The market recouped large part of Friday (4 April 2007)'s losses
with firm Asian markets, which opened before Indian market,
providing a platform for recovery. A surge in inflation to a three
year high of 7% had spooked the market on Friday.
IT, banking, metal and FMCG stocks rose. ICICI Bank and Ranbaxy
Laboratories were major gainers from the Sensex pack. Maruti Suzuki
India and Ambuja Cements were major losers from the Sensex pack