Short covering ahead of expiry of June 2008 derivatives contracts helped market move higher for the second straight session today. However, the market underwent choppy swings throughout the day. Asian and European markets were in the red. Index heavyweight Reliance Industries surged close to 4% on high volumes. Oil & gas, IT and metal stocks were in demand. However real estate stocks faltered.

The US Federal Reserve on Wednesday, 25 June 2008, held interest rates steady at 2% on Wednesday, as widely expected, and signalled it was in no rush to raise them, even as it voiced greater concerns about inflation.

The 30-share BSE Sensex gained 201.75 points or 1.42% at 14,421.82. Sustained selling pressure after a firm start pulled the market in negative zone at one point of time in early afternoon trade. Sensex lost 23.39 points at days low of 14,196.68. The Sensex opened with an upward gap of 80.65 points at 14,300.72 and advanced further to touch a high of 14,449.81 in late trade. At the days high, the Sensex gained 229.74 points.

The broader based S&P; CNX Nifty was up 63.20 points or 1.49% at 4,315.85. Volatility was high on account of expiry of June 2008 derivative contracts. Nifty July 2008 futures were at 4314.60, a discount of 1.25 points as compared to spot closing.

As per reports, the marketwide rollover of positions from June 2008 contracts to July 2008 contracts in the derivatives segment stood at 74.40% while that of Nifty was 67%.

The BSE Sensex is down 5,865.17 points or 28.91% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2008. It is 6,784.95 points or 31.99% away from its all-time high of 21,206.77 struck on 10 January 2008.

Sectoral indices on BSE displayed mixed trend. The BSE Power (up 0.43% to 2,454.81), BSE Realty index (down 2.02% at 5,102.43), BSE Metal index (up 1.15% to 13,923.41), BSE TecK index (up 0.60% to 3,217.92), BSE FMCG index (up 0.58% to 2,142.62), BSE Auto (up 0.88% at 3,894.75), BSE Consumer Durables index (down 0.42% to 3,767.06), BSE Bankex (down 0.07% at 6,471.59), BSE PSU index (up 0.46% to 6,082.71), and BSE Health Care index (up 0.46% at 4,209.15), BSE Capital Goods index (up 0.79% at 10,887.23), underperformed the Sensex.

The BSE Oil & Gas index (up 2.82% to 9,677.38) and BSE IT index (up 2.12% to 4,181.86), outperformed the Sensex.

The market breadth was positive on BSE with 1468 shares advancing as compared to 1159 that declined. 75 remained unchanged.

The BSE Mid-Cap index slipped 0.08% to 5,742.04 while the BSE Small-Cap index gained 1.01% to 7,129.08.

The total turnover on BSE amounted to Rs 5185 crore as compared to Rs 5,265.18 crore yesterday, 25 June 2008.

Turnover in NSEs futures & options segment amounted to Rs 79103.71 crore as compared to Rs 81001.29 crore yesterday, 25 June 2008.

Among the 30-member Sensex pack, 17 advanced while the rest slipped.

Realty stocks declined on fresh selling. DLF (down 2.68% to Rs 446), Indiabulls Real Estate (down 1.71% to Rs 325), Purvankara Projects (down 7.70% to Rs 169.70), Mahindra Lifespace Developers (down 6.17% to Rs 475.30), and Ansal Infrastructure (down 6.89% to Rs 79), edged lower.

Indias largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) advanced 3.92% to Rs 2219 on high volumes of 25.24 lakh shares. The stock had hit a high of Rs 2259 and low of Rs 2145.55 during the day. RIL will start pumping 25 million standard cubic metres a day (mmscmd) of natural gas by September from its D-6 field in the Krishna Godavari basin, the oil ministry said on Wednesday, 25 June 2008. It said in a statement that the output would be raised to 40 mmscmd by March 2009.

Software pivotals advanced on fresh buying as Fed's decision to keep rates steady bolstered expectations technology spending in US would remain firm. Satyam Computer Services (up 1.95% to Rs 453.90), Wipro (up 4.60% to Rs 477.50), and Infosys Technologies (up 1.50% to Rs 1774), and TCS (up 1.05% to Rs 887), advanced. Indian software exporters get a majority of their revenue from US clients.

