Market Closing Session - Oct 25th

The market settled on a firm note on buying in index pivotals. However, trade was choppy towards the fag end of the day ahead of today's expiry of October 2007 derivatives contracts. European markets and Asian markets were trading with gains today, 25 October 2007. Total cash market turnover on BSE was just under Rs 8000 crore mark.

The Securities Exchange Board of India (Sebi)’s board meets today, 25 October 2007, to take a decision on recently announced proposals. It may be recalled that 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.

The Sensex gained 257.98 points or 1.39% at 18,770.89. It had opened marginally higher at 18,519.23 and rose to strike an intra-day high of 18,900.10 in late afternoon trade. At the day’s high of 18,900.10, Sensex had risen 387.19 points.

Sensex hit a low of 18,459.51 in early trade. At day’s low of 18,459.51, Sensex had lost 53.40 points. It oscillated 440.59 points in the day.

The Sensex had struck an all-time high of 19,198.66 struck on 18 October 2007.

The broader based S&P CNX Nifty was up 72.80 points or 1.32% at 5,568.95. The Nifty November 2007 futures settled 5531, a discount of 37.95 points as compared to spot closing. Nifty October 2007 futures expired today.

The BSE Mid-Cap index rose 1.31% to 7,750.93 while the BSE Small-Cap index gained 1.35% to 9,367.08. Both these indices underperformed the Sensex.

The market breadth was strong on BSE: 1,552 scrips had advanced as compared to 1,147 that declined while 71 remained unchanged. 21 of the 30 members of the Sensex pack were trading with gains.

The total turnover on BSE amounted to Rs 7976 crore as compared to Rs 7997 crore yesterday, 24 October 2007

The NSE F&O turnover was at Rs 103930.17 crore as compared to Rs 107495.25 crore yesterday, 24 October 2007

Most of the sectoral indices on BSE settled with gains. Bankex (up 2.67% to 9,924.11), BSE Capital Goods Index (up 1.18% at 17,314.13), BSE PSU index (up 1.16% to 8,878.54), BSE TecK index (up 0.82% to 3,962.59), BSE Realty (up 0.40% to 9,807.30), BSE Metal Index (up 4.13% at 16,424.52), BSE Consumer Durables Index (up 1.51% to 5,202.18), BSE Oil and Gas Index (up 0.60% at 10,800.82), and BSE Auto Index (up 1.84% at 5,503.58), outperformed the Sensex.

BSE FMCG Index (down 0.03% at 2,134.75), BSE Health Care Index (down 0.53% at 3,832.95), BSE IT Index (up 0.05% at 4,582.54), were underperformers.

World’s sixth largest steel maker, Tata Steel retraced from its 52-week high of Rs 1003 struck earlier today. It settled 7.93% higher to Rs 988 on 26.80 lakh shares. It was the top gainer from Sensex pack. The stocks surged on reports that Tata Steel is looking at investment opportunities in CSN's heartland Brazil. Tata Steel will reportedly in the next few months send a delegation to the Northern Brazilian state of Maranhao in order to evaluate investment opportunities there. Tata Steel will declare Q2 September 2007 results on 26 October 2007.

Hindalco Industries (up 1.45% to Rs 191.85), Sterlite Industries (up 2.79% to Rs 924), Sesa Goa (up 1.67% to Rs 3319.80), and Steel Authority of India (up 2.79% to Rs 250.20), were the other gainers from metal and mining pack.

Auto stocks gained on fresh buying. Maruti Suzuki India (up 1.90% to Rs 1140), Bajaj Auto (up 0.76% to Rs 2499), Mahindra & Mahindra (up 1.59% to Rs 772), and Tata Motors (up 1.08% to Rs 783) rose

Shares of top banks surged. ICICI Bank advanced 3.40% to Rs 1135 and State Bank of India gained 0.91% to Rs 1925.30. After market hours on 23 October 2007, SBI Life Insurance Company posted net profit of Rs 14.09 crore for the first half year ended 30 September 2007 on the back of 80% increase in its total premium collection. 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 largest engineering and construction company by net sales, Larsen & Toubro gained 1.39% to Rs 3450. The stock hit an all time high of Rs 3510 on BSE today.

