Market Closing Session - Oct 24th

The Sensex posted gains consecutively for the third straight sessions, as investors flocked blue-chip shares, inspired by robust set of results posted by them for the quarter ended September 2007. All this came on the back of volatility, which is expected to remain high ahead of the expiry of October 2007 derivatives contracts on Thursday, 25 October 2007.

The Sebi’s board meet tomorrow 25 October 2007 to take a decision on proposals regarding P-notes, Reserve Bank of India's (RBI) mid-term review of annual policy due on 30 October 2007 and US Federal Reserve’s meeting on 31 October 2007 on interest rates, will be key events that will drive the market in the near term.

After swinging between positive and negative zones, the market closed with marginal gains. Earlier today, 24 October 2007, the market opened with a bang on continued buying interest in blue-chip stocks tracking firm global markets. But later it slipped in the red on selling pressure.

The market staged a comeback in late-afternoon trade to post decent gains. But fresh selling dragged it lower. The market breadth, however, was strong throughout trading.

European markets were trading higher, while Asian markets ended lower.

The BSE 30-share Sensex closed higher by 20.07 points, or 0.11% to 18,512.91. It opened with a 235.06-point upward gap at 18,727.90 and rallied further to strike an intra-day high of 18,832.49, before slipping to a low of 18,317.17. The broad market index moved in a band of 515.32 points for the day’s trading session.

The Sensex is now 685.75 points away from its all-time high of 19,198.66 struck on 18 October 2007.

The broader based S&P CNX Nifty outperformed its rival index BSE Sensex, as it rose 22.45 points or 0.41% at 5,496.15, powered by exclusive Nifty stocks of Reliance Petroleum (up 6.01% to Rs 178.95), and Tata Power (up 3.18% to Rs 1057.60).

The Nifty October 2007 futures settled at 5466, a sharp discount of 30.15 points as compared to spot closing.

The BSE Mid-Cap index was up 1.25% to 7,650.69 and the BSE Small-Cap index gained 1.17% to 9,242.38. Both these indices outperformed the Sensex.

Sectoral indices on BSE displayed mixed trend. Bankex (up 1.07% to 9,665.67), BSE Capital Goods Index (up 2% at 17,112.32), BSE Metal Index (up 2.47% at 15,772.94), BSE Consumer Durables index (up 2.98% to 5,124.67), BSE FMCG Index (up 0.33% at 2,135.45), BSE PSU index (up 0.28% to 8,775.61), and BSE Realty (up 2.01% to 9,760.53), outperformed the Sensex.

BSE Health Care Index (up 0.04% at 3,853.90), BSE Oil and Gas Index (down 0.03% at 10,736.91), BSE Auto Index (down 0.89% at 5,404.26), BSE IT Index (down 1.18% at 4,580.23), BSE TecK index (down 1.11% to 3,930.33), were underperformers.

Eighteen of the 30 members of the Sensex pack declined, while the rest gained. The market breadth was strong on BSE: 1,532 scrips had advanced as compared to 1,175 that declined, while 50 remained unchanged.

The total turnover on BSE at the end of the session amounted to Rs 7968 crore as compared to Rs 7418 crore yesterday, 23 October 2007.

The NSE F&O turnover spiked to Rs 107495.25 crore as compared to Rs 97393.15 crore yesterday, 23 October 2007.

Reliance Energy, the country’s second largest power utility company by sales, extended early gains and was up 8.75% to Rs 1656.50 on 36.66 lakh shares. It was the top gainer from the Sensex pack. The stock's rise follows chairman Anil Ambani's briefing to the media after market hours yesterday, 23 October 2007, that Reliance Power will be valued nearly two times its holding company, Reliance Energy, after the mega initial public offer. In its prospectus, Reliance Power has said that it would dilute 11.5% of the post-issue equity.

India’s leading bank by net profit State Bank of India jumped 5.03% to Rs 1904.05. After market hours yesterday, 23 October 2007, SBI Life Insurance Company posted net profit of Rs 14.09 crore for the first half year ended 30 September 2007 with an 80% increase in its total premium collection.

SBI Life Insurance has become the first private sector life insurance company to make profit. A 74:26 joint venture between the State Bank of India and Cardif, a BNP Paribas company, it manages assets over Rs 6000 crore.

India’s fourth largest software services exporter Satyam Computer Services retracted sharply from the day’s high of Rs 489.65. It settled 0.25% lower to Rs 460.60. Before market hours yesterday, 23 October 2007, the company reported a rise in net profit by 7.19% to Rs 417.15 crore on a 10.75% increase in sales to Rs 1948.24 crore in Q2 September 2007 over Q1 June 2006. The company revised upwards earning as well revenue guidance for FY 2008 (year ending 31 March 2008), both in rupees and dollars.

Other IT pivotals were not spared either. Infosys (down 2.31% to Rs 1839), TCS (down 1.79% to Rs 1045.10), and Wipro (down 1.46% to Rs 485) declined.

