Market Closing Session - 29th Aug

Intense buying throughout the day triggered by data showing a slower-than-expected GDP growth in Q1 June 2008 and softening of inflation, helped the market settle near days high. The BSE 30-share Sensex jumped 516.19 points. Strong global cues and healthy rollover of derivatives positions also aided the rally. The market breadth was strong. Interest rate sensitives were the flavor of the day. All the BSE sectoral indices posted gains.

India's gross domestic product (GDP) grew 7.9% in the June 2008 quarter from a year earlier, easing from the previous quarter's 8.8% rise as industrial activity slowed due to monetary tightening. The GDP growth in the first quarter of the current fiscal year was lower than market expectations of a rise of a little above 8%. The government released the GDP data at about 11:00 IST today, 29 August 2008.

Foreign institutional investors (FIIs) were net equity sellers worth Rs 364.61 crore while mutual funds purchased shares worth Rs 281.07 crore today, 29 August 2008, according to provisional data on BSE.

The BSE 30-share Sensex jumped 516.19 points or 3.67% at 14,564.53. The Sensex struck an intra-day high of 14,586.16 in late trade. At the days high, the Sensex gained 537.82 points. Sensex opened 230.68 points higher at 14,279.02, which was also its days low.

The S&P CNX Nifty advanced 146 points or 3.46% to 4360. Nifty September 2008 futures were at 4364, at a premium of 4 points as compared to spot closing of 4360.

The BSE Sensex is down 5722.46 points or 28.20% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6642.24 points or 31.32% away from its all-time high of 21,206.77 struck on 10 January 2008.

Derivative contracts for August 2008 series expired yesterday, 28 August 2008 with strong rollovers. As per reports, marketwide rollover of positions from August 2008 series to September 2008 series stood at 83% while that of Nifty was at 75%. In the previous series, marketwide rollover of positions stood at 79% as while that of Nifty was at 65%

The market breadth was strong on BSE with 1828 shares advancing as compared to 832 that declined. 96 remained unchanged.

The total turnover on BSE amounted to Rs 5408 crore as compared to Rs 4,063.05 crore yesterday, 28 August 2008. NSE's futures & options (F&O) segment turnover was Rs 43,170.27 crore, lower than Rs 66,164.24 crore on Thursday, 28 August 2008.

Grasim was the lone loser from the 30-member Sensex pack. The diversified firm was down marginally by 0.05% to Rs 1936.

Strong buying was witnessed in interest rate sensitive sectors viz. banking, real estate and auto, as the latest data showed inflation softened for the first time in 28 weeks.

Indias largest state-run bank by net profit State Bank of India surged 7.23% to Rs 1404.10 on 11.56 lakh shares. It was the top gainer from Sensex pack.

HDFC Bank (up 5.40% to Rs 1281), and ICICI Bank (up 5.88% to Rs 671), advanced. The Bankex vaulted 6.27% to 7,009.69 and was the top gainer among the sectoral indices on BSE

Mid-cap bank shares also joined the rally. Oriental Bank of Commerce (up 8.06% to Rs 165), Bank of India (up 5.88% to Rs 266.35), Bank of Baroda (up 3.44% to Rs 283), Axis Bank (up 7.91% to Rs 723.70), and Kotak Mahindra Bank (up 9.54% to Rs 609.90), advanced.

Annual wholesale price inflation rose 12.40% in 12 months to 16 August 2008, below the previous week's 12.63% but remained stuck at 13-year highs, data released by the government after trading hours on Thursday, 28 August 2008 showed. No conclusion can be drawn from one week's inflation number, Finance Minister P Chidambaram said.

Inflation has nearly tripled from 4.39% a year ago and now is riding around the highest levels since the current inflation series began being compiled 13 years ago.

Indias largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rebounded after declining for previous three days. The stock advanced 2.67% to Rs 2129 on 7.68 lakh shares. On 26 Tuesday, August 2008, RIL confirmed media reports that it is planning to transfer 80% of its participatory interest (PI) in the D6 oil and gas block in the Krishna Godavari (KG) basin to four unlisted subsidiaries.

