Markets ends with small gains

The market ended the week with small gains, on account of mixed trend in index pivotals. However it was highly volatile during this week pulled by series of local and global events.

The Sensex gained 34.59 points for the week ended 25 March 2007 to settle at 14,338.45, while the NSE Nifty was up 33.65 points or 0.79% to 4,248.15

The week started on an upbeat note with the BSE Sensex advancing 115.19 points, at 14,418.6, on 21 May 2007, tracking firm Asian and European markets. The S&P CNX Nifty, advanced 46.40 points, or 1.10%, at 4,260.90, an all-time closing peak before striking an all-time high of 4,269.35 in intra-day trade. Shares from oil & gas, metal and FMCG space were in high demand.

The Nifty struck fresh all-time high of 4,281.60 a day later (22 May 2007), as strong buying for frontline pivotals continued. The Sensex rose 35.12 points, or 0.24%, to 14,453.72

The Sensex fell 90.46 points to 14,363.26 on 23 May 2007 as bulls took a breather and liquidating positions in the last hour of trade. Except for selective buying interest seen in metal and capital good sector, shares from auto, FMCG, oil & gas and banking space declined on profit taking.

Profit booking continued a day later 24 May 2007, with the BSE 30-share Sensex dipped a sharp 145.15 points to 14,218.11.

On 25 May, the Sensex staged a smart intra-day reversal to end with 120.34 point spurt to 14,338.45. Short covering triggered rally in second half of the day’s trading session.

Reliance Industries (RIL) advanced 1.61% to Rs 1,726.75. The scrip shrugged off media reports it is likely to miss the June 2008 deadline for commercial production of gas from the Krishna Godavari basin. The delay is mainly due to late deliveries of deepwater drilling rigs by Transocean Inc. RIL is relying on these oil rigs to the start the commercial production of gas from the basin.

State-run power generation major NTPC rose 5.20% to Rs 163.80. It is planning a foray into wind power with an investment of over Rs 12,000 crore, reports said. The company will have wind energy projects with a total capacity of 200-250 MW. Besides this, the state-run company is working on hydroelectric projects and a few biomass plants. It is also said to be working with Asian Development Bank, and is planning to rope in a private partner for the new venture.

State Bank of India (SBI) edged lower by 2.06% to Rs 1298.20. It has taken up a plan to reach 100,000 unbannked villages in the country within the next two years. It aims is to open at least one bank account for each family in these villages. SBI plans to access one lakh villages in India within the next two years. SBI’s strong Q4 March 2007 results announced on Saturday, 12 May 2007, has aided the rally.

Tata Steel advanced 5.63% to Rs 624.35 after its consolidated net profit had increased 41% to Rs 1103.50 crore in Q4 March 2007. Sales rose 21% to Rs 4980.44 crore in Q4 March 2007. Net profit jumped 20% to Rs 4222.15 crore in the year ended 31 March 2007. Sales increased 15% to Rs 17552.02 crore in FY 2007. The private sector steel major has reportedly received permission from Vietnam's government to work with Vietnam Steel Corp on a $3.5 billion steel complex in the southeast Asian country.

Tata Motors slipped 2.15% to Rs 726.80 after its Q4 March 2007 OPM shrank to 11.69% from 12.9% in Q4 March 2006. During trading hours on 18 May 2007, Tata Motors reported a 25.57% increase in consolidated net profit to Rs 2,169.99 crore in the year ended March 2007 compared with Rs 1,728.09 crore in FY 2006. Total income moved up to Rs 32,579.59 crore (Rs 24,012.97 crore). The group posted a net profit of Rs 649.81 crore in Q4 March 2007 as against Rs 522.60 crore in Q4 FY 2006. Total income increased to Rs 9,790.09 crore (Rs 7,866.06 crore).

Bajaj Auto slumped 5.08% to Rs 2170.65 triggered a flurry of rating downgrades by brokerage houses disappointed about the post-demerger structure and lack of clarity about future business plans. It reported an 11.1% fall in net profit to Rs 308.31 crore in the fourth quarter ending March 2007, from Rs 346.97 crore. Net sales rose 6.8% to Rs 2313.55 crore, from Rs 2165.86 crore.

PSU engineering major Bhel rose 3.11% to Rs 2702.15 ahead of its record date of 1 June 2007 for the proposed 1:1 bonus issue. The company has earmarked about Rs 3,200 crore for investment in the Eleventh Five-Year Plan period to increase manufacturing capacity from the current 6,000 Mega Watt (MW) to 15,000 MW per annum.

Debutante Hilton Metal Forging settled at a slight discount at Rs 67.60 on 24 May. It debuted at Rs 75 per share on the BSE today, 24 May 2007, up 7.14% from the IPO price of Rs 70. It hit a high of Rs 80 and Rs 66, respectively. The company specialises in the manufacture of forgings for the oil, petrochemical, pharmaceutical and automobile industries

India's wholesale price index rose 5.27% in the 12 months to 12 May, lower than the previous week's increase of 5.44% due to a drop in textiles and food product prices, government data showed on Friday, 25 May 2007. The figure was marginally higher than the market's expectation of 5.24%.

Annual inflation for the week ended 17 March 2007 was revised to 6.56%, from 6.46%. The annual inflation rate was 4.63% in the corresponding week of the previous year. The wholesale price index stood at 211.7 points in the week ended 12 May 2007.