Tuesday, October 16, 2007

Market ends flat amidst volatility

The weak global markets played a spoilsport for the domestic bourses as they ended flat note today. The market had earlier extended yesterday’s robust gains by opening on a positive note and soon surging to hit its all-time high at the onset of the trading session. It had later slipped into the red before recovering from lower level.

Poor corporate earnings and renewed worries about credit hit Asian and European stocks on Tuesday, 16 October 2007, while record high oil prices threatened to add pressure to world growth.

Index heavyweight Reliance Industries (RIL) edged lower. ICICI Bank and Hindalco Industries surged in late trade. Power stocks surged. Bharti Airtel recovered from lower level. State Bank of India and Hindustan Unilever were under selling pressure. Mid-cap and small-cap indices outperformed Sensex. Market breadth was weak. Reliance Energy, Reliance Communications, NTPC and ICICI Bank hit fresh all-time highs.

The BSE 30-share Sensex lost 6.81 points, or 0.04%, to 19,051.86. It opened on a positive note today and soon rose to hit its all-time high of 19,174.45. At day's high of 19,174.45, Sensex had risen 115.78 points for the day. Sensex hit a low of 18,777.75 in mid-afternoon trade. At day’s low of 18,777.75, Sensex had lost 280.92 points for the day.

The broader based S&P CNX Nifty was down 2.35 points, or 0.04%, to 5,668.05. It hit all-time high of 5,708.35 in early trade.

Of the 30 shares of the Sensex, 12 moved up, while the remaining were trading down. The market breadth was weak on BSE: 1183 scrips advanced, 1538 declined, while 367 remained unchanged.

BSE clocked a turnover of Rs 9768 crore compared to Monday (15 October 2007)'s Rs 10,424.31 crore.

NSE futures & options (F&O) segment clocked a turnover of Rs 90751.74 crore today, 16 October 2007 compared to a turnover of 76,830.02 crore on Monday, 15 October 2007.

Nifty October 2007 futures were at 5,668, a discount of 0.05 points over the spot price of 5,668.05.

The BSE Mid Cap index rose 0.85% to 7,782.67 and BSE Small Cap index rose 0.47% to 9,356.13. Both these indices outperformed market.

BSE Bankex (up 2.75% to 9,974.13), BSE Capital Goods (down 0.03% to 17,113.94), BSE Realty (up 1.1% to 10,187.31), BSE Health Care (up 0.31% to 3,854.02), BSE Metal (down 0.27% to 16,156.67) outperformed Sensex.

BSE PSU index (down 0.22% to 9,136.32), BSE IT index (down 1.77% to 4,629.09), BSE Auto (down 0.26% to 5,598.78) underperformed Sensex.

Hindalco Industries rose 4.55% to Rs 197.45. It hit a 52 week-high of Rs 201.40 today.

Banking stocks gained. ICICI Bank rose 5.48% to Rs 1,156.75 and was the top gainer from the Sensex pack. It hit an all-time high of Rs 1,179.90 today. The stock surged on reports that bank’s private equity arm ICICI Venture Funds Management will float a $2 billion real estate fund next month.

HDFC Bank rose 0.95% to Rs 1,504.60. However, State Bank of India declined 1.67% to Rs 1,924.35.

India’s largest private company in terms of market capitalization and oil refiner Reliance Industries (RIL) declined 0.59% to Rs 2,648.30. The stock came off session's high of Rs 2,699. It hit a low of Rs 2,617.10

Bharti Airtel declined 1.5% to Rs 1,109.80. It recoverd from day's low of Rs 1,090.25.

Infosys was down 3.14% to Rs 1,868.25 and was the top loser from Sensex pack. The stock came off session's low of Rs 1,843.10.

Hindustan Unilver (down 3.08% to Rs 212.45), Mahindra & Mahindra (down 2.34% to Rs 814.80), Larsen & Toubro (down 2.02% to Rs 3,346.25) edged lower.

