Market Closing Session - 3rd Dec

Strong buying interest in some index pivotals including Reliance Industries boosted the bourses today. IT pivotals, Wipro, TCS and Satyam Computer edged higher. Reliance Energy spurted. The market breadth was strong. 24 out of 30 stocks from the Sensex pack were in green. Last week's sharp fall in global crude oil prices supported the rally on the bourses.

European markets, which opened after Indian markets, turned negative after a positive start. Asian markets, which opened before Indian market, were mixed.

The 30-share BSE Sensex rose 240.22 points or 1.24% to 19,603.41. The Sensex hit a high of 19,619.32 in mid-afternoon trade trade. At day's high, the Sensex gained 256.13 points.

The broader based S&P CNX Nifty advanced 102.25 points or 1.77% to 5865.

The BSE Mid-Cap index was up 2.46% to 8,764.26. The BSE Small-Cap index was up 2.47% to 10,786.20. Both these indices outperformed the Sensex.

Market breadth was strong on BSE on the back of strong demand for small-cap and mid-cap shares. 2087 stocks advanced, 709 stocks declined and 58 stocks remained unchanged on BSE.

BSE clocked a turnover of Rs 9264 crore compared to Friday (30 November 2007)'s Rs 8,457.32 crore.

Nifty December 2007 futures were at 5876, a premium of 11 points as compared to spot closing of 5865.

NSE’s futures & options (F&O) segment turnover was Rs 54816.5 crore, which was lower than Rs 60313.99 crore on Friday, 30 November 2007

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries rose 2.86% to Rs 2932.20, off day’s low of Rs 2850.

India’s largest private sector bank by assets ICICI Bank fell 1.64% to Rs 1165.25.

India’s largest private sector bank by net profit HDFC Bank declined 1.04% to Rs 1701.20.

The BSE Consumer Durables index soared 6.83% to 5,732.15. It outperformed the Sensex. Gitanjali Gems sprout 7.02% to Rs 464.70, Rajesh Exports jumped 4.80% to Rs 905.20, and Lloyd Electric & Engineering gained 2.51% to Rs 179.70.

Diversified firm Videocon Industries spurted 20% to Rs 491.70 on reports the company has negotiated directly with land owners in Asansol for 2,000 acres for its proposed steel and power plant. The new company--Videocon Steel and Power--will build the 3 million-tonne steel and 1,200 megawatt thermal power plant on 4,000 acres. The project will start with 2,000 acres.

The BSE Power index rose 3.22% to 4,484.10. It outperformed the Sensex. GVK Power & Infrastructure gained 5.51% to Rs 803, Neyveli Lignite Corporation rose 2.72% to Rs 241.95, and NTPC gained 1.35% to Rs 239.85.

Power producer and distributor Tata Power soared 7.72% to Rs 1262.85. The company is reportedly eyeing a bid for Singapore electricity companies Tuas Power, PowerSeraya and Senoko. The report suggests that Singapore's state investor Temasek Holdings is selling its interests in the three firms and Tata Power was evaluating the opportunity.

Anil Dhirubhai Ambani Group (ADAG) led Reliance Energy (REL) jumped 9.32% to 1900.15. As per reports, ADAG will invest Rs 8,000 crore in REL that would help the company to double its net worth and increase its borrowing limit. The infusion is proposed through a preferential offer of shares to Reliance-Anil Dhirubhai Ambani Group. The preferential offer will be made at Rs 1,812 per share. After the equity infusion, the promoter’s stake will increase to 43-45% from the current 35.89%.

The BSE Oil & Gas index rose 3.45% to 12,786.19. It outperformed the Sensex. Essar Oil spurted 20% to Rs 391.35, BPCL gained 4.34% to Rs 402.95, Reliance Petroleum gained 2.32% to Rs 222.80 and Reliance Natural Resources rose 2.97% to Rs 173.20.

State-run oil refiner Indian Oil Corporation moved up 2.05% to Rs 552.50. The company has received approval of its board for acquiring a 5% stake in Oil India by acquiring 1.07 crore equity shares at a price equivalent to its initial public offer price (IPO). The IPO of OIL is slated for the first quarter of 2008.