India's largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) rebounded sharply from day’s low of Rs 2594 to hit a high of Rs 2667.10. It settled 0.58% higher at Rs 2624.70 on 11.15 lakh shares.

India’s largest oil exploration company by market capitalisation Oil and Natural Gas Corporation rose 0.55% to Rs 1114. The stock made a strong recovery from day’s low of Rs 1064. As per recent reports, its joint venture firm ONGC-Mittal Energy had acquired a 30% participating interest in an exploration block in the Caspian Sea, Turkmenistan.

India’s third largest pharma company by sales, Cipla slumped 5.10% to Rs 186.60 on 11.08 lakh shares after it reported 5.73% rise in net profit to Rs 190.62 crore 25.01% rise in total income to Rs 1140.21 crore in Q2 September 2007 over Q2 September 2006. The results were announced after the trading hours on Wednesday, 24 October 2007. It was the top loser from Sensex pack.

Dr. Reddy's Laboratories, the nations third largest pharma company by market capitalisation, slipped 1.80% to Rs 618.60 after it reported a 4.5% fall in consolidated net profit to Rs 267 crore in Q2 September 2007 over Q2 September 2006. Dr. Reddy's total revenue at Rs 1267 crore was 37% below last year's Rs 2004 crore that included Rs 781 crore of one-time gains from exclusive marketing rights for two drugs. The results were announced after market hours yesterday, 24 October 2007.

ACC (down 1.39% to Rs 1063.10), and ITC (down 0.65% to Rs 183.50), were the other losers from Sensex pack.

IT pivotals were mixed today. Satyam Computers (up 0.07% to Rs 461.20) and Wipro (up 1.79% to Rs 495), gained. TCS (down 0.20% to Rs 1046) and Infosys Technologies (down 0.46% to Rs 1836) edged lower.

Reliance Energy, the country’s second largest power utility company by sales declined sharply from day’s high of Rs 1714.95 to settle 0.05% lower at Rs 1653.

Maytas Infra settled at Rs 614.30 on BSE, a premium of 66% over IPO price of Rs 370. The stock debuted at Rs 480, a premium of 29.7% over the IPO price. The scrip hit a low of Rs 480 and high of Rs 637.70. On BSE, 72.9 lakh shares changed hands in the counter. The company had priced the IPO at the top end of the Rs 320-370 price band.

Sugar shares advanced on fresh buying. Dwarikesh Sugar (up 1.13% to Rs 58), Uttam Sugar (up 1.61% to Rs 81.85), Balrampur Chini Mills (up 4.69% to Rs 82.65), Shree Renuka Sugars (up 2.25% to Rs 790.50), and Bajaj Hindustan (up 2.51% to Rs 189.70) surged.

Transformer shares gained on renewed buying. Emco (up 2.52% to Rs 1210), Voltamp Transformers (up 7.93% to Rs 1318), and Indo Tech Transformers (up 2% to Rs 519), advanced.

Areva T&D India surged 12% to Rs 2110 on posting 39.5% rise in net profit to Rs 48 crore on 20.5% growth in net sales to Rs 432.60 crore in Q3 September 2007 over Q3 September 2006. The company announced the results after market hours on 24 October 2007.

Gillette India slipped 1.10% to Rs 841. It posted 44.91% decline in net profit in Q1 September 2007 to Rs 27.82 crore on 35.28% rise in total income to Rs 142.05 crore in Q1 September 2007 over Q1 September 2006. The company announced the results during the market hours today, 25 October 2007.

Triveni Engineering & Industries soared 7.83% to Rs 135 after its board approved raising up to Rs 250 crore for capital expenditure and repayment of debt.

Finolex Cables spurted 7.93% to Rs 74.20. Earlier on 23 October 2007, the company said its board approved an expansion of capacity to 30 million compact fluorescent lamp (CFLs) per year at an additional expenditure of Rs 30 crore.

