+++MARKET NEWS+++

Sensex up 87 points

Sensex up 87 points

You may call it the Santa effect! After trading volatile for most part of the day on Friday, the benchmark index surged 87 points to close at 13,471 levels.

The Sensex moved in a broad range of 13,362 – 13,493 levels in the intra-day deals.

In the broader markets, the Nifty gained a per cent per cent or 38 points to end the day at 3871 levels.

"The market is in a consolidation phase. I expect volatility to continue in the week to come," said Prasoon Dalal, Technical Analyst, Prasoondalal.com.

Leading the charge at the Sensex was Gujarat Ambuja Cements. The stock Markets this week moved up 3.1 per cent by close.

Hero Honda, Wipro, Larsen & Toubro, Tata
Steel, ACC, Grasim Industries and ONGC also logged gains.

However, Satyam Computer at Rs 462 levels slipped 0.8 per cent. ITC Limited, Tata Motors, HDFC Bank, HLL and HDFC were some of the other top losers.

Metals shine

The BSE metal index that zoomed 1.5 per cent or 129 points was the biggest gainer among sectoral indices.

Sesa Goa at Rs 1391 levels firmed up 12.5 per cent or Rs 154. JSW Steel, Maharashtra Seamless, Jindal Stainless, Jindal Saw, SAIL, Hindalco and Ispat Industries are also trading in positive turf.

Strength was also visible in capital goods counters. Aban Loyd Chiles (up 6.5 per cent), Greaves Cotton (up 5.7 per cent), Alstom Projects (up 3.5 per cent), Carborundum Universal (up 3.3 per cent), Crompton Greaves (up 2.5 per cent) and Larsen & Toubro (up 2.4 per cent) logged gains.

Dalmia Cement at Rs 417 levels led the charge among cement scrips. It firmed up 6.1 per cent by close. India Cements, Saurashtra Cement, Chettinad Cement, Ultratech Cemco and Shree Cements logged smart gains besides ACC and Grasim Industries.

Sugar cracks

Sugar stocks ended the day weak. Bajaj Hindusthan, Oudh Sugar and Balrampur Chini slipped over two per cent each. Dwarikesh Sugar, Sakthi Sugar, Shree Renuka Sugar and Bannari Amman Sugar were some of the other top losers.

Among banking scrips, UTI Bank, Union Bank of India, HDFC Bank and Allahabad Bank ended the day weak.
 
Markets Manage To End In The Positive After High Choppiness

Markets Manage To End In The Positive After High Choppiness

Friday, December 22, 2006

(RTTNews) - Friday, Indian markets underwent yet another bout of choppiness, exposing the tug of war between the bulls and the bears. In a last hour frenzy, hardcore optimists lapped up select blue chips to land the indices in green pastures.

The Sensex gap-opened up 13 points higher at 13,398, but quickly slipped to a low of 13,362 due to lackluster trading ahead of the long Christmas weekend. Select buying towards the end fired the Sensex to a high of 13,494, before finally settling with a gain of 87 points or 0.65% at 13,472. In all, during the week, the index went down 142 points from the previous week.

The Nifty ended with a gain of 38 points or 0.98% at 3,871 between its intra-day high of 3,880 and low of 3,823.

Reflecting sharp gains in small cap and mid cap stocks the BSE Midcap and Smallcap indices spurted 0.64% and 0.84% respectively. The BSE metal index rose 1.5% and was the biggest gainer among sectoral indices. The market breadth was positive, with 1,498 issues advancing and 1,049 declining.

In the Sensex space, Cement stocks ended firm. Gujarat Ambuja surged over 3%. ACC and Grasim moved up nearly 2% each. Hero Honda rallied 3%. Wipro advanced 2.7%, and Larsen & Toubro added 2.4%. Tata Steel gained 2%. ONGC and Reliance Communications were up 1.5% each. TCS and Bajaj Auto moved up over 1% each. BHEL was up 1%.

In the metal space, Sesa Goa firmed up 12.5%. JSW Steel, Maharashtra Seamless, Jindal Stainless, Jindal Saw, SAIL, Hindalco and Ispat Industries also ended higher. Capital Good stocks also ended in a winning note. Aban Lloyd, Greaves Cotton, Alstom Projects, and Carborundum Universal were the key gainer in the day.

However, Sugar stocks turned bitter. Bajaj Hindusthan, Oudh Sugar, Balrampur Chini and Bannari Amman Sugar were some of the other top losers among them. In the banking space, UTI Bank, Union Bank of India, HDFC Bank and Allahabad Bank ended the day weak.
:tea:
 
Market in holiday mood, down another 143 pts

Market in holiday mood, down another 143 pts



Mumbai, Dec 23: Stocks: The market has entered into Christmas holiday mood in the penultimate week of the year, as heavy selling by foreign funds pulled down the BSE Sensex further by 1.05 per cent during the week under review.

Initially, the market reacted positively to reports of likely moderation in corporate and income tax rates in the forthcoming budget, sending encouraging signals to investors.

However, net selling to the tune of Rs 956.40 crore by foreign institutional investors (FIIs) on the first four days of the week, turned the tables in the favour of bear operators.

FIIs generally preferred to play safe in the month of December to enjoy Christmas, dealers said.

The Bombay Stock Exchange (BSE) 30-share sensitive index, Sensex, opened strong at 13,695.60 points from last weekend`s close of 13,614.52 points and immediately touched a high of 13,748.62 points.

However, large-scale sell-off by FIIs pushed the index down to a low of 13,182.35 points. But sustained buying by domestic mutual funds throughout the week helped to recover smartly.

