Nifty outshines Sensex

The market extended recent solid gains and both the key indices Sensex and Nifty struck all-time closing highs. But the market came sharply off higher level in late trade after it had struck lifetime high in late afternoon trade. A sharp fall in Reliance Industries (RIL) pulled the market off higher level in late trade.

Mid-cap and small-cap indices touched all-time highs today. Market breadth was strong. European markets were trading in red. Asian markets were firm today.

The 30-shares BSE Sensex ended up 37.52 points or 0.22% at a fresh closing high of17,328.62. It had hit a fresh all-time high of 17,425.34 in late afternoon trade. It hit a low of 17,144.58 in the day.

The broder based S&P CNX Nifty today scoared over Sensex. Nifty ended up 47.6 points or 0.95% at a fresh closing high of 5,068.95. It hit an all-time high of 5089.30 today. Nifty's near 1% rise was much higher than Sensex's 0.22% gain.

The BSE Mid-cap index rose 106.21 points or 1.43% to 7,528.64. It hit a all-time high of 7554.54 today. The BSE Small-cap index rose 84.59 points or 0.93% to 9,184.52. It hit an all time high of 9,218.52 today. Both these indices outperformed Sensex.

Sectoral indices on BSE displayed mixed trend., BSE Health Care Index (up 1.42% at 3,837.15),BSE TecK index (up 0.39% to 3,780.54), BSE Oil and Gas Index (up 1.26% at 9,682.95) ,BSE PSU index (up 1.97% to 8,363.25), outperformed the Sensex.

BSE Capital Goods Index (up 0.06% at 14,688.96), BSE IT Index (down 0.64% at 4,598.11), BSE Metal Index (down 0.33% at 13,899.77), BSE Consumer Durables index (down 0.83% to 4,764.56), Bankex (down 0.78% to 9,395.78) BSE Realty index (up 0.04% to 9,181.83), and BSE FMCG Index (down 0.47% at 2,151.10), BSE Auto Index (down 0.3% at 5,316.33) were underperformers.

In opening trade, the market had come off higher level soon after a firm start as political concerns took centrestage wth CPI (M) veteran Jyoti Basu on Saturday, 29 September 2007, ruling out the possibility of any compromise on the issue of Left’s opposition to the Indo-US nuclear deal. It had firmed up again later. The market had opened a firm note after tame US inflation data reinforced expectations of another cut in US interest rates.

While the operationalisation of the nuclear deal has been put on hold by the government pending the findings of a committee, it cannot be stalled forever.

The Communists want the government to defer the Indo-US nuclear accord by six months and have warned of a political crisis if it is implemented. The committee set up of the government to look into Left Front’s concerns over the deal is scheduled to hold its next meeting on 5 October 2007.

On the flip side, political turmoil arising from nuke deal will not impact India’s basic economic fundamentals though some infrastructure projects may get delayed. India’s economy is expected to post strong growth for a long period of time mainly due to favourable demographics.

BSE clocked a turnover of Rs 7197 crore compared to Friday (28 September 2007)'s Rs 7,951.21 crore.

Nifty October 2007 futures were trading at 5062.95, at a discount of 6 points or 0.01% to the spot price of 5,068.95.

NSE F&O clocked a turnover of Rs 61,451.29 crore today, 1 October 2007 compared to a turnover of Rs 56,998.5 crore on 28 September 2007.

Out of the 30 share Sensex stocks, 15 advanced and the rest declined.

Market breadth was strong on BSE: 1605 scrips advanced, 1126 declined while 343 scrips remained unchanged.

India’s largest private sector company by market capitalisation and oil refiner, Reliance Industries (RIL) was down 0.3% to Rs 2,289.35. The stock was volatile today. It moved between a low of Rs 2264.25 and high of 2327.80.

Reliance Retail, a subsidiary of the Mukesh Ambani-promoted Reliance Industries, has reportedly, sacked 400 staff in West Bengal due to its inability to start operations following stiff opposition from political parties and local traders. RIL had earlier laid off 1000 staff in Uttar Pradesh.

Reliance Energy (REL) galloped 11.94% to Rs 1,349.40. It struck an all time high of Rs 1,385 today. It was the top gainer from the Sensex pack. Reliance Power, the Anil Ambani group firm, in which REL holds 50% stake, will raise $2-$2.5 billion in the country’s largest power sector IPO. Reliance Power, which is implementing a clutch of large power generation projects across the country, will sell 10-15% to the public and institutions in the coming months to fund various projects.

State-run power producer NTPC rose 6.49% to Rs 206 on hopes of higher valuation after Reliance Energy's proposed initial public offering of its subsidiary Reliance Power. It touched an all-time high of Rs 207.90 today.

ONGC rose 4.09% to Rs 997.10. It hit an all time high of Rs 1,015 today.

Reliance Communication (up 4.48% to Rs 611.90) was another major gainers from the Sensex pack.

State Bank of India (down 2.93% to Rs 1,893.50) was the top loser amongst the Sensex pack. ITC (down 1.98% to Rs 185.95,Bajaj Auto (down 2.19% to Rs 2,484.10), Bharat Heavy Electricals (down 2.1% to Rs 1,990.05) and, HDFC Bank (down 2.44% to Rs 1,404) were the major losers amongst the Sensex pack.

