Sensex ends almost unchanged

The market ended almost unchanged after seeing range-bound movement throughtout the day today, 14 August 2007. US stocks had also closed without much movement yesterday, 13 August 2007.

Asian indices were trading on a mixed note today, 14 August 2007. European indices were also trading mixed after opening lower today

Global markets, meanwhile, are watching with concern for cues from hedge funds. 15 August 2007 is the last day of the 45-day notice period required for investors to withdraw money from many hedge funds across the world for the current July-September 2007 quarter.

The BSE 30-share Sensex was down marginally by 0.77 points to 15,016.44, as per provisonal close. It had opened higher at 15,066.71 and climbed up to a high of 15,069.64. But from here, the index had started declining and touched a low of 14,946.66 at 13:12 IST. It recovered later from that low.

It oscillated in a narrow range of 105 points for the day

The S&P CNX Nifty rose 1.45 points to 4,375, as per provisonal close

The market breadth was strong on BSE with 1,580 shares advancing as compared to 1,113 that declined, while 88 remained unchanged.

Among the 30-member Sensex pack, 16 declined while the rest of them gained.

NTPC, the country’s largest power generation firm, rose 3.10% to Rs 173 on high volumes of 18.76 lakh shares. It was the top gainer from the Sensex pack. It struck an all-time high of Rs 176.80 in intra-day trade. Late last week, NSE decided to add NPTC in S&P CNX Nifty index in place of Dabur India from 24 September 2007.

State Bank of India (SBI), the country’s largest bank, moved up 0.10% to Rs 1614.70 on its plans to mop up nearly Rs 180000 crore over the next five years, including a Rs 14500-crore public offer this fiscal.

HDFC Bank (up 1.26% to Rs 1149.90), ONGC (up 1.99% to Rs 860) and Hindalco Industries (up 0.92% to Rs 153.90) were the other gainers from the Sensex pack.

India’s largest private sector company and oil refiner Reliance Industries (RIL) rose 0.45% to Rs 1837.10 on 4.47 lakh shares. It moved in a range of Rs 1815 and Rs 1842. As per reports RIL has received clearance from West Bengal's Food Processing and Horticulture department for its agri-retail business in the state.

ACC, the country’s second largest cement producer, slipped 2.40% to Rs 988 on 2.01 lakh shares. It was the top loser from the Sensex pack.

MNC associate FMCG giant Hindustan Unilever declined 1.55% to Rs 200.40 on profit booking after rallying 4% to Rs 203.50 yesterday, 13 August 2007. According to AC Nielsen's retail panel, HUL’s market share in the instant coffee market rose from 40.7% in the March 2007 to 47.4% in the June 2007 quarter. In fabric wash too, HUL's share in the June 2007 quarter went up to 37.8% from 36.4% in the preceding quarter. Also, HUL's share in shampoos increased from 46.9% to 47.5%.

HDFC (down 1.85% to Rs 1947) and Grasim (down 1.92% to Rs 2880.25) were the other losers from the Sensex pack.

Omnitech InfoSolutions was trading at Rs 164.55 on BSE, a premium of 56.71% over the IPO price of Rs 105. It listed at Rs 183.75 on BSE, and hit a low and high of Rs 155 and 183.75, respectively. About 89.92 lakh shares were traded on the counter on BSE. The company had fixed the issue price at the top end of the Rs 90-Rs 105 price band. Omnitech InfoSolutions IPO ended on 25 July 2007 with 61.84 times subscription.

Asian indices were mixed note today, 14 August 2007, after wavering around the previous session's closing levels during early trading. Nikkei 225 (up 0.27%), Shanghai Composite (up 1.09%), Singapore's Straits Times (up 0.18%), and Hang Seng (up 0.53%) gained

South Korea's Seoul Composite (down 1.70%) and Taiwan Weighted (down 0.31%), slipped.

US shares closed marginally lower yesterday, 13 August 2007. The Dow Jones industrial average fell 3.01 points, or 0.02%, to 13,236.53. Broader stock indicators were also down. The Standard & Poor's 500 index dropped 0.72 points, or 0.05%, to 1,452.92, and the Nasdaq Composite index retreated 2.65 points, or 0.10%, to 2,542.24.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 559.58 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 137.76 crore on Monday, 13 August 2007.

US crude oil was little changed on Tuesday, 14 August 2007, after managing a slight gain a day ago, supported by central bank cash injections into the global financial system and storms brewing in the Atlantic basin. US crude oil futures slipped 7 cents to $71.55 a barrel. London's Brent crude fell 8 cents to $70.15 a barrel.

Sensex ends below 13,000 on late selling

A sell-off gripped the market in late trading, and the Sensex plunged below the psychological 13,000 level. Index heavyweight Reliance Industries (RIL) dived and so did IT scrips, cement producers, banks and telecom shares.

The Sensex's provisional closing was 12,841.04, a fall of 318.51 points.

The market-breadth turned weak in late trading following the Sensex’s sharp fall from a strong breadth earlier during the day. Against 1,717 shares declining on BSE, 890 rose. Just 51 shares were unchanged. Losers outpaced gainers by a ratio of 1.9:1. At 11:30 IST the adv/dec ratio was over 2:1.

The BSE clocked a turnover of Rs 3993 crore.

Reliance Industries shrunk 4% to Rs 1312. A strong 13.8 lakh shares changed hands in the counter on BSE. RIL has a 11.3% weightage in Sensex. The company today called a board meeting on 10 March 2007, to consider the payment of interim dividend for FY 2007 (year ending 31 March 2007). The company has also set 22 March 2007, as a record date for paying interim dividend. The company’s announcement comes after the finance minister raised dividend distribution tax to 15% from 12.5% in Union Budget 2007-08. Paying dividend before the end of this financial year will ensure that RIL pays the existing 12.5% tax on dividend distribution.

IT shares drifted lower. IT major TCS lost 4% to Rs 1205, Infosys shed 2.8% to Rs 2093 and Wipro lost 3.4% to Rs 569. IT pivotals had surged on Thursday, recovering from Wednesday’s fall, under the reckoning that their earnings will be impacted only to a small extent following an increase in tax after the Budget.

The recovery in banks following lower inflation proved short-lived. State Bank of India lost 4.5% to Rs 1005. The stock rose as much as 2.1% to Rs 1074.90 at 12:13 IST following a dip in inflation. HDFC Bank lost 3.3% to Rs 948, and ICICI Bank shed 0.4% to Rs 851.90. The wholesale price index rose 6.05% in the 12 months to 17 February 2007, sharply lower than previous week's annual increase of 6.63% due to a fall in fuel and food prices. The figure was lower than an expected 6.25%.

Engineering & construction major L&T lost nearly 5% to Rs 1465. The stock had bounced back from the lower level on Thursday due to the Union Budget’s thrust on infrastructure.

PSU power equipment major Bhel lost 4% to Rs 2082.

Cigarette major ITC lost 3% to Rs 167. The Budget did not bring cigarettes under value added tax as was feared. Instead, excise duty on cigarettes was hiked by 5%.

Cement shares resumed their slide. Grasim lost 3.9% to Rs 2070, ACC lost 2.4% to Rs 855 and Gujarat Ambuja Cements shed 1.1% to Rs 110.50. In early trade, cement shares had firmed up.

Telecom shares, too, edged lower. Bharti Airtel lost 3.3% to Rs 703 and Reliance Communications shed 2.9% to Rs 415.50.

European markets slipped into the red after an initial firm trend. London’s FTSE 100 Index was down 0.2%, and CAC 40 Index in France was down 0.3. Asian markets were mixed. Chinese shares rose across the board on Friday, led by real estate, as profit-taking in highly valued financial shares eased after this week's massive selling. The Shanghai Composite Index was up 1.2%. But Japan’s Nikkei 225 average was down 1.3%. Hong Kong’s Hang Seng was up 0.4%.

Although the US market ended in the red on Thursday (1 March), it finished well off lows thanks to an upbeat US manufacturing report, which assuaged some concerns about the world's largest economy. The Dow Jones industrial average closed down 34.29 points, or 0.28%, at 12,234.34. The Standard & Poor's 500 Index finished down 3.65 points, or 0.26%, at 1,403.17. The Nasdaq Composite Index fell 11.94 points, or 0.49%, at 2,404.21

FIIs stepped up selling Indian stocks on the day of the Budget, on Wednesday (28 February 2007). FIIs pressed sales worth a massive Rs 1644.30 crore on that day. Their net outflow was Rs 415.70 crore on Tuesday (27 February 2007). The FII outflow was Rs 582.10 crore on Monday (26 February 2007).

FIIs were net sellers to the tune of Rs 483 crore on Thursday (1 March 2007), the day when the Sensex rose 221 points. They were net sellers to the tune of Rs 59 crore in index-based futures on the same day.

Global crude oil prices remained firm and Nymex crude hovered at above $62 a barrel level.

Sensex cascades 389 points

The BSE Sensex, which had slipped below the psychological 14,000 level in the opening session, fell like nine pins as selling continued unabated throughout the session.

The 30-shares BSE Sensex plunged 388.78 points (2.77%), to settle at 13,659.53. It had opened firm, at 14,071.27, but began declining immediately after. The benchmark index kept on touching one low after another, 13,568.08 being the last one.

The S&P CNX Nifty lost 101.10 points (2.50%), to 3,938.90.

The benchmark Sensex had sharply fallen close to 167 points on Thursday (22 February), in the last 45 minutes of trade, due to heavy unwinding of derivative contracts on account of their expiry. The February series, which expired on Thursday (22 February), was interestingly the first monthly series, since the devastating May plunge, when the Nifty settled in the red.

Market men are unwinding their long positions, choosing to watch from the sidelines, cautious ahead of the Union Budget for 2007-08.

The total turnover on BSE amounted to Rs 4039 crore.

The market-breadth, which reflects the overall health of the broader market, was very weak. There were 5.4 losers for every gainer on BSE. A host of stocks from the smallcap and midcap space were being heavily sold. Against 2,207 shares declining on BSE, just 411 advanced. Only 36 scrips remained unchanged.

Among the 30-Sensex pack, 28 declined while only 2 had advanced.

Telecom services provider Bharti Airtel was the top loser, down 6.48% to Rs 749.95, on a volume of 4.59 lakh shares.

Private sector ICICI Bank slumped 4.45% to Rs 906.25, on a volume of 3.46 lakh shares. The scrip had also slipped to a low of Rs 899.15. A surprise hike in CRR announced recently continues to weigh on the stock.

Grasim (down 6.05% to Rs 2270), ITC (down 5.10% to Rs 165.15) and Reliance Communications (down 4.78% to Rs 429) were the other prominent losers.

