Pre Session Commentary - July 31 2008

The Indian Market is expected to have positive opening as US markets closed with gains and Asian markets are trading mixed. On Wednesday, the Indian market closed heavy gains due to strong buying over the counters led by favorable global cues global cues and steep drop in crude oil price. The domestic market opened sharply higher tracking strong cues from the global markets. Further, market traded sharply higher without any sign of weakness and continued to gain ground through out of the trading session. NSE Nifty gained around 3% and ended above 4,300 mark and BSE Sensex closed with gains of more than 3% and ended above 14,200 level. All indices except FMCG closed in green. Out of which, Bank and Reality indices rallied to close with a gain of more than 5%. Along with this, the Metal, Capital Goods, Oil & Gas, IT and Power stocks also witnessed sustained buying from these baskets. The BSE Sensex closed higher by 495.67 points at 14,287.21 and NSE Nifty ended up by 127.35 points at 4,317.20. We expect that market may remain volatile during the trading session ahead of F&O expiry day and inflation number for the week ended 19th July 2008, which has to come out today evening.

On Wednesday, the US market was closed with gains influenced by the latest ADP employment report that showed an unexpected 9,000 increase in July private non-farm jobs. A news about Fed's extension of the length of its Term Securities Lending Facility program also added positive sentiment. These entire positive cues off sets the surge in crude. Crude advanced $4.58 to settle at $126.77 a barrel on the NYMEX.

The Dow Jones Industrial Average (DJIA) closed higher by 186.13 points at 11,583.69 along with S&P 500 index ended up by 21.06 points at 1,284.26 and NASDAQ closed higher by 10.10 points at 2,329.72.

Indian ADRs ended mixed. In technology sector, Patni Computers ended lower by (4.93%) along with Infosys by (0.69%) and Satyam by (0.40%) while Patni Computers remained unchanged. In banking sector, HDFC bank and ICICI bank dropped (2.03%) and (1.45%) respectively. In telecommunication sector, Tata Communication ended up by (3.49%) along with MTNL by (3.02%). Sterlite industries increased by (7.83%).

Today the major stock markets in Asia are trading mixed. Hang Seng index is trading higher by 68.19 points at 22,758.79 along with Taiwan Weighted trading up by 18.93 points at 7,089.28 while Japan's Nikkei dropped 78.93 points at 13,288.86.

The FIIs on Wednesday stood as net seller in equity and net buyer in debt. The gross equity purchased was Rs2,312.70 Crore and the gross debt purchased was Rs159.30 Crore while the gross equity sold stood at Rs2,3645.00 Crore and gross debt sold stood at Rs33.40 Crore. Therefore, the net investment of equity reported was (Rs332.30) Crore and net debt was Rs125.90 Crore.

Today, Nifty has support at 4,227 and resistance at 4,408 and BSE Sensex has support at 13,989 and resistance at 14,627.

Market may remain nervous

Market may resume on firm note after the Sensex reported profit of around 500 points in the last session. Major hike in crude oil price, mixed asian indices and major funds resorting to selling of equities in the last session could make the investors jittery from taking any fresh position. Among the key local indices, the Nifty could decline to 4270 - 4200 on the downside while on the upside there is a near term resistance at 4350. The Sensex has a likely support at 14150 and may face resistance at 14450.

US indices ended positve on Wednesday on the back of strong financial reports, rising consumer confidence and falling oil prices. While the Dow Jones gained by 186 points to close at 11,584, the Nasdaq was up marginally by 10 points at 2330.

Major Indian ADRs, too, buckled under selling pressure on the US bourses. Patni Computer led the slump and tumbled 4.93% while Tata Motors declined 4.73%. Dr Reddy, HDFC Bank, ICICI Bank, Infosys, Satyam and Rediff lost over 0.17-2% each. However, MTNL and VSNL gained above 3%.

Crude oil prices advanced sharply after a surprise decline in the nation's gasoline stockpile, and a forecast from Goldman Sachs that said crude could hit $149 a barrel by year's end. The Nymex light crude oil for September series raising by $4.58 to close at $126.77 a barrel. In the commodity space, the Comex gold slumped $14.10 to settle at $912.30 a troy ounce.