Engineers India rose 6.18% to Rs 605.30. It will declare Q2 September 2007 results on 30 October 2007.

TVS Motor Company declined 4.77% to Rs 53.95 on posting 52% decline in net profit to Rs 11.92 crore on 23.6% decline in sales to Rs 823.42 crore in Q2 September 2007 over Q2 September 2006. The company announced the results after market hours on 24 October 2007.

Bharat Earth Movers gained 0.69% to Rs 1500, after it secured a Rs 648 crore contract from Northern Coalfields (NCL) for supplying and servicing electric rope shovels. The announcement was made after the trading hours on Wednesday, 24 October 2007.

Indiabulls Financial Services (IBFSL) rose 0.08% to Rs 596.75 while Metals and Minerals Trading Corporation (MMTC) jumped 5% to Rs 31,701.85. IBFSL will set up a special purpose vehicle (SPV) with Metals and Minerals Trading Corporation (MMTC) for a commodity exchange. In the special purpose vehicle (SPV), IBFSL would hold 74% equity while MMTC will hold the reaming 26% stake.

Adani Enterprises gained 5.29% to Rs 794 on reports the company has sold 10% stake in its subsidiary - Adani Power to the British private equity firm 3i Group Plc for Rs 900 crore.

Reliance Capital eased from day’s high of Rs 1869.50. It settled lower by 0.48% to Rs 1777.10. It posted 20.41% rise in net profit to Rs 201.28 crore on 75.58% rise in total income to Rs 391.27 crore in Q2 September 2007 over Q2 September 2006. The company announced the results during the market hours today, 25 October 2007.

The market regulator Sebi, after trading hours on Monday, 22 October 2007, provided partial breather to foreign institutional investors (FIIs) with respect to proposed restrictions on use of participatory notes and said it would speed up regulatory clearance for foreigners keen to invest transparently.

Meanwhile, on the eve of a crucial board meeting to decide on Securities & Exchange Board of India (Sebi)’s proposed restriction on use of participatory notes (PN), Sebi chairman, M. Damodaran, on Wednesday, 24 October 2007, said that all the 20 PN issuing FII sub-accounts have expressed intent to convert into foreign institutional investor (FII) status.

All these 20 sub-accounts have sent their letter of intent within the 24-hour deadline that was mentioned by the Sebi on Monday, 22 October 2007. There are 34 P-Note issuing entities in the country, of which some are already FIIs. This number was 14 in March 2004.

The 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.

European markets opened on a firm note. Key benchmark indices in United Kingdom (up 1.01% to 6,547.60), Germany (up 1.06% to 7,911.38), and France (up 1.02% to 5,732.66), gained.

Asian markets were trading with gains today, 25 October 2007. Hong Kong's Hang Seng (up 1.78% at 29,854.49), Taiwan's Taiwan Weighted (up 1.33% at 9,568.25), Singapore's Straits Times (up 1.59% at 3,707.14) and South Korea's Seoul Composite (up 2.24% or at 1,976.15) edged higher.

However Japan's Nikkei (down 0.45% at 16,284.17) and Shanghai Composite (down 4.80% to 5,562.39) slipped

The Dow Jones industrial Average recovered from sharp early losses of over 200 points yesterday, 24 October 2007, as Merrill Lynch posted dreadful result hinting that sub-prime mortgage crisis may get bigger. Dow settled almost unchanged at 13,675.25, marginally lower by 0.98 points. The Nasdaq Composite Index, finished lower by 24.5 points at 2,774.76. S&P 500 slipped 3.71 points at 1,515.88.

As per provisional data, FIIs purchased shares worth a net Rs 1301.87 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 383.23 crore on Wednesday, 24 October 2007.

Crude oil traded higher in Asia today, 25 October 2007 on news US energy stockpiles fell sharply last week and tensions rose in the Middle East after Turkish warplanes bombed Kurdish rebel camps in Northern Iraq. New York's main futures contract, light sweet crude for delivery in December, advanced 85 cents to $87.95 a barrel. Brent North Sea crude for December climbed 73 cents to $85.10.

Source - Capital Markets