Maruti Udyog (MUL) was down 1.50% to Rs 866. Moving ahead with its plan to exit the car maker, the Central Government on Thursday invited expressions of interest (EoIs) from public sector financial institutions, banks and mutual funds for selling its remaining 10.27% stake in the company.

The process is likely to fetch the government at least Rs 2,600 crore, based on Thursday's closing of Rs 880 on the BSE. The government had said last year it will completely exit MUL, in which Japan's Suzuki owns a controlling 54.2% stake, by selling its residual 2.96 crore shares (Rs 5 face value). The money raised from the sale will go to the government, and not the National Investment Fund (NIF), as MUL is no longer a public sector.

Private sector Tata Steel was a top gainer, up 0.39% to Rs 457.90, on a volume of 24.71 lakh shares. The stock had struck a high of Rs 466.85, and was looking strong throughout the day. Reports say that Corus had hiked hot/cold rolled prices for European markets by 5 - 7% for the second quarter 2007 deliveries. The decision to increase the prices is a reflection of favourable market conditions. The Anglo-Dutch steel company was last month acquired by Tata Steel.

"Demand is improving and the stocks are at normal levels. The current strong demand for steel in Europe - particularly in construction and end-user sectors - supports this price increase," a spokesperson for Corus said.

Index heavyweight Reliance Industries (RIL) was up 0.30%, to Rs 1418, on a volume of 12.60 lakh shares. It had, however, slipped from a high of Rs 1442.75. The company’s board meets on 24 February 2007 to review plans for raising $2 billion.

Power Finance Corporation moved higher, and settled on BSE at Rs 111.55, a premium over the IPO price of Rs 85. The stock debuted at Rs 104, hit a low of Rs 103.50, and a high of Rs 117. Volumes in the stock were huge, at 4.04 crore shares, on account of multiple block deals.

The IPO had received a strong investor response. It was subscribed 77.24 times, amidst heavy bidding by FIIs, and was priced at the upper end of the Rs 73 - Rs 85 price band. NSE has also included the stock in the futures & options segment. The lot size of PFC in the derivative segment is 2,400.

Power Finance Corporation has a large equity base of Rs 1148 crore and the face value per share is Rs 10.

India's wholesale price index (WPI) rose 6.63% in the 12 months to 10 February, lower than previous week's annual increase of 6.73% due to a fall in some food and textile prices, data showed on Friday (23 February 2007). Analysts forecast the figure at 6.70%. The annual inflation rate was 3.81% during the corresponding week of the previous year.

Global markets were trading mixed. The Nikkei average rose 0.44% to a seven-year closing high on Friday, led by gains in exporters and property shares such as Mitsubishi Estate Co., but Sanyo Electric Co. tumbled following reports of accounting problems. Shares in Sanyo fell as much as 29% on news that Japan's securities watchdog was investigating the company over its past earnings reports, the latest blow to the embattled consumer electronics giant.

The Nikkei rose 79.63 points to 18,188.42, its highest close since May 2000. For the week, the index has added 1.75%.

Hang Seng index shed 97.58 points (0.47%), to 20,711.65.

Meanwhile, the Union Cabinet approved necessary changes in the law in the forthcoming Budget session to phase out central sales tax (CST) on Thursday. CST is collected by the Central Government and is distributed among the states.

The CST rate will be cut from 4% to 3% from 1 April. The phase-out is expected to be completed by 2010-11. This reduction in CST is likely to result in a loss of Rs 6,250 crore to the states’ exchequer in 2007-08. The Centre will introduce a legislation to allow states to tax certain identified services and impose additional duties on excise goods like tobacco to compensate states for the loss of revenue due to the phase-out.

Besides, the Union Government is understood to have assured states of budgetary support to cover any shortfalls.

Earlier this year, the Centre had agreed to the states’ proposal for allowing them to tax 77 services and keep the entire proceeds of it. Of the 77 services, 33 are currently taxed by the Centre, while another 44 are new items to be brought under the service tax net.

For the first year, the Centre will collect the tax and pass on the entire proceeds to the states. The 44 new services to be brought under the service tax net include barbers, legal, education, health, sports and performances of Bollywood actors.

The market is expected to remain subdued in the run up to the Union Budget 2007-08 to be presented in Parliament next Wednesday (28 February 2007). The Budget session of Parliament begins today.

Caution on the bourses is evident in that the market-breadth has turned weak, whenever the key indices have corrected over the past few days. Concerns that the government may raise short-term capital gains tax on sale of shares from the current 10% have gained currency. The securities transaction tax (STT) may also go up further. The STT was raised in the previous budget. The removal of 10% corporate surcharge may be offset by removal of certain open-ended exemptions.

Market men expect the finance ministry to give a big impetus to agriculture and infrastructure in the budget.

FIIs turned net sellers on Wednesday (21 February 2007). FIIs were net sellers to the tune of Rs 40.20 crore on Wednesday. Their inflow has been strong this month. Their cumulative inflow in February 2007 has reached Rs 4175 crore. The strong inflow has been triggered by an upgrade in India's sovereign rating to investment grade by global rating agency, Standard & Poor's, on 30 January 2007.

As per provisional data, FIIs were net sellers to the tune of Rs 435 crore on Thursday (22 February 2007), the day when the Sensex lost 167 points. FIIs were net sellers to the tune of Rs 348 crore in index-based futures on the same day. They were net sellers to the tune of Rs 104 crore in individual stock futures. Nifty March futures settled at 4066.65 on Thursday, a premium of 26.65 points over the spot Nifty closing of 4,040.

Revised market lots in NSE’s derivatives segment become applicable today. The lot size of the Nifty contract has been cut to 50 from 100. This may boost volumes in the derivatives segment.

US blue-chip stocks declined on Thursday, as a jump in oil prices added to worries about inflation, but a rally in chipmakers' stocks helped the Nasdaq advance late in the session to end at a six-year high.

The Dow Jones industrial average fell 52.39 points, or 0.41%, to end at 12,686.02, with only eight of the 30 stocks in the Dow finishing higher. The Standard & Poor's 500 Index dipped 1.25 points, or 0.09%, to finish at 1,456.38. The Nasdaq Composite Index rose 6.52 points, or 0.26%, to 2,524.94, its highest close since 15 February 2001. Earlier, the Nasdaq hit a six-year intraday high at 2,531.42.

US crude shed 9 cents to 60.86 a barrel after jumping 88 cents overnight to its highest level since 2 January 2007, after US data showed a surprisingly big fall in distillate stocks. The fall was compounded by a rash of refinery problems in the world's top consumer. Worries over another escalation in the dispute over Iran's nuclear programme added to concerns over global supply.

Sensex hurtles 348 points lower

The Sensex plunged sharply for the second straight day, today’s fall being more profound and painful compared to Friday's. The BSE benchmark traded in the red throughout on continued selling.

The BSE benchmark also saw a bout of volatility, swinging sharply either ways. The 30-shares BSE Sensex settled 348.20 points (2.39%) in deficit, at 14,190.70, recovering some lost ground after plunging to a low of 14,146.22 on value-buying. The Sensex has thus breached a vital support level of 14,200.

The BSE Sensex began on a highly bearish note, as selling pressure spilled over to this week. The horror show had started on Friday, when the benchmark Sensex tumbled close to 113 points, as a lot of stop losses were triggered due to highly leveraged positions in the derivatives market. Its high for the day was 14,529.28. Traders and speculators exited long positions and chose to sit on the sidelines before the Union Budget. Weak global markets also played spoilsport.

The S&P CNX Nifty lost 129.10 points (3.08%) to 4058.30.

As the market tanked, the market-breadth, indicative of the overall health of the market, did not look good, as a host of small-cap and mid-cap stocks succumbed to selling. There were close to seven losers for every gainer on BSE. For 2,312 shares declining on BSE, only 334 rose. Just 27 shares were unchanged.

The BSE clocked a turnover of Rs 3266 crore.

There was complete pandemonium in the market, and not even a single member from the 30-member Sensex pack was spared the stick.

Aluminium major Hindalco Industries plunged the most after its large all-cash acquisition of US-based Novelis raised concerns about a short-term strain on financials. It was down 14% to Rs 149.05 on high volumes of 72.81 lakh shares. Hindalco Industries and Novelis, on Sunday, signed a definitive agreement for Hindalco to acquire Novelis in an all-cash transaction, which values the US firm at approximately $6 billion, including approximately $2.4 billion of debt.

It may be worthwhile to recall a similar situation, when Tata Steel won the bid to acquire Corus, with analysts worrying about the high price paid by Tata Steel to acquire Corus. Novelis is the largest flat rolled products player in the world with a 19% share of the global market.

The Novelis-Hindalco deal will be financed through a recourse debt of $2.8 billion, Hindalco’s treasury contributing $450 million, while SL Iron Ore Mining, another group company, chipping in with $300 million as debt.

Following the transaction, Hindalco, along with Novelis, will be the world's largest aluminium rolling company, one of the biggest producers of primary aluminium in Asia, and India's leading copper producer.

Novelis posted a net loss of $102 million during the third quarter of 2006. The company has been plagued by high metal prices.

Reliance Communications (RCL) dropped 4.63% to Rs 453.55, on a volume of 21.23 lakh shares, after it lost the bid to acquire the fourth largest cellular services provider, Hutch Essar. Vodafone emerged the top bidder with a $19 billion bid.

RCL recovered from a low of Rs 448.15. Vodafone staved off bids from RCL, the Hinduja brothers and Essar itself, to buy Hutchison's 67% stake for $11.1 billion in cash, and $2 billion more in debt, an enterprise value of $18.8 billion. Vodafone's emergence as a top bidder has dashed Reliance Communications hope of becoming the largest mobile operator in the country.

Bhel (down 6.25% to Rs 2348), Bharti Airtel (down 4.62% to Rs 718), and Gujarat Ambuja Cements (down 4.54% to Rs 132.50) were the other major losers.

Index heavyweight Reliance Industries settled at Rs 1,354, down 2.47% from the previous close of Rs 1,388.25 on a volume of 4.98 lakh shares.

Other heavyweight shares, Infosys (down 0.49% to Rs 2350) and ONGC (down 2.12% to Rs 865) also declined.

Zee Entertainment Enterprises (ZEE) dropped 29% to Rs 257 on 17.66 lakh shares, after the stock went into a no-delivery period ahead of the de-merger of Dish TV, its direct-to-home TV service. The counter clocked 9.30 lakh shares on the BSE. The company has fixed 20 February 2007 as a record date for determining the shareholders of the company eligible for shares in ASC Enterprises, which will be later renamed Dish TV. ZEE will allot 23 fully paid-up equity shares of Re 1 each in ASC to every shareholder for 10 equity shares of Re 1 each held in ZEE.

