+++MARKET NEWS+++

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Praveen Gurwani
Markets should witness further gains mirroring global cues


The market shot up further on Thursday, with the Sensex surging 305.82 points (2.32%) to 13,487.16, the Nifty 77.85 points (2.07%) to 3,843.05 and the CNX Midcap 124.60 points (2.58%) to 4,959.80. The biggest positive contributions to the Sensex came from ICICI Bank (54.3 points), Infosys (32.9), Reliance (28.0), Satyam Computers (19.4), Reliance Comm (15.9), ITC (15.2), Hind Lever (13.8), Bharti Airtel (12.6), Larsen & Toubro (12.4), HDFC (11.3), ONGC (10.9), NTPC (10.8), TCS (8.4), Cipla (7.6), Guj Ambuja Cement (7.5), Wipro (6.3), Reliance Energy (6.0) and Grasim (5.3). The largest negative contribution was just 1.9 points from State Bank.

European markets staged a moderately strong rally last night, which was followed by a stronger one from US stocks. Asian markets are also strong this morning, and another global rally is taking place now. This should lead to further gains here today.

The market's breadth was healthy, with advances outnumbering declines 4.42 times on the BSE, and 8.00 times on the NSE. The volume in advancing issues was 87.7% (81.0%) on the BSE, and 87.2% (84.9%) on the NSE, while that in declining ones was 10.6% (18.4%) on the BSE, and 11.9% (14.6%) on the NSE.

The number of Hotline stocks at 200-day highs went up from zero to four, while the number at 200-day lows remained zero. The number at 5-day highs went up from 8 to 51, while the number of at 5-day lows dropped from 44 to 7. The 240 stocks averaged a gain of 3.06%.

The main indices opened higher and essentially rallied from start to finish, with only a couple of small corrections during the session. They hit their session low within five minutes of the open and closed near their high. The CNX Midcap followed a similar path.

The Sensex fell below 13,577 on Monday back to signal an intermediate downtrend for the market. The Nifty and the CNX Midcap breached their corresponding triggers of 3,912 and 5,011 as well.

The Sensex will now have to go above 14,035 to return into an intermediate uptrend. The corresponding figures for the Nifty and the CNX Midcap are 4,047 and 5,183, respectively. The Dec 6 Sensex high of 14,035 has been established as the intermediate top.

Quite a few global indices have completed two-week intermediate downtrends recently, but are now back in uptrends.

Our market's long-term (major) trend is up, with the Sensex, Nifty and the CNX Midcap all having rising intermediate tops and bottoms. In other words, this is a bull market.

There was an unusually short bear market from the Sensex's May 11 top of 12,671 to its June 14 bottom at 8,799. Though it lasted just weeks, the 31% drop in the Sensex was in keeping with past bear markets.

A Sensex closing below the previous intermediate bottom of 9,875 would end this bull market. Almost 90% of the Hotline stocks are in major uptrends now. There was no change in the major trend of any of the Hotline stocks yesterday.

Most global markets are also in long-term (i.e. major) uptrends.

The FIIs sold USD 21.3 million of stocks on Wednesday, and the MFs dumped USD 51.0 million worth. The FIIs are currently averaging daily purchases of USD 12.2 million over the last five sessions, while the MFs are selling at an average rate of USD 56.1 million.

Practically all the global indices are back in intermediate uptrends, with some having completed two-week downtrends recently.

Almost all the global indices are in major uptrends.

The Dow rose 99.26 points (0.81%) to 12,416.76, and the NASDAQ composite went up 21.44 points (0.88%) to 2,453.85.

Infosys was up 2.17% at USD 55.20, Satyam Computers rose 3.61% to USD 23.79, Wipro gained 3.24% at USD 15.60, Tata Motors gained 3.27% at USD 19.28, ICICI Bank went up 4.36% to USD 40.01, HDFC Bank rose 4.07% to USD 74.73, Dr Reddy's Labs gained 3.60% at USD 17.85, MTNL rose 1.36% to USD 5.96, VSNL went up 4.94% to USD 18.07, Rediff.com gained 1.42% at USD 19.34 and Satyam Infoway went up 1.87% to USD 9.80.
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Markets May Witness Flat Trading - Indian Commentary

Markets May Witness Flat Trading - Indian Commentary


Friday, Global cues point to a firm opening for the Indian bourses. Dow closed at a record high on Thursday and Asian and emerging markets are trading firmly in the green. Meanwhile, the market is awaiting advance tax figures which would give an indication of the corporate earnings and the result of policy meeting scheduled for the 18th and 19th by the Reserve Bank of India. The central bank is widely expected to refrain from raising the interest rates. Also profit booking is likely to be witnessed at each rise, especially after a 1,000 point fall in the BSE Sensex. Keeping in view these aspects the market is likely trade flat on the last session of the week.

On Thursday, the markets continued to recover on heavy buying of frontline stocks. The 30-share BSE Sensex surged 305.82 or 2.32% to 13,487.16. The 50-share NSE's Nifty gained 87.30 points or 2.32% to end at 3,852.50.

The turnover in the BSE totaled Rs. 4,355 crores, while that in the NSE was Rs. 8,087 crores. Foreign Institutional Investors or FIIs turned net sellers for Rs. 96.90 crores or US$21.30 million in equity on Wednesday. In the F&O segment, FII buying totaled Rs. 3,305.35 crores and selling came in at Rs. 3280.14 crores.

Benefiting from some positive earnings news, the U.S. stock markets saw significant strength during trading on Thursday. The major averages all moved firmly into positive territory. The Dow closed up 99.26 at a record closing high of 12,416.76, while Nasdaq ended up 21.44 at 2,453.85 and the S&P 500 settled higher by 12.28 at 1,425.49.

Indian ADRs gained in the regular session on Thursday in line with the surge in the U.S. stocks. In the tech sector, Infosys gained 2.17%, while Wipro and Satyam surged 3.24% and 3.61% respectively. Tata Motors moved up 3.27%. Among banking issues, HDFC Bank and ICICI Bank both soared more than 4.00%. In the telecom sector, VSNL surged 4.94% and MTNL advanced 1.34%.

On the New York Mercantile Exchange, crude futures rose to around US$62.53 per barrel.

In the Asian-Pacific region, major markets were trading firmly in the green territory.
 
Markets trade firm

Markets trade firm

Friday, December 15, 2006 (Mumbai):

The markets continue to trade firm in noon deals with the benchmark index hovering at 13,585 levels.

In the broader markets, the Nifty moved up 0.9 per cent or 37 points. It is trading at 3879 levels.

"I am bullish on the prospects of the market. I feel that the correction is over and the Sensex should trade between 13,000 – 14,000 levels for the next few weeks," said Sandeep Wagle, Chief Technical Analyst, Angel Broking.

Leading the charge at the Sensex is Tata Steel. The counter moved up 3.6 per cent or Rs 15. Hero Honda, Reliance Communication, ACC, Hindalco, Grasim Industries, Reliance Energy and ONGC are also among the top gainers.

However, ITC Limited and NTPC slipped 1.1 per cent respectively. Reliance Industries, Bajaj Auto, HLL and Wipro are also trading in the red.

Metals shine

The BSE metals index firmed up 2.6 per cent or 221 points in noon deals on Friday. It is the biggest gainer among sectoral indices.