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Bullion metals end mixed

 Gold prices end considerably lower even though prices pare losses in last hours

Bullion metal prices once again dropped to its low levels in almost a month's time today, Wednesday, 30 July, 2008. Prices fell as the dollar strengthened. Going into close, it pared some of its losses but still ended considerably lower. But silver prices rose for the day.

Comex Gold for August delivery fell $13.6 (1.5%) to close at $902.9 ounce on the New York Mercantile Exchange. It fell to a low of $895.4 during intra day trading. Last week, it ended lower by $30 (3.2%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then.

This year, gold prices have gained 8.1% till date against a 8% drop for the dollar against the euro. Gold prices ended June, 2008 with a gain of 4.1%. The yellow metal ended second quarter with a marginal gain of 0.7%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, for April, prices closed lower by 6.3%.

For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.

On Monday, Comex silver futures for September delivery rose 9 cents (0.46%) to $17.465 an ounce. Silver has gained 18.7% in 2008 till date. For the second quarter, it had gained a paltry 1.4%.

Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies.

At the currency markets on Wednesday, the dollar rose earlier in the day in foreign-exchange trading after data based on a sampling of ADP payrolls indicated that July's private-sector employment rose by 9,000. Including some 20,000 government workers typically hired in a given month, the ADP index suggests U.S. nonfarm payrolls rose by about 30,000. But the dollar index which tracks the performance of the greenback against a basket of other currencies, pulled back a bit as oil prices gained more ground. The index was settled at 73.29, compared with 73.285 in the previous day.

At the crude market on Wednesday, crude-oil futures closed with a more than $4 per barrel gain finding support from the first drop in U.S. gasoline supplies in five weeks and a second-weekly decline in crude inventories. Production concerns tied to conflicts in Nigeria and rising tension in Iran also lent support. Crude for September delivery gained $4.58 to close at $126.77 a barrel on the New York Mercantile Exchange.

The weakening dollar and higher global demand for raw materials have led to records this year for commodities including gold. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. Gold and oil has climbed 34% and 60% since the past one year.

During last week of June, Federal Reserve yesterday sharpened its focus on inflation, saying that the upside risks to inflation have increased. Fed held its target for short-term interest rates steady at 2%. Since last September, Fed has axed interest rates seven times and brought it down to 2%. On the other hand, after keeping interest rates unchanged at 4% since June, 2007, ECB hiked the same to 4.25% in June, 2008.

Gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. In 2006, silver had jumped 46% while gold gained 23%.

At the MCX, gold prices for August delivery closed lower by Rs 142 (1.12%) at Rs 12,477 per 10 grams. Prices rose to a high of Rs 12,630 per 10 grams and fell to a low of Rs 12,284 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 174 (0.71%) higher at Rs 24,482/Kg. Prices opened at Rs 24,305/kg and rose to a high of Rs 24,560/Kg during the day's trading.

Crude registers strong gains

 Prices rise by almost $5 on inventory data

Crude prices registered sharp rise in prices today, Wednesday, 30 July, 2008. Prices rose after Energy Department's weekly inventory report showed that last week registered first drop in gasoline inventories in almost five weeks and also showed a second weekly decline in the crude inventories.

Crude-oil futures for light sweet crude for September delivery closed at $126.77/barrel (higher by 4.54/barrel or 3.6%) on the New York Mercantile Exchange. Crude prices had registered drop in the past two days and yesterday it fell by almost $3. Last week, prices coughed up $6.5 (4.8%). It's now 14% lower than the $147.27 record high hit last on Thursday, 10 July, 2008.

EIA reported today that crude supplies fell by 100,000 barrels to 295.2 million barrels for the week ended 25 July. U.S. refinery activity was at 87.2% of capacity last week. That's up slightly from 87.1% the previous week.

