Market Closing Session - 7th Dec

Data showing slide in inflation helped the market end the choppy session on a firm note but fall in index heavyweight Reliance Industries capped the rise. Infosys Technologies and ICICI Bank spurted. IT, banking and realty stocks were in demand. Market breadth moved between positive and negative. 15 out of 30 stocks from the Sensex pack were in the red. European markets, which opened after Indian market, were firm in early trade.

The government today warned that increased capital inflows could endanger the growth process, although the economy is buoyant in tune with the trend witnessed since the last four years. Increased capital inflows can impact macro-economic aggregates through the exchange rate, trade and monetary variables, said a half-year economic review tabled by Finance Minister P Chidambaram in Parliament today.

The review said increased inflows have been witnessed especially in the first half of current financial year 2007/08, while the economy's capacity to absorb it has not risen at the same pace, as indicated by the level of current account deficit. There are short term challenges of managing inflows without endangering the growth and price stability, the review said.

The wholesale price index rose 3.01% in 12 months to 24 November 2007, below the previous week's rise of 3.21%, government data released today, 7 December 2007, afternoon showed. The annual inflation rate was 5.55% during the corresponding week of the previous year.

Some Asian markets edged lower after initial rise that was triggered by easing of US recession worries after US President George W. Bush, on Thursday, 6 December 2007, unveiled plans aimed at stemming US home loan foreclosures.

The 30-share BSE Sensex rose 170.13 points or 0.86% to 19,966. Sensex hit a low of 19,706.43 in afternoon trade. At days low it shed 89.44 or 0.45%. Sensex had hit a high of 20,094.56 in early trade. At day's high, Sensex had gained 298.69 points.

Sensex had hit all-time high of 20,238.16 on 30 October 2007 but was not able to sustain at higher levels and it is yet to close above the physcological 20,000 level. The Sensexs all time closing high is 19,977.67 on 29 October 2007.

The broader S&P CNX Nifty rose 19.60 points or 0.33% at 5974.30. It touched a high of 6042.10 in early trade today, which is a new record high. Nifty had hit an all-time high of 6027.05 on Thursday, 6 December 2007.

The BSE Mid-Cap index fell 0.13% to 9,021.96. The BSE Small-Cap index was down 0.16% to 11,342.27. Both these indices underperformed the Sensex.

Market breadth was positive. On BSE, 1460 stocks advanced, 1406 stocks declined and 43 stocks remained unchanged.

BSE clocked a turnover of Rs 8598 crore compared to yesterday (6 December 2007)s turnover of Rs 9,762.59.

Nifty December 2007 futures were at 5993, a premium of 18.70 points as compared to spot closing of 5974.30.

NSEs futures & options (F&O) segment turnover was Rs 61359.41 crore, which was lower than Rs 66472.74 crore on Thursday, 6 December 2007

Indias largest private sector firm by market capitalization & oil refiner Reliance Industries slipped 1.14% to Rs 2841.65, off days low of Rs 2915.

The BSE IT index rose 3.69% to 4,424.57. It outperformed the Sensex. Indias second largest software exporter by sales Infosys Technologies soared 5.09% to Rs 1718.15.

Tech Mahindra soared 9.93% to Rs 1224.50, I-Flex Solutions gained 5.78% to Rs 1614, TCS rose 2.62% to Rs 1061.25, Wipro gained 1.85% to Rs 502.55 and Satyam Computers rose 1.59% to Rs 443.75.

Telecom stocks edged higher. Indias largest listed cellular service provider by market share Bharti Airtel jumped 2.10% to Rs 959.65.

Indias second largest listed telecom service provider by sales Reliance Communications rose 2.17% to Rs 734.30 on reports that Department of Telecommunications (DoT) on Thursday, 6 December 2007 awarded a pan-India GSM licence to the company.

The BSE Bankex rose 2.43% to 11,377.96. It outperformed the Sensex. Indias largest private sector bank by assets ICICI Bank jumped 4.02% to Rs 1247.50.

Centurion Bank of Punjab soared 14.14% to Rs 55.70, Oriental Bank of Commerce rose 2.31% to Rs 276.80, HDFC Bank rose 2.09% to Rs 1721.25 and State Bank of India rose 1.67% to Rs 2436.

The BSE Realty index rose 2.02% to 11,576.63. It outperformed the Sensex. DLF rose 4.13% to Rs 1011.35, Mahindra Lifespace Developers soared 8.075 to Rs 797.80, Peninsula land jumped 6% to Rs 150.15, Parsvnath Developers gained 3.95% to Rs 396.95, Indiabulls Real Estate rose 3.20% to Rs 687.55, and Omaxe rose 2.44% to Rs 493.80. However, Unitech fell 0.51% to Rs 428.95, and Sobha Developers declined 1.48% to Rs 895.65.