Finally, the Sensex concluded the week at 13,471.74 points, still showing a fall of 142.78 points.

The broader S&P CNX Nifty of the National Stock Exchange (NSE) also declined further by 17.50 points or 0.45 per cent to 3,871.15 points from previous weekend`s close of 3,888.65.

However, heavy buying by domestic mutual funds cushioned the Sensex fall to some extent. They pumped in Rs 752.84 crore between December 18 and 21.

Dealers attributed fag-end recovery to short-coverings by operators and retail investors ahead of the end of December series on Thursday next week.



Refinery shares like RIL, ONGC, IOC and IBP attracted good buying support and as a result, the sectorial BSE-oil gas index spurted by 153.10 points or 2.56 per cent to 6,126.68.

Tech Mahindra was also in keen demand on news that the company has bagged the biggest outsourcing contract from British Telecom.

However, some of the capital goods, IT and banking stocks were at the receiving end. The sectoral BSE-CG index tumbled by 306.58 points to 8,917.62, the BSE-IT by 126.45 points to 5,055.15 and the bankex by 165.47 points to 6,829.31.

The broad-based BSE-100 index dipped further by 75.34 points to close finish the week at 6,797.79 from the last weekend`s close of 6,873.13.

The BSE-200 index and the dollex-200 were quoted lower at 1,610.90 and 601.74 at the weekend compared to last weekend`s close of 1,628.57 and 606.23 respectively.

The BSE-500 index also dropped by 48.01 points to end the week at 5,130.25 from preceding weekend`s close of 5,178.26 and the dollex-30 closed the week down at 2,481.55 from 2,499.16 last weekend.

On the NSE, the S&P CNX Defty eased by 3.20 points to close the week at 3,009.35 points from previous weekend`s close of 3,012.55 points and the S&P CNX Nifty junior moved by sharply by 147.25 points to conclude the week at 6,835.90 from 6,983.15 last weekend.

During the week, the trading volume on the BSE and the NSE was relatively low at Rs 21,062 crore and Rs 42,862 crore compared to Rs 22,862 crore and Rs 46,879 crore last weekend respectively.
:tea:
 
Sensex zooms 237 points

Sensex zooms 237 points


MUMBAI: Bull operators tightened their grip on the stock market when foreign investors took a break for Christmas holidays and lifted the Sensex by a 237 points to 13708.34 amid extremely low volume on Tuesday. All indices scored more than one per cent gains following across-the-board buying support.

Some leading private mutual funds too were believed to be heavy buyers in select frontline counters.

The Sensex opened strong at 13501.44 and gradually moved upwards to the intra-day high of 13726.62 before ending at 13708.34, a net rise of 236.60 points or 1.76 per cent over Friday's close of 13471.74. The S&P CNX Nifty of the National Stock Exchange too soared by 69.35 points or 1.79 per cent to close at 3940.50 Bulls and retail investors hectically covered their short positions ahead of the expiry of December series. Bear operators too were seen squaring up outstanding positions due to approaching end of the derivatives contract. A leading mutual fund cornered large chunk of shares of blue chip companies. Mutual funds have stepped activity since last week and reported net investments of Rs. 752.84 crore between December 18 and 21.

The trading volume was very low in the absence of foreign institutional investors, who remained on the sidelines in view of year-end holidays.
 
Sensex zooms 237 points

Sensex zooms 237 points


MUMBAI: Bull operators tightened their grip on the stock market when foreign investors took a break for Christmas holidays and lifted the Sensex by a 237 points to 13708.34 amid extremely low volume on Tuesday. All indices scored more than one per cent gains following across-the-board buying support.

Some leading private mutual funds too were believed to be heavy buyers in select frontline counters.

The Sensex opened strong at 13501.44 and gradually moved upwards to the intra-day high of 13726.62 before ending at 13708.34, a net rise of 236.60 points or 1.76 per cent over Friday's close of 13471.74. The S&P CNX Nifty of the National Stock Exchange too soared by 69.35 points or 1.79 per cent to close at 3940.50 Bulls and retail investors hectically covered their short positions ahead of the expiry of December series. Bear operators too were seen squaring up outstanding positions due to approaching end of the derivatives contract. A leading mutual fund cornered large chunk of shares of blue chip companies. Mutual funds have stepped activity since last week and reported net investments of Rs. 752.84 crore between December 18 and 21.

The trading volume was very low in the absence of foreign institutional investors, who remained on the sidelines in view of year-end holidays.
 
Sensex is the most volatile, globally

Sensex is the most volatile, globally

MUMBAI, DEC 26: The BSE on Tuesday posted the biggest fluctuation among equity markets included in global benchmarks. The Sensex extended its upward rally for the third straight trading session on Tuesday. Renewed buying in heavyweights helped the 30-share index gain 236.60 points, or 1.76%, to settle the day at 13,708.34.

The Sensex opened the day with a gap of nearly 30 points and touched a high of 13,726.62 points and a low of 13,490.77 points intra-day. It moved in a range of 135.85 points during the day and posted its biggest gain since December 14.

The broader S&P CNX Nifty of the National Stock Exchange (NSE) gained 69.35 points, or 1.79%, to close the day at 3,940.50. Near-month Nifty futures contract ended at 3,943.95, gaining 2.26% while Nifty January contract gained 2.30% at 3,943.70. Nifty February contract gained 2.21% to close at 3,940.