SAIL, Jindal Stainless, Hindalco, JSW Steel, Jindal Steel & Power, Hindustan Zinc and Sterlite Industries logged smart gains besides Tata Steel.

Banking stocks continue their journey north. Canara Bank at Rs 274 levels moved up 3.4 per cent or Rs 9.

Union Bank of India (up 3.1 per cent), Bank of India (up 2.4 per cent), Punjab National Bank (up 2.3 per cent), Indian Overseas Bank (up 2.2 per cent), Kotak Mahindra Bank (up 1.8 per cent), Vijaya Bank (up 1.5 per cent) are trading firm.

On firm foundation

Strength is also visible in cement counters. Prism Cement, Saurashtra Cement, India Cements, Mangalam Cement, Grasim Industries, ACC, Dalmia Cement and JK Cements gained ground besides Gujarat Ambuja Cements.

KM Sugar (up 4.6 per cent), Sakthi Sugar (up 3.6 per cent), Dwarikesh Sugar (up 2.6 per cent), Ponni Sugar (up 2.4 per cent), Bajaj Hindusthan (up 1.9 per cent), Oudh Sugar (up 1.9 per cent) and Bannari Amman Sugars (up 1.6 per cent) are trading firm in the sugar pack.
:tea:
 
Markets end strong: Sensex closes above 13,600

Markets end strong: Sensex closes above 13,600


The markets have continued the rally for the third day running and ended the week near the highest points of the day on the back of heavy buying seen in metal stocks.

The Sensex closed At 15.55 pm IST, the Sensex is up 127.36 points or 0.94% at 13614.52, and the Nifty up 45.60 points or 1.19% at 3888.65.

About 1514 shares have advanced, 979 shares declined, and 76 shares are unchanged.

The Sensex closed At 15.55 pm IST, the Sensex is up 127.36 points or 0.94% at 13614.52, and the Nifty up 45.60 points or 1.19% at 3888.65.

About 1514 shares have advanced, 979 shares declined, and 76 shares are unchanged.

The BSE Small Cap Index closed at 6,667.91 up 73.39 points or 1.1%.

The BSE Midcap Index ended at 5,661.37 up 44.40 points or 0.8%.

The BSE Bankex was up 1.4% at 6,994.78. Canara Bank, Karnataka Bank, Bank of Baroda, Bank of India, SBI, Federal Bank moved upwards.

The BSE IT Index gained 1.05% at 5,181.60. Mphasis BFL, Satyam, Patni Computer, Infosys, TCS advanced.

The BSE Metal Index was up 4% to close at 8,802.53. Jindal Steel, JSW Steel, Tata Steel, Sterlite Ind, SAIL, Hindalco ended higher.

The BSE Capital Goods Index was up 0.7% at 9,224.20. Crompton Greaves, SKF India, Carborundum, BHEL, BEML closed higher.

The BSE Health Care Index closed was up 0.7% at 3,701.91. Glenmark, Lupin, Aurobindo Pharm, Sun Pharma, Cadila Health closed higher.

The BSE Auto Index closed at 5,262.42 up 0.8%. Hind Motors, Cummins, Bharat Forge, M&M, Hero Honda, Sundaram-Clayto moved higher.

The BSE Oil and Gas Index lost 0.13% to close at 5,973.58.

The BSE FMCG Index ended flat at 1,952.36. United Spirits, Shaw Wallace, Colgate, HLL, Tata Tea ended up.

The NSE cash turnover was at Rs 8714.38 crore and the NSE F&O turnover was at Rs 28953.84 crore. The BSE cash turnover was Rs 4151.94 crore. Total market wide turnover was at Rs 41820.16 crore.
 
Markets End In Green On Global Optimism;

Markets End In Green On Global Optimism; Metals, Banks Surge - Indian Commentary


(RTTNews) - Friday, Indian markets surged forward, keeping their positive momentum for the third day in the running. Though the indices are still short of recovering fully from their recent losses, the market undertone stayed firmly bullish. Media reports that Inflation declined to 5.16% for the week ended December 2 from 5.30% the previous week, also stoked the feel-good factor. Metal stocks were the star performers of the day, forcing their way out of the doldrums they caught in the past few weeks. The Sensex gap-opened up 59 points at 13,546 and rallied to the day's high of 13,670. The Sensex finally settled with a smart gain of 127 points or 0.94% at 13,615. In all, the index ended the week with a net loss of 184 points, bucking the rising trend for over 2 months. At the other prime exchange, the Nifty moved up 1.2% or 45 points to end the day at 3888 levels.

Most sub-indices gained in the day, spearheaded by the metals index, which outshone others with a thrust of nearly 4%. This was ably followed by the Consumer Durables index, which shot up 2%. Others such as Bank and Tech indices advanced 1.3% and 12% respectively. Both mid caps and small cap indices joined the party striding 0.8% and 1.1% respectively. On the other hand FMCG and oil & gas indices were subdued and ended in the negative. The market breadth remained strong with 1546 stocks ending in the positive and 993 stocks closing in the negative territory. In the Sensex space, Tata Steel surged 5.5%. Hindalco added 3.7%. Reliance Communications flared up 4.3%. SBI advanced 3.5%. Grasim surged 3%. ACC and Hero Honda added 2.5% each. Satyam spurted 2%. Infosys and Reliance Energy gained around 1.5% each. BHEL and ONGC moved up 1.4%. HLL, Ranbaxy, HDFC, Gujarat Ambuja and HDFC Bank were up over 1% each.

However, NTPC shed 1.7%, and ITC slipped 1.4%. Wipro was down 1%.

Among metal stocks, Jindal Steel and Power, Sterlite Industries, SAIL, NALCO, Jindal Stainless, and Hindustan Zinc logged smart gains besides Tata Steel.

In the consumer durables pack, Su-Raj Diamonds, Mirc Electronics, Titan Industries and Blue Star firmed up by the closed of trading session.

In the banking space Canara Bank moved up 6%, followed by Bank of Baroda, Bank of India, Kotak Mahindra Bank, Vijaya Bank, Union Bank and Andhra Bank.

Cement counters. Witnessed strong buying. Among them, India Cements, Saurashtra Cement, Ultratech Cemco, Mangalam Cement, Prism Cement and Madras Cements closed in positive turf.
 
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Mkt range-bound, Sensex closes 127 pts up

Mkt range-bound, Sensex closes 127 pts up
FRIDAY, DECEMBER 15, 2006 04:30:44 PM

Market remained range-bound in the final trading hour as alternate bouts of buying and selling restricted the movement of the indices within a narrow range. While buying interest was seen in stocks across sectors, select stocks in the auto, pharma and energy sectors faced the brunt of profit booking. As regards the global markets, the Asian indices closed firm.

The BSE Sensex was trading at 13,614 up 127 points and the Nifty is trading at 3,889 up 46 points.

The markets on Friday commenced the session in continuance with the strong trend seen yesterday. However, while the indices remained largely in the positive during the entire session, the movement was lacklustre. This is because every buying attempt by investors was followed by profit booking at higher levels, a trend which was witnessed in the final trading hour as well. Tata Steel up 6 per cent, SBI and Reliance Communications both up 4 per cent emerged as the top gainers on the Sensex on Friday.