EIA also reported that as for the oil products, motor gasoline supplies dropped by 3.5 million barrels to 213.6 million last week following a total climb of more than 8 million barrels between the weeks ended 27 June and 18 July. Distillate inventories, which include heating oil, were up 2.4 million at 130.5 million.

The increase in gasoline supplies came even as demand for motor gasoline stood at an average of about 9.4 million barrels per day over the past four weeks, down 2.4% from the same time a year ago.

At the currency markets on Wednesday, the dollar rose earlier in the day in foreign-exchange trading after data based on a sampling of ADP payrolls indicated that July's private-sector employment rose by 9,000. Including some 20,000 government workers typically hired in a given month, the ADP index suggests U.S. nonfarm payrolls rose by about 30,000. But the dollar index which tracks the performance of the greenback against a basket of other currencies, pulled back a bit as oil prices gained more ground. The index was settled at 73.29, compared with 73.285 in the previous day.

Crude prices gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. It ended June 2008 higher by 9.9%. Prices are 62% higher than a year ago. For the year, crude is up by 32% till date.

Against this background, September reformulated gasoline rose by 12.7 cents to close at $3.1399 a gallon while September heating oil added 4.7 cents to end at $3.5458 a gallon.

Natural-gas futures finished higher ahead of tomorrow's update on natural-gas supplies from the EIA. September natural-gas futures rose 11.8 cents to close at $9.248 per million British thermal units.

At the MCX, crude oil for August delivery closed at Rs 5,347/barrel, higher by Rs 168 (3.2%) against previous day's close. Natural gas for August delivery closed at Rs 392.5/mmbtu, higher by Rs 1.1/mmbtu (0.3%).

Energy Department will natural gas inventory data tomorrow covering the week ended 25 July.

BSE Bulk Deals to Watch - July 30 2008

 Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
30/7/2008 590059 BIHAR TUBES APL INFRASTRUCTURE PRIVATE LIM B 1545000 156.75
30/7/2008 590059 BIHAR TUBES RAJASHTHAN GLOBAL SECURITIES LTD S 1600000 156.75
30/7/2008 533006 BIRLA COTSYN N D NISSAR B 765355 11.03
30/7/2008 533006 BIRLA COTSYN H.J.SECURITIES PVT.LTD. B 1329331 9.90
30/7/2008 533006 BIRLA COTSYN ADARSH FINVEST PRIVATE LTD B 1090500 9.77
30/7/2008 533006 BIRLA COTSYN N D NISSAR S 765355 11.03
30/7/2008 533006 BIRLA COTSYN H.J.SECURITIES PVT.LTD. S 1329331 9.89
30/7/2008 533006 BIRLA COTSYN JATIA FINANCE LTD S 864870 9.27
30/7/2008 500078 CAMP ALLI PR SUMARU ENTERPRISES PRIVATE LTD B 55000 85.55
30/7/2008 532836 GREMAC INFRA MAVI INVESTMENT FUND LTD S 150000 88.01
30/7/2008 531084 INDOCASTLE M INDOCITY INFOTECH LTD S 52700 13.95
30/7/2008 512185 IOL NET COM JAROLI VINCOM PVT LTD B 170000 80.54
30/7/2008 530885 JAISAL SECUR VENUGOPAL REDDY S B 25000 37.49
30/7/2008 530885 JAISAL SECUR CANOS TRADING PVT LTD. S 20000 37.50
30/7/2008 500277 MIDINDI INDU ALKEN MANAGEMENT AND FINANCIAL S B 90064 2.97
30/7/2008 532606 PAREKH ALUM PIONEER NIRMAN INDIA PRIVATE L B 147559 142.38
30/7/2008 514300 PIONER EMBRO ANAND YOGESH SHARES AND CONSULTANCY PVT LTD B 68500 45.72
30/7/2008 514300 PIONER EMBRO GOPAL TRADERS S 65173 45.75
30/7/2008 500302 PIRAMA HEALT THE SWASTIK SAFE DEPOSIT B 1390000 315.00
30/7/2008 500302 PIRAMA HEALT URVI ASHOK PIRAMAL S 1390000 315.00
30/7/2008 531646 RFL INTERNAT KANAK B MEHTA B 26000 0.70
30/7/2008 500389 SILVERLINE T APEX SECURITIES B 466923 19.00
30/7/2008 500389 SILVERLINE T SHALANI DHOOP PVT LTD B 454232 19.02
30/7/2008 500389 SILVERLINE T APEX SECURITIES S 247123 18.97
30/7/2008 500389 SILVERLINE T BSMA LTD S 950000 18.82
30/7/2008 500389 SILVERLINE T SHALANI DHOOP PVT LTD S 495578 19.02
30/7/2008 504398 SJ CORP LTD RAMESH D. PATEL B 2500 446.80
30/7/2008 504398 SJ CORP LTD SURBHI DHANANJAYA DESAI S 1500 446.80
30/7/2008 504398 SJ CORP LTD DHANANJAYA SUSHILCHANDRA DESAI S 1000 446.80
30/7/2008 517224 SUJANA UNIV S V ENTERPRISES B 1046170 11.22
30/7/2008 517224 SUJANA UNIV S V ENTERPRISES S 1046170 10.90
30/7/2008 532887 SUJANATOWER LIVE STAR MARKETING PVT LTD S 220000 75.00
30/7/2008 507785 TAINWA CHE P BHAGWANDAS HASHMATRAI MELWANI S 200000 13.01
30/7/2008 524394 VIMTA LABS L QUEST PORTFOLIO SERVICES P.LTD. B 200000 47.20
30/7/2008 524394 VIMTA LABS L DHARAMSHI BROKING PVT.LTD. S 200000 47.20
30/7/2008 517498 WEBEL SL ENE S L AGARWAL B 40000 232.00
30/7/2008 517498 WEBEL SL ENE GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD S 40000 232.00

