Sensex settles above 15,600

The market surged in the second half of the trading session tracking recovery in European markets which started after Indian market. The market was range-bound in early afternoon trade. Asian markets were weak. With today’s gains, the market came out of its two-day losing streak.

US stock futures pointed slightly higher opening today, 18 September 2007, ahead of the two main events viz. interest-rate decision by the US Federal Reserve and third quarter earnings from investment bank Lehman Brothers post crisis in the subprime mortgage market and the credit crunch which was triggered last month.

The BSE 30-share Sensex advanced up 164.69 points or 1.06% at 15,669.12. It opened higher at 15,547.07 but later slipped to a low of 15,468.80 briefly. Sensex hit a high of 15,691.88 in late trade. It oscillated in a range of 223.08 points for the day.

The Sensex is 199.73 points away from its all time high of 15,868.85 hit on 24 July 2007.

The S&P CNX Nifty rose 51.55 points or 1.15% at 4,546.20. The Nifty September 2007 futures settled at 4542, a discount of 4.20 points as compared to spot closing

The market breadth, indicating overall health of the market was strong on BSE, with 1794 shares advancing as compared to 958 that declined, while 55 remained unchanged.

The BSE Mid-Cap index rose 1.01% to 6,985.03 underperforming the Sensex while the BSE Small-Cap Index gained 1.63% to 8,780.89 outperforming the Sensex.

The total turnover on BSE amounted to Rs 5585 crore as compared to Rs 4688 crore on Monday, 17 September 2007

The NSE F&O turnover was Rs 45069.25 crore as compared to Rs 35768.53 crore on Monday, 17 September 2007

Among the 30-member Sensex pack, 21 gained while the rest slipped

Banking shares surged on renewed buying. India’s largest private sector bank in terms of net profit ICICI Bank advanced 3.04% to Rs 921.05 on 6.80 lakh shares. It was the top gainer from Sensex pack.

Other banking shares - State Bank of India (up 2.70% to Rs 1691), Bank of India (up 2.48% to Rs 249.80), Bank of Baroda (up 4.15% to Rs 295), Vijaya Bank (up 3.38% to Rs 61.10) and Andhra Bank (up 2.81% to Rs 93.30), also edged higher.

India’s largest listed cellular services provider by sales, Bharti Airtel advanced 2.34% to Rs 832.50. The stock gained after foreign brokerage house Citigroup recommended buy rating on the stock with a 12-month target price of Rs 1050.

India’s largest private sector power utility company in terms of sales, Reliance Energy (REL) hit all time high of Rs 933 in intra-day trade. It settled 1.97% higher at Rs 925.70. Yesterday, 17 September 2007 the stock gained 2.71% to Rs 906.60. As per recent reports, Supreme Court has allowed the company to bid for Rs 2,600 crore Mumbai sea link project.

ONGC (up 1.48% to Rs 848.10) and Mahindra & Mahindra (up 1.55% to Rs 709), were the other gainers from Sensex pack.

Bhel, the country’s largest power equipment maker in terms of sales rose 0.19% to Rs 1901, off its day’s high of Rs 1930. Bhel is reportedly looking at mergers and acquisition to fuel inorganic growth. Reports also suggest that the company is targeting a turnover of Rs 45,000 crore by 2012.

However pharma and software shares were subdued. Cipla, the country’s third largest pharma company in terms of net sales, slipped 2.04% to Rs 168.45 on 7.16 lakh shares. It was the top loser from Sensex pack.

India’s second largest pharma company in terms of net sales, Dr Reddy’s slipped 0.20% to Rs 641.

IT pivotals Wipro (down 1.20% to Rs 443.50), Satyam Computers (up 0.17% to Rs 421.50), and Infosys Technologies (down 0.03% to Rs 1805) edged lower.

India’s largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) recovered sharply from day’s low of Rs 2007. It settled 1.21% higher at Rs 2053 on 8.65 lakh shares. As per recent reports, RIL is foraying in shipbuilding and dredging business with two separate companies. It plans to invest around $1 billion each in two companies and has begun talks with international majors for a strategic tie-up for the dredging business

Reliance Capital was the top traded counter on BSE with total turnover of Rs 223.96 crore followed by Reliance Industries (Rs 176.09 crore), Reliance Industrial Infrastructure (Rs 129.33 crore), Reliance Energy (Rs 128.83 crore) and Indowind Energy (Rs 120.22 crore).