Pharma stocks closed a mixed bag. While Cipla and Dr. Reddy's closed marginally in the red, Ranbaxy up 1 per cent found favour. As per a leading business daily, Ranbaxy has received the US FDA approval to manufacture and market 'Cefprozil' tablets of 250 mg and 500 mg strengths and intends to launch the product in early 2007. The market for the drug has been pegged at US$ 76.6 m. The world's largest generic player, Teva Pharmaceutical and Indian players Lupin and Orchid Chemicals have already received marketing approval for 'Cefprozil' tablets. This formulation will be produced at the company's CGMP-compliant, cephalosporin-dedicated facility located in Dewas, India. This approval will enhance Ranbaxy's anti-infective portfolio and is a positive given the increased competition in the US generics market.

Software stocks closed mixed today. While Satyam up 3 per cent and TCS up marginally) found favour, Wipro (down 1 per cent closed in the negative. As per a leading business daily, Tata Consultancy Services (TCS) has bagged the contract to implement end-to-end solutions for national carrier Shipping Corporation of India. TCS will implement software solutions which will enable SCI to connect ships plying anywhere to headquarters. The contract is a part of the earlier initiative of Shipping Corporation of India, to have in place an automisation programme, to enable it to compete with private and global shipping companies. The 22 months contract will involve four months of consultation and 18 months of execution. Officials of both the companies have not divulged the size of the contract.

As per a leading business daily, Tata Motors and Fiat are envisaging a joint venture with an investment of over Rs 40 bn to make cars and engines and possibly expand it to produce trucks as well. The annual capacity will be more than 100,000 cars and 200,000 engines and transmissions and production will start from the beginning of 2008. The cars will be distributed by Tata Motors through the Tata-Fiat dealer network, which is also set to expand to 100 outlets from the current 42. Fiat had, earlier this fiscal, announced that it would manufacture Tata Motors' new 1-tonne pick-up truck at its plant in Argentina for Latin American and overseas markets from 2HFY08. Tata Motors (Telco) is India's largest commercial vehicle (M/HCVs and LCVs) manufacturer, with a market share of 62 per cent in FY06 (59 per cent in FY04) and second largest producer of passenger vehicles. The stock up 1 per cent, along with peers Hero Honda up 2 per cent and Maruti up marginally, closed in the positive.
:tea:
 
Investors lift Tata Steel stock 5% on talk of Corus pullout

Investors lift Tata Steel stock 5% on talk of Corus pullout


MUMBAI: The Tata Steel stock on Friday recorded its highest jump in five months amid market rumours that the Indian steel major may be backing out of the race to acquire Corus. Its shares closed at Rs 459.2 at the Bombay Stock Exchange on Friday, up 5% from the previous close.

Four days back, the stock had plummeted by almost 10% after the company announced its revised bid of 500 pence-per-share for the Anglo-Dutch steelmaker. Within hours of the announcement, its Brazilian rival Companhia Siderurgica Nacional (CSN) had upped the bid by 15 pence, valuing Corus at a whopping $9.6 billion.

“The market has been wary of Tata Steel’s bid on its balance sheet,” said a broker. “TCS (Tata Consultancy Services) is the only cash cow for the (Tata) group and if this acquisition goes through, one doesn’t know if the group or the company will go for any other acquisition,” he added. The close on Friday was the highest since July 5, when the scrip had gone up by 5%.

Analysts also questioned the Indian steel major’s ability to supply Corus with raw material, especially given its stance on the issue of iron ore exports. “Moreover, unless its additional capacities come up, which can take about four to five years, Tata Steel won’t be able to supply Corus with slabs,” said an industry analyst. Curiously till 8:30 pm Indian time, Corus shares were down by 1% at 531 pence on the London Stock Exchange, the first fall in a week. It could not be ascertained if this was influenced by the rumours in Indian markets that saw a rise in Tata Steel shares.

A highly-placed official from the steel industry was critical of Tata Steel’s move on Monday morning when it increased its first bid of 455 pence-per-share by 10%. “The company might have run itself out by increasing the bid so high at one go. It will be unfair on the company to say that the acquisition is now unviable, but will depend on its cost and benefit analysis on Corus,” he said. Since it first announced its intent to acquire Corus in October, Tata Steel’s scrip has fallen by 18%. It might be some consolation for the Indian company that shares of its rival CSN also have gone down, though by only 4%.

Meanwhile, CSN has officially withdrawn its attempt to acquire US-based Wheeling-Pittsburgh. Though Wheeling-Pitt shareholders voted in a board of directors favouring a tie-up with Chicago-based Esmark, CSN had refused to concede defeat after the vote.
 
Sensex sheds 185 points this week

Weekly Wrap-up: Sensex sheds 185 points this week

Fears of inflation and interest rate trigger, poor IIP numbers, margin calls, compulsory square-offs had an inter-play on the bourses this week. The index lost 184.91 points amid volatile sessions spread over the week, with the bears shaving off 800 points, straight in first two sessions.

The markets opened on a weak note at 13,783, and continued to sink deeper thereafter. The markets took a hit after the RBI announced a CRR hike on Friday last week, after which banking stocks tumbled. The profit-booking dragged the indices to as low as 13,261.73 at one point of time. Banking, auto and telecom stocks took a hammering on Monday. The BSE Sensex closed lower 400.06 points at 13,399.43.

Reversing the losses on Monday, the index opened positive at 13,413.61. Volatility was the order of the day and market tumbled to 12,801.65 in the mid-noon sessions. Intense selling pressure in cement, telecom and auto dragged the index by 404.41 points to settle at 12,995.05. The fall was accentuated by today`s IIP numbers released by the government. Margin calls, compulsory square-off and stop-losses have all played a role in the decline. Persistent weakenss in the market on margin calls coupled with depressing IIP numbers led to the meltdown.

Wednesday, although was a volatile day, saw seemingly bullish mood across the board. Banking shares which took a hit in the earlier two sessions, managed to trod ahead along with select stocks from telecom, cement, auto. Buying at lower levels coupled with short-covering lifted the index by 186.32 points, to place it at 13,181.34.

Thursday, stocks across the board wore a new look on strong buying by funds. The index touched a high of 13,524.77, before finally settling at 13,487.16, up 305.82 points. The rally continued for the third staight day on Friday with the index surging to a high of 13,669.65, before finishing at 13614.52, higher by 127.36 points. The advances was led by steel, telecom, banking, pharma and cement.

On the corporate front

Tata Steel plans to invest Rs 4,500 million in its Thai subsidiary, Millennium Steel. The investment is for the purpose of setting up an iron ore smelting plant, which will make the company`s production line in the country fully integrated. Tata Steel bought a 40% majority stake in Millennium Steel for nearly Rs 6 billion last year. Construction of the smelting plant is expected to begin in early 2007. The capacity of plant is likely to be around 5 lakh tonne per annum, and will be ready for commission in about 15 months. The investment is likely to be wholly financed by loans, raising the company`s debt-equity ratio to 0.9:1 from the present 0.7:1. Meanwhile, the company has raised its bid for Corus to GBP 4.7 billion (USD 9.2 billion), to avoid a possible counter offer from Brazil`s Companhia Siderurgica Nacional (CSN). Tata`s new offer now stands at 500 pence per share in cash, as against its previous offer of 455 pence per share. The stock closed lower by 4.80% in the week.

