The market settled with small gains on selective buying in index pivotals. It opened higher as investors bet on another cut in interest rate by the US Federal Reserve next month after US data showed sluggish housing sales and consumer confidence. The market pared gains on profit booking at higher levels in volatile trade.
Asian and European markets were trading firm today while US markets settled mixed overnight. IT, banking and refinery stocks surged whereas realty and oil & gas stocks witnessed selling pressure. Reliance group shares which had surged recently, eased on profit booking.
The 30-shares BSE Sensex was up 21.85 points or 0.13% at 16,921.39, an all time closing high. It opened higher at 16,969.45. It hit low of 16,887.07. It advanced to hit an all-time high of 17,073.87 today. At day's high of 17,073.87, Sensex had gained 174.33 points for the day. At the day's low of 16,887.07, it lost 34.32 points for the day. Sensex oscillated 186.80 points between day's low of 16,887.07 and high of 17,073.87.
It took just 5 trading sessions for the Sensex to reach 17,000 from 16,000 after the barometer index first struck 16,000 on 19 September 2007. The Sensex's 1,000-point surge was the fastest ever. The previous record for the shortest 1,000-point journey was 19 days when the Sensex soared from 11,000 to 12,000 in March 2006.
From a recent low of 13,989.11 on 21 August 2007, Sensex has surged 2932.28 points or 20.96% in just 26 trading sessions to current 16,921.39
The S&P CNX Nifty was up 1.65 points or 0.03% at 4,940.50, an all time closing high. It struck an all time high of 4980.85 today. Nifty September 2007 futures settled at 4955, a premium of 14.50 points as compared to spot closing
The market breadth was strong on BSE with 1485 shares advancing as compared to 1244 that declined. 60 remained unchanged
The BSE Mid-Cap index rose 0.54% to 7,352.62. It struck an all time high of 7,428.89 in intra-day trade. The BSE Small-Cap index hit all time high of 9,112.06. It settled up 0.69% to 9,029.34 Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 7,786 crore as compared to Rs 7,491.05 crore on Tuesday, 25 September 2007.
The NSE's F&O turnover was Rs 78,536.17 crore as compared to Rs 83,677.53 crore on Tuesday, 25 September 2007.
Sectoral indices on BSE displayed mixed trend. BSE PSU index (up 1.01% to 8,055.51), BSE TecK index (up 1.89% to 3,720.46), BSE IT Index (up 3.53% at 4,501.97), outperformed the Sensex.
However BSE Capital Goods Index (down 0.74% at 14,654.35), BSE Consumer Durables index (down 0.37% to 4,745.45), BSE Health Care Index (up 0.10% at 3,691.36), BSE Metal Index (up 0.04% at 13,085.64), BSE Oil and Gas Index (down 1.64% at 9,616.94), BSE Realty index (down 1.23% to 8,973.38), BSE Auto Index (down 0.67% at 5,215.27), and BSE FMCG Index (down 0.88% at 2,137.42) were underperformers.
Among the 30-member Sensex pack, 16 advanced while the rest declined.
Banking and financial shares were in strong demand speculating that Reserve Bank of India may lower interest rates in the next monetary policy review on 31 October 2007.
India's largest private sector bank in terms of net profit ICICI Bank was up 3.85% to Rs 1028.20. It hit record high of Rs 1032.80 today.
State Bank of India, the country's largest bank in terms of net profit rose 0.60% to Rs 1850, off its day's record high of Rs 1876.90 today.
India's largest private sector mortgage financer in terms of market share Housing Development Corporation (HDFC) surged 3.51% to Rs 2478.50. It hit an all time time high of Rs 2538.
Other banking stocks – Allahabad Bank (up 2.77% to Rs 102), Canara Bank (up 0.95% to Rs 272), Indian Overseas Bank (up 5% to Rs 145), Kotak Mahindra Bank (up 4.40% to Rs 922.10), and Vijaya Bank (up 5.71% to Rs 68.50), surged
The Reserve Bank of India may lower interest rates in the next monetary policy review on 31 October 2007 particularly with India's inflation down to a five-year low of 3.37% in the first week of September 2007.
Marketmen opine that RBI may take cues from Fed which reduced its key rate for the first time since 2003 by a bigger-than-expected 0.5% to 4.75% on 18 September 2007. The RBI, which has raised borrowing costs nine times since October 2004 to curb inflation, left its overnight lending rate unchanged at 7.75% at its last meeting on 31 July 2007.
