Good Evening - Apr 25 2007

Key indices were down marginally amid choppy trade as investors booked profits at every rise ahead of RBI's monetary policy announcement around noon. The RBI is expected to hold rates steady in its annual monetary policy meet as the current cycle of rate hikes has not completely seeped into the economy. However, some investors are worried that a rise in inflation rate to 6% again may force the central bank's hand otherwise. At 10:16AM, Sensex was 13939.83, up 11.50 points or 0.1%. Nifty was at 4091.10, up 6.00 points or 0.1%. The CNX Midcap and S&P CNX 500 indices were nearly flat. On the BSE, there were 659 advances and 375 declines in the morning session. The biggest Nifty gainers were Zee Entertainment Enterprises, up 1.8% at Rs 278, Tata Motors, up 1.7% at Rs 731, and Suzlon Energy, up 1.4% at Rs 1,161. Tata Motors gained on a report the company may set up a car unit in Egypt. Maruti Udyog was up 1.1% at Rs 775 ahead of its Jan-Mar earnings, which will be detailed today. The company's net profit for the fourth quarter is seen growing 18% to Rs 4.28 bn. Among losers, Siemens India was down 2.5% at Rs 1,038, and BHEL fell 1.2% to Rs 2,509. Siemens fell after it reported lower-thanexpected net profit in the quarter ended March. The company's second quarter net profit fell 8% on year to Rs 1.08 bn. HPCL and BPCL were down 1% each as crude oil prices Monday gained 3% on New York Mercantile Exchange. Sesa Goa shares were down 2.2% at Rs 1,702.85 despite reports of U.K.-based Vedanta acquiring Mitsui's 51% stake in the company for $981 mn (Rs 41 bn). Tata Motors was up 2.2% at Rs 734 on report the company is planning to set up a car making unit in Egypt. In the mid trading session, indices rose 1% led by gains in bank shares after the Reserve Bank of India today left key rates unchanged at its annual monetary policy review. Key indices were up 0.4% ahead of the policy. At around 12.10PM, Sensex was at 14053.36, up 125.03 points or 0.9%. Nifty was at 4126.80, up 41.70 points or 1.0%. Bank shares surged 6% after the Reserve Bank of India today left key rates unchanged and reduced risk weight on various small loans. PNB, up 4.5% at Rs 495, was the top Nifty gainer. SBI rose 4% to Rs 1,102 and ICICI Bank was up 3% at Rs 940. Oriental Bank of Commerce rose 7% and State bank of India was up 6.5%. CNX Bank Nifty was up 3%. BHEL, down 2.5% at Rs 2,477, was the worst hit on Nifty. Shares of automobile makers surged 2-5% after the Reserve Bank of India today kept key interest rates unchanged, which eased fears of further slowdown in sales volume due to higher financing costs. Construction shares were mixed after Reserve Bank of India today left its key rates unchanged in the monetary and credit policy for 2007-08 (Apr-Mar). However, real estate shares surged 2-4%. Maruti No. of Scrips Value (Crs.) Advances 512 7884 Declines 531 2727 Unchanged 29 43 Total 1072 10654 Udyog was off the day's highs after the company reported Jan-Mar net profit at Rs 4.48 bn against street expectations of Rs 4.28 bn. Key indices ended over 1% higher led by gains in bank shares after Reserve Bank of India kept key rates unchanged at its Annual Policy statement for 2007-08 (Apr-Mar). Despite a poor start and bouts of profit-booking in early trade, Sensex and Nifty gained strength towards noon ahead of the RBI policy. "Expect the unexpected from the RBI. The market rallied as interest rates have a linkage effect. Other sectors like capital goods, real estate and auto also gained because of this. However, the central bank said it will keep a close eye on inflation and money supply. Sensex ended at 14136.72, up 208.39 points or 1.5% from Monday, after touching a low of 13850.07 and a high of 14197.32 points intraday. The Nifty closed at 4141.80, up 56.70 points, or 1.4%. It moved between a low of 4057.70 and a high of 4162.15 points during the session. The Sensex closed above the 14000-level for the first time since Feb 22, while the Nifty ended above 4100 for first time since Feb 20. The turnover on BSE and NSE combined was Rs 151 bn, up 35% from Monday. The CNX Midcap Index ended up 1%, while the S&P CNX 500 Index rose 1.2%. Bank shares surged on value buying after RBI kept interest rates steady. SBI rose 7.4% at Rs 1,139, while PNB gained 7% at Rs 507. The CNX Bank Nifty ended 4.7% up. HDFC Bank ended at Rs 1,014, up 2.7%, ahead of its Jan-Mar earnings expected later today. The bank is seen reporting a net profit of 3.14 bn, up 195% on year. Zee Entertainment ended up 7.8% at Rs 295 on value buying after robust Jan-Mar results. Maruti Udyog ended at Rs 796, up 3.8%, after reporting March quarter earnings that exceeded analysts' expectations. Siemens, which opened weak on disappointing earnings reported late Monday, gained on value buying as brokerages have upgraded the stock. The worst-hit among Nifty stocks were MTNL, down 7.2% at Rs 150, Wipro, down 2.2% at Rs 555, and TCS, down 1.7% at Rs 1,226. MTNL shares fell, as its Jan-Mar net earnings fell short of analysts' expectations. The company's net profit rose 47% to Rs 2.06 bn, against expectations of a 15% rise, driven by other income. IT shares slipped today on concerns that overseas revenue will be hit if the rupee continues to strengthen against the dollar. Today, the Indian unit appreciated to as much as Rs 41.05 per $1, against Rs 41.67 per $1 on Monday. The BSE Infotech Index, down 0.6%, was the only sectoral index to end weak. Tech stocks ended in mixed trend. Infosys was up at Rs 2057.90 with volumes of Rs 269.01 crs, TCS was down at Rs 1224.85 with volumes of Rs 215.25 crs, Rolta was up at Rs 420 with volumes of Rs 194.32 crs, and Satyam closed down at Rs 474.55 with volumes of Rs 127.12 crs. Pharma stocks ended in mixed trend. Sun Pharma was down at Rs 1061.70 with volumes of Rs 51.64 crs, Ranbaxy closed up at Rs 349 with volumes of Rs 40.47 crs, Dr Reddy was down at Rs 713.50 with volumes of Rs 35.07 crs, and Cipla closed up at Rs 238.80 with volumes of Rs 30.96 crs. Banking stocks showed buying opportunity. In the Public Sector banks SBI closed up at Rs 1133.30 with volumes Rs 348.23 crs & Bank of India closed up at Rs 197.15 with volumes Rs 119.63 crs. In the private sector ICICI Bank closed up at Rs 950.10 with volume of Rs 209.64 crs & HDFC Bank closed up at Rs 1013.75 with volumes of Rs 173.65 crs. Auto Stocks ended up. Tata Motors closed up at Rs 741.60 with volumes of Rs.154.76 crs & M&M closed up at Rs 744.35 with volumes of Rs 44.67 crs. While in the 2 wheeler segment stocks, Baja Auto closed up at Rs 2442.70 with volumes of Rs 35.21 crs & Hero Honda closed up at Rs 665.95 with volumes of Rs 19.91 crs. Cement Stocks witnessed positivity. ACC closed up at Rs 816.95 with volumes of Rs 83.02 crs, GACL closed up at Rs 119.35 with volumes of Rs 80.50 crs, India Cement closed marginally up at Rs 170.80 with volumes of Rs 40.63 crs and Birla Jute closed up at Rs 233.65 with volumes of Rs 1.83 crs. Nifty ended at 4142 up by 57 points