NSE Bulk Deals to Watch - July 30 2008

 Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
30-JUL-2008,ADHUNIK,Adhunik Metaliks Limited,CLEARWATER CAPITAL PARTNERS INVESTMENTS LTD.,BUY,610000,113.73,-
30-JUL-2008,ALEMBICLTD,Alembic Limited,MERRILL LYNCH INTERNATIONAL LTD,BUY,3075323,42.00,-
30-JUL-2008,BAJAJHLDNG,Bajaj Holdings & Invs Ltd,SANRAJ NAYAN INVESTMENTS PRIVATE LIMITED,BUY,2500000,394.99,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,ADROIT FINANCIAL SERVICES PVT LTD,BUY,1796580,10.91,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,AYODHYAPATI INVESTMENT PVT.LTD,BUY,608900,10.38,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,615966,10.35,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,NISSAR BROTHERS,BUY,1341622,10.90,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,PRAKASH & CO,BUY,1406962,11.01,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,PRASHANT JAYANTILAL PATEL,BUY,1341755,11.40,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,SS CORPORATE SECURITIES LIMITED,BUY,769282,11.43,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,TRANSGLOBAL SECURITIES LTD.,BUY,3706899,10.77,-
30-JUL-2008,CRISIL,CRISIL Limited,CLSA (MAURITIUS) LIMITED,BUY,122816,3605.00,-
30-JUL-2008,FIRSTWIN,First Winner Industries L,MLJ FOODS PVT LTD,BUY,91200,120.81,-
30-JUL-2008,FIRSTWIN,First Winner Industries L,SCB CORPORATION PROP SUNIL BAMCHA,BUY,150003,124.15,-
30-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,BUY,190627,118.96,-
30-JUL-2008,GODFRYPHLP,Godfrey Phillips Ltd.,CLSA (MAURITIUS) LIMITED,BUY,72556,1299.00,-
30-JUL-2008,GRANULES,Granules India Limited,KRISHNA PRASAD CHIGURUPATI,BUY,326565,53.00,-
30-JUL-2008,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,6798535,25.78,-
30-JUL-2008,PIONEEREMB,Pioneer Embroideries Limi,ANAND YOGESH SHARES AND CONSULTANCY PVT LTD,BUY,68500,44.82,-
30-JUL-2008,ADHUNIK,Adhunik Metaliks Limited,ABN AMRO BANK N.V. LONDON BRANCH,SELL,643276,111.83,-
30-JUL-2008,ALEMBICLTD,Alembic Limited,FIDELITY TRUSTEE COMPANY PRIVATE LIMITED A/C FIDELITY EQUITY,SELL,3203976,42.01,-
30-JUL-2008,BAJAJHLDNG,Bajaj Holdings & Invs Ltd,T. ROWE PRICE INTERNATIONAL A/C NEW ASIA FUND,SELL,1412549,395.00,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,ADROIT FINANCIAL SERVICES PVT LTD,SELL,1796580,10.85,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,AYODHYAPATI INVESTMENT PVT.LTD,SELL,1132900,10.67,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,BHAGYANAGAR METALS LIMITED,SELL,700000,12.15,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,615966,10.39,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,NISSAR BROTHERS,SELL,1341622,10.91,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,PRAKASH & CO,SELL,1406962,11.25,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,PRASHANT