Market Closing Session - Oct 10th

After Tuesday (9 October 2007)'s solid surge, the market firmed up further today. The market hit new all-time high towards the latter part of the trading session. Easing of political worries and firm Asian markets boosted the bourses for the second day in a row. IT stocks edged higher ahead of Infosys' results which are due tomorrow, 11 October 2007. Capital goods, banking, realty and metal stocks surged. Auto stocks underperformed. The market breadth turned negative in the latter part of trade.

The market had pared gains in mid-morning trade after an initial surge to a record high. Mid-cap and small-cap indices underperformed the Sensex. European markets, which opened after Indian markets, were subdued today.

Asian markets, which opened before Indian markets, ended on positive note. MSCI's measure of Asia Pacific stocks excluding Japan hit a record high today.

The BSE 30-share Sensex rose 378.01 points, or 2.07%, to 18,658.25, a record closing high. Sensex opened with an upward gap of 193.19 points at 18,473.43. Sensex had climbed 423.23 points for the day at the day's high of 18,703.67 in late trade. It hit a low of 18,436.99 in the day.

The broader based S&P CNX Nifty was up 114.2 points, or 2.14%, to 5,441.45, a record closing high. It had hit a all-time high of 5,454.70 in late trade.

BSE clocked a turnover of Rs 8503 crore, higher than Tuesday (9 October 2007)’s Rs 7,815.67 crore.

Nifty October futures were at 5,457.25, a premium of 15.8 points or 0.29% over spot price of 5,441.45.

Nifty F&O segment clocked a turnover of Rs 79,786.18 crore today, 10 October 2007 compared to a turnover of Rs 82,362.26 crore on Tuesday, 9 October 2007.

The Congress-led United Progressive Alliance (UPA) government at the centre and its communist allies stepped back from the brink on Tuesday, 9 October 2007, agreeing to meet again this month to resolve a row over a nuclear deal with the United States. The next meeting of the UPA-Left committee which is looking into Left Front’s concerns over nuclear deal will be held on 22 October 2007. The committee held its fourth meeting in New Delhi yesterday, 9 October 2007.

The meeting was held in the backdrop of widening of rift on the nuclear deal with Left parties rejecting a plea of the government that it be allowed to engage in negotiations with International Atomic Energy Association (IAEA) over the nuke deal.

The fact the two sides would meet again signaled that the communists, whose parliamentary support keeps the ruling coalition in power, would not withdraw their support for the government immediately which the stock market had feared. News that the two sides would meet again sent Sensex surging 789 points on Tuesday, 9 October 2007.

Of the 30 shares of the Sensex, 24 had moved up, while the remaining were trading down. The market breadth turned weak on BSE in late trade: 1,291 scrips advanced, 1,405 declined, while 244 remained unchanged. The breadth was strong earlier during the day.

The BSE Mid Cap index rose 1.16% to 7,484.36 and BSE Small Cap index rose 0.51% to 9,022.75. Both these indices underperformed Sensex .

BSE Capital Goods index (up 4.37% to 16,631.35), BSE IT index (up 3.25% to 5,049), BSE Metal index (up 2.58% to 14,443.52), BSE Teck index (up 2.93% to 4,171.56) outperformed Sensex.

BSE Auto index (up 0.53% to 5,456.93), BSE Bankex (up 1.62% to 9,423.19), BSE Oil & Gas (up 1.11% to10,550.55), BSE Realty (up 1.99% to 9,944.78) underperformed the Sensex.

Infosys rose 3.74% to Rs 2,124.55 extending its recent solid rebound. Infosys will announce Q2 September 2007 results on Thursday, 11 October 2007. TCS (up 2.6% to Rs 1,124.95), Wipro (up 2.83% to Rs 503.15) and Satyam Computer Services (up 2.91% to Rs 484.25), also edged higher ahead of Infosys' results.

A total of seven brokerages expect a between 0.58% fall to a 4.6% rise in Infosys’ consolidated net profit as per Indian GAAP to between Rs 1,072.70 crore to Rs 1128.70 crore in Q2 September 2007 compared to net profit of Rs 1,079 crore Q1 June 2007. They expect a between 6.8% to 9.7% growth in Infosys’ revenue at between Rs 4,028.60 crore to Rs 4,138.40 crore in Q2 September 2007 compared to revenue of Rs 3,773 crore in Q1 June 2007.

Capital goods stocks surged. Larsen & Toubro (L&T) surged 6.6% to Rs 3,372. It hit an all-time high of Rs 3,450 today after it bagged $ 60 million order in Saudi Arabia.

Bharat Heavy Electricals (Bhel) rose 4.2% to Rs 2,330.65. It hit an all-time high of Rs 2,387 today. Suzlon Energy rose 5.7% to Rs 1,768.55. It hit an all-time high of Rs 1,791 today.

