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Saturday, December 01, 2007
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Market Commentary
Nov 29 2007 3:39PM
Market gives away large part of intra-day gains in late trade

The market came sharply off higher level in late trade due to expiry of November 2007 derivatives contracts. ICICI Bank came off higher level. Infosys slipped into the red in late trade in contrast to a decent gainers earlier during the day. Bajaj Auto, Ranbaxy, Reliance Energy slipped. Metal stocks lost ground. Market breadth turned negative from positive in the last one hour of trade. 17 out of 30 stocks from the Sensex pack were in red.

European markets, which opened after Indian market, were in green. Asian markets, which opened before Indian market, surged after comments on Wednesday, 28 November 2007, from US Federal Reserve officials raised the chances of another US rate cut in December 2007.

The market has been volatile over the past few days due to alternate bouts of buying and selling amid FII sales caused by redemption pressure in their home countries and fears of a US recession arising from US housing slump and credit crisis.

The 30-share BSE Sensex provisionally ended up 26.73 points or 0.14% to 18,965.60. Sensex hit a low of 18,930.31 at the fag end of the trading session. At day's low, Sensex shed 8.56 points for the day. The Sensex had hit a high of 19,297.01 in early trade. At day's high, the Sensex gained 358.14 points.

The broader based S&P; CNX Nifty provisionally ended up 21.25 points or 0.38% to 5638.80. Nifty hit a high of 5725 in early trade. At day's high, Nifty had risen 107.45 points.

The BSE Mid-Cap index fell 0.17% to 8,369.61. The BSE Small-Cap index was up 0.21% to 10,396.99.

The market breadth was negetive. On BSE, 1341 stocks advanced, 1439 stocks declined and 76 stocks remained unchanged.

BSE clocked a turnover of Rs 7596 crore, higher than yesterday (28 November 2007)'s Rs 7,472.89.

Indias largest private sector firm by market capitalisation & oil refiner Reliance Industries was up 1.22% to Rs 2820.20.

Indias largest private sector bank by assets ICICI Bank rose 1.20% to Rs 1140.25. The stock came sharply off the higher level in late trade. It came off session's high of Rs 1184.

Indias second largest software exporter by sales Infosys Technologies fell 0.22% to Rs 1566.10.

HDFC Bank gained 3.78% to Rs 1668.80, Maruti Suzuki jumped 2.51% to Rs 991, Mahindra & Mahindra gained 1.56% to Rs 720.90, Bharti Airtel rose 0.91% t oRs 918.25 and State Bank of India was up 0.58% to Rs 2265.

Bajaj Auto dropped 4.68% to Rs 2600.20, Ranbaxy laboratories fell 2.41% to Rs 379.95, Reliance Energy fell 1670.65, Reliance Communications fell 1.78% to Rs 666.35 and ONGC declined 1.70% to Rs 1131.

In Europe, key indices in France and Germany were up by between 0.13% to 0.33%. UKs FTSE 100 was down 0.28%.

In Asia, key benchmark indices in Hong Kong, Japan, China, South Korea, Singapore and Taiwan were up by between 2.06% to 4.16%. The Fed's next policy-setting meeting is scheduled for 11 December 2007.

US markets rallied overnight on expectations for an interest rate cut by the US Federal Reserve in December 2007. The Dow Jones industrial average jumped 331.01 points, or 2.55%, at 13,289.45 on Wednesday, 28 November 2007. The Standard & Poor's 500 Index was up 40.79 points, or 2.86% at 1,469.02. The Nasdaq Composite Index was up 82.11 points, or 3.18%, at 2,662.91.

FIIs sold shares worth a net Rs 978.96 crore in the cash market on Wednesday, 28 November 2007, as per provisional data. Domestic funds bought shares worth a net Rs 331.82 crore on that day.

FII outflow in November 2007, till 27 November 2007, reached Rs 4422.30 crore. FIIs had made heavy purchases in September 2007 and October 2007. FIIs had bought shares worth a net Rs 16132.60 crore in September 2007 and Rs 20590.90 crore in October 2007.

Oil surged by more than $4 a barrel towards $95 a barrel today, 29 November 2007, after a pipeline explosion cut crude oil imports to top consumer the United States by nearly a fifth.

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