India’s largest engineering company by sales Bharat Heavy Electricals (Bhel) slipped 1.06% to Rs 2270 on profit booking after it had jumped 11.82% to Rs 2300 yesterday, 23 October 2007. Bhel said on Monday, 22 October 2007, that due to some unavoidable circumstances, the meeting of its board of directors to consider Q2 September 2007 results, scheduled to be held on 25 October 2007, is postponed to 29 October 2007.

Larsen & Toubro (L&T), the nation's largest engineering and construction company by sales, rose 2.06% to Rs 3399.70. It had surged 7.69% to Rs 3336 yesterday, 23 October 2007. On 18 October 2007, L&T said it won four orders worth Rs 452 crore for projects in Andhra Pradesh

Metal stocks firmed up on fresh buying. Hindalco Industries (up 1.86% to Rs 188.45), Jindal Saw (up 3.29% to Rs 610), and Tata Steel (up 1.95% to Rs 912.90) were the gainers from the metal pack.

India's biggest power generation firm by revenue NTPC advanced 1.75% to Rs 221.15 on reports it form a joint venture with an Indonesian coal producer to ensure fuel supplies for its projects.

India's largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) rebounded in the green. It settled 0.25% higher at Rs 2608 on 10.99 lakh shares. It had hit an intra-day high of Rs 2651 in early trade. It had also slipped to a low of Rs 2540.25. As part of restructuring exercise, RIL has reportedly decided to hive off Reliance Fresh into a separate company, Ranger Farm, for single point accountability. Reliance Fresh sells food, fruits and vegetables and consumer products.

India’s largest oil exploration company by market capitalisation Oil and Natural Gas Corporation slumped 3.69% to Rs 1102, off its day’s low of Rs 1083. It was the top loser from the Sensex pack. The stock had surged 4.28% to Rs 1144.80 yesterday, 23 October 2007, on reports its joint venture firm ONGC-Mittal Energy had acquired a 30% participating interest in an exploration block in the Caspian Sea, Turkmenistan.

Auto stocks were under selling pressure. Tata Motors (down 2.41% to Rs 777), Mahindra & Mahindra (down 1.84% to Rs 760), Bajaj Auto (down 1.93% to Rs 2475), edged lower.

Shares from the Reliance group dominated the turnover charts on BSE. Reliance Energy was the top traded counter on BSE with turnover of Rs 593.96 crore, followed by Reliance Petroleum (Rs 368.37 crore), Reliance Industries (Rs 286.60 crore), and Reliance Communications (Rs 284.47 crore).

Among the noteable small- and mid-cap winners, BL Kashyap & Sons (up 20% to Rs 1449), Bhuruka Gases (up 20% to Rs 24.90), Hercules Hoists (up 20% to Rs 5182.60), AVT Natural Products (up 20% to Rs 105.40), and Fairfield Atlas (up 20% to Rs 67.55) surged.

Real-estate stocks gained on fresh buying on speculation that the Reserve Bank of India (RBI) may keep interest rates unchanged in its mid-term review of annual policy due on 30 October 2007. Earlier the street was expecting a 50 basis-point hike. 100 basis points equals 1%.

Shares from real estate pack advanced on fresh buying. Prominent gainers included Akruti Nirman (up 4.26% to Rs 986), Anant Raj Industries (up 5.85% to Rs 305), HDIL (up 2.18% to Rs 676.10), Mahindra Gesco (up 5.29% to Rs 571.85), and Indiabulls Real Estate (up 13.23% to Rs 633.75).

Blue Star galloped 20% at Rs 362.15 after its net profit jumped nearly 150% to Rs 45.97 crore on a 45.72% increase in sales to Rs 547.77 crore in Q2 September 2007 over Q2 September 2006. The results were declared during market hours today.

Castrol India rose 6.85% to Rs 288 on posting a 59.65 % rise in net profit to Rs 54.22 crore on a 3.56% rise in total income to Rs 439.7 crore in Q3 September 2007 over Q3 September 2006.The company announced the results during market hours today, 24 October 2007.

Cairn India soared 6.73% to Rs 204.65 on speculation that UK-based BP Plc may take over its parent Cairn Energy Plc. On successful takeover of parent, the acquirer will have to make a mandatory open offer for a 20% stake in the Indian arm.

Novartis India jumped 12.66% to Rs 327.40. Its net profit grew 70.1% to Rs 30.39 crore on 14.3% rise in sales to Rs 147.88 crore in Q2 September 2007 over Q2 September 2006. The company declared results during market hours today, 24 October 2007.

Rolta India moved up 9.76% to Rs 650.35. Earlier on 22 October 2007, the board of directors of the company had approved the proposal for issuing one bonus share for every one share held in the company

Suzlon Energy rose 9.63% to Rs 1,908.75. The company said on Tuesday (23 October 2007), that it would split its shares and list its Belgium-based group company Hansen Transmissions International NV on the London Stock Exchange.

Pidilite Industries soared 10.85% to Rs 182.50 after it reported a 69.06% rise in net profit to Rs 56.3 crore on a 19.21% increase in sales to Rs 377.2 crore in Q2 September 2007 over Q2 September 2006. The company announced the results after trading on 23 October 2007.

