Saturday 2 February 2008

The week....That was....

After a week-long range bound trading, the markets witnessed a decisive breakout on Friday. Volatility was seen throughout the week.

The 30 share index lost 128.24 points, to 18,233.42 in the week ended Feb. 01, 2008, whereas the broad based NSE Nifty fell 58.55 points, to 5,317.25 in the same period.

On Monday, the 30-share index, Sensex opened with a negative gap of 349.77 points at 18,011.89 mirroring weak global cues. The index further traded deep into the negative on account of aggressive selling pressure. The index recovered and came off from its day`s low in the afternoon trades. Sensex finally ended up the day in negative after touching an intraday low of 17,443.29.

BSE Sensex lost 208.88 points, or 1.14%, to close at 18,152.78; while the broad-based NSE Nifty closed at 5,274.10, down 109.25 points.

On Tuesday, the 30-share index, Sensex opened with a positive gap of 193 points at 18,346 and immediately rallied to a high of 18,491. However, the index lost all its firmness and slipped into the negative. Volatile movements were seen in the noon trades. The RBI in its third quarterly monetary policy review kept all key rates - bank rate, repo rate and the reverse repo rate - and the cash reserve ratio unchanged, as a result the market fell into negative, touching an intraday low of 17,928. The index finally closed on a flat note after shedding 563 points from the day`s high.

BSE Sensex lost 60.84 points, or 0.34%, to close at 18,091.94; while the broad-based NSE Nifty closed at 5,280.80, up 6.7 points, or 0.13%.

On Wednesday, the 30-share index, Sensex opened marginally higher by 28 points at 18,120.22 and soon slipped into the negative in the early trades. Accordingly, the index made further inroads into the negative on the back of intense selling pressure in frontline stocks. The index ended the day on a weak note after touching an intraday low of 17,683.51.

BSE Sensex plunged 333.30 points, or 1.84%, to close at 17,758.64; while the broad-based NSE Nifty closed at 5,175.15, down 105.65 points, or 2%.

On Thursday, the 30-share index, Sensex opened with a positive gap of 51 points at 17,810 and soon slipped into the negative zone in the initial trades. The index after trading for a short period in the negative, recovered smartly, to trade on a strong note on the back of intense buying interest in frontline stocks and touched an intraday high of 18,008.71. However in the subsequent session, the index lost all its strength and again fell into the negative amid volatility. The index ended the day on a sluggish note after touching an intraday low of 17,417.63.

BSE Sensex lost 109.93 points, or 0.62%, to close at 17,648.71 while the broad-based NSE Nifty closed at 5,137.45, down 30.15 points, or 0.58%.

On Friday, the 30-share index, Sensex opened with a positive gap of 172 points at 17,820.67, mirroring encouraging global market in the early deals. The index after trading in the positive, slipped into the negative for a short period of time.

However, the index regained its strength, touching a high of 18,312.40, on account of buying interest at lower levels. It finally wrapped the day with a gain of over 580 points on buying in blue-chip stocks like Reliance, ICICI Bank and Bharti Airtel.

BSE Sensex gained 584.71 points, or 3.31%, to close at 18,233.42; while the broad-based NSE Nifty closed at 5,317.25, up 179.8 points, or 3.50%.

New Listing

On Friday, Retail czar, Kishore Biyani-promoted Future Capital Holdings (FCHL), the financial services arm of the Future Group, closed with a modest premium of 18.78% on the Bombay Stock Exchange (BSE).

The scrip got listed on Feb. 01, 2008, at Rs 1,044 at the BSE as against its issue price of Rs 765 a share, resulting into a 36.47% premium. Meanwhile, at the NSE, the scrip opened at a high of Rs 1,081 and touched a low of Rs 825. Here, the scrip closed at Rs 909.80, up Rs 144.80, or 18.93%, on volumes of over 12.54 million.

Economy News

India`s wholesale price index (WPI) based Inflation rose to 3.93% for the week ended Jan. 19, 2008 as against 3.83% for the previous week.

The RBI in its third quarterly monetary policy review kept all key rates - bank rate, repo rate and the reverse repo rate and the cash reserve ratio unchanged.

The Federal Reserve, in line with street expectations, cut the interest rates by 50 basis points in yet another effort to stall the turmoil in financial markets worldwide. The Fed lowered the discount rate, or the interest the Fed charges on loans to banks, by a half-point to 3.50%. It also lowered the fed funds rate, (the interest banks pay one another for overnight loans) to 3%, the lowest level since spring 2005.

Result

Larsen & Toubro registered a 40.10% growth in net profit to Rs 4,817.90 million for the quarter ended December 2007 as compared with Rs 3,439.00 million for the corresponding quarter, last fiscal. Total income for the quarter rose 52.69% to Rs 64,835.50 million as against Rs 42,463.50 million for the same quarter, a year ago.

Steel Authority of India (SAIL) disclosed a steady jump in net profit for the quarter ended December 2007. During the quarter, the company experienced a 31.50% rise in profit to Rs 19,346.60 million from Rs 14,711.90 million in the quarter ended December 2006. Total income rose 12.41% to Rs 98,476.40 million for the quarter ended December 2007 from Rs 87,601.60 million for the same period, last year.

State-run National Aluminium Company (NALCO) reported 42.46% decline in net profit to Rs 3,294.40 million for the quarter ended December 2007 as compared with Rs 5,726.00 million in the corresponding quarter, last fiscal. Total income for the quarter slid 19.34% to Rs 12,472.60 million from Rs 15,464.00 million in the corresponding quarter, a year ago.

Syndicate Bank registered a rise of 20.81% in net profit to Rs 2,731.90 million for the quarter ended December 2007 as compared with Rs 2,261.20 million for the corresponding quarter, last fiscal. Interest earned for the quarter rose 21.50% to Rs 19,870 million, as against Rs 16,353.00 million for the same quarter, a year ago.

Bharti Airtel, India`s top mobile operator, reported 41.74% increase in consolidated net profit, as per United States Generally Accepted Accounting Principles (US GAAP),to Rs 17,224.00 million for the quarter ended Dec. 31, 2007 as against Rs 12,151.30 million in the corresponding quarter, last year. Total income for the period in comparison rose 41.74% to Rs 69,639.00 million, compared with Rs 49,129.20 million.

Public sector lender Bank of Baroda (BOB) posted 52.23% growth in net profit to Rs 5,010.50 million for the quarter ended December 2007 as compared with Rs 3,291.30 million for the corresponding quarter in the last fiscal. Interest earned for the latest quarter rose 25.77% to Rs 30,021.90 million as against Rs 23,870.00 million for the corresponding quarter, a year ago.

Bajaj Auto, on consolidated basis, registered 16.60% drop of in net profit for the quarter ended December 2007. During the quarter, net profit stood at Rs 2,738.20 million as against Rs 3,283.50 million in the quarter ended December 2006. Net Sales & Income rose marginally 2.83% to Rs 26,960.30 million for the quarter ended December 2007 from Rs 26,332.60 million for the same period, last year.