The market kept on surging as the day progressed, except for the odd hiccup in initial trade, which was due to weak global cues. Strong buying interest propelled the key indices to all time highs, with Sensex closing above the 15,700 mark and the Nifty above the 4,600 level.
Shares from the auto, real estate, capital goods sectors were at the forefront of today's rally. However, shares from the pharma pack saw some profit booking. Asian and European markets were trading on a mixed note.
The BSE 30-share Sensex surged 166.65 points or 1.07% to 15,732.20, an all time closing high. It opened lower at 15,560.57 and slipped to 15,477.91 in early trade, tracking weak global equities. But it started advancing from here to hit an all time high of 15,773.37 in late trade, as buying intensified breaching its previous all-time high of 15,683.03 hit on Friday, 20 July 2007.
The Sensex extended gained for the fourth straight session today, rising 442.38 points from a recent low of 15,289.82 on 17 July 2007.
The S&P CNX Nifty gained 53.30 points or 1.17% at 4,619.35, an all time closing high. It also struck an all time high of 4,628.45. The Nifty July 2007 futures settled at 4614, a slight discount of 5.35 points as compared to spot closing.
The market is expected to stay choppy in the near term ahead of the expiry of the July 2007 derivatives contracts on 26 July 2007. The total open interest in NSE’s F&O segment today increased to an all-time record of Rs 97,713.71 crore from Rs 90,641.76 crore on the previous day.
The BSE Mid-Cap Index ended at 6,849.12, up 13 points or 0.2% while the BSE Small-Cap Index ended at 8,234.45 up 46 points or 0.6%.
The market breadth was just about positive on BSE with 1,303 shares advancing as compared to 1278 shares declined, and 77 remained unchanged.
The total turnover on BSE amounted to Rs 4,825.29 crore as against Rs 5,791.29 crore on Friday, 20 July 2007. The NSE F&O turnover was at Rs 51,007.17 crore as ompared to Rs 48073.22 crore on Friday, 20 July 2007.
Among the Sensex pack, 21 advanced while the rest declined.
Shares from the capital goods pack surged, with the BSE Capital Goods index hitting an all-time high of 13,731.77. The BSE Capital Goods Index settled 4.03% higher at 13,596.20, and was the top gainer among sectoral indices on BSE.
State-run engineering major Bharat Heavy Electricals (Bhel) galloped to an all-time high of Rs 1,798 after it secured a Rs 1,829-crore order for manufacturing and setting up three 500-MW thermal power units in Haryana. The project is a joint venture between National Thermal Power Corporation, Harayana State Electricity Board and Indraprastha Power Generation Company. The stock settled 7.54% higher at Rs 1,772.30. It was the top gainer from the Sensex pack.
Engineering & construction major L&T galloped 7.42% to Rs 2,659, after striking an all-time high of Rs 2,675.
Areva T&D (up 7.20% to Rs 1646.55), Bharat Earth Movers (up 2.18% to Rs 1227.30), Alstom Projects (up 1.76% to Rs 843.15), and Punj Lloyd (up 2.50% to Rs 278.90) were the other gainers from the capital goods sector.
Hindustan Unilever (HUL) jumped 4.53% to Rs 203.10 after its parent announced after market hours on 20 July 2007 it is considering a plan to buy its own shares on 29 July 2007. HUL will also declare financial accounts for the second quarter and half year ended 30 June 2007 on that day.
State-run oil exploration major ONGC gained 2.49% to Rs 909 after the company said that it may have to shoulder lesser burden of fuel subsidies with the government agreeing to consider exchange rate losses while calculating the subsidy burden the upstream oil companies have to bear. Every one rupee appreciation against the dollar results in revenue loss of about Rs 900 crore to ONGC.
Domestic pharma major Cipla was the top loser from the Sensex pack. It shed 4.90% to Rs 191. The company posted a 30% drop in net profit to Rs 120 crore in Q1 June 2007 over Q1 June 2006. Net sales rose 5% to Rs 902 crore in Q1 June 2007 over Q1 June 2006 on the growth in active pharmaceutical ingredient (API) exports business. The results were announced on 21 July 2007.