Tata Motors and Fiat Auto will jointly infuse Rs 40 billion in a 50-50 joint venture to make cars and engines at Ranjangaon near Pune. The new manufacturing facility, to be created at the Fiat`s existing plant, will have annual capacity to produce 1 lakh cars and 1 lakh engines and gearboxes. Both partners would invest equal amounts in the new venture over a period of three years. The new plant will start making cars and engines by 2008. The company also said that it was looking at options to launch commercial vehicles and passenger car range in China, preceded by a manufacturing plant, to enjoy cost benefits. The shares of the company dipped 1.04% during the week.

Gujarat Ambuja Cements announced its Rs 15.19 capex for enhancing its cement capacity by 3 million tonnes pa by setting up a new cement plant in Himachal Pradesh alongwith two split grinding stations. The entire cement project along with grinding stations are likely to be commissioned by Mar. 2009. The above decision was taken by the board at the meeting held Dec. 14, 2006. The stock lost 0.67% in the week.

ACC got the board`s approval on Dec.13, for an investment of about Rs 14.80 billion for augmenting the capacity at its new Wadi plant by about 3 million tonnes per annum of cement. The shares of the company declined 4.21% this week.

:tea:
 
Sensex declines during the week after extreme volatility

Sensex declines during the week after extreme volatility

This week was one of the most volatile ever for the indices. The Sensex crashed 800 points in the first two sessions, before recovering nearly three-fourths of their losses in the remaining three sessions of the week. The decline during the last day of the previous week had set the mood, but the extent of the fall was nerve wracking for most investors and traders.

RBI played spoilsport on Monday with its decision to hike the CRR. Banking stocks, which have been the best performers in recent months, tumbled and ended with heavy losses. Tata Steel crashed on fears of a bidding war, and its impact on the balance sheet, after the company announced a higher bid for Corus.

The pain continued on Tuesday on a completely unexpected deceleration in industrial growth for the month of October. This led to fears of lower economic growth for the rest of the year and affected capital goods and cement stocks substantially. Banking stocks continued to decline and telecom stocks were beaten down.

Wednesday saw a modest recovery, led by Reliance Communications which ended more than 7 per cent higher. Select capital goods and cement stocks also recovered and supported the indices.

Sensex surged 300 points on Thursday, helped by substantial gains for technology stocks and ably supported by ICICI Bank, ONGC and Reliance Industries. Select cement, FMCG and pharma stocks supported the up move.

Gains across global markets helped the indices to sustain the up trend on Friday. The Sensex settled above 13600 as metal stocks made a strong come back. Tata Steel surged more than 5 per cent, helped by rumours that the company may pull out of the bidding war for Corus.

The Sensex lost 184 points or 1.33 per cent during the week and the Nifty gave up 73 points or 1.84 per cent over the week. Subdued performance by ONGC led to the underperformance by the Nifty.

Mid-caps and small-caps followed the trend in frontline stocks and came under substantial selling pressure earlier in the week. They also bounced back strongly during the last 3 sessions and the buying momentum was strong towards the end of the week.

The CNX Mid-Cap 100 index closed the week with losses of 89 points or 1.75 per cent for the week.

Domestic economic and regulatory action

The sharp decline in industrial growth to 6.2 per cent for the month of October took most by surprise and led to fears that the economy may see some slowdown for the rest of the financial year. The deceleration was mostly on account of a completely unexpected slowdown in manufacturing output growth even as electricity generation increased.
Within manufacturing, output of consumer non-durables showed a decline in October while growth in durables output slumped to only 2.4 per cent. The last quarter of the calendar year is normally a period of strong demand for consumer goods, except when monsoons fail completely, and this deceleration has raised fears that consumer demand may be slowing down. If that is the case, the outlook for the economy could change as consumption growth has been one of the major factors driving growth.

However, it is too early to pass that judgement only on the basis of one month's data. It is more likely that this would be only an aberration and output growth in consumer goods would have bounced back in November. Output growth of capital goods in October, though lower at just over 8 per cent as compared to 24 per cent a year ago, maintained the up trend and supports this contention.

Confederation of Indian Industry (CII) has no fears of any slowdown in economic momentum. It has raised its GDP growth forecast for the current year to 8.6 per cent from 8 per cent earlier. Strong growth achieved during the first half is enough to push up the annual growth rate, though overall growth in the second half is expected to be only around 8.2 per cent.


Credit Suisse says Indian economic growth for 2007 could hit double digits and be higher than Chinese growth for the first time. GDP growth would accelerate to 10 per cent, from 8.5 per cent forecast for 2006, as compared to 9.9 per cent growth forecast for China. Credit Suisse doesn't stop there and has forecast a phenomenal 10.5 per cent GDP growth for India for the year 2008. Some of the foreign investors who remain confident about India must have seen these forecasts.


Wholesale price inflation for the week ended 02 December declined to 5.16 per cent from 5.3 per cent reported for the pervious week. The decline was mostly on account of lower prices of primary food articles and select fuels. Prices of manufactured goods continued to rise during the week. Inflation was at 4.44 per cent during the same week of previous year.
US markets, global economy and oil

US markets gained during the week, supported by some helpful economic data. After the sideways movement in earlier part of the week, indices rallied on Thursday as employment data was stronger than expected. That helped ease concerns about a further slowdown in the economy. Data released on Friday showed that inflation has eased as US economic growth momentum has slowed down, helping the indices to sustain the up trend.
The Dow set new lifetime highs on Thursday and Friday and ended the week with gains of over a per cent. The S&P 500 climbed to new 6-year highs towards the end of the week and gained 1.2 per cent for the week. Technology stocks were more subdued and the NASDAQ ended 0.8 per cent higher for the week.

US Fed decided to leave key interest rates unchanged this week, as widely expected. The statement issued by the Fed did not give any clues about a likely time frame for a rate cut. The language used in the statement was more or less unchanged, expect for a reference to 'substantial' cooling of the housing market. This led to some concerns that the Fed's outlook for the economy may be weaker.
Most economists expect the Fed to ease interest rates next year by between 50 and 100 basis points. Subdued inflation data has bolstered their case, but if the US economy shows signs of a recovery the Fed may continue to keep rates steady. Some expect the Fed to maintain current rates for as long as a year while a select few believe the US economy would recover by the second half of next year and prompt further rate hikes.

Crude oil prices gained during the week as the OPEC finally decided to cut production by 0.5 million barrels a day from February. OPEC had announced a cut of 1.2 million barrels daily in October this year. US fuel inventory was lower than expected and supported the prices further. Prices were subdued earlier in the week on speculation that OPEC may not decide to bring down production any further, before picking up later in the week.
Near month futures on the NYMEX rallied nearly 2 per cent on Thursday before adding another per cent on Friday. The commodity settled at $63.22 per barrel on Friday.

Earlier this week, the International Energy Agency (IEA) warned the OPEC that another production cut was not warranted as crude oil inventories have declined. The agency said higher oil prices would further pull down global economic growth and would affect medium term demand for oil.
OPEC chose to ignore this advice and went ahead with its decision, seen as an attempt to strengthen its ability to impact prices. The cartel has added Angola as a new member and Sudan is expected to join in the near future. Weaker US dollar has impacted the oil revenues of OPEC members, another factor behind the decision to lower output. Analysts now believe that OPEC has set a medium term price target of around $60 per barrel, which is nearly 3 times the average price of $20 per barrel in 2002.
 
Indian index may face volatility as holiday season approaches

Indian index may face volatility as holiday season approaches


Mumbai: Investors may have to brace for choppy Indian shares this week, with foreign fund managers pre-paring for the holiday season leaving the market rudderless.

