Sensex regains 19K level; ends with a new high

The benchmark Sensex regained 19,000 points level on the Bombay Stock Exchange on Friday on aggressive buying by funds, discounting the market regulator's move yesterday's to restrict foreign funds inflow, and closed at a new peak of over 19,243 points.

The Sensex, which had plummeted in past few sessions from record 19,000 points level, bounced back by 472.28 points to 19,243.17, another record peak set in today's trade, surpassing the previous closing record set on October 15.

It touched the day's high of 19,276.45 and a low of 18,629.53 points.

Similarly, the wide-based National Stock Exchange index shot up by 133.35 points at 5702.30, after touching a high of 5716.90 and a low of 5513.35 points.

Marketmen said the trading activity picked up in later half of the day after the Finance Minister P Chidambaram said moves to restrict foreign investment in stocks yesterday were aimed at slowing capital flows from overseas that have caused a spurt in shares and the currency.

Capital goods stocks were the star performers as the segment index gained 1226.02 points at 18,540.15 followed by Bank segment index by 349.42 points at 10273.53.

Sensex storms past 19K as capital goods rally

Continuing on a cautious note, the market witnessed another round of selling as the Sensex lost over 141 points form the previous day's close to touch the intra-day low of 18630. However, the market recovered thereafter as brisk buying in front-line shares pushed the benchmark index to an all-time high of 19,275. Capital goods stocks led the rally after sector heavyweight Larsen and Toubro posted a whopping 73% rise in net profit from the previous quarter. Stocks also rallied as the Securities and Exchange Board of India had dispelled confusion on curbs on P-notes yesterday. The Sensex finally closed near its all-time high with a gain of 472 points at 19243, while the Nifty ended the session by adding 133 point at 5702.

The market breadth was positive. Of the 2,833 stocks traded on the BSE, 1,737 stocks advanced, 1,028 stocks declined and 68 stocks ended unchanged. Among the sectoral indices, the BSE CG Index was the major gainer and rose 7.08% followed by the BSE PSU Index that added 3.93% and the BSE Bankex Index that gained 3.52%. However, the BSE FMCG Index shed 0.28%.

Among the major gainers, L&T jumped 12.40% at Rs3,885, SBI added 7.53% at Rs2,091, BHEL shot up by 6.35% at Rs2,435, ONGC flared up 4.12% at Rs1,160, M&M moved up 3.82% at Rs802, ICICI Bank advanced 3.81% at Rs1,190, Satyam Computer scaled up 3.68% at Rs477 and Reliance Industries surged 2.42% at Rs2,692. However, Bharti Airtel dropped 2.66% at Rs993, ITC slipped 1.42% at Rs180, HLL fell 1.34% at Rs218 and Ranbaxy shed 1.15% at Rs425.

Capital goods stocks were in the limelight today. Laxmi Machine Works flared up 14.98% to Rs3,171, Crompton Greaves rose 7.44% at Rs420 and Kalpataru Power scaled up 6.81% at Rs1,795.

Over 2.75 crore Reliance Natural Resources shares changed hands on the BSE followed by Himachal Futuristic Communication (2.05 crore shares), Reliance Petroleum (2.03 crore shares), Tata Teleservices (1.57 crore shares) and Power Grid Corporation (1.46 crore shares).

Value-wise L&T clocked a turnover of Rs433 crore followed by Reliance Petroleum (Rs404 crore), Reliance Industries (Rs363 crore), Reliance Natural Resources (Rs272 crore) and Reliance Energy (Rs265 crore).

FII inflow, RBI policy review outcome to dictate trend

Trend in inflow from foreign funds will dictate the near term trend on the bourses. The market on Friday, 26 October 2007, shrugged off Securities & Exchange Board of India (Sebi) directive on restriction of participatory notes (PNs) that came into effect from 26 October 2007. Sebi has banned fresh issuance of PNs with derivatives as underlying and it has also ordered winding up such PNs in 18 months, besides putting curbs on such issue of PNs in the spot market.

According to Citigroup, given the limited headroom available due to the 40% limit on issue of PNs, return to 'regulated' entities rule, and the time it might take for the entities to get FII registration, the new Sebi norms may significantly reduce near term foreign flows. Sebi has proposed an incremental rate of 5% for issue of PNs for FIIs with less than 40%t of assets under custody (AUC) in PNs. Those with over 40% of assets in PNs can issue PNs only against redemptions or cancellations.

Kotak Institutional Equities, in a note, states that it does not expect any major impact of the new policy on the market and it is of the opinion that the market has largely absorbed the changes in PN norms. 'We rule out any major selling in the market and expect a smooth transition to the new regime', it has said in a note to clients adding that while Sebi has banned sub-accounts of FIIs from issuing further PNs, PN issuing sub-accounts FIIs have already started the process of conversion to FIIs. There is no ban on issue of PNs by FIIs though restrictions have been put in place for them. There is a ban of fresh issue of PNs with derivatives as underlying.

Providing a major relief over the issue, Sebi on Monday, 23 October 2007, said sub-accounts which intend to covert into foreign institutional investor status have to sent their letter of intent to the regulator within 24-hours. Sebi later said that all the 20 PN issuing FII sub-accounts have expressed intent to convert into foreign institutional investor (FII) status. There are 34 PN issuing entities in the country, of which some are already FIIs. This number was 14 in March 2004.

FIIs can now issue PNs only to foreign entities which are 'regulated' in their respective jurisdiction and not to those that are merely 'registered' in the jurisdiction as was the norm earlier. This will mean that some hedge funds that are not regulated in their home country will find it difficult to invest in the Indian market. Users of PNs are largely hedge funds, a fast-growing asset class globally in recent years. Nevertheless, such hedge funds can apply for direct registration with Sebi.

Sebi says PNs allow foreigners to make a backdoor entry into the market, and it wants them to register to create greater transparency on inflows. PNs are financial instruments used by foreign investors that are not registered with Sebi, to invest in Indian shares. FIIs and their sub-accounts buy Indian securities and then issue PNs to foreign investors with these securities as the underlying.

Besides some key Q2 September 2007 results, the major events next week are Mid-Term Review of Annual Policy by the Reserve Bank of India on Tuesday, 30 October 2007, and policy meeting of the US Federal Reserve on 31 October 2007. Bank of Japan also holds its policy meeting on 31 October 2007.

Market men see no change in interest rates by RBI in Mid-Term Review of Annual Policy on Tuesday. It remains to be seen whether RBI raises cash reserve ratio so as to suck out excess liquidity in the banking system.

There are hopes that the US Federal Reserve will cut interest rates again at its policy meet on 31 October 2007, given the recent weak US economic data. A further cut in interest rate by Fed, if any, will only add to global liquidity which already remains high. This in turn will ensure that FII inflow in India will continue even as their buying vigour may not be as strong as was recently due to Sebi restrictions on PNs.

Key Q2 September 2007 results next week Maruti Suzuki, Bharat Heavy Electricals, HDFC and Mahindra & Mahindra on Monday, 29 October 2007, ONGC, Steel Authority of India, Tata Power, DLF on Tuesday, 30 October 2007, and Tata Motors on Wednesday, 31 October 2007. On Saturday, 27 October 2007, NTPC, Grasim, State Bank of India will unveil Q2 results.

Sensex vaults 1,683 points

A partial breather provided by Securities & Exchange Board of India at the onset of the week with respect to participatory notes boosted the bourses. Expectation of a further cut in interest rate by the US Federal Reserve also aided rally on the domestic bourses last week. The Sensex gained on all the five trading sessions in the week. Securities & Exchange Board of India, on Thursday, 25 October 2007, put restrictions on issue of participatory notes (PN) and directed some exiting PN positions to be wound up within 18 months.

The BSE Sensex rose 1,683.19 points or 9.59% to 19,243.17 in the week ended Friday, 26 October 2007. The S&P CNX Nifty surged 487 points or 9.33% to 5,702.30 in the week.

THE BSE Mid Cap index rose 682.08 points or 9.42% to 7,920.66 and BSE Small Cap index rose 750.63 points or 8.53% to 9,550.95 in the week. Both these indices underperformed Sensex.

BSE Auto index (up 6.04% to 5,616.97), BSE IT (down 1.07% to 4,635.58) and BSE (Oil &Gas) (up 8.41% to 11,103.46) underperformed Sensex.

BSE Bankex (up 16.25% to 10,273.53), BSE Capital Goods index (up 20.16% to 18,540.15), BSE Metal (up 15.64% to 16,744.56), BSE Realty (up 10.68% to 10,020.75) outperformed Sensex.

The BSE Sensex rose 54.01 points or 0.31% to 17,613.99 on Monday, 22 October 2007. The market bounced back after an initial slump caused by worries about the US economic outlook. But while the BSE Sensex managed to post gains, the S&P CNX Nifty settled with losses. Volatility was high due to alternate bouts of buying and selling. European and Asian markets were trading lower on worries about the US economic outlook.

The BSE Sensex posted its biggest ever single day point gain of 878.85 points or 4.99% at 18,492.84 on Tuesday, 23 October 2007. The market spurted after the market regulator Securities Exchange Board of India, after trading hours on Monday, 22 October 2007, provided partial breather to FIIs with respect to proposed restrictions on use of participatory notes and said it would speed up regulatory clearance for foreigners keen to invest transparently.

Sebi on Monday, 23 October 2007, said sub-accounts which intend to covert into foreign institutional investor status have to sent their letter of intent to the regulator within 24-hours. Sebi later said that all the 20 PN issuing FII sub-accounts have expressed intent to convert into foreign institutional investor (FII) status. There are 34 PN issuing entities in the country, of which some are already FIIs. This number was 14 in March 2004.

The BSE Sensex closed higher by 20.07 points, or 0.11% to 18,512.91 on Wednesday, 24 October 2007. The Sensex posted gains as investors flocked to blue-chip shares, inspired by robust set of results posted by them for the quarter ended September 2007. All this came on the back of volatility, which remained high ahead of the expiry of October 2007 derivatives contracts on Thursday, 25 October 2007.

The BSE Sensex gained 257.98 points or 1.39% at 18,770.89 on Thursday, 25 October 2007. The market settled on a firm note on buying in index pivotals. However, trade was choppy towards the fag end of the day ahead of expiry of October 2007 derivatives contracts and ahead of Securities Exchange Board of India (Sebi)'s board meeting to take a decision on recently announced proposals to curb forein inflows through the route of participatory notes. European markets and Asian markets were trading with gains.

The Sensex surged 472.28 points or 2.52% at 19,243.17, an all-time closing high on Friday, 26 October 2007. The market surged on renewed buying interest in index pivotals following healthy rollover of derivative positions from October 2007 to November 2007 on Thursday, 25 October 2007. Global cues were mixed. The market shrugged off concerns arising from possible FII sales after market regulator Securities & Exchange Board of India put restrictions on issue of participatory notes (PN) after trading hours on Thursday, 25 October 2007 and directed some exiting PN positions to be wound up within 18 months.

Securities and Exchange Board of India (Sebi), M Damodaran, chairman said on Thursday, 25 October 2007 that there was no change in the draft regulations announced by the regulator last week on participatory notes (PNs). The draft proposals announced on 16 October 2007, had put restrictions on use of PNs. Damodaran, said Sebi would review the position on the issue from time to time.

While announcing rules to curb issue of participatory notes (PNs) by FIIs, the market regulator Securities & Exchange Board of India (Sebi) on Thursday, 25 October 2007, announecd that PNs can now be issued only to foreign entities which are 'regulated' in their respective jurisdiction and not to those that are merely 'registered' in the jurisdiction as was the norm earlier. This will mean that many hedge funds that are not regulated in their home country will find it difficult to invest in the Indian market.