Reliance Capital rose 14.15% to Rs 1,808.65 on BSE, on continued buying interest. It hit an all time high of Rs 1,850.95.

IT bigwigs like Infosys (down 0.19% to Rs 1,893.10), TCS (down 1.72% to Rs 1,038.55), Satyam (down 0.17% to Rs 442.75) , Wipro(down 1.28% to Rs 453.95) edged lower.

Among side counters, Binani Industries (up 20% to Rs 270), Spentex Industries (up 20% to Rs 34.50), Hatsun Agro Products (up 20% to Rs 259.55), Brady & Morris (up 20% to Rs 229.40) and SPL Polymers (up 20% to Rs 7.56) spurted.

India's third-biggest motorbike maker TVS Motor rose 1% to Rs 70.75 even after its sales declined 29% to 1,15,091 two-wheelers in September 2007, over September 2006.

Mahindra & Mahindra was up 1% to Rs 759.20 on reports that the group is planning to hive off its logistics division into a seperate company. Mahindra & Mahindra reported 25% rise in sales to 19,871 units in September 2007 over September 2006.

Maruti Suzuki India India's biggest car maker declined 0.7% to Rs 991.75 on recording 13.5% rise in sales to 67,448 vehicles in September, 2007 over September 2006.

Gulf Oil Corporation soared 3.4% to Rs 1538.25 on reports the firm is in talks with infrastructure and real estate funds for investments in the company’s mining and construction verticals.

Sterlite Optical Technologies rose 1.73% to Rs 241.20 after acquired 58.70% holding in equity share capital of Sterlite Infrastructure (SIPL). With this investment, SIPL has become subsidiary of the company. SIPL is into business pertaining to infrastructure projects and telecommunications.

Kavveri Telecom Products rose 4.29% to Rs 159.15. It said on Monday, 1 October 2007, it had acquired the technology, intellectual property rights and patents of cellular infrastructure base station Antenna Line of erstwhile Sigma Wireless, Ireland from US-based PCTEL Inc.

AVT Natural Products was up 7.45% to Rs 98.85 after it announced Friday, 28 September 2007, commencement of marigold flower processing unit AVT Bio-Products in Heilongjiang Province of North East China.

Compact Disc India down 2.5% to Rs 87.70. It announced today before the market hours that meeting of the board will be held on 15 October 2007 to consider the rights issue.

Dr. Reddys Laboratories was up 1.46% to Rs 658.45 after it announced on Friday, September 28, 2007, it has expanded its operations in the ASEAN region with the opening of its 41st overseas office in Manila, Philippines.

Bajaj Auto, India's second-biggest motorcycle maker declined 2.19% to Rs 2484.10 after its sales declined 23% to 2,32,496 units in September 2007 over September 2006.

Time Technoplast was up 1.82% to Rs 705.20 after it said on Monday, 1 October 2007 it bought a 74% stake in battery maker NED Energy for Rs 50.30 crore.

ICSA India declined 1.19% to Rs 1,676.55 after it secured work orders for a total contract value of Rs 93.47 crore from Chhattisgarh State Electricity Board, Raipur.

Lancor Holdings surged 7.12% to Rs 452 after its board approved share split from the face value of Rs 10 each to Rs 2 each.

MIRC Electronics up 12.98% at Rs 24.80 on reports that two of the three founders of the firm have broken off with the third and started talks with rival Videocon and Future Capital to sell a substantial stake in the main holding company that holds stake in the MIRC Electronics

HTMT Global rose 1.06% to Rs 434.45 after it said it will participate in applying telecom license.

India's top motorcycle maker, Hero Honda Motors declined 1.56% to Rs 733.15 even after it reported 4.3% rise in sales to 3,14,567 in September 2007 over September 2006.

Asian markets extended their recent rally on Monday, 1 October 2007. South Korea's Seoul Composite (up 0.83% at 1,962.67, Singapore's Straits Times (up 1.32% at 3,755.22) and Taiwan's Taiwan Weighted (up 0.13% to 9,488.50) and Japan's Nikkei (up 0.36% at 16,845.96 after it opened on a weak note) edged higher.

European markets, which opened after the Indian markets, slipped into the red again after Indian markets closed today. Earlier, European markets had recovered from a subdued start. Germany’s DAX (down 0.14% to 7,850.33), UK’s FTSE 100 (down 0.15% to 6,457.50) and France’s CAC (down 0.44% to 5,670.79) edged lower.

US stocks and bonds slipped as the dollar fell to a record low on Friday, 28 September 2007, amid concerns that US economic growth would continue to slow. The Dow Jones industrial average lost 17.31 points, or 0.12%, at 13,895.63. The Standard & Poor's 500 Index fell 4.63 points, or 0.30%, at 1,526.75. The Nasdaq Composite Index fell 8.09 points, or 0.3%, to 2,701.50.

US crude for November 2007 delivery lost $1.23 to settled at $81.65 a barrel on Friday, 28 September 2007, below its all-time high of $83.90.