The market regained strength in afternoon trade, after oscillating in a narrow range in early afternoon trade. Latest data showing marginal rise in inflation boosted the sentiment. Inflation based on the wholesale price index (WPI) rose to 8.24% in the year through 24 May 2008, compared to previous week's rise of 8.10%. The government also revised the annual inflation rate for the year through 29 March 2008 to 7.75% as compared to 7.41% reported earlier.

Global cues were positive, with European and Asian markets trading in positive zone. While US markets saw a sharp rally yesterday, 5 June 2008. The S&P; CNX Nifty raced past the 4,700 mark.

Crude oil climbed close to $6 on Thursday, 5 June 2008, to more than $127 per barrel as funds shifted back into oil when the dollar fell against the euro following a signal from the European Central Bank that it may raise interest rates. The crude contract climbed another 0.3% in Asian trading today.

At 13:30 IST, the 30-share BSE Sensex was up 96.96 points or 0.61% at 15,866.34. Sensex lost 68.42 points at days low of 15,701.31 touched in mid-morning trade. Sensex opened 144.69 points higher at 15,914.41 and struck a high of 15,970.70 in early trade. At the days high, Sensex gained 200.98 points.

The broader based S&P; CNX Nifty was up 35.65 points or 0.76% at 4,712.60

The market breadth was positive on BSE with 1420 shares advancing as compared to 1054 that declined. 90 remained unchanged.

The BSE Mid-Cap index rose 0.44% to 6,428.27 and the BSE Small-Cap index gained 0.63% to 7,783.98. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 2754 crore by 13:30 IST as compared to Rs 2351 crore by 10:30 IST.

Among the 30-member Sensex pack, 16 advanced while the rest declined.

Mahindra & Mahindra (M&M;), the countrys largest tractor company in terms of sales, advanced 4.31% to Rs 587 on 31,866 shares. On 5 June 2008 the company agreed to buy Italian auto designer Engines Engineering for an undisclosed sum. It was the top gainer from Sensex pack.

Indias largest state run engineering company in terms of outstanding order book Bharat Heavy Electricals surged 3.05% to Rs 1491. On 26 May 2008, the company had bagged Rs 1,150 crore turnkey contract from a joint venture of HPCL and Mittal Energy for setting up an energy efficient 153 megawatt captive power plant at Bhatinda in Punjab.

The countrys second largest power generation company in terms of sales, Reliance Infrastructures, (formerly known as Reliance Energy), gained 2.01% to Rs 1153.60 after reports that the company won regulatory approval to raise power tariff by as much as 10.22% for its 2.6 million users in Mumbai. Meanwhile rival power generation company Tata Power Company jumped 4.25% to Rs 1310 after the company also reportedly hiking tariff marginally. The new tariff will be applicable from June 1 to March 31, 2009.

Most IT pivotals gained. Satyam Computer Services (up 0.55% to Rs 515), TCS (up 0.38% to Rs 986.50), and Infosys Technologies (up 0.63% to Rs 1991.45), edged higher.

However, Indias third largest software services exporter Wipro lost 1.32% to Rs 521.40.

Indias largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) recovered from days low of Rs 2212 and was now up 1.05% to Rs 2271.25 on 10.66 lakh shares. The stock had surged to an intra-day high of Rs 2299 in opening trade.

Interest rate sensitive banking shares extended gains after latest data showed slight rise in inflation. ICICI Bank (up 1.50% to Rs 791.70) and HDFC Bank (up 1.05% to Rs 1257.85) advanced.

Indias largest stare-run bank in terms of net profit State Bank of India rose 0.31% to Rs 1358.50, after touching a low of Rs 1328. The bank signed an agreement with Societe Generale Securities Services, a division of Societe Generale Group, to form a joint venture company for providing custody services.

Indias largest private sector aluminium company in terms of sales, Hindalco Industries lost 1.48% to Rs 179.20 on 2.66 lakh shares. It was the top loser from Sensex pack.