Among side counters, Engineers India (up 20% to Rs 581.80), Zandu Pharmaceuticals (up 20% to Rs 4341.65) and Kew Industries (up 19.98% to Rs 34.85) surged

Linc Pen & Plastics (down 9.64% to Rs 45), Jindal Worldwide (down 7.95% to Rs 150), Andhra Sugars (down 7.75% to Rs 91.10), and Nagreeka Exports (down 6.71% to Rs 40.30), slipped.

Raymond galloped 20.01% to Rs 323.30 on huge volumes of 17.67 lakh shares, boosted by a block deal of 6.87 lakh shares struck on the counter at Rs 273 per share by 12:36 IST on BSE. The average daily volume in the stock in the past one year was 29414 shares

GAIL (India) rose 3.38% to Rs 323.75 on its plans to raise up to $1.72 billion from domestic and foreign markets to double its pipeline network by 2011.

Neyveli Lignite Corporation slipped 3.31% to Rs 96.25 after National Stock Exchange (NSE) banned fresh positions in the derivatives contracts as 95% marketwide position limit was crossed yesterday, 17 September 2007.

Indian Hotels Company gained 1.30% to Rs 131.30 on reports that it acquired a 10% stake in US-based Orient-Express Hotels for $211.28 million.

Puravankara Projects rose 4.45% to Rs 394.40 after it reported 43.59% surge in net profit to Rs 35.64 crore on 27.79% total income rise to Rs 120.4 crore in Q1 June 2007 over Q1 June 2006.

Jai Corp jumped 5% to Rs 8951.50 after it fixed 12 October 2007 as the record date for the purpose of stock split from existing face value Rs 10 per share to a face value of Re 1 per share and also for issue bonus shares in the ratio of 1:1.

PSL had gained 0.35% to Rs 353 after it bagged a $17 million contract from Fusion Provida, England for supplying 1,24,000 meters of 3 LPE coated line pipes.

State Trading Corporation of India surged 20% to Rs 238.35 after it said that a board meeting will be held on 26 September 2007 to recommend issue of bonus shares in a ratio of 1:1.

Indo Asian Fusegear surged 6.14% to Rs 121 on its plans to foray into power distribution business. It is setting up a new company Indo Asian Power Distribution and Infrastructure (IAPDIL) with an investment of Rs 25 crore.

Lanco Infratech jumped 4.79% to Rs 331.55 after it entered into a memorandum of understanding with Gulftainer Company, UAE to co-operate on a variety of port and transportation projects. Gulftainer Company is a leading port developer and operator in the Emirate of Sharjah in the United Arab Emirates.

McNally Bharat Engineering Company surged 5% to Rs 207.20 after the company received an order from NTPC for supply of dry fly ash extraction & collection system for its Rihand plant in Uttar Pradesh. The order is valued at Rs 13.80 crore.

KLG Systel soared 4.05% to Rs 527 after it bagged orders worth Rs 32.5 crore from the Government of Haryana and Rs 7.5 crore from Government of Rajasthan. With these new orders, the company has bagged projects worth a total of Rs 100 crore in the month of September 2007 so far.

Reliance Industrial Infrastructure galloped 8.60% to Rs 782 on expectations of orders from its parent Reliance Industries (RIL) to build gas pipelines and warehouses.

European markets recovered after weak opening. Key benchmark indices in France (up 0.25% to 5,453.24) and United Kingdom (up 0.31% to 6,202) advanced. Germany’s DAX index was down 0.16% to 7,468.25.

Asian markets settled lower today, 18 September 2007 hurt by concerns related to the health of the global credit markets, as well as nervousness ahead of the US Fed meet scheduled later in the day. Japan's Nikkei (down 2.02% at 15,801.80), Hong Kong's Hang Seng (down 0.09% at 24,576.85), and South Korea's Seoul Composite (down 1.77% at 1,838.61) declined.

However Singapore's Straits Times (up 0.04% at 3,477.75) and Shanghai Composite (up 0.07% to 5,425.20) edged higher

Dow Jones industrial average futures rose 29 points or 0.21% to 13,532. S&P 500 futures rose 2 points or 0.13% to 1,491.80, and Nasdaq 100 Index futures rose 3.50 points or 0.17% to 2,009.50.

Crude oil prices surged to a record high above $81 a barrel on Tuesday, 18 September 2007 drawing strength from concerns of a winter supply squeeze in the world's top consumer where an anticipated interest rate cut is calming recession fears. US light crude for October delivery rose 56 cents to $81.13 a barrel after touching a high of $81.18 earlier in today’s session. London Brent crude for November rose 22 cents to $77.20 a barrel.