Technocraft Industries India settled at 100.90 on BSE on its day of debut, notching up a volume of 98.63 lakh shares. It listed at Rs 125 on BSE, a premium of 19.04% over the IPO price of Rs 105. It touched an intra-day low of Rs 97.35, and an intra-day high of Rs 130. The company raised around Rs 87.36 crore at the upper end of the price band of Rs 95 - 105 per share in the IPO concluded recently. The IPO was oversubscribed 10.67 times.

Meanwhile, India's industrial production (IIP) surged 11.1% in December, more than expected, adding pressure on the central bank to raise interest rates. Economists were expecting a rise of just 10.5%.

Most of the Asian and European markets finished in the red, on selling pressure. Hong Kong's Hang Seng fell 84.25 points (0.41%), at 20,593.41, Taiwan's Taiwan Weighted was down 83.17 points (1.06%), at 7,776.36, Singapore's Straits Times plunged 50.43 points (1.57%), at 3,170.46, while South Korea's Seoul Composite index was down 13.39 points (0.94%), to 1,414.29.

US stocks closed lower on Friday after an extensive sell off in stocks inspite of new upgrades announced by Ford Motor and General Motors. The sell-off was prompted by a rise in crude futures, remarks by Federal Reserve officials leaving open the possibility of more rate hikes and concern by Micron Technology executives about memory chip demand and pricing. The Dow Jones Industrial Average closed lower by 56.8 points at 12,580.83, and Nasdaq lost 28.85 points, to 2,459.82.

FIIs were net sellers to the tune of Rs 560 crore in index-based futures on 9 February, the day when the Sensex lost 113 points in a broad decline after a surge in inflation to a more than two-year high. Concerns of a further rise in interest rates grew after the inflation data was released last week. Net buying by FIIs stood at $153.7 million on 8 February 2007. Mutual funds net sale was Rs 193 crore (Rs 1.93 billion) on the same day. NSE F&O open interest was down by Rs 815 crore (Rs 8.15 billion) at Rs 60,052 crore (Rs 600.52 billion).

Oil prices climbed briefly above $60 a barrel on Friday for the first time since the first trading day of the year, as an unrelenting winter across the US led to belief that heating fuel demand will not wane anytime soon. Light, sweet crude for March delivery rose $0.18, to settle at $59.89 a barrel by afternoon trading on the New York Mercantile Exchange, after rising as high as $60.80.

Meanwhile, gold jumped above $668 an ounce on Monday to its highest in seven months, before losing some of the gains to weakening oil prices. Spot gold hit an intraday high of $668.20 an ounce, its best since mid-July on short-covering, before slipping to $665.75/666.50 an ounce, slightly lower than $666.50/667.20 late in New York. Firm oil prices raise gold's appeal as a hedge against inflation.

Bears on the mat

A solid surge in Bajaj Auto and gains in index heavyweights Infosys and ICICI Bank sent the BSE Sensex surging. The government today estimated GDP growth of 9.2% in the financial year ending March 2007, above RBI’s forecast between 8.5 - 9%, spreading more cheer in the market.

In the first official growth estimate for 2006/07, the Central Statistics Office said manufacturing output growth was estimated at 11.3%, compared with 9.1% a year ago. India had last week revised upwards growth for the fiscal year 2005/06 to 9% from a previous reading of 8.4%.

However, the same strength was not reflected by the broader market. The market-breadth turned negative in the latter part of trading. The breadth held strong till the afternoon.

The Sensex’s provisional closing was 14,650.46, a gain of 172.27 points (1.1%). A bout of volatility afflicted the Sensex after it had struck an all-time high above 14,600 in afternoon trade.

After cooling from this record high, the market firmed up once again in late-trading, striking a lifetime high of 14,663.26 at 15:21 IST, and surpassing an earlier all-time high of 14,564.80 struck of Tuesday (6 February 2007).

The S&P CNX Nifty’s provisional closing was 4,223.70, a gain of 27.80 points (0.66%). The relatively muted gains in Nifty compared to those in the Sensex were due to a fall in oil exploration major, ONGC, which is a heavyweight in the Nifty.

The BSE clocked a turnover of Rs 4641 crore.

Bajaj Auto, which is one of the leading players in the life insurance sector, spurted nearly 9% to Rs 3078. As per reports, the group of ministers (GoM) on insurance headed by external affairs minister Pranab Mukherjee is scheduled to meet on 13 February 2007 to decide the fate of amendments to the insurance bill.

The bill, which proposes to hike the foreign direct investment (FDI) cap for insurance companies to 49% from the present 26%, was referred to the GoM after the Cabinet deferred a decision on the contentious issue in December 2006. Once the GoM forms a view on it, the issue will be taken up by the Cabinet. The government wants to introduce the bill in the forthcoming Budget Session of Parliament.

IT bellwether Infosys gained nearly 4% to Rs 2360. BSE has raised Infosys’ free float factor for the purpose of calculating its weightage to 0.85% from 0.8% with effect from 12 February 2007. Free float factor is used for calculating weightage of a scrip in a free-float index like the Sensex. Index funds tracking the Sensex will have to make adjustments in their holdings following the changes in the free-float factor.

Oil exploration major ONGC lost 1.6% to Rs 893.70, after the government halted moves to confirm the appointment of R S Sharma as chairman.

Copper and aluminium major Hindalco 4% to Rs 181.45, following a recovery in global copper prices.

ICICI Bank gained 2.5% to Rs 982, after the largest private sector bank on Tuesday, said it had raised the reference rate by 1% for corporate loans and home loans, from 9 February 2007.

Engineering & construction major L&T gained nearly 3% to Rs 1749. The stock hit a lifetime high of Rs 1767. As per reports, L&T will sign a deal with European aerospace and defence group, EADS, on Thursday to sell components for the latter's defence systems.

Reliance Industries rose 0.2% to Rs 1392. The stock came off a session’s high of Rs 1399. The BSE has reduced Reliance Industries (RIL)’s free float factor to 0.5% from 0.55%.

The government’s robust GDP growth forecast for the current fiscal year triggered buying in select cement pivotals. Grasim gained 3% to Rs 2877 and ACC rose 1.5% to Rs 1060.90. The demand for cement is closely linked to economic growth. Cement scrips had plunged in late-January 2007, after the government got rid of import duty on cement in a bid to rein in inflation.

European markets were slightly firmer in early trade. Key benchmark indices in London, Germany and France were up between 0.05 - 0.27%. Asian markets were mixed. Japan’s Nikkei 225 average shed 0.6%. Hong Kong’s Hang Seng was up 0.12%. It had moved between positive and negative zone during the session.

Nymex crude was up 60 cents at $59.48 a barrel.

Earnings anxiety, weak Asia knock off over 180 points

Weakness in Asian markets and Indian ADRs coupled with caution ahead of earning reports pulled the market sharply lower today as well. A late rebound, however, was witnessed in IT and cement pivotals.

The weakness accentuated after the Nifty broke the key support level of 3,900.

The provisional closing of the Sensex was 13,378.95, a fall of 187.38 points for the day. Short-covering at the fag end of the trading session saw the Sensex recoup a bit of the lost ground, after the barometer index plunged as many as 229.81 points, to a low of 13,336.52 at 15:05 IST.

The S&P CNX Nifty lost 1.5% to 3,850.30.

Energy scrips dragged Asian shares lower on Wednesday, after crude oil prices fell to an 18-month low on Tuesday. Japan’s Nikkei 225 shed 1.7% and Hong Kong’s Hang Seng was 1.6%. Nymex crude was down 69 cents at $54.95.

Selling was conspicuous in banking shares. ICICI Bank, with a 9.3% weigtage in the Sensex, lost 3% to Rs 883. SBI lost 3.3% to Rs 1135.

HDFC Bank was down 1.5% to Rs 998. HDFC Bank unveils Q3 results tomorrow. Five brokerages have forecast between 27.4 - 31.8% growth in HDFC Bank’s Q3 December 2006 net profit, between Rs 285.90 crore and Rs 295.90 crore, compared to a net profit of Rs 224.40 crore in Q3 December 2005.

ONGC lost 3% to Rs 890. Newly-listed Cairn India lost nearly 3% to Rs 133.55. A massive 75.7 lakh shares changed hands in Cairn India.

PSU power equipment major Bhel plunged 4.5% to Rs 2146. The stock was the biggest loser from among the 30-Sensex scrips.

Telecom scrips ran out of steam. Reliance Communications shed 3.5% to Rs 408 despite reports of 1.4 million new mobile subscribers in December 2006. Bharti Airtel shed 2% to Rs 611.

Wipro led an intra-day rebound in IT shares. It rose 2.2% to Rs 594. Satyam Computer gained 0.03% to Rs 467.90, off the session’s low of Rs 456.

Infosys ended just 0.2% down to Rs 2185.70, off the session’s low of Rs 2158. Infosys announces Q3 results tomorrow. Eight brokerages have predicted between 4.1 - 7.3% sequential growth in Infosys’ Q3 consolidated net profit, between Rs 973.50 crore and Rs 996.70 crore, compared to a net profit of Rs 929 crore in Q2 September 2006. These brokerages expect between 5.7 - 10.7% sequential growth in Infosys’ consolidated sales, between Rs 3646.60 crore and Rs 3819.20 crore, compared to net sales of Rs 3451 crore in Q2 September 2006.

However, TCS (down 1.7% to Rs 1234) lost heavily.

Cement shares, too, staged an intra-day recovery. Gujarat Ambuja Cements ended 0.3% down at Rs 139, off the session’s low of Rs 136.10. Grasim lost 0.6% to Rs 2809, off the session’s low of Rs 2757.50.

Reliance Industries shed 0.7% to Rs 1271.50.

Sensex settles above 14,000

The market staged a smart recovery in the second half of the day’s trading session, after slipping to an intra-day low of 13,897.42 in mid-morning trade, as buying interest resumed for index pivotals at lower level.

The 30-shares BSE Sensex settled 72.68 point (0.52%) higher at 14,024.49, an all time closing high. It struck an all time high of 14,035.67 in mid afternoon trade surpassing its previous all time high of 14,035.30, which it had struck on 6 December 2006.

Its low for the day was at 13897.42

The S&P CNX Nifty rose 16.65 points to 4,024.05

The market-breadth was strong, as buying continued for small-cap and mid-cap stocks. For 1,695 shares advancing on BSE, 933 declined. Just 64 shares were unchanged.