Volumes, which have already dwindled, could shrink more. Mixed economic data and pricey stocks are two factors that will keep many investors on the sidelines, while action will be driven by day-traders who revel in volatile conditions.

"You must be willing to roll up your sleeves and slug it out," said stocks dealer Gavin D'Souza, "The fundamentals are strong, but there's turbulence."

The market's soft underbelly was exposed last week when the 30-share Sensex plunged to as low as 12,801.65, or 8.8 per cent from its record high of 14,035.30 hit the week before. It took just three days for the benchmark to tumble below 13,000 after taking five weeks to climb from that level to 14,000.

Significantly, foreign institutional investors were net buyers through the week, while domestic funds were sellers.

Banks came back strongly after ICICI, India's largest private-sector lender, raised its main lending rate by 50 basis points and set the pace for others. The sector had taken a pounding after the Reserve Bank of India (RBI) hiked the cash reserve ratio the percentage of deposits that commercial banks must keep with the central bank by 50 basis points to 5.5 per cent in two phases by January 6.

The RBI move is expected to lower the money available for lending by Rs135 billion, and is aimed to slow down loans growth expanding at about 30 percent annually and to curb inflation.

Rising rates

However, rising interest rates are not good news for the stock market because they could crimp spending, raise costs for manufacturers and eat into corporate profit margins.

Industrial output data for October disappointed economists and markets alike when it came in unexpectedly soft, up 6.2 per cent from a year earlier against forecasts for about 10 per cent. It was the slowest growth in 10 months. Manufacturing output, which contributes more than 75 per cent of industrial output, rose 6 per cent in October from a year earlier, compared with 12.0 per cent rise in September.

While analysts believed the data was a blip and not a harbinger of a slowdown in the economy that grew an annual 9.2 per cent in the three months ends September, the market was clearly caught unawares.

"Because Indian shares are trading at such expensive valuations, the downside risk will be high if there's a whiff of a slowdown," an equity analyst at a foreign brokerage said.

Even after last week's correction the 14-day relative strength index of the Sensex was above 60, and inching closer to 70 a level that would suggest the market is overbought.

One of the casualties of the market's volatility last week was an initial public offering by Cairn India, a unit of British oil explorer Cairn Energy Plc. The issue barely managed to scrape through and bank-ers expect it to be priced at the lower end of the Rs160-Rs190 range, raising about $1.2 billion.

Sugar stocks

Shares in sugar companies, which have been underperforming the market for the past several weeks due to an expected bumper crop, will be in the limelight this week in anticipation of the government lifting a ban on exports in the coming days.

Farm Minister Sharad Pawar said last week sugar output in the current year that began on October 1 was likely to be 22.7 million tonnes, up from 19.3 million tonnes in the last season, well above India's annual consumption of about 19 million tonnes. He said it was time for removing the export ban, imposed in July to rein in soaring prices.

Although world sugar prices have dropped nearly a quarter in the past six months India, could hope to sell about 1 million tonnes, industry officials say.

Indian sugar companies are also investing heavily to produce ethanol, an alternative fuel that can be blended with petrol. State-run oil refiners have begun to accepts bids for the supply of ethanol, which is produced from molasses, a byproduct of sugarcane.


:tea:
 
Frontline stocks to drive markets to regain lost ground

Frontline stocks to drive markets to regain lost ground

Mumbai, Dec 17: Investors, after enduring huge corrections in the stock market last week, are likely to witness a period of consolidation with frontline and heavyweight stocks holding the reins of movement in the week ahead, analysts say.

Shares of Tata Steel, Reliance Communications are two major stocks sharing the limelight with their acquisition plans and are likely to remain in the news with their offers for mega deals.

"The rally in the stock market would be largely stock specific, companies making news headlines would be driving the markets," analysts from a leading brokerage firm said.

The whole saga of Tata Steel bidding for Corus, has taken its share price for a toss, which is currently hovering 14 per cent below its October levels.

On Friday, the shares of Tata Steel staged a partial recovery with a gain of over five per cent on speculations that the company might withdraw its bid to acquire Anglo-Dutch steelmaker Corus. The Tata Steel stock price closed the week 5.4 per cent higher at Rs 459.25 after hitting an intraday high of Rs 461.45 at the Bombay Stock Exchange.

Market players believe that the Corus deal has become costlier after Tata Steel revised its offer to 500 pence and Brazilian steelmaker CSN made a counter bid of 515 pence per share.

Meanwhile, the RCL stock rose 4.3 per cent on reports that it was in the race to acquire India's third largest private mobile firm Hutch-Essar. The acquisition if successful would make RCL the country's biggest telecom player.

Tata Steel and Reliance Communications investors gained as much as Rs 5.85 and Rs 36.95 per share respectively during last week's trading.

Equity markets have managed to revive from the lows of 12,800, to which it had plunged earlier this week, witnessing a roller coaster ride and ended the week with a gain of over 127 points at 13,614.52.

"Markets are in for a positive mood but it would not follow a straight northward movement on account of profit booking, declining participation from foreign fund managers," a market observer said.

BSE Sensex's heavyweight Reliance Industries ended in the green when compared to the levels of early this week.

The scrip reacted positively to the news that the Directorate General of Hydrocarbons has approved doubling output from its gas field in the KG Basin.

The market is also likely to draw strength from -- the advance tax collection figures, which would provide a broad outline of the third quarter corporate results and the Prime Minister's indications of a nine per cent GDP growth in the next five years.

The factors which could bring in some correction in the market would be the declining FII-participation on account of the year-end factor, as foreign fund managers would be in a vacation mood.

FIIs, however, had taken the sudden dip in the market earlier this week as a buying opportunity. They made a net purchase of shares worth over Rs 517 crore in the first two days of the week, when the BSE 30-share barometer index crashed over 800 points slipping below the 13,000-level.

According to some analysts, the market will end above 14,000 this year to test the previous high on the back of high liquidity.

:tea:
 
Markets end in green amid volatility: ONGC gains

Markets end in green amid volatility: ONGC gains
The markets had a fairly volatile session after languishing in the negative terrain for most of the day they ended near the highest points of the day.

Buying was seen in scrips from oil & gas auto, power, auto and pharma sector. The Sensex closed up 116.57 points or 0.86% at 13731.09, and the Nifty up 40.10 points or 1.03% at 3928.75.

About 1277 shares have advanced, 1202 shares declined, and 83 shares are unchanged.

The BSE Small Cap Index closed at 6,706.62 up 38 points or 0.6%.

The BSE Midcap Index ended flat at 5,664.23.

The BSE Bankex was up 0.9% at 7,057.30. UTI Bank, Karnataka Bank, Bank of India, ICICI Bank, HDFC Bank moved upwards.

The BSE IT Index gained 0.4% at 5,204.07. Mphasis BFL, Wipro, Moser Baer, HCL Info, TCS, HCL Tech advanced.

The BSE Metal Index traded flat at 8,806.26. Welspun Guj, Sterlite Ind, Hind Zinc, Mah Seamless, Sesa Goa ended higher.

The BSE Health Care Index closed was up 1% at 3,739.30. Sterling Bio, Ranbaxy Labs, Divis Labs, GlaxoSmithKline, Glenmark, Pfizer closed higher.

The BSE Auto Index closed at 5,316.79 up 1.03%. Tata Motors, MRF, Hero Honda, Ashok Leyland, Maruti Udyog moved higher.

