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Thursday, August 30, 2007

Market rallies for fourth consecutive session.


The market settled with gains for the fourth straight session on continued buying demand for index pivotals. It saw volatile swings in fag session of day, after staying firm throughout the day. It had opening on a firm note today, 30 August 2007, as US stocks rallied overnight on expectation that the US Federal Reserve would cut rates in September 2007 to cushion the impact of the subprime crisis on the broader US economy.

The BSE Sensex settled above the 15,100 mark while the S&P CNX Nifty ended above the 4,400 level. Turnover was also healthy today.

The BSE 30-share Sensex up 128.70 points or 0.86% at 15,121.74. It opened with a 175.65-point upward gap at 15,168.69 and advanced further to hit a high of 15,200.81. The index touched a low of 15,053.98. It oscillated in a range of 114.71 points for the day

It has now urged 957 points in four trading sessions, from its close of 14,163.98 on 23 August 2007.

The S&P CNX Nifty up 53 points or 1.22% at 4,412.30. August 2007 futures & options (F&O) contracts expired today. The Nifty September 2007 futures settled at 4350, a sharp discount of 62.30 points as compared to spot closing

The total turnover on BSE spiked to Rs 5,378 crore as against Rs 4,815 crore yesterday, 29 August 2007.

The NSE’s F&O turnover also surged to Rs 71,282.94 crore as compared to Rs 76,510.22 crore yesterday, 29 August 2007.

The market breadth was strong on BSE, with 1,578 shares advancing as compared to 1112 that declined, while 84 remained unchanged.

The BSE Mid-Cap Index rose 0.54% to 6,485.44, the BSE Small-Cap Index gained 1.06% to 7,957.96

All the sectoral indices on BSE settled with gains, except the BSE Realty index, which lost 1.28% to 7,116.08

BSE Capital Goods Index (up 0.45% at 13,306.72), BSE Health Care Index (up 0.43% at 3,501.17), BSE Auto Index (up 1.38% at 4,776.70), BSE Metal Index (up 0.83% at 11,297.31), BSE FMCG Index (up 0.67% at 1,949.32), BSE Oil and Gas Index (up 0.50% at 7,976.43), BSE IT Index (up 1.06% at 4,552.30) and BSE Bankex (up 1.29% at 7,751.50), all posted gains

Among the 30-member Sensex pack, 21 advanced while the rest declined.

Mahindra & Mahindra, the country’s top tractor maker by sales, rose 2.47% to Rs 672 on 1.15 lakh shares. It was the top gainer from Sensex pack. The stock rose on reports that it is conducting due diligence on Jaguar and Land Rover, put up for sale by Ford. Other potential bidders include private equity groups TPG Capital, Cerberus Capital Management, Ripplewood Holdings, One Equity Partners and Tata Motors.

India's top truck maker Tata Motors rose 0.59% to Rs 679, off its day’s high of Rs 699.

Banking shares advanced on fresh buying on a view that interest rates have peaked. ICICI Bank (up 1.46% to Rs 869.50), HDFC Bank (up 2.02% to Rs 1180), Syndicate Bank (up 2.77% to Rs 76), Allahabad Bank (up 3.41% to Rs 88), Canara Bank (up 1.54% to Rs 240) and Andhra Bank (up 2.11% to Rs 82.35), advanced.

Market expectations peg inflation rate at 3.94% for 12 month to 18 August 2007 compared to previous week’s 4.1%. The data will be released by the government tomorrow, 31 August 2007, afternoon.

India’s largest pharma company by sales Ranbaxy Laboratories rose 1.60% to Rs 378. Recently, US Food and Drug Administration gave approval to the company to make and market two drugs hydrocodone bitartrate and acetaminophen prescribed for pain relief. Total annual market sales of the drugs were $391 million.

India's largest firm by market capitalisation and oil refiner Reliance Industries (RIL) slipped sharply just before closing bell. It was up marginally by 0.11% to Rs 1891.80 on 8.96 lakh shares, after surging to a high of Rs 1924. A newspaper reported on Wednesday, 29 August 2007, the government is likely to approve a pricing formula for the company's natural gas within a few days. The stock had hit an all- time high of Rs 1948 on 26 July 2007.