IT pivotals advanced after the Reserve Bank of India relaxed the norms for outbound investments by mutual funds and raised the limit for companies to prepay their external loans.
India's fourth largest software services exporter Satyam Computers was the top gainer from Sensex pack. It soared 5.05% to Rs 432.30 on 7.31 lakh shares.
Other IT pivotals Infosys (up 3.10% to Rs 1826), and TCS (up 4.48% to Rs 1047), also gained
Wipro, the nation's third largest software services exporter jumped 4.76% to Rs 456.50 on reports that it has bagged a five-year, $130 million contract from British utility Thames Water. As per the agreement, Wipro will provide integrated IT services encompassing applications support, maintenance and infrastructure management services.
The relaxed norms are aimed at checking the appreciating trend in rupee, which has pierced the Rs 40 to a dollar mark to touch a nine-year high against the US greenback.
As per the liberalised norms, companies can now prepay up to $500 million of their external commercial borrowings (ECBs) without RBI approval as against the earlier limit of $400 million, the central bank said in a statement on Tuesday, 25 September 2007.
Tata Steel, the world's sixth largest steel maker in terms of steel production rose 1.19% to Rs 752.55. Foreign brokerage Credit Suisse has cut the rating on the stock to 'neutral' from 'overweight'.
India's second largest pharma company in terms of net sales Dr Reddy's Laboratories was up 0.70% to Rs 639.90. As per reports, Swiss drugmaker Roche Holding AG is taking legal action in the United States against Dr. Reddy's Laboratories to stop it selling a generic version of Roche's osteoporosis drug Boniva. Roche's Boniva which is sold as Bonviva in Europe, is covered by patents running from 2012 to 2023.
Reliance Industries (RIL) slipped sharply from day's high of Rs 2425.90 and settled 3.08% to Rs 2325.75 on 11.63 lakh shares. Reliance Retail, a subsidiary of RIL is likely to hand out termination letters to 1,000-odd employees of Reliance Fresh stores in Uttar Pradesh (UP) in the course of this week as it prepares to formally exit the state. As per reports, it will also close down 20 Reliance Fresh stores in Noida and Ghaziabad.
India's second largest cellular services provider by market capitalisation Reliance Communications (RCom) slipped 0.90% to Rs 589. As per reports Flag Telecom, the undersea cable arm of RCom has initiated talks with Google for selling part of its capacity on a new cable it is laying between the United States west coast and Far East. The deal seal is speculated to be worth $60-70 million.
Reliance Energy, the country's second largest power utility company in terms of sales was the top loser from the Sensex pack. It slumped 5.28% to Rs 1030 on 10.96 lakh shares.
Other Reliance Group shares Reliance Natural Resources (down 3.32% to Rs 91.70), IPCL (down 1.91% to Rs 462.90), Reliance Capital (down 2.71% to Rs 1505.30), and Reliance Petroleum (down 2.66% to Rs 155.25), also eased on profit booking after their recent surge
HDFC Bank (down 1.62% to Rs 1375), Maruti Suzuki India (down 2.64% to Rs 965) and NTPC (down 2.23% to Rs 191) were the other losers from Sensex pack.
Praj Industries was the top traded counter on BSE with turnover of Rs 389.86 crore followed by Reliance Industries (Rs 273.29 crore), Tata Teleservices (Maharashtra) (Rs 233.24 crore), Indiabulls Real Estate (Rs 227.94 crore) and Reliance Natural Resources (Rs 212.98 crore), in that order.
Tata Teleservices (Maharashtra) topped volumes on BSE. 5.09 crore shares were traded in the counter. Himachal Futuristic Communications (3.24 crore shares), Ispat Industries (2.22 crore shares) and Reliance Natural Rsources (2.15 crore shares) were the other volume toppers in that order.
Refinery shares surged on reports the government is likely to issue oil bonds worth Rs 12,000 crore to state-run oil companies to partially compensate them for selling fuel at below the cost, by mid-October 2007. Hindustan Petroleum Corporation (up 4.45% to Rs 277), Indian Oil Corporation (up 7.75% to Rs 470), and Bharat Petroleum Corporation (up 5.87% to Rs 368.95) surged.
