Market Closing Session - Oct 11th

Strong liquidity lifted the bourses for the third consecutive day today. The market hit fresh all-time high towards the latter part of the trading session. The market had witnessed a bout of volatility in early trade. Capital goods, metal, auto and realty stocks extended gains. Mid-cap and small-cap indices outperformed market. Asian markets held firm. European markets were positive. The market breadth was marginally weak.

Infosys witnessed a setback after it announced Q2 September 2007 results before trading hours today, 11 October 2007. Other IT pivotals tumbled following the post Q2 results setback in Infosys counter. Reliance Industries edged higher in volatile trade.

The BSE 30-share Sensex was ended up 155.82 points, or 0.84%, to 18,814.07, a record closing high. It opened on a positive note. It hit fresh all-time high of 18,832.65 in late trade. It hit intra-day low of 18,536.97 in afternoon trade. At day's low of 18,536.97, Sensex had lost 121.28 points for the day.

The broader based S&P CNX Nifty ended up 83.4 points, or 1.53%, to 5,524.85, a record closing high. Nifty hit a fresh all-time high of 5,532.75 in late trade.

Of the 30 shares of the Sensex, 23 had moved up, while the remaining were trading down. The market breadth was almost even on BSE: 1,323 scrips advanced, 1,378 declined, while 394 remained unchanged.

Nifty October 2007 futures were at 5,555.05, a premium of 30.2 points or 0.54% over the spot price of 5,524.85.

NSE's futures & options (F&O) segment clocked a turnover of Rs 72,261.05 crore today, 11 September 2007 compared to a turnover of Rs 79,786.18 crore on Wednesday, 10 October 2007.

The BSE Mid Cap index rose 1.42% to 7,590.60 and BSE Small Cap index rose 1.08% to 9,120.61. Both these indices outperformed Sensex.

Only, BSE IT index (down 5.59% to 4,766.72) and BSE Teck index (down 1.97% to 4,089.19) underperformed Sensex.

Rest all the sectoral indices, BSE Auto index (up 2.69% to 5,603.85), BSE Capital Goods index (up 2.75% to 17,088), BSE Bankex (up 1.57% to 9,570.79), BSE Oil & Gas (up 1.66% to10,725.65), BSE Metal index (up 2.69% to 14,832.64), and BSE Realty (up 2.71% to 10,214.15) outperformed the Sensex.

The Bank of Japan (BoJ) today, 11 October 2007, kept interest rates unchanged at 0.5% as widely expected. Bank of Japan Governor Toshihiko Fukui said in a news conference that price pressures are growing and that there is no change in the central bank's stance on gradually adjusting interest rates in line with economic conditions.

India’s largest private company in terms of market capitalization and oil refiner Reliance Industries (RIL) rose 0.47% at Rs 2,629.65. The stock came off session's low of Rs 2,585.25. Earlier, the stock had pared gains from session's high of Rs 2,656. Reliance Industries and Indian Oil Corporation may jointly explore an oil area in East Timor, reports suggest. RIL said after trading hours yesterday, 10 October 2007, it will unveil Q2 September 2007 results on 18 October 2007.

Auto stocks rose in late trade. Tata Motors rose 3.05% to Rs 830.40.

Maruti Suzuki India rose 1.59% to Rs 1,118.60 on signing an agreement with Magneti Marelli and Suzuki Motor Corporation for starting a joint venture in India for manufacturing electronic control units for diesel engines. Bajaj Auto (down 0.04% to Rs 2,619.90) edged lower. Hero Honda Motors (up 0.06% to Rs 754.15) edged higher.

Mahindra & Mahindra rose 7.62% to Rs 813.35 and was the top gainer from the Sensex pack. Mahindra & Mahindra's wholly owned subsidiary Mahindra Intertrade is all set to step into front end retail, reports suggest.

IT pivotals were major losers from Sensex pack after Infosys announced its results just before trading hours today, 11 October 2007. India's No. 2 software services exporter Infosys Technologies declined 6.99% to Rs 1,976. It clocked high volume of 24.27 lakh shares on BSE.

Satyam Computer Services (down 7.5% to Rs 447.95), Tata Consultancy Services (down 4.72% to Rs 1,071.90), Wipro (down 2.99% to Rs 488.10) edged lower.