A Bloomberg report said the Indian markets were the biggest gainers among global equity markets on Tuesday. There was a broad-based rally in which the side-counters also participated, which resulted in a strong market breadth. On the BSE, a total of 1,652 stocks gained ground and ended the day on a positive note while 954 stocks slipped into the red ending the day on a weak note.

ITC gained Rs 4.9, or 2.9%, to Rs 174.55, its biggest advance since November 21. ONGC also rose Rs 22.85, or 2.6%, to Rs 888.1. The BSE mid-cap index ended the day with a gain of 0.87% while BSE small-cap rose by 1.25% to end the day on a smart note. Among the Sensex pack 26 stocks advanced while 4 stocks slipped in to the red.

Provisional figures provided by the exchange shows that FIIs were net sellers to a tune of Rs 210.28 crore on Tuesday.
 
Wrap Up: Sensex inches close to 14K

Wrap Up: Sensex inches close to 14K

The markets opened with a bang at 13,734.01 and continued to trade higher in the morning session. Later, the index in the noon trades made further inroads into the positive terrain due to sustained buying interest seen among the market participants in frontline stocks. Finally, it touched a high of 13,911.59 and thus ended on a strong note. Heavyweights like IT, auto, banking, telecom and cement led the advances.

The BSE Sensex closed higher by 151.35 points at 13,859.69 while NSE Nifty settled at 3,974.25, up 33.75 points.

Overall, the market breadth was positive. Out of the total 2,706 stocks traded, 1,353 advanced, 1,265 declined and 88 remained unchanged.

Major gainers on the index included Satyam, which advanced 3.24% to settle at Rs 492, Tata Motors, inched up 2.54% to Rs 906.85, and HDFC Bank, which moved up 2.53% to close at Rs 1,056.90. ICICI Bank, Gujarat Ambuja and Wipro too featured on the list of gainers.

Losers on the BSE Sensex were ONGC, WHICH declined 1.70% to finish at Rs 873, Hero Honda, which dipped 0.63% to Rs 744.40, and HLL, which slid 0.57% to end the day at Rs 219.55. Reliance Energy, BHEL and L&T also slipped.

EIH led the volume trades with 2.11 million shares followed by Reliance Comm with 1.57 million shares, Sterling Biotech with 1.55 million shares and Ashok Leyland with 1.47 million shares.
Source: IRIS
 
Sensex ends 1.3 pc up

Sensex ends 1.3 pc up as banking, auto stocks lead rally

Mumbai, Dec. 27 (PTI): The benchmark Sensex ended more than 150 points, or 1.10 per cent, higher on Bombay Stock Exchange today on widespread buying by foreign and domestic funds in banking, auto and technology sector stocks.

The 30-share index, Sensex, which gained over 368 points in the last three sessions, hit the day's high of 13,911.59 and settled at 13,859.69, an increase of 151.35 points.

In likewise fashion, the wide-based National Stock Exchange index, Nifty, ended 33.75 points, or 0.86 per cent higher, at 3,974.25 after hitting a high of 3,986.75.

Market observers said apart from steady buying by foreign funds, short-covering by brokers ahead of tomorrow's December expiry in the Futures and Option (F&O) segment was another factor behind today's rally.
 
Mkt strong, Sensex above 13,900 levels

Mkt strong, Sensex above 13,900 levels

The market kept on gaining momentum in intra-day trade on Wednesday with the Sensex striking above the 13,900 mark, at 13,911.59 during late afternoon session of trade.
The 30-shares BSE Sensex settled 151.35 points higher or 1.10 per cent, at 13,859.69. It had opened with an upward gap at 13,734.01, as buying continued following a 237-point surge in the previous session (Tuesday). It's low for the day is at 13, 734.01.
The S&P CNX Nifty rose 36.25 points to 3976.75
High volatility is expected ahead of an impending expiry of the December futures contracts tomorrow (28 December 2006).
The total turnover on BSE amounted to Rs 3,637 crore.
The market-breadth was strong on BSE, with 1,358 shares advancing compared to 1,263 that declined. Interestingly the gap between advances to decline ratio has been reducing, which implies that selling pressure is emerging for small and midcap stocks. A substantial 82 shares remained unchanged.
Among the 30-Sensex pack, 23 advanced while the rest declined. In NSE, there were 677 advances and 220 declines.
Among the sectoral indices, all were trading in the positive territory. Banking stocks surged 2 per cent, IT stocks jumped 1.90 per cent, telecom stocks advanced 1.62 per cent, consumer durables stocks rose 1.19 per cent and auto stocks rose 1.02 per cent.
The major market movers on Sensex were Satyam which gained 3.24% to Rs 492; ICICI Bank rose 2.93% to Rs 898.15, Tata Motors rose 2.78% to Rs 909; HDFC Bank jumped up 2.63% to Rs 1,058 and Gujarat Ambuja rose 2.26% to 142.50. Gail, MTNL, Satyam, HDFC Bank and ICICI Bank were the major gainers in the NSE.
The major losers on Sensex were ONGC which declined 1.59% to Rs 874, HLL fell 0.82% to Rs 219, Maruti fell 0.71% to Rs 924.10, Hero Honda fell 0.54% to Rs 745.10 and L&T was down 0.49% to Rs 1,444.15.
ONGC was the top loser, down 1.59% to Rs 874 after it went ex-dividend. The oil exploration PSU had declared an interim dividend of Rs 18 per share.
Gail surged 3.7% to Rs 267.50 after reports that the Oil Ministry has extend 7-years tax holiday to the company under section 80 1B.
Mazda Ltd informed BSE that the company has been awarded an order for Triple-effect Forced Circulating Evaporator Plant amounting to Rs 23.71 million.
The Nikkei share average rose to its highest in more than seven months on Wednesday. The Nikkei was up 54.05 points at 17,223.24, its highest since early May.
The US market ended higher on Tuesday. The Dow Jones industrial average ended 27.48 points or 0.22%, higher at 12,370.70. The Standard & Poor's 500 Index was up 4.35 points or 0.31%, at 1,415.11, while the Nasdaq Composite Index was up 6.36 points or 0.26%, at 2,407.54.
Oil futures plunged over a dollar to less than $61 a barrel on Tuesday. US crude fell $1.56 to $60.85 a barrel by evening, while Brent crude dropped by $1.54 to $60.88 a barrel.
 
