Market Closing Session - 12th May

Frenzied buying in late trade helped market snap its five-day slide. The market, which had opened lower tracking weak US markets on Friday, 9 May 2008, accentuated fall in afternoon trade triggered by dismal industrial production data. It bounced back in late trade in what was a highly volatile trading session today.

Firm European and Asian markets triggered the rebound. The S&P CNX Nifty galloped past the 5,000 mark.

India's industrial production growth dropped sharply to 3% in March 2008, slowing from the previous month's unrevised 8.6%, government data showed on Monday, 12 May 2008. It was the slowest annual growth since a 2.4% rise in February 2002.

Manufacturing production rose 2.9% in March 2008 from a year earlier, compared with 8.6% growth in February 2008. Industrial output rose 8.1% in 2007/08 compared with 11.6% in 2006/07.

In Europe, the key benchmark indices in UK, France and Germany were up by 0.6% to 1%. Asian markets reversed early losses to post gains today, 12 May 2008. Nikkei 225 Average (up 0.64% at 13,743.36), Straits Times index (up 0.70% at 3,184.19), Taiwan Weighted index (up 0.43% at 8,830) and Sanghai Composite index (up 0.37% at 3,626.98) advanced.

The 30-share BSE Sensex rose 123.83 points or 0.74% to 16,860.90. Sensex gained 160.29 points at the day's high of 16,897.36 hit in late trade. Sensex hit a low of 16,546.55 in early-afternoon trade. At the days low, Sensex lost 190.52 points. It oscillated in a band of 350.81 points during the day

The broader based S&P CNX Nifty was up 30.05 points or 0.60% at 5,012.65. Nifty May 2008 futures were at 5026.90, a premium of 14.25 points as compared to spot closing.

The Sensex had plunged 863.05 points or 4.9% in five straight trading sessions to 16,737.07 on 9 May 2008 from 17,600.12 on 2 May 2008 as the bears kept hammering stocks cutting across sectors.

Despite the rally in key benchmark indices, the market breadth was weak today. On BSE, 1746 shares declined as compared to 951 that advanced. 51 remained unchanged.

The BSE Mid-Cap index was down 0.67% to 6,945.91 while the BSE Small-Cap index shed 1.20% to 8,403.56. Both these indices underperformed the Sensex

The total turnover on BSE amounted to Rs 5971 crore as compared to Rs 6,594.69 crore on Friday, 9 May 2008. Turnover in NSEs futures & options segment amounted to Rs 41000.80, higher than Rs 34951 crore on Friday, 9 May 2008

Sectoral indices on BSE displayed mixed trend. The BSE TecK index (up 1.03% to 3,409.13), BSE IT index (up 1.48% to 4,297.84), BSE FMCG index (up 1.11% at 2,486.04), BSE Oil & Gas index (up 1.02% to 11,193.69), outperformed the Sensex.

The BSE PSU index (down 0.07% to 7,738.54), BSE Bankex (up 0.63% at 8,565.13), BSE Auto (down 0.75% at 4,688.31), BSE Health Care index (up 0.59% at 4,177.31), BSE Metal index (up 0.23% to 15,647.31), BSE Realty index (down 1.95% at 7,736.91), the BSE Power (up 0.62% to 3,219.05), BSE Capital Goods index (up 0.10% at 13,121.82), and BSE Consumer Durables index (down 0.12% to 4,341.13), underperformed the Sensex.

Among the 30-member Sensex pack, 22 gained while the rest slipped.

Indias largest pharma company in terms of sales, Ranbaxy Laboratories surged 5.44% to Rs 495 on 6.10 lakh shares. It was the top gainer from Sensex pack. Ranbaxy Laboratories signed a deal to develop new anti-infective drugs for US-based Merck & Co Inc. As per the deal, Ranbaxy will carry out drug discovery and clinical development through Phase II clinical trials, while Merck will be responsible for the development and commercialisation.