Power stocks surged. NTPC rose 1.96% to Rs 231.25. It hit an all-time high of Rs 234.90 today. Power Grid Corporation India (up 9.93% to Rs 126.80), Tata Power Company (up 23.49% to Rs 1,370.90) edged higher.

Tata Power Company galloped 23.49% to Rs 1,370.90 on reports that it is one of the bidders for 4,000-mega watt Krishnapatnam ultra mega power project in Andhra Pradesh.

Reliance Energy rose 3.09% to Rs 1,904.40. It hit an all-time high of Rs 1,959 today.

Maruti Suzuki India rose 2.28% to Rs 1,186.80.

Reliance Communications rose 1.06% to Rs 760.65. It hit an all time high of Rs 778.50 today.

Welspun Gujarat Stahl Rohren was down 0.21% to Rs 338.95 on reports that a private equity firm bought 5% stake in the company through secondary market route.

Patel Engineering rose 16.95% to Rs 764.65, on signing memorandum of understanding with government of Arunachal Pradesh for setting up a 100-mega hydro electric power project.

TCS was down 0.52% to Rs 1,068.10 after it reported 6.82% growth in net profit to Rs 1147.11 crore in Q2 September 2007 over Q1 June 2007.

Mercator Lines rose 5.46% to Rs 101.40 on reports the company is planning a foray into the lucrative area of dredging.

Housing Development & Infrastructure moved declined 1.11% to Rs 756.65 after the company said it received a slum development project.

Reliance Industrial Infrastructure jumped 5% to Rs 2384.90 despite posting a mere 4% rise in net profit in Q2 September 2007 over Q2 September 2006.

Shree Dinesh Mills (up 20% to Rs 1,798.65), Parry Agro Industries (up 20% to Rs 1,594.05), GSB Finance (up 20% to Rs 12.72) and Ambika Cotton (up 20% to Rs 184.20) edged higher.

Peninsula Land (down 79.02% to Rs 128.15), Sky Industries (down 9.75% to Rs 104.10) and Toyo Rolls (down 15.69% to Rs 267.95) edged lower.

Power Grid Corporation of India was the volume topper on BSE, notching total volume of 3.55 crore shares. Tata Teleservices (Maharashtra) clocked volume of 3.52 crore shares. IFCI came third in terms of total volumes on BSE. The stock declined 2.67% to Rs 85.80 on 1.76 crore shares. Reliance Natural Resources clocked volumes of 1.71 crore shares. The stock slipped 0.42% to Rs 95.65. Reliance Petroleum was the fifth most traded counter with volumes of 1.21 crore shares. The stock rose 1.30% to Rs 183.40

European markets opened weak today. France’s CAC 40 (down 0.94% to 5,753.60), Germany’s DAX (down 0.36% to 7,939.45) and UK’s FTSE 100 (down 0.47% to 6,611.60) edged lower. European stocks fell after telecoms equipment group Ericsson warned of lower-than-forecast third-quarter earnings. The Ericsson warning added to pressure that set in on Monday, 15 October 2007, when banking giant Citigroup issued a gloomy outlook mainly based on credit worries.

Asian markets were mostly in the red today 16 October 2007. Japan's Nikkei (down 1.27% at 17,137.90), Singapore's Straits Times (down 1.33% at 3,810.72), Hong Kong's Hang Seng (down 1.98% at 29,954.55) and South Korea's Seoul Composite (down 1.46% at 2,005.76) declined. Taiwan's Taiwan Weighted (up 0.78% at 9,592.47) advanced.

Crude oil prices held firm above $86 a barrel on Tuesday, 16 October 2007 after soaring nearly 3% to a record high on Monday, extending its recent rally to a sixth day amid tension between Turkey and Iraq plus anxiety over winter supplies. US crude rose 12 cents to $86.25 a barrel. London Brent crude rose $2.20 higher at $82.75.

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