Market Closing Session - 28th Nov

In a completed reversal of the trend, the market lost ground in the latter part of the trading in contract to an initial surge. Oil & gas and metal stocks were worst hit. Index heavyweight Reliance Industries (RIL) lost ground. Auto stocks were in demand. The market breadth turned negative from positive in late trade. 23 out of 30 stocks from the Sensex pack were in red.

Asian stocks started the day stronger, tracking gains in US markets, but worries about the credit market soon returned, pushing most of the markets in the red. European markets, which opened after Indian markets, were mixed.

The market has been volatile over the past few days due to alternate bouts of buying and selling amid FII sales caused by redemption pressure in their home countries and fears of a US recession arising from US housing slump and credit crisis.

Prime Minister Manmohan Singh today, 28 November 2007, declared in Parliament that the Indo-US nuclear deal does not bar India from carrying out nuclear tests in future. If a necessity for carrying out a nuclear test arises in future, there is nothing in the agreement that prevents us from carrying out tests, he said in a brief intervention in Lok Sabha. A discussion is going on today in Parliament on the nuclear deal.

The 30-share BSE Sensex ended down 188.86 points or 0.99% to 18,938.87. The Sensex hit a low of 18,884.20 at the fag end of the trading session. At day's low, the Sensex shed 243.53 points. The Sensex had hit a high of 19,316.76 in early trade. At day's high, the Sensex gained 189.03 points.

The broader based S&P CNX Nifty was down 80.60 points or 1.41% to 5617.55. Nifty had hit a high of 5749.95 earlier during the day. At day's high, Nifty had risen 51.80 points.

The BSE Mid-Cap index ended down 0.12% to 8,383.49. The BSE Small-Cap index ended up 0.03% to 10,375.30. Both these indices outperformed the Sensex.

The market breadth was negative. On BSE, 1306 stocks advanced, 1497 stocks declined and 70 stocks remained unchanged.

BSE clocked a turnover of Rs 7435 crore, higher than Tuesday (27 November 2007)'s Rs 7,281.08 crore.

Nifty November 2007 futures were at 5638.55, a premium of 21 points as compared to spot closing of 5617.55.

NSEs futures & options (F&O) segment turnover was Rs 86287.52 crore, which was higher than Rs 75192.11 crore on Tuesday, 27 November 2007

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries was down 1.96% at Rs 2786.15.

The BSE Auto index gained 1.05% to 5,404.15. It outperformed the Sensex. MICO surged 10.91% to Rs 4935.95, Cummins India soared 6% to Rs 412.50, Maruti Suzuki spurted 3.11% to Rs 966.70, Bajaj Auto gained 2.82% to Rs 2727.90.

TVS Motors declined 7.63% to Rs 64.80, Ashok Leyland fell 7.24% to Rs 44.20, Exide Industries fell 3.64% to Rs 70.10, and Hero Honda Motors fell 2.70% to Rs 708.90.

The BSE Bankex fell 1.01% 10,389.21. It underperformed the Sensex. Federal bank fell 3.65% to Rs 312.40, Axis Bank fell 2.81% to Rs 908.50, Punjab National Bank los 2.53% to Rs 584.15, Karnataka Bank fell 2.13% to Rs 211.35 and HDFC Bank fell 1.50% to Rs 1607.95.

Indias largest private sector bank by assets ICICI Bank lost 0.50% to Rs 1126.75, off days high of Rs 1160.

The BSE Metal index fell 2.12% to 16,976.36. It underperformed the Sensex. Steel Authority of India (Sail) dropped 4.57% to Rs 251.60, Hindalco Industries fell 3.66% to Rs 184.35, Tata Steel fell 3.51% to Rs 818.70 and Sterlite Industries fell 2.02% to Rs 889.95. National Aluminim Company (Nalco) plunged 5.87% to Rs 357.40.