The BSE clocked a turnover of Rs 4,286 crore as compared to Rs 3381 crore on Tuesday (2 January).

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

Bajaj Auto was the top gainer, up 3.85% to Rs 2844, on 89735 shares. The company had reported strong sales for December 2006 on Monday. Its December sales rose 24% to 214,928 units from a year ago.

Pharma major Ranbaxy Laboratories advanced 3.80% to Rs 413.50, on a volume of 5.13 lakh shares. The company’s alliance with Ipca Laboratories received US Food and Drug Administration approval to sell atenolol tablets in the United States. Atenolol is indicated in the management of hypertension. Ranbaxy’s atenolol tablets will be available in the US healthcare system during the first quarter of 2007, according to the company.

IT stocks witnessed renewed buying interest ahead of their December quarterly results. Infosys (up 1.85% to Rs 2315), TCS (up 2.30% to Rs 1277.25) and Wipro (up 1.06% to Rs 618) edged higher.

Satyam Computers rose 1.31% to Rs 515.25 on a high volume of 20.21 lakh shares. A block deal of 14.30 lakh shares was struck in the counter on BSE in early trade, at Rs 512.50 per share.

Tata Motors rose 1.22% to Rs 941.25, as its vehicle sales rose 37% in December 2006 to 48,792 units from 35,598 units a year earlier. The stock came off its intra-day high of Rs 959.45 struck in early trade. Tata Motors’ commercial vehicles sales rose 50% in December 2006 to 28,179 units from 18,730 units, while sales of passenger vehicles rose 27% to 16,515 units. Exports rose 7% to 4,098 units.

Gujarat Ambuja Cements gained 0.52% to Rs 144.95, after the company said on Tuesday cement shipments for the year ending December 2006 rose 11.3% to 16.33 million tonnes, from 14.67 million a year earlier. Production in the year rose 11.7% to 16.34 million tonnes, the company said in a statement.

Engineering and construction major L&T rose 1.10% to Rs 1475, after it secured an order valued at Rs 418 crore from the Abu Dhabi Water & Electricity Authority for the construction of six major electrical substations in the Al Ain sector of Abu Dhabi. The project will be completed within 18 months.

Index heavyweight Reliance Industries was up 0.34% to Rs 1286 on 4.86 lakh shares. The stock moved in broad range of Rs 1256 - 1291.80.

FMCG major HLL was the top loser, down 1.94% to Rs 212.25, on 9.06 lakh shares.

Tata Steel (down 1.55% to Rs 471), Hero Honda (down 1.55% to Rs 772) and ITC (down 0.90% to Rs 175.25) were the other losers.

Cement major ACC dropped 1.23% to Rs 1079, after the company reported a muted 3.1% growth in cement dispatches for the month just gone by. ACC said on Wednesday its December 2006 shipments rose 3.1% to 1.65 million tonnes from 1.60 million tonnes a year ago. The company said production in December totalled 1.63 million tonnes, up from 1.57 million a year ago.

Most of the Asian markets were trading with gains on Wednesday (3 January 2007). Hong Kong (up 0.51%) and Singapore (up 1.74%) edged higher, whereas Seoul Composite (down 1.81%) and Taiwan index (down 0.04%) slipped.

Oil prices eased on Wednesday in Asian trade, in a market focused on mild North American weather. New York's main contract, light sweet crude for delivery in February, slipped 18 cents to $60.87 a barrel.

US markets were closed on Tuesday (2 January).

The next major trigger for the market is Q3 December 2006 results. While strong Q3 results are already factored into the share prices, market players will be closely watching what the company managements have to say about outlook for Q4 March 2007 and FY 2008 (year ending 31 March 2008). Infosys kickstarts Q3 earnings season on 11 January.

FIIs turned buyers on the last trading day of calendar 2006, purchasing to the tune of Rs 331.90 crore on Friday (29 December), compared to a huge outflow of Rs 1049.70 crore on Thursday (28 December). But as per provisional data, FIIs were net sellers to the tune of Rs 201 crore on Tuesday (2 January), the day when the Sensex had risen 155 points

Nifty settles above 4,000

The market witnessed sharp rally on the first trading session of calendar year 2007, as buying momentum continued for index pivotals.

The 30-share BSE Sensex settled with gain of 155.33 points (1.13%), to 13,942.24. Sensex had surged to hit a fresh intra-day high of 13,980.54, in late afternoon trade. Earlier today, it opened higher at 13,827.77. Its low for the day was at 13,797.44.

The Sensex is near is all time high of 14,035.30, which was struck on 6 December 2006.

The S&P CNX Nifty crossed the crucial 4,000 mark, and was up 41 points 4007.40

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

Frontline IT stocks witnessed renewed buying interest, in anticipation of robust December quarterly results. Satyam Computers was the top gainer, up 5.04% to 508.35.

TCS (up 2.46% to Rs 1248.55), Infosys Technologies (up 1.43% to Rs 2272.45) and Wipro (up 1.15% to Rs 611.50) edged higher.

Bajaj Auto jumped 4.58% to Rs 2,738.75. The company’s sales in December rose 24% to 2,14,928 units from a year ago. Sales of motorcycles rose 26% to 1,87,063 units, while those of all two-wheelers grew 21% to 187,179 units. Sales of three-wheelers were up 50% at 27,749 units. Exports more than doubled to 39,385 from 18,534 units a year ago.

Maruti Udyog advanced 4.52% to Rs 969.25. The rally was triggered after the company said it sold 56,985 vehicles in December, a 23.7% rise from a year earlier. Indian sales rose 26.3% in December 2006 to 54,640. Maruti’s domestic sales in A2 segment comprising of Alto, Wagon-R, Zen, and Swift rose 35.6% to 38,461 units in December 2006. Domestic sales in A3 segment that includes Baleno and Esteem declined 13.5% to 2,127 units. Total exports fell 17% to 2,345 units.

Hero Honda advanced 3.61% to Rs 789.90. The company reported a marginal increase in bike sales in December 2006 to 2.45 lakh units. The company sold 7,287 units of its scooterette - Pleasure during the month, which was launched earlier in the year.

Tata Motors rose 3.30% to Rs 929.90.

Ranbaxy Laboratories gained 1.67% to Rs 398.40 after it was granted final USFDA approval to manufacture & market Atenolol Tablets. Atenolol is indicated in the management of hypertension.

Banking shares saw renewed buying. SBI (up 0.66% to Rs 1,25.10) and ICICI Bank (up 0.72% to Rs 896.85) moved higher.

Index heavyweight Reliance Industries (RIL) rose 0.89% to Rs 1,281.65.

Tata Steel was the top loser, down 0.81% to Rs 478.40

US equity markets will remain closed until Tuesday (2 January 2007).

Asian markets were trading with gains. Hang Seng (up 1.73%), Jakarta Composite (up 1.72%), Taiwan Weighted (up 1.24%) and Seoul Composite (up 0.06%) edged higher. European markers were trading on firm note with FTSE 100 gaining 1.07% while the CAC 40 rose 1.17%.

US equity markets will remain closed until Tuesday (2 January 2007).

The next major trigger for the market is Q3 December 2006 results, which are already factored into share prices. What market players will be closely watching is outlook issued by managements for Q4 March 2007 and FY 2008 (year ending 31 March 2008).

Foreign institutional investors (FIIs) are in profit-booking mode. Their net sales in December 2006 totaled Rs 3,667.40 crore. This included a huge outflow of Rs 2,814 crore in a single trading session on 4 December 2006, because FIIs reported money received from shares tendered in the sponsored ADR issue of Infosys.

US stocks slipped on Friday, the last trading day of 2006, as investors exited positions before an unplanned four-day weekend, but the Dow still finished near its lifetime high, capping off what has been a bullish year for all three major indexes. The Dow Jones industrial average fell 38.37 points, or 0.31%, to 12,463.15. The Standard & Poor's 500 Index declined 6.43 points, or 0.45%, to 1,418.30. The Nasdaq Composite Index dropped 10.28 points, or 0.42%, to 2,415.29

Sensex suffers 59-point loss

The market kept on declining throughout the day, after a firm opening as selling pressure continued pulling the Sensex below the 13,800 mark.

The 30-shares BSE Sensex lost 59.43 points to 13,786.91. It had opened higher at 13873.03, following a smooth rollover from December 2006 derivatives contracts to January 2007 contracts. It also touched an intra-day high of 13,929.10 at 10:03 IST, as buying continued. The Sensex had slipped to a fresh low of 13770.06, in late afternoon session.

The S&P CNX Nifty lost 4.15 points or 0.10% to 3966.40

India's wholesale price index rose 5.43% in the 12 months to 16 December, higher than the previous week's annual rise of 5.32% due to an increase in manufactured product prices, data showed on Friday. The annual inflation rate was 4.62% during the corresponding week of the previous year.

The total turnover on BSE amounted to Rs 3419 crore as compared to Rs 4193 crore on Thursday.

The market breadth was strong on BSE with 1386 shares advancing, as compared to 1233 shares that declined. 71 shares were unchanged.

Among the Sensex pack, 22 declined while the rest advanced.

FMCG major HLL was the top loser, down 1.82% to Rs 216.30 on 13.47 lakh shares.

Reliance Communications (RCL) declined 1.34% to Rs 471 on 14.19 lakh shares. It said on Thursday, it is examining the opportunity in mobile operator Hutchison Essar and that a potential combination could create compelling value for all shareholders. Chairman Anil Ambani also told a news conference the company had received commitments from global bankers for financial support for any potential bid. Ambani said there was no certainty on the timing of a bid and declined to say how much the firm would offer, saying it would remain within a conservative limit. Meanwhile, RCL plans to invest $1.5 billion to expand capacity of its Flag Telecom submarine cable network.

Tata Motors (down 1.36% to Rs 893), ONGC (down 1.20% to Rs 867) and Gujarat Ambuja Cements (down 1.15% to Rs 141.90) were the other losers.

Index heavyweight Reliance Industries (RIL) was down 0.52% to Rs 1270 on 7.45 lakh shares. It has slipped from high of Rs 1288.40

Tata Steel was the top gainer, up 1.76% to Rs 484.90 on expectations there will be further consolidation in the steel industry. Meanwhile, Tata group chairman Ratan Tata was quoted as saying in an interview that the Tata group sees a limit to how far it can stretch to buy Anglo-Dutch steel-maker Corus Group Plc without compromising shareholders' interests.

Dr Reddy’s Lab gained 1.43% to Rs 811 after it received final approval from the U.S. Food and Drug Administration for cholesterol-lowering simvastatin tablets. Simvastatin is the generic equivalent of Merck & Co. Inc.'s blockbuster drug Zocor.

