The market recovered after an initial sharp fall caused by the Reserve Bank of Indias at its mid-term review of the annual monetary policy raising cash reserve ratio (CRR) by a steep 50 basis points to 7.5% while keeping policy rates unchanged. Earlier, the market had opened on firm note, with Sensex hitting all-time high above 20,000 at the onset of the trading session. It had soon plunged into the red.
Banking and auto stocks declined after central banks monetary policy announcement made at 12:00 IST. Capital goods and metal stocks gained.
ONGC, Bharat Heavy Electricals, Larsen & Toubro and HDFC hit all time highs today. Reliance Industries was weak. Market breadth was negative. Most of the Asian markets were trading lower.
At 12:23 IST, BSE Sensex was down 84 points or 0.39% to 19,893.64. It opened on a strong note with an upward gap of 125.77 points at 20,103.44 and soon rose to strike an all-time high of 20,238.16 in early trade. At day's high of 20,238.16, Sensex had gained 260.49 points. It hit a low of 19,749.74 in early afternoon trade. At days low of 19,749.74, Sensex had declined 227.93 points.
The broader based S&P; CNX Nifty was up 13.6 points or 0.23% to 5,919.50.
The central bank raised the proportion of cash banks have to keep with it on deposit by 50 basis points to 7.5 % today to mop up excess funds, but kept its key lending rates unchanged. The central bank left the reverse repo rate, the rate at which it absorbs excess cash from banks, unchanged at 6%. The bank rate, too, was unchanged at 6%%.
The market breadth was negative BSE: 1,099 scrips advanced as compared to 1,478 that declined while 448 remained unchanged. 12 of the 30 members of the Sensex pack were trading with gains.
The BSE Mid Cap index was down 0.09% to 8,075.80 and outperformed Sensex. BSE Small Cap index was down 0.09% to Rs 9,696.85.
Banking majors declined after the Reserve Bank of India raised CRR by a steep 50 basis points to 7.5%. State Bank of India (down 1.55% to Rs 2,085) and ICICI Bank (down 0.75% to Rs 1,240), edged lower. However, HDFC Bank rose 0.39% to Rs 1,645.10.
Auto stocks declined the most. Mahindra & Mahindra (down 5.32% to Rs 754), Maruti Suzuki India (down 5.71% to Rs 1,120.55), Hero Honda Motors (down 1.42% to Rs 733.80) and Tata Motors (down 1.62% to Rs 794) edged lower. However, Bajaj Auto (up 0.12% to Rs 2,505) edged higher.
Metal stocks edged higher. Tata Steel (up 0.68% to Rs 907), Sterlite Industries (up 8.26% to Rs 1,037) and Hindalco Industries (up 0.28% to Rs 194.30) edged higher. Steel Authority of India declined 0.83% to Rs 274.25.
India's largest oil exploration firm in terms of revenue, ONGC rose 1.32% to Rs 1,256.50. It hit an all time high of Rs 1,265 today.
India's second biggest power utility in terms of revenue Reliance Energy (REL) was up nearly 3.26% to Rs 1778. REL said today that it will transfer its road, rail, real estate and other infrastructure projects to a separate unit.
India's largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) declined 1.86% to Rs 2,787 .
Capital goods stocks extended gains today. Bharat Heavy Electricals (Bhel) rose 3.14% to Rs 2,695 and was the top gainer from Sensex pack. It hit an all time high of Rs 2,750 today. Net profit of Bharat Heavy Electricals (Bhel) rose 91.01% to Rs 687.66 crore on 18.68% rise in total income to Rs 3965.36 crore in Q2 September 2007 over Q2 September 2006. The company announced the results after the market hours on 29 October 2007.
Larsen & Toubro rose 1.49% to Rs 4,345. It hit an all time high of Rs 4,470 today. Suzlon Energy however declined 0.95% to Rs 1,979.
India's biggest power generation firm by sales National Thermal Power Corporation rose 1.82% to Rs 237.50.
Grasim Industries declined 1.72% to Rs 3,740.
Housing Development Finance Corporation, India's biggest dedicated housing finance firm, declined 2.24% to Rs 2,750. It hit an all time high of Rs 2,965 today. Net profit of Housing Development Finance Corporation rose 75.64% to Rs 646.39 crore on 30.54% rise in total income to Rs 1888.60 crore in Q2 September 2007 over Q2 September 2006. The company announced the results after the market hours on 29 October 2007.
Among side counters, Parle Software (up 20% to Rs 695.50), Siemens Medical (up 20% to Rs 1,110.60), Mangalore Refinery and Petrochemicals (up 18.05% to Rs 75.20), Celestial Labroratories (up 17.75% to Rs 59.05) and Apar Industries (up 16.7% to Rs 268) edged higher.
ITD Cementation (down 21.17% to Rs 663.95) edged lower.
Asian markets were trading slightly lower today, 30 October 2007. Japan's Nikkei (down 0.28% at 16,651) Taiwan Weighted (down 0.53% at 9,757), Singapore's Straits Times (down 0.61% at 3,796.82), South Korea's Seoul Composite (down 0.51% at 2,052.37) edged lower. However, Hong Kong's Hang Seng rose 0.12% at 31,632.
US Markets advanced yesterday, 29 October 2007, on positive earnings reports and the anticipation of an interest rate cut. The Dow Jones industrial average gained 64 points to 13870.26, the S&P; 500 index rose 6 points to 1540.98 and the Nasdaq Composite index firmed 13 points to 2817.
As per provisional data, FIIs purchased shares worth a net Rs 688.93 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 634.44 crore on Monday, 29 October 2007.
Crude oil prices fell nearly 1% below $93 a barrel on Tuesday, 30 October 2007, fading from their latest record high as investors took profits from a rally fuelled by a Mexican supply outage and the spiraling dollar. US crude fell by 85 cents to $92.68 a barrel after hitting a record high of $93.80 yesterday, 29 October 2007. London Brent slipped 77 cents to $89.65.
The BSE Sensex ended with a 734.50-point or 3.82% spurt to 19,977.67, on Monday, 29 October 2007. It hit an all time high of 20,024.87 in late trade. The broader based S&P; CNX Nifty ended up 203.6 points, or 3.57%, to 5,905.90. It hit an all-time high of 5,922.50 in late trade on Monday, 29 October 2007.
Q2 September 2007 results announced so far have been decent to strong.
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