The market nudged higher on renewed buying interest in index pivotals following healthy rollover of derivative positions from October 2007 to November 2007 on Thursday, 25 October 2007. Cash market turnover on BSE was just under Rs 9,000 crore. Global cues were mixed.
The Sensex surged 481.46 points, or 2.56%, at 19,252.35, as per provisional closing. It had opened marginally higher at 18,823.66 and slipped to low of 18,629.53 during the day. It hit an all time high of 19,276.45 in late trade. At the days high of 19,276.45, Sensex had gained 505.56 points for the day.
Its previous all-time high was 19,198.66 struck on 18 October 2007.
The broader based S&P; CNX Nifty jumped 139.25 points, or 2.50%, to 5,708.20, as per provisional closing. Nifty hit an intra-day high of 5716.90 during the day. Its all time high is at 5736.80, which it had struck on 18 October 2007.
The market shrugged off concerns arising from possible FII sales after market regulator Securities & Exchange Board of India put restrictions on issue of participatory notes (PN) after trading hours on Thursday, 25 October 2007 and directed some exiting PN positions to be wound up within 18 months. The market regulator has put in place a set of regulations to clamp down excessive inflows through participatory notes (PN). The regulator affirmed that sub-accounts would not be allowed to issue PNs and that FIIs will have to unwind PNs with derivatives as underlying in 18 months. Sebi further allowed both regulated and unregulated pension funds, endowments, university funds and charitable trusts to register as FIIs.
PNs are issued by FIIs registered in India to unregistered overseas investors. Registered FIIs buy Indian securities and issue the notes based on the underlying asset.
While announcing rules to curb issue of participatory notes (PNs) by FIIs, the market regulator Securities & Exchange Board of India (Sebi) has also made it clear that PNs can now be issued only to foreign entities which are regulated in their respective jurisdiction and not to those that are merely registered in the jurisdiction as was the norm earlier. This will mean that many hedge funds that are not regulated in their home country will find it difficult to invest in the Indian market.
The market breadth was strong on BSE: 1,706 scrips advanced as compared to 1037 that declined while 63 remained unchanged. 23 of the 30 members of the Sensex pack were trading with gains.
The total turnover on BSE spiked in last one hour of trade. BSE clocked a turnover of Rs 8968 crore as compared to Rs 6414 crore by 14:30 IST.
Indias largest engineering and construction company Larsen & Toubro (L&T;) galloped 12.40% to Rs 3885 on 11.55 lakh shares. It hit an all time high of Rs 3898 today. It was the top gainer from Sensex pack. L&T; posted 72.95% rise in net profit to Rs 348.02 crore on 43.54% rise in total income to Rs 5,523.27 crore in Q2 September 2007 over Q2 September 2006. The company announced the results during the market hours today, 26 October 2007.
Indias largest bank in terms of net profit State Bank of India vaulted 7.53% to Rs 2091. It hit an all time high of Rs 2104.45. After market hours on 23 October 2007, SBI Life Insurance Company posted net profit of Rs 14.09 crore for the first half year ended 30 September 2007 on the back of 80% increase in its total premium collection. A 74:26 joint venture between the State Bank of India and Cardif, a BNP Paribas company, it manages assets over Rs 6000 crore.
Bharat Heavy Electricals (Bhel), the nation's largest power equipment maker in terms of sales soared 6.35% to Rs 2434.70 in anticipation of robust set of results from the company. It will announce its Q2 September 2007 results on 29 October 2007.
Indias largest power generation company by sales, NTPC advanced 2.38% to Rs 228.45. As per reports it is planing to acquire overseas coal blocks with a mining capacity of around 20 million tonnes per annum (mtpa).
Oil & Natural Gas Corporation (ONGC), the countrys largest oil exploration company by net sales advanced 4.12% to Rs 1159.95. As per reports, ONGC which reported gas discoveries on the east coast of India early this year, is planning to sell up to 60% stake in the block to Petrobras of Brazil and State Hydro of Norway.
Auto stocks gained on fresh buying. Tata Motors (up 1.98% to Rs 809), Mahindra & Mahindra (up 3.82% to Rs 802), and Maruti Suzuki India (up 1.38% to Rs 1175.10), were the other gainers from Sensex pack.
India's largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) rebounded sharply from days low of Rs 2610 to hit a high of Rs 2710. It settled 2.42% higher at Rs 2691.10 on 13.52 lakh shares.
Bharti Airtel, the countrys largest listed cellular services provider by total subscribers retraced sharply from days high of Rs 1044.90. It settled with a loss of 2.66% to Rs 992.80 on 3.77 lakh shares. It was the top loser from Sensex pack
Indias largest cigarette maker in terms of sales ITC slipped from days high of Rs 190.75. It closed 1.40% lower to Rs 180.30. It posted 13.42% rise in net profit to Rs 770.87 crore on 18.2% rise in total income to Rs 3,481.63 crore in Q2 September 2007 over Q2 September 2006. The results were announced during the market hours today, 26 October 2007.
Hindustan Unilever (down 1.34% to Rs 217.55), and Ranbaxy Laboratories (down 1.15% to Rs 424.80), were the other losers from Sensex pack
Among side counters, Electrosteel Castings (up 20% to Rs 60.35), Engineers India (up 20% to Rs 726.35), Hind National Glass (up 18.79% to Rs 900), Disa India (up 20% to Rs 1934.20), and OCL India (up 16.47% to Rs 274.75), surged
India's wholesale price index rose 3.07% in 12 months to 13 October 2007, matching the previous week's rise which was the smallest in five years, government data released today afternoon showed. The annual inflation rate was 5.46% during the corresponding week of the previous year.
October 2007 derivatives contracts expired yesterday, 25 October 2007. Rollovers were healthy and in-line with the previous two months. As per market data, marketwide rollover of derivative positions from the October 2007 series to the November 2007 series was 84%, while the Nifty rollover was 71%.
Marketwide rollover of derivatives positions from September 2007 to October 2007 was 84% while that of August 2007 contracts to September 2007 contracts was 82.30%. Nifty rollover for September 2007 to October 2007 was 71% and that of August 2007 contracts to September 2007 was 70%.
European markets were trading mixed. Key benchmark indices in United Kingdom (up 0.18% to 6,588.10), and Germany (up 0.02% to 7,934.34) rose while France CAC 40 index slipped 0.09% to 5,755.74.
Asian markets were trading higher today, 26 October 2007. Hong Kong's Hang Seng (up 1.84% at 30,405.22), Japan's Nikkei (up 1.36% at 16,505.63), Taiwan's Taiwan Weighted (up 0.66% at 9,631.51), Straits Times (up 1.74% at 3,771.55) and South Korea's Seoul Composite (up 2.60% at 2,028.06) edged higher.
US markets ended slightly lower yesterday, 25 October 2007, as investors were uneasy about the credit markets and record-high oil prices and took little solace from reports on new home sales and durable goods orders. The Dow Jones Industrial Average slipped 3.33 points, or 0.02%, to 13,671.92. The Standard & Poor's 500 index lost 1.48 points, or 0.10%, to 1,514.40, while the Nasdaq Composite Index lost 23.90 points, or 0.86%, to 2,750.86.
The Reserve Bank of India's (RBI) mid-term review of annual policy due on 30 October 2007 and US Federal Reserves meeting on 31 October 2007 on interest rates, will be key events that will drive the market in the near term.
As per provisional data, FIIs sold shares worth a net Rs 625.34 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 788.37 crore on Thursday, 25 October 2007.
Crude oil p