The BSE Oil & Gas index dropped 2.29% to 11,917.58. It underperformed the Sensex. BPCL fell 4% to Rs 390.10, HPCl fell 2.25% to Rs 286.60, and ONGC fell 1.87% to Rs 1150.55.

GAIL India, which distributes natural gas and processes petrochemicals, declined 0.65% to Rs 424.85, off sessions high of Rs 445.90. As per reports, the company has won the rights to market the gas jointly produced by Reliance Industries, British Gas and ONGC from the Panna-Mukta-Tapti fields, which will boost revenues of the company by over Rs 5,00 crore.

The BSE Power index fell 1.14% to 4,297.82. It underperformed the Sensex. Neyveli Lignite slumped 6.12% to Rs 208.70, Reliance Energy 2.93% to Rs 1704, CESC fell 2.08% to Rs 582.10, Tata Power fell 1.885 to Rs 1114.45 and NTPC fell 1.70% to Rs 230.95.

The BSE IT index fell 0.63% to 4,081.40. It outperformed the Sensex. TCS fell 2.11% to Rs 975.75, Wipro fell 1.81% to Rs 449.45, and Satyam Computers fell 0.56% to Rs 424.95. Indias second largest software exporter by sales Infosys Technologies fell 0.40% to Rs 1569.55.

Realty major DLF fell 2.05% to Rs 879.50 after the company said on Tuesday, 27 November 2007, it had partnered the founder of Aman Resorts for a stake in the luxury hotel chain

Diversified construction firm Jaiprakash Associates soared 4.70% to Rs 1794.75. The company is believed to be in talks with the Aditya Birla group to acquire Bina Power (BPC) in Madhya Pradesh. The company, in a communiqu to BSE, said that as a sequel to exploring new business opportunities the company is examining various proposals including Bina power project in Madhya Pradesh

Engineering firm Punj Lloyd fell 1.82% to Rs 456.15. The company and New York-based private investment firm Global Technology Investment have reportedly bought 33% stake each in Airworks India. Airworks is one of the oldest family-owned aircraft maintenance firms in India. The two investors are putting in close to Rs 100 crore to rejig the Mumbai-based company.

Steel firm Ruchi Strips soared 20% to Rs 24.57 on reports that Japans Mitsui & Company has scaled up stake in the Ruchi-group-controlled Indian Steel Corporation to 20% by picking up 10% stake for Rs 65 crore.

Pharmaceuticals firm Ambalal Sarabhai Enterprises was locked at upper limit of 5% at Rs 36.90 after the company sold land admeasuring 28,430.58 square metres to DLF Retail Developers at a consideration of Rs 51.14 crore. The land that it sold constituted only a small part of the total land of the company.

Steel firm Bhushan Steel jumped 5.71% to Rs 1446.30. As per reports, Sanjay Singal, who holds 11% stake in Bhushan Steel, is said to have initiated preliminary talks with the AV Birla group for stake sale. Chairman of the group Brij Bhushan Singal and his younger son Neeraj Singal, the managing director of Bhushan Steel, have opposed any such move, reports suggest.

Electric equipment maker NEPC India was locked at upper limit of 5% at Rs 25.40 after the company said on 27 November 2007 its proposed foray into solar photo voltaic modules and power plant is proceeding on the right track.

Software firm Mindteck (India) gained 4.72% to Rs 54.35 after it said on Tuesday, 27 November 2007, it is acquiring ICI Tech Holdings Inc and its wholly-owned subsidiary.

Anil Dhirubhai Ambani-led Relaince Natural Resources (RNRL) rose 1.92% to Rs 15.45 on huge volumes of 1.89 crore shares on BSE amid speculations that Reliance Industries (RIL) may buyout RNRL as a solution to the seemingly intractable gas dispute between the two Ambani brothers. RNRL, in a communiqu to BSE, said that it is not the policy of the company to comment on speculation and rumours. Developments, if any, which concern stake-holders of the company, will be intimated in due course and at appropriate time, it said.