Markets on an uptrend as bears cover up


Markets on an uptrend as bears cover up

Vyas Mohan, DNAMoney
Wednesday, December 27, 2006 23:59 IST
MUMBAI: With bears unwinding their short positions ahead of the December derivatives expiry, the Sensex gained 1.1% on Wednesday to close at 13,859.69 points, while the Nifty gained 0.86% to close just 25.75 points short of the psychological mark of 4,000 points.

While further unwinding of short positions is expected to extend the uptrend in the markets to Thursday, the accumulation of long positions in January contracts could fuel the rally from there.

The increase in cost of carry and open interest in January contracts indicates a growth in the number of long positions for the month ahead, which is the derivative market equivalent of a buy in the cash market.

“The bullishness is due to the covering of current month contracts and building up of long positions in January contracts. The trend is likely to continue and the Nifty could touch 4,000 tomorrow,” says Amit Hiremath of IDBI Capital.

While a marketwide rollover of about 69% ahead of settlement day reflects a certain amount of investor confidence, the continued build-up of long positions and the consequent rise in cost of carry could dampen the mood going forward.

“The market-wide cost of carry is around 12.8%. We would be a little cautious by the middle of January if it inches towards the 15% level,” says Hiremath.

Analysts are comfortable if the cost of carry remains below 14%. An increase in cost of carry represents the costly (over-bought) nature of the contract and, in turn, the stock.

Chartists are also bullish on the market, but with a caveat. If the markets remain lacklustre for the next two days, it could mean that they will close the month without gaining much on a monthly basis (from December beginning to end).
This, in technical analysis is a double-top formation, or an indication of a trend reversal.

“After registering monthly gains for six consecutive months, the indices are at about the same level as they were at the beginning of the month. It is called a ‘doji’ in the candlestick method of technical analysis and shows resistance at these levels,” says Prem Daga, a technical analyst.

However, Vinit Birla, technical analyst of Pranav Securities, says the month is not yet finished and the markets have time to close with a monthly gain. He has a target of 14,035 on the Sensex and 4,050 on the Nifty in the next two weeks.
:tea:
 
India Advances 1.1%, SBI Hikes Rate

India Advances 1.1%, SBI Hikes Rate

The benchmark index surged today aided by broad-based buying in stocks across sectors and short-covering before the expiry of the December contracts on December 28, 2006. Bank led the rally with IT and auto stocks surging as well. Satyam, ICICI Bank and Tata Motors led the advancers, while ONGC, which rallied yesterday, led the decline today. Foreign direct investment in India may double in the current fiscal year. The Indian economy shows no signs of overheating, a survey suggests.


10:30 AM The Sensex advanced on Wednesday in a broad-based rally.
The Sensex on BSE finished 151.35 points, or 1.10%, higher at 13,859.69. The market-breadth was strong as 1,358 shares advanced, 1,263 declined and 82 remained unchanged. From the Sensex stocks, 23 advanced, while the rest declined. The turnover on BSE was Rs 3,637 crore, higher than Rs 3,045 crore on Tuesday. The turnover on NSE was Rs 7,083.45 crore, compared to Rs 6,163.81 crore on Tuesday.

Economic news

Direct foreign investment in India is likely double to $11 billion in the fiscal year ending March 2007, Commerce Minister Kamal Nath said in a government statement. Previous year foreign investment inflows were $5.5 billion.

There are no signs that Indian economy is overheating. It is able to sustain the current 8% to 9% growth for a long period, as long as the supply side is run well and domestic savings grow, an Assocham survey has stated.

The Indian rupee hit its highest level in more than nine months. Banks and companies sold the dollar for a higher yield of the rupee as a cash shortage emerged in the domestic banking system.

In trade today

Indiabulls was the most active stock with a turnover of Rs 252 crore followed by TV 18 and Reliance Industries.

Advancers

Satyam Computers led the advancers, rising 3.24% to Rs 492. Sector leader, Infosys Technologies, gained 1.65% to Rs 2,256.05. The company is currently offering its software product Finacle to ten international banks and sees great potential in the software replacement market in the US and Europe.

Other advancers in IT sector included TCS adding 0.15% to Rs 1,192, Hexaware surging 4.64% to Rs 195, HCL Technologies rising 0.55% to Rs 621 and Wipro jumping 1.78% to Rs 608.

Index heavy Reliance Industries gained 1.43% to Rs 1,296 and State Bank of India also advanced 0.13% to Rs 1,247.50, following its announcement of prime lending rate to 11.5%.

Dr Reddy’s Laboratories edged 0.23% higher, at Rs 804, slipping from an intraday high of Rs 840 in early trade.

i-flex Solutions advanced 3.75% to Rs 2,017. The company announced that all shares tendered in the open offer, which finished on December 23, 2006, will be accepted.

Tata Motors advanced over 2.5% to Rs 907 and Bajaj Auto was up Rs 14 at Rs 2,656 in the auto sector.