India’s second largest software services exporter Infosys Technologies rose 1.42% to Rs 1860. As per report, Infosys Technologies plans to increase billing rates for new customers by 3-4% due to the sharp appreciation of the rupee against the dollar. The billing rates for existing contracts could increase by 2-3%. Infosys gets about 60% of its revenue from the United States.

Tata Consultancy Services (TCS), the country’s leading software services exporter rose 0.80% to Rs 1040 after it won a deal worth Rs 574 crore ($ 140 million) over a multi period from BSNL to provide comprehensive range of telecom services.

The rupee was hovering at 41.13, slightly weaker than Wednesday (29 August 2007)’s close of 41.10/41.11

Cipla, the country’s third largest pharma company by sales lost 2.50% to Rs 165.50 on 8.71 lakh shares. It was the top loser from the Sensex pack.

Reliance Energy (down 1.80% to Rs 768.10), State Bank of India (down 0.74% to Rs 1563.25) and Bharti Airtel (down 0.53% to Rs 875) were the other losers from the Sensex pack.

India’s largest power equipment maker by sales Bhel declined 0.87% to Rs 1835.30, off the session’s high of Rs 1884, after the company won a Rs 1990-crore order for supply and installation of power equipment to a project in southern India.

Tata Steel, the world's sixth largest steel manufacturer lost 0.51% to Rs 656.50. It came off sharply from day’s high of Rs 679.80. It had surged 9.2% to Rs 659.85 yesterday, 29 August 2007 after it recorded a consolidated net turnover of Rs 31,155 crore for Q1 June 2007, an increase of 442% over the same period last year, on the back of Corus acquisition.

Its consolidated operating profit surged 186% to Rs 4,904 crore in Q1 June 2007 over Q1 June 2006. The results also include an extraordinary item of Rs 4,121 crore primarily representing actuarial gains due to increase in yield rates on bonds held by various pension funds of Corus.

Three block deals of 18.85 lakh shares each were struck in Axis bank counter at an average rate of Rs 614 per share on BSE in opening trade. The stock rose 2.44% to Rs 627 on high volume of 82.33 lakh shares.

Sugar shares surged for the second consecutive day on reports that a group of ministers had recommended mandatory blending of 10% ethanol with petrol by October 2008 to deal with the massive oversupply of sugar.

Dwarikesh Sugar (up 10.26% to Rs 56.40), Sakthi Sugar (up 8.93% to Rs 78.70), Triveni Sugar & Industries (up 11.19% to Rs 80), Balrampur Chini Mills (up 2.68% to Rs 61.35), Shree Renuka Sugars (up 0.45% to Rs 534.50), Dhampur Sugar Mills (up 5.17% to Rs 54.90) and Bajaj Hindustan (up 2.54% to Rs 137.50) gained.

In a related move, the GoM has also suggested that the import duty on imported industrial ethanol be reduced from 7.5% to 5%.

Puravankara Projects settled at Rs 361.75 on BSE, a discount of 9.56% over the IPO price of Rs 400. On BSE, 71.23 lakh shares of the scrip were traded. The stock debuted at Rs 399 on BSE, a discount of 0.25% over the IPO price of Rs 400. It hit a high of Rs 399 and a low of Rs 357.55. The IPO had ended on 8 August 2007 with 1.91 times subscription.

Among the side counters, Kemrock Industries (up 10.63% to Rs 342), Rasoya Proteins (up 15.88% to Rs 63.50), Aristocrat (up 10% to Rs 57.20), Kirloskar Electric (up 10% to Rs 231) and Aarvee Denim (up 10% to Rs 88.60) gained.

Cambridge Solutions (down 8.64% to Rs 111), Jindal Worldwide (down 7.87% to Rs 117), Fortis Healthcare (down 7.22% to Rs 81), Khaitan Industries (down 6.63% to Rs 50) and TCI Industries (down 5% to Rs 3691) declined.

VSNL surged 5.59% to Rs 403 after its ADR gained 3.65% to $18.47 overnight on New York Stock Exchange (NYSE).

ICSA (India) surged 5.60% to Rs 1752.10 after its board approved 5-for-1 stock split.

Bartronics India rose 2.57% to Rs 197.95 after its board approved the issue of foreign currency convertible bonds (FCCB),Global depository receipts (GDRs) and/or American depository receipts (ADRs) of $ 50 million.