Finance minister P Chidambaram said on Friday,26 October 2007 the government wanted to moderate capital inflows without hurting growth of the country's economy. The minister's comments come a day after the market regulator, Securities & Exchange Board of India (Sebi), on Thursday, 25 October 2007, tightened investment rules for unregistered FIIs by clamping down on issuance of indirect investment instruments known as participatory notes (P-notes).

ICICI Bank, the country's largest private sector bank in terms of net profit rose 15.66% to Rs 1,184.45. Its net profit rose 32.7% to Rs 1002.60 crore on 41% growth in total income to Rs 9588.41 crore in Q2 September 2007 over Q2 September 2006. The results hit the market after trading hours on Friday, 19 October 2007.

India's largest oil exploration company in terms of market capitalisation Oil and Natural Gas Corporation rose 4.32% to Rs 1056. As per reports that its joint venture firm ONGC-Mittal Energy had acquired a 30% participating interest in an exploration block in Turkmenistan. The report did not disclose the deal value.

India's largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) rose 9.03% to Rs 2,692.25. As a part of a restructuring exercise, RIL has reportedly decided to hive off Reliance Fresh into a separate company, Ranger Farm, for single point accountability. Reliance Fresh sells food, fruits and vegetables and consumer products.

India's largest pharma company by sales, Ranbaxy Laboratories (RLL) gained 2.06% to Rs 425.15. Ranbaxy on 22 October 2007, that it has received approval in Canada to manufacture and market Ran-Lisinopril 5, 10 and 20 mili gram oral tablets from Health Canada, Therapeutic Products Directorate (TPD). Lisinopril is indicated for the treatment of hypertension.

India's fourth largest software services exporter Satyam Computer Services gained 3.16% to Rs 474.60. Its net profit rose 7.19% to Rs 417.15 crore on 10.75% rise in sales to Rs 1948.24 crore in Q2 September 2007 over Q1 June 2006. The company declared the results on 23 October 2007. The company revised upwards earnings as well revenue guidance for FY 2008 (year ending 31 March 2008), both in rupee terms and dollar terms.

Satyam Computer Services signed an agreement with Fujitsu Services to provide IT services to Reuters as part of a 10-year, $1 billion internal information systems transformation programme. It also announced that entering into a definitive agreement to acquire 100% stake in Nitor Global Solutions ("NITOR") of the UK, a niche consulting firm providing Infrastructure Management Services (IMS), for up to British pound (GBP) 2.76 million ($ 5.5 million) in cash.

Reliance Energy, the country's second largest power utility company by sales, rose 25.26% to Rs 1,670. The stock's rise follows chairman Anil Ambani's briefing to the media on 23 October 2007, that Reliance Power will be valued nearly two times its holding company, Reliance Energy, after the mega initial public offer.

India's leading bank by net profit State Bank of India jumped 24.97% to Rs 2,083.95. On 23 October 2007, SBI Life Insurance Company posted net profit of Rs 14.09 crore for the first half year ended 30 September 2007 with an 80% increase in its total premium collection. SBI Life Insurance has become the first private sector life insurance company to make profit. A 74:26 joint venture between the State Bank of India and Cardif, a BNP Paribas company, it manages assets over Rs 6000 crore.

India's biggest power generation firm by revenue NTPC advanced 13.61% to Rs 228.75 on reports it formed a joint venture with an Indonesian coal producer to ensure fuel supplies for its projects.

World's sixth largest steel maker, Tata Steel rose 16.31% to Rs 990.60. The stock surged on reports that Tata Steel is looking at investment opportunities in CSN's heartland Brazil. Tata Steel will reportedly in the next few months send a delegation to the Northern Brazilian state of Maranhao in order to evaluate investment opportunities there. Tata Steel's net profit rose 8.11% to Rs 1,190.83 crore on 11.41% rise in total income to Rs 4,879.41 crore in Q2 September 2007 over Q2 September 2006. The company announced the results on 26 October 2007.

India's third largest pharma company by sales, Cipla rose 3.82% to Rs 185.It reported 5.73% rise in net profit to Rs 190.62 crore 25.01% rise in total income to Rs 1140.21 crore in Q2 September 2007 over Q2 September 2006. The results were announced on Wednesday, 24 October 2007.

Dr. Reddy's Laboratories, the nations third largest pharma company by market capitalisation, slipped 0.4% to Rs 611.95.It reported a 4.5% fall in consolidated net profit to Rs 267 crore in Q2 September 2007 over Q2 September 2006. Dr. Reddy's total revenue at Rs 1267 crore was 37% below last year's Rs 2004 crore that included Rs 781 crore of one-time gains from exclusive marketing rights for two drugs. The results were announced on 24 October 2007.

India's largest engineering and construction company Larsen & Toubro (L&T) galloped 28.24% to Rs 3876.80 .It hit an all time high of Rs 3,898 on 26 October 2007. L&T posted 72.95% rise in net profit to Rs 348.02 crore on 43.54% rise in total income to Rs 5,523.27 crore in Q2 September 2007 over Q2 September 2006. The company announced the results on 26 October 2007.

Shares of Bajaj Auto, the country's second largest bike manufacturer by sales were up marginally by 0.16% to Rs 2,515.55. TVS has reportedly filed a Rs 250 crore defamation suit against Bajaj Auto in the Bombay High Court. This is in reaction to Bajaj's allegation that TVS had infringed the latter's patented DTSi (digital twin spark plug ignition) technology.

India's largest cigarette maker in terms of sales ITC rose 3.37% to Rs 180.80. It posted 13.42% rise in net profit to Rs 770.87 crore on 18.2% rise in total income to Rs 3,481.63 crore in Q2 September 2007 over Q2 September 2006. The results were announced on 26 October 2007.

Merrill Lynch expects more money to flow to India and China due to high growth in these two economies. The flow of foreign money into Asia remains strong, Merrill Lynch's recent Investment Strategy Report for Asian Pacific said. Pension funds and insurance companies have missed out on the Asian story so far this decade and are facing diminishing returns elsewhere. They are getting interested in Asia and when they do, it will be large amount of money, the study said.

BSE and NSE will hold a one-hour Diwali Muhurat trading session on beginning of Samavat Year 2064 on Friday, 9 November 20007. Trading will start at 18:00 IST and end at 19:00 IST. The transactions done on the Muhurat trading session will be settled as a separate settlement, BSE has said in a circular.

Commerce minister Kamal Nath said his ministry was preparing a cabinet note on additional tax saving measures for exports. The commerce ministry is looking at "sector specific" measures. Nath is hopeful of meeting the $160 billion export target this year.

According to the state run Spices Board, India's spices export volume expanded 22% to 219,640 tonnes in the April-September 2007. This was due to a healthy demand for chilli and pepper. In value terms, exports jumped 29% to Rs 21 billion.

According to a release issued by the steel ministry on (Tuesday, 23 October 2007) production of finished carbon steel was estimated at 24.80 million tonne in April-September 2007 - a 6.6% growth from 23.256 million tonne in April-September 2006. Output of pig iron improved 7.9% at 2.582 million tonne. Imports of finished carbon steel surged 28.2% to 2.45 million tonne and exports increased 7.4% to 2.60 million tonne in April-September 2007.

According to the Minister of Communications and Information Technology A Raja, IT export turnover is expected to touch the $80-billion mark by end of 2011. The minister was addressing an awards ceremony of Electronics and Computer Software Export Promotion Council (ESC) in New Delhi on Wednesday, 24 October 2007

According to the Telecom Regulatory Authority of India (Trai), gross number of telephones crossed 248.66 million by the end of September 2007 compared with 241.02 million in August this year. A total of 7.64 million telephone connections were added in September 2007. The tele-density reached 21.85% in September 2007 as against 21.20% in August 2007.

The fifth meeting of the United Progressive Alliance (UPA)-Left panel over the Indo-US civilian nuclear cooperation agreement was held in New Delhi on Monday, 22 October 2007. The UPA did not say a definite yes or no on operationising the deal. Earlier in the day, Prime Minister Manmohan Singh had reportedly expressed his embarrassment on the setback in the Indo-US nuclear deal.

Finance Minister Palaniappan Chidambaram while delivering a speech in the Norwegian School of Management on Wednesday, 24 October 2007 observed that India's healthy economic growth has brought forth the challenge of abundant international capital flows and their impact on the domestic economy, particularly on prices and the exchange rate.

The Reserve Bank of India (RBI) extended the timeframe for concessional rates of interest charged by banks on loans obtained by exporters by six months to 30 April 2008. Banks charge interest rates for pre-shipment and post-shipment credit at 2.5% lesser than their prime lending rates (PLR). Lending rates for banks range between 12-14%.

Annual inflation, based on the wholesale price index (WPI), remained unchanged at 3.07% in the week ended 13 October 2007 compared with the week ended 6 October 2007. The market estimate was 3.02%. WPI stood at 5.46% in the corresponding week a year ago. Prices of food articles, like fruits and vegetables, pulses, eggs, meat and fish, climbed up. Manufactured food articles like atta, maida got cheaper.

Record closing high for Sensex, Nifty

The market surged on renewed buying interest in index pivotals following healthy rollover of derivative positions from October 2007 to November 2007 on Thursday, 25 October 2007. Cash market turnover on BSE was just under Rs 9,000 crore. Global cues were mixed.

The Sensex surged 472.28 points or 2.52% at 19,243.17, an all-time closing high. It had opened marginally higher at 18,823.66 and slipped to low of 18,629.53 during the day. It hit an all-time high of 19,276.45 in late trade. At the day's high of 19,276.45, Sensex had gained 505.56 points for the day.

Its previous all-time high was 19,198.66 struck on 18 October 2007.

The broader based S&P CNX Nifty jumped up 133.35 points or 2.39% at 5,702.30, a record closing high. Nifty hit an intra-day high of 5,716.90 during the day. Its all time high is at 5736.80, which it had struck on 18 October 2007. The Nifty November 2007 futures settled at 5716, a premium of 13.70 points as compared to spot closing

The market shrugged off concerns arising from possible FII sales after market regulator Securities & Exchange Board of India put restrictions on issue of participatory notes (PN) after trading hours on Thursday, 25 October 2007 and directed some exiting PN positions to be wound up within 18 months. The market regulator has put in place a set of regulations to clamp down excessive inflows through participatory notes (PN). The regulator affirmed that sub-accounts would not be allowed to issue PNs and that FIIs will have to unwind PNs with derivatives as underlying in 18 months. Sebi further allowed both regulated and unregulated pension funds, endowments, university funds and charitable trusts to register as FIIs.

PNs are issued by FIIs registered in India to unregistered overseas investors. Registered FIIs buy Indian securities and issue the notes based on the underlying asset.

While announcing rules to curb issue of participatory notes (PNs) by FIIs, the market regulator Securities & Exchange Board of India (Sebi) has also made it clear that PNs can now be issued only to foreign entities which are 'regulated' in their respective jurisdiction and not to those that are merely 'registered' in the jurisdiction as was the norm earlier. This will mean that many hedge funds that are not regulated in their home country will find it difficult to invest in the Indian market.

The Reserve Bank of India's (RBI) mid-term review of annual policy due on 30 October 2007 and US Federal Reserve's meeting on 31 October 2007 on interest rates, will be key events that will drive the market in the near term.

The market breadth was strong on BSE: 1,706 scrips advanced as compared to 1037 that declined while 63 remained unchanged. 23 of the 30 members of the Sensex pack were trading with gains.