Decliners

ONGC led the decliners, ending 1.59% lower at Rs 874, after going ex-dividend. The oil and gas leader had posted an interim dividend of Rs 18 per share.

Other major decliners included Hindustan Lever falling 0.82% to Rs 219, Maruti shedding 0.71% to Rs 924.10, Hero Honda down 0.54% to Rs 745.10 and L&T losing 0.49% to Rs 1,444.15.


9:45AM Stock markets opened higher, helped by strong tech stocks.
Stock markets opened higher for a second day in a row, lifted by bargain hunting on a broad-market scale. The trading session is expected to be of thin volume, typical of the week at the end of year. Oil and natural gas prices continued to decline due to mild winter weather. Light sweet crude fell 23 cents to $60.87 a barrel on the Nymex. The New York Stock Exchange honored the late U.S. President Gerald Ford with two minutes of silence.

The tech-heavy Nasdaq advanced in early trading, supported by gains for Microsoft (MSFT: chart), up 0.3%, Intel (INTC: chart) higher by 1.1%, and Dell (DELL: chart), rising 1.3%. However, shares of Apple Computer (AAPL: chart) dropped 5% to $77.48 amid a news report, saying that company officials could have falsified past stock-option documents to maximize profits for executives. Auto stocks were also in the spotlight in opening hours. Ford Motor (F: chart) gained 1.9% at $7.63 after Toyota Motor Co. (TM: chart) confirmed that the two auto makers held talks in Japan last week. Toyota rose 1.4% to $133.50.
:tea:
 
Sensex ends in red, sheds early gains on selling pressure

Sensex ends in red, sheds early gains on selling pressure

Mumbai, Dec 28. (PTI): Late selling by funds and retail investors today cut short the stock market's four-session winning streak, pushing the BSE benchmark Sensex down by over 13 points.

The 30-share Sensex, which rose by over 100 points in early trading, fell back to settle 13.35 points down at 13,846.34 on late selling activity in heavy-weight stocks. It touched a session's high of 13,960.39 and low of 13,819.77 points following two-way movements in front-line stocks.

Similarly, the wide-based National Stock Exchange, Nifty, declined by 3.70 points at 3,970.55 after moving between 3,997.35 and 3,961.95 points during the session.
:tea:
 
Sensex ends 2006 on cautious note

Sensex ends 2006 on cautious note


MUMBAI: The markets finished 2006 on a cautious note as select blue-chips met with selling that pushed the benchmark Sensex down by 59 points on the last trading day of this year.

On a year-on-year basis, the Sensex garnered a record 4388.98 points (in absolute terms) or 46.70 per cent in 2006 and the S&P CNX Nifty at 1129.85 points or 39.83 per cent in the same period. Nothwithstanding the gains, the market closed in negative terrain, but the breadth and undertone remained positive for another round of rally in the next year. Week-end profit-selling in some of the index-based stocks by foreign funds as well as operators and lack of follow-up buying support due to holiday mainly depressed the sentiment. The Bombay Stock Exchange 30-share sensitive index, Sensex, fluctuated in a range of 13929.10 and 13770.06 before closing at 13786.91 on Friday, a fall of 59.43 points or 0.43 per cent over Thursday's close of 13846.34.

On the NSE, the S&P CNX Nifty 50-share index also eased further by 4.15 points to 3966.40 from the previous close of 3970.55. — PTI:tea:
 
Sensex gains 47%, funds pour in

Sensex gains 47%, funds pour in

MUMBAI: On Friday, the last trading day of 2006, the sensex ended 59 points lower at 13,787, but that doesn't take away the huge positives that came through during the year, probably the best in the 132 years of BSE.

A 47% gain in BSE Sensex, nearly $8 billion worth of foreign fund inflows and over Rs 13,000 crore from domestic funds, and Rs 11.2 lakh crore addition to investors wealth: This is the market for you in the year that is about to end. 2006 witnessed a sustained bullish trend that lasted throughout, except for a one-and-a-half month period during May and June when sensex corrected nearly 35% from all-time high of 12,672.

Prior to this crash, the sensex had, at regular intervals, raced past 10K, 11K and 12K levels. And after the crash and subsequent recovery, when the index embarked on record-breaking spree all over again, it went past 13K and 14K peaks, boosted by foreign and domestic fund buying, along with speculative excesses. In the end, the sensex also bettered the 42% gains of 2005.

It was a record year for cement shares with a number of doubling in price. Along with industry leaders ACC and Grasim Industries, prices of smaller players like India Cements also went through the roof. With infrastructure sectors leading the charge in a galloping economy, it was a year to remember for investors who had put their bets on cement stocks.

Along with cement and infrastructure stocks, real estate stocks too showed huge gains, although part of the gains could be attributed to the lack of collective knowledge about the valuation of these stocks.

It was also a memorable year for investors in telecom stocks with Bharti Airtel appreciating about 81% and Reliance Comm, which was listed in March, giving a 62% return. The record gains of 2006 has also made market veterans cautious. "One of the dangers for 2007 is that 2006 could be looked back as the benchmark year," said Arun Kejriwal, director, KRIS, an investment and advisory services company.

In such a situation, if the sensex grows by another 45% next year, it should be at 20K level by December 2007. This will require frontline companies to grow at the same rate, that's 45%, which is improbable.

Long-term players are not looking at repeating 2006 performance in 2007. "We expect gains of about 15-20% for best run companies. Any P/E expansion is unliekly," said Naresh Kothari, executive V-P, Edelweiss Capital.