IT stocks advanced on fresh buying as the rupee fell below 42 level against the dollar, at its lowest in almost 13 months. Satyam Computer Services (up 3.72% to Rs 491), TCS (up 1.08% to Rs 927.40), Wipro (up 1.60% to Rs 509.20), and Infosys Technologies (up 1% to Rs 1768), advanced.

A depreciating rupee augurs well for IT companies as they derive over 50% of their revenues from exports to US.

Indias largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) recovered from days low of Rs 2480 and settled 1.08% higher to Rs 2555 on 8.44 lakh shares. Earlier last week RIL had shut all of its 1,432 petrol pumps in the country after sales dropped to almost nil as it could not match the subsidised price offered by public sector competition.

Indias largest state run engineering company in terms of outstanding order book position Bharat Heavy Electricals gained 1.77% to Rs 1755 after the company said it has signed a memorandum of understanding with Andhra Pradesh Power Generation Corp for setting up a 125 megawatt coal-based power plant.

Banking stocks staged smart recovery from lower levels. India's biggest commercial bank, State bank of India settled 1% lower at Rs 1659, off days low of Rs 1620. India's biggest private sector bank in terms of net profit, ICICI Bank rose 0.22% to Rs 876, off days low of Rs 861.15. Indias second largest private sector bank in terms of net profit HDFC Bank rose 1.72% to Rs 1476.90 recovering from session's low of Rs 1430.

Indias largest power generation company in terms of sales, NTPC gained 0.34% to Rs 192.50 after its board decided setting up a research and development fund for undertaking activities leading to development of sustainable energy. The company will allocate 0.5% of distributable profit annually for sustainable energy initiative.

Diversified company Grasim lost 3.76% to Rs 2252 on 44,431 shares. It was the top loser from Sensex pack.

Jaiprakash Associates (down 1.77% to Rs 246.85, off days low of Rs 235), ACC (down 1.26% to Rs 703, off days low of Rs 690), and Hindustan Unilever (down 1.40% to Rs 246.95, off days low of Rs 242.25), though in the red were off their days low.

Indias top tractor maker Mahindra & Mahindra (M&M) slipped 0.48% to Rs 669. The company said on Friday, 9 May 2008, it is hiking vehicle prices in the range of 1.5% to 2.5% due to rise in input costs. The price hikes will come into effect from 19 May 2008.

Shares of state-run oil marketing companies (OMC) declined as US light crude for June delivery was hovering near $126.14 a barrel today, 12 May 2008 after soaring to a record high of $126.27 in late trade on Friday, 9 May 2008. Bharat Petroleum Corporation (down 4.51% to Rs 358), Hindustan Petroleum Corporation (down 2.08% to Rs 237.25), and Indian Oil Corporation (down 4.71% to Rs 421.80), declined.

The sharp spurt in crude prices is putting further pressure on fuel retailers as they continue to sell products below the cost price. OMCs currently sell petrol at a loss of Rs 13.97 a litre and diesel at a discount of Rs 20.97 per litre.

However oil exploration company Cairn India galloped 11.63% to Rs 305.80, an all-time high buoyed by anticipation that higher crude oil prices will boost realisations.

Reliance Petroleum was the top traded counter on BSE with a turnover of Rs 316.97 crore followed by Cairn India (Rs 260.68 crore), Reliance Capital (Rs 258.47 crore), Reliance Industries (Rs 214.02 crore) and Reliance Natural Resources (Rs 182.1 crore) in that order.

Recently listed Aishwarya Telecom spurted 13.79% to Rs 98.20 on momentum buying. It was the top traded counter on BSE clocking huge volumes of 6.07 crore shares. Reliance Petroleum (1.78 crore shares), Reliance Natural Resources (1.75 crore shares), IFCI (1.34 crore shares), and Cairn Indian (89.5 lakh shares) were the other volume toppers in that order.

