Market Closing Session - 22nd Aug

Key benchmark indices ended the week on a positive note posting decent gains today, 22 August 2008, led by rise in banking and metal stocks. The market recovered some of yesterdays (21 August 2008) steep losses. Hindalco Industries and Sterlite Industries rose more than 4% each, as metal prices rose on the London Metal Exchange (LME).

European markets were in green. Frances CAC 40, Germanys DAX and UKs FTSE 100 were up between 0.51% to 0.99%.

India's wholesale prices index rose 12.63% in the year through 9 August 2008, up from the previous week's 12.44% rise, data released by the government after trading hours on Thursday, 21 August 2008, showed.

Oil price surged. Light, sweet crude for September 2008 delivery surged $5.62 to $121.18 a barrel yesterday, 21 August 2008 on the New York Mercantile Exchange (NYMEX) on weaker dollar and worries about tightening output from OPEC countries.

Meanwhile, as per reports, nuclear supplier nations at a meeting in Vienna on Thursday, 21 August 2008, proposed conditions for lifting a global ban on fuel and technology exports to India, a step required to implement a US-India nuclear cooperation deal. A green light from the 45-nation Nuclear Suppliers Group is needed for the deal to proceed to the US Congress for final ratification.

The BSE 30-share Sensex jumped 157.76 points or 1.11% to 14,401.49. The market staged a comeback from early lows as heavyweights rebounded. A rally in crude oil prices weighed on the sentiment in opening trade.

Sensex opened 90.34 points lower at 14,153.39 and slipped further to a low of 14,136.86 in early trade. At the days low, the Sensex lost 106.87 points. At the days high of 14,428.52 points hit in late trade, the Sensex gained 184.79 points.

The S&P CNX Nifty was up 43.6 points or 1.02% to 4,327.45.

BSE clocked a turnover of Rs 4,041 crore today as compared to a turnover of Rs 4,134.96 crore on 21 August 2008.

Nifty August 2008 futures were at 4329, a marginal 1.55-point premium over spot closing of 4,327.45. NSE's futures & options (F&O) segment turnover fell to Rs 44332.45 crore from Rs 52004.66 crore on Thursday, 21 August 2008.

The market breadth was negative on BSE with 1414 shares declining as compared to 1,209 that advanced. 102 remained unchanged.

Among the 30-member Sensex pack, 24 gained while the rest of them slipped.

As per the provisional figures on BSE, the foreign institutional investors (FII)'s sold shares worth Rs 239.24 crore while domestic funds bought shares worth Rs 450.39 crore today, 22 August 2008.

The BSE Mid-Cap index was up 0.34% to 5,726.85 and the BSE Small-Cap index was down 0.16% at 6,925.85.

BSE PSU index (down 0.1% to 6,710.47), BSE Realty index was flat at 4,944.73, BSE Capital Goods index (up 0.15% to 11,925.36), BSE IT index (up 0.39% to 3,837.19), BSE HealthCare index (up 0.62% to 4,297.64), BSE Teck index ( up 0.64% to 2,997.71), BSE Power index (up 0.96% to 2,597.96), BSE Auto index (up 1.04% to 3,839.52), BSE Oil & Gas index (up 1.05% to 9,941.66), BSE FMCG index (up 1.09% to 2,163.54) underperformed Sensex.

BSE Metal index (up 1.62% to 12,363.93), BSE Bankex (up 1.18% to 6,655.76), BSE Consumer Durables index (up 1.13% to 3,798.75) outperformed Sensex.

Indias largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 1.51% at Rs 2,245.65, off days low of Rs 2191. The Bombay High Court on Thursday, 21 August 2008, suggested that the warring Ambani brothers go back to their mother Kokilaben and have the dispute settled.

The division bench of Justices JN Patel and KK Tated are hearing the dispute between the Anil-Ambani controlled Reliance Natural Resources (RNRL) and Mukesh Ambanis Reliance Industries (RIL) over supply of natural gas from the later's eastern offshore Krishna-Godavari gas fields. Ram Jethmalani, counsel for RNRL, said Anil Ambani was ready to meet his elder brother any time, any place. The case hearing has been adjourned to 1 September 2008.