The choice between investments in frontline stocks, and small and mid-cap stocks could be a dillemma for investors in 2007, market players said. Most of the frontline stocks look fully valued at the current level, so any fresh investment in these stocks might not give good returns. On the other hand, there is not enough liquidity in second rung stocks and they are highly risky bets. Recently,"a lot of investors were shattered when they went overboard in these counters and those memories are fresh," said Kejriwal. In case investors do decide to take bets in small- and mid-cap counters, it would also lead to higher volatility.

Could there be hidden minefields in 2007 as well? With each passing day, as the Indian market is getting more aligned to the global markets, negative developments elsewhere in the world could lead to a fall in India, said Kotahri. Rising interest rates, along with rising inflation in a stabe global crude oil price regime could also spell trouble for the India Inc, market players said.

Market analysts are looking at a strong Q3 and a good Q4 from corporates, but they expect the quarters beginning July 2007 and October 2007 to be tough ones for even the best of Indian companies.:tea:
 
Sizzling 2006 over! Sensex set to scale 15 K in New Year

Sizzling 2006 over! Sensex set to scale 15 K in New Year

Mumbai, Dec 31. (PTI): It was a bull-run all the way in the Indian stock markets in 2006 which gained the highest-ever 4,389 points, on the back booming economy and corporates' bumper earning, making 15-k mark for the benchmark BSE Sensex a possibility in the New Year.

The 47 per cent rise on the Sensex in 2006 enabled the 30-stock benchmark index to gain between 42 and 73 per cent in three of the last five years.

Sensex has gained 10,525 points, a rise of 323 per cent, in the five-year unbroken rally since 2002.

The 2006 rally was also remarkable in terms of sustained upward momentum that was maintained month after month. Despite dips in May and June, Sensex closed above the 10,000-level during the month-ends with Sensex bouncing back except in January.

In 2006 the Indian markets, for the first time, crossed the 10,000-mark in February and journey to 14,000 in December was unbelievably short, with 1,000-point gains every quarter.

Asian markets provided good support to Sensex with Japanese index Nikkei too closing the year at 17,225 and Hong Kong Stock Exchange index Hang Seng, for the first time, crossing 20,000 in December 2006.

Domestic Mutual Funds played the anchoring role whenever there was unstability in the market largely on account foreign institutional investors (FIIs) moving out as valuations seemed to be overstretched.

Most of the Sensex stocks outperformed the market. Reliance Communication posted maximum gains of 128 per cent. ACC and Grasim Industries were the other two stocks that gained over 100 per cent. Bharti Airtel was up 81.9 per ent and Gujarat Ambuja Cements 77.5 per cent.

Reliance Energy was the worst performer among the Sensex stocks losing 14 per cent. Hero Honda (-11 %), ONGC (11.1%), Ranbaxy Laboratories (8.1%) and HLL (9.8%) were the other laggards.

The market looks poised for more gains in the new year with third quarter results likely to be equally impressive, indicated by strong advance tax payments by top corporates.

Giving a sense of the markets in 2007 Angel Broking's Chairman and Managing Director Dinesh Thakkar said that select sectors like IT, banking and telecom could see around 25 per cent growth and midcap stocks are likely to outperform Sensex.

Thakkar said, the benchmark index was likely to be in the range of 15,000-16,000 by the end of 2007.

Another market watcher, however, felt the hardening of interest rates and rising commodity prices were going to lead to muted growth of the top corporates in times to come with their turnover and profits getting squeezed.

Automobile and banking sectors were going to be weaker, but consumer, utility and pharma looked promising, the market watcher, who preferred not to be quoted, said projecting a 2500-point swing in the Sensex in 2007.

Even then Sensex will be in the wide range of 12,000 to 15,000 in the New Year backed by sound economic fundamentals:tea:
 
Sensex sizzles on Day 1, gains 155pts

Sensex sizzles on Day 1, gains 155pts

The Sensex opened with a positive gap of 41 points at 13,828. The index slipped to a low of 13,797 in morning deals, but bounced back and rallied to higher levels on buying in auto and technology stocks.

The index flared up to a high of 13,981 before settling at 13,942 - up 155 points on the first trading day of 2007.

The BSE Auto index zoomed over 3% to 5696. The IT index flared up nearly 2% to 5369. While the Small-cap index surged 1.6% to 7004, the Mid-cap index was up over 1% at 5872.

The market breadth was very positive - out of 2,639 stocks traded, 1,927 advanced, 656 declined and the rest were unchanged today.

INDEX MOVERS & SHAKERS

Satyam soared 5% to Rs 508. TCS rallied 2.5% to Rs 1,249. Infosys moved up 1.5% to Rs 2,272, and Wipro spurted over 1% to Rs 612.

Bajaj Auto and Maruti flared up 4.5% each to Rs 2,739 and Rs 969, respectively. Tata Motors and Hero Honda advanced around 3% each to Rs 930 and Rs 784, respectively.

Hindalco and Gujarat Ambuja gained over 2% each to Rs 178 and Rs 144, respectively. Ranbaxy and Grasim added 1.7% each to Rs 398 and Rs 2,835, respectively.

NTPC & Larsen & Toubro were up over 1% each at Rs 138 and Rs 1,459. Reliance moved up nearly 1% to Rs 1,282.

VALUE & VOLUME TOPPERS

Nissan Copper topped the value chart with a turnover of Rs 269.30 crore followed by Reliance Communications (Rs 166.30 crore), Indiabulls (Rs 157.35 crore), Tech Mahindra (Rs 119.35 crore) and Infosys (Rs 67.30 crore).