Among the side counters, Kabra Extrusion Technik (up 15.27% to Rs 141.15), Bombay Paints (up 14.43% to Rs 91.60), and BASF India (up 12.44% to Rs 254.50), surged

However JK Sugar (down 12.13% to Rs 26.80), Hatsun Agro (down 12.10% to Rs 430), and Aro Granite (down 10% to Rs 100.90), slipped

Power Finance Corporation declined 3.69% to Rs 157.80 on reporting 19.9% fall in net profit to Rs 295.4 crore on 10.39% increase in net sales to Rs 1366.86 crore in Q4 March 2008 over Q4 March 2007. The company announced the results on Saturday, 10 May 2008.

Arvind Mills jumped 3.80% to Rs 51.85 despite posting 0.6% decline in net profit to Rs 5.37 crore on 35.4% rise in sales to Rs 658.37 crore in Q4 March 2008 over Q4 March 2007. The company announced the results on Saturday 10 May 2008.

SEL Manufacturing Company rose 7.83% to Rs 489 on reporting net profit of Rs 12.45 crore on total income of Rs 144.21 crore in Q4 March 2008. Figures for the corresponding previous year period were not available.

Blue Star shed 1.69% to Rs 442.50 despite posting 107% surge in net profit to Rs 70.36 crore on 35.97% increase in total income to Rs 744.19 crore in Q4 March 2008 over Q4 March 2007. The company announced the results during trading hours today, 12 May 2008.

Indiabulls Real Estate slumped 3.04% to Rs 524 despite reports that the company is planning to invest Rs 1000 crore to expand its retail business in the next 2- years.

Tata Metaliks declined 3.88% to Rs 168.50 following reports the company is planning to invest Rs 1000 crore to build a 0.8 million tonnes plant for manufacturing long products in the state Karnataka.

Mysore Cements rose 2.60% to Rs 37.55 after the companys board gave its approval to amalgamation of Indorama Cement and Heidelberg Cement India with the company. The company announced this after market hours on Friday 9 May 2008.

Asian Paints slipped 1.57% to Rs 1200 despite posting 22.8% rise in net profit to Rs 84.84 crore on 18.84% increase in total income to Rs 879.71 crore in Q4 March 2008 over Q4 March 2007. The company announced the results after trading hours on Friday, 9 May 2008.

Novartis India declined 1.71% to Rs 302.05 on reporting 10% fall in net profit to Rs 21.53 crore on 5.4% growth in net sales to Rs 130.56 crore in Q4 March 2008 over Q4 March 2007. The company announced the results during after trading hours on Friday, 9 May 2008.

The spiraling inflation has been a major cause of concern for Indian equities market. The wholesale price index rose 7.61% in the 12 months to 26 April 2008, marginally higher than previous week's annual rise of 7.57%, government data showed on Friday, 9 May 2008. The rate was the highest since an annual reading of 7.68% on 13 November 2004. The WPI remained above the 7%-mark (significantly above RBI's revised target of 5.5% for the year) for the past four weeks.

Meanwhile, the Left parties may reportedly issue another warning soon to the ruling United Progressive Alliance (UPA) government following the failure of the government to stem burgeoning prices and its efforts to operationalise the Indo-US nuclear deal. The Left parties are slated to meet on 23 May 2008, six days ahead of their ninth round of deliberations with the UPA on the nuclear issue.

US light crude for June delivery rose 18 cents to $126.14 a barrel today, 12 May 2008, as violence in the Middle East heightened worries of supply disruptions in the world's largest crude producing region. It had struck a record high of $126.27 in late trade on Friday, 9 May 2008.

US markets slumped on Friday, 9 May 2008, as American International Group Inc (AIG), the world's largest insurer, reported huge losses while crude oil surged to a new high. The Dow Jones industrial average slipped 120.90 points at 12745.88 and the Nasdaq Composite declined 5.72 points at 2445.52. The S&P 500 index shed 9.40 points to 1,388.28.