The BSE Oil and Gas Index gained 3% to close at 6,151.24. ONGC, GAIL, Reliance, IOC ended in green.

The BSE Capital Goods Index was down 0.3% at 9,195.57. BHEL, Lakshmi Machine, Crompton Greave, Alfa Laval closed lower.

The BSE FMCG Index lost 0.2% at 1,949.17. Nirma, Nestle, Tata Tea, Dabur India closed in red.

The NSE cash turnover was at Rs 8211.22 crore and the NSE F&O turnover was at Rs 34653.82 crore. The BSE cash turnover was Rs 3430.6 crore. Total market wide turnover was at Rs 46295.64 crore.

Markets today

Market bonces back from day's low; led by oil & gas stocks
Sensex up 0.86% or 116.57 points at 13731; recovers 314.69 points from day's low at 13416.4
Nifty up 1% or 40.10 points at 3928.75; recovers 100 points from days low at 3828.15
BSE Oil & Gas Index up 3%; ONGC up 4.7%, RIL up 2.84% on gas find
Power stocks in focus; Tata Power up 5.8%; lowest bidder for Mundra project at Rs 2.26/unit
Lanco Infra up 6.77%; lowest bidder for Sasan project at Rs 1.19/unit
BSE Auto, Healthcare Indices up 1% each
Tata Mot up 3.6%, Hero Honda up 2.7%, Ranbaxy up 4.35, Divi's Lab up 4.3%
CNX Midcap Index ends flat; midcap IT stocks gain
Polaris up 7.8%, Mphasis up 4.24%, HCL Info up 3.2%
BSE Small-Cap Index up 0.58%
Zee Entertainment: demerged entity closes at Rs 272.35 Vs listing price of Rs 275 on NSE
New Listing: LT Overseas closes at Rs 55 Vs listing price of Rs 60.55 on BSE
Re-listing: Nicco Corporation closes at Rs 21.9 Vs listing price of Rs 17.05 on NSE
NSE Advance Decline at 4:5
Total market turnover at Rs 46295.64 cr Vs Rs 41820.16 cr on Friday
 
Sensex stages a smart recovery, Sensex closes 117 pts up

Sensex stages a smart recovery, Sensex closes 117 pts up
The stock market witnessed a volatile trading session on Monday after three firm trading sessions last week.

The BSE Sensex staged a smart recovery after plunging to an intra-day low of 13,416.40, on strong buying demand for index pivotals, especially index heavyweight Reliance Industries.

The buying interest intensified during the later half of the day's trading session, taking the Sensex to a fresh intra-day high of 13744.17.

The 30-shares BSE Sensex settled 116.57 points or 0.86% at 13,731.09 while Nifty was up 40.10 points or 1.03% at 3,928.75. Sensex had opened 81.08 points higher at 13,695.60 as buying continued following 127-point rally on Friday (15 December).
The total turnover on BSE amounted to Rs 3772 crore.
Market breadth turned positive, after initial weakness, as buying resumed for small-cap and mid-cap stocks. On BSE, 1321 shares advanced as compared to 1213 that declined. 79 shares remained unchanged.
Among the 30-Sensex pack, 19 advanced while the rest declined. In NSE, there were 399 advances and 535 declines.
Among the sectoral indices, oil and gas stocks surged 2.97%, auto stocks jumped 1.03%, pharma stocks advanced 1.01% banking stocks climbed 0.89% while consumer durables stocks plunged 1.01%, capital goods fell 0.31% and FMCG stocks was down 0.16%.
The major market movers on Sensex were ONGC which gained 4.44% to Rs 852.60; Ranbaxy rose 4.27% to Rs 391.10, Wipro rose 3.85% to Rs 586; Tata Motors jumped up 3.64% to Rs 889 and Reliance rose 3.35% to 1,295.55. Tata Power, Gail, Ranbaxy, ONGC and Tata Motors were the major gainers in the NSE.
The major BSE losers were Bhel which declined 4.54% to Rs 2,383, NTPC fell 1.82% to Rs 140.50, Reliance Energy was down 1.27% to Rs 533.15, Gujarat Ambuja fell 0.96% to Rs 138.70 and Hindalco fell 0.87% to Rs 176.40.
PSU oil exploration major ONGC was the top gainer, up 4.44% to Rs 852.60 on high volumes of 9.30 lakh shares, following reports that it has made a huge gas find in the Bay of Bengal, with initial estimates suggesting reserves of about 21 trillion cubic feet. The stock had surged to a high of Rs 867.70 in early trade.
Satyam Computer Services Ltd rose 0.6% to Rs 480.10 on announcing that it will resell Oracle's JD Edwards applications to mid-market companies in India.
Ranbaxy Laboratories Ltd surged 4.3% to Rs 391.10 on entering into a collaborative agreement with the Department of Science & Technology in the area of NDDR.
Zee Entertainment was the top traded counter on BSE with total turnover of Rs 73.41 crore. The stock listed after its restructuring at Rs 249. There are reports that Zee plans to raise Rs 900 crore via equity sale in Dish TV, WWIL once they are listed.
The Nikkei average rose 0.28% to log its highest close in more than seven months on Monday. The Nikkei was up 47.80 points at 16,962.11, the highest close since May 9. The broad Topix index rose 0.48% to 1,665.32. The Hang Seng index gained 0.43% or 81.70 points to 19,192.35.
Among the US stocks, the Dow Jones industrial average gained 28.76 points, or 0.23%, to end at 12,445.52. The Standard & Poor's 500 Index added 1.60 points or 0.11%, to finish at 1,427.09. The Nasdaq Composite Index rose 3.35 points or 0.14%, to close at 2,457.20.
New York's main contract, light sweet crude for January delivery, was down 26 cents to $63.17 a barrel from $63.43 in the United States on Friday.
 
Sensex crashes by 350 points, Nifty by 96 points

Sensex crashes by 350 points, Nifty by 96 points


Mumbai, Dec 19: The country`s key stock market barometer Sensex on Tuesday tanked 350 points, snapping a four-session bull run on a bearish global trend that saw Thailand`s benchmark index tumble to a 16-year low.

At one stage, the Bombay Stock Exchange (BSE) 30-share Sensex (sensitive index) was down by a massive 511 points at 13,237.39 from the day`s high of 13,748.62.

However, short-coverings at lower levels and buying by local funds in the nick of time helped it recover part of lost ground and closed at 13,382.01 -- showing a steep fall of 349.08 points or 2.54 per cent over Monday`s close.

Similarly, the broader S&P CNX Nifty of the National Stock Exchange (NSE), tumbled by 96.75 points or 2.46 per cent to end at 3,832.00 from previous close of 3,928.75.

On Wall Street yesterday, both the Dow Jones industrial average and the Nasdaq composite index finished in the red. But a sharp fall in most of the Asian markets mainly impacted negatively on the market sentiment.

The Hang Seng dipped by 237.54 points, the Nikkei by 185.23 points, the Singapore St by 59.90 points and Taiwan by 25.74 points at close today.

Thailand`s set index slid the most in 16 years, wiping 22.5 billion US dollar off the stock market`s value reacting to the Central Bank`s announcement that international investors will have to pay a 10 per cent penalty on funds withdrawn out of that country within a year.

The customary year-end pull-out by foreign institutional investors (FIIs) also caused the damage. FIIs were net sellers in the last two days.

