Sensex settles a tad below 15,600 following strong intra-day rebound

The market which opened on a weak note, recovered all the lost ground to post marginal gains, on strong buying in index pivotals, especially Reliance Industries. However IT pivotals stayed weak, on fears of US economy heading towards recession. The market breadth was strong on BSE in contrast to initial weakness.

The market had opened on a weak note following a sell-off in US stocks on Friday, 7 September 2007, after data showed US firms cut 4,000 jobs last month, the first such decline since August 2003.

The BSE 30-share Sensex rose 6.41 points or 0.04% at 15,596.83. It opened with a 176.84 points downward gap at 15,413.58 and slipped further to touch a low of 15,363.53. However, the index witnessed a sharp pull-back from lower levels to hit a high of 15,626.28

At the day's low of 15,363.53, the Sensex had lost 226.89 points for the day. At day’s high of 15,626.28, it had gained 35.86 points for the day. Sensex oscillated 262.75 points for the day

The BSE Sensex is now 272.02 points away from its all time high of 15,868.85 hit on 24 July 2007.

The S&P CNX Nifty was down 1.65 points or 0.04% at 4,507.85. The Nifty September 2007 futures settled at 4,500, a discount of 7.85 points as compared to spot closing

The market breadth was strong on BSE, with 1,682 shares advancing as compared to 1,083 that declined, while 58 remained unchanged. This is in sharp contract to that of opening session, when 827 shares declined, 570 rose and 31 remaining unchanged.

The BSE Mid-Cap Index rose 0.48% to 6,884.39, while the BSE Small-Cap Index gained 0.96% to 8,514.37. Both these indices outperformed the Sensex.

The BSE Small-Cap Index hit an all time high of 8,525.39 in intra-day trade today. From a recent low of 7424.39 on 23 August 2007 the BSE Small-Cap index rose 13.59% to 8433.52 on 7 September 2007.

The BSE Mid-Cap index is within striking distance from its all time high of 6,909.25 hit on 7 September 2007.

The total turnover on BSE amounted to Rs 4,026 crore as compared to Rs 4,890 crore on Friday, 7 September 2007. The NSE F&O turnover was Rs 37,333.48 crore as compared to Rs 38,666.44 crore on Friday, 7 September 2007.

Most of the sectoral indices on BSE posted gains. The BSE Oil and Gas Index (up 0.91% at 8,259.93), BSE Consumer Durables index (up 1.53% to 4,548.44), BSE Realty index (up 0.81% to 7,531.12), BSE PSU index (up 0.54% to 7,327.62), BSE Health Care Index (up 0.41% at 3,720.81), BSE Metal Index (down 0.03% at 11,606.05), BSE Capital Goods Index (up 0.30% at 13,654.29), BSE Auto Index (up 0.22% at 4,900.37), BSE Bankex (up 0.06% at 8,100.37), and BSE FMCG Index (up 1.88% at 2,085.10) outperformed the Sensex.

However, the BSE TecK index (down 1.01% to 3,605.36), and BSE IT Index (down 1.91% at 4,570.89) were underperformers.

From the 30-member Sensex pack, 16 gained while the rest slipped.

IT shares were weak on fears that the US economy may be headed into a recession. India’s top software services exporter by revenue TCS lost 2.97% to Rs 1045.30 on 2.72 lakh shares. It was the top loser from Sensex pack.

Other IT pivotals - Infosys Technologies (down 2.06% to Rs 1869.45), Wipro (down 2.45% to Rs 466.70), and Satyam Computers (down 1.39% to Rs 443.50) - declined. IT firms derive over 50% of their revenue from exports to the US.

From a recent low of 4294.86 on 21 August 2007, the BSE IT index had risen 8.49% to 4659.70 on 7 September 2007.

The Indian rupee recovered from an initial fall that was caused by fears about a reversal in risk appetite after weak US job data triggered a sell-off in Asian equity markets. Rupee was hovering at 40.64, a bit stronger than Friday (7 September 2007)’s close of 40.6875/6975.

