Short covering ahead of expiry of June 2008 derivatives contracts today helped market extend gains for second straight session. However market exhibited choppy swings throughout the day. Asian and European indices were in the red. Index heavyweight Reliance Industries surged close to 4% on high volumes. IT and metal stocks were in demand. However real estate stocks faltered. The S&P; CNX scaled past the 4,300 mark.

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 129.19 points or 0.91% at 14,349.26, as per provisional closing. 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 touched in early afternoon trade.

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 64 points or 1.50% at 4,316.65, as per provisional closing. Volatility was high today as derivatives contracts for June 2008 series expired. As per reports, the marketwide rollover of positions from June 2008 series to July 2008 series stood at 62.50% while that of Nifty was 63%, as on Wednesday, 25 June 2008.

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 0.28% to 5,730.73 while the BSE Small-Cap index gained 0.92% to 7,122.99.

The total turnover on BSE amounted to Rs 5185 crore as compared to Rs 3768 crore by 14:30 IST

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

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

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.

Indias largest private sector steel manufacturer in terms of sales, Tata Steel gained 1.49% to Rs 754 ahead of its year ended March 2008 results due today, 26 June 2008.

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

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.

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.

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.

European markets, which opened after Indian market, were trading lower. Key benchmark indices in United Kingdom, France and Germany were down by between 1.21% and 1.49%.

Asian markets, which opened before Indian market, dipped in negative zone after firm start today, 26 June 2008. Hong Kong's Hang Seng (down 0.79% at 22,455.67), Straits Times (down 0.16% at 2,981.81), China's Shanghai Composite (down 0.11% at 2,901.85), Japan's Nikkei (down 0.05% at 13,822.32), South Korea's Seoul Composite (down 0.02% at 1,717.42) and Taiwan Weighted (down 0.55% at 7,811.80), declined.

US markets ended on a positive note yesterday, 25 June 2008 after some volatile action following the Fed's decision to keep interest rates unchanged. The Dow Jones industrial average advanced 4.40 points, or 0.04%, to 11,811.83. The Standard & Poor's 500 index gained 7.68 points, or 0.58%, to 1,321.97, and the Nasdaq composite index was up 32.98 points, or 1.39%, to 2,401.26.

Back home, equities staged a solid rebound yesterday, 25 June 2008 after touching fresh calendar 2008 lows in early trade. The initial jolt was caused by the Reserve Bank of India's move late evening yesterday, 24 June 2008, to hike the key lending rate in an aggressive attempt to combat over 11% inflation. The 30-share BSE Sensex gained 113.49 points or 0.80% at 14,220.07 and the broader based S&P; CNX Nifty surged 61.55 points or 1.47% at 4,252.65 on that day

As per provisional data, foreign funds sold shares worth a net Rs 363.71 crore while domestic mutual funds bought shares worth a net Rs 529.87 crore yesterday, 25 June 2008.

Foreign institutional investors (FIIs) were net buyers of Rs 110.71 crore in the futures & options segment yesterday, 25 June 2008. They were net buyers of index futures to the tune of Rs 1099.50 crore and sold index options worth Rs 720.12 crore. They were net sold of stock futures to the tune of Rs 282.69 crore and bought stock options worth Rs 14.02 crore.

The UPA-Left committee on the India-United States nuclear deal decided to convene another meeting to finalise its findings in the committees ninth meeting held yesterday, 25 June 2008.

After the meeting, Prime Minister Manmohan Singh and Congress president Sonia Gandhi on Wednesday, 25 June 2008, night discussed the outcome of the meeting of the United Progressive Alliance-Left panel on the India-US Nuclear Agreement. As per reports, the Congress president would consult allies before taking a decision on going ahead with the nuclear deal.

Oil steadied above $134 a barrel on Thursday, 26 June 2008, after dropping more than $2 on Wednesday as