Heavyweights help limit damage

After staying weak throughout the day on continued selling pressure in index pivotals tracking weak global markets, the market recovered some ground at the fag end of the trading session on value buying. State Bank of India surged and Reliance Industries and Tata Steel came off lower level.

European markets recovered from their initial weakness. London's FTSE 100 was up 0.29% to 6,242.20 and DAX rose 0.23% to 7,452.94. Back home, all the sectoral indices on BSE settled lower, except BSE FMCG index.

The BSE 30-share Sensex lost 235.37 points or 1.55% at 14,903.03. It had opened with a sharp 245.80-point downward gap at 14,089.60 and slipped further to touch a low of 14,705.58 in early trade, a fall of 432.82 points for the day. The Sensex hit a high of 14,928.80 at 15:27 IST

The benchmark index oscillated in a range of 223.22 points for the day

The S&P CNX Nifty lost the Nifty lost 62.05 points or 1.41% at 4339.50. The Nifty August 2007 futures settled at 4322, a discount of 17.50 points as compared to spot closing

The market saw high volatility in the week ended 3 August 2007. The benchmark index lost 96 points, or 0.63%, to 15,138.40 in the week ended 3 August 2007. The S&P CNX Nifty lost 44 points, or 0.96%, to 4401.55. Despite the market gaining in 4 out of 5 days of the week, it settled lower for the week.

The market breadth was weak on BSE with 1,486 shares declining as compared to 1,151 that advanced, while 70 remained unchanged.

The BSE Mid-Cap index lost 0.79% to 6,552.93 while the BSE Small-cap Index slipped 0.62% to 7,842.59

The total turnover on BSE amounted to Rs 4256 crore as against to Rs 4186 crore on Friday, 3 August 2007

The NSE F&O turnover was Rs 37564.99 crore as compared to Rs 33935.22 crore on Friday, 3 August 2007.

Among the Sensex pack, 23 pivotals were trading in red, while 7 were in green.

State Bank of India, the country’s largest commercial bank, recovered sharply from its low of Rs 1592.60, and settled 3.75% higher to Rs 1697.30. It was the top gainer from Sensex pack. SBI today, 6 August 2007, announced a reduction as well as hikes in deposit rates based on maturities effective 9 August 2007. The bank has cut the deposit rate for one year to less than two years to 8% from 8.25%.

The bank has hiked the rate on deposits for 271 days to less than a year to 6.75% from 6.50% from the earlier time frame of 180 days to less than a year. The bank has introduced a new band - three years and up to 10 years - with an interest rate of 8.50% as against the earlier five years and above rate of 8.25%

However the BSE Bankex lost 1.06% to 8,055.14. ICICI Bank, the country’s largest private sector bank, slumped 2.97% to Rs 888.10 on 5.10 lakh shares, on fears the housing boom in India may cool in the wake of the US mortgage crisis. It was the top loser from the Sensex pack.

RBI deputy governor Rakesh Mohan said on Friday, 3 August 2007, excluding energy prices, whole price based inflation still continues to be above 6%, which is not acceptable. In its policy review on Tuesday, 31 July 2007, RBI said holding inflation within 5% in the fiscal year 2007/08 assumes priority in the policy hierarchy, while the medium-term goal was to reduce it to 4% to 4.5%.

HDFC bank (down 1.76% to Rs 1132), Federal Bank (down 1.53% to Rs 362.50), and Allahabad Bank (down 0.88% to Rs 90.55), were the other losers from banking pack

Tata Consultancy Services (TCS), the country’s largest IT services exporter, rose 0.94% to Rs 1107, off its low of Rs 1071.20. It has reportedly inked a multi-year deal with Geneva-based International Organization for Migration (IOM). Under the deal, TCS will build and implement an integrated financial management solution to meet the resource management challenges of IOM.

However the BSE IT Index lost 2.26% at 4,597.82. The rupee today, 6 August 2007 reacted sharply to the bearish equity market and moved downwards to 40.48/49 against the US dollar in morning deals.

Wipro, India’s third largest IT services exporter, slipped 2.14% to Rs 460.20. It is in talks to acquire US-based Infocrossing. The deal is likely to be about $450-500 million. Infocrossing is NASDAQ listed outsourcing solutions company.

Infosys (down 2.81% to Rs 1865.50) and Satyam Computers (down 1.81% to Rs 463.30) also edged lower.