Oil & Natural Gas Corporation (ONGC), the country’s largest oil exploration company by market capitalisation, slipped 2.20% to Rs 832. It went Rs 13 per share ex-dividend from today. ONGC’s shares have face value of Rs 10 each.

ICICI Bank (down 0.76% to Rs 912), HDFC (down 1.65% to Rs 2095) and Hindalco Industries (down 1.56% to Rs 154.50) were the other losers from Sensex pack.

India’s largest cigarette manufacturer ITC advanced 3.80% to Rs 184.60 on 15.44 lakh shares. It was the top gainer from the Sensex pack. As per recent reports, after getting approval from the shipping ministry, Kolkata Port Trust (KoPT) may give land to ITC for expanding its existing cigarette factory

Cement stocks Ambuja Cements (up 2.82% to Rs 144) and Grasim (up 0.93% to Rs 3212) edged higher on fresh buying.

India’s third largest pharma company by revenue Ranbaxy Laboratories gained 2.21% to Rs 418.95. World Health Organisation (WHO) has included the company's three drugs for treatment of AIDS in its pre-qualification list. With the new additions, 15 Anti Retroviral (ARV) products of the company are now in the WHO's pre-qualification list.

NTPC, the nation’s largest power generation company, rose 2.48% to Rs 191.80. The stock hit a record high of Rs 192. As per reports, NTPC is in talks with established players to manufacture power plant equipment.

India’s largest private sector company by market capitalisation and oil refiner Reliance Industries (RIL) staged a sharp recovery from day’s low of Rs 1945. It rose 1.27% to Rs 1986.45 on 6.19 lakh shares. It is now at a striking distance of its all-time high of Rs 1999.30 hit on 5 September 2007. RIL today, 10 September 2007, reached an agreement to acquire assets of Hualon, a leading polyester producer in Malaysia. This acquisition will bestow RIL with more than 7% global market share in polyester fibre and yarn.

Auto stocks rebounded from early lows on value buying. Tata Motors (up 0.79% to Rs 702, off its day’s low of Rs 683.05), Maruti Udyog (up 0.81% to Rs 879.95, off its day’s low of Rs 860), and TVS Motor Company (up 13.44% to Rs 73, off its day’s low of Rs 63.90) recovered from their lows.

Among side counters, Godawari Power & Ispat (up 10% to Rs 208.65), International Conveyors (up 10% to Rs 272.05), Parsoli Corporation (up 10% to Rs 56.10), Easun Reyrolle (up 10% to Rs 252.90), Artson Engineering (up 14.33% to Rs 53.50) and BPL (up 14.96% to Rs 68.40) surged.

Roto Pumps (down 8.17% to Rs 68), ITD Cementation (down 6.08% to Rs 455), and Freshtrop Fruits (down 6.43% to Rs 137.60) slumped.

IFCI topped the turnover chart on BSE notching turnover of Rs 164 crore followed by Reliance Industries (Rs 123 crore), Aptech (Rs 106 crore), Reliance Petroleum (Rs 74 crore) and State Bank of India (Rs 72.80 crore).

Brokerage shares hogged limelight on momentum buying ahead of listing of Motilal Oswal Financial Services (MOFS) on Tuesday, 11 September 2007. Emkay Shares & Stock Brokers (up 20% to Rs 154.85), JRG Securities (up 11% to Rs 56.40), Khandwala Securities (up 3.04% to Rs 47.40), Prime Securities (up 4.60% to Rs 100), India Infoline (up 9.79 to Rs 743) and Geojit Financial Services (up 7.12% to Rs 45.90) surged

MOFS fixed the IPO price at the top end of the Rs 725 - RS 825 per share price band. At the IPO price of Rs 825, PE works to 31.7 based on the consolidated year ended March 2007 EPS of Rs 26. The IPO closed on 20 August 2007 with 27.41 times subscription.

Gammon India plunged 8.92% to Rs 420 after an under-construction flyover it was constructing in Hyderabad collapsed yesterday, 9 September 2007. The collapse of the flyover could affect Gammon's ability to get new contracts.