Union Bank of India rose 2.83% to Rs 159.90 on reporting 42.03% rise in net profit to Rs 275.78 crore on 31.21% rise in sales to Rs 2,525.65 crore in Q2 September 2007 over Q2 September 2006. The company announced the results during market hours today, 24 October 2007.

MIC Electronics slipped 5.42% to Rs 505. It posted net profit of Rs 9.84 crore in Q1 September 2007 on sales of Rs 75.43 crore. The company was listed on the exchanges on 12 January 2007. Therefore, comparable figures are not available. The company announced the numbers before market hours today, 24 October 2007.

Siemens gained 3% to Rs 1708 after it bagged a Rs 330-crore order from Tata Steel for providing power distribution network solutions for its greenfield steel plant at Kalinganagar, Orissa. The contract is to be executed by end of 2009.

GMR Infrastructure scaled up 1.86% to Rs 158.90 after GMR Hyderabad International Airport, 63% controlled by the company, entered into a joint venture with Brussels (Belgium)-based Sabena Flight Academy (SFA) to set up a modern aviation academy at Hyderabad. SFA is one of Europe’s oldest and most respected pilot training academies and trains more than 300 cadre pilots every year. The company announced the joint venture after market hours yesterday, 23 October 2007.

Firstsource Solutions edged higher by 2.51% to Rs 73.60 after its board approved raising up to $275 million through foreign currency convertible bonds. The company made the announcement after market hours yesterday, 23 October 2007.

Britannia Industries jumped 4.82% to Rs 1471.05 after its net profit surged 128.8% to Rs 48.50 crore on a 19.9% rise in sales to Rs 658.80 crore in Q2 September 2007 over Q2 September 2006. The company declared the Q2 September 2007 results after market hours yesterday, 23 October 2007.

PTC India vaulted 5.40% to Rs 106.50 on posting a 31.79% rise in net profit to Rs 11.4 crore on a 11.76% jump in sales to Rs 1473.61 crore in Q2 September 2007 over Q2 September 2006.The company announced the results during market hours today, 24 October 2007. It also recommended a hike in the limit for holdings by foreign institutional investors (FIIs) to 60% of its equity capital from the present limit of 40%.

Punjab Tractors declined 0.80% to Rs 216.35 after it posted a 4.64% fall in net profit to Rs 9.8 crore on an 8.97% erosion in sales to Rs 206.9 crore in Q2 September 2007 over Q2 September 2006. The company announced the results after market hours on 23 October 2007.

European markets reversed early losses to post marginal gains today, 23 October 2007. Key benchmark indices from United Kingdom (up 0.44% to 6,542.70), Germany (down 0.12% to 7,833.47), and France (up 0.10% to 5,710.57), slipped

Asian markets reversed early gains to slide in the red today, 24 October 2007. Taiwan Weighted (down 0.63% at 9,442.62), South Korea's Seoul Composite (down 0.75% at 1,93.46), Hong Kong's Hang Seng (down 0.15% at 29,333.53), Singapore's Straits Times (down 1.25% at 3,649.12) and Japan's Nikkei (down 0.56% at 16,358.39), declined

Market regulator Securities Exchange Board of India (Sebi), after trading hours on Monday, 22 October 2007, provided partial breather to foreign institutional investors (FIIs) on the proposed restrictions in the use of participatory notes and said it would speed up regulatory clearance for foreigners keen to invest transparently. The minimum networth criterion for a foreign individual investor, who intends to invest directly, is set at $50 million, reports suggested.

On 16 October 2007, Sebi had proposed curbs on issuance of offshore derivative instruments (ODIs), also known as participatory (P) notes, based on assets under management of FIIs and prohibited sub-accounts of FIIs from issuing P notes. Its board would meet on 25 October 2007 to take a decision on these proposals.

Wall Street shares ended with a spurt yesterday, 23 October 2007, as investors uneasy about the economy were reassured by solid earnings from blue chips including Apple and American Express Company. The Dow Jones Industrial Average surged 109.26 points, or 0.81%, to 13,676.23. The Standard & Poor's 500 index rose 13.26 points, or 0.88%, to 1,519.59 while the Nasdaq Composite index gained 45.33 points, or 1.65%, to 2,799.26.

New York's main futures contract, light sweet crude for delivery in December, was down 37 cents at $84.90 a barrel, more than five dollars below the record high of $90.07 struck on Friday, 19 October 2007. Brent crude for December delivery slipped 30 cents to $82.55, off its all-time peak of $84.88 hit on Thursday, 18 October 2007

The Sensex had posted its biggest ever-single day point gain of 878.85 points, or 4.99%, to settle at 18,492.84 on Wednesday, 23 October 2007. The broad market index's previous biggest single-day point gain was on 9 October 2007, when it had jumped 788.85 points, or 4.51%, to 18,280.24.

The broader S&P CNX Nifty had scaled up 289.70 points, or 5.59%, to 5,473.70, on 23 October 2007.

Source - Capital Markets