ITC, the countrys biggest cigarette manufacturer in terms of sales gained 2.23% to Rs 190.50. The stock rose on reports that ITC Infotech, a $100 million, wholly-owned subsidiary of ITC, is reportedly set to pull out of its BPO equal joint venture with US-based Sitel Corporation.

Larsen & Toubro, the countrys largest private sector engineering company in terms of order book rose 1.95% to Rs 2358. The stock is currently trading 1:1 cum bonus.

Tata Motors (up 2.10% to Rs 484.50), Cipla (up 3.90% to Rs 215.70), and HDFC (up 1.43% to Rs 2199.80), edged higher from Sensex pack.

Indias largest bank in terms of net profit State Bank of India gained 1.40% to Rs 1220 after the state-run bank raised its benchmark prime lending rate by 50 basis points to 12.75% with effect from 27 June 2008. The bank made this announcement during trading hours today, 26 June 2007.

Select cement stocks gained on fresh buying. Indias largest cement company in terms of sales Ambuja Cements jumped 5.27% to Rs 86.90 on 4.61 lakh shares. It was the top gainer from Sensex pack.

ACC (up 0.57% to Rs 598.35), Mysore Cements (up 1.36% to Rs 29.90), UlttaTech Cement Company (up 3.33% to Rs 588.90), and Prism Cement (up 4.08% to Rs 34.40), advanced

Metal stocks, too, were in demand. Sesa Goa (up 1.86% to Rs 3431), JSW Steel (up 2.51% to Rs 1032), Steel Authority of India (up 2.09% to Rs 154), National Aluminium Company (up 2.46% to Rs 370.90), and Sterlite Industries (up 3.17% to Rs 731), gained.

Indias largest private sector steel manufacturer in terms of sales, Tata Steel gained 1.49% to Rs 754. The company reported 195.64% jump in consolidated net profit to Rs 12349.98 crore on 415.04% spurt in total income to Rs 132110.09 crore in the year ended March 2008 over the year ended March 2007.

Reliance Communications (RCom), the countrys second largest telecom services provider in terms of market capitalisation slumped 2.76% to Rs 495 on 22.98 lakh shares. It was the top loser from Sensex pack. The stock had struck an intra-day high of Rs 518.25. As per recent reports, RComs proposed merger deal with South Africa based global operator, MTN is expected to close by first week of July 2008

Bharti Airtel (down 2.28% to Rs 762.20), Ranbaxy Laboratories (down 2.50% to Rs 531.75) and HDFC Bank (down 2.60% to Rs 1046.05) edged lower from the Sensex pack.

Fertliser stocks surged after Chemicals and fertilisers Minister Ram Vilas Paswan today said the Union cabinet has approved a new fertiliser policy. Tata Chemicals (up 5.18% at Rs 312.80), Nagarjuna Fertilizers & Chemicals (up 4.94% at Rs 40.35), Gujarat State Fertilizers & Chemicals (up 4.82% at Rs 162.10), Chambal Fertilisers & Chemicals (up 6.77% at Rs 81.20), Rashtriya Chemicals And Fertilizers (up 5% at Rs 56.20), Zuari Industries (up 0.98% at Rs 238) and National Fertilizers (up 5% at Rs 57.15), soared.

The existing fertiliser policy is likely to be renewed with new additions. The price of fertilisers based on phosphorus and potassium will be linked to import price parity, Paswan said.

The new fertiliser policy will be fix base rate for 17 items and will be for long term versus the current practice of yearly changes, reports suggest. Incentives would be offered to fertilizer manufacturers for producing DAP as an end product.

Reliance Industries was the top traded counter on BSE with turnover of Rs 559.39 crore followed by Reliance Capital (Rs 268.28 crore), Niraj Cement & Structurals (Rs 230.09 crore), Chambal Fertilisers (Rs 176.85 crore), and Anus Labs (Rs 167.75 crore), in that order.

Chambal Fertilisers & Chemicals topped volumes charts clocking volumes of 2.18 crore shares followed by Nagarjuna Fertilisers & Chemicals (1.32 crore shares), Reliance Natural Resources (1.17 crore shares), Niraj Cement & Structurals (1.09 crore shares) and IFCI (