Nissan Copped also led the volume chart with trades of around two crore shares followed by Silverline (1.22 crore), IFCI (1.18 crore), Pentium Infotech (76 lakh) and Indiabulls (51.30 lakh).
:tea:
 
Sensex ends 143 points down in volatile trade

Sensex ends 143 points down in volatile trade

Mumbai, January 4, 2007

After touching an intra-day record high of 14,060 points, the Bombay Stock Exchange's benchmark Sensex succumbed on Thursday to mid-way profit booking and lost over 143 points.

The 30-share Sensex, which rose by 155 points in previous day's trading, closed 143.21 at 13,871.71 on emergence of selling by funds in heavy-weight blue-chip stocks.

The second wide-based National Stock Exchange index Nifty also lost 35.25 points at 3988.80, after remaining in positive zone at the outset.
 
Make or break week for the Sensex

Make or break week for the Sensex

In the last weekly update, we had indicated that the new breakout point was at Sensex 14100. It will continue to remain at 14100 after last week’s movement. Last week, the Sensex opened at 13827.77, attained a high at 14060.35 and fell to a low of 13794.44 before it closed the week at 13860.52 and thereby showed a net rise of 56 points on a week to week basis.

The weekly trend is up after the weekly close on 29/12/06 at 13786. The weekly trend can turn down on fall below 13490 or if the Friday weekly close is below 13683.

Resistance continues to be at 13900-14100. In case of breakout and close above 14100, the Sensex can move towards 14797 at least. Till the resistance is not crossed and we do not see a closing above 14100, we cannot set the trading target of 14797. Further positive movement on the Sensex depends on the breakout and close above 14100.

On the daily chart on 04/01/07, we have an Engulfing Bear/Evening Star pattern which has bearish effect. On the weekly chart, we have Stalled Pattern, which again highlights that further bullish moves on the Sensex are possible only on breakout and close above 14100.

As a result of these formations, we could see a minor correction to test the lower weekly support levels. Weekly support levels are at 13751 and 13488. Support levels are likely to be tested if we do not see a breakout and close above 14100 in the first half of the week. If the weekly close is above 14100, then it would be an ideal situation for the bulls and the bears would run for cover.

If the weakness persists, then we will have to take the retracement of the rise from 12801 to 14060. The retracement levels of the rise from 12801 to 14060 are placed at 13580-13431-13283.

If the Sensex does not cross 14100, then we are leaving the doors open for correction to 13580-13431-13283. The Sensex will test either of these retracement levels and would then make an attempt to cross14100 if it fails to do so immediately.

Next week, we will take the review an Elliot Wave counts after the movement for the week to come.

Index stocks can get aggressive once again only on breakout and close above 14100. Till then, use spurts to sort portfolios thereby keeping room for stocks, which give fresh breakouts after a prolonged consolidation.

Broad market indices are doing well for the last couple of weeks. BSE Small-Cap Index has comprehensively crossed and closed above the 0.618 level of the fall from 7872 to 4480, which was placed at 6578. For the last two weeks, we are maintaining above 6578 on BSE Small-Cap Index. Expect the BSE Small-Cap Index to move near the top of 7872 or to test it in days to come.

The BSE Mid-Cap Index is very near to its top of 6070 as its high last week was 5994. Expect resistance at the higher level of 5994-6070. If BSE Mid-Cap index crosses and closes above 6070, then expect a strong rally in Mid-Cap stocks.

The BSE Small-Cap Index has outperformed BSE Mid-Cap index and BSE Sensex in the last 2 weeks. The BSE Mid-Cap index has outperformed the BSE Sensex in the last 2 weeks. This means that the broad market participation has increased and has outperformed the frontliners. If broad market stocks and indices have to outperform the frontlines, it is equally important for the Sensex to close and maintain above 14100 even if the speed on the Sensex is slow.

We could see the Sensex correcting or consolidating in the wider band of 14100 to the retracement level of 13580-13431 range before making further head way in the mean time broad market stocks and indices could do the catching up act.

We also need to be cautious before the breakout and close above Sensex 14100 because we have a taboo that when the overall market is likely to fall or give a big correction, the last movers are broad market Small-Cap stocks. Therefore, we may see the current week as a make or break for the Sensex. If the Sensex gives a breakout, then not only will index stocks rally but also the broad market stock can rally much more than the frontline stocks. But the trigger has to come from the Sensex for the continuation of the rally whether in the frontline or broad market stocks.

Strategy for the week

Book profits and exit long positions selectively at higher levels. Resistance will be at 13900-14100. Remain in stocks, which are within 15% of their respective 52-weeks high and stocks that are about to breakout even in this market condition after prolonged consolidation.

In the event of a breakout and weekly close above 14100, the bandwagon rally would continue. But before that can happen, the market will give an opportunity to decide and sort your portfolio. Spot and decide where to be and where not to be. Buy index related stocks on breakout and close above 14100. Selectively buy Mid-Cap outperforming stocks on BSE Mid-Cap breakout and close above 6070.:tea:
 
Weekly Wrap Up: Sensex gains 73.61 pts this week

Weekly Wrap Up: Sensex gains 73.61 pts this week

Source: IRIS (06 January 2007)
The BSE Sensex gained 73.61 points during the week. Tuesday and Wednesday saw strong buying interest in auto and IT stocks which led the index up whereas markets on Thursday and Friday saw volatility and profit booking.

On Monday, Jan.1 , the market remained closed on the occasion of Bakri-Id.