India’s largest private company in terms of market capitalisation and oil refiner Reliance Industries rose 0.65% to Rs 2,617.35. It hit an all-time high of Rs 2,675 today.

Auto stocks underperformed Sensex. Hero Honda Motors (up 1.28% to Rs 753.70) and Tata Motors (up 1.78% to Rs 805.85) edged higher whereas Bajaj Auto (down 0..85% to Rs 2,620.95) and Maruti Suzuki India (down 0.39% to Rs 1,101.05) drifted lower.

ACC rose 3.53% to Rs 1,218.15 and was among the major gainers from Sensex pack.

Reliance Energy rose 3.4% to Rs 1,585.85. It hit an all time high of Rs 1,624.60 today. The stock rose today on reports a special purpose vehicle two-third owned by Reliance Energy won a contract to build a Rs 6,000 crore, 100-storeyed tower and a business centre in Manchirevula in Ranga Reddy district, in the outskirts of Hyderabad.

Ranbaxy Laboratories (down 0.45% to Rs 424.80), ITC (down 0.3% to Rs 184.05), Dr. Reddy’s Laboratories (down 1.47% to Rs 633.15), were top losers from Sensex pack.

Metal stocks extended gains. Tata Steel (up 1.31% to Rs 844.55), Hindalco Industries (up 3.84% to Rs 170.30) and JSW Steel (up 3.44% to Rs 879.20) edged higher.

Realty stocks blossomed. DLF (up 3.1% to Rs 892.45), Unitech (up 1.73% to Rs 332.25) and Indiabulls Real Estate (up 0.6% to Rs 648.80) edged higher.

Side counters, Ashco Industries (up 20% to Rs 46.20), Sandesh (up 20% to Rs 204.75), Adlabs Films (up 21.67% to Rs 648.15), Triton Valves (up 20% to Rs 1,781.10) and Gujarat Mineral Deevelopment Corporation (up 20% to Rs 1,632.60), surged.

Madhya Desh Paper (down 10.44% to Rs 13.30) and Majestic Auto (down 10.58% to Rs 31.70) edged lower.

Drug maker Lupin rose 0.48% to Rs 588 after it acquired Japanese generic drug maker Kyowa Pharmaceutical Industry Co.

iGate Global Solutions rose 7.06% to Rs 339.50 on BSE after it said its net profit surged 124% in Q2 September 2007 over Q2 September 2006.

GAIL India declined 0.35% to Rs 383.90, after it signed gas sales agreement with Pragati Power Corporation for gas supply to a power project.

Bharti Airtel was up 3.04% to Rs 1,071.95 after Reserve Bank of India allowed foreign institutional investors to buy further shares in the company as their holding has gone below the caution limit of the company’s paid up capital

Tata Motors moved up 1.78% to Rs 805.85 after it raised prices on its entire range of commercial vehicles by 2% to 2.5% effective from 8 October 2007.

ICSA India was up 1.93% to Rs 1628.50, after it today, 10 October 2007, set record date for 5-for-1 stock split.

Moser Baer (India) moved up 2.62% to Rs 303.95 on reports the company plans to launch low-end VCD and DVD players.

Lloyds Metals & Engineers declined 5% to Rs 222.10 on BSE, on fixing record date for 5-for-1 stock split.

Glenmark Pharmaceuticals rose 4.52% to Rs 426.80 on receiving final approval from the US Food and Drug Administration for marketing oxcarbazepine tablets.

Kinetic Engineering was up 3.04% to Rs 133.95 after its board approved issuing 1.5 crore redeemable non-convertible preference shares to Reliance Capital.

Power Finance Corporation rose 1.31% to Rs 208.05 on reporting 22.5% rise in net profit to Rs 282.22 crore in Q2 September 2007 over Q2 September 2006.

European markets trading in red today. France’s CAC 40 (down 0.27% to 5,846.13) and FTSE 100 (down 0.05% to 6,612.40) edged lower. Germany’s DAX (up 0.2% to 7,996.16) edged higher.

Asian markets, which opened before the Indian markets, were trading in green today. Hong Kong’s Hang Seng (up 1.21% to 28,569.03) Japan's Nikkei (up 0.1% at 17,177.89), South Korea’s Seoul Composite (up 1.34% to 2,041.12) edged higher. Singapore’s Straits Times (down 1.33% to 3,814.45) edged lower.

The BSE 30-share Sensex saw a record single day rally of 788.85 points, or 4.51%, to 18,280.24, an all-time closing high on Tuesday, 9 October 2007. Sensex completed its 17,000 to 18,000 journey in just 8 trading sessions, the second fastest 1,000-point rally ever. The market had hit 17,000 mark on 26 September 2007.

Short covering by trapped bears, who went short anticipating political problems, also pulled up the market significantly yesterday.

Heavy FII buying and hopes of a further cut in interest rates by the US Federal Reserve at its next policy meeting on 30-31 October 2007 have boosted the bourses in the past few days.

Source - Mastermarts