Market Closing Session - Oct 29th

Sensex hit 20,000 mark in late trade after remaining range-bound close to this mark for most of the afternoon trade after an initial surge. Reliance Industries surged to all-time high in afternoon trade. Expectations that the US Federal Reserve would cut interest rates this week and that it will ease monetary policy further in the coming months, boosted the bourses today. European markets started on a positive note today. Asian markets were firm. BSE Mid-Cap and BSE Small-Cap indices underperformed Sensex. Market breadth was strong.

HDFC surged to hit all time high in late trade. Capital goods, metal, Oil & Gas and banking stocks surged. Bharat Heavy Electricals, Larsen & Toubro, NTPC, State Bank of India, Grasim Industries, HDFC Bank, ICICI Bank, Maruti Suzuki, ONGC hit all-time highs today. Maruti Suzuki pared gains after its Q2 results hit the market in afternoon trade.

BSE Sensex ended up 734.50 points or 3.82% to 19,977.67. It opened with an upward gap of 378.22 points at 19,621.39. Sensex hit fresh all time high of 20,024.87 in late trade. At day's high of 20,024.87, Sensex had risen 781.7 points.

The broader based S&P CNX Nifty ended up 203.6 points, or 3.57%, to 5,905.90. It hit an all-time high of 5,922.50 in late trade today.

The Sensex achieved the journey of 1,000 points from 19,000-20,000 in ten trading sessions. Sensex had first crossed 19,000 mark on 15 October 2007.

From a low of 13,989.11 on 21 August 2007 the Sensex gained 5,988.56 points or 42.8% to 19,977.67 on 29 October 2007. FII buying was primary driver of the rally.

The NSE F&O turnover was Rs 69,537.38 crore today as compared to Rs 73836.74 crore Friday, 26 October 2007

Nifty November 2007 futures contract was trading at 5,918, at a premium of 12.1 points or 0.2% over spot price of 5,905.90.

A major breather by the market regulator Securities & Exchange Board of India with respect to stringent norms on restriction on participatory notes (PNs) enabled the market to regain its form after a sharp correction recently. Sebi, on Monday, 22 October 2007, allowed FII sub-accounts to convert into foreign institutional investors status. This helped eased concerns arising from possible huge sales from liquidation of outstanding PNs from FII sub-accounts, with all the 20 PN issuing sub-accounts informing Sebi about their intension to convert to FII status.

It may be recalled that Sebi had simultaneously proposed liquidation of outstanding PNs by sub-accounts within 18 months when it had first proposed ban on fresh issue of PNs by sub-accounts in its draft proposals on 16 October 2007. Later, the Sebi board approved the draft proposals which came into force from Friday, 26 October 2007.

BSE clocked a turnover of Rs 8884 crore today, compared to Friday (26 October 2007)'s Rs 9,005.17 crore.

The market breadth was strong on BSE: 1,540 scrips advanced as compared to 1,201 that declined while 320 remained unchanged. 22 of the 30 members of the Sensex pack were trading with gains.

The BSE Mid Cap index (up 2.04% to 8,082.54) and BSE Small Cap index (up 1.62% to Rs 9,705.20) edged higher. Both these indices underperformed Sensex.

BSE Capital Goods index (up 7.05% to 19,847.66) & BSE Oil& Gas index (up 5.01% to 11,659.65) outperformed Sensex.

BSE Auto (up 0.7% to 5,656.43),BSE Bankex (up 3.66% to 10,649.71),BSE IT (up 0.84% to 4,674.65),BSE Metal (up 2.66% to 17,189.74), and BSE Realty (up 2.54% to 10,275.01) underperformed Sensex.

Q2 September 2007 results announced so far have been decent to strong.

Reserve Bank of India (RBI) holds mid-term review of annual policy due on Tuesday, 30 October 2007 and US Federal Reserve’s meeting on Wednesday, 31 October 2007 on interest rates. As per reports, some bankers and economists expect a marginal cut in key short-term rates, while others feel that RBI might not do so in the face of inflationary expectations looming large due to surging global oil prices.

Meanwhile, analysts speculate that Fed would cut rates by 25 basis points at its policy meeting on Wednesday, 31 October 2007.

Oil & gas stocks surged. India's largest oil exploration firm ONGC rose 7.15% to Rs 1,238.60. It hit an all time high of Rs 1,252.95 today.

India's largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) rose 5.03% to Rs 2,827.65. It hit an all time high of Rs 2,844 today. RIL is reportedly in talks to acquire some manufacturing facilities from Arvind Mills, mainly in the denim segment. The proposed acquisition is part of RIL’s increased focus on the apparel business. Reliance Petroleum (up 9.8% to Rs 221.90) and GAIL India (up 2.09% to Rs 415.15) edged higher.

India's biggest dedicated housing finance firm HDFC rose 9.63% to Rs 2,813.05. It hit an all time high of Rs 2,838 in late trade today.