The BSE Metal index fell 0.97% to 18,738.08. It underperformed the Sensex. Hindalco Industries fell 2.51% to Rs 188.15, Jindal Stainless declined 2.35% to Rs 226.65, Hindustan Zinc gave away 1.99% to Rs 806.05, Steel Authority of India fell 1.84% to Rs 274.20, and Tata Steel shed 1.63% to Rs 833.40.

The BSE Auto index fell 0.85% to 5,651.30. It underperformed the Sensex. MICO slumped 4.06% to Rs 4954.20, Amtek Auto declined 3.70% to Rs 443, MRF fell 3.49% to Rs 7202.55, Hindustan Motors shed 2.86% to Rs 47.60, and Tata Motors fell 0.56% to Rs 771.10. However, Maruti Suzuki was steady at Rs 1042.25.

Auto components maker Bharat Bharat Forge jumped 2.43% to Rs 351.60 on reports that the company is joining hands with NTPC to set up a new greenfield manufacturing facility in the country. The joint venture will look at manufacturing power plant equipment, including turbines, components and accessories, through technological tie-ups with other manufacturers. NTPC was up 0.27% to Rs 245.65.

Automobile tyre maker CEAT rose 2.83% to Rs 218.05 on reports that company plans to invest more than Rs 1000 crore to expand capacity and is hopefull of selling surplus land in Mumbai by March 2008.

United Breweries (Holdings), the flagship firm of UB Group, fell 3.36% to Rs 1085.90 after Kingfisher Airlines posted a net loss of Rs 577 crore in the financial year ended March 2007. The loss was on revenue of Rs 1,553 crore earned during the year.

Commercial vehicles maker Eicher Motors soared 8.22% to Rs 545.45 on reports that Swedish auto major Volvo is close to a joint venture with the company. Eicher Motors is expected to spin off its commercial vehicle unit into the venture. The valuation of the venture would be around $1 billion after the merger.

Indias second largest iron castings manufacturer by sales Electrosteel Castings fell 2.18% to Rs 80.95 on reports that the company is planning an expansion, for which it may raise $25 million through private placement route.

Textile firm Modern India was locked at upper limit of 5% at Rs 952.95 after the company said on Friday, 7 December 2007 its board would meet on 17 December 2007 to consider stock split.

Solvent extraction firm Sanwaria Agro Oils rose 1.23% to Rs 111.45 after its board approved 2-for-1 stock split plan.

Infrastructure development firm GMR Infrastructure fell 6.05% to Rs 242.20 after National Stock Exchange curbed fresh positions in the derivatives contracts of the firm.

Speciality chemicals maker Jayant Agro Organics jumped 2.30% to Rs 104.50 after Japan's Mitsui & Company and Mitsui & Co (Asia Pacific) formed a joint venture to take a 24% stake in its speciality chemicals unit.

Ispat Industries clocked the highest turnover of Rs 259.06 crore on BSE. Reliance Petroleum (Rs 236.80 crore), Reliance Natural Resources (Rs 221.49 crore), IFCI (Rs 182.74 crore) and Reliance Industries (Rs 182.29 crore), were the other turnover toppers on BSE in that order.

Ispat Industries registered the highest volumes of 3.69 crore shares on BSE. Centurion Bank pf Punjab (2.51 crore shares), IFCI (1.79 crore shares), Tata Teleservices (Rs 1.59 crore shares) and Reliance Natural Resources (1.25 crore shares), were the other volume toppers on BSE in that order.

In Europe, key indices in UK, France, and Germany were up between 0.62% to 1.17%.

Asian markets were mixed today, 7 December 2007. Key indices in China, Japan, Singapore and Taiwan were up 0.15% to 1.13%. However, Key indices in Hong Kong and South Korea were down between 0.97% to 2.42%.

US markets surged on Thursday, 6 December 2007 on optimism that a plan announced by President George W Bush to stem US home foreclosures would keep the economy from sliding into a recession. The Dow Jones industrial average surged 174.93 points, or 1.30%, to end at 13,619.89. The Standard & Poor's 500 Index .SPX climbed 22.33 points, or 1.50%, to 1,507.34. The Nasdaq Composite Index soared 42.67 points, or 1.60%, to 2,709.03.

The Bank of England lowered its key interest rate on Thursday, 6 December 2007 citing signs of slowing growth. The Monetary Policy Committee, or MPC, voted to reduce the official bank rate paid on commercial bank reserves by 0.25 basis points to 5.5%. However the European Central Bank Monetary Policy Committee decided to keep interest rates on hold at 4% after their monthly policy meeting yesterday, 6 December 2007.

Crude oil was little changed in New York after rising the most in almost three weeks as U.S. inventories dropped as refiners prepared to meet heating demand. Crude oil for January delivery rose 3 cents to $90.26 a barrel on the New York Mercantile Exchange in Singapore. Brent crude oil for January settlement yesterday rose $1.69, or 1.9%, to settle at $90.18 a barrel on the London-based ICE Futures Europe exchange.

Source - Capital Markets