The market hit new all-time high towards the latter part of the trading session. Easing of political worries and firm Asian markets boosted the bourses today. IT stocks edged higher ahead of Infosys' results which are due tomorrow, 11 October 2007. Capital goods, banking, realty and metal stocks surged. Auto stocks underperformed. The market breadth turned negative in the latter part of trade.
The market had pared gains in mid-morning trade after an initial surge to a record high. Mid-cap and small-cap indices underperformed the Sensex. European markets, which opened after Indian markets, were subdued today.
Asian markets, which opened before Indian markets, ended on positive note. MSCI's measure of Asia Pacific stocks excluding Japan hit a record high today.
The BSE 30-share Sensex was up 363.88 points, or 1.99%, to 18,644.12, as per provisional figures. Sensex opened with an upward gap of 193.19 points at 18,473.43. Sensex had climbed 423.23 points for the day at the day's high of 18,703.67 in late trade. It hit a low of 18,436.99 in the day.
The broader based S&P; CNX Nifty was up 118.4 points, or 2.22%, to 5,445.65. It had hit a all-time high of 5,454.70 in late trade.
BSE clocked a turnover of Rs 8503 crore, higher than Tuesday (9 October 2007)s Rs 7,815.67 crore.
The Congress-led United Progressive Alliance (UPA) government at the centre and its communist allies stepped back from the brink on Tuesday, 9 October 2007, agreeing to meet again this month to resolve a row over a nuclear deal with the United States. The next meeting of the UPA-Left committee which is looking into Left Fronts concerns over nuclear deal will be held on 22 October 2007. The committee held its fourth meeting in New Delhi yesterday, 9 October 2007.
The meeting was held in the backdrop of widening of rift on the nuclear deal with Left parties rejecting a plea of the government that it be allowed to engage in negotiations with International Atomic Energy Association (IAEA) over the nuke deal.
The fact the two sides would meet again signaled that the communists, whose parliamentary support keeps the ruling coalition in power, would not withdraw their support for the government immediately which the stock market had feared.
Of the 30 shares of the Sensex, 24 had moved up, while the remaining were trading down. The market breadth turned weak on BSE in late trade: 1,297 scrips advanced, 1,398 declined, while 244 remained unchanged. The breadth was strong earlier during the day.
The BSE Mid Cap index rose 1.16% to 7,484.36 and BSE Small Cap index rose 0.51% to 9,022.75. Both these indices underperformed Sensex .
Infosys rose 3.61% to Rs 2,122 extending its recent solid rebound. Infosys will announce Q2 September 2007 results on Thursday, 11 October 2007. TCS (up 2.62% to Rs 1,125.15), Wipro (up 3.31% to Rs 505.50) and Satyam Computer Services (up 2.47% to Rs 482.15), also edged higher ahead of Infosys' results.
A total of seven brokerages expect a between 0.58% fall to a 4.6% rise in Infosys consolidated net profit as per Indian GAAP to between Rs 1,072.70 crore to Rs 1128.70 crore in Q2 September 2007 compared to net profit of Rs 1,079 crore Q1 June 2007. They expect a between 6.8% to 9.7% growth in Infosys revenue at between Rs 4,028.60 crore to Rs 4,138.40 crore in Q2 September 2007 compared to revenue of Rs 3,773 crore in Q1 June 2007.
Capital goods stocks surged. Larsen & Toubro (L&T;) surged 6.59% to Rs 3,371.80. It hit an all-time high of Rs 3,450 today after it bagged $ 60 million order in Saudi Arabia.
Bharat Heavy Electricals (Bhel) rose 4.06% to Rs 2,327.50. It hit an all-time high of Rs 2,387 today. Suzlon Energy rose 5.49% to Rs 1,765. It hit an all-time high of Rs 1,777 today.
Indias largest private company in terms of market capitalisation and oil refiner Reliance Industries rose 0.48% to Rs 2,613. It hit an all-time high of Rs 2,675 today.
