The market surged ahead of Q3 December 2007 earnings reporting season. Strong global cues also boosted the sentiments. Stronger-than-expected US consumer spending calmed fears the world's top economy was heading into a recession. The market also cheered a comfortable victory for Bharatiya Janata Party (BJP) in the Gujarat state election. The market further got a boost from reports the government has allowed all trusts to invest in securities, including shares and bonds of listed companies. Sensex gained in 3 out of 4 trading sessions in the week.
The BSE Sensex surged 1,044.38 points or 5.45% to 20,206.95 in the week. The S&P CNX Nifty jumped 313.2 points or 5.43% to 6,079.70.
The BSE Mid-Cap index rose 549.03 points or 6.08% to 9,574.57. The BSE Small-Cap index surged 1,087.97 points or 9.2% to 12,901.29. It hit an all time high of 12,909.82 on Friday, 28 December 2007.
Sensex rose 691.55 points or 3.61% to 19,854.12 on Monday, 24 December 2007. Bharti Airtel spurted. Reliance Industries edged higher. Reliance Energy hit all time high. The market breadth was strong.
The 30-share BSE Sensex jumped 338.40 points or 1.70% to 20,192.52 on Wednesday, 26 December 2007. The market surged led by rally in index heavyweight Reliance Industries.
The 30-share BSE Sensex ended up 24.20 points or 0.12% to 20,216.72 on Thursday, 27 December 2007. The market swayed between gains and losses ahead of expiry of December 2007 derivative contracts. The market breadth was strong. Reliance Industries declined. ICICI Bank moved up. Consumer durables, metal and PSU stocks were in demand. Auto and IT stocks declined.
The 30-share BSE Sensex declined 9.77 points or 0.05% to 20,206.95 on Friday 28 December 2007. The market ended flat on that day largely shrugging off geopolitical concerns arising from Pakistan’s opposition party leader Benazir Bhutto's assassination in nuclear-armed Pakistan. Bhutto was killed on Thursday, 27 December 2007, at a rally in Rawalpindi, raising fears of instability in Pakistan.
Mahindra & Mahindra gained 6.23% to Rs 834.40 in the week, Mahindra and Mahindra (M&M) is reportedly planning to enter the highly-competitive UK market with its flagship model Scorpio next year.
Wipro jumped 7.76% to Rs 529.95 on reports that it may bid for France's Capgemini by the end of January 2008 in a deal valuing the latter at around $7 billion. Capgemini is a global leader in consulting, technology and outsourcing services. However Wipro denied these reports.
Larsen & Toubro rose 4.17% to Rs 4,150.30 on reports it has floated a power generation firm Larsen & Toubro Power Development and is planning to generate 5,000 megawatt in the next five years. According to the current estimates, the cost of the proposed power capacity would be Rs 20,000 crore. Meanwhile, L&T said on Wednesday, 26 December 2007, its subsidiary L&T Oman LLC had secured an order worth $110.37 million from Muscat Golf Course Project LLC.
State Bank of India advanced 5.26% to Rs 2,384.45 on reports that its board of directors will meet on 25 January 2008 to consider the merger of its six associate banks with itself. As per reports, the respective boards of State Bank of India (SBI)'s associate banks are expected to give an in-principle nod to the merger. These associates include the listed banks - State Bank of Travancore, State Bank of Mysore, State Bank of Bikaner and Jaipur and unlisted banks State Bank of Hyderabad, State Bank of Indore, and State Bank of Patiala
Oil & Natural Gas Corporation gained 3.01% to Rs 1,226.75, on reports it would raise $20 billion to buy stakes in major oil and gas properties overseas. Oil & Natural Gas Corporation (ONGC) is expected to finalize agreements in Turkmenistan, Iran, Latin America and West Africa, reports suggest.
Tata Steel (up 12.92% to Rs 931.40), Reliance Energy (up 11.11% to Rs 2,155.30), Reliance Industries (up 6.77% to Rs 2,898.35), ICICI Bank (up 6.06% to Rs 1,227.10), Infosys Technologies (up 5.73% to Rs 1,795.75), HDFC Bank (up 5.11% to Rs 1,730.85), Satyam Computer Services (up 5.12% to Rs 449.60), Reliance Communications (up 3.69% to Rs 732.60), Tata Consultancy Services (up 3.33% to Rs 1,080.05) were major gainers from Sensex pack.
India's wholesale price index rose 3.45% in the 12 months to 15 December 2007, lower than the previous week's rise of 3.65%, government data showed on Friday, 28 December 2007. The annual inflation rate was 5.73% during the corresponding week of the previous year. The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is published weekly.
The market regulator Securities & Exchange Board of India (Sebi) on Thursday, 27 December 2007, gave nod to BSE and NSE for launch of mini derivative (futures & options) contract on BSE Sensex and S&P CNX Nifty respectively. The mini derivative contract on Sensex and Nifty will have a minimum contract size of Rs 1 lakh at the time of its introduction in the market.
The infrastructure sector grew 4.5% in October 2007 over 9.9% in October 2006. The six key infrastructure industries comprising cement, crude, refining, coal, electricity and steel rose grew by 6.2% in the April-October 2007 compared with 8.9% in April-October 2006. Infrastructure growth data for September 2007 was revised downwards to 5.5%.
The third, and probably the final, round of negotiations for India-specific safeguards with the International Atomic Energy Agency (IAEA) is expected to take place in Vienna early January 2008.
The Bharatiya Janata Party (BJP) won the Gujarat elections on 23 December 2007 by bagging 117 of the 182 seats. The Congress party bagged 59 seats which could mean a setback to the party's plans to call an early national election.
The market regulator Securtities & Exchange Board of India (Sebi) on Thursday, 27 December 2007, proposed to clear mutual funds products on a fast-track basis. To begin with, fixed maturity plans (FMP) with closed ended income schemes can be offered on a fast track basis, the Securities and Exchange Board of India (SEBI) said. Under the proposal for fast-track clearance, a fund house can file a final offer document with the regulator along with compliance certificates and fees. After the filing, the regulator will confirm the receipt of the documents and the fund house can offer the scheme to investors.
On 26 December 2007, the government approved spectrum review committee's recommendation of allocating additional frequency to existing GSM operators based on the Telecom Regulatory Authority of India's (TRAI) subscriber linked formula and in multiples of 1 MHz. The GSM operators were getting additional spectrum in the multiples of 2.4-2.8 MHz and lowering it to 1 MHz would hit the operators as this would mean additional capital expenditure for them.
According to a report by the Confederation of Indian Industry (CII) and KPMG ‘India Energy Inc. – Emerging Opportunities & Challenges’, released on 26 December 2007, India's power and upstream energy sectors need investments to the tune of $120–150 billion in the next five years.