The market shot back up today after Wednesday(31 January)’s 121-point fall, tracking firm global markets, which were boosted by the US Federal Reserve’s decision to keep interest rates steady. The Fed also abstained from voicing new concerns about inflation, signalling that a rate hike this year was less likely.
The 30-share BSE Sensex jumped 176.26 points (1.2%), to settle at 14,267.18. It is quite close to an all-time closing high of 14,282.72, which was reached on 25 Jan-2007. The Sensex's life high is 14,325.92, which was attained on 18 Jan-2007. The barometer index is up 480.27 points (3.4%) since the start of 2007. having closed at 13,786.91 on 29 December 2006, the last day of trading in 2006.
The S&P CNX Nifty advanced 54.50 points (1.3%), to 4,137.20. The Nifty’s record closing high was 4,147.70 on 25 Jan-2007.
The market sentiment was also firm after the Reserve Bank of India on Wednesday, 31 January 2007, upgraded its 2006/07 GDP growth forecast to 8.5 - 9.0% from 8%, along with raising the key short-term lending rate by 25 basis points. RBI upped the GDP forecast on Wednesday at the third quarter review meeting of the Annual Monetary Policy 2006-07. The Sensex had declined 121 points following the announcement on Wednesday.
In today's trade, the BSE Small-Cap index gained 29.02 points (0.39%), to 7,532.52. The BSE Mid-Cap index gained 31.69 points (0.5%), to 6,076.79.
Banking, telecom and cement pivotals led today’s surge. All BSE sectoral indices notched up gains. The BSE Bankex surged 102.31 points (1%), to settle at 9,588.10. A recovery in global metal prices boosted metal scrips, the BSE Metal index rising 152.79 points (1.6%) to 9,435.96. The BSE IT index advanced 51.06 (0.96%), to 5,348.23.
The market-breadth on BSE was a bit positive. For 1,333 shares rising on BSE, 1,319 declined. Just 41 shares were unchanged.
The BSE clocked a turnover of Rs 3985 crore, lower than Wednesday’s Rs 5263.55 crore.
State Bank of India (SBI) jumped in mid-afternoon trade soon after a the Union Cabinet approved the transfer of RBI’s stake in SBI to the Government by June-2007 at a valuation based on market prices. The stock was up nearly 6%, to Rs 1204. As many as 12.1 lakh shares changed hands in the counter on BSE.
Among private sector banks, HDFC Bank gained 2.9% to Rs 1109, and ICICI Bank gained 1.2% to Rs 952.
Hindalco surged nearly 4% to Rs 183, tracking recovery in global commodity prices.
Tata Motors surged 3.6% to Rs 909.45, ahead of unveiling sales numbers for January 2007.
Cellular services major Bharti Airtel gained 3.6% to Rs 732.95. In January 2007, the company reported robust Q3 Dec-2006 results.
Reliance Communications rose 2.7% to Rs 473.50. During trading hours on Wednesday, 31 January 2007, RCL reported a net profit of Rs 924 crore in the Dec-2006 quarter. Its board also approved a foreign listing of its unit, Flag Telecom. The company also informed that its board was looking at "unlocking value" in Reliance Telecom Infrastructure.
Reliance Energy advanced 2.3% to Rs 525.50, after the company said on Wednesday it had bagged two contracts worth Rs 4157 crore.
Index heavyweight Reliance Industries gained nearly 1% to Rs 1377.55.
ACC was up 1.4% to Rs 1035, but the stock came off the higher level after surging as much as 3.2% to Rs 1053 soon after the December-2006 quarter results were released this afternoon. ACC’s net profit surged to Rs 358.46 crore in the Dec-2006 quarter from Rs 173.45 crore in the Dec-2005 quarter.
Gujarat Ambuja Cements rose nearly 2% to Rs 139.70, after reporting 6.4% growth in shipments in the Jan-07 to 1.49 million tonnes.
Tata Steel shed 0.9% to Rs 459.50, but up from the session’s low of Rs 451.10 on short-covering. It had plunged 10.6% to Rs 463.95 on Wednesday after winning Anglo-Dutch steel maker Corus Group in an auction held in London. Tatas will pay $12.1 billion for Europe's leading steel producer. The price is said to be expensive and may put under strain Tata Steel's finances, at least in the short term.