Maruti Suzuki India rose 0.61% to Rs 1,188.45. The stock came off higher level. It had hit all-time high of Rs 1,252 earlier during the day. Maruti Suzuki India’s net profit rose 26.94% to Rs 466.5 crore on 33.74% rise in total income to Rs 4,735.83 crore in Q2 September 2007 over Q2 September 2006. The results hit the market during trading hours today.

Capital goods stocks rose sharply. India's biggest power equipment maker in terms of revenue Bharat Heavy Electricals rose 7.42% to Rs 2,612.10. It hit an all-time high of Rs 2,697.90 ahead of its results today. India's biggest engineering & construction firm by revenue Larsen & Toubro surged 10.33% to Rs 4,277.45. It hit an all-time high of Rs 4,300 today. Suzlon Energy (up 2.56% to Rs 1,997.90) edged higher.

India's biggest power generation firm National Thermal Power Corporation rose 1.97% to Rs 233.25. It hit an all-time high of Rs 240 today. Net profit of NTPC rose 30.64% to Rs 1925.50 crore on 17.66% rise in sales to Rs 8016.90 crore in Q2 September 2007 over Q2 September 2006. The results were announced on Saturday, 27 October 2007.

Banking majors surged. State Bank of India rose 1.63% to Rs 2,118. It hit an all time high of Rs 2,179.70 today. State Bank of India's net profit rose 36.04% to Rs 1611.42 crore on 33.42% rise in total income to Rs 13658.22 crore in Q2 September 2007 over Q2 September 2006. The results were announced on Saturday, 27 October 2007.

HDFC Bank rose 5.99% to Rs 1,638.70. It hit an all time high of Rs 1,660 today. ICICI Bank rose 5.48% to Rs 1,249.40. It hit an all time high of Rs 1,265 today.

Grasim Industries rose 1.52% to Rs 3,830. It hit an all-time high of Rs 4,074 today. The Aditya Birla Group company on Saturday, 27 October 2007 said it registered a 47.90% jump in net profit to Rs 499.78 crore on 25.30% rise in net sales to Rs 2519.23 crore in Q2 September 2007 over Q2 September 2007.

World’s sixth largest steel maker Tata Steel declined 9.06% to Rs 900.90 and was the top loser from Sensex pack. The stock turned ex-rights from today.

Tata Motors (down 0.41% to Rs 807.10), Bajaj Auto (down 0.54% to Rs 2,502), Ranbaxy Laboratories (down 0.52% to Rs 422.95) edged lower.

Mahindra & Mahindra was down 0.67% to Rs 796.35. Mahindra & Mahindra’s net profit declined 26.01% to Rs 285.94 crore on 12.02% rise in total income to Rs 2,871.54 crore in Q2 September 2007 over Q2 September 2006. The company announced the results during the market hours today.

Side counters, MRF (up 20% to Rs 6,748.65), Welcast Steels (up 20% to Rs 1,123.70), Nesco (up 20% to Rs 2,230.35, LIC Housing Finance (up 31.42% to Rs 360.30), Texmaco (up 20% to Rs 1,383.05) edged higher.

Reliance Natural Resources clocked the highest volume of 4.19 crore shares on BSE. The scrip rose 10.67% to Rs 109.90. Tata Teleservices Maharashtra clocked second highest volume of 3.54 crore shares on BSE. The share price rose 9.83% to Rs 47.50. Reliance Petroleum clocked the third highest volume of 2.51 crore shares. It rose 9.8% to Rs 221.90. Himachal Futuristic Communications clocked fourth highest volume of 1.32 crore shares. It declined 1.89% to Rs 28.50. Power Grid Corporation of India clocked fifth highest volume of 1.14 crore shares. The stock rose 2.1% to Rs 143.65.

Reliance Petroleum clocked highest turnover of Rs 543.11 crore on BSE. Larsen & Toubro (Rs 469.25 crore), Reliance Natural Resources (Rs 448.45 crore), Reliance Industries (Rs 314.53 crore) and Reliance Energy (Rs 248.99 crore) were other turnover toppers on BSE.

European markets opened strong. France’s CAC 40 (up 0.68% to 5,834.44), Germany’s DAX (up 0.6% to 7,997.21) and FTSE 100 (up 1.96% to 6,705.30) edged higher.

Asian markets advanced today, 29 October 2007, following a spurt on Wall Street on Friday, 26 October 2007, with Hang Seng and Seoul Composite hitting record highs. Hong Kong's Hang Seng (up 3.89% at 31,586.90), Japan's Nikkei (up 1.17% at 16,698.08), Taiwan's Taiwan Weighted (up 1.85% at 9,809.88), South Korea's Seoul Composite (up 1.74% at 2,063.47), and Straits Times (up 1.28% at 3,819.78), edged higher.

US crude oil futures jumped more than $1 a barrel to surpass $93 for the first time on Monday, 29 October 2007, supported by news of a halt to one-fifth of Mexico's oil output as well as the weak US dollar and geopolitical tension. It was up $1.28 a barrel at $93.14.

Annual inflation, based on the wholesale price index (WPI), remained unchanged at 3.07% in the week ended 13 October 2007 compared with the week ended 6 October 2007, data released on Friday, 26 October 2007 showed.

Source - Capitalmarket