The Sensex posted gains consecutively for the third straight sessions, as investors flocked blue-chip shares, inspired by robust set of results posted by them for the quarter ended September 2007. All this came on the back of volatility, which is expected to remain high ahead of the expiry of October 2007 derivatives contracts on Thursday, 25 October 2007.
The Sebis board meet tomorrow 25 October 2007 to take a decision on proposals regarding P-notes, Reserve Bank of India's (RBI) mid-term review of annual policy due on 30 October 2007 and US Federal Reserves meeting on 31 October 2007 on interest rates, will be key events that will drive the market in the near term.
After swinging between positive and negative zones, the market closed with marginal gains. Earlier today, 24 October 2007, the market opened with a bang on continued buying interest in blue-chip stocks tracking firm global markets. But later it slipped in the red on selling pressure.
The market staged a comeback in late-afternoon trade to post decent gains. But fresh selling dragged it lower. The market breadth, however, was strong throughout trading.
European markets were trading higher, while Asian markets ended lower.
The BSE 30-share Sensex closed higher by 20.07 points, or 0.11% to 18,512.91. It opened with a 235.06-point upward gap at 18,727.90 and rallied further to strike an intra-day high of 18,832.49, before slipping to a low of 18,317.17. The broad market index moved in a band of 515.32 points for the days trading session.
The Sensex is now 685.75 points away from its all-time high of 19,198.66 struck on 18 October 2007.
The broader based S&P; CNX Nifty outperformed its rival index BSE Sensex, as it rose 22.45 points or 0.41% at 5,496.15, powered by exclusive Nifty stocks of Reliance Petroleum (up 6.01% to Rs 178.95), and Tata Power (up 3.18% to Rs 1057.60).
The Nifty October 2007 futures settled at 5466, a sharp discount of 30.15 points as compared to spot closing.
The BSE Mid-Cap index was up 1.25% to 7,650.69 and the BSE Small-Cap index gained 1.17% to 9,242.38. Both these indices outperformed the Sensex.
Sectoral indices on BSE displayed mixed trend. Bankex (up 1.07% to 9,665.67), BSE Capital Goods Index (up 2% at 17,112.32), BSE Metal Index (up 2.47% at 15,772.94), BSE Consumer Durables index (up 2.98% to 5,124.67), BSE FMCG Index (up 0.33% at 2,135.45), BSE PSU index (up 0.28% to 8,775.61), and BSE Realty (up 2.01% to 9,760.53), outperformed the Sensex.
BSE Health Care Index (up 0.04% at 3,853.90), BSE Oil and Gas Index (down 0.03% at 10,736.91), BSE Auto Index (down 0.89% at 5,404.26), BSE IT Index (down 1.18% at 4,580.23), BSE TecK index (down 1.11% to 3,930.33), were underperformers.
Eighteen of the 30 members of the Sensex pack declined, while the rest gained. The market breadth was strong on BSE: 1,532 scrips had advanced as compared to 1,175 that declined, while 50 remained unchanged.
The total turnover on BSE at the end of the session amounted to Rs 7968 crore as compared to Rs 7418 crore yesterday, 23 October 2007.
The NSE F&O; turnover spiked to Rs 107495.25 crore as compared to Rs 97393.15 crore yesterday, 23 October 2007.
Reliance Energy, the countrys second largest power utility company by sales, extended early gains and was up 8.75% to Rs 1656.50 on 36.66 lakh shares. It was the top gainer from the Sensex pack. The stock's rise follows chairman Anil Ambani's briefing to the media after market hours yesterday, 23 October 2007, that Reliance Power will be valued nearly two times its holding company, Reliance Energy, after the mega initial public offer. In its prospectus, Reliance Power has said that it would dilute 11.5% of the post-issue equity.
Indias leading bank by net profit State Bank of India jumped 5.03% to Rs 1904.05. After market hours yesterday, 23 October 2007, SBI Life Insurance Company posted net profit of Rs 14.09 crore for the first half year ended 30 September 2007 with an 80% increase in its total premium collection.