IT shares were in demand. Wipro rose 1.6% to Rs 623, Infosys rose 1.2% to Rs 2273 and TCS gained 0.8% to Rs 1290.
Maruti notched up only marginal gains even as the company reported strong sales figures for January 2006. The stock rose 0.2% to Rs 939. The company said on Thursday, it sold 65,341 vehicles in January 2007, its highest ever monthly sales, up 30% from 50,109 units during the same month a year earlier. Maruti said it sold 62,248 units in the domestic market, up 28% from 48,526 units during the same month a year earlier. Its exports nearly doubled to 3,093 units from 1,583 a year earlier.
Hero Honda gained 0.8% to Rs 723.95. The company reported 19% growth in sales to 2.97 lakh units in January 2007 compared to 2.49 lakh units in January 2006.
Bajaj Auto shed 0.2% to Rs 2755. Bajaj Auto’s total vehicle sales in January 2007 rose 13% to 2,29,583 units from 2,03,777 units in the same month a year earlier.
Cummins India lost 0.4% to Rs 271.55. As many as 5.27 lakh shares changed hands in BSE in a block deal executed at Rs 273.
RCF jumped 7% to Rs 44.40, on the back of strong Q3 Dec-06 numbers. The net profit at Rs 64.60 crore, recorded a gain of a massive 132.8% over its corresponding last year figure of Rs 27.75 crore. Net sales grew 14.9% to Rs 929.97 crore.
ABB jumped 5% to Rs 3815. ABB unveils its Q4 Dec-06 results on 16 Feb-07.
Exporter Adani Enterprises rose 3% to Rs 237.35, after its December 2006 quarter net profit more than doubled to Rs 37.01 crore.
Dabur Pharma rose 5% to Rs 82.85, after its board approved the sale of its non-oncology formulations unit to Alembic for Rs 159 crore.
Tanla Solutions rose 2% to Rs 398.90. The scrip was up from a drop of 2% to a low of Rs 383.30 earlier during the day.
Matrix Labs rose 2.7% to Rs 222.75. The company scotched media reports on the company's plans for an equity buy-back.
Tata Tea rose 1.8% to Rs 724, after reporting a surge in consolidated net profit in the December 2006 quarter to Rs 117.19 crore (Rs 60.08 crore). Total income went up to Rs 1119.32 crore (Rs 812.02 crore).
Aurobindo Pharma ended flat at Rs 720.05, even after reporting a surge in net profit in the December 2006 quarter to Rs 60.12 crore (Rs 26.19 crore). Total income for the same quarter went up to Rs 554.73 crore (Rs 416.97 crore).
Jindal Saw rose 1.1% to Rs 465, after reporting 50% growth in net profit in the December 2006 quarter to Rs 60.13 crore (Rs 40.21 crore). Net sales for the same quarter rose to Rs 1193.62 crore (Rs 821.38 crore).
Thermax rose 1.5% to Rs 411.50, down from an early high of Rs 425. The company on Wednesday, 31 January 2007, reported 88% growth in net profit in the December 2006 quarter to Rs 55.45 crore (Rs 29.46 crore). Total income went up to Rs 558.17 crore (Rs 362.37 crore).
Paper Products was up 2% to Rs 409.50. Paper Products' board approved splitting each share into five, the company said late on Wednesday. The board of the company also approved a dividend of Rs 9 per share of Rs 10 face value.
Global ratings agency Standard & Poors (S&P), on 30 January 2007, raised India's sovereign local currency credit ratings to investment grade BBB-/A-3, with a stable outlook, citing strong economic prospects and an improving fiscal situation.
Global markets were firm on Thursday. In Europe, key benchmark indices in London, Germany and France were up between 0.8 - 1%. In Asia, key benchmark indices in Hong Kong, Japan, South Korea, and Singapore and were up between 0.7 - 1.7%.
Nymex crude was down 38 cents, at $57.76 a barrel.