Cement major ACC gained 1.05% to Rs 1085 on 1.65 lakh shares. It moved in range of Rs 1072.10 -1098.90.

The BSE Bankex slipped 0.20%, or 14.29 points, to 7085.73. Private sector banking shares witnessed renewed-buying interest while state run banks finished lower. Punjab National Bank (down 1.30% to Rs 506), SBI (up 0.75% to Rs 1245.35), Kotak Mahindra Bank (up 5.35% to Rs 399.90), Indian Overseas Bank (down 0.30% to Rs 111.70), Bank of Baroda (down 1.82% to Rs 240.15), Oriental Bank of Commerce (down 2.46% to Rs 226.30), HDFC Bank (down 0.86% to Rs 1069.70), Canara Bank (down 0.15% to Rs 275), Bank of India (up 0.80% to Rs 207), and ICICI Bank (down 1.10% to Rs 889).

The National Stock Exchange (NSE) added 26 new stocks in the F&O list from today. The new entrants in the F&O segment are Aban Offshore, Amtek Auto, Bajaj Hindustan, Balrampur Chini Mills, Bata India, Bharat Earth Movers, Bombay Dyeing, Crompton Greaves, Gateway Distriparks, GTL, Gujarat Alkalies & Chem, Hindustan Construction, Hinduja TMT, Jaiprakash Associates, JSW Steel, Kotak Mahindra Bank, Lupin, Mcdowell & Company, Nagarjuna Constrn., Praj Industries, Shree Renuka Sugars, Sesa Goa, Triveni Engg. & Inds, Tata Teleservices (Maharastra), UltraTech Cement and Voltas.

The near term trigger for the bourses is Q3 December 2006 results. Market men expect December 2006 quarter to be another strong quarter in terms of earnings growth. Strong advance tax payments corroborate the view that Q3 results would be strong. The Q3 results would start trickling in from 11 January 2007.

The Nikkei 225 index finished just 0.01% higher at 17,225.83. That marked its highest close since early May. The benchmark ended 2005 at 16,111.43. Tokyo's Nikkei share average ended 2006 with a 6.9% gain for the year, marking its fourth straight year of growth and its longest bull run in nearly two decades.

US stocks finished marginally lower on Thursday as investors sold off recent outperforming stocks to lock in some profits ahead of the year-end. The Dow Jones industrial average declined 9.05 points, or 0.07 percent, to end at 12,501.52. The Standard & Poor's 500 Index dipped 2.11 points, or 0.15 percent, to finish at 1,424.73. The Nasdaq Composite Index dropped 5.65 points, or 0.23 percent, to close at 2,425.57.

As per provisional data, FIIs were net sellers to the tune of Rs 1022.55 crore on Thursday 28 December, the day when Sensex had lost 13 points. FIIs were net sellers to the tune of Rs 368 crore on Wednesday 27 December, the day when Sensex had surged 151 points.

Oil rose as some analysts and traders said they expect U.S. crude inventories to have dropped last week because of disruptions to shipping. Crude oil for February delivery rose as much as 39 cents to $60.73 a barrel in after-hours electronic trading on the New York Mercantile Exchange. Brent crude oil for February settlement gained 28 cents to $60.80 a barrel on the London-based ICE Futures exchange.

Sensex sheds 13 points

The market witnessed a bout of volatility towards the close of the trading session on account of expiry of December 2006 derivatives contracts.

The 30-shares BSE Sensex settled 13.35 points lower at 13,846.34. It had opened on a firm note at 13893.29 and surged to a high of 13,960.39 by minutes of commencement of trade. It touched an intra-day low of 13819.77 in late afternoon session.

The S&P CNX Nifty rose 4.10 points to 3978.35. It had surged to a high of 3997.35 in early trades. It also touched a low of 3961.95.

The market breadth was negative with 1234 shares advancing on BSE as compared to 1375 shares that declined. 73 shares were unchanged.

The total turnover on BSE amounted to Rs 3966 crore as compared to Rs 3664 crore on Wednesday (27 December)

Among the Sensex pack, 16 declined while the rest advanced.

Drug maker Cipla was the top loser, down 2.77% to Rs 252.35 on 1.43 lakh shares. It has slipped from high of Rs 260.45.

SBI (down 1.27% to Rs 1235), Dr Reddy’s (down 1.13% to Rs 798.40) and Tata Steel (down 1.05% to Rs 476.25) followed.

Reliance Communications was down 0.41% to Rs 473 on high volumes of 27.48 lakh shares. it had touched a high of Rs 485. The company is reported to be interested in bidding for rival Hutchison Essar. Anil Ambani will address a press conference at 16:00 IST on Thursday amidst raging speculation that he will announce his firm's next move in the battle for Hutch-Essar.

Index heavyweight Reliance Industries (RIL) was down 0.78% to Rs 1282.80 on 13.19 lakh shares. The company is reportedly planning to invest Rs 5,000 crore for gasification of lignite in south Gujarat. The project will be a joint venture between (RIL) and Gujarat Mineral Development Corporation (GMDC). The private sector oil refiner is said to be negotiating with GMDC and scouting for lignite reserves in south Gujarat.

HDFC Bank was the top gainer, up 2% to Rs 1078 after its ADR gained 3% to $73.89 on Wednesday on the NYSE.

Hero Honda (up 1.83% to Rs 758), TCS (up 1.73% to Rs 1216) and ITC (up 1.47% to Rs 179) were the other gainers.

Tech Mahindra was the top traded counter on BSE with total turnover of Rs 317.61 crore followed by Indiabulls Financial Services (Rs 217.64 crore) and Reliance Industries (Rs 169.64 crore).

HCL Technologies gained 2.21% to Rs 633.90 on total volume of 21.17 lakh shares after a block deal of 5 lakh shares was struck on the counter on BSE at Rs 619 per share.

Indiabulls Financial Services advanced 5.18% to Rs 673.95 on high volumes of 32.72 lakh shares as buying continued, a day ahead of the last trading date for shareholder eligibility to get the shares of the real estate firm. The stock had spurted 9.4% to Rs 590.30 on 21 December on high volume of 56.9 lakh shares on BSE after the company announced 9 January 2007 as record date for its demerged real estate business, now brought under Indiabulls Real Estate (IREL). The stock enters no-delivery period on BSE from 2 January 2007 to 8 January 2007, for the purpose of the demerger of the real estate business.

The Nikkei share average ended flat on Thursday as Nippon Steel Corp. and its peers drew buyers, while Canon Inc. and other recent gainers fell on concern that their prices may have advanced too quickly. The Nikkei was up 0.01%, or 1.66 points, at 17,224.81.

Oil prices firmed above $60 on Thursday after losing $3 over the last four sessions on mild U.S. weather, with dealers looking ahead to weekly oil data expected to show a drop in crude and a rise in heating fuel stocks. U.S. light crude futures gained 13 cents at $60.47 a barrel after touching a one-month low of $60.25 a barrel on Wednesday. Brent crude rose 8 cents to $60.60.

The Dow Jones industrial average jumped 102.94 points, or 0.83%, to end at a record 12,510.57. The Standard & Poor's 500 Index advanced 9.94 points, or 0.70%, to finish at 1,426.84, while, The Nasdaq Composite Index climbed 17.71 points, or 0.73%, to close at 2,431.22.

Mutual Funds were net buyers of Rs 336 crore in equity on 26 December

Sensex scores quickfire 237

The market extended its rally into the third straight day, with the BSE Sensex striking a fresh intra-day high of 13,726.62 at the fag end trading.

The 30-shares BSE Sensex settled 236.60 points (1.76%) higher, at 13,708.34; its intra-day low being 13,490.77.

The market-breadth was strong, as buying continued for smallcap and midcap shares. On BSE, there were over 1.7 gainers for every loser. Against 1,644 shares that advanced, 956 declined and 76 remained unchanged.

The total turnover on BSE amounted to Rs 3,051 crore.

Among the 30-Sensex pack, 26 advanced while the rest had declined.

IT stocks saw renewed buying in anticipation of a robust set of December quarter results. Wipro was the top gainer, up 4.69% to Rs 599.95, on a volume of 1.90 lakh shares.

Other IT shares - TCS (up 3.45% to Rs 1,191) and Satyam Computers (up 3% to Rs 476) had also gained.

IT bellwether Infosys Technologies rose 2.33% to Rs 2,222.15, after it scheduled a board meeting on 11 January 2007, to consider Q3 December 2006 results on 11 January 2007. It is also believed to be in talks with ten global banks for its banking software – Finacle.

Tata Motors advanced 2.78% to Rs 883.15, on a volume of 3.37 lakh shares, while the State Bank of India (SBI) gained 2.36% to Rs 1,242.70 on a volume of 3.42 lakh shares.

Index heavyweight Reliance Industries (RIL) was up 0.52% to Rs 1,278, on a volume of 4.35 lakh shares.

Hero Honda was the top loser, down 0.62% to Rs 745, on 1.06 lakh shares. It had slipped to a low of Rs 737.

The Nikkei share average rose 0.45%, or 76.30 points, to 17,169.19, its highest close in seven and half months on Tuesday, as Fast Retailing Co. rose after government data showed a slower-than-expected fall in personal consumption in November.

India's central bank, on Friday, allowed up to 49% foreign investment in stock exchanges, paving the way for New York Stock Exchange (NYSE) to expand into Asia's best performing markets.

The Reserve Bank of India also said that foreigners could hold up to 49% in depositories and clearing corporations.

Under the new rules, foreign direct investment will be limited at 26%, while foreign portfolio investments would be capped at 23% in all such entities, the central bank said. It, however, said portfolio investments will be allowed only through the secondary market. The stock exchange also plans to list its shares on its own trading floor.

Recently, media reports suggested New York Stock Exchange was eager to pick up a stake in the BSE.

Volatility is expected to remain high ahead of the expiry of December futures contracts on 28 December 2006 (Thursday). Participation by FIIs is also expected to remain low as most fund managers would have proceeded on a Christmas vacation, which will last till the New Year.

The Dow Jones had closed at 12,343.22, down 0.63%, while the S&P 500 and the Nasdaq had lost 0.53% and 0.61%, to close at 1,410.76 and 2,401.18, respectively, on 22 December 2006 (Friday).

FIIs were net buyers of equities worth Rs 264.80 crore on the Indian bourses, on 22 December 2006 (Friday). This was a result of purchases worth Rs 1,666.50 crore and offloading to the tune of Rs 1,401.70 crore in the Indian equities market. The country’s premier index, the BSE Sensex, had climbed 87 points on Friday, closing at 13,471.74. NSE’s S&P CNX Nifty rose 37.65 points, to end at 3,871.15, the same day.