The BSE Mid-Cap index was up 2.19% to 7,920.66 while the BSE Small-Cap index gained 1.96% to 9,549.62. Both these indices underperformed the Sensex.

Most of the indices on BSE posted gains. Bankex (up 3.52% to 10,273.53), BSE Capital Goods Index (up 7.08% at 18,540.15), BSE PSU index (up 3.93% to 9,227.41), and BSE Oil and Gas Index (up 2.80% at 11,103.46), outperformed the Sensex.

BSE Realty (up 2.18% to 10,020.75), BSE Metal Index (up 1.95% at 16,744.56), BSE Consumer Durables index (up 0.62% to 5,234.25), BSE Auto Index (up 2.06% at 5,616.97), BSE FMCG Index (down 0.28% at 2,128.74), BSE Health Care Index (up 1.38% at 3,885.95), BSE IT Index (up 1.16% at 4,635.58), BSE TecK index (up 0.46% to 3,980.74), were underperformers.

The total turnover on BSE amounted to Rs 8968 crore as compared to Rs 8,456.76 crore yesterday, 25 October 2007.

The NSE F&O turnover was Rs 73836.74 crore as compared to Rs 103930.17 crore yesterday, 25 October 2007

India's largest engineering and construction company Larsen & Toubro (L&T) galloped 12.40% to Rs 3885 on 11.55 lakh shares. It hit an all time high of Rs 3898 today. It was the top gainer from Sensex pack. L&T posted 72.95% rise in net profit to Rs 348.02 crore on 43.54% rise in total income to Rs 5,523.27 crore in Q2 September 2007 over Q2 September 2006. The company announced the results during the market hours today, 26 October 2007.

India's largest bank in terms of net profit State Bank of India vaulted 7.53% to Rs 2091. It hit an all time high of Rs 2104.45. After market hours on 23 October 2007, SBI Life Insurance Company posted net profit of Rs 14.09 crore for the first half year ended 30 September 2007 on the back of 80% increase in its total premium collection. A 74:26 joint venture between the State Bank of India and Cardif, a BNP Paribas company, it manages assets over Rs 6000 crore.

Bharat Heavy Electricals (Bhel), the nation's largest power equipment maker in terms of sales soared 6.35% to Rs 2434.70 in anticipation of robust set of results from the company. It will announce its Q2 September 2007 results on 29 October 2007.

India's largest power generation company by sales, NTPC advanced 2.38% to Rs 228.45. As per reports it is planing to acquire overseas coal blocks with a mining capacity of around 20 million tonnes per annum (mtpa).

Oil & Natural Gas Corporation (ONGC), the country's largest oil exploration company by net sales advanced 4.12% to Rs 1159.95. As per reports, ONGC which reported gas discoveries on the east coast of India early this year, is planning to sell up to 60% stake in the block to Petrobras of Brazil and State Hydro of Norway.

Auto stocks gained on fresh buying. Tata Motors (up 1.98% to Rs 809), Mahindra & Mahindra (up 3.82% to Rs 802), and Maruti Suzuki India (up 1.38% to Rs 1175.10), were the other gainers from Sensex pack.

India's largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) rebounded sharply from day's low of Rs 2610 to hit a high of Rs 2710. It settled 2.42% higher at Rs 2691.10 on 13.52 lakh shares.

World's sixth largest steel maker, Tata Steel pared gains from its 52-week high of Rs 1048.80 struck in early trade today. It ended with 0.62% gain to Rs 995. Tata Steel's net profit rose 8.11% to Rs 1,190.83 crore on 11.41% rise in total income to Rs 4,879.41 crore in Q2 September 2007 over Q2 September 2006. The company announced the results during market hours today, 26 October 2007.

Shares of Bajaj Auto, the country's second largest bike manufacturer by sales were up marginally by 0.30% to Rs 2503.05. TVS Motor Company jumped 4.32% to Rs 56.80. TVS has reportedly filed a Rs 250 crore defamation suit against Bajaj Auto in the Bombay High Court. This is in reaction to Bajaj's allegation that TVS had infringed the latter's patented DTSi (digital twin spark plug ignition) technology. TVS Motor Company gained 1.93% to Rs 55.30

Bharti Airtel, the country's largest listed cellular services provider by total subscribers retraced sharply from day's high of Rs 1044.90. It settled with a loss of 2.66% to Rs 992.80 on 3.77 lakh shares. It was the top loser from Sensex pack

India's largest cigarette maker in terms of sales ITC slipped from day's high of Rs 190.75. It closed 1.40% lower to Rs 180.30. It posted 13.42% rise in net profit to Rs 770.87 crore on 18.2% rise in total income to Rs 3,481.63 crore in Q2 September 2007 over Q2 September 2006. The results were announced during the market hours today, 26 October 2007.

Hindustan Unilever (down 1.34% to Rs 217.55), and Ranbaxy Laboratories (down 1.15% to Rs 424.80), were the other losers from Sensex pack

Among side counters, Electrosteel Castings (up 20% to Rs 60.35), Engineers India (up 20% to Rs 726.35), Hind National Glass (up 18.79% to Rs 900), Disa India (up 20% to Rs 1934.20), and OCL India (up 16.47% to Rs 274.75), surged

Tata Steel was the top traded counter on BSE with total turnover of Rs 457.63 crore followed by Larsen & Toubro (Rs 433.33 crore), Reliance Petroleum (Rs 404.76 crore), Reliance Industries (Rs 362.53 crore), and Reliance Natural Resources (Rs 272.20 crore), in that order

Bharat Forge jumped 6.67% to Rs 335.90 on posting 8.94% rise in net profit to Rs 67.74 crore on 25.23% rise in total income to Rs 588.48 crore in Q2 September 2007 over Q2 September 2006. The company announced the results during the market hours today, 26 October 2007.

Educomp Solutions lost 0.53% to Rs 3400. The company today said its net profit jumped 128.14% to Rs 13.62 crore on 63.41% increase in sales to Rs 44.94 crore in Q2 September 2007 over Q1 June 2007.

Kotak Mahindra Bank gained 5.93% to Rs 1,030.90 on reporting 116.6% rise in net profit to Rs 75.38 crore on 99.68% rise in total income to Rs 714.16 crore in Q2 September 2007 over Q2 September 2006. The company announced the results during the market hours today, 26 October 2007.

Deccan Chronicle Holdings eased sharply from day's high of Rs 220. It closed lower by 0.22% to Rs 203.25 after its board approved a buyback of shares at a maximum price of Rs 250 per share. The board also agreed for private placement of up to 24% in subsidiary Sieger Solutions with a floor enterprise value of Rs 1500 crore and ceiling of Rs 1800 crore.

Idea Cellular slumped 8.55% to Rs 139 after it reported an average revenue per user (ARPU) of Rs 288 per month in Q2 September 2007, which was lower by Rs 32 from Rs 320 in Q1 June 2007. The decline in ARPU was due to lower minutes of use (MOU) and lower revenue per minute (RPM).

i-flex Solutions rose 2% to Rs 1582 on posting 31.58% rise in net profit to Rs 76.58 crore on 13.13%rise in sales to Rs 435.17 crore in Q2 September 2007 over Q1 June 2007. The company announced the results during the market hours today, 26 October 2007.

PTC India galloped 9.15% to Rs 115.70 on reports that private equity firms Goldman Sachs and Macquarie Bank are eyeing 40% stake in the investment arm of the company - PTC Financial Services (PFS). The deal is expected to be in the region of Rs 120 crore.

Sical Logistics soared 7.53% to Rs 247 after Reserve Bank of India allowed foreign institutional investors to buy up to 49% of the paid up capital of the company.

India Infoline spurted 11.51% to Rs 1107. It is reportedly looking at a Rs 200 crore private-equity funding for its recently started consumer finance subsidiary. The deal is expected to be concluded this quarter.

Jaiprakash Associates moved up 12.92% to Rs 1352.90. Recent reports suggest that the company, which is India's biggest builder of dams, plans to combine its hydroelectric and coal-fired plants into a single company, giving it the flexibility to raise prices and meet demand.

India's wholesale price index rose 3.07% in 12 months to 13 October 2007, matching the previous week's rise which was the smallest in five years, government data released today afternoon showed. The annual inflation rate was 5.46% during the corresponding week of the previous year.

October 2007 derivatives contracts expired yesterday, 25 October 2007. Rollovers were healthy and in-line with the previous two months. As per market data, marketwide rollover of derivative positions from the October 2007 series to the November 2007 series was 84%, while the Nifty rollover was 71%.

Marketwide rollover of derivatives positions from September 2007 to October 2007 was 84% while that of August 2007 contracts to September 2007 contracts was 82.30%. Nifty rollover for September 2007 to October 2007 was 71% and that of August 2007 contracts to September 2007 was 70%.

European markets were trading mixed. Key benchmark indices in United Kingdom (up 0.18% to 6,588.10), and Germany (up 0.02% to 7,934.34) rose while France CAC 40 index slipped 0.09% to 5,755.74.

Asian markets were trading higher today, 26 October 2007. Hong Kong's Hang Seng (up 1.84% at 30,405.22), Japan's Nikkei (up 1.36% at 16,505.63), Taiwan's Taiwan Weighted (up 0.66% at 9,631.51), Straits Times (up 1.74% at 3,771.55) and South Korea's Seoul Composite (up 2.60% at 2,028.06) edged higher.

US markets ended slightly lower yesterday, 25 October 2007, as investors were uneasy about the credit markets and record-high oil prices and took little solace from reports on new home sales and durable goods orders. The Dow Jones Industrial Average slipped 3.33 points, or 0.02%, to 13,671.92. The Standard & Poor's 500 index lost 1.48 points, or 0.10%, to 1,514.40, while the Nasdaq Composite Index lost 23.90 points, or 0.86%, to 2,750.86.

Crude oil prices surged to all-time high of $91.10 a barrel in early trade on Friday, 26 October 2007 bolstered by supply concerns during the northern Hemisphere winter and growing political tensions in Middle East. NYMEX crude for December delivery which had hit a record high of $91.10 barrel, was up 31 cents at $90.77.

What if the capital inflows stop?

Here are some premature, and somewhat strange, cautionary observations. In the entire hullabaloo about capital inflows and the impact they are having on the domestic economy, is there any thought being given to what will happen when these inflows stop?

Simon Johnson, economic counsellor and director of the IMF's research department, while releasing the analytical chapters of the Fund's latest World Economic Outlook recently, said: "...What important lessons can be drawn from past episodes of surges in capital inflows (this is over the past twenty years), and particularly what kinds of macro policies could help ensure that growth remains robust after the capital flows stop (And the capital flows do, in our experience, always stop at some point)."

The crucial point is in the parentheses. What happens once the music stops? What kind of shape is the Indian economy in? Is it too dependent on capital inflows for its growth? These, and many other questions, must surely be exercising the minds of India's central bank governors, who will be presenting their mid-term review of the annual monetary policy on October 30.

But these are long-term issues. The immediate concern is somewhat different. Like many other emerging economies in the region, and elsewhere in the world, India has been grappling with ways in which to tackle the wall of money that is washing up on Indian shores every day. Large sums of portfolio investments are finding their way into the equity markets, especially after the US Fed cut rates recently. This has put direct pressure on the rupee, which has been appreciating against the dollar.

A large section of exporters has been forced to shutter up. This has political ramifications, especially if the exporting units are labour-intensive, such as textiles. The central bank, to stem the appreciation of the rupee, has therefore been intervening in the forex market to buy dollars. This results in a surge of liquidity in the domestic system, which — acting through aggregate demand — could have implications for inflation management in the future. Thus, the central bank sells securities to soak up this excess liquidity, which also has a fiscal cost.