The BSE Sensex closed higher by 13,942.24, up 155.33 points on Tuesday. The benchmark index, Sensex opened at 13,827.77 and proceeded to trade strong throughout the day, followed by strong global ques. It touched a high of 13,980.54 in mid-noon trades and finally ended on a high note. Sustained buying was witnessed across the board. Auto, IT, cement and banking sectors led the advances.

Wednesday, the 30-share sensitive index opened positive at 13,969.45, but slipped into the negative in the morning trades. Further, the index bounced back to positive on the back of sustained buying interest in index heavyweights. Finally, it ended on a firm note by touching a high of 14,035.67. Major support came from the sectors like auto, IT and pharma whereas banking stocks lost ground. The Sensex gained 72.68 points to end the session at 14,014.92.

Thursday saw the market declining after opening on a firm note. It ended on a weak note by touching a low of 13,850.38. Select stocks from IT, cement and auto lost ground. The 30-share index closed lower by 143.21 points at 13,871.71.

Friday, the last trading day saw the index encountering yet another depressing note. It opened negative at 13,768.79 and then traded flat in the morning trades. Afterwards, it gained strength due to sustained buying interest in frontline stocks. However, during the final hour, the index witnessed volatile movements and ended on a flat note. Telecom, auto, cement and pharma sectors lost ground, whereas the banking sector gained ground. The BSE Sensex ended the session at 13,860.52, down 11.19 points.

From the corporate front

Oil & Natural Gas Corporation (ONGC) has signed an agreement with Gujarat State Petroleum Corporation (GSPCL) for the sale of natural gas from its Olpad field in Ankleshwar. The stock moved up 2.98% in the week.

Engineering gaint Bharat Heavy Electricals (BHEL) has announced an investment of Rs 32 billion in the 11th Plan to expand its annual equipment manufacturing capacity to 15,000 MW.

Ranbaxy Laboratories may fetch Rs 450 million in the US market by selling atenolol, a drug for treating hypertension. The company received approval from the US regulator to market the drug as tablets in 25 mg, 50 mg and 100 mg doses. There are already 8-10 players in the US market for this drug, including generics majors Teva and Sandoz. Ranbaxy rose 5.51% during the week.

Reliance Industries (RIL) has tied up with GAIL (India). The two companies are planning to undertake projects such as gas pipeline infrastructure, gas marketing, exploration and production (E&P) in shallow, deepwater and coal bed methane (CBM) blocks.

Listings this week

Hyderabad based Tanla Solutions got listed on both the exchanges today with significant gains. The shares of the company opened today at a premium of Rs 112.4, or 42.41%, at Rs 377.40 at NSE.

The follow-on issue received an astonishing response from the investors as the issue has been over-subscribed by 38.65 times, as per the NSE data. The follow-on issue received a total of 552.55 million bids as against the issue size of 14.3 million equity shares of Rs 2 each. The shares were issued at Rs 265 a share.

Pyramid Saimira Theatre got listed on Friday after receiving a good response to its IPO on both the exchanges with significant gains. The shares of the company opened at a premium of Rs 35, or 35%, at Rs 135 at BSE.

Pyramid Saimira Theatre, India`s largest theatre chain, has received a good response from the investors for its initial public offering (IPO) as the issue has been over-subscribed by 16.26 times, as per the NSE website. The IPO has received bids for a total of 137.17 million equity shares against the issue size of 8.43 million equity shares of Rs 10 each. The company has issued shares at Rs 100 a share.:tea:
 
Sensex sheds 208 points at close

Sensex sheds 208 points at close


The markets ended in deep red on account of selling seen in index pivotals. Heavy selling was seen in scrips from IT, FMCG, metal and auto sector.

The Sensex closed down 208.37 points or 1.50% at 13652.15, and the Nifty ended down 50.00 points or 1.26% at 3933.4.

About 1698 shares have advanced, 936 shares declined, and 44 shares are unchanged.

The BSE Small Cap Index closed at 7,250.64 up 59 points down 0.8%.

The BSE Midcap Index ended at 5,912.01 down 25 points or 0.4%.

The BSE FMCG Index lost 1.4% at 1,849.06. Nestle, Colgate, Shaw Wallace, United Spirits, ITC closed in red.

The BSE Metal Index was down 1.8% to close at 8,814.53. Sesa Goa, Guj NRE Coke, Hindalco, Sterlite Ind, Hind Zinc were among the losers.

The BSE Bankex was down 1% at 7,082.90. SBI, HDFC Bank, Karnataka Bank, IOB, Bank of India moved downwards.

The BSE Health Care Index was down 0.6% at 3,827.78. Nicholas Pirama, Lupin, Cipla, Matrix Lab, Biocon closed lower.

The BSE Capital Goods Index was down 0.7% at 9,099.06. Gammon India, Siemens, Ingersoll Rand, Crompton Greave, Bharat Elec ended lower.

The BSE Auto Index closed at 5,526.72 down 1.2%. SBI, HDFC Bank, Karnataka Bank, IOB, Bank of India, UTI Bank were among the losers.

The BSE IT Index closed at 5,204.88 down 2.6%. Mphasis, Moser Baer, Wipro, Infosys, Satyam ended weak.

The BSE Oil and Gas Index closed at 6,319.82 down 0.3%. HPCL, IOC, Reliance Natura, MRPL, Reliance ended in red.

The NSE cash turnover was at Rs 7610 crore and the NSE F&O turnover was at Rs 25210 crore. The BSE cash turnover was Rs 3720.71 crore. Total market wide turnover was at Rs 36540.71 crore.
 
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