India’s biggest car-maker by sales Maruti Suzuki India rose 1.96% to Rs 1032.20. The company's domestic sales rose 24% to 65,216 units in November 2007 over November 2006. This is its highest ever monthly domestic sales.

India's top tractor maker by sales Mahindra & Mahindra rose 2.61% to Rs 750.90. The company's vehicle sales rose 37% to 18,585 units in November from 13,597 units a year earlier. Exports rose to 739 units in November 2007 from 443 units a year earlier.

The BSE IT index rose 1.34% to 4,254.05. It outperformed the Sensex. Wipro jumped 7.19% to Rs 493.40, TCS rose 3.85% to Rs 1052.95, and Satyam Computers gained 1.83% to Rs 448.

India’s second largest software exporter by sales Infosys Technologies fell 0.21% to Rs 1600.70.

India's largest steel producer in terms of sales Steel Authority of India (Sail) rose 1.57% to Rs 262.50. The firm reportedly plans to invest Rs 53,000 crore to increase hot metal capacity to 26 million tonnes. The investment is expected to be funded through a mix of debt and equity in the ratio 1:1.

Infrastructure development firm GMR Infrastructure rose 1.87% to Rs 259.25. The GMR Group reportedly plans to invest over Rs 60,000 crore in next five-six years to enhance its power generation capacity in the country and acquire coal assets abroad. GMR Energy, a subsidiary of GMR Infrastructure, has three operational power plants of 388.5 megawatt (MW), 220 MW, 200 MW capacity in Andhra Pradesh, Karnataka and Tamil Nadu respectively.

Term lending institution IFCI jumped 12.90% to Rs 106.80. The firm has reportedly decided to rope in International Finance Corporation, the investment arm of World Bank, as an investor to hold less than 20% stake.

Heavy equipment maker BEML gained 1.40% to Rs 1695.80. The company has reportedly floated a subsidiary in Brazil for sourcing and assembling of mining and construction equipment to cater to the growing Latin American markets. The quantum of investment for the project is still being worked out, the reports added.

Ceramic tiles maker Euro Ceramics rose 7.02% to Rs 220.95. The company is likely to invest Rs 575 crore to increase vitrified tiles production capacity by 1,00,000 tonnes per annum.

Cooling products maker Fedders Lloyd Corporation spurted 13.44% to Rs 143.50 after the company said it has tied up with Victor Company of Japan to bring the latter's consumer electronics products to India.

IDFC clocked the highest turnover of Rs 1215.73 crore on BSE. Essar Oil (Rs 660.55 crore), IFCI (Rs 459.56 crore), Reliance Petroleum (Rs 371.93 crore) and Reliance Energy (Rs 315.78 crore), were the other turnover toppers on BSE in that order.

IDFC registered highest volume of 5.88 crore shares on BSE. IFCI (4.39 crore shares), Tata Teleservices (2.42 crore shares), Ispat Industries (2.42 crore shares) and Essar Oil (2.33 crore shares), were the other volumes topper on BSE in that order.

European markets declined after a positive start. In Europe, key indices in UK, France and Germany were down between 0.01% to 0.24%.

Asian markets were trading mixed today, 3 December 2007. Key indices in Singapore and Hong Kong were up between 0.01% to 0.05%. Key indices in China, Japan, South Korea and Taiwan were down between 0.03% to 0.33%.

Oil prices fell below $89 on Friday on expectations that OPEC will decide to increase output at its meeting in this week. Crude oil hovered above $89 a barrel on Monday, 3 December 2007, after close to $10 fall last week. US crude for January delivery rose nearly $1 to above $89.50 a barrel, but was still well off a record high near $100 set on 21 November 2007.

US markets ended mixed on Friday, 30 November 2007 on the expectation that Fed will cut interest rates by 25 basis points in its meeting scheduled on 11 December 2007. The Dow Jones Industrial Average rose 59.99 points 0.45% to 13,371.72 and The S&P advanced rose nearly 1% to 1,481. However the Nasdaq Composite slipped 0.3% to 2,661.

FIIs sold equities worth Rs 5,849.90 during the month of November 2007. On cumulative basis, FIIs were net buyers of equities to the tune of Rs 65,907.30 crore in calendar 2007 so far.

Source - Capital Markets