The Reserve Bank, in conjunction with the finance ministry, has tried repurposing policy contours to blunt the impact of capital inflows. First, the RBI imposed restrictions on inflows through the external commercial borrowings route.

It simultaneously also eased controls on fund outflows from the domestic economy. In addition, banks' unremunerated reserve requirements were also raised to suck out liquidity. On the fiscal front, the government announced two packages of incentives for exporters, which even included lowering of interest rate for export credit. It might even be appropriate to view the recent controls on participatory notes, announced by the Securities and Exchange Board of India, as part of the same policy framework.

All this also brings into sharp focus what is known as the "impossible trinity" problem — the inability of central banks to simultaneously pursue an independent monetary policy, exchange rate stability and full capital mobility. Economists believe that it might be possible to achieve two of the three issues, but never all the three objectives.

The monetary policy regime in India follows a multiple-indicators approach, compared to some of the other countries, which either have an inflation target or currency value target. The RBI's indicators focus on overall economic growth and the price stability, from which flow targets for credit growth and money supply growth. But, the central bank keeps a hawk-eye on one special variable — the price line.

Therefore, when the central bank governor's meet on October 30, the policy language is likely to be influenced by what liquidity flows are doing to the current price line and their effect on future inflationary expectations.
There are two issues that allow the RBI and government to meet both the short-term as well medium-sterm objectives.

One is the larger and broader issue of the economy and its absorptive capacities. This has a direct bearing not only in tackling the current logjam but also for powering economic growth in the future. Governor Y V Reddy said as much in a recent speech: "...the absence of modern infrastructure and shortage of skilled manpower are the most critical barriers to growth. It is imperative to augment the existing infrastructure facilities, particularly roads, ports and power, to provide an enabling environment for industry to prosper."

Secondly, the time might be just appropriate to introduce some more reforms in the money and foreign exchange markets, by allowing greater hedging flexibility. Specifically, the time might be right to allow a broader, exchange-traded, derivatives market in currency and interest rates, which offers the full suite of products (such as futures, options and swaps), while retaining an OTC market as well. This might give the central bank some breathing space.

India tightens rules on P-notes

India's stock market regulator on Thursday tightened rules regarding the use of participatory notes, which unregistered foreigners could use to gain exposure to Indian shares.

The curbs were in line with the proposals that the Securities and Exchange Board of India (SEBI) first floated last week and sought comment on. SEBI said the decision was about improving the transparency of inflows into India's financial markets by getting participants to register.

Chandan Desai, Director of Mauritius-based Silverstreak Management Services: "The biggest entities will take the front door to invest in India, but smaller entities which don't meet the criteria will probably stay out. For the short-term, money flow may get hampered for a while, but the country is on such a strong wicket, that investors will continue to come in. For the long term, these are definitely good measures."

Suraj Saraogi, Managing Director, Key Note Capitals: "All the decision were on expected lines and there are no surprises in the market. In a broker's language, I can say that all the poison is out of the market now and it will give a thumbs-up sign tomorrow."

Viral Doshi, an independent strategist, Mumbai : "Any measure which is more about transparency and less about capital flows control is always welcome ... the regulator always has a concern about the quality of the money coming into the system. There are many foreign funds with genuine money and genuine interest in India, and they will continue with their investments into the country."

Gurudatta Dhanokar, Derivatives Strategist, Almondz Global Securities: "Though this decision will create short-term panic in the market, overall it is a good one. The whole process will be now much more transparent once the unknown entities withdraw from it, and this will increase the comfort levels of existing players or the registered FIIs."

Nipun Mehta, Chief Executive, Unitis Tower Wealth Advisory, Mumbai: "I look at the measures in a very positive manner. This is something which should have happened much earlier, but better late than never. This is just about cleaning up the system, getting rid of the unregulated money in the market. Very clearly, there was some discomfort about foreign fund inflows which was excessive and one couldn't control it ... there should be transparency about who is investing in the system."

A Prasanna, Economist at ICICI Securities, Mumbai: "The broad measures are along expected lines and they seem to be keen on phasing out participatory notes on a gradual basis. This will have a moderating effect on the inflow of capital in the near term and in terms of the central bank's policy next week, they should maintain status quo on rates. There is no need to raise banks' reserve requirements immediately as they can monitor the impact of these moves on the inflows of money in the near term and also the festival season spending is due. There is no need to rush into a cash reserve ratio hike."

Market Close: Peaceful FNO expiry..

FNO expiry had nothing much to worry but a bit of volatility with all eyes on SEBI's meet. Flat start but gained momentum to trade in green till the end. Buying was seen in index heavy weights like Tata Steel, Hindalco, REL, ICICI Bank and SBI which kept the indices upwards. Tisco and Sail seem to be drawing strength everyday on the back of expectations of large mine allocations. Metal sector trade up accompanied by Banking and Auto. FMCG stocks trade bit weak. European indices are trading in green.

Sensex ended up by 257 points at 18,770 levels. Supporting the indices were gains in Tata Steel (+7.60%), ICICI Bank (+3.40%), Bharti Airtel (+2.7%), HDFC Bank (+2.20%) and Grasim (+2.04%). Restricting the gains were the losses in Cipla (-5.11%), Dr. Reddy (-2.33%), ITC (-1.06%), ACC (-0.93%) and Rel Energy (-0.46%).

Avaya Global reported its good First Quarter Results Top line grew by 26% to Rs 152 Cr on y-o-y basis. Bottom line was Rs 9.8 Cr against loss made last year. Avaya Global's Australian subsidiary started contributing Revenue. This will further add to bottom line. Avaya a market leader in Communication is well placed to capture this segment as it is a clear leader by far. With expertise in IP Telephony, Unified Communication and lots more, Avaya Global is well placed to take the advantage. The risk appears to be from slower growth in the call centre's who are facing tougher times because of the appreciating Rupee. However, the growth may slow but more than that the companies would rely on technology even more to have higher productivity and that would be beneficial for Avaya. At current price of Rs.280 the stock trades 11 times its annualized EPS. We remain positive on this with a long term perspective.

Navneet Publications reported 77 % jump in its net profit at Rs 8.4 Crs for the second quarter ended September 2007 from Rs 4.74 Crs for the same quarter, last year. The company's Net sales rose by 35% to Rs 82 Crs from Rs 60 Cr a year ago. The company also mentioed that the wind power generating units have been operational since September 2007. Navneet Publications has two major divisions, book publishing division and paper stationery division. The book publishing division publishes educational books for Maharashtra & Gujarat viz children and general books. The paper stationery division caters to the domestic as well as international markets. International market contributed 6 Cr out of the 20 Crs made in the stationery segment. The company recently ventured into e-learning, animated online books & software as it sees good growth in this segment. The e-learning has already been launched in Gujarat schools and as of now has 40 schools in its kitty and expects same service in Maharashtra's schools by March next year. Retail e-learning products would be also made available by March next year. Keep looking at this space as we will update you..

Technically speaking : Sensex is faces a resistance at 18850 above which we could see good rally and new high's and down side could see 18300 levels.

Sensex extends gains for fourth straight session

The market settled on a firm note on buying in index pivotals. However, trade was choppy towards the fag end of the day ahead of today's expiry of October 2007 derivatives contracts. European markets and Asian markets were trading with gains today, 25 October 2007. Total cash market turnover on BSE was just under Rs 8000 crore mark.

The Securities Exchange Board of India (Sebi)'s board meets today, 25 October 2007, to take a decision on recently announced proposals. It may be recalled that on 16 October 2007, Sebi had proposed curbs on issuance of offshore derivative instruments (ODIs), also known as participatory (P) notes, based on assets under management of FIIs and prohibited sub-accounts of FIIs from issuing P notes.

The Sensex gained 257.98 points or 1.39% at 18,770.89. It had opened marginally higher at 18,519.23 and rose to strike an intra-day high of 18,900.10 in late afternoon trade. At the day's high of 18,900.10, Sensex had risen 387.19 points.

Sensex hit a low of 18,459.51 in early trade. At day's low of 18,459.51, Sensex had lost 53.40 points. It oscillated 440.59 points in the day.

The Sensex had struck an all-time high of 19,198.66 struck on 18 October 2007.

The broader based S&P CNX Nifty was up 72.80 points or 1.32% at 5,568.95. The Nifty November 2007 futures settled 5531, a discount of 37.95 points as compared to spot closing. Nifty October 2007 futures expired today.

The BSE Mid-Cap index rose 1.31% to 7,750.93 while the BSE Small-Cap index gained 1.35% to 9,367.08. Both these indices underperformed the Sensex.

The market breadth was strong on BSE: 1,552 scrips had advanced as compared to 1,147 that declined while 71 remained unchanged. 21 of the 30 members of the Sensex pack were trading with gains.

The total turnover on BSE amounted to Rs 7976 crore as compared to Rs 7997 crore yesterday, 24 October 2007

The NSE F&O turnover was at Rs 103930.17 crore as compared to Rs 107495.25 crore yesterday, 24 October 2007

Most of the sectoral indices on BSE settled with gains. Bankex (up 2.67% to 9,924.11), BSE Capital Goods Index (up 1.18% at 17,314.13), BSE PSU index (up 1.16% to 8,878.54), BSE TecK index (up 0.82% to 3,962.59), BSE Realty (up 0.40% to 9,807.30), BSE Metal Index (up 4.13% at 16,424.52), BSE Consumer Durables Index (up 1.51% to 5,202.18), BSE Oil and Gas Index (up 0.60% at 10,800.82), and BSE Auto Index (up 1.84% at 5,503.58), outperformed the Sensex.

BSE FMCG Index (down 0.03% at 2,134.75), BSE Health Care Index (down 0.53% at 3,832.95), BSE IT Index (up 0.05% at 4,582.54), were underperformers.

World's sixth largest steel maker, Tata Steel retraced from its 52-week high of Rs 1003 struck earlier today. It settled 7.93% higher to Rs 988 on 26.80 lakh shares. It was the top gainer from Sensex pack. The stocks surged on reports that Tata Steel is looking at investment opportunities in CSN's heartland Brazil. Tata Steel will reportedly in the next few months send a delegation to the Northern Brazilian state of Maranhao in order to evaluate investment opportunities there. Tata Steel will declare Q2 September 2007 results on 26 October 2007.

Hindalco Industries (up 1.45% to Rs 191.85), Sterlite Industries (up 2.79% to Rs 924), Sesa Goa (up 1.67% to Rs 3319.80), and Steel Authority of India (up 2.79% to Rs 250.20), were the other gainers from metal and mining pack.

Auto stocks gained on fresh buying. Maruti Suzuki India (up 1.90% to Rs 1140), Bajaj Auto (up 0.76% to Rs 2499), Mahindra & Mahindra (up 1.59% to Rs 772), and Tata Motors (up 1.08% to Rs 783) rose

Shares of top banks surged. ICICI Bank advanced 3.40% to Rs 1135 and State Bank of India gained 0.91% to Rs 1925.30. After market hours on 23 October 2007, SBI Life Insurance Company posted net profit of Rs 14.09 crore for the first half year ended 30 September 2007 on the back of 80% increase in its total premium collection. A 74:26 joint venture between the State Bank of India and Cardif, a BNP Paribas company, it manages assets over Rs 6000 crore.

India's largest engineering and construction company by net sales, Larsen & Toubro gained 1.39% to Rs 3450. The stock hit an all time high of Rs 3510 on BSE today.