Other pharma shares - Ranbaxy Laboratories (down 0.58% to Rs 350.50), and Dr Reddy’s Laboratories (down 0.15% to Rs 667.20), also edged lower. The BSE Healthcare Index was down 0.83% at 3,798.44, and was the top loser among the sectoral indices on BSE.
Infosys Technologies shed 1.83% to Rs 1,950.40 after both the companies, Infosys and Capgemini, denied rumors of Infosys mulling the acquisition of aquiring Capgemini.
ICICI Bank dipped 1.53% to Rs 970.05 despite posting a 25% rise in net profit in Q1 June 2007 to Rs 775.08 crore over Q1 June 2006, riding on increased fee-based income and retail lending. Total operating income rose 46.9% to Rs 9,281.42 crore in Q1 June 2007 over Q1 June 006. Fee income increased 35% to Rs 1,428 crore in Q1 June 2007 over Q1 June 2006.
ICICI Bank’s net interest margin (NIM) stood at 2.3% compared with 2.5% in Q1 June 2006. Net non-performing assets increased 112% to Rs 2,742 crore in Q1 June 2007 over Q1 June 2006 as high interest rates hit the bank’s retail borrowers. Net interest rose 16% to Rs 1,714 crore in Q1 June 2007 over Q1 June 2006. The results were announced on 21 July 2007.
Index heavyweight Reliance Industries (RIL) advanced 1.43% to Rs 1,914, on reports it may seek foreign partner for its deep water exploration blocks off the country's east coast. Reports indicate that global oil firms, including Chevron, have shown interest in partnering RIL for its Cauvery oil & gas assets.
Auto stocks gained on fresh buying on a view that interest rates have peaked for the time being. Auto major Bajaj Auto advanced 4.21% to Rs 2,425, while Tata Motors (up 0.65% to Rs 772) and Maruti Udyog (up 0.85% to Rs 835) also gained. The BSE Auto Index closed at 5,186.46 up 1.2%.
Debutante Suryachakra Power Corporation settled at Rs 22.82, a premium of 14.1% over the IPO price of Rs 20. The Suryachakra IPO had closed on 29 June 2007 with 2.18 times subscription. 6.10 crore shares were traded in Suryachakra Power Corporation counter on BSE today. The scrip topped volumes on BSE.
Shares from real estate pack advanced, with the BSE Real Estate index hitting an all time high of 8,398.36, on renewed buying momentum after KV Kamath, Managing Director and CEO of ICICI Bank, said on Tuesday, 17 July 2007, that interest rates seem to have peaked and should come down soon. The Reserve Bank of India (RBI’s) quarterly monetary policy review is due on 31 July 2007. BSE Real Estate settled 2.40% higher at 8,379.28.
DLF (up 4.07% to Rs 673.05), Unitech (up 2.22% to Rs 576.75), Mahindra Gesco Developers (up 6.40% to Rs 631.25) and Sobha Developers (up 1.63% to Rs 940.60) advanced from the real estate sector.
GMR Infrastructure spurted 8.94% to Rs 960. On 10 July 2007, GMR Infrastructure in consortium with Malaysia Airport Holdings and Turkey's Limak won the rights to build Istanbul's second airport with an 1.9 billion-euro bid. The consortium will build a new international terminal at the Sabiha Gokcen airport on Istanbul's Asian side and run the airport for 20 years. The winning bid does not include 18% value added tax.
Century Textiles & Industries jumped 7.52% to Rs 760.50 after its net profit surged 54.5% to Rs 107.91 crore in Q1 June 2007 over Q1 June 2006. Net sales rose 16% to Rs 836.84 crore over Q1 June 2006. The company declared the results during trading hours today, 23 July 2007.
ABB gained 6.04% to Rs 1136.10, the scrip gained on fresh positions build-up ahead of the company announcing its Q2 June 2007 results on 26 July 2007.