JAYANTILAL PATEL,SELL,1341755,11.43,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,SATI SALES PVT LTD,SELL,2030000,12.17,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,SS CORPORATE SECURITIES LIMITED,SELL,769282,10.24,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,TRANSGLOBAL SECURITIES LTD.,SELL,3701599,10.81,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,UKS OIL (P) LIMITED,SELL,731097,12.25,-
30-JUL-2008,BIRLACOT,Birla Cotsyn (India) Limi,VICKY RAJESHBHAI JHAVERI,SELL,1374012,10.10,-
30-JUL-2008,CRISIL,CRISIL Limited,CALYON,SELL,122816,3605.00,-
30-JUL-2008,FIRSTWIN,First Winner Industries L,MLJ FOODS PVT LTD,SELL,91200,126.50,-
30-JUL-2008,FIRSTWIN,First Winner Industries L,SCB CORPORATION PROP SUNIL BAMCHA,SELL,223003,121.07,-
30-JUL-2008,FIRSTWIN,First Winner Industries L,TRANSGLOBAL SECURITIES LTD.,SELL,190627,119.02,-
30-JUL-2008,GODFRYPHLP,Godfrey Phillips Ltd.,CALYON,SELL,72556,1299.00,-
30-JUL-2008,GRANULES,Granules India Limited,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,324075,53.00,-
30-JUL-2008,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,6798535,25.81,-
30-JUL-2008,PIONEEREMB,Pioneer Embroideries Limi,GOPAL TRADERS,SELL,71826,44.77,-

No new gas connections

Faced with mounting losses, Indian Oil Corp, the nation's largest fuel retailer, has 'temporarily' stopped giving new domestic cooking gas (LPG) connections, a move that has led a wait list of over 2 lakh.

"We have not bought new cylinders for almost one year now due to cash crunch (and so) we do not have equipment to give new connections," IOC Chairman Sarthak Behuria told reporters here.

IOC loses Rs 338.53 on sale of every 14.2 kg LPG cylinder and its daily loss on sale of the domestic fuel is about Rs 33 crore.

"We do not have working capital to service new consumers. So temporarily we have stopped issuing new connections," Behuria said. "Consumers are welcome to enrol but we have not given new connections since April."

Behuria said the move has led to a wait list of over two lakh consumers. "These are difficult times. We are faced with huge working capital shortage."

IOC, which has 56 per cent of the over 9.8 crore LPG consumers in the country, is projected to lose Rs 1,21,015 crore on sale of petrol, diesel, domestic LPG and kerosene in the current fiscal as government has not allowed it to raise retail prices in line with rise in cost.

The company also also resorted other measures to shore up its working capital including asking dealers to pay for supplies in advance and stopping consumer credits.

"We are also trying to restrict diversion (of domestic LPG) for commercial use," Behuria said.

The subsidised domestic LPG cylinder often finds way to hotels and restaurants and industries and automobiles who are supposed to use market priced gas.