Market draws inspiration from overseas

Firm global markets, a psychologically important decline in inflation and provisional data showing heavy FII buying on Thursday, boosted the market. The BSE benchmark index traded in the green throughout the session.

However, the market failed to sustain the higher level as it approached a key resistance level.

The BSE Sensex’s provisional closing was 13,606.41, a gain of 119.25 points. The provisional closing of CNX Nifty was 3,883.95, a gain of 1%.

Nifty pared gains after scaling 3,908.45 in mid-afternoon trade. Technical analysts feel that 3,900-3,920 is a key resistance level for Nifty. Only a decision close to that level will indicate resumption of uptrend, they say. Nifty also has a strong support at 3,700 level, market participants feel.

Sensex swung 124.05 points between a low of 13,545.60 and a high of 13,669.65.

The market-breadth was strong. For 1,549 shares rising on BSE, 1,007 declined. A total of 71 shares were unchanged. Gainers outpaced losers by a ratio of 1.53:1.

The BSE clocked a turnover of Rs 4,150 crore.

PSU banks surged after data released at 12:00 IST revealed that inflation eased to 5.16% for the 12 months to 2 December, compared to 5.3% in the previous week. Canara Bank surged 9.9% to Rs 291.90, Bank of Baroda rose 4.7% to Rs 246 and Bank of India gained 4.4% to Rs 193.25.

State Bank of India gained 3% to Rs 1,261. The Standing Committee on Finance has endorsed the proposed legislative amendment to reduce State Bank of India’s shareholding in its subsidiary banks from current 55% to 51%.

Reliance Industries (RIL) declined in volatile trade. The stock shed 0.7% to Rs 1252.55. Reports today suggest, RIL has paid Rs 444 crore towards the third installment of advance tax due 15 December 2006. CLSA, a brokerage, while issuing an outperform rating on the scrip with a 12-month price target of Rs 1,265, recently stated that RIL's scrip performance over the next year will hinge on news flow.

Battered Tata Steel surged 5.5% to Rs 460. A strong 27.3 lakh shares changed hands in the counter on BSE. The stock rose on bargain-hunting, after a steep fall caused by concerns over its bidding war with Brazil’s CSN. Both are locked in a deadly duel over European steel maker Corus Group.

Reliance Communications surged 4% to Rs 466, extending its rebound of the last two days, amid reports of the company chasing Hutchison's India operations.

Hindalco surged nearly 4% to Rs 177.95, tracking firm global copper prices. The stock rose on a huge volume of 38.2 lakh shares on BSE.

Select IT pivotals gained, tracking overnight gains in their ADRs. Satyam Computer rose 3% to Rs 481.70, after its ADR rose 3.6% to $23.79. Infosys rose 1.8% to Rs 2,239; its ADR rose 2.1% to $55.20.

ACC (up 2.2% to Rs 1,055) held firm. The board of ACC has approved an expenditure of about Rs 1,480 crore to raise the capacity of the New Wadi plant, by about 3 million tonnes per annum.

Grasim gained 2.9% to Rs 2,741, extending its recent surge.

Asian and European markets were steady-to-firm. Key benchmark indices in Hong Kong, Japan and London were up 0.3 - 1%. US stocks surged on Thursday, driving the Dow industrials to a record close on strong earnings from companies such as investment bank, Bear Stearns Company, and an improving outlook for the US economy. The Dow Jones industrial average gained 99.26 points, or 0.81%, while the Standard & Poor's 500 Index jumped 12.28 points, or 0.87%, to end at 1,425.49. The Nasdaq Composite Index finished up 21.44 points, or 0.88%, at 2,453.85.

International rating agency S&P said on Thursday, it is looking to upgrade India’s sovereign rating.

As per provisional data, FIIs were net buyers to the tune of Rs 480 crore on Thursday (14 December), the day when the Sensex had surged 306 points. They were net sellers to the tune of Rs 96.90 crore on 13 December, the day when the Sensex had gained 186 points.

Nymex crude rose 27 cents, to $62.78 a barrel, extending Thursday’s near 2% surge due to an OPEC decision to cut production once again.

Sensex gets adrenaline to flow again

Buying in telecom, cement, banking shares and pharma pivotals triggered a recovery on the bourses in what turned out to be a day of immense volatility. The Sensex’s provisional closing was 13,209.88, a gain of 214.86 points. It also hit an intra-day high of 13,223 at 15:24 IST.

Select side-counter surged and the market-breadth was quite strong. For 1,652 shares rising on BSE, 849 declined. As many as 68 shares were unchanged. Gainers outpaced losers by a ratio of nearly 2:1. The breadth improved substantially in the last half an hour of trade. Earlier, the market-breadth swung between positive and negative throughout the day.

Trading was characterised by extreme volatility today. The Sensex swung over 1,400 points between some vital intra-day tops and bottoms. It swung 392.62 points between the day’s low of 12,830.38 and high of 13,223.

The BSE clocked a turnover of Rs 4,404 crore.

Reliance Communications surged 7% to Rs 432.90, following media reports that it is in talks with three US private equity groups, for buying the Indian operations of Hutchison Telecommunications International in a deal worth more than $14 billion. The stock rose on a heavy volume of 38.6 lakh shares on BSE.

Bharti Airtel surged 4% to Rs 601. As many as 3.2 lakh shares changed hands in the counter on BSE.

Reliance Industries rose 2.6% to Rs 1,240.50. As many as 15.5 lakh shares changed hands in the counter on BSE. Multiple block deals of 1,02,196 shares were executed in the scrip at Rs 1,231.75 a piece, on BSE. The government on Tuesday approved RIL's plan for a $5.2 billion deep-sea gas field, which will pump 80 million cubic metres per day.

Bank shares edged higher after the US Federal Reserve on Tuesday kept US interest rates unchanged. SBI surged 4% to Rs 1,230.90, ICICI Bank 2.7% to Rs 828 and HDFC Bank added 1.9% to Rs 1,050.

Cement shares rose on renewed buying at the lower level. Grasim gained 5.7% to Rs 2,650, ACC rose 3.9% to Rs 1,010 and Gujarat Ambuja Cements advanced 3.9% to Rs 135.

Pharma pivotals firmed up. Dr Reddy’s Lab surged 5% to Rs 792.50 and Ranbaxy rose 2.3% to Rs 368.

Software bellwether Infosys made a solid intra-day rebound in the last half an hour of trade. The stock rose 0.1% to Rs 2,166. Earlier, the scrip had dropped as much as 1.5% to a low of Rs 2,131.30 at 14:50 IST.

Unwinding of long positions in the derivatives accentuated the fall on the bourses, and the Sensex lost 977 points in three trading sessions, between 8 December and 12 December. The market wide-open interest in derivatives declined 6.4% in a single trading session on Tuesday (12 December). Aggressive offloading happened in frontline stocks, where the total open interest declined 9% that day, according to a domestic brokerage.

European shares were in the green in opening trade on Wednesday. Key benchmark indices in London, Germany and France were up by between 0.01% to 0.1%. Asian markets were mixed. Key benchmark indices in Hong Kong, Singapore and Taiwan were down by between 0.1% to 1%. Key benchmark indices in Japan and South Korea were up by 0.3 - 0.4%.

Nymex crude was little changed at about $61 a barrel.

Austere RBI sends shivers down market's spine

A spike in cash reserve ratio by the RBI and data showing heavy FII sales in index-based futures on Friday (8 December), rattled the bourses, which bucked the steady-to-firm trend in Asian and European shares.

Bank shares witnessed panic-selling. Index heavyweight Reliance Industries (RIL) weakened in late-trading.

The BSE Sensex lost 400.06 points (2.9%), to settle at 13,399.43.

Volatility was high in the second half of the trading session. After a fall of a massive 537.76 points, to 13,261.73 by 12:59 IST, the Sensex had staged an instant recovery from a lower level, to reach 13,463 at 13:21 IST, a fall of about 336 points for the day. However, recovery proved shortlived as the Sensex again drifted to 13,313 by 13:53 IST, again a fall of about 486 points for the day. It again recovered to reach 13,497 at 15:07 IST, which was a fall of about 302 points for the day. Once again, sell-off gripped the market at the fag end of the trading session and the Sensex hit 13,300.59 at 15:28 IST, a fall of 498.90 points for the day.

The market remained weak right from the onset of trading today.

The market-breadth was quite weak. For 1,974 shares that declined on BSE, 589 rose. As many as 43 shares were unchanged.

The BSE clocked a turnover of Rs 4,830 crore.

Finance Minister P Chidambaram, on Monday, said an increase in the cash reserve ratio for banks was to moderate credit growth and the government was ready to take further action to curb inflation. In a surprise move, the RBI hiked cash reserve ratio (CRR) by 50 points after trading hours on Friday. "Banking scrips will adjust because their profitability is good. The stock market is on a high so no need to worry," Chidambaram opined.

Scared out of their skins, banking stocks posted heavy losses due to the CRR hike. SBI plunged 9% to Rs 1,230, ICICI Bank lost 7% to Rs 814, and HDFC Bank shed 5.3% to Rs 1,027. Banks are likely to take a final view on raising interest rates on loans as well as deposits, by the end of this week, or early next week. Reports suggest that interest rates on home loans are likely to become the first casualty.

Reliance Industries (RIL) lost 3.2% to Rs 1,227. As many as 17.8 lakh shares changed hands in the counter on BSE.

Cellular service providers succumbed to profit-taking. Bharti Airtel shed 4.9% to Rs 602 and Reliance Communications shed 4.6% to Rs 426.70.

Tata Steel 6.7% to Rs 460. The stock recovered from a 9.2% plunge, to Rs 438, at 13:00 IST. Reacting to the CSN bid Tata Steel said Monday, it was considering its position on Corus. Brazil’s CSN today announced a bid at 515 pence per share for Corus. CSN's announcement came close on the heels of Tata Steel raising its offer for Corus to 500 pence per share from the earlier 455 pence per share, today.

Cement major ACC plunged 6.8% to Rs 1,029.50, and NTPC lost 6.5% to Rs 141.65.

Infosys lost 0.6% to Rs 2,182 in volatile trade. As per reports, the company is renewing a few of its contracts at a premium. Meanwhile, the stock has been included in the Nasdaq 100 index.

FIIs were net sellers to the tune of Rs 1,087 crore in index-based futures on 8 December – the day when the Sensex lost 173 points. They were net sellers to the tune of about Rs 106 crore in individual stock futures that day. As per provisional data, FIIs were net sellers to the tune of Rs 106 crore in the cash segment the same day.