The government has not allowed refining companies to raise fuel prices in line with cost and instead would compensate them partially through oil bonds. The petroleum and finance ministries are likely to converge on the quantum of loss in about the next 10 days and the government in likely to issue oil bonds by 15 October 2007.
Praj Industries slipped 4.05% to Rs 238.20 on huge volumes of 1.53 crore shares on BSE. Two block deals of 67.28 lakh shares each were executed on the counter on BSE in early trade at average price of Rs 252.50 per share.
Kojam Fininvest rose 2.37% to Rs 266 ahead of the scheme of amalgamation of the company with unlisted Gujarat Glass. Gujarat Glass (GGL) has fixed 6 October 2007 as the record date for the purpose of amalgamating Kojam Finvest (KFL) with itself.
Indiabulls Real Estate gained 7.07% to Rs 613.71 on its plans to raise Rs 2322 crore through issue of convertible warrants to promoters and directors at Rs 540 each. Reportedly, the company plans to invest in power and wholesale businesses. The group would also apply for telecom licences as per one of the reports.
Glenmark Pharmaceuticals declined 1.44% to Rs 394.50 even after it announced today, 26 September 2007, that it has received approval for its semi solids unit from medicines and healthcare products regulatory agency of UK.
GMR Infrastructures (down 4.18% to Rs 826.90) and IFCI (down 3.64% to Rs 98), declined after National Stock Exchange (NSE) barred further F&O positions in 95% of marketwide limit was reached on Tuesday, 26 September 2007.
SRF gained 1.40% to Rs 145.30. As per reports it plans to set up a new polyester industrial yarn spinning unit with an annual capacity of 14,500 tonnes at its existing Gumminipoondi plant in Tamil Nadu. The new project would involve fresh investment of approximately Rs 250 crore. The company has also entered into a technological tie-up with Japan-based TORAY for the new plant.
Elecon Engineering Company advanced 1.52% to Rs 690 after it fixed 11 October 2007 as the record date for the purpose of issue of 2:1 (2 bonus shares for every 1 held) bonus shares.
Accentia Technologies slipped 1.54% at Rs 208.25. It secured an order worth $3.5 million from its UK clients for business process outsourcing services. The order specifications include health care receivables management services, which comprises of complete cycle of documentation/ transcription, coding, billing and insurance claims.
ABB declined 1.20% to Rs 1308 even after it secured a contract worth Rs 93.3 crore for turnkey electrics and automation solution from KHD Humboldt Wedag Gmbh, Germany. The project will be completed by mid 2009.
GAIL (India) surged 3.16% to Rs 375 on reports that the company is considering bonus and or stock split of equity shares before its next annual general meeting. Meanwhile, reports also suggest that company plans to spend Rs 30,000 crore in next 5 years and also plans to set up a petrochemical plant overseas.
B.A.G Films & Media vaulted 5% at Rs 68.40 after its board approved issuing 1.03 crore shares to a unit of Fidelity at an undisclosed price.
European markets, which started after Indian market were trading higher. Key benchmark indices in London (up 0.93% to 6,456.90), Germany (up 0.50% to 7,808.05) and France (up 0.80% to 5,686.72) edged higher.
Asian markets, which opened before Indian market advanced today, 27 September 2007. Japan's Nikkei (up 0.21% to 16,435.70), Taiwan Weighted (up 1.67% at 9,257.47) and Singapore's Straits Times (up 0.70% at 3,650.69) rose.
The Hong Kong stock market was closed today, 26 September 2007
Market may see volatility ahead of the expiry of September 2007 futures & options (F&O) contracts on Thursday, 27 September 2007.
US markets ended mixed yesterday, 25 September 2007 as investors grappled with concerns about consumer spending in some parts of the economy while technology stocks showed broad gains. The Dow Jones industrial average rose 19.59 points, or 0.14%, to 13,778.65. Broader stock indicators were mixed. The Standard & Poor's 500 slipped 0.52 points, or 0.03%, to 1,517.21, while the Nasdaq Composite rose 15.50 points, or 0.58%, to 2,683.45.
Crude oil prices rose on Wednesday, 26 September 2007 after three days of losses, with traders looking toward data expected to show a further decline in U.S. crude stocks. US crude for November delivery edged up 22 cents to $79.75 a barrel while London Brent crude gained 22 cents to $77.84 a barrel.
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