Data showing slide in inflation helped the market end the choppy session on a firm note but fall in index heavyweight Reliance Industries capped the rise. Infosys Technologies and ICICI Bank spurted. IT, banking and realty stocks were in demand. Market breadth moved between positive and negative. 16 out of 30 stocks from the Sensex pack were in the red. European markets, which opened after Indian market, were firm in early trade.
The government today warned that increased capital inflows could endanger the growth process, although the economy is buoyant in tune with the trend witnessed since the last four years. "Increased capital inflows can impact macro-economic aggregates through the exchange rate, trade and monetary variables," said a half-year economic review tabled by Finance Minister P Chidambaram in Parliament today.
The review said increased inflows have been witnessed especially in the first half of current financial year 2007/08, while the economy's capacity to absorb it has not risen at the same pace, as indicated by the level of current account deficit. "There are short term challenges of managing inflows without endangering the growth and price stability," the review said.
The wholesale price index rose 3.01% in 12 months to 24 November 2007, below the previous week's rise of 3.21%, government data released today, 7 December 2007, afternoon showed. The annual inflation rate was 5.55% during the corresponding week of the previous year.
Some Asian markets edged lower after initial rise that was triggered by easing of US recession worries after US President George W. Bush, on Thursday, 6 December 2007, unveiled plans aimed at stemming US home loan foreclosures.
The 30-share BSE Sensex provisionally ended up 178.47 points or 0.90% to 19,974.34. Sensex hit a low of 19,706.43 in afternoon trade. At days low it shed 89.44 or 0.45%. Sensex had hit a high of 20,094.56 in early trade. At day's high, Sensex had gained 298.69 points.
Sensex had hit all-time high of 20,238.16 on 30 October 2007 but was not able to sustain at higher levels and it is yet to close above the physcological 20,000 level. The Sensexs all time closing high is 19,977.67 on 29 October 2007.
The broader S&P; CNX Nifty provisionally ended up 21.45 points or 0.36% at 5976.15. It touched a high of 6042.10 in early trade today, which is a new record high. Nifty had hit an all-time high of 6027.05 on Thursday, 6 December 2007.
The BSE Mid-Cap index was down 0.16% to 9,019.38. The BSE Small-Cap index was down 0.21% to 11,336.81.
Market breadth was positive. On BSE, 1467 stocks advanced, 1397 stocks declined and 45 stocks remained unchanged.
BSE clocked a turnover of Rs 8598 crore compared to yesterday (6 December 2007)s turnover of Rs 9,762.59.
Indias largest private sector firm by market capitalization & oil refiner Reliance Industries slipped 0.82% to Rs 2851, off days low of Rs 2806.
Indias largest private sector bank by assets ICICI Bank jumped 3.89% to Rs 1246.
Indias second largest software exporter by sales Infosys Technologies soared 4.65% to Rs 1711.
Housing Development Finance Corporation climbed 4.25% to Rs 2933, DLF gained 4.01% to Rs 1010.20, TCS rose 3.07% to Rs 1066, Ranbaxy Laboratories moved up 2.06% to Rs 406.15. and Bharti Airtel rose 2.30% to Rs 961.50.
Hindalco Industries fell 2.46% to Rs 188.25, Tata Steel declined 1.68% to Rs 833, ITC gave away 1.64% to Rs 189.50, ACC shed 1.57% to Rs 1065 and Bharat Heavy Electricals fell 1.54% to Rs 2743.
In Europe, key indices in UK, France, and Germany were up between 0.59% to 0.71%.
Asian markets were mixed today, 7 December 2007. Key indices in China, Japan, South Korea and Taiwan were up 0.21% to 1.13%. However, Key indices in Hong Kong and Singapore were down between 0.97% to 2.42%.
US markets surged on Thursday, 6 December 2007 on optimism that a plan announced by President George W Bush to stem US home foreclosures would keep the economy from sliding into a recession. The Dow Jones industrial average surged 174.93 points, or 1.30%, to end at 13,619.89. The Standard & Poor's 500 Index .SPX climbed 22.33 points, or 1.50%, to 1,507.34. The Nasdaq Composite Index soared 42.67 points, or 1.60%, to 2,709.03.
The Bank of England lowered its key interest rate on Thursday, 6 December 2007 citing signs of slowing growth. The Monetary Policy Committee, or MPC, voted to reduce the official bank rate paid on commercial bank reserves by 0.25 basis points to 5.5%. However the European Central Bank Monetary Policy Committee decided to keep interest rates on hold at 4% after their monthly policy meeting yesterday, 6 December 2007.
Crude oil was little changed in New York after rising the most in almost three weeks as U.S. inventories dropped as refiners prepared to meet heating demand. Crude oil for January delivery rose 3 cents to $90.26 a barrel on the New York Mercantile Exchange in Singapore. Brent crude oil for January settlement yesterday rose $1.69, or 1.9%, to settle at $90.18 a barrel on the London-based ICE Futures Europe exchange.
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