SBI Life Insurance has become the first private sector life insurance company to make profit. A 74:26 joint venture between the State Bank of India and Cardif, a BNP Paribas company, it manages assets over Rs 6000 crore.
Indias fourth largest software services exporter Satyam Computer Services retracted sharply from the days high of Rs 489.65. It settled 0.25% lower to Rs 460.60. Before market hours yesterday, 23 October 2007, the company reported a rise in net profit by 7.19% to Rs 417.15 crore on a 10.75% increase in sales to Rs 1948.24 crore in Q2 September 2007 over Q1 June 2006. The company revised upwards earning as well revenue guidance for FY 2008 (year ending 31 March 2008), both in rupees and dollars.
Other IT pivotals were not spared either. Infosys (down 2.31% to Rs 1839), TCS (down 1.79% to Rs 1045.10), and Wipro (down 1.46% to Rs 485) declined.
Indias largest engineering company by sales Bharat Heavy Electricals (Bhel) slipped 1.06% to Rs 2270 on profit booking after it had jumped 11.82% to Rs 2300 yesterday, 23 October 2007. Bhel said on Monday, 22 October 2007, that due to some unavoidable circumstances, the meeting of its board of directors to consider Q2 September 2007 results, scheduled to be held on 25 October 2007, is postponed to 29 October 2007.
Larsen & Toubro (L&T;), the nation's largest engineering and construction company by sales, rose 2.06% to Rs 3399.70. It had surged 7.69% to Rs 3336 yesterday, 23 October 2007. On 18 October 2007, L&T; said it won four orders worth Rs 452 crore for projects in Andhra Pradesh
Metal stocks firmed up on fresh buying. Hindalco Industries (up 1.86% to Rs 188.45), Jindal Saw (up 3.29% to Rs 610), and Tata Steel (up 1.95% to Rs 912.90) were the gainers from the metal pack.
India's biggest power generation firm by revenue NTPC advanced 1.75% to Rs 221.15 on reports it form a joint venture with an Indonesian coal producer to ensure fuel supplies for its projects.
India's largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) rebounded in the green. It settled 0.25% higher at Rs 2608 on 10.99 lakh shares. It had hit an intra-day high of Rs 2651 in early trade. It had also slipped to a low of Rs 2540.25. As part of restructuring exercise, RIL has reportedly decided to hive off Reliance Fresh into a separate company, Ranger Farm, for single point accountability. Reliance Fresh sells food, fruits and vegetables and consumer products.
Indias largest oil exploration company by market capitalisation Oil and Natural Gas Corporation slumped 3.69% to Rs 1102, off its days low of Rs 1083. It was the top loser from the Sensex pack. The stock had surged 4.28% to Rs 1144.80 yesterday, 23 October 2007, on reports its joint venture firm ONGC-Mittal Energy had acquired a 30% participating interest in an exploration block in the Caspian Sea, Turkmenistan.
Auto stocks were under selling pressure. Tata Motors (down 2.41% to Rs 777), Mahindra & Mahindra (down 1.84% to Rs 760), Bajaj Auto (down 1.93% to Rs 2475), edged lower.
Shares from the Reliance group dominated the turnover charts on BSE. Reliance Energy was the top traded counter on BSE with turnover of Rs 593.96 crore, followed by Reliance Petroleum (Rs 368.37 crore), Reliance Industries (Rs 286.60 crore), and Reliance Communications (Rs 284.47 crore).
Among the noteable small- and mid-cap winners, BL Kashyap & Sons (up 20% to Rs 1449), Bhuruka Gases (up 20% to Rs 24.90), Hercules Hoists (up 20% to Rs 5182.60), AVT Natural Products (up 20% to Rs 105.40), and Fairfield Atlas (up 20% to Rs 67.55) surged.
Real-estate stocks gained on fresh buying on speculation that the Reserve Bank of India (RBI) may keep interest rates unchanged in its mid-term review of annual policy due on 30 October 2007. Earlier the street was expecting a 50 basis-point hike. 100 basis points equals 1%.
Shares from real estate pack advanced