India's largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) rebounded sharply from day's low of Rs 2594 to hit a high of Rs 2667.10. It settled 0.58% higher at Rs 2624.70 on 11.15 lakh shares.

India's largest oil exploration company by market capitalisation Oil and Natural Gas Corporation rose 0.55% to Rs 1114. The stock made a strong recovery from day's low of Rs 1064. As per recent reports, its joint venture firm ONGC-Mittal Energy had acquired a 30% participating interest in an exploration block in the Caspian Sea, Turkmenistan.

India's third largest pharma company by sales, Cipla slumped 5.10% to Rs 186.60 on 11.08 lakh shares after it reported 5.73% rise in net profit to Rs 190.62 crore 25.01% rise in total income to Rs 1140.21 crore in Q2 September 2007 over Q2 September 2006. The results were announced after the trading hours on Wednesday, 24 October 2007. It was the top loser from Sensex pack.

Dr. Reddy's Laboratories, the nations third largest pharma company by market capitalisation, slipped 1.80% to Rs 618.60 after it reported a 4.5% fall in consolidated net profit to Rs 267 crore in Q2 September 2007 over Q2 September 2006. Dr. Reddy's total revenue at Rs 1267 crore was 37% below last year's Rs 2004 crore that included Rs 781 crore of one-time gains from exclusive marketing rights for two drugs. The results were announced after market hours yesterday, 24 October 2007.

ACC (down 1.39% to Rs 1063.10), and ITC (down 0.65% to Rs 183.50), were the other losers from Sensex pack.

IT pivotals were mixed today. Satyam Computers (up 0.07% to Rs 461.20) and Wipro (up 1.79% to Rs 495), gained. TCS (down 0.20% to Rs 1046) and Infosys Technologies (down 0.46% to Rs 1836) edged lower.

Reliance Energy, the country's second largest power utility company by sales declined sharply from day's high of Rs 1714.95 to settle 0.05% lower at Rs 1653.

Maytas Infra settled at Rs 614.30 on BSE, a premium of 66% over IPO price of Rs 370. The stock debuted at Rs 480, a premium of 29.7% over the IPO price. The scrip hit a low of Rs 480 and high of Rs 637.70. On BSE, 72.9 lakh shares changed hands in the counter. The company had priced the IPO at the top end of the Rs 320-370 price band.

Sugar shares advanced on fresh buying. Dwarikesh Sugar (up 1.13% to Rs 58), Uttam Sugar (up 1.61% to Rs 81.85), Balrampur Chini Mills (up 4.69% to Rs 82.65), Shree Renuka Sugars (up 2.25% to Rs 790.50), and Bajaj Hindustan (up 2.51% to Rs 189.70) surged.

Transformer shares gained on renewed buying. Emco (up 2.52% to Rs 1210), Voltamp Transformers (up 7.93% to Rs 1318), and Indo Tech Transformers (up 2% to Rs 519), advanced.

Areva T&D India surged 12% to Rs 2110 on posting 39.5% rise in net profit to Rs 48 crore on 20.5% growth in net sales to Rs 432.60 crore in Q3 September 2007 over Q3 September 2006. The company announced the results after market hours on 24 October 2007.

Gillette India slipped 1.10% to Rs 841. It posted 44.91% decline in net profit in Q1 September 2007 to Rs 27.82 crore on 35.28% rise in total income to Rs 142.05 crore in Q1 September 2007 over Q1 September 2006. The company announced the results during the market hours today, 25 October 2007.

Triveni Engineering & Industries soared 7.83% to Rs 135 after its board approved raising up to Rs 250 crore for capital expenditure and repayment of debt.

Finolex Cables spurted 7.93% to Rs 74.20. Earlier on 23 October 2007, the company said its board approved an expansion of capacity to 30 million compact fluorescent lamp (CFLs) per year at an additional expenditure of Rs 30 crore.

Engineers India rose 6.18% to Rs 605.30. It will declare Q2 September 2007 results on 30 October 2007.

TVS Motor Company declined 4.77% to Rs 53.95 on posting 52% decline in net profit to Rs 11.92 crore on 23.6% decline in sales to Rs 823.42 crore in Q2 September 2007 over Q2 September 2006. The company announced the results after market hours on 24 October 2007.

Bharat Earth Movers gained 0.69% to Rs 1500, after it secured a Rs 648 crore contract from Northern Coalfields (NCL) for supplying and servicing electric rope shovels. The announcement was made after the trading hours on Wednesday, 24 October 2007.

Indiabulls Financial Services (IBFSL) rose 0.08% to Rs 596.75 while Metals and Minerals Trading Corporation (MMTC) jumped 5% to Rs 31,701.85. IBFSL will set up a special purpose vehicle (SPV) with Metals and Minerals Trading Corporation (MMTC) for a commodity exchange. In the special purpose vehicle (SPV), IBFSL would hold 74% equity while MMTC will hold the reaming 26% stake.

Adani Enterprises gained 5.29% to Rs 794 on reports the company has sold 10% stake in its subsidiary - Adani Power to the British private equity firm 3i Group Plc for Rs 900 crore.

Reliance Capital eased from day's high of Rs 1869.50. It settled lower by 0.48% to Rs 1777.10. It posted 20.41% rise in net profit to Rs 201.28 crore on 75.58% rise in total income to Rs 391.27 crore in Q2 September 2007 over Q2 September 2006. The company announced the results during the market hours today, 25 October 2007.

The market regulator Sebi, after trading hours on Monday, 22 October 2007, provided partial breather to foreign institutional investors (FIIs) with respect to proposed restrictions on use of participatory notes and said it would speed up regulatory clearance for foreigners keen to invest transparently.

Meanwhile, on the eve of a crucial board meeting to decide on Securities & Exchange Board of India (Sebi)'s proposed restriction on use of participatory notes (PN), Sebi chairman, M. Damodaran, on Wednesday, 24 October 2007, said that all the 20 PN issuing FII sub-accounts have expressed intent to convert into foreign institutional investor (FII) status.

All these 20 sub-accounts have sent their letter of intent within the 24-hour deadline that was mentioned by the Sebi on Monday, 22 October 2007. There are 34 P-Note issuing entities in the country, of which some are already FIIs. This number was 14 in March 2004.

The Reserve Bank of India's (RBI) mid-term review of annual policy due on 30 October 2007 and US Federal Reserve's meeting on 31 October 2007 on interest rates, will be key events that will drive the market in the near term.

European markets opened on a firm note. Key benchmark indices in United Kingdom (up 1.01% to 6,547.60), Germany (up 1.06% to 7,911.38), and France (up 1.02% to 5,732.66), gained.

Asian markets were trading with gains today, 25 October 2007. Hong Kong's Hang Seng (up 1.78% at 29,854.49), Taiwan's Taiwan Weighted (up 1.33% at 9,568.25), Singapore's Straits Times (up 1.59% at 3,707.14) and South Korea's Seoul Composite (up 2.24% or at 1,976.15) edged higher.

However Japan's Nikkei (down 0.45% at 16,284.17) and Shanghai Composite (down 4.80% to 5,562.39) slipped

The Dow Jones industrial Average recovered from sharp early losses of over 200 points yesterday, 24 October 2007, as Merrill Lynch posted dreadful result hinting that sub-prime mortgage crisis may get bigger. Dow settled almost unchanged at 13,675.25, marginally lower by 0.98 points. The Nasdaq Composite Index, finished lower by 24.5 points at 2,774.76. S&P 500 slipped 3.71 points at 1,515.88.

As per provisional data, FIIs purchased shares worth a net Rs 1301.87 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 383.23 crore on Wednesday, 24 October 2007.

Crude oil traded higher in Asia today, 25 October 2007 on news US energy stockpiles fell sharply last week and tensions rose in the Middle East after Turkish warplanes bombed Kurdish rebel camps in Northern Iraq. New York's main futures contract, light sweet crude for delivery in December, advanced 85 cents to $87.95 a barrel. Brent North Sea crude for December climbed 73 cents to $85.10.

No change in proposals on P-notes: Sebi

M Damodaran, chairman, Securities and Exchange Board of India (Sebi), today said there was no change in the draft regulations announced by the regulator last week on participatory notes (P-notes).

The draft, which said the current P-notes would have to be wound up in 18 months, was also cleared by the board of the regulator which met today.

Damodaran, while addressing the media a short while ago, said Sebi would review the position on the issue from time to time.

The reference date for the calculation of assets under custody (AUC) of foreign institutional investors (FIIs) for the issuance of P-notes has been set as September 30, 2007. The regulation on P-notes is effective October 25, Damodaran added.

P-notes can now be issued only to regulated entities in accordance with the FII regulation of 2004.

Pension funds, foundations, endowments, university funds, charitable societies, which may not strictly fit into the category currently, can now register as FIIs.

The board also cleared a proposal to have a separate exchange for the small and medium enterprise (SME) segment.

Sensex rallies on metal stocks

The market resumed on a quiet note in line with its global peers as investors were playing with caution ahead of the Securities and Exchange Board of India's decision on participatory notes and expiry of October series of derivative contracts. As trading progressed, the market gradually moved northwards and touched the day's high of 18,900 during late trades. The Sensex received major support from Tata steel, ICICI Bank, and Maruti Udyog. The market remained above the crucial 18,700 level for a major portion of the day, but profit-taking towards the fag end saw the Sensex pare some profits and end the session at 18,771, up 258 points. The Nifty moved up 73 points to close at 5,569.

The market breadth was positive. Of the 2,800 stocks traded on the Bombay Stock Exchange (BSE), 1,586 stocks advanced, 1,144 stocks declined and 70 stocks ended unchanged. The BSE Metal index led the surge in the sectoral indices and rose 4.13% at 16,425. The BSE Bankex index, the BSE Auto index, the BSE CD index, the BSE CG index, and the BSE PSU index were the other notable gainers, while the BSE FMCG index ended weak.

Buying was led by Tata Steel, which notched up gains of 8.03% at Rs989. Among the other gainers ICICI Bank advanced 4.44% at Rs1,146, Maruti Udyog added 3.61% at Rs1,159, Bharti Airtel moved up 3.41% at Rs1,020, HLL jumped by 2.42% at Rs221, Tata Motors gained 2.41% at Rs793 and HDFC Bank was up 2.28% at Rs1,541. However, Cipla tumbled 5.01% at Rs187, Dr Reddy's slipped 2.44% at Rs615, ACC fell 1.57% at Rs1,061 and ITC was down 1%, while HDFC, Reliance Energy, Infosys and Satyam Computer were down marginally.

A sharp rally was witnessed in metal stocks today. Jindal Steel soared 5.92% at Rs7,929, Sterlite Industries scaled up 4.96% at Rs923, Nalco surged 4.95% at Rs297 and Bhushan Steel moved up 3.12% at Rs1,048.

Over 2.33 crore IFCI shares changed hands on the BSE followed by Reliance Petroleum (1.39 crore shares), Reliance Natural Resources (1.38 crore shares), GTL Infrastructure (1.34 crore shares) and Tata Teleservices (1.05 crore shares).

Value-wise, Maytas Infra registered a turnover of Rs426 crore on the BSE followed by Reliance Energy (Rs406 crore), Reliance Industries (Rs295 crore), Reliance Capital (Rs292 crore), and Reliance Petroleum (Rs270 crore).

Grey Market - Mundra, Reliance Power, Religare

 

 

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Market to stay cautious ahead of Sebi meet and October 2007 derivatives expiry

The market is expected to stay cautious ahead of October 2007 series derivatives expiry and Securities Exchange Board of India (Sebi) meet. Global cues were mixed. US markets edged lower on Wednesday, 24 October 2007. Asian markets posted gains today, 25 October 2007.

