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Saturday, October 13, 2007
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Market Commentary
Oct 12 2007 10:29AM
Market recovers from early slide; RIL, ONGC strike all-time highs

The market recovered from lower level from initial slide that was caused by weak Asian markets. Metal and oil & gas stocks were in demand. Most of the sectoral indices were in the red. Reliance Industries and ONGC hit all-time highs. IT stocks declined for the second day in a row. Asian markets, which opened before Indian market, were subdued to weak.

At 10:25 IST, the BSE 30-share Sensex was down 10 points, or 0.06%, to 18,805.40 points. It opened subdued today and soon declined to hit its intraday low of 18,635.68. At day's low of 18,635.68, Sensex had declined 178.39 points for the day.

The broader based S&P; CNX Nifty was up 10.2 points, or 0.18%, to 5,535.05.

Of the 30 shares of the Sensex, 8 had moved up, while the remaining were trading down. The market breadth was marginally strong on BSE: 1,086 scrips advanced, 1,042 declined, while 775 remained unchanged.

Indias largest private company in terms of market capitalization and oil refiner Reliance Industries (RIL) rose 2.33% to Rs 2,691. It hits an all-time high of Rs 2,700 today. It holds its annual general meeting (AGM) today, 12 October 2007. Expectations have been running high about RIL declaring bonus or stock split at the AGM.

ONGC rose 2.57% to Rs 1,094.05. It hits an all-time high of Rs 1,099 today.

Hindalco Industries (up 0.94% to Rs 177.50), Tata Steel (up 1.93% to Rs 866) and Mahindra & Mahindra (up 0.93% to Rs 821.40) edged higher.

IT stocks declined further. Strong rupee and possible US recession had hit the stocks since yesterday after Infosys had announced its Q2 September 2007 results before trading hours. Infosys (down 1.2% to Rs 1,952.35), Wipro(down 2.79% to Rs 474.50), Satyam Computer (down 1.86% to Rs 439.60), TCS (down 1.48% to Rs 1,056) edged lower.

Indias largest telecom services provider in terms of market share, Bharti Airtel, declined 1.93% to Rs 1,075.

HDFC Bank was down 1.4% to Rs 1,436. It announces Q2 September 2007 results today.

Mastek surged 25.69% to Rs 404.30 after its board approved the buyback of the company's equity shares for an amount up to Rs 65 crore.

As per provisional data, FIIs bought shares worth a net Rs 795 crore on Thursday, 11 October 2007. Domestic institutions sold shares worth a net Rs 420 crore on that day.

Asian markets, which opened before the Indian markets, were subdued today. Hong Kongs Hang Seng (down 1.82% to 28,610.50) Singapores Straits Times (down 1.11% to 3,832.78), Japan's Nikkei (down 0.77% at 17,324.60), South Koreas Seoul Composite (down 1.62% to 2,026.02), Taiwan's Taiwan Weighted (down 1.56% to 9,546.04) edged lower.

On Wall Street on Thursday, 11 October 2007, Chinese Internet company Baidu.com Inc. tumbled 10% after JPMorgan cut its third quarter revenue target, spurring concerns that the recent US tech rally may be coming to a close. The tech-heavy Nasdaq Composite Index lost 39.41 or 1.4% at 2,772.20, while the blue-chip Dow which hit an intraday record high earlier, settled 63.57 points or 0.45% lower at 14,015.12.

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