Post Session Commentary - July 30 2008

The domestic market rebounded from yesterday's losses to close with heavy gains on sustained buying over the ground led by favorable global cues and drop in crude oil prices. Indian market opened higher following positive global cues as crude declined to three month lows. Crude oil prices dropped by $2.54 to close at $122.19 a barrel on the NYMEX. Further, market traded sharply higher without any sign of weakness for through out of trading session. The interest rate sensitive like Bank and Real Estate shares, who were the major laggards yesterday made a smart come back in today session to conclude the day with hefty gains. NSE Nifty gained around 3% and ended above 4,300 mark. BSE Sensex closed with gains of more than 3% and ended above 14,200 level. The sharp rise was due to the heavy buying activities over the counters across all indices except FMCG stocks. Out of which, Bank and Reality indices rallied to close with a gain of more than 5%. Along with this, the Metal, Capital Goods, Oil & Gas, IT and Power stocks also witnessed heavy buying from these baskets. The market breadth was strong as 1784 stocks closed in green while 857 stocks closed in red and 83 stocks remained unchanged.

The BSE Sensex closed higher by 495.67 points at 14,287.21 and NSE Nifty ended up by 127.35 points at 4,317.20. The BSE Mid Caps closed with gains of 92.43 points at 5,581.01 and Small Cap ended up by 96.59 points 6,927.60. The BSE Sensex touched intraday high of 14,322.67 and intraday low of 14,002.19.

Gainers from the BSE are HDFC (7.99%), Tata Steel (7.83%), Tata Power (6.92%), Reliance Infra (6.90%), HDFC Bank Ltd (6.18%), Reliance Infra (10.36%), Sterlite In (5.13%), SBI 4.97%), Tata Motors (4.91%) and Wipro Ltd (4.90%).

Among the Sensex 30 pack 28 stocks closes in green and only two closed in red. Losers from the BSE are NTPC Ltd (4.23%) followed by ITC Ltd (1.11%).

The Metal index closed up by 568.34 points at 12,698.70. Gainers are Jindal Steel (8.92%), Tata Steel (7.83%), Hindustan Zinc (6.77%), Sterlite In (5.13%), NMDC Ltd (5.00%), and Gujarat Nre C (3.81%).

The BSE Bank index closed higher by 323.02 points at 6,522.62. Major gainers are Axis Bank (9.60%), Bank of Baroda (9.24%), Union Bank (6.69%), HDFC Bank Ltd (6.18%), Bank of India (5.37%), PNB (4.97%), ICICI Bank Ltd (4.59%), and Yes Bank (4.52%).

The BSE Capital Goods index gained 307.77 points to close at 11,628.37. Major gainers are Punj Lloyd (11.88%), Reliance Industrial Infra (5.00%), Walchand Ind (5.00%), BHEL (4.83%), Crompton Greaves (4.45%) and Jyoti Struct (3.95%).

The Oil & Gas index ended up by 304.17 points at 9,607.74. As Reliance Natural Resources (11.15%), BPCL (6.03%), IOC (5.16%), Reliance (3.74%), Gail India (3.37%) and Cairn India (3.37%) closed in positive territory.

The BSE Reality index ended higher by 244.17 points at 5,041.88. As Indiabulls Real (13.48%), Anant Raj (6.98%), Ansal Infra (5.72%), DLF Ltd (3.98%), Akruti City (3.88%), Unitech Ltd (3.41%), and Pheonix Mill (2.95%) closed in positive territory.

The BSE FMCG index lost 3.06 points to close at 2,133.22. Major losers are REI agro Ltd (4.78%) and ITC Ltd (1.11%).

Sensex garners 496 points on strong global cues, fall in oil

Rally in global equities and fall in oil prices aided a rebound on the domestic bourses today. Bulls struck back with vengeance as the market recouped most of yesterday (29 July 2008)'s losses caused by further monetary tightening by the Reserve Bank of India. Sensex gained more than 525 points at the day's highs hit in late trade. The barometer index BSE Sensex breached 14,000 mark in early trade and the market remained firm throughout the day.