Nymex Crude was down, or rather almost unchanged, at $62 a barrel.

Response to Cairn India IPO, which opened for subscription today, improved as the day progressed. By 15:00 IST, the IPO had bids for 17.72 crore shares compared to the issue size of 32.8 crore shares. Most of the bidding took place at the upper end of the Rs 160 to Rs 190 price band.

173-point debacle

The market extended its fall as selling intensified during the later half of the session. Shares from auto, metals, oil & gas suffered the most.

The 30-shares BSE Sensex plunged 172.54 points, or 1.23%, to settle just below the 13,800 mark at 13,799.49. It opened with an upward gap of 35.64 points, at 14,007.67. It also hit a high of 14,009.56, but began declining as profit-booking emerged. The fall accentuated in the second half of the day, and the Sensex tumbled to a low of 13,756.86.

The S&P CNX Nifty lost 63.30 points (1.58%), to 3,952.05.

The market-breadth was weak on BSE, with over 1.5 losers for every gainer. Against 1,606 shares that declined, 967 advanced. Just 57 shares remained unchanged.

The total turnover on BSE amounted to Rs 4,061 crore.

Among the 30-Sensex pack, 27 declined while the only 3 of them managed some gains.

Tata Motors was the top loser, down 3.44% to Rs 861.50, on 3 lakh shares. It had tumbled from an intra-day high of Rs 897.

ACC (down 2.95% to Rs 1,100), Hindalco (down 2.86% to Rs 178.15) and HLL (down 2.75% to Rs 233.75) were the other losers from the Sensex family.

Reliance Communication slipped 2.30% to Rs 445.85, after a block deal of 22.74 lakh shares was struck in the counter at Rs 454 per share. The counter clocked 35.27 lakh shares on BSE.

Index heavyweight Reliance Industries (RIL) lost 2.68% to Rs 1,265.90, on a volume of 11.20 lakh shares. The stock has slipped sharply from an intra-day high of Rs 1,310.

State Bank of India (SBI) lost 0.31% to Rs 1,342. As per reports, SBI intends to start operations in Israel by March 2007. The government-run moneylender also wants to enter Pakistan. The bank is expanding into countries, where India's trade and investment is set to grow in future.

NTPC declined 0.46% to Rs 151, as buying continued, after Merrill Lynch raised price target on the scrip, to Rs 180. In a recent report dated 5 December 2006, Merrill Lynch has raised its earnings estimates for NTPC. Its revised price target of Rs 180 on NTPC, is based on a discounted cash flow (DCF) analysis.

Reliance Energy was the top gainer, up 1.96% to Rs 552.65, on 3.02 lakh shares. The stock moved in a broad range of Rs 567.90 - Rs 541.

Grasim (up 0.06% to Rs 2750) and Dr Reddy’s (up 1.50% to Rs 769) were the other survivors of the market carnage.

Two block deals were struck on EIH counter of 2.76 lakh shares each at Rs 110 and Rs 107.25, respectively. The stock was down 0.80% to Rs 105.15 on a total volume of 7.97 lakh shares.

The Nikkei average fell 0.34% on Friday as weaker-than-expected machinery orders data hit machinery stocks such as Fanuc Ltd., while Sanyo Electric Co. Ltd. dropped on a cellphone battery recall. The Nikkei slipped 55.54 points to close at 16,417.82, after booking a six-week closing high on Thursday.

Hong Kong’s Hang Seng index lost 103 points (0.55%), to 18,739.99.

India's wholesale price index rose 5.30% in the 12 months to 25 November, lower than the previous week's annual rise of 5.45% due to a fall in food and energy prices, data showed on Friday. The annual inflation rate was 4.48% during the corresponding week of the previous year.

Profit-booking is likely to continue after India’s premier index, the BSE Sensex, rallied a little over 48% in this calendar year, as foreign funds purchased heavily, and the cumulative inflow from whom, in 2006, has reached $8.4 billion compared to a record inflow of $10.7 billion in 2005. Of these, $2 billion was pumped only a month -- November 2006.

The selling pressure may also remain as a section of the market feels that investors may consolidate positions ahead of a record initial public offering of Cairn Energy's Indian subsidiary - Cairn India. The IPO, which will be India's biggest so far, is scheduled to open on 11 December, and is expected to raise up to $1.4 billion.

The European Central Bank had raised its key interest rate a quarter of a point to 3.5% on Thursday, despite strength in the euro that some analysts say could stunt economic growth and hurt the crucial export sector.

FIIs bought shares worth a net Rs 244 crore on 6 December, the day when the Sensex had risen 11 points. However, mutual funds sold shares worth a net Rs 177 crore the same day.

US stocks fell on Thursday as investors locked in profits ahead of jobs data on Friday that may show further weakening in the economy and hurt corporate earnings. The Dow Jones industrial average dropped 30.84 points, or 0.25%, to end at 12,278.41. The Standard & Poor`s 500 Index declined 5.61 points, or 0.40%, to finish at 1,407.29. The Nasdaq Composite Index slid 18.17 points, or 0.74%, to close at 2,427.69.

Oil prices rose in Asian trade, after the latest attack on an oil installation in Nigeria, and on growing expectations that OPEC will cut production further, dealers said. New York's main contract, light sweet crude for January delivery, was up 39 cents at $62.88 while Brent North Sea crude for January delivery rose 32 cents to $62.89.

14,000 breached in later trade, Sensex closes shade lower

The market ended with a small gain today amid a divergent trend in the constituents of the Bombay Stock Exchange benchmark index. Index heavyweights, Reliance Industries and Infosys, moved in opposite direction; the former gained while the latter slipped.

Tata Motors, NTPC and Hindustan Lever (HLL) firmed up in late trading. Shipping firms and power equipment makers were in demand.

The Sensex rose 23.03 points (0.17%), a record closing, to settle at 13,972.03.

The market had firmed up in late-trading, when the Sensex had risen as many as 53.72 points, to a high of 14,002.72 at 15:01 IST. But it failed to sustained higher level, and eased at the fag end of the trading session.

The Sensex fluctuated within a narrow range during mid-morning to afternoon trade. In early-trade, the benchmark index was gripped by high volatility.

The advance-decline ratio was even. For 1,286 shares that declined on BSE, 1,283 shares rose. As many as 68 scrips were unchanged. The market-breadth weakened during the course of the trading. There was an advance-decline ratio of 1.45:1 at about 11:20 IST.

The BSE clocked a turnover of Rs 3,787 crore.

Reliance Industries rose 1.4% to Rs 1,298.45. A recent report by brokerage CLSA said, RIL’s recently submitted revised field development plan indicated potential crude reserves of 1.6 billion barrels in the block. It said the oil find was in addition to RIL’s previous similar discovery in another exploration block KG-III-6. Recently, there were unconfirmed reports that RIL is close to acquiring Adani Retail. If this acquisition materializes, it will provide RIL with retail infrastructure and real estate for Gujarat operations.

Hindalco Industries rose 3% to Rs 183.30. The stock rose for the second day in a row following reports that China’s aluminium imports are rising.

NTPC rose 2.3% to Rs 151.50. The stock rose in late-trading. In a recent report dated 5 December 2006, Merrill Lynch has raised the price target on the scrip, to Rs 180. Its revised price target is based on a discounted cash flow (DCF) analysis. The brokerages have raised their earnings estimates for NTPC.

Tata Motors (up 1.2% to Rs 892) firmed up in the last one hour of trade after being subdued for the most part. Early this week, the stock had surged on the back of strong sales for the month just gone by.

Bhel rose 1.6% to Rs 2,665. The stock hit Rs 2,668, a life high for the scrip.

Infosys shed 1.1% to Rs 2,220.

Bharti Airtel dropped in volatile trade. The stock shed 1.5% to Rs 637.10. In early-afternoon trade, the stock had lost as much as 1.9% to a low of Rs 634, after reports filtered in that it had added more than 1.35 million users in the month just gone by. It had later recovered to Rs 644 at 14:17 IST ( a fall of 0.4% for the day) after reports that it added 1.65 million new users in November 2006.

Sensex ends with marginal gain

Sensex managed to end with marginal gains after witnessing high volatility throughout the day’s trading session.

It rose 11.35 points, at 13,937.65. It had opened firm at 13,951.09, and surged to an all-time high of 14,035.30. Its intra-day low was at 13,847.67. It witnessed high volatility, oscillating 187.63 points between the day’s low and high.

Sensex’ previous all-time high was 14,028.47, touched on Tuesday (5 December).

The S&P CNX Nifty was up marginally by 0.20 points to 4015.95

The total turnover on BSE amounted to Rs 4545.28 crore as compared to Rs 4779 crore on Tuesday (5 December)

The market-breadth was extremely weak on BSE, with close to 1.75 losers for every gainer. For 1,642 shares that declined, only 929 advanced. 57 shares remained unchanged.

Among the 30-Sensex pack, 16 advanced while the rest declined.

Reliance Energy was the top loser, down 2.34% to Rs 540.30, on a volume of 1.31 lakh shares. It witnessed high volatility, and moved in a broad range of Rs 478 – 557.95.

ACC (down 1.51% to Rs 1147), HDFC (down 2.10% to Rs 1570.50) and Cipla (down 1.43% to Rs 249) were other others from Sensex pack.

Index heavyweight Reliance Industries (RIL) slipped 0.23% to Rs 1277.10 on 9.65 lakh shares. As per reports, RIL has bagged 2 onshore oil blocks in Yemen.

Ranbaxy Laboratories was the top gainer, up 1.61% to Rs 391.20, on a volume of 2.70 lakh shares.

ICICI Bank rose 1.23% to Rs 873, after the private sector bank on Tuesday said offices had been opened in Bangkok, Jakarta and Kuala Lumpur, to capitalise on a rise in cross-border deals. With the new offices, ICICI Bank will have a presence in 17 countries.

Bhel rose 1.13% to Rs 2613 while Bharti Airtel advanced 1.13% to Rs 646.

Satyam Computer rose 0.40% to Rs 463, on 6.74 lakh shares, following a 3.4% surge in ADR on Tuesday to $24.42. The stock came off an intra-day high of Rs 469, reached in opening trade.

The Nikkei average rose 0.65% or 105.52 points at 16,371.28 on Wednesday with investors buying Bridgestone Corp. on news it would buy U.S. firm Bandag Inc.

Hang Seng index rose 0.43% or 82.17 points to 19026.36

Oil prices were nearly flat Wednesday ahead of the release of weekly US petroleum inventory data. Light, sweet crude for January delivery rose 9 cents to $62.52 a barrel on the New York Mercantile Exchange.