India’s largest pharma company by sales Ranbaxy Laboratories rose 1.45% to Rs 371.55. On 30 July 2007, the company said it had started the production and sale of its first authorised generic drug Isoptin SR (Verapamil Sit) in the US. The generic market for Verapamil SR is worth $122.2 million.

ITC (up 1.39% to Rs 171.70) and Mahindra & Mahindra (up 1.20% to Rs 686) were the other gainers from Sensex pack.

The BSE Capital Goods Index declined 1.82% at 12,739.99. Suzlon Energy (down 3.43% to Rs 1198), Larsen & Toubro (down 2.60% to Rs 2455), Siemens (down 1.54% to Rs 1235), and Bhel (down 1.70% to Rs 1691), edged lower.

The BSE FMCG Index rose 0.37% to 1,945.26, and was the lone gainer among the sectoral indices on BSE. Dabur India (up 1.83% to Rs 102.85), Colgate Palmolive India (up 1.77% to Rs 410), ITC (up 1.40% to Rs 171.70) and Nestle India (up 1.31% to Rs 1260) advanced

Tata Steel, the world's sixth-largest steel maker, was up marginally by 0.05% to Rs 652. India's top private steel maker said on Friday, 3 August 2007, it would spend $85.7 million to buy a 35% stake in a Mozambique coal project run by Australia's Riversdale Mining. It would source coking coal from the project for Corus' plants in the UK and Europe, and also for its Indian units.

India's largest private sector company Reliance Industries was down 0.62% to Rs 1790. The stock recovered from its low of Rs 1752.10. As per reports, it plans to invest up to nearly $14 billion (Rs 56000 crore) in oil exploration and production business and laying transportation pipelines in the next two to three years.

Alpa Laboratories settled at Rs 55.60 on BSE, a discount of 18.25% over the IPO price of Rs 68. Its shares were listed on BSE at Rs 60, hit a high of Rs 65 and a low of Rs 54 during the day: 90.62 lakh shares were traded on the counter on BSE.

Shares from the refinery pack gained on market talks that the government may increase petrol prices by Rs 2 per litre and diesel prices by Re 1 per litre this week. Hindustan Petroleum Corporation (HPCL) moved up 0.75% to Rs 249.80 and Bharat Petroleum Corporation (BPCL) gained 1.02% to Rs 310.90. However Indian Oil Corporation slipped 0.49% to Rs 399.10

Real-estate stocks declined on fresh selling today, 6 August 2007. The BSE Realty index was down 3.16%, to 7,377.22. It was the top loser among sectoral indices on BSE. Unitech (down 2.96% to Rs 521.55), DLF (down 3.39% to Rs 581.90), Sobha Developers (down 3% to Rs 840) and Indiabulls Real Estate (down 3.08% to Rs 521.35) edged lower

Housing Development and Infrastructure (HDIL) slumped 5.32% to Rs 500.50 on media reports that the firm is planning to enter into a joint venture that would develop a 1.2-million sq ft property at Pune. HDIL would hold a 66% stake in the joint venture.

Mumbai-based digital post-production and VFX specialist Prime Focus rose 1.52% to Rs 830 on reports that it is gearing up for another acquisition. This time though the buzz is that the company promoters are targeting a facility in the United States of America.

JSW Steel declined 5% to Rs 645.50 on reports it is planning to raise around Rs 3,400 crore in the international markets. JSW is raising around $250 million through a debt market issue and has also lined up a $400 million-equivalent rupee loan. The company will also mop up another $200 million through equities from the international markets.

Ahluwalia Contracts India spurted 3% to Rs 525 on bagging Rs 88-crore orders from various companies.

Industrial Finance Corporation of India (IFCI) advanced 5% to Rs 63.75 after its board of directors in a meeting on Saturday, 4 August 2007 set a deadline of 14 September 2007 to receive expressions of interest (EOI) for offloading a 26% equity stake in the form of new shares to a strategic partner. Meanwhile, NSE has lifted the ban on building fresh derivatives positions in the counter.

Public sector Hindustan Copper (HCL) jumped 5% to Rs 103.95 on reports that it may be revived without any cash support from the government. A financial restructuring package worth Rs 637 crore is proposed by the ministry of mines that includes waiver of loan, interest, preference share capital, guarantee fee and reduction of capital. The combined measures are expected to substantially reduce HCL’s accumulated losses.