Maruti Suzuki India (down 1.43% to Rs 751.50), ITC (down 1.17% to Rs 219.75) and Hindustan Unilever (down 1% to Rs 235.50), edged lower from the Sensex pack.

Reliance Industries was the top traded counter on BSE with turnover of Rs 246.77 crore followed by Anus Labs (Rs 115.43 crore), Gokul Refoils (Rs 105.34 crore), Reliance Capital (Rs 103.48 crore), and Cairn India (Rs 89.88 crore), in that order.

Petron Engineering Construction was down 1% to Rs 251.65 despite bagging an order worth Rs 3.68 crore from India Cements for its Malkapur cement plant.

GMR Infrastructure rose 0.37% to Rs 123.45 after its 100% subsidiary GMR Energy entered into a power purchase agreement with Karnataka Power Transmission Corporation for sale of power for a period of 7 years.

Era Infra Engineering was down 0.35% to Rs 601 even as it bagged a contract from Mumbai Railway Vikas Corporation for construction of a car shed.

Punj Lloyd gained 1.35% to Rs 282.50 after the company said it has secured an order worth Rs 649 crore for motor spirit quality upgradation project from Indian Oil Corporation for its Barauni Refinery, Bihar.

Analysts opine that higher inflationary expectations following the recent fuel price hike have given rise to fears of a cash reserve ratio (CRR) or interest rate hike by the Reserve Bank of India, which is a negative for markets. Reserve Bank of India governor YV Reddy yesterday, 5 June 2008 hinted at a possible increase in CRR in an attempt to curb inflationary expectations

European markets, which opened after Indian markets were firm in opening trade. Key benchmark indices in United Kingdom (up 1.11% to 6,062), France (up 1.23% to 4967.31), and Germany (up 0.79% to 6996.50), advanced.

Most Asian markets, which opened before Indian markets, were trading higher today, 6 June 2008. Japan's Nikkei (up 1.03% at 14,489.44), Hang Seng (up 0.79% at 24,445.89), Taiwan's Taiwan Weighted (up 0.08% at 8,745.35), Singapore's Straits Times (up 0.26% at 3,151.94), advanced. However, China's Shanghai Composite declined 0.56% at 3,332.77.

US markets rallied yesterday, 5 June 2008 on stronger-than-expected May 2008 sales by Wal-Mart and other retailers and a surprising fall in weekly jobless claims, spurring optimism about the economy's health. The Dow Jones industrial average gained 213.97 points, or 1.73%, to 12,604.45. The S&P; 500 index advanced 26.85 points, or 1.95%, to 1,404.05, and the Nasdaq Composite index surged 46.80 points, or 1.87%, to 2,549.94

The European Central Bank said yesterday, 5 June 2008, it would keep key lending rates unchanged at 4%. The bank, however, anticipates inflation to be more persistent than previously anticipated. Also the Bank of England kept its benchmark interest rate unchanged at 5% yesterday, 5 June 2008.

Back home, frenzied buying coupled with short covering after three straight days of fall triggered a solid rally yesterday, 5 June 2008. The 30-share BSE Sensex jumped 254.93 points or 1.64% at 15,769.72 and the broader based S&P; CNX Nifty was up 91.35 points or 1.99% to 4,676.95, on that day.

As per provisional data, foreign funds sold shares worth a net Rs 1418.34 crore yesterday, 5 June 2008. Domestic funds bought shares worth a net Rs 570.03 crore on that day.

Foreign institutional investors (FIIs) were net buyers of Rs 1054.43 crore in the futures & options segment yesterday, 5 June 2008. They were net buyers of index futures to the tune of Rs 1035.25 crore and bought index options worth Rs 405.81 crore. They were net sellers of stock futures to the tune of Rs 402.85 crore and bought stock options worth Rs 16.22 crore.

Meanwhile, market regulator Securities and Exchange Board of India (Sebi) yesterday, 5 June 2008, ruled out relaxing curbs imposed last year on participatory notes (PNs), a derivative tool that enables un