Reliance Industries (RIL) surged. Banking stocks bounced back from yesterday (29 July 2008)'s steep fall. Metal, IT and realty and power shares also gained. Except BSE FMCG index all the other sectoral indices on BSE gained. HDFC, Tata Steel rose more than 7.5% while Tata Power Company and Reliance Infrastructure rose more than close to 7% each. The market breadth was strong as buying was witnessed across the board.

New York's main contract, light sweet crude for September 2008 delivery slumped $2.54 to $122.19 a barrel on the New York Mercantile Exchange yesterday, 29 July 2008.

The 30-share BSE Sensex jumped 495.67 points or 3.59% at 14,287.21. The index gained 531.13 points at the day's high of 14,322.67, hit in late trade. The index gained 210.65 at the day's low of 14,002.19 at the onset of the trading session.

The broader based S&P CNX Nifty jumped 123.70 points or 2.95% at 4,313.55. Nifty July 2008 futures were at 4330, at a premium of 16.45 points as compared to spot closing of 4313.55.

The barometer index BSE Sensex is down 5,999.78 points or 29.57% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,919.56 points or 32.62% away from its all-time high of 21,206.77 struck on 10 January 2008.

The BSE clocked a turnover of Rs 5,273 crore today as compared to a turnover of Rs 5,103.03 crore yesterday, 29 July 2008. NSE's futures & options (F&O) segment turnover was Rs 58,543.91 crore, which was lower than Rs 64,804.21 crore on Tuesday, 29 July 2008. July 2008 derivatives contracts will expire tomorrow, 31 July 2008.

The BSE Mid-Cap index was rose 1.68% to 5,581.01 and the BSE Small-Cap index was up 1.41% to 6,927.08. Both these indices underperformed Sensex.

BSE Bankex (up 5.21% to 6,522.62), BSE Realty index (up 5.09% to 5,041.88), BSE Metal index (up 4.69% to 12,698.70), BSE IT index (up 3.72% to 3,722.09) outperformed Sensex.

BSE FMCG index (down 0.14% to 2,133.22), BSE Consumer Durables index (up 1.04% to 3,659.20), BSE HealthCare (up 1.81% to 4,207.91), BSE PSU index (up 2.49% to 6,676.91), BSE Capital Goods index (up 2.72% to 11,628.37), BSE Auto index (up 2.79% to 3,672.86), BSE Power index (up 3.25% to 2,554.22), BSE Oil & Gas (up 3.27% to 9,607.74), BSE Teck index (up 3.28% to 3,030.52) underperformed Sensex.

The market breadth was strong on BSE with 1,784 shares advancing as compared to 857 that declined. 83 remained unchanged.

As per the provisional figures on BSE, foreign institutional investors sold shares worth Rs 628.47 crore while domestic funds bought shares worth Rs 672.12 crore today, 30 July 2008.

India's largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 3.74% to Rs 2,163.20.

Bank stocks recovered from Tuesday's steep fall caused by further monetary tightening by the Reserve Bank of India at its quarterly policy review. HDFC Bank (up 6.18% to Rs 1,092.50), ICICI Bank (up 4.59% to Rs 635.30) and State Bank of India (up 4.97% to Rs 1,386.65) edged higher.

Realty stocks surged. Indiabulls Real Estate (up 13.48% to Rs 299.65), DLF (up 3.98% to Rs 490.70) and Unitech (up 3.41% to Rs 162.15) edged higher.

Metal stocks rose. Tata Steel (up 7.83% to Rs 630.05), Steel Authority of India (up 3.58% to Rs 136.05), Hindalco Industries (up 0.65% to Rs 140.15) and Sterlite Industries (up 5.13% to Rs 622.45) edged higher.

IT stocks gained. Satyam Computer Services (up 3.12% to Rs 380.20), Wipro (up 4.9% to Rs 422.45), Infosys (up 4.07% to Rs 1,602.60) and Tata Consultancy Services (up 3.76% to Rs 838.60) edged higher.