Mukesh Ambani-led Reliance Petroleum fell 2.98% to Rs 192.10 on volumes of 1.46 crore shares on BSE on reports that Securities & Exchange Board of India (Sebi) is likely to probe into the stock's recent price rise.

Software firm Valuemart Info Technologies rose 9.47% to Rs 7.86 after the company said that it has acquired a 74% stake in Datatalk Services (India), a Bangalore based IT & BPO Company for an undisclosed sum.

Cinema chain PVR soared 7.02% to Rs 293.60. Some recent reports suggested that the company plans to invest Rs 300-400 crore to open 250 screens by 2010.

Tyre maker CEAT rose 1.23% to Rs 197.60 ahead of the spin-off of the firm's investment business. Reports suggest that the company's manufacturing and investment business would be separated soon. Each shareholder of the firm would get shares in the investment company.

Mundra Port and Special Economic Zone clocked highest turnover of Rs 324.13 crore on BSE. Reliance Natural Resources (Rs 302.87 crore), Housing Development & Finance Corporation (Rs 291.87 crore), Reliance Petroleum (Rs 285.35 crore) and GMR Infrastructure (Rs 221.29 crore), were the other turnover toppers on BSE in that order.

Reliance Natural Resources regestered highest highest volume of 1.89 crore shares on BSE. Ispat Industries (1.88 crore shares), Reliance Petroleum (1.46 crore shares), Tata Teleservices (1.24 crore shares) and Ashok Leyland (1.19 crore shares), were the other volume toppers on BSE in that other.

In Europe, key indices in France, Germany and UK were up by between 0.27% to 0.92%.

Asian stock markets were mostly into the red. Key benchmark indices in South Korea, Japan, Singapore and Taiwan, China, were down by between 0.09% to 1.35%. Hong Kongs Hang Seng was up 0.59%.

US stocks rose on Tuesday, 27 November 2007, after Abu Dhabi's $7.5 billion purchase of a stake in Citigroup Inc spurred a rebound in financial stocks and a drop in oil prices boosted shares of big manufacturers. The Dow Jones industrial average was up 215 points, or 1.69%, at 12,958.44. The Standard & Poor's 500 Index was up 21.01 points, or 1.49% at 1,428.23. The Nasdaq Composite Index was up 39.81 points, or 1.57%, at 2,580.80.

As per provisional data, FIIs sold shares worth a net Rs 978.96 crore today. Domestic funds bought shares worth a net Rs 331.82 crore today.

FII outflow in November 2007, till 26 November 2007, reached Rs 4158.60 crore. FIIs had made heavy purchases in September 2007 and October 2007. FIIs had bought shares worth a net Rs 16132.60 crore in September 2007 and Rs 20590.90 crore in October 2007.

The National Stock Exchange (NSE) today, 28 November 2007, said it has decided to add 15 stocks to futures & options (F&O) segment with effect from Friday, 30 November 2007.

The 15 new inclusions for trading in F&O segment include Jindal Saw, KPIT Cummins Infosystems, Development Credit Bank, Hindustan Zinc, MICO, Info Edge, NIIT, Great Offshore, Wire & Wireless India, Redington (India), Network18 Fincap, Global Broadcast News, Ispat Industries, Hindustan Oil Exploration and Gitanjali Gems.

BSE on Tuesday, 27 November 2007, announced that it was shifting a total of 414 scrips from trade to trade to normal rolling settlement. The shift will take place effective from Monday 3 December 2007. BSE said these scrips that are being shifted back to normal rolling settlement from trade to trade segment will continue to attract daily circuit filter of 5% or lower as applicable.

Among the stocks being shifted back to normal rolling settlement from trade to trade include ABG Heavy Industries, Aksh Optifibre, Ambalal Sarabhai Enterprise, Andrew Yule & Company, Assam Company, Birla VXL, BPL, Cable Corporation of India, Dhanalakshmi Bank, Emkay Share & Stock Brokers, Jai Corp, Jhunjhunwala Vanaspati, L.M.L., Ramkrishna Forgings.

Source - Capital Markets