Real estate major DLF slipped 0.80% to Rs 591. It will develop a 250-room super luxury five-star hotel with premium brand Four Seasons Hotels and Resorts in Gurgaon at an investment of Rs 600 crore. The hotel project will be developed in around 10 acre land at DLF Golf Link in Gurgaon by DLF Hotels - the hospitality arm of DLF.

Escorts gained 4.45% to Rs 89.25. Yesterday, 28 August 2007, National Stock Exchange banned building fresh positions in the company’s derivatives contracts as the open interest crossed 95% of the position limit.

GlaxoSmithKline Pharma rose 3.35% to Rs 1162. The company, recently launched anti-cervical cancer vaccine Cervarix in Southeast Asia. The drug combats the virus that is responsible for over 70% of cervical cancer cases worldwide.

Andhra Cement jumped 7.10% to Rs 37 after a block deal of 66 lakh shares at Rs 40 per share on BSE in opening trade. At the strike price of Rs 40 per share, the total deal size works out to Rs 26.40 crore.

Sun TV Network rose 5.47% to Rs 329 after it said during trading hours today, 30 August 2007, its unit has bought 48.9% stake in Red FM to expand its radio FM business to the north, west and east Indian markets.

Karuturi Networks advanced 3.80% to Rs 194 on reports that it has acquired Dutch floriculture firm Sher Agencies in a deal worth $69 million to become the world's largest rose producer.

Vijaya Bank surged 5.36% to Rs 56 after its chairman and managing director Prakash P. Mallya said on Wednesday, 29 August 2007, the bank plans to sell its stake in Principal Pnb Asset Management Company.

Software services firm 3i Infotech slipped 0.15% to Rs 138.85. It said after trading hours on Wednesday, 29 August 2007, it had acquired 51% in back-office services firm HCCA Business Services

Dry-cell battery maker Eveready Industries lost 4.12% to Rs 52.40 after it said during trading hours today, 30 August 2007, its board would meet on 6 September 2007 to consider raising funds through issue of shares and warrants to promoters and other investors.

For the second day India Foils gained on reports yesterday that Ess Dee Aluminium was in the final stages of negotiations to acquire it. The stock surged 5% to Rs 11.13 today. Reportedly, Ess Dee would use the Rs 81.08 crore that it raised by selling a 5% stake to Morgan Stanley for the acquisition. It had surged 5% yesterday, 29 August 2007.

New Delhi Television vaulted 3.47% to Rs 351.95 on reports that UB group may announce 5-year advertisement commitment of Rs 100 crore to company’s forthcoming lifestyle channel, NDTV Good Times.

Construction firm Gammon India rose 2.06% to Rs 455. It entered the hospitality sector by forming an alliance with the US-based Wyndham Hotel Group International, Inc., to develop affordable or budget hotels. The Wyndham Group, which runs more than 6,500 hotels under 10 brands in six continents, is one of the largest hospitality companies in the world.

Most of the Europe markets were trading higher today, 30 August 2007. Key benchmark indices from France (up 0.26% to 5,534.56) and United Kingdom (up 0.21% to 6,145) advanced. Germany’s DAX slipped 0.09% to 7,432.69

All Asian markets were trading higher today, 30 August 2007, except Singapore's Straits Times (down 0.41% at 3,321.15). Hang Seng (up 2.02% at 23,486.29), Shanghai Composite (up 1.14% to 5,167.57), Japan's Nikkei (up 0.88% at 16,153.82), Taiwan Weighted (up 1.48% at 8,772.20), and South Korea's Seoul Composite (up 0.85% at 1,841.70) edged higher.

US stocks rallied across the board on Wednesday, 29 August 2007 boosted by strong gains in technology and energy shares. The Dow Jones Industrial Average surged 247 points, or 1.9%, to 13,289. The S&P 500 index rose 31 points, or 2.2%, to 1,463 and the technology-laden Nasdaq Composite rallied 62 points, or 2.5%, to 2,563 points.

Crude oil prices steadied on Thursday, 30 August 2007. US crude inched up 2 cents to $73.53 a barrel.

The government has decided to form a panel to study a controversial nuclear deal with the United States, taking into account objections from communist parties. The announcement came after a meeting between senior government leaders and their communist allies who have demanded the deal be put on hold. Foreign Minister Pranab Mukherjee said the operationalisation of the deal will take into account the committee's findings. The announcement came after trading hours today, 30 August 2007.