Volatility is expected to remain high as October 2007 derivatives contracts expire today, 25 October 2007. As per market data, marketwide rollover of derivative positions from October 2007 series to November 2007 series was 61% while Nifty rollover was 60%.

The Securities Exchange Board of India (Sebi)'s board meets today, 25 October 2007, to take a decision on recently announced proposals. It may be recalled that on 16 October 2007, Sebi had proposed curbs on issuance of offshore derivative instruments (ODIs), also known as participatory (P) notes, based on assets under management of FIIs and prohibited sub-accounts of FIIs from issuing P notes.

The market regulator Sebi, after trading hours on Monday, 22 October 2007, provided partial breather to foreign institutional investors (FIIs) with respect to proposed restrictions on use of participatory notes and said it would speed up regulatory clearance for foreigners keen to invest transparently.

The Reserve Bank of India's (RBI) mid-term review of annual policy due on 30 October 2007 and US Federal Reserve's meeting on 31 October 2007 on interest rates, will be key events that will drive the market in the near term.

Asian markets were trading with gains today, 25 October 2007. Hong Kong's Hang Seng (up 1.39% at 29,740.01), Japan's Nikkei (up 0.21% at 16,393.14), Taiwan's Taiwan Weighted (up 1.11% at 9,547.09), Singapore's Straits Times (up 0.69% at 3,674.40) and South Korea's Seoul Composite (up 1.13% or at 1,955.28) edged higher.

The Dow Jones industrial Average recovered from sharp early losses of over 200 points yesterday, 24 October 2007, as Merrill Lynch posted dreadful result hinting that sub-prime mortgage crisis may get bigger. Dow settled almost unchanged at 13,675.25, marginally lower by 0.98 points. The Nasdaq Composite Index, finished lower by 24.5 points at 2,774.76. S&P 500 slipped 3.71 points at 1,515.88.

As per provisional data, FIIs purchased shares worth a net Rs 1301.87 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 383.23 crore on Wednesday, 24 October 2007.

Crude oil traded higher in Asia today, 25 October 2007 on news US energy stockpiles fell sharply last week and tensions rose in the Middle East after Turkish warplanes bombed Kurdish rebel camps in Northern Iraq. New York's main futures contract, light sweet crude for delivery in December, advanced 85 cents to $87.95 a barrel. Brent North Sea crude for December climbed 73 cents to $85.10.

The BSE 30-share Sensex rose 20.07 points, or 0.11% to 18,512.91 on Wednesday, 24 October 2007. The Sensex is now 685.75 points away from its all-time high of 19,198.66 struck on 18 October 2007.

The broader based S&P CNX Nifty rose 22.45 points or 0.41% at 5,496.15, on Wednesday, 24 October 2007

Himachal Futuristic Communications tops volume on BSE

 About 2.75 crore shares of Himachal Futuristic Communications were traded on BSE today. The scrip topped volumes on BSE. The share price rose 4.51% to Rs 27.80.

 

Himachal Futuristic Communications reported net loss of Rs 15.63 crore in Q1 June 2007 as against net profit of Rs 17.87 crore in Q1 June 2006. Sales declined 50.48% to Rs 110.77 crore in Q1 June 2007 over Q1 June 2006.

 

Reliance Natural Resources clocked the second highest volume of 2.15 crore shares on BSE. The share price rose 1.91% to Rs 96.10.

 

Net profit of Reliance Natural Resources rose 175.83% to Rs 19.17 crore on a 5.94% decline in sales to Rs 11.72 crore in Q2 September 2007 over Q2 September 2006. The results were announced on 17 October 2007.

 

Reliance Petroleum clocked the third highest volume of 1.98 crore shares on BSE. The share price rose 5.92% to Rs 189.55.

 

Reliance Petroleum (RPL) had announced on 16 October 2007 that the company achieved over 70% overall progress in implementation of its large and complex refinery, coming up in a special economic zone (SEZ) at Jamnagar. Based on the progress made till date, in the engineering, procurement and construction activities, RPL expects to complete the project ahead of December 2008.

 

Power Grid Corporation of India clocked the fourth highest volume of 1.61 crore shares on BSE. The share price declined 1.47% to Rs 136.95.

 

As per reports, Power Grid Corporation of India (PGCIL) is planning equity investments of Rs 16,500 crore over the next five years to fund a slew of transmission projects, aimed at nearly trebling the country's inter-regional transmission capacity.

 

CDMA telecom service provider Tata Teleservices (Maharashtra) clocked the fifth highest volume of 1.38 crore shares on BSE. The share price ended flat at Rs 42.50.

 

As per reports late last month, Tata Teleservices (Maharashtra) (TTML) is planning to raise around $200 million (Rs 1,200 crore) by way of foreign currency convertible bonds (FCCBs). The company intends to use the proceeds for expansion plans, including rollout of network and services.

IndusInd Bank leads gainers in 'A' group

Private sector lender IndusInd Bank spurted 12.77% to Rs 84.75. It topped the gainers in the BSE's A group shares. The bank will declare Q2 September 2007 results on 27 October 2007.

 

Drug maker Novartis India jumped 12.66% to Rs 327.40 and came second among top gainers in A group. Its net profit grew 70.1% to Rs 30.39 crore on 14.3% rise in sales to Rs 147.88 crore in Q2 September 2007 over Q2 September 2006. The company declared results during market hours today, 24 October 2007.

 

Adhesive maker Pidilite Industries flared up 10.39% to Rs 181.75. It was the third biggest gainer in A group. Its net profit jumped 69% to Rs 56.30 crore on 18.8% increase in sales to Rs 370.50 crore in Q2 September 2007 over Q2 September 2006. The company declared results after market hours yesterday, 23 October 2007.

 

Software firm Rolta India moved up 9.76% to Rs 650.35 and came fourth among top gainers in A group. Earlier on 22 October 2007, the board of directors of the company had approved the proposal for issuing one bonus share for every one share held in the company.

 

Wind turbine maker Suzlon Energy rose 9.63% to Rs 1,908.75. It was the fifth biggest gainer in A group. The company said on Tuesday (23 October 2007), that it would split its shares and list its Belgium-based group company Hansen Transmissions International NV on the London Stock Exchange.

Technology stocks take US Market higher

After disappointing reports from retailers, technology stocks provide the boost

 

It was another volatile day in US market. After witnessing sell-off in the first half of the day, stocks started focusing on better than expected earnings reports from various sectors and indices moved higher in the final hour of trading today, Tuesday, 23 October 2007. All the ten economic sectors posted gains today led by the technology and materials sector.

 

The Dow Jones industrial Average closed higher by 109 points at 13,676. The Nasdaq Composite Index, finished higher by 45 points at 2,799. S&P 500 finished higher by 13 points at 1,519.

 

American express, Du-Pont and AT&T led the team of Dow winners while 3M headed the list of Dow laggards.

 

In the early trading hours, a couple of disappointing reports from Target and Wal-Mart started a sell-off in the market. Wal-Mart said that it plans to trim capital expenditures for the current fiscal year more than forecast. On the other hand, Target lowered its third quarter guidance.

 

But then, there were quite a few big names that came out with blowout earnings reports. AT&T, Apple, American Express, Du-Pont, UPS - all declared earnings reports beating market expectations.

 

But it was mainly the technology stocks that led the indices higher for the day. Apple shares gained 6.8% after the company announced 67% growth in its Q4 earnings and attributed the same to solid iPod and iPhone sales. Amazon.com shares rallied by 10% and touched the $100 mark for the first time ahead of its third quarter result.

 

All Indian ADRs end in green – Satyam the main winner

 

Indian ADRs closed in the green today. Satyam was the top winner closing up by more than 12%. HDFC Bank and ICICI Bank closed up by 7.7% and 6.7% respectively. Other top winners were MTNL and VSNL gaining 4.5% and 7.2% respectively.

 

Crude prices continued to drop today as traders speculated that Middle East tension between Turkey and Iraq had eased. Price also continued to drop after market expected that tomorrow's weekly inventory report on crude and fuel products are expected to show a climb in inventories for week ended 19 October.

 

Crude-oil futures for light sweet crude for December delivery closed at $85.27/barrel (lower by $0.75/barrel or 0.9%) on the New York Mercantile Exchange. Prices are up 45% on a yearly basis. Last Friday (19 October) price had peaked to $90.02/barrel after dropping later in the day.

 

Volume on the New York Stock Exchange topped 1.3 billion, and advancing stocks outran declining issues roughly 11 to 5. On the technology-laden Nasdaq, nearly 2.4 billion shares exchanged hands, and gainers outpaced decliners by 17 to 11.

 

Existing home sales data for September are expected tomorrow at 10.00 E.T followed by the weekly inventory report from the Energy Department. Other than that, Boeing and Merrill Lynch are scheduled to declare their earnings report before market opens.

Swan Mills - Multibagger

A realty company in Mumbai

Swan Mills is developing its property located at Sewree and at Kurla in joint venture with Peninsula Land. The company shall be paying 22% of the sale proceeds to Peninsula for carrying out development and marketing of project.

The projects have following area available for development.
1) Sewree Project – Ashok Gardens is a 12-Acre property with high-class luxurious two towers, with parking podium for 500 cars and project shall be completed by June 09. The total saleable area is about 10 lakh sq. ft. The present selling rate is about Rs 15,500 sq. ft. (including floor rise). The average selling price for the project would be about Rs 12,000 per sq. ft., including car parking. Project would realize Rs 1,200 crores. Deducting cost of construction and development of Rs 285 crores and Peninsula Margin of Rs265 crores, PBT would be close to Rs 650 crores.

2) Kurla Project – The 11 acre project is a commercial complex called Peninsula Technopark with a saleable area of 10 lakh sq. ft. The project shall be completed by FY 10. The project is located adjacent to Bandra Kurla complex where present selling rate is about Rs 30,000 per sq. ft. This project can fetch Rs 25,000 per sq. ft. and since the developers have sold one Tower at old rate, the average rate realization could be Rs 20,000 per sq. ft. Peninsula land would be entitled for 22% of selling receipts as Developers fee, which would be about Rs 440 crores. Construction cost would be about Rs 160 crores, resulting in a PBT of Rs 1,400 crores.

The total PBT from both the project would be about Rs 2,050 crores by FY 10, in the next three years.

The present equity of the company is at Rs 19 crores, being 9.50 crore equity shares of Rs 2 each. Promoters are holding 82%, while about 10% is held by few long-term investors. The share has very low floating stock. The share is presently ruling at Rs 128.60, which results in a market capitalization of Rs 1,220 crores.

The company has not yet sold its Kurla property and quite a large area is unsold at Sewree. With any further rise in realization, it would improve its profitability. The expected PBT from the projects are over Rs 2,000 crores.

Hence, share has potential to rise to Rs 150 to Rs 180 levels in the next 6 – 9 months.

India now $4 trillion economy

India's economy, which swelled close to a trillion dollars last year, is actually worth four trillion dollars when measured in terms of purchasing power parity (PPP) and accounts for 6.3 per cent of the global economy, Finance Minister P Chidambaram said on Wednesday.

At market prices GDP has increased from $20 billion in 1950-51 to $912 billion in 2006-07 and is expected to cross a trillion dollars in the current year, he said, delivering a speech 'India's Socio-Economic Agenda: Development with Democracy' at the Norwegian Nobel Institute in Oslo.

PPP is a measure of the purchasing power of different currencies and the average cost of goods and services between countries.