Power stocks rose. Tata Power Company (up 6.92% to Rs 1,115.50), Reliance Infrastructure (up 6.9% to Rs 970.80), Reliance Power (up 5.77% to Rs 163.05) edged higher.

HDFC (up 7.99% to Rs 2,273.95), Bharat Heavy Electricals (up 4.83% to Rs 1,668.95), Bharti Airtel (up 3.99% to Rs 809.95), were major gainers from Sensex pack.

India's largest truckmaker by sales Tata Motors rose 4.91% to Rs 416.30. The company today reported 30.13% fall in net profit to Rs 326.11 crore on 17.88% rise in total income to Rs 7,244.05 crore in Q1 June 2008 over Q1 June 2007.

India's largest tractor maker by sales Mahindra & Mahindra rose 2.66% to Rs 513.50. The company's net profit fell 16.66% to Rs 159.3 crore on 25.99% rise in total income to Rs 3331.8 crore in Q1 June 2008 over Q1 June 2007. The company's board approved acquisition of all the business assets of Kinetic Motor Company (KMCL), a two-wheeler company for Rs 110 crore.

Power generation major NTPC fell 4.23% to Rs 170.90. On Tuesday, 29 July 2008, NTPC reported 27.1% fall in net to Rs 1726.53 crore on 5.87% growth in total income to Rs 10256.70 crore in Q1 June 2008 over Q1 June 2007.

India's largest motorbike maker by sales Hero Honda Motor rose 6.27% to Rs 782.30. On Tuesday, the company reported 44% surge in profit after tax to Rs 272.87 crore on 16% growth in turnover to Rs 2890.25 crore.

Birla Cotsyn clocked the highest volume of 5.2 crore shares on BSE. Reliance Natural Resources (3.88 crore shares), IFCI (94.94 lakh shares), Ispat Industries (91.81 lakh shares), Reliance Petroleum (82.98 lakh shares) were the other volume toppers in that order.

Reliance Natural Resources clocked the highest turnover of Rs 374.84 crore on BSE. Reliance Capital (Rs 233.86 crore), Larsen & Toubro (Rs 178.11 crore), Reliance Industries (Rs 166.52 crore) and Housing Development Finance Corporation (Rs 145.42 crore) were the other turnover toppers in that order.

US stocks surged overnight, benefiting from a steep drop in oil prices and an unexpected rise in US consumer confidence after Merrill Lynch's announcement of yet another write-down and capital-raising exercise, raising hopes that the turning point in the year-long credit crisis was close. The Dow Jones Industrial Average rose 266.48 points, or 2.39 per cent, at 11,397.56, the Standard & Poor's 500 Index gained 28.82 points, or 2.33 per cent, at 1,263.19 and the Nasdaq Composite Index rose 55.40 points, or 2.45 per cent, at 2,319.62.

Asian markets were trading higher today, 30 July 2008. Japan's Nikkei, Hong Kong's Hang Seng, Taiwan's Taiwan Weighted, Singapore's Straits Times and South Korea's Seoul Composite were up by between 0.67% to 2.04%. China's Shanghai Composite fell 0.7%.

European markets edged higher. France's CAC 40, Germany's DAX and UK's FTSE 100 were up by between 0.63% to 1.29%.

In the near term, the domestic bourses may remain volatile ahead of expiry of futures & options contracts for July 2008 series on Thursday, 31 July 2008. As per reports, marketwide rollover of positions from July 2008 series to August 2008 series stood at 44%, while that of Nifty was 48%, as of Tuesday 29 July 2008.

The market had slumped yesterday, 29 July 2008 after the Reserve Bank of India (RBI) raised cash reserve ratio (CRR) by 25 basis points and repo rate by 50 basis points at quarterly review of the monetary policy. The 30 share BSE Sensex plunged 557.57 points or 3.89% at 13,791.54 and the broader based S&P CNX Nifty was down 142.25 points or 3.28% at 4,189.85, on that day. The tone of the monetary policy was extremely hawkish.