Fulford India rose 2.23% to Rs 537 after Reliance Capital Trustee Company on account of Reliance Pharma Fund acquired 63,100 shares of the company at Rs 525 per share on 20 July 2007 from Wipro chairman Azim Premji.
UTI Bank dipped 3.76% to Rs 624.80 after it priced its GDR issue at a discount to the ruling market price. It announced before market hours today, 23 July 2007 that it has successfully priced its offering of 14.13 million GDRs, aggregating $ 218.07 million. Each GDR, representing one underlying share, was priced at $15.43 and will be listed on the London Stock Exchange. This represents a discount of 1.7% to the closing price of the Bank's GDR on 20 July 2007.
In addition, the bank has determined the issue price of the equity shares to be offered in the proposed qualified institutional placement (QIP) to be Rs 620 per share. The size of the QIP will be Rs 1,752 crore.
Jindal Drilling & Industries jumped 4.77% to Rs 803 after scheduling a board meet on 30 July 2007 to consider stock-split. The board will also consider the unaudited financial results for Q1 June 2007 on that day.
SRF slipped 1.97% to Rs 156.90 after its net profit declined to Rs 56.02 crore in Q1 June 2007 over Q1 June 2006. Net sales slipped to Rs 404.65 crore from Rs 457.20 crore.
JK Lakshmi Cement gained 4% to Rs 157 after its net profit jumped 76% to Rs Rs 68.46 crore in Q1 June 2007 over Q1 June 2006. Net sales rose 41.2% to Rs 266.42 crore in Q1 June 2007 over Q1 June 2006.
Union Bank of India’s gained 4.67% to Rs 155.65 after its net profit rose 34.9% to Rs 225.10 crore in Q1 June 2007 over Q1 June 2006. Total income was up 25% to Rs 2,289.48 crore in Q1 June 2007 over Q1 June 2006.
Electrosteel Castings surged 6.93% to Rs 455.65 after its board approved splitting each share of face value Rs 10 into 10 shares of Re 1 each.
IVRCL Infrastructures & Projects rose 2.83% to Rs 415.90 on bagging orders of an aggregate value of Rs 641.39 crore for irrigation works by the government of Andhra Pradesh. The order is to be executed by IVRCL through a joint venture.
Asian indices were also trading mixed today, 23 July 2007, after a sharp fall on Wall Street on Friday, 20 July 2007. Japan's Nikkei tumbled 1.07% to 17,963.44.
Hang Seng gained 0.32% to 23,365.56, after initial weakness
China's Shanghai Composite jumped 3.81% to 4,213.36, even as the central bank raised borrowing costs, effective Saturday, 21 July 2007, in the latest of a series of moves aimed at capping inflation and preventing the world's fourth-largest economy from overheating.
European indices were trading on a mixed note.
Shares on Wall Street declined sharply on Friday, 20 July 2007, retreating from record levels following disappointing results from long-time favorites Caterpillar Inc. and Google Inc. The Dow fell 149.33 points, or 1.07%, to 13,851.08. Broader stock indicators also lost ground. The S&P 500 index fell 18.98 points, or 1.22%, to 1,534.10, and ended the week 1.19% lower. The Nasdaq Composite index fell 32.44 points, or 1.19%, to 2,687.60
Emerging markets-dedicated funds saw their second best inflows ever in the week ending 18 July 2007, after setting their all-time high just the previous week. Inflows to emerging markets equity funds exceeded outflows by $3.3 billion in the week ended 18 July 2007. More than half of this net inflow - a record high of $1.8 billion went to funds dedicated to Asia ex-Japan.
Meanwhile, due to pressure from Left- backed trade unions, the Employees Provident Fund (EPF) board today, 23 July 2007 agreed to continue paying 8.5% interest rate to its nearly four crore subscribers for fiscal 2006-07 as well. The EPF has a corpus of Rs 94,000 crore including pension fund.