Sensex ended slightly lower today amid mixed trend in various constituents of the barometer index. The market-breadth weakened in the latter part of the trading session after being positive in the first half. For 1,324 shares that declined on BSE, 1,219 rose. As many as 68 shares were unchanged. Losers outpaced gainers by a ratio of 1.08:1. At about 13:31 IST, the advance-decline ratio measured 1.03:1.
Sensex closed 25.70 points (0.19%) lower, at 13,680.83. The S&P CNX Nifty shed 9.30 points or 0.24% to 3,945.45.
After a bout of early volatility, the Sensex had turned range-bound during mid-morning and early-afternoon trade. Volatility reared its head again in late-trading.
The bellwether index had surged to a life high of 13,790.82 in early trade.
The BSE clocked a turnover of Rs 5,531.48 crore, boosted by a large block deal of 92.7 lakh in the FII-segment in ICICI Bank, at Rs 880.50. On Wednesday, the turnover was Rs 5184 crore.
The market sentiment remains bullish due to strong FII inflow and upward revision in earnings growth guidance of corporates by brokerages on the back of strong Q2 results.
FIIs continue to mop up Indian stocks notwithstanding apprehension of stretched valuations. The cumulative FII inflow for 2006 has reached $8.3 billion compared to a record inflow of $10.7 billion in 2005. However, correction may be on the cards following a sharp surge Sensex in the past few weeks. Sensex is up 45.5% in calendar 2006 so far.
In the near term, the market would take cue from as to what extent the ruling government is able to pass some of the financial sector reforms. The winter session will debate, among other things, the Banking Regulation (Amendment) Bill. The Bill proposes to increase the voting rights of foreign stakeholders in private banks, which is capped at 10% now. However, the Left parties are opposed to amendment to the Banking Regulation Act, fearing that increase in voting rights in private sector banks will lead to a takeover of these banks by foreign entities. The winder session has just began and it will last for almost one month.
Volatility may take centrestage in the next few days ahead of expiry of November 2006 derivatives contracts next Thursday (30 November). On Wednesday 22 November, the open interest in NSE’s futures & options segment hit all time high of Rs 57,158 crore. The previous record high was Rs 56,991 crore of 27 April 2006. 46% of the open positions are stock futures and 22% are index-based futures.
Bharat Heavy Electricals gained 2.2% to Rs 2,516.80, having hit a lifetime during the day.
Tata Steel lost 0.3% to Rs 471.05. The stock weakened in the latter part of the trading disappointed by the board meeting in Mumbai, which got over today afternoon without making any pathbreaking announcement about the Corus impasse. The stock had firmed up to Rs 479.90 in early-afternoon trade, a gain of 1.5% for the day ahead of a board meeting to discuss the fallout of CSN's bid for Corus.
Reports say an announcement from the company on its bid for the Anglo-Dutch firm was unlikely after today’s board meet. The same reports also add that Tata Steel may bide time till CSN tenders a counter bid, formally. CSN had last week made an offer at 475 pence per shares for Corus, topping Tata Steel’s 455 pence per share proposal.
Hero Honda surged rose nearly 3% to Rs 749.90. The company’s managing director today said margins will remain under pressure in the second half of the year. Rival Bajaj Auto gained 1.6% to Rs 2,640.
Private sector bank HDFC Bank surged nearly 4% to Rs 1,120.
Zee Telefilms rose 3.5% to Rs 361, after its demerger scheme became effective from 22 November 2006. Zee Telefilms' demerger scheme was approved by the Mumbai High Court on 17 Nov 2006.
L&T gained 2% to Rs 1,402. In an analysts meet held on Wednesday, L&T said its sales will grow at a higher rate of 20% in October 2006-March 2007 period, compared to a growth of 12% in the first half of the financial year after it executes a large part of the orders in the second half of the fiscal ended 31 March 2006. The company also said these orders entail a healthy margin of 8.5%.
Siemens (down 4.5% to Rs 1270) witnessed a sell-off in mid-afternoon trade after its Q4 results hit the market in afternoon trade. It reported 32% growth in net profit for Q4 September 2006 to Rs 137 crore (Rs 104 crore). The growth was more or less in line with market expectations. Siemens also said it would sell 100% stake in Siemens Public Communication Networks to Nokia Siemens Networks India, an equal joint venture with Nokia. The company’s board also approved the proposal for transfer of its 'communication – enterprise networks division’ (COM EN) in favour of a new fully-owned subsidiary to be incorporated by Siemens AG, Germany, (SAG) in India for this purpose. This decision follows global restructuring of this business by the parent, the company said.
Cellular services major Bharti Airtel dropped 2.2% to Rs 624, on profit taking, after a recent solid surge. Satyam Computer also shed nearly 3% to Rs 463.50, due to profit-taking.
Oil exploration major ONGC shed 1.3% to Rs 845, following a drop in crude oil price to below $60 a barrel, on Thursday.
TCS shed 0.4% to Rs 1,140.90. Microsoft has bought 10% stake in TCS China, where Tata Consultancy Services (TCS) holds a majority 65% stake. Chinese partners -- Uniware Co and two software parks -- will hold the remaining 25%. TCS’ Chinese operations will be merged with the new venture.
Software major Infosys ended flat at Rs 2225. The stock had weakened since Tuesday's pricing of a $1.6 billion swap of local stocks into American Depositary Receipts.
Reliance Industries lost 0.6% to Rs 1270. As per reports, RIL may get seven blocks in the sixth round of the New Exploration Licensing Policy (NELP-VI). The bids for the sixth round had closed on 15 September 2006.
State Bank of India (SBI) rose 0.5% to Rs 1,256 after Managing Director Yogesh Agarwal said on Thursday it may revise upwards its target for 30% growth in loans for the year ending March 2007.
Aditya Birla Nuvo gained 3.4% to Rs 1115. The company said on Thursday its board has decided to issue 2 shares for every 17 held on a rights basis at Rs 793 per share. Following the rights issue, the equity will go up to Rs 93.32 crore from Rs 83.50 crore.
United Phosphorus rose 7.1% to Rs 314.10 after it bought the global propanil herbicide business of DowAgroSciences LLC for about $25 million.
Donear Industries rose 14.3% to Rs 107.85, a day after its founders sold shares to foreign funds.
Indo Rama Synthetics rose 3.5% to Rs 54.40 after the announcement of a board meeting on Nov. 30 to consider merging Indo Rama Petrochemicals Ltd with itself.
Hindustan Organic Chemicals jumped 7% to Rs 31.90. The stock rose on huge volume of 56.1 lakh shares on BSE. In a clarification regarding media reports, Hindustan Organic Chemicals (HOCL) today said the government has sanctioned a financial restructuring package of Rs 250 crore for the company.
Networking firm Gemini Communications jumped nearly 13% to Rs 257. It had secured a Rs 20 crore order for computerisation of village council administration in Tamil Nadu.
Hindustan Zinc lost 1.2% to Rs 911. The company said on Thursday it plans to enter wind power generation by setting up a 75 megawatt unit worth Rs 400 crore. The project could be located in Gujarat or Karnataka, the company said in a statement. The company also said it will invest Rs 777 crore for de-bottlenecking of its smelters, installation of equipment at mines, and setting up an 80 Mw power plant.
Petron Engineering Construction rose nearly 3% to Rs 179 after the company on Thursday received a contract valued at Rs 9.95 crore, from Indian Oil Corporation (IOC).