Wednesday, 13 February, 2008

Sensex spurts 341 points; banking, metal at the fore

Positive global cues and some hectic buying in large-caps assisted the Indian market breach five-day losing streak. The indices spurted in the initial trade but profit booking at higher levels pulled the market in the afternoon trade. But relentless buying in the large-caps in the last hour of trade led the indices end on a firm note.

Banking, realty and metal stocks were in the demand. 23 out of 30 stocks from the Sensex pack gained. The market breadth, which was positive in early trade, turned extremely weak as small and mid-cap shares came under selling pressure.

European markets, which opened after Indian markets, were trading in the red. Asian markets, which opened before Indian markets, finished on a mixed note.

The 30-share BSE Sensex rose 341.13 points or 2.05% at 16,949.14. Sensex gained 533.05 points at the day's high of 17,141.06, hit in the mid-morning trade.

The broader CNX S&P Nifty rose 91.20 points or 1.88% at 4929.45.

The BSE Mid-Cap index rose 0.24% at 7,075.53, while the BSE Small-Cap slipped 1.35% at 9,049.70. Both these indices underperformed the Sensex.

The market breadth was extremely weak: On BSE 769 stocks advanced as compared to 1940 that declined. 33 stocks remained unchanged.

BSE clocked a turnover of Rs 5,647 crore compared to Tuesday (12 February 2008)'s Rs 5,499.03 crore.

The Nifty February 2008 futures settled at 4908.90, at a discount of 20.55 points as compared to the spot closing of 4929.45.

The NSE's futures & options (F&O) segment turnover was Rs 37555.25 crore, which was higher than Rs 36223.50 crore on Tuesday, 12 February 2008.

Among the Sensex gainers, Tata Steel soared 6.72% to Rs 758.20, ITC jumped 5.98% to Rs 195.85, Bharat Heavy Electricals gained 5.52% to Rs 1981.75, HDFC Bank climbed 4.87% to Rs 14673.05 and Housing Development Finance Corporation rose 3.91% to Rs 2724.95.

Among the Sensex losers, Cipla slipped 3.70% to Rs 179.45, Reliance Communication skid 3.07% to Rs 558.05, Wipro shed 2.81% to Rs 409.95, Bajaj Auto fell 2.37% to Rs 2022.20 and Hindalco Industries fell 1.28% to Rs 149.95.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 2.70% at Rs 2386.90. The company said it has discovered gas in a deepwater block in the Krishna basin. The block KG-DWN-2003/1 covers an area of 3,288 square kilometres. RIL holds 90% participating interest (PI) and Hardy Exploration and Production India Inc holds balance 10% in the block.

Hindustan Unilever rose 0.18% to Rs 194.05, off its day's low of Rs 190. The company reported 23.53% rise in net profit to Rs 6314.40 crore on 17.90% rise in total income to Rs 3847.10 crore in Q4 December 2007 over Q4 December 2006. The results were announced during trading hours today, 13 February 2008.

The BSE Realty index rose 4.27% to 9,428.89. Unitech spurted 14.52% to Rs 354.45, Housing Development and Infrastructure jumped 5.57% to Rs 812.55, Ansal properties & Infrastructure climbed 4.45% to Rs 197 and DLF rose 2.79% to Rs 815.

The BSE Metal index rose 3.51% to 14,774.31. Steel Authority of India jumped 5.95% to Rs 198.70, Jindal Steel & Power climbed 5.28% to Rs 2,137.90, Gujarat NRE Coke flared up 4.49% to Rs 119.80, Sterlite Industries gained 4.46% to Rs 737.90 and Bhushan Steel rose 4.35% to Rs 951.95.

The BSE Bankex rose 2.79% to 10,143.07. India’s largest private sector bank by assets ICICI Bank rose 3.34% to Rs 1099.25. Bank of Baroda spurted 6.59% to Rs 385.50, Bank of India jumped 5.70% to Rs 365.45, Kotak Mahindra Bank flared up 3.03% to Rs 843.35 and State Bank of India gained 2.89% to Rs 2,116.95.

Private sector lender Centurion Bank of Punjab jumped 3.99% to Rs 48.20. The bank is reportedly in talks with financial institutions and large banks for a possible merger. New generation banks like ICICI Bank and HDFC Bank are also believed to be interested, reports added.

The BSE Power index rose 2.42% to 3,448.58. Suzlon Energy jumped 4.62% to Rs 313.60, CESC climbed 4.61% to Rs 502.80, Tata Power rose 2.67% to Rs 1,213.65, Torrent Power gained 1.98% to Rs 136.50 and Reliance Energy rose 1.46% to Rs 1,558.10.