As per provisional data, FIIs were net buyers to the tune of Rs 302 crore on Tuesday (5 December), the day when the Sensex rose 63 points. The cumulative FII-inflow has reached $8.3 billion in 2006, compared to a record inflow of $10.7 billion in 2005.

US stocks rose on Tuesday as a report showing unexpected strength in the key services sector suggested earnings growth will weather the housing slowdown. The Dow Jones industrial average rose 47.75 points, or 0.39%, to end at 12,331.60. The Standard & Poor's 500 Index was up 5.64 points, or 0.40%, at 1,414.76. The Nasdaq Composite Index was up 3.99 points, or 0.16%, to close at 2,452.38.

Sensex gains 63 points

Sensex extended its rally for the fifth straight day as buying continued. Metal and IT stocks were in demand.

The 30-share BSE Sensex settled 63.32 points higher at 13,937.65, a lifetime closing high. It came off the higher level after opening with an upward gap of 154.14 points at 14,028.47, which is also its all time high. Sensex touched an intra-day low of 13905.65

The S&P CNX Nifty also settled at lifetime closing high at 4015.35, up 14.35 points from its previous close. It had surged to an all time high of 4033.20

The market breadth stayed positive with 1307 shares advancing on BSE as compared to 1263 that declined. 68 shares were unchanged.

The total turnover on BSE amounted to Rs 4743 crore as compared to Rs 4836 crore on Monday (4 December)

Among the Sensex pack, 18 declined while the rest advanced.

Tata Steel was the top gainer, up 5.60% to Rs 494.25 on 16.75 lakh shares. It moved in range of Rs 470.65- 494.90. The company said on Monday, it had signed an agreement with Nippon Yasen Kabushiki Kaisha to form a 50:50 shipping joint venture. The JV will cater to both dry and bulk cargo.

Index heavyweight Reliance Industries (RIL) rose 1.50% to Rs 1279 on 9 lakh shares. The stock had opened with huge upward gap at Rs 1350, which is also its 52-week high. The company said on 1 December, that its hydrotreater plant at Jamnagar refinery, which was partially damaged in a fire on 25 October, has been refurbished and has started functioning. Also there are unconfirmed reports that it is set to acquire Adani Retail, the Gujarat based retail chain controlled by the Adani Group. The acquisition of Adani Retail will provide RIL with a readymade retail infrastructure and real estate to begin operations in Gujarat.

Reliance Communications (up 3.67% to Rs 459.10), L&T (up 2.61% to Rs 1459.10) and Infosys (up 1.39% to Rs 2236) were the other gainers.

Gujarat Ambuja was the top loser, down 1.66% to Rs 142 on 13.08 lakh shares. Its November 2006 cement despatches increased 9% to 1.31 million tonnes. The stock had hit a intra-day high of Rs 147.45

HDFC (down 1.48% to Rs 1600), Grasim (down 1.45% to Rs 2745) and HDFC Bank (down 1.41% to Rs 1085) were the other losers.

The Nikkei average lost 37.83 points or 0.23% to 16,265.76 while the Hang Seng advanced 241.46 points or 1.29% to 18,944.19

US stocks rose on Monday as a string of corporate takeovers and lower oil prices boosted optimism about the outlook for profits. The Dow Jones industrial average rose 89.72 points, or 0.74%, to 12,283.85. The Standard & Poor's 500 Index gained 12.41 points, or 0.89%, to 1,409.12. The Nasdaq Composite Index added 35.18 points, or 1.46%, to 2,448.39. The S&P 500 soared to a six-year high during the session, while the Nasdaq recorded its biggest one-day percentage gain in nearly a month, snapping a two-session losing streak.

On 1 December 2006, FIIs were net buyers of stocks to the tune of Rs 349.30 crore (gross purchases worth Rs 1,872.30 crore and gross sales of Rs 1,523.10 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs 304.33 crore (gross purchases worth Rs 666.34 crore and gross sales of Rs 362.01 crore).

Nifty settles above 4000

The BSE Sensex ended with small gain as buying demand continued at higher levels. Shares from auto, metal and sugar sector witnessed buying interest.

The BSE Sensex rose 29.55 points (0.21%) to 13874.33, which is an all time closing high. The Sensex opened with an upward gap at 13846.71 as buying continued following 148 point’s surge on Friday (1 December) and moved to an all time high of 13912.54. It low for the day is at 13828.90.

The S&P CNX Nifty rose 3.40 points (0.09%) to 4001, an all time closing high. It had advanced to an all time high of 4015.25 in intra-day trade.

The total turnover on BSE amounted to Rs 4808 crore boosted by two block deals of 20.09 lakh shares each were struck in ICICI Bank counter in the institutional segment at an average rate of Rs 884 per share.

Market breadth was strong on BSE with 1462 shares advancing, as compared to 1090 that declined. 81 shares remained unchanged.

Among the Sensex pack, 16 advanced while the rest declined.

Tata Motors was the top gainer, up 3.64% to Rs 873.55 on 7.02 lakh shares. It had surged to an intra-day high of Rs 887.20. Tata Motors’ vehicle sales rose 43% in November to 49,061 units compared with the same month a year ago. Sales of commercial vehicles rose 46 percent to 25,793, while sales of cars rose 48% to 19,475, helped by a surge in sales of its Indica model. Exports rose 9.6% to 3,793 units. Its ADR surged 5% on Friday on NYSE.

Reliance Energy (REL) (up 3.30% to Rs 558), NTPC (up 2.67% to Rs 152) and Bhel (up 2.53% to Rs 2584) were the other gainers.

Cement maker ACC rose 3.25% to Rs 1169 as investor’s bet that the recent cut in diesel and petrol prices will bring down transportation costs for cement firms. The company reported 2.7% growth in cement dispatches for November 2006 to 1.52 million tonne. Dispatches in the 11-months period January-November 2006 rose nearly 7% to 16.98 million tonne.

L&T gained 3.24% to Rs 1423.55 on reports that the company will foray into arms and ammunitions business.

Index heavyweight Reliance Industries rose 0.24% to Rs 1264 on 5.62 lakh shares. The company has restarted a fire-damaged hydrotreater unit at its Jamnagar refinery in Gujarat on 1 December. The unit had been shut since a fire on 25 October. Reliance had said in November that no major equipment had been damaged in the fire.

HDFC Bank was the top loser, down 1.84% to Rs 1100 on 2.66 lakh shares of which 2.40 lakh shares came through a block deal which was executed at Rs 1100 per share on BSE at 13:00 IST

Wipro (down 1.77% to Rs 590.25), Hero Honda (down 1.51% to Rs 760) and Satyam Computers (down 1.47% to Rs 460) were the other losers.

Parsvnath Developers was the second highest traded counter on BSE with total turnover of Rs 301.80 crore followed by Era Construction (Rs 129.35 crore) and Unitech (Rs 103.84 crore).

The Nikkei average fell 0.11% on Monday as exporters such as Honda Motor Co. Ltd. fell on a strong yen while investors flocked to domestic demand-related issues such as property and consumer finance stocks. The Nikkei shed 18.19 points to close at 16,303.59

Hang Seng index rose 11.91 points (0.06%) to 18,702.73

Oil prices gained slightly Monday as fresh comments from key OPEC members over the weekend suggested the oil cartel would push for further cuts in output at its next meeting later this month. Light, sweet crude for January delivery rose 2 cents to $63.45 a barrel on the New York Mercantile Exchange.

The latest data showed FIIs resumed buying after two-day outflow. FIIs bought shares worth a net Rs 258.10 crore on Thursday 30 November while Mutual funds sold shares worth a net Rs 88 crore on that day.

US stocks fell on Friday after a manufacturing index showed its weakest reading in more than three years and a Federal Reserve official said more rate hikes may be required to control inflation. The Dow Jones industrial average fell 27.80 points, or 0.23%, to 12,194.13, while the Standard & Poor's 500 Index dropped 3.92 points, or 0.28%, to 1,396.71. The Nasdaq Composite Index sank 18.56 points, or 0.76%, to 2,413.21.

Nifty hits 4,000 in late-trading

The S&P CNX Nifty pierced the 4,000 mark at the fag end of trading. The BSE Sensex surged over 150 points due to buying in auto scrips, PSU banks and index heavyweight Reliance Industries.

A smooth rollover from November contracts on Thursday to December series coupled with robust GDP growth data released during trading hours on Thursday, provided support on a day when Asian markets traded mixed.

The Sensex’s provisional closing was 13,853.81, a gain of 157.50 points. The barometer index struck a new record of 13,857.81 at 15:01 IST.

The Nifty had gained 43.20 points (1%), to 3,997.70, as per the provisional closing. It also climbed to a record high of 4,001.30.

The BSE clocked a turnover of Rs 4,451 crore.

Ranbaxy Laboratories surged nearly 4% to Rs 385.60, with the stock rallying in late trading after the company announced the acquisition of Be-Tabs Pharmaceuticals, the fifth largest generics company in South Africa, for $70 million.

Auto shares dominated the proceedings on decent-to-strong sales numbers for November. Bajaj Auto rose 4% to Rs 2,751 after its total sales rose 33% in November 2006, to 2,43,713 units from a year ago. Bike sales rose 36% to 2,14,321 units and sales of three-wheelers were up 71% at 29,384 units. Exports rose 56% to 36,086.

Hero Honda rose nearly 2% to Rs 757.35. Hero Honda today launched two variants of its CD series motorcycles, CD Deluxe and CD Dawn, in the 100-cc, entry-level segment.

Tata Motors surged 4% to Rs 844.25, on expectations of strong sales for November 2006. Tata Motors is likely to disclose its monthly sales figures today.

Car major Maruti Udyog added nearly 3% to Rs 952.60. In early-trade today, the car major reported selling 55,033 vehicles in November, a 16.1% rise from a year earlier. The company said domestic sales rose an annual 20.7%, to 52,574, but exports fell 35.7% to 2,459 units.

PSU banks were in demand after the latest data showed lower-than- expected rise in inflation. SBI was jumped 4% to Rs 1,369.90. The stock hit Rs 1,370, which is a life high for the scrip.

Cellular services provider Reliance Communications rose 3.7% to Rs 445.25. The scrip struck Rs 446.90, an all-time high. A staggering 16.8 lakh shares changed hands in the counter on BSE.

Reliance Energy gained 2.2% to Rs 540.05. As per reports, Maharashtra Electricity Regulation Commission has directed the company to discontinue levy of load management charges.

Reliance Industries gained 1.3% to Rs 1,262.25. A strong 7.4 lakh shares changed hands in the counter.