Auto shares rose. Tata Motors (up 5.59% to Rs 441), Maruti Suzuki India (up 3.44% to Rs 651.85), Bajaj Auto (up 1.33% to Rs 588.45), Mahindra & Mahindra (M&M) (up 1.57% to Rs 576) and Hero Honda Motors (up 0.40% to Rs 825.05), rose. The BSE Auto index gained 2.30% to 4,001.23

DLF (up 4.13% to Rs 487.60), Ansal Infrastrcutures (up 3.41% to Rs 100), Sobha Developers (up 3.87% to Rs 266), Indiabulls Real Estate (up 11.97% to Rs 290) edged higher from the realty pack. The BSE Realty index rose 5.10% to 4,995.25

Tata Steel, the world's sixth-largest steel maker by capacity, gained 4.86% to Rs 599.60. The company said after trading hours yesterday, 28 August 2008, its consolidated net profit rose 60.4% to Rs 3900.90 crore in Q1 June 2008 over Q1 June 2007, boosted by its Anglo-Dutch unit Corus.

India's largest oil exploration firm Oil & Natural Gas Corporation rose 2.50% to Rs 1024.70. British oil and gas explorer Imperial Energy said on Tuesday, 26 August 2008, that its management has agreed to a takeover from ONGC worth 1.4 billion pounds ($ 2.6 billion).

IT pivotals climbed up on fresh buying. Infosys Technologies, the countrys second largest software services exporter advanced 2.92% to Rs 1749.50. The company said after trading hours on Monday, 25 August 2008, it has agreed to acquire UK based SAP consulting company Axon Group plc, for 407.1 million pounds or Rs 3310 crore. Axon reported profit after taxation of 20.2 million pounds (Rs 160 crore) on revenue of 204.5 million pounds or Rs 1660 crore in the year ended 31 December 2007.

Indias third largest software services exporter Wipro jumped 4.59% to Rs 433 on reports the company may buy a German competitor that advises companies running business software made by SAP AG.

Satyam Computer Services (up 3.33% to Rs 420) and TCS (up 2.44% to Rs 813) advanced. The BSE It index gained 2.94% to 3,966.75

Telecom stocks were in demand. India's top cellular services provider by market capitalisation Bharti Airtel advanced 4.50% to Rs 839.85. A massive block deal of 1.01 crore shares was struck on the counter at Rs 813.95 at 11:59 IST on BSE. It was the top traded counter on BSE with turnover of Rs 867.79 crore.

Reliance Capital (Rs 310 crore), ICICI Bank (Rs 171.10 crore), Reliance Industries (Rs 163.50 crore) and State Bank of India (Rs 161.30 crore), were the other turnover toppers on BSE.

Reliance Communications, the countrys second largest cellular services provider by market capitalisation jumped 2.61% to Rs 395.50.

Capital goods heavyweights rebounded after suffering steep losses yesterday, 28 August 2008. Bharat Heavy Electricals, the countrys largest power equipment maker by sales, surged 4.86% to Rs 1708 after the company said it has secured a contract worth Rs 1155 crore for supply of power generation equipment to a plant in Punjab. The company made the announcement during trading hours today, 29 August 2008.

Indias largest engineering & construction company by outstanding order book position Larsen & Toubro gained 3.53% to Rs 2589.90. The BSE Capital Goods index advanced 3.43% to 11,886.62

Cement shares rose despite recent foreign brokerage report which showed cement prices are set to decline 15-20% by fiscal 2009-10 due to increase in cement supplies. ACC (up 1.95% to Rs 563), Ambuja Cement (up 1.26% to Rs 80.30), and India Cement (up 2.91% to Rs 139.30), rose.