BSE Metal index rose 1.62% to 12,363.93 and was the top gainer from the sectoral indices on BSE. Metal shares rose tracking rally in global metal prices. Steel Authority of India (up 4.4% to Rs 150.70), Sterlite Industries (up 4.34% to Rs 626.75), Hindalco Industries (up 4.26% to Rs 134.55), Hindustan Zinc (up 1.71% to Rs 576.40), National Aluminum Company (up 1.15% to Rs 387.90), and Tata Steel (up 0.87% to Rs 594.45) edged higher.

Hindustan Unilever (up 3.73% to Rs 244.85), HDFC (up 3.22% to Rs 2280.65), Bharat Heavy Electricals (up 2.76% to Rs 1,715.95), Reliance Infrastructure (up 2.53% to Rs 978.85), Tata Power Company (up 2.65% to Rs 1,050.75), Infosys (up 1.84% to Rs 1,695.05) edged higher from the Sensex pack.

Banking shares logged decent gains as inflation came in line with market expectation. BSE Bankex rose 1.18% and was the second major gainer among the sectoral indices on BSE. BSE Bankex had fallen 5.16% ahead of the inflation data yesterday, 21 August 2008. HDFC Bank (up 2.48% to Rs 1194.70), ICICI Bank (up 0.22% to Rs 644.50), and State Bank of India Bank (up 0.3% to Rs 1,346.25), gained from the frontline banking pack.

Satyam Computer Services (down 3.18% to Rs 386.40), NTPC (down 2.54% to Rs 169.10), Grasim Industries (down 1.85% to Rs 1,929.10), Larsen & Toubro (down 0.88% to Rs 2,604.90), Wipro (down 0.93% to Rs 417.55) edged lower from the Sensex pack.

Indias second largest telecom services provider by sales Reliance Communications gained 1.86% to Rs 405.75 on reports the contentious issue of interconnection with GSM operators has been resolved. Reliance Communications (RCom) is launching its global system for mobile (GSM) services shortly. The issue of interconnection through which subscribers of one operator can talk to subscribers of another operator was reportedly resolved in a meeting between the Telecom Regulatory Authority of India (TRAI) and operators on Thursday, 21 August 2008.

Reliance Natural Resources clocked the highest volume of 1.72 crore shares on BSE. Cals Refineries (95.98 lakh shares), Triveni Engineering & Industries (89.78 lakh shares), Ispat Industries (76.79 lakh shares) and Chambal Fertilisers and Chemicals (72.57 lakh shares) were other volume toppers in that order.

Reliance Capital clocked the highest turnover of Rs 232.64 crore on BSE. Vishal Information Technologies (Rs 205.87 crore), Reliance Industries (Rs 171.01 crore), Reliance Natural Resources (Rs 163.7 crore) and ICICI Bank (Rs 141.88 crore) were the other turnover toppers in that order.

Most of the Asian markets were trading lower today, 22 August 2008. Key benchmark indices in China, Japan, Taiwan and South Korea were down by between 0.1% and 1.09%. Singapores Straits Times rose 0.03%.

US stocks finished mixed on Thursday, 21 August 2008, after investors largely shrugged off a jump in oil prices and focused instead on a bullish call on Lehman Brothers Holdings that eased worries about the financial sector. The Dow Jones industrial average gained 12.78 points, or 0.11%, to 11,430.21. The S&P 500 index advanced 3.18 points, or 0.25%, to 1,277.72, and the Nasdaq Composite index slipped 8.70 points, or 0.36%, to 2,380.38.

Back home, the BSE 30-share Sensex lost 434.50 points or 2.96% to 14,243.73 and the S&P CNX Nifty fell 131.90 points or 2.99% to 4,283.85, yesterday 21 August 2008

Sensex has lost 1,102.43 points or 7.65% from a recent high of 15503.92 hit on 11 August 2008. The barometer index is down 5,885.50 points or 29.01% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,805.28 points or 32.09% away from its all-time high of 21,206.77 struck on 10 January 2008.