Market Closing Session - 2nd Jan

The market propelled from lower levels in highly volatile trade to strike record high in late trade. The market had opened firm but it had immediately lost ground on profit booking. Banking stocks led rebound from lower level in late trade. Reliance Industries (RIL) came off lower level. IT pivotals were subdued. Turnover surged. The market breadth was strong. BSE Mid-Cap and the BSE Small-Cap indices struck all-time high. Both the niche indices BSE Sensex and S&P CNX Nifty settled at all-time highs

Asian markets, which opened before Indian market, drifted lower. European markets, which opened after Indian market, were mixed.

The 30-share BSE Sensex surged 164.59 points or 0.81% to settle at record closing peak of 20,465.30. Sensex hit a record high of 20,529.48 in late trade. It hit a low of 20,077.40 in mid-morning trade. At day's low, Sensex had lost 233.31 points. Sensex oscillated in a wide range of 452.08 points in the day in volatile trade.

The broader CNX S&P Nifty was up 35.05 points or 0.57% at 6179.40, a record closing high. It struck an all time high of 6197 in late trade

The market breadth which was strong on BSE. 1974 shares advanced as compared to 934 that declined. 13 remained unchanged.

The BSE Mid-Cap index was up 1.25% to 10,058.94 while the BSE Small-Cap index was up 1.50% to 13,908.97. Both these indices outperformed the Sensex.

The BSE Mid-Cap index hit all-time high of 10,096.13 and the BSE Small-Cap index struck all-time high of 13,998.01 today.

Turnover on BSE was high today. It amounted to Rs 10,984 crore as compared to Rs 8,955.61 crore yesterday, 1 January 2008.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 628.68 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 427.11 crore today, 2 January 2008.

Majority of sectoral indices on BSE posted gains. BSE FMCG Index (up 0.93% at 2,397.10), BSE PSU index (up 1.32% to 10,773.91), BSE Health Care index (up 1.27% at 4,467.40), BSE Realty (up 2.93% to 13,419.67), BSE Oil and Gas index (up 0.83% at 13,391.12), Bankex (up 3.13% to 11,870.49), outperformed the Sensex.

BSE Power Index (up 0.23% at 4,658.31), BSE Auto index (up 0.78% at 5,672.46), BSE Metal index (up 0.50% at 20,160.85), BSE Consumer Durables index (up 0.03% to 6,899.22), BSE TecK index (down 0.32% to 3,960.64), BSE Capital Goods index (down 0.21% at 19,707.25), BSE IT index (down 0.46% to 4,451.02), underperformed the Sensex.

Among the Sensex pack, 16 advanced while the rest declined.

Indias largest private sector power utility company in terms of net profit, Reliance Energy (REL) rose 4.09% to Rs 2372.10. It was the top gainer from Sensex pack. The stock hit all-time high of Rs 2378.70 today. Asper reports, Reliance Power in which REL holds 50% stake, plans to raise as much as $3 billion in the nation's biggest initial public offering. Reliance Power, the power generating unit of REL will sell 26 crore shares in a price band of Rs 405 to Rs 450 per share.

Housing Development Finance Company, the nationss largest dedicated housing finance company in terms of operating income rose 3.81% to Rs 3030. Recently, HDFC agreed to sell 7.15% stake in its life insurance joint venture - HDFC Standard Life Insurance Company - to its foreign partner, Standard Life (Mauritius Holdings), for about Rs 201 crore.

Banking shares surged on fresh buying. State Bank of India (up 1.17% to Rs 2413.20), ICICI Bank (up 3.42% to Rs 1273) advanced.

State run banking stocks surged. Canara Bank (up 14.03% to Rs 392.05), Allahabad Bank (up 7.89% to Rs 139.50), and Andhra Bank (up 7.20% to Rs 119.85), surged. Private sector banks Kotak Mahindra Bank (up 7.60% to Rs 1388), Axis Bank (up 5.65% to Rs 1028) and Federal Bank (up 4.59% to Rs 347.85), surged.

Indias largest private sector firm by market capitalization & oil refiner Reliance Industries rose 0.49% to Rs 2860.95. The stock recovered from days low of Rs 2818.10. 2.91 lakh shares were traded on the counter on BSE

Indias largest cigarette manufacturer in terms of sales, ITC rose 1.75% to Rs 221.40. It hit an all time high of Rs 227 in early trade. As per recent reports, ITC's subsidiary Fortune Park Hotels plans to invest around Rs 130 crore in three or four hotels in Bangalore, Coimbatore and Kolkata

Indias largest power generation company in terms of sales, National Thermal Power Corporation rose 0.23% to Rs 257.40 on high volumes of 64.52 lakh shares. A single block deal of 39.21 lakh shares was struck on the counter on BSE at Rs 252.45 per share at 10:35 IST

Maruti Suzuki India, the countrys top small car maker in terms of sales, rose 0.13% to Rs 993 after it posted 10% rise in sales to 62,515 vehicles in December 2007 over December 2006.