Infosys revised upwards earnings and revenue guidance for FY 2008 (year ending 31 March 2008). The company has forecast a between 17.5% to 18.1% growth in EPS in FY 2008 as per Indian GAAP to between Rs 78.60 to Rs 78.99. It has forecast a between 19.4% to 19.8% growth in revenue as per Indian GAAP to between Rs 16588 crore to Rs 16648 crore.

As per US GAAP, the company has forecast a between 32.4% to 33.1% growth in consolidated earning per American depository share to between $1.96 to $1.97. The company has forecast a between 34.5% to 35% growth in revenue as per US GAAP to between $4.16 billion to $4.17 billion.

Infosys’ consolidated net profit as per Indian GAAP rose 1.94% to Rs 1100 crore in Q2 September 2007 over Q1 June 2007. Consolidated revenue rose 8.8% to Rs 4106 crore from Rs 3773 crore in Q1 June 2007.

Capital goods stocks extended gains. Larsen & Toubro rose 3.4% to Rs 3,486.65. It hit an all-time high of Rs 3,501 today after it acquired switchgear company in Malaysia. Bharat Heavy Electricals (up 3.89% to 2,421.20) and Suzlon Energy (up 0.54% to Rs 1,778.10) edged higher.

Metal stocks extended gains. Tata Steel (up 0.48% to Rs 849.60), Hindalco Industries (up 3.26% to Rs 175.85) edged higher.

DLF rose 2.92% to Rs 918.55. It touched a new high of Rs 929.95 ahead of its board meeting later today to consider overseas acquisitions and fund raising offshore.

ONGC (up 5.66% to Rs 1,066.45), Grasim Industries (up 4.14% to Rs 3,800.40), ACC (up 3.46% to Rs 1,260.30) edged higher.

Cipla declined 1.14% to Rs 191.05.

Power Finance Corporation was up 1.61% to Rs 211.40 after it said its shareholder approved borrowing up to Rs 100000 crore

Bharati Shipyard was down 0.79% to Rs 570.65 after it said that Shipping Corporation of India would acquire four anchor-handling tugs cum supply vessels from the company for $89.28 million.

DIC India moved up 5.08% to Rs 195.50 after it priced rights share issue at Rs 225 each.

State Bank of India rose 1.08% to Rs 1,944.55 on BSE, on cutting interest rates on new loans for homes, automobiles and farm equipment in the festival season.

Indowind Energy jumped 7.95% to Rs 170.35 after it reported a net profit of Rs 2.31 crore in Q1 September 2007.

Adlabs Films soared 10.38% to Rs 714.90 after the Bombay High Court approved the company’s proposal to amalgamate its wholly owned subsidiary with itself.

ICICI Bank was up 1.99% to Rs 1,089.70 after global investment firm CLSA maintained buy rating on the stock with target price of Rs 1150.

IT People (India) soared 9.13% to Rs 40.65 after its board approved raising funds through various means.

Side counters, Triton Valves (up 20% to Rs 2,137.30), Ennore Coke (up 20% to Rs 31.80), Ashiana Housing (up 20% to Rs 357.40), Nagreeka Capital (up 19.96% to Rs 102.15) and Jindal Drilling (up 20% to Rs 1,106.60) edged higher.

G L Hotels (down 9.08% to Rs 330), Infotrek Syscom (down 8.78% to Rs 63.40) and Nagpur Power (down 8.41% to Rs 56.10) edged lower.

European markets were firm. France’s CAC 40 (up 0.47% to 5,868.35), UK’s FTSE 100 (up 0.91% to 6,693.40), Germany’s DAX (up 0.77% to 8,048.18) edged higher.

Asian markets, which opened before the Indian markets, were trading higher today. Hong Kong’s Hang Seng (up 1.97% to 29,133.02) Singapore’s Straits Times (up 1.61% to 3,875.77), Japan's Nikkei (up 1.64% at 17,458.98), South Korea’s Seoul Composite (up 0.87% to 2,058.85), Taiwan's Taiwan Weighted (up 0.6% to 9,697.67) edged higher.

The BSE 30-share Sensex rose 378.01 points, or 2.07%, to 18,658.25, a record closing high on Wednesday, 10 October 2007. Sensex had earlier 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.

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