The Finance Minister is on three-day visit to Norway. Claiming that Indian growth was no more a jobless growth story, he said since 2003-04 the average growth rate has increased further to 8.6 per cent and has seen over one crore jobs added annually.

During 1999-2000 to 2004-05, India added about 12 million people to its workforce each year. In this period, the rate of growth of employment was 2.9 per cent per year, he said.

India, after China, is the fastest growing economy of the world, and together with Brazil, Russia and China is the locomotive driving world growth, said Chidambaram.

Expressing the government's commitment for inclusive growth, he said the proportion of people living below the poverty line in India has declined from 51.3 per cent in 1977-78 to about 22 per cent in 2004-05.

Earlier, he met his Norwegian counterpart Kristin Halvorsen and the Norwegian Minister of Environment and International Development. Both the countries also decided to step up their bilateral and economic relations.

Post Market Commentary

The market ended the day on a flat note after exhibiting high volatility in the post session trading. Healthy quarterly numbers and good news from most of the companies have generated renewed buying interest across most of the key pivotals, which kept the market trading higher in the morning session. However, profit booking was witnessed during the mid session, caused a fall of more than 100 points in the benchmark index. Finally market relaxed a bit on the news that India''s stock market regulator, SEBI may allow investors not regulated in their home countries to register as foreign institutional investors if they disclose the nature of their funds and investments. Atlast, the benchmark index Sensex ended with the marginal gain of 20.07 points to close at 18,512.91, whereas Nifty closed a bit higher with a gain of 22.45 points to close at 5496.15. Further, BSE Midcap and BSE Smallcap also closed with the gains of 94.45 points and 106.66 points at 7,650.69 & 9,242.38 respectively.

BSE Metal closed with the highest gain of 380.65 points at 15,772.94. Pushed it up are JSW Steel (9.18%), Sesa Goa (5.42%), Jindal Saw (3.48%).

BSE Capital goods also followed the gaining rally to closed higher by 335.14 points at 17,112.32. Fueled it up are Suzlon Energy, with the highest gain of (9.63%), Thermax Ltd (5.81%), Areva (5.06%), Lakshmi Machinery (3.25%).

The Realty index also surged by 192.50 points to close at 9760.53. Took it up are Indiabulls Realty (13.23%), Anant Raj (5.85%), Mahindra Ges (5.29%), and Akruti Nirman (4.26%).

Along with these, BSE Bankex also closed with gain of 102.56 points at 9665.67. Scrips surged are SBI (5.25%), Canara Bank (3.49%), Union Bank (3.38%), Yes Bank (2.48%), and HDFC Bank (2.20%).

BSE IT, BSE Auto and BSE Oil & Gas remained under pressure with the loss of 54.65 points, 48.33 points and 3.61 points to close at 4,580.23, 5404.26 and 10736.91 respectively.

Market Close: volatility prevailed ahead of F&O..

Market continued yesterdays euphoria. It opened with a gap up but could not sustain due to volatile trade ahead of FNO expiry which is due tomorrow. Taking positive global cues Indian indices started with a bang. However after some time indices gave up all earlier gains as investors preferred to take profits. As per market data rollover position of derivative for October 2007 series to the November 2007 series was 42% for Sensex, while the Nifty rollover was 47%. This was lower than previous month September 2007 market wide rollover of 84% for Sensex and for Nifty 71%. Higher the rollover indicates a bullish market. It?s difficult to comment on this but volatility expected to remain high till expiry.

Except IT, Cement and Auto most of the sectors ended in mix. Consumer Durable, Metals and Realty stocks cheered in volatile session. Small and mid caps outperformed the front line indices. SBI zoomed on news that cabinet may take up rights issue in two weeks. It may get bonds in lieu of Govt shares in the rights issue. Asian markets closed mixed, European markets too trading in mixed.

The government has given an in-principle approval for SBI to raise Rs 20,000 cr through a rights issue. The Cabinet may take up State Bank of India (SBI) rights issue in two weeks. SBI may get bonds in lieu of Government share in the rights issue. Government's stake in SBI will rise if investors forsake their rights. The government has been very particular about its fiscal deficit targets. This year the government has kept the fiscal deficit target at 3.3% of GDP. So it does not want to tinker with it in any sense. So one of the options the government is looking at is that it will issue securities to SBI in lieu of its stake in the rights offer which is not a capital expenditure and will be off balance sheet and this will keep fiscal deficit numbers under check. One view in the government is that since SBI share price is in the vicinity of Rs 2,000 odd, there maybe a chance that a lot of retail investors may not use to subscribe to the rights offer and in that case the government's shares in SBI is likely to rise. According to sources they see it rising to 61-62%. This in turn will help SBI later if they follow-on public offer. Stock rallied in volatile session ended up by 5%.

ACC results have come in and they were a disappointment. There was volume growth but the realisation growth was not enough. Ambuja cement numbers were ok but the common element between the two was the rising cost pressures. For ACC it showed up in the power and fuel costs where as Ambuja had a higher employee cost (Holcim effect). Ambuja will feel the pressure of higher coal prices going ahead too. The other common element was lower than expected increase in realisation. Between the two ACC is well placed with some capacities coming on stream quickly to take advantage of the good margins near term. Ambuja is prone to higher presence in the North where the capacities are coming in place. The common element is in terms of valuations is that both are not compelling. The fear is from capacity addition expected in 2009- 2010 and 2011which could incrementally bring the lull period. That?s the worry for most cement players and more that that the risk for investment here. Near term though the next 4 quarters are likely to be the best ever and in such a scenario the stocks are unlikely to see selloffs. The period post that is where "the arrangement" may come into play and surprise the players. All said and done there are fewer players. Holcim, Birla?s who control almost 50% and at least one of them has the experience to manage such "Arrangement" though it has been in other parts of the world.

Technically Speaking: It was a volatile session for the whole day before closing. Sensex touched intraday high of 18832 and low of 18317. Overall breadth was in favor of Advances, where the Advances stood at 1532, while Declines at 1175. The turnover was pretty good at Rs 7968 cr. Sensex has a support at 18300 and 17725.

Indices close flat

The market had a flat close as traders continued to book profits ahead of the expiry of October derivative contracts. After a cautious start at 18,728, above 235 points its previous close, the Sensex came under selling pressure and slipped into the red below the 18,300 mark amid weakness in several Asian indices to touch the day's low of 18,315, down 176 points. The market stabilised by afternoon and continued its northwards journey on healthy buying in heavyweights, consumer durables and metal stocks. The market remained choppy thereafter and moved in a range with a mixed bias. The strong optimism in frontline, metal, consumer durables, and capital good stocks saw the index breach the 18,800 mark and touch an intra-day high of 18,832, up 515 points from the day's low. However, profit bookings at the close saw the Sensex end the session with a marginal gain of 20 points at 18,513, while the Nifty added 22 points to close at 5,496.

The market breadth was positive. Of the 2,785 stocks traded on the Bombay Stock Exchange (BSE), 1,558 stocks advanced, 1,173 stocks declined and 54 stocks ended unchanged. Among the sectoral indices, the CD gained 2.98% while the BSE Metal index, the BSE Realty index and the BSE CG index were up over 2% each. While, the BSE Auto index, the BSE IT index, the BSE Oil & Gas index and the BSE Teck index were marginally down.

Among the heavyweights, Reliance Energy gained 8.58% at Rs1,654, SBI soared 5.25% at Rs1,908, Tata Steel surged 2.23% at Rs915, Hindalco moved up by 2.22% at Rs189, HDFC Bank scaled up 2.20% at Rs1,506, L&T was up 2.16% at Rs3,403, NTPC advanced by 1.82% at Rs22 and Cipla gained 1.71% at Rs197. However, ONGC slipped 3.18% at Rs1,108, followed by Tata Motors, which was down 2.70% at Rs775. Infosys slumped by 2.07% at Rs1,845, Bharti Airtel shed 1.89% at Rs986 and M&M lost 1.85% at Rs760.

Over 2.75 crore Himachal Futuristic Communication shares changed hands on the BSE followed by Reliance Natural Resources (2.15 crore shares), Reliance Petroleum (1.98 crore shares), Power Grid Corporation (1.61 crore shares) and Tata Teleservices (1.38 crore shares).

Reliance Energy was the most actively traded counter with a turnover of Rs594 crore on the BSE followed by Reliance Petroleum (Rs369 crore), Reliance Industries (Rs287 crore), Reliance Communication (Rs284 crore) and Power Grid Corporation (Rs225 crore).

Hat trick of gains for Sensex

The Sensex posted gains consecutively for the third straight sessions, as investors flocked blue-chip shares, inspired by robust set of results posted by them for the quarter ended September 2007. All this came on the back of volatility, which is expected to remain high ahead of the expiry of October 2007 derivatives contracts on Thursday, 25 October 2007.

The Sebi's board meet tomorrow 25 October 2007 to take a decision on proposals regarding P-notes, Reserve Bank of India's (RBI) mid-term review of annual policy due on 30 October 2007 and US Federal Reserve's meeting on 31 October 2007 on interest rates, will be key events that will drive the market in the near term.

After swinging between positive and negative zones, the market closed with marginal gains. Earlier today, 24 October 2007, the market opened with a bang on continued buying interest in blue-chip stocks tracking firm global markets. But later it slipped in the red on selling pressure.

The market staged a comeback in late-afternoon trade to post decent gains. But fresh selling dragged it lower. The market breadth, however, was strong throughout trading.

European markets were trading higher, while Asian markets ended lower.

The BSE 30-share Sensex closed higher by 20.07 points, or 0.11% to 18,512.91. It opened with a 235.06-point upward gap at 18,727.90 and rallied further to strike an intra-day high of 18,832.49, before slipping to a low of 18,317.17. The broad market index moved in a band of 515.32 points for the day's trading session.

The Sensex is now 685.75 points away from its all-time high of 19,198.66 struck on 18 October 2007.

The broader based S&P CNX Nifty outperformed its rival index BSE Sensex, as it rose 22.45 points or 0.41% at 5,496.15, powered by exclusive Nifty stocks of Reliance Petroleum (up 6.01% to Rs 178.95), and Tata Power (up 3.18% to Rs 1057.60).

The Nifty October 2007 futures settled at 5466, a sharp discount of 30.15 points as compared to spot closing.

The BSE Mid-Cap index was up 1.25% to 7,650.69 and the BSE Small-Cap index gained 1.17% to 9,242.38. Both these indices outperformed the Sensex.

Sectoral indices on BSE displayed mixed trend. Bankex (up 1.07% to 9,665.67), BSE Capital Goods Index (up 2% at 17,112.32), BSE Metal Index (up 2.47% at 15,772.94), BSE Consumer Durables index (up 2.98% to 5,124.67), BSE FMCG Index (up 0.33% at 2,135.45), BSE PSU index (up 0.28% to 8,775.61), and BSE Realty (up 2.01% to 9,760.53), outperformed the Sensex.

BSE Health Care Index (up 0.04% at 3,853.90), BSE Oil and Gas Index (down 0.03% at 10,736.91), BSE Auto Index (down 0.89% at 5,404.26), BSE IT Index (down 1.18% at 4,580.23), BSE TecK index (down 1.11% to 3,930.33), were underperformers.

Eighteen of the 30 members of the Sensex pack declined, while the rest gained. The market breadth was strong on BSE: 1,532 scrips had advanced as compared to 1,175 that declined, while 50 remained unchanged.

The total turnover on BSE at the end of the session amounted to Rs 7968 crore as compared to Rs 7418 crore yesterday, 23 October 2007.

The NSE F&O turnover spiked to Rs 107495.25 crore as compared to Rs 97393.15 crore yesterday, 23 October 2007.