Indias top tractor maker in terms of sales, Mahindra & Mahindra slipped 0.56% Rs 860 on reports its vehicle sales rose a muted 1% to 15,316 units in December 2007 over December 2006.

Indias second largest bike manufacturer in terms of sales, Bajaj Auto declined 0.01% to Rs 2604 after it posted 7% decline in sales to 1,99,470 units in December 2007 over December 2006.

Indias second largest cement company in terms of sales, ACC lost 1.56% to Rs 1012.10. It was the top loser from Sensex pack.

IT pivotals edged lower. Wipro (down 1% to Rs 510.50), TCS (down 0.81% to Rs 1045.15), Satyam Computers (down 1.38% to Rs 437.50), edged lower. However, Infosys Technologies rose 0.59% to Rs 1760, off its days low of 1715.35

Reliance Natural Resources was the top traded counter on BSE with turnover of Rs 476.88 crore followed by Reliance Energy (Rs 230.70 crore), Essar Oil (Rs 346.50 crore), UCO Bank (Rs 81.15 crore) and Religare Enterprices (Rs 178.90 crore).

GV Films was the volume topper on BSE with total volume of 4.19 crore shares followed by Reliance Natural Resources (2.51 crore shares), UCO Bank (2.33 crore shares), Centurion Bank of Punjab (2.27 crore shares), and IKF Technologies (2.26 crore shares), in that order.

Gujarat Ambuja Exports was up 0.35% Rs 100. The company today said it has bagged orders worth Rs 200 crore for exporting groundnut oil to European countries.

PTC India rose 7.19% to Rs 169.95 after it divested a 40% stake in its wholly owned subsidiary PTC India Financial Services, to Goldman Sachs and Macquarie India for Rs 150 crore.

Parsvnath Developers was down 0.05% Rs 475.80 after the company said it has received a letter of intent from Director, Town and Country Planning, Haryana to develop an information technology park project in the state.

Godrej Industries was down 1.33% Rs 418. The company said on Tuesday, 1 January 2008, it had signed an agreement to transfer its medical diagnostics division to ICICI Venture-backed RFCL for an undisclosed amount.

Pyramid Saimira Theatre rose 1.02% to Rs 504.80 on reports that the company is set to acquire a multiplex chain in the United Kingdom that runs 60 screens across the country.

Wockhardt rose 2.48% Rs 430 after the company said late on Tuesday, 1 January 2008, it had launched its cetirizine tablets in the US, following approval from the US Food and Drug Administration.

Indiabulls Financial Services surged 20% Rs 859.10 on reports of Indiabulls group entering the gaming business by picking up a 10% stake in High Street Cruises & Entertainment.

City Union Bank surged 10% to Rs 468.60 after the bank fixed 30 January 2008 as the record date for the purpose of stock split of equity share of Rs 10 into 10 equity shares of Rs 1 each.

European markets were trading mixed. France's CAC 40 index (down 0.23% to 5,614.80) and UK's FTSE 100 index (down 0.31% to 6,456.90) slipped. However Germanys DAX (up 0.36% to 8,067.32) slipped.

Asian markets settled lower. Hong Kong's Hang Seng (down 0.91% at 27,560.52), Taiwan's Taiwan Weighted (down 2.15% at 8,323.51), Singapore's Straits Times (down 0.74% at 3,456.58) and South Korea's Kospi (down 2.30% at 1,853.10), edged lower. Shanghai Composite rose 0.2% at 5,272.81

US market was closed on Tuesday, 1 January 2008, for the New Year holiday.

Crude oil rose above $96 a barrel today, 2 January 2008 as a storm dropped snow in the Northeast and on speculation U.S. stockpiles fell for a seventh week. Crude oil for February delivery rose as much as 62 cents, or 0.7%, to $96.60 a barrel on the New York Mercantile Exchange.

The Securities and Exchange Board of India (Sebi) chairman M Damodaran today, 2 January 2008, said institutional investors would be allowed to short sell from 1 February 2008. Damodaran's comments came a day after the Reserve Bank of India allowed foreign institutional investors to short sell shares.

Source - Capital Markets