Market posts second straight weekly loss

The market settled on a weak note as they posted weekly loss fir the second straight as markets across the globe were gripped under corrected. Volatility was intense throughout the week. Despite the market gaining in 4 sessions out of 5, they settled lower.

The benchmark index BSE Sensex lost 96 points or 0.63% at 15,138.40; while the S&P CNX Nifty lost 44 points or 0.96% at 4401.55, for the week ended 3 August 2007.

The BSE 30-share Sensex rose 26.34 points at 15,260.91 with shares from banking sector and select real estate stocks gained on speculative buying ahead of RBI’s monetary policy on Tuesday, 31 July 2007

On 31 July 2007, the BSE 30-share Sensex galloped 290.08 points at 15,550.99 despite the Reserve Bank of India (RBI) increasing the CRR (cash to reserve ratio) by 50 bps to 7%.

The 30-shares BSE Sensex plunged 615.22 points to settle at 14,935.77, on 1 August 2007, its third biggest single day point fall ever. It opened with a downward gap on intense selling pressure on global meltdown

Sensex gained 49.93 points at 14,985.70 on 2 August 2007, on support from global markets

Recovery continued a day later as the Sensex advanced 152.70 points at 15,138.40 on 3 August 2007, with all the sectoral indices on BSE posting gains. Shares from real estate, banking and cement were in demand.

State Bank of India (SBI), the country’s biggest commercial bank advanced 9.06% after it posted 78.6% jump in net profit to Rs 1,425.81 crore in Q1 June 2007 over Q1 June 2006. Net interest income was up 15% at Rs. 4,497.40 crore in Q1 June 2007 over Q1 June 2006.

Reliance Industries (RIL) declined 3.49% after it reported 28.1% growth in net profit to Rs 3264 crore in Q1 June 2007 over Q1 June 2006. Revenue rose 14.4% to Rs 28056 crore in Q1 June 2007 over Q1 June 2006. Gross refining margin (GRM) for the quarter was $15.4 per barrel, highest in the company’s history.

India's largest power equipment Bhel rose 3.61% as it posted 22% growth in net profit to Rs 288.9 crore in Q1 June 2007 over Q1 June 2006. At the end of Q1 June 2007, Bhel had an outstanding order book position of around Rs 62,400 crore.

India's second largest listed telecom service provider in terms of sales, Reliance Communications advanced 3.83% to Rs 561.40 after its net profit soared 76.58% to Rs 837.3 crore in Q1 June 2007 over Q1 June 2006. Total income rose 18.21% to Rs 3229.69 crore in Q1 June 2007 over Q1 June 2006.

IT stocks declined on fresh selling as the Indian rupee firmed against the US dollar. TCS, Wipro, Infosys and Satyam Computers, all edged lower.

Auto stocks suffered setback during the week on fall in monthly sales figures for July 2007. India's top bus and truck maker Tata Motors lost 3.64%. Its vehicle sales fell 6.6% in July 2007 to 42,098 units over July 2006. Sales of commercial vehicles dropped 3.8% to 20,705 units in July 2007 over July 2006. Exports fell 17% to 4,382 units.

India's top motorcycle maker Hero Honda Motors shed 3.99%. It sold 2,01,191 units in July 2007, down 14.5 % from 2,35,314 sold in June 2006. The announcement was made after trading hours.

Top utility vehicle maker Mahindra & Mahindra (M&M) declined 12.74%, despite its sales rising 46% in July 2007 to 19,163 units over July 2006. It was the top loser from the Sensex pack

However India’s top small-car maker Maruti Udyog rose 2.48%. It reported an 18% rise in sales in domestic market to 52,839 units in July 2007 over July 2006. It exported 5,070 units, up from 1,755 units in July 2006.

Everonn Systems India settled at Rs 478.45 on BSE, a 241.75% premium over the offer price of Rs 140, on 1 August 2007. The Everonn Systems India scrip debuted at Rs 245 on BSE and touched a high of Rs 560 and a low of Rs 245 during the day.

The central bank, on 31 July 2007 left the reverse repo rate, the rate at which it absorbs excess cash from banks, unchanged at 6%. It also kept bank rate unchanged at 6%. Reserve Bank of India (RBI) increasing the CRR (cash to reserve ratio) by 50 bps to 7% from 6.5% (100 bps is equal to 1%). The RBI said it will endeavor to contain inflation close to 5% in 2007-08 and in the range of 4–4.5% over the medium term. It also maintained its FY 2008 GDP growth forecast unchanged at 8.5%. The central bank also removed the Rs 3,000 crore cap on daily reverse repo transaction from 6 August 2007, the window through which it absorbs liquidity in a bid to check volatility in call money rates.

India's trade deficit in June 2007 widened to $7.33 billion, data released yesterday, 1 August 2007, showed. Imports surged 36.7% to $19.2 billion in June 2007, while exports rose 14% to $11.87 billion, over June 2006.

The Bank of England on 2 August 2007 left interest rates on hold at 5.75% as expected. On the same day, the European Central Bank (ECB) also has kept its benchmark interest rates unchanged at 4%.

As per the latest data released on 3 August 2007, wholesale price index stood at 4.36% in the week to 21 July 2007, compared with 4.41% the previous week The government also revised the inflation rate for the week ended 26 May 2007 to 5.15% from 4.85%