Ranbaxy Laboratories, the countrys biggest pharma company by sales, recovered from days low of Rs 490. It closed 0.88% higher at Rs 518.50. As per reports, the Foreign Investment Promotion Board (FIPB) on 27 August 2008 approved the acquisition of Ranbaxy by Japan's Daiichi Sankyo and the deal would now have to be cleared by the Finance Minister and the Cabinet Committee on Economic Affairs.

Reliance Infrastructure (up 5.31% to Rs 985), HDFC (up 3.75% to Rs 2332), and Jaiprakash Associates (up 5.38% to Rs 164.50), edged higher from the Sensex pack.

Reliance Natural Resources topped volumes chart clocking volumes of 1.41 crore shares followed by Bharti Airtel (1.07 crore shares), Chambal Fertilisers (81 lakh shares), IFCI (78.20 lakh shares) and Ispat Industries (75.60 lakh shares), in that order.

Among the side counters, Classic Diamond (up 20% to Rs 47.90), Malwa Cotton (up 19.90% to Rs 50.30), Shiva Cement (up 20% to Rs 12.17), Donear Industries (up 18.57% to Rs 44.90), and Atlanta (up 15.62% to Rs 196.15), surged.

Prudential Pharma (down 12.14% to Rs 38), Hitech Plastics (down 8.30% to Rs 65.20), and Savera Hotel (down 7.22% to Rs 56.50), slumped.

Motilal Oswal Financial Services galloped 2.84% to Rs 114.15 after the company said it has received in principle approval from Securities Exchange Board of India to set up mutual fund business in the country. The company made this announcement during trading hours today, 29 August 2008.

Jai Corp jumped 5% at Rs 324.30 on reports the firm plans to get into distribution and supply of city gas and liquified petroleum gas to its special economic zones (SEZ) in Mumbai and Navi Mumbai.

National Aluminium Company spurted 5.26% to Rs 388.15 on reports the company begun importing coal to overcome shortages, which forced the company to cut alumina output in July 2008.

Bharat Petroleum Corporation jumped 4.41% to Rs 298.30 after the company said its step down overseas unit has acquired 10% stake in Mozambiques Rovuma Offshore Area 1 block from US firm Anadarko Petroleum Corporation. The company made this announcement during trading hours on Thursday, 28 August 2008, when the stock had declined 4.38% to Rs 285.70 in a weak market.

Unitech gained 3.07% to Rs 157.85 after its telecom unit received 4.4 megahertz of spectrum in the GSM band in Madhya Pradesh. The company made the announcemnt after market hours yesterday, 28 August 2008. With this, the company has been allotted initial spectrum in six service areas out of the total 22 service areas, the statement added

The National Stock Exchange (NSE) today, 29 August 2008, kickstarted trading in the exchange-traded rupee futures for the first time in India. Good volumes were reported on day one with the front-month contracts seeing brisk activity. The contract size is $1,000 each.

Crude for October 2008 delivery rose $1.41 or to $117 a barrel today, 29 August 2008 as energy companies prepared for tropical storm Gustav. US crude had lost $2.56 at $115.59 barrel, yesterday, 28 August 2008 after the US government and the International Energy Agency pledged to release emergency stockpiles if Tropical Storm Gustav disrupted US oil production.

European markets, which opened after Indian markets, were trading higher. Key benchmark indices in UK, Germany and France were up by between 0.26% and 0.51%.

Asian markets, which opened before Indian markets were trading higher today, 29 August 2008. Key benchmark indices in China, Japan, Hong Kong, Taiwan, Singapore and South Korea were up by between 0.01% and 2.39%.

US markets rallied yesterday, 28 August 2008 on stronger than expected GDP growth and a drop in oil prices. Second quarter GDP came in at a better than expected 3.3%. Weekly jobless claims also dipped. The Dow Jones industrial average surged 212.67 points, or 1.85%, to 11,715.18. The S&P 500 index rose 19.02 points, or 1.48%, to 1,300.68, and the Nasdaq Composite index advanced 29.18 points, or 1.22%, to 2,411.64.