Auto stocks underperformed Sensex. Hero Honda Motors (up 1.34% to Rs 754) and Tata Motors (up 1.74% to Rs 805.50) edged higher whereas Bajaj Auto (down 0.89% to Rs 2,620) and Maruti Suzuki India (down 0.28% to Rs 1,105.35) drifted lower.
ACC rose 3.51% to Rs 1,218 and was among the major gainers from Sensex pack.
Reliance Energy rose 3.4% to Rs 1,585.85. It hit an all time high of Rs 1,624.60 today. The stock rose today on reports a special purpose vehicle two-third owned by Reliance Energy won a contract to build a Rs 6,000 crore, 100-storeyed tower and a business centre in Manchirevula in Ranga Reddy district, in the outskirts of Hyderabad.
Ranbaxy Laboratories (down 0.6% to Rs 424.80), Hindustan Unilever (down 0.16% to Rs 223.50), Dr. Reddys Laboratories (down 1.03% to Rs 636), Bajaj Auto (down 1.53% to Rs 2,603) were top losers from Sensex pack.
Metal stocks extended gains. Tata Steel (up 1.13% to Rs 844), Hindalco Industries (up 3.81% to Rs 170.25) and JSW Steel (up 3.66% to Rs 881.10) edged higher.
Realty stocks blossomed. DLF (up 2.93% to Rs 891), Unitech (up 1.82% to Rs 332.15) and Indiabulls Real Estate (up 0.48% to Rs 648) edged higher.
Side counters, Ashco Industries (up 20% to Rs 46.20), Sandesh (up 20% to Rs 204.75), Adlabs Films (up 21.33% to Rs 646.30), Triton Valves (up 20% to Rs 1,781.10) and Gujarat Mineral Deevelopment Corporation (up 20% to Rs 1,632.60), surged.
VTM (down 10% to Rs 139.50) and Majestic Auto (down 10.58% to Rs 31.70) edged lower.
Drug maker Lupin rose 0.54% to Rs 588.05 after it acquired Japanese generic drug maker Kyowa Pharmaceutical Industry Co.
European markets opened in red today. Frances CAC 40 (down 0.2% to 5,850.19) and FTSE 100 (down 0.27% to 6,597.30) edged lower. Germanys DAX (up 0.08% to 7,986.74) edged higher.
Asian markets, which opened before the Indian markets, were trading in green today. Hong Kongs Hang Seng (up 1.21% to 28,569.03) Japan's Nikkei (up 0.1% at 17,177.89), South Koreas Seoul Composite (up 1.34% to 2,041.12) edged higher. Singapores Straits Times (down 1.33% to 3,814.45) edged lower.
US stocks surged on Tuesday, 9 October 2007. The Dow Jones gained 120.80 points, on the day, closing at 14,164.53. Nasdaq Composite rose 16.54 points, to close at 2,803.91. The Dow and S&P; 500 jumped to close at record highs on Tuesday after minutes from the Federal Reserve's last meeting showed inflation expectations were contained, leaving open the question of whether another rate cut is near.
US markets had surged earlier as non-farm payrolls report released on Friday 5, October 2007 showed US employers added 1,10,000 jobs in September 2007 and August 2007 job losses were revised to a gain, helping lift worries about a US recession in the near term.
As per provisional NSE data, foreign institutional investors (FIIs) were net buyers of Rs 1,416.72 crore of equities, while domestic institutional investors (DII) were net sellers of Rs 529.38 crore of equities on Tuesday, 9 October 2007.
The BSE 30-share Sensex saw a record single day rally of 788.85 points, or 4.51%, to 18,280.24, an all-time closing high on Tuesday, 9 October 2007. Sensex completed its 17,000 to 18,000 journey in just 8 trading sessions, the second fastest 1,000-point rally ever. The market had hit 17,000 mark on 26 September 2007. The broader based S&P; CNX Nifty ended up 242.15 points, or 4.76%, to 5,327.25, a record closing high on Tuesday, 9 October 2007.
Short covering by trapped bears, who went short anticipating political problems, also pulled up the market significantly yesterday.
Heavy FII buying and hopes of a further cut in interest rates by the US Federal Reserve at its next policy meeting on 30-31 October 2007 have boosted the bourses in the past few days.
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