The fall in the Sensex could be gauged by a sharp decline in 29 out of 30 index-based scrips as only Hero Honda survived the bears` onslaught.

Selling spree was so high that even the news of 9.1 per cent growth in India`s GDP on the back of industrial resurgence in the first half of the current financial year, failed to stem the fall in share values.

The market breadth turned sharply negative with 1,632 stocks closing with losses and 925 ending with gains.

The trading volume was relatively up at Rs 4,182.50 crore from Rs 3,828.96 crore on Monday. RIL clocked the highest turnover of Rs 219.31 crore followed by Tech Mahindra (Rs 148.12 crore), Bhel (Rs 128.81 crore) and SBI (Rs 104.87 cr).

The broad-based BSE-100 index dropped by 166.19 points to 6,747.88 from previous close of 6,914.07.

The BSE-200 index and the Dollex-200 were quoted sharply down at 1,598.70 and 594.25 at close compared to last close of 1,636.08 and 608.96 respectively. The BSE-500 index also slumped by 112.99 points to 5086.90 from 5,199.89 and the Dollex-30 ended lower at 2452.92 from 2,520.28 previously.

RIL shed 36.10 to 1253.05, NTPC by 6.45 to 134.25, Bhel by 104.70 to 2286.55, L&T by 56.15 to 1415.75, Infosys Tech by 67.75 to 2155.20, TCS by 40.10 to 1141.65, Satyam Computer by 16.25 to 463.60, Wipro by 14.95 to 566.95, SBI by 39.60 to 1228.75, ICICI Bank by 16.65 to 867.95, HDFC Bank by 25.65 to 1037.90, Grasim by 35.45 to 2717.30, acc by 35.40 to 1017.80, Gacl by 4.40 to 135.15, HLL by 5.40 to 224.75, ITC by 5.80 to 168.35, Tata Motors by 25.95 to 862.85, Maruti by 11.20 to 909.25, Bajaj Auto by 10.50 to 2546.80, Bharti Airtel by 13.05 to 603.90, Cipla by 4.25 to 241.00, Ranbaxy by 2.25 to 388.90, HDFC by 6.20 to 1549.55, Hindalco by 4.85 o 171.50, ONGC by 8.10 to 846.50, Rel Com by 16.75 to 451.15, Rel by 10.50 to 522.75 and Tata Steel by 12.85 to 454.55.
 
Markets close in deep red: Sensex below 13,400

Markets close in deep red: Sensex below 13,400

The markets ended in deep red on account of heavy selling seen in scrips across sectors. It was a broad based selling in scrips across sectors and leading the downtrend was capital goods followed by IT sector.

The Asian cues are extremely negative with Thai stocks plunging after the central bank said overseas investors will have to pay a 10 percent penalty to withdraw funds in less than a year. This has triggered declines across Asia's emerging markets

The Sensex closed down 349.08 points or 2.54% at 13382.01, and the Nifty down 96.75 points or 2.46% at 3832.

About 897 shares have advanced, 1611 shares declined, and 63 shares are unchanged.

The BSE Small Cap Index closed at 6,634.80 down 71.82 points down 1.1%.

The BSE Midcap Index ended at 5,595.78 down 68.45 points or 1.2%.

The BSE FMCG Index lost 2.3% at 1,903.57. ITC, Shaw Wallace, Colgate, HLL, Nirma closed in red.

The BSE Metal Index was down 2.3% to close at 8,605.41. JindalStainless, Hind Zinc, Sterlite Ind, Tata Steel, Welspun Guj were among the losers.

The BSE Bankex was down 2% at 6,911.56. Bank of India, Canara Bank, SBI, Allahabad Bank, HDFC Bank, PNB moved downwards.

The BSE Health Care Index was plunged 1.5% at 3,682.05. Matrix Lab, Divis Labs, FDC, Aurobindo Pharm, Glenmark, Sun Pharma closed lower.

The BSE Capital Goods Index was down 3.3% at 8,893.97. Crompton Greave, BHEL, , L&T, BEML, SKF India ended lower

The BSE Auto Index closed at 5,231.16 down 1.6%. Bharat Forge, Tata Motors, Hind Motors, Amtek Auto, Cummins, M&M were among the losers.

The BSE IT Index closed at 5,046.85 down 3%. Mphasis BFL, HCL Tech, TCS, Satyam, Wipro, Infosys, Moser Baer ended weak.

The BSE Oil and Gas Index closed at 6,019.16 down 2.2%. GAIL, Reliance, BPCL, HPCL, MRPL slipped.

The NSE cash turnover was at Rs 9059.12 crore and the NSE F&O turnover was at Rs 43871.42 crore. The BSE cash turnover was Rs 4165.88 crore. Total market wide turnover was at Rs 57096.42 crore.

Markets Today:

Markets end 2.5% lower on back of weak global cues
29 out of 30 Sensex stocks end in red, sentiment hit due to Thailand market FII norms
Capital Goods and Technology stocks lead the fall
BSE Capital Goods index down 3.3%, BHEL Down 4.4%%, L&T Down 3.8%
BSE IT Index Down 3%; Satyam, TCS & ,Infy down over 3% each
Small & Midcap stocks relatively outperform
BSE Small cap index down 1%, sugar stocks hog limelight
Midcap sugar stocks surge on partial lift on export ban, Dhampur Sugar ends 4.5% higher
CNX Midcap Index Down 1.7%, breadth negative
:tea:
 
Sensex ends at 13,340, down 42pts

Sensex ends at 13,340, down 42pts



Volatility has become the order of the day. The bulls and bears fought hard today as the Sensex swung wildly in and out of the positive zone.

The Sensex, which, opened with a positive gap of 70 points at 13,453, first scaled to a high of 13,568, and then soon tumbled to a low of 13,233 - down 335 points from the day's high.

The afternoon session saw the markets recover and the index rebound into positive zone gaining over 100 points led by smart buying in Infosys, Bharti Airtel, Tata Steel and ONGC.

However, the bears had the last laugh, as a fresh bout of selling towards the close saw the index tumble back into the negative zone.

The Sensex finally settled with a loss of 42 points at 13,340.
 
Choppy trade at BSE

Choppy trade at BSE



Wednesday, December 20, 2006 (Mumbai):

The markets ended weak after a volatile session on Wednesday with the benchmark index closing at 13,340 levels.

The Sensex moved in a broad range of 13,232 – 13,568 levels in the intra-day deals. In the broader markets, the Nifty shed 0.4 per cent or 16 points to end the day at 3815 levels.

"The Sensex has support at 13,300 levels. In the short-run, markets are expected to remain weak," said Sanjay Lodha, Head of Investment Advisory Services, Pictet (Asia).

"The investors are booking profits in this volatility. Besides, there is no fresh buying due to year ending. The current volatility is expected to continue for next few weeks," added Gurunath Mudlapur, MD, Atherstone Institute of Research.

Tata Motors, which moved down 3.1 per cent or Rs 26, was the biggest loser at the Sensex. Hero Honda, HLL, Wipro, HDFC Bank, Grasim Industries, Reliance Energy, Bajaj Auto and Satyam Computer also ended in the red.

However, Tata Steel, Maruti Udyog, ONGC, HDFC, ITC Ltd, Cipla Ltd, Infosys Technologies and ACC were the key gainers.