Reliance Energy, the country's second largest power utility company by sales, extended early gains and was up 8.75% to Rs 1656.50 on 36.66 lakh shares. It was the top gainer from the Sensex pack. The stock's rise follows chairman Anil Ambani's briefing to the media after market hours yesterday, 23 October 2007, that Reliance Power will be valued nearly two times its holding company, Reliance Energy, after the mega initial public offer. In its prospectus, Reliance Power has said that it would dilute 11.5% of the post-issue equity.

India's leading bank by net profit State Bank of India jumped 5.03% to Rs 1904.05. After market hours yesterday, 23 October 2007, SBI Life Insurance Company posted net profit of Rs 14.09 crore for the first half year ended 30 September 2007 with an 80% increase in its total premium collection.

SBI Life Insurance has become the first private sector life insurance company to make profit. A 74:26 joint venture between the State Bank of India and Cardif, a BNP Paribas company, it manages assets over Rs 6000 crore.

India's fourth largest software services exporter Satyam Computer Services retracted sharply from the day's high of Rs 489.65. It settled 0.25% lower to Rs 460.60. Before market hours yesterday, 23 October 2007, the company reported a rise in net profit by 7.19% to Rs 417.15 crore on a 10.75% increase in sales to Rs 1948.24 crore in Q2 September 2007 over Q1 June 2006. The company revised upwards earning as well revenue guidance for FY 2008 (year ending 31 March 2008), both in rupees and dollars.

Other IT pivotals were not spared either. Infosys (down 2.31% to Rs 1839), TCS (down 1.79% to Rs 1045.10), and Wipro (down 1.46% to Rs 485) declined.

India's largest engineering company by sales Bharat Heavy Electricals (Bhel) slipped 1.06% to Rs 2270 on profit booking after it had jumped 11.82% to Rs 2300 yesterday, 23 October 2007. Bhel said on Monday, 22 October 2007, that due to some unavoidable circumstances, the meeting of its board of directors to consider Q2 September 2007 results, scheduled to be held on 25 October 2007, is postponed to 29 October 2007.

Larsen & Toubro (L&T), the nation's largest engineering and construction company by sales, rose 2.06% to Rs 3399.70. It had surged 7.69% to Rs 3336 yesterday, 23 October 2007. On 18 October 2007, L&T said it won four orders worth Rs 452 crore for projects in Andhra Pradesh

Metal stocks firmed up on fresh buying. Hindalco Industries (up 1.86% to Rs 188.45), Jindal Saw (up 3.29% to Rs 610), and Tata Steel (up 1.95% to Rs 912.90) were the gainers from the metal pack.

India's biggest power generation firm by revenue NTPC advanced 1.75% to Rs 221.15 on reports it form a joint venture with an Indonesian coal producer to ensure fuel supplies for its projects.

India's largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) rebounded in the green. It settled 0.25% higher at Rs 2608 on 10.99 lakh shares. It had hit an intra-day high of Rs 2651 in early trade. It had also slipped to a low of Rs 2540.25. As part of restructuring exercise, RIL has reportedly decided to hive off Reliance Fresh into a separate company, Ranger Farm, for single point accountability. Reliance Fresh sells food, fruits and vegetables and consumer products.

India's largest oil exploration company by market capitalisation Oil and Natural Gas Corporation slumped 3.69% to Rs 1102, off its day's low of Rs 1083. It was the top loser from the Sensex pack. The stock had surged 4.28% to Rs 1144.80 yesterday, 23 October 2007, on reports its joint venture firm ONGC-Mittal Energy had acquired a 30% participating interest in an exploration block in the Caspian Sea, Turkmenistan.

Auto stocks were under selling pressure. Tata Motors (down 2.41% to Rs 777), Mahindra & Mahindra (down 1.84% to Rs 760), Bajaj Auto (down 1.93% to Rs 2475), edged lower.

Shares from the Reliance group dominated the turnover charts on BSE. Reliance Energy was the top traded counter on BSE with turnover of Rs 593.96 crore, followed by Reliance Petroleum (Rs 368.37 crore), Reliance Industries (Rs 286.60 crore), and Reliance Communications (Rs 284.47 crore).

Among the noteable small- and mid-cap winners, BL Kashyap & Sons (up 20% to Rs 1449), Bhuruka Gases (up 20% to Rs 24.90), Hercules Hoists (up 20% to Rs 5182.60), AVT Natural Products (up 20% to Rs 105.40), and Fairfield Atlas (up 20% to Rs 67.55) surged.

Real-estate stocks gained on fresh buying on speculation that the Reserve Bank of India (RBI) may keep interest rates unchanged in its mid-term review of annual policy due on 30 October 2007. Earlier the street was expecting a 50 basis-point hike. 100 basis points equals 1%.

Shares from real estate pack advanced on fresh buying. Prominent gainers included Akruti Nirman (up 4.26% to Rs 986), Anant Raj Industries (up 5.85% to Rs 305), HDIL (up 2.18% to Rs 676.10), Mahindra Gesco (up 5.29% to Rs 571.85), and Indiabulls Real Estate (up 13.23% to Rs 633.75).

Blue Star galloped 20% at Rs 362.15 after its net profit jumped nearly 150% to Rs 45.97 crore on a 45.72% increase in sales to Rs 547.77 crore in Q2 September 2007 over Q2 September 2006. The results were declared during market hours today.

Castrol India rose 6.85% to Rs 288 on posting a 59.65 % rise in net profit to Rs 54.22 crore on a 3.56% rise in total income to Rs 439.7 crore in Q3 September 2007 over Q3 September 2006.The company announced the results during market hours today, 24 October 2007.

Cairn India soared 6.73% to Rs 204.65 on speculation that UK-based BP Plc may take over its parent Cairn Energy Plc. On successful takeover of parent, the acquirer will have to make a mandatory open offer for a 20% stake in the Indian arm.

Novartis India jumped 12.66% to Rs 327.40. Its net profit grew 70.1% to Rs 30.39 crore on 14.3% rise in sales to Rs 147.88 crore in Q2 September 2007 over Q2 September 2006. The company declared results during market hours today, 24 October 2007.

Rolta India moved up 9.76% to Rs 650.35. Earlier on 22 October 2007, the board of directors of the company had approved the proposal for issuing one bonus share for every one share held in the company

Suzlon Energy rose 9.63% to Rs 1,908.75. The company said on Tuesday (23 October 2007), that it would split its shares and list its Belgium-based group company Hansen Transmissions International NV on the London Stock Exchange.

Pidilite Industries soared 10.85% to Rs 182.50 after it reported a 69.06% rise in net profit to Rs 56.3 crore on a 19.21% increase in sales to Rs 377.2 crore in Q2 September 2007 over Q2 September 2006. The company announced the results after trading on 23 October 2007.

Union Bank of India rose 2.83% to Rs 159.90 on reporting 42.03% rise in net profit to Rs 275.78 crore on 31.21% rise in sales to Rs 2,525.65 crore in Q2 September 2007 over Q2 September 2006. The company announced the results during market hours today, 24 October 2007.

MIC Electronics slipped 5.42% to Rs 505. It posted net profit of Rs 9.84 crore in Q1 September 2007 on sales of Rs 75.43 crore. The company was listed on the exchanges on 12 January 2007. Therefore, comparable figures are not available. The company announced the numbers before market hours today, 24 October 2007.

Siemens gained 3% to Rs 1708 after it bagged a Rs 330-crore order from Tata Steel for providing power distribution network solutions for its greenfield steel plant at Kalinganagar, Orissa. The contract is to be executed by end of 2009.

GMR Infrastructure scaled up 1.86% to Rs 158.90 after GMR Hyderabad International Airport, 63% controlled by the company, entered into a joint venture with Brussels (Belgium)-based Sabena Flight Academy (SFA) to set up a modern aviation academy at Hyderabad. SFA is one of Europe's oldest and most respected pilot training academies and trains more than 300 cadre pilots every year. The company announced the joint venture after market hours yesterday, 23 October 2007.

Firstsource Solutions edged higher by 2.51% to Rs 73.60 after its board approved raising up to $275 million through foreign currency convertible bonds. The company made the announcement after market hours yesterday, 23 October 2007.

Britannia Industries jumped 4.82% to Rs 1471.05 after its net profit surged 128.8% to Rs 48.50 crore on a 19.9% rise in sales to Rs 658.80 crore in Q2 September 2007 over Q2 September 2006. The company declared the Q2 September 2007 results after market hours yesterday, 23 October 2007.

PTC India vaulted 5.40% to Rs 106.50 on posting a 31.79% rise in net profit to Rs 11.4 crore on a 11.76% jump in sales to Rs 1473.61 crore in Q2 September 2007 over Q2 September 2006.The company announced the results during market hours today, 24 October 2007. It also recommended a hike in the limit for holdings by foreign institutional investors (FIIs) to 60% of its equity capital from the present limit of 40%.

Punjab Tractors declined 0.80% to Rs 216.35 after it posted a 4.64% fall in net profit to Rs 9.8 crore on an 8.97% erosion in sales to Rs 206.9 crore in Q2 September 2007 over Q2 September 2006. The company announced the results after market hours on 23 October 2007.

European markets reversed early losses to post marginal gains today, 23 October 2007. Key benchmark indices from United Kingdom (up 0.44% to 6,542.70), Germany (down 0.12% to 7,833.47), and France (up 0.10% to 5,710.57), slipped

Asian markets reversed early gains to slide in the red today, 24 October 2007. Taiwan Weighted (down 0.63% at 9,442.62), South Korea's Seoul Composite (down 0.75% at 1,93.46), Hong Kong's Hang Seng (down 0.15% at 29,333.53), Singapore's Straits Times (down 1.25% at 3,649.12) and Japan's Nikkei (down 0.56% at 16,358.39), declined

Market regulator Securities Exchange Board of India (Sebi), after trading hours on Monday, 22 October 2007, provided partial breather to foreign institutional investors (FIIs) on the proposed restrictions in the use of participatory notes and said it would speed up regulatory clearance for foreigners keen to invest transparently. The minimum networth criterion for a foreign individual investor, who intends to invest directly, is set at $50 million, reports suggested.

On 16 October 2007, Sebi had proposed curbs on issuance of offshore derivative instruments (ODIs), also known as participatory (P) notes, based on assets under management of FIIs and prohibited sub-accounts of FIIs from issuing P notes. Its board would meet on 25 October 2007 to take a decision on these proposals.

Wall Street shares ended with a spurt yesterday, 23 October 2007, as investors uneasy about the economy were reassured by solid earnings from blue chips including Apple and American Express Company. The Dow Jones Industrial Average surged 109.26 points, or 0.81%, to 13,676.23. The Standard & Poor's 500 index rose 13.26 points, or 0.88%, to 1,519.59 while the Nasdaq Composite index gained 45.33 points, or 1.65%, to 2,799.26.

New York's main futures contract, light sweet crude for delivery in December, was down 37 cents at $84.90 a barrel, more than five dollars below the record high of $90.07 struck on Friday, 19 October 2007. Brent crude for December delivery slipped 30 cents to $82.55, off its all-time peak of $84.88 hit on Thursday, 18 October 2007

The Sensex had posted its biggest ever-single day point gain of 878.85 points, or 4.99%, to settle at 18,492.84 on Wednesday, 23 October 2007. The broad market index's previous biggest single-day point gain was on 9 October 2007, when it had jumped 788.85 points, or 4.51%, to 18,280.24.

The broader S&P CNX Nifty had scaled up 289.70 points, or 5.59%, to 5,473.70, on 23 October 2007.