Cords Cable Industries settled at Rs 138.30 on BSE, a premium of 2.44% as compared to issue price of Rs 135. The stock debuted at Rs 130 on BSE, a discount of 3.70% over the IPO price.

Diversified firm Jaiprakash Associates tumbled 12.04% to Rs 265.25 on BSE on huge volumes of 1.59 crore shares. The stock slumped on media reports that 45% stake of Jaiprakash Infratech (JP Infra) will be transferred to a separate subsidiary. However, the company clarified that the entire shareholding of JP Infra is held by JP Associates. The company has no plans to transfer stake to any other company and JP Infra will remain a 100% subsidiary of Jaiprakash Associates.

Anil Dhirubhai Ambani Group firm Reliance Power fell 0.89% to Rs 351.40 on volume of 1.51 crore shares on BSE. On Monday, 11 February 2008, the stock had debuted at Rs 547.80, a premium of Rs 21.73% over the IPO price of Rs 450.

Thermax surged 10.17% to Rs 639 and it topped gainers in BSE’s A group shares. The company has reportedly entered into a technical collaboration with Babcock & Wilcox Power Generation Group (B&W PGG), to foray into manufacturing and supply of utility boilers of up to 800 megawatt used to power thermal plants

Civil engineering company J Kumar Infraprojects fell 0.39% to Rs 102.30. The company secured a Rs 170 crore order from Municipal Corporation of Greater Mumbai.

Pollution control equipment maker Thermax soared 10.17% to Rs 639 after the company signed a technical transfer agreement with US-based abcock & Wilcox Power Generation Group that grants Thermax the right to engineer, manufacture and sell sub critical B&W Radiant utility boilers in India.

Telecom service provider Tata Communications rose 4.64% to Rs 468.70 after the telecoms firm said it formed a partnership in China for network services and was looking for similar tie-ups in Asia and in the Middle East.

Real estate firm Mahindra Lifespace Developers fell 0.10% to Rs 600.20 after it signed an agreement to develop a mixed-use special economic zone in Sri Lanka.

Side counters: Modipon (up 13.34% to Rs 65), Essar Oil (up 12.63% to Rs 184.15), Axon Infotech (up 12.23% to Rs 50), Time Technoplast (up 10.85% to Rs 805), OCL India (10.67% to Rs 209) and Micro Inks (up 7.50% to Rs 303.95), edged higher.

Reliance Power clocked the highest turnover of Rs 531.19 crore on BSE. Jaiprakash Associates (Rs 429.52 crore), Reliance Industries (Rs 349.42 crore), Reliance Natural Resources (Rs 320.80 crore) and Tata Investment Corporation (Rs 300.57 crore), were the other turnover toppers on BSE in that order.

Reliance Natural Resource registered highest volume of 2.72 crore shares. Jaiprakash Associates (1.59 crore shares), Reliance Power (1.51 crore shares), Reliance Petroleum (1.12 crore shares) and Cords Cable Industries (1.05 crore shares), were the other volume toppers on BSE in that order.

In Europe, key indices in UK, France and Germany were down by 0.29% to 0.69 %.

Asian markets finished on a mixed note today, 13 February 2008. Key indices in Hong Kong, Japan, and Singapore were up by 0.80% to 1.08%. However, indices in China, Taiwan and South Korea were down by 0.04% to 2.37%.

US markets edged higher on Tuesday, 12 February 2008, as blue chip shares rallied after billionaire investor Warren Buffett offered to insure about $800 million in tax-exempt bonds and major banks announced a new plan that they say will help homeowners avoid foreclosures. The Dow Jones industrial average advanced 133.4 points, or 1.1%, to 12,373.41, paring an advance of as much as 229 points. The S&P 500 rose 9.73 points, or 0.7%, to 1,348.86. The Nasdaq Composite index finished unchanged at 2,320.04.

India's industrial output rose 7.6% in December 2007 from a year earlier, accelerating from the previous month's downwardly revised 5.1%, helped by stronger manufacturing, government data released yesterday, 12 February 2008 showed.

The Central Board of Direct Taxes (CBDT) has proposed several measures that are expected to have far-reaching implications for the capital market.

In its pre-Budget proposals to the finance ministry, CBDT has sought an amendment to Section 115 AD of the Income Tax Act so that all foreign institutional investors (FIIs) pay capital gains tax on their profits in India.

At present, the gains made by some FIIs are treated as business income and are not taxable on the grounds that these institutions do not have permanent establishments in India.