Banks slip

The BSE banking index, BANKEX, which shed 1.2 per cent or 84 points, was the biggest loser among sectoral indices.

HDFC Bank (down 1.9 per cent), Oriental Bank of Commerce (down 1.5 per cent), Allahabad Bank (down 1.1 per cent), ICICI Bank and SBI (down a per cent each), Canara Bank (down 0.9 per cent) and UTI Bank (down 0.8 per cent) lost ground.

In the capital goods space, Gammon India, Alstom Projects, Lakshmi Machine Works, Thermax Ltd, Crompton Greaves, Greaves Cotton, Bharat Electronics, SKF Bearings and Siemens India closed in negative turf.

Sundaram Clayton, Amtek Auto, Apollo Tyres, Bajaj Auto, Exide Industries, Tube Investments, Escorts Ltd, Cummins India and Punjab Tractors also closed in red besides Tata Motors and Hero Honda.

On firm ground

Consumer durables index firmed up 1.2 per cent or 37 points by the close of trade on Wednesday. It was the top gainer among sectoral indices.

Samtel Color (up 0.8 per cent), Titan Industries (up 0.7 per cent) and Whirpool (up 0.6 per cent) were the key gainers.

JSW Steel at Rs 349 levels was the top gainer among metal scrips. Tata Steel, NALCO, Jindal Steel & Power, Hindustan Zinc and Jindal Stainless also firmed up.

In the oil and gas pack, HPCL (up 2.2 per cent), GAIL India (up 1.9 per cent), ONGC (up 1.4 per cent) and BPCL (up 0.2 per cent) closed in positive territory.
 
Mkts end with modest gain: Auto, metals outperform

Mkts end with modest gain: Auto, metals outperform

The markets opened in the red but saw a reversal in trend during the later part of the day. The markets moved in the green with some modest gains on the back of selective buying seen in scrips from auto, metal and pharma sector. The volatility was low accompanied by low volumes and positive breadth.

The Sensex closed up 44.65 points or 0.33% at 13384.86, and the Nifty up 17.95 points or 0.47% at 3833.5.

About 1405 shares have advanced, 1094 shares declined, and 62 shares are unchanged.

The BSE Small Cap Index closed at 6,665.44 up 45 points or 0.7%.

The BSE Midcap Index ended at 5,612.70 up 38.30 points or 0.7%.

The BSE Bankex was down 0.4% at 6,814.71IOB, Canara Bank, Bank of Baroda, PNB, HDFC Bank moved downwards.

The BSE IT Index lost 0.3% at 5,027.28. I-Flex Solution, Infosys declined.

The BSE Metal Index was up 0.8% to close at 8,709.16. Mah Seamless, Sesa Goa, JSW Steel, Tata Steel, Jindal Saw ended higher.

The BSE Capital Goods Index was lost 0.2% at 8,811.51. HEG, SKF India, Thermax, Siemens, ABB closed lower.

The BSE Health Care Index closed was up 0.7% at 3,710.57. Glenmark, Nicholas Pirama, Apollo Hospital, FDC, Lupin, Biocon closed higher.

The BSE Auto Index closed at 5,301.32 up 1.9%. Amtek Auto, M&M, Tata Motors, Escorts moved higher.

The BSE Oil and Gas Index gained 0.4% to close at 6,061.90. Reliance, Petronet LNG, Chennai Petro ended in green.

The BSE FMCG Index gained 0.4% at 1,909.18. Nestle, Tata Tea, Shaw Wallace, HLL, Dabur India moved upwards.

The NSE cash turnover was at Rs 7925.71 crore and the NSE F&O turnover was at Rs 34624.23 crore. The BSE cash turnover was Rs 4397.06 crore. Total market wide turnover was at Rs 46947 crore.

Markets Today:
Markets recover in last hour of trade in volatile trade
Sensex up 44.65 points at 13384.86; swings 259 points during the day
Nifty up 18 points at 3833.50; swings 82.40 points during the day
BSE Auto Index up 1.85%; M&M up 4%, Tata Mot up 3.5%, Bajaj Auto up 2%
Telecom co in focus; FM broadly approves revised telecom FDI guidleines
VSNL, MTNL up 2% each, Tata Tele up 8.33%
CNX MIdcap Index up 1%; Tech Mahindra up 20% on winning $ 1 bn deal from British Telecom
NIIT up 20%, Indiabulls up 9.3% on real estate valuation
BSE Small-Cap Index up 0.67%; Ramkrishna Forgings up 20%, Kale Consultants up 17%
NSE Advance Decline ratio at 1:1
Total markte turnover at Rs 46947 cr Vs Rs 60524.41 cr on Wednesday
 
The markets ended firm after a volatile session

The markets ended firm after a volatile session

The markets ended firm after a volatile session on Thursday with the benchmark index closing at 13,384 levels.

The Sensex moved in a broad range of 13,182 – 13,441 levels in the intra-day deals. In the broader markets, the Nifty gained 0.5 per cent or 18 points to close at 3833 levels.

"The markets are volatile because of international factors and a smaller amount of participation by foreign funds. For next few days, volatility will be less," said Kamlesh Shroff, MD, The Omniscient Securities.

"The Sensex has support at 13,200 levels. It needs to sustain above this level to continue its journey north. I feel that it can test 12,800 on the downside," added Praveen Kumar, Technical Analyst, VIE Capital.

Tata Motors was the biggest gainer at the Sensex. It moved up 3.5 per cent or Rs 29. Reliance Communication, Reliance Energy, Bajaj Auto, Satyam Computer, Cipla Ltd, Reliance Industries, Tata Steel and Bharti Airtel were closed in the green.

However, Gujarat Ambuja Cements, ONGC, HDFC Bank, Larsen & Toubro, Ranbaxy, ICICI Bank, Infosys Technologies and SBI were some of the key losers.

Autos in top gear

The BSE Auto index, which gained 1.8 per cent or 94 points, was the top gainer among sectoral indices.

Amtek Auto (up 4.7 per cent), Mahindra & Mahindra (up 4 per cent), Escorts (up 2.5 per cent), Sundaram Clayton (up 2 per cent), Bajaj Auto (up 2 per cent) and Bharat Forge (up 0.9 per cent) also gained ground besides Tata Motors.

Titan Industries at Rs 783 levels was the top gainer among consumer durables space. It moved up 5.4 per cent or Rs 39. Blue Star (up 1.4 per cent) and Whirlpool (up 1.3 per cent) also firmed up by close.

In the metals pack, Maharashtra Seamless, Sesa Goa, JSW Steel, Jindal Saw, Sterlite Industries, NACLO, Ispat Industries, Hindalco, Hindustan Zinc and Jindal Stainless logged smart gains besides Tata Steel.

Banks slip

Indian Overseas Bank, Bank of Baroda, Canara Bank, Punjab National Bank, Allahabad Bank, Vijaya Bank, HDFC Bank, Andhra Bank, ICICI Bank and Bank of India were the key losers among banking stocks besides SBI.

In the capital goods pack, HEG Ltd, SKF Bearings, Thermax Ltd, Siemens India, ABB, Larsen & Toubro, Alfa-Laval, Gammon India, Aban Loyd and KEC Infrastructure lost ground.

i-Flex Solutions tanked 10.5 per cent or Rs 206. It was the biggest loser among technology stocks. Infosys Technologies (down 0.5 per cent) also ended in the red by the close of trading session.
 
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