Tuesday, October 2, 2007

Market pares gain in volatile late trade

 Market came sharply off higher level in late trade after it had struck lifetime high in late afternoon trade. A sharp fall in Reliance Industries (RIL) pulled the market off higher level in late trade.
 
Mid-cap and small-cap indices touched all-time highs today. Market breadth was strong. European markets recovered from early slide. Asian markets were firm today.
 
Market had extended gains to hit fresh all-time high in late afternoon trade.The market had come off from lower level in the early afternoon trade. The market earlier had weakened in mid-morning trade to touch a low of 17,144.58 on a volatile day of trade.
 
The 30-shares BSE Sensex provisionally ended up 11.29 points or 0.07% at 17,302.39. It had hit a fresh all-time high of 17,425.34 in late afternoon trade. It hit a low of 17,144.58 during the day.
 
The S&P CNX Nifty provisionally ended up 39.9 points or 0.79% at 5,061.25. It hit an all-time high of 5089.30 today.
 
The BSE Mid-cap index rose 97.12 points or 1.31% to 7,519.55. It hit a all-time high of 7554.54 today. The BSE Small-cap index rose 107.05 points or 0.84% to 9,176.45. It hit an all time high of 9,218.52 today.
 
In opening trade, the market had come off higher level soon after a firm start as political concerns took centrestage wth CPI (M) veteran Jyoti Basu on Saturday, 29 September 2007, ruling out the possibility of any compromise on the issue of Left's opposition to the Indo-US nuclear deal. The market had opened a firm note after tame US inflation data reinforced expectations of another cut in US interest rates.
 
While the operationalisation of the nuclear deal has been put on hold by the government pending the findings of a committee, it cannot be stalled forever.
 
The Communists want the government to defer the Indo-US nuclear accord by six months and have warned of a political crisis if it is implemented. The committee set up of the government to look into Left Front's concerns over the deal is scheduled to hold its next meeting on 5 October 2007.
 
On the flip side, political turmoil arising from nuke deal will not impact India's basic economic fundamentals though some infrastructure projects may get delayed. India's economy is expected to post strong growth for a long period of time mainly due to favourable demographics.
 
BSE clocked a turnover of Rs 7197 crore compared to Friday (28 September 2007)'s Rs 7,951.21 crore.
 
Out of the 30 share Sensex stocks, 12 advanced and the rest declined.
 
Market breadth was strong on BSE: 1581 scrips advanced, 1156 declined while 337 scrips remained unchanged.
 
India's largest private sector company by market capitalisation and oil refiner, Reliance Industries (RIL) was down 0.62% to Rs 2,282. The stock was volatile today. It moved between a low of Rs 2264.25 and high of 2327.80.
 
Reliance Retail, a subsidiary of the Mukesh Ambani-promoted Reliance Industries, has reportedly, sacked 400 staff in West Bengal due to its inability to start operations following stiff opposition from political parties and local traders. RIL had earlier laid off 1000 staff in Uttar Pradesh.
 
Reliance Energy (REL) galloped 11.82% to Rs 1,348. It struck an all time high of Rs 1,385 today. It was the top gainer from the Sensex pack. Reliance Power, the Anil Ambani group firm, in which REL holds 50% stake, will raise $2-$2.5 billion in the country's largest power sector IPO. Reliance Power, which is implementing a clutch of large power generation projects across the country, will sell 10-15% to the public and institutions in the coming months to fund various projects.
 
State-run power producer NTPC rose 6.49% to Rs 206 on hopes of higher valuation after Reliance Energy's proposed initial public offering of its subsidiary Reliance Power. It touched an all-time high of Rs 207.90 today.
 
ONGC rose 4.09% to Rs 997.10. It hit an all time high of Rs 1,015 today.
 
Reliance Communication (up 3.98% to Rs 608.95) was another major gainers from the Sensex pack.
 
State Bank of India (down 2.93% to Rs 1,893.50) was the top loser amongst the Sensex pack. ITC (down 1.98% to Rs 185.95,Bajaj Auto (down 2.19% to Rs 2,484.10), BHEL (down 2.1% to Rs 1,990.05) and, HDFC Bank (down 2.44% to Rs 1,404) were the major losers amongst the Sensex pack.
 
Among the sectoral indices Bankex was the top most loser.
 
Among side counters, Binani Industries (up 20% to Rs 270), Spentex Industries (up 20% to Rs 34.50), Hatsun Agro Products (up 20% to Rs 259.55), Brady & Morris (up 20% to Rs 229.40) and SPL Polymers (up 20% to Rs 7.56) spurted.
 
Reliance Capital rose 13.17% to Rs 1,793.10 on BSE, on continued buying interest.
 
Asian markets extended their recent rally on Monday, 1 October 2007. South Korea's Seoul Composite (up 0.83% at 1,962.67, Singapore's Straits Times (up 1.32% at 3,755.22) and Taiwan's Taiwan Weighted (up 0.13% to 9,488.50) and Japan's Nikkei (up 0.36% at 16,845.96 after it opened on a weak note) edged higher.
 
European markets which opened after the Indian markets recovered from early slide today. Germany's DAX (up 0.08% to 7,868.39), UK's FTSE 100 (up 0.35% to 6,489.80) and France's CAC (up 0.05% to 5,718) edged higher.
 
US stocks and bonds slipped as the dollar fell to a record low on Friday, 28 September 2007, amid concerns that US economic growth would continue to slow. The Dow Jones industrial average lost 17.31 points, or 0.12%, at 13,895.63. The Standard & Poor's 500 Index fell 4.63 points, or 0.30%, at 1,526.75. The Nasdaq Composite Index fell 8.09 points, or 0.3%, to 2,701.50.
 
US crude for November 2007 delivery lost $1.23 to settled at $81.65 a barrel on Friday, 28 September 2007, below its all-time high of $83.90.
 
From a recent low of 13,989.11 on 21 August 2007, Sensex surged 3,301.99 points or 23.60% in 28 trading sessions to 17,291.10 on 28 September 2007. FII buying boosted the bourses in this period.

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