Hindustan Zinc rose 0.11% to Rs 713.35. As per reports, it has lowered prices of the metal by Rs 2900, or 2.10% , to Rs 136300 a metric ton. Lead prices were also lowered by 1.2%, to Rs 137500 a ton.

Corporation Bank rose 0.93% to Rs 338 after it said it said after trading hours on Friday, 7 September 2007, it has sold its stake in the National Stock Exchange for Rs 35 crore.

Carborundum Universal gained 0.31% Rs 180.40 after it said after trading hours on Friday, 7 September 2007, it had acquired Russian firm Volzhsky Abrasive Works for $37 million. The company had announced the acquisition in June 2007.

Compressor maker Ingersoll Rand (India) rose 2.49% to Rs 353.50 after its board approved sale of its utility equipment business to South Korean firm Doosan Infracore for Rs 103 crore

Steel pipes and industrial tools maker Zenith Birla (India) rose 5.16% to Rs 35.65 after it said after trading hours on Friday, 7 September 2007, its board would meet on 14 September 2007 to consider spinning off its tool manufacturing division.

TRF rose 3.88% to Rs 1095 after it said before trading hours on Monday, 10 September 2007, its board has approved buying 51% stake in YORK Transport Equipment (Asia) PTE Ltd of Singapore for an undisclosed sum.

Electrosteel Castings rose 5.42% to Rs 471.95 after it fixed 24 September 2007 as the record date for the purpose of stock-split of equity shares to 10 shares of Re 1 in lieu of 1 equity share of Rs 10 each. The company made this announcement after market hours on Friday, 7 September 2007

Nagarjuna Fertilizers & Chemicals rose 1.89% to Rs 43.20 while Bongaigaon Refinery & Petrochemicals jumped 5.92% to Rs 59.95. National Stock Exchange said after trading hours on Friday, 7 September 2007, fresh positions cannot be created in the derivatives contracts of Nagarjuna Fertilizers & Chemicals and Bongaigaon Refinery & Petrochemicals. The ban in these two derivatives contracts is because the open interest has crossed 95% of the limit.

Aptech rose nearly 4.14% to Rs 380.70. Aptech said late on Friday, 7 September 2007, Bear Stearns & Co has sold 1 million shares or a 2.32% stake in the company to reduce its stake to 3.5%.

Kirloskar Brothers rose 0.1% to Rs 485 after the company said during trading hours today, 10 September 2007, it had acquired Gondwana Engineers for Rs 7.63 crore. Gondwana specialises in various water, sewage and effluent treatment plants.

Most of the European markets, which opened after Indian markets, were trading lower. Key benchmark indices in Germany (down 0.01% to 7,435.63) and France (down 0.05% to 5,527.51) declined. However United Kingdom’s FTSE 100 index rose up 0.05% to 6,194

Asian markets which opened before Indian markets, 10 September 2007, settled lower. Japan's Nikkei (down 2.22% at 15,764.94), Seoul Composite (down 2.60% to 1,835.58), Taiwan Weighted (down 0.89% to 8,937.58) and Straits Times (down 1.35% to 3,441.84) slipped.

However, Hang Seng (up 0.07% at 23,999.70) and China’s Shanghai Composite (up 1.48% to 5,355.09) rose after initial weakness.

US stocks tumbled on Friday, 7 September 2007, following weak job data. Dow Jones Industrial Average tanked 2,49.97 points, or 1.87%, to 13,113.38. The tech-laden Nasdaq Composite index lost 48.62 points, or 1.86%, to 2,565.70.

The Sensex rose 271.82 points, or 1.77%, to 15,590.42 in the week ended 7 September 2007. The S&P CNX Nifty was up 45.5 points, or 1.01%, to 4,518.60 in the week.

US light crude fell 15 cents to $76.55 a barrel while London Brent crude declined 17 cents to $74.90 a barrel today, 10 September 2007.

Meanwhile, a panel set up by the government to look into Left front's concerns over Indo-US nuclear deal is expected to hold its first meeting on Tuesday, 11 September 2007.