Orbit Corporation jumped 8.26% to Rs 396.65 on reports Reliance Retail, an unlisted arm of Reliance Industries, and JSW Steel were in race to buy its land and building in Mumbai for about Rs 800 crore.

TRF gained 3.84% to Rs 1000 after it bagged a Rs 115-crore order from National Mineral Development Corporation, Hyderabad, for the Bailadila iron ore project in Chhatisgarh. The company made the announcement on Saturday, 4 August 2007.

Prism Cement jumped 4.93% to Rs 59.65 on buying by domestic funds. As on 31 July 2007, Reliance Mutual Fund held 50.78 lakh shares, Sundaram BNP paribas Mutual Fund 25 lakh shares and SBI Mutual Fund 9.22 lakh shares in Prism Cement.

Nalco rose 1.89% to Rs 256.80 on reports of government finding a final solution to the company’s coal crisis. Reportedly, the coal ministry, in consultation with Indian Railways, Nalco and coal companies, has decided to provide coal to Nalco from other coal companies and sources to tide over shortages.

GMR Infrastructure rose 0.93% to Rs 939.95 on entering into a memorandum of understanding with Tamil Nadu Industrial Development Corporation for the development of a multi-product special economic zone in Krishnagiri District, Tamil Nadu.

Fortis Healthcare (FHL) gained 0.45% to Rs 89.95 on reports that the healthcare provider will float new company focusing on medical education with an investment plan of Rs 5000-6000 crore. Reportedly, FHL is planning to float a new company which will focus on medical education in its upcoming 10 medicities spread across the country.

Everest Kanto Cylinder declined 2% to Rs 1021 despite chalking out a major expansion and modernisation plan with a total project outlay of about $50 million.

Zuari Industries rose 2.35% to Rs 206.50, off its high of Rs 209, on entering into joint venture agreement with Israel Chemicals for establishment of water soluble NPK fertiliser plant with an initial capacity of 10,000 tonnes per year. Israel Chemicals (ICL) is a global group engaged in the development, manufacture and marketing of fertilisers, industrial products and metallurgy.

Videsh Sanchar Nigam lost 3.64% to Rs 432.50 on reports that the firm is planning to invest close $700 million in the submarine cable projects of a South African entity Infraco.

Anant Raj Industries rose 0.15% to Rs 1290 after it scheduled a meeting of board of directors on 10 August 2007 to mull stock split. The company made this announcement after market hours on Friday, 3 August 2007.

Jindal Steel & Power dropped 2.36% to Rs 3895 after it said it plans to seek shareholder approval on its proposal to start operations in the aviation business.

Asian stock markets slumped today, 6 August 2007, after downbeat US economic data, including the influential non-farm payrolls report, adding to fears of the US subprime mortgage crisis snowballing. Japanese shares also were hit hard by declines in exporters such as Canon Inc. and Sony Corp. as the yen strengthened against the US dollar. Nikkei fell 0.39% to 16,914.46.

Hong Kong's Hang Seng (down 2.67% at 21,936.73), Taiwan's Taiwan Weighted (down 1.28% at 8,841.73), Singapore's Straits Times (down 3.70% at 3,308.90) and South Korea's Seoul Composite (down 1.16% at 1,855.05) all edged lower.

However, Shanghai Composite was up 1.48% to 4,628.10 after surpassing 4,600 points in the morning session, to strike a record high of 4,629.74.

Wall Street shares plunged on Friday, 3 August 2007, after comments from a major investment bank fuelled the market's fears of a widening credit market crunch. The Dow Jones shed 281.18 points to 13,182.15. Broader stock indicators also fell sharply Friday, 3 August 2007. The Standard & Poor's 500 index dropped 39.14 points to 1,433.06, and the Nasdaq Composite index fell 64.73 points to 2,511.25.

Oil prices fell on Monday, 6 August 2007 in Asia, extending a decline prompted at the close of last week by news of a cooling US job market. Light, sweet crude for September delivery lost 68 cents to $74.80 a barrel in Asian electronic trading on the New York Mercantile Exchange, midmorning in Singapore.

FII inflow in the month of July 2007, totaled Rs 23,872.40 crore. FII inflow for the calendar year 2007 stands at Rs 41,836.10 crore, till 2 August 2007.