiprakash Associates (1.11 crore shares) were the other volume toppers in that order.

Reliance Industries clocked the highest turnover of Rs 290.75 crore on BSE. United Spirits (Rs 193.49 crore), Satyam Computer Services (Rs 192.41 crore), Reliance Infrastructure (Rs 144.99 crore) and State Bank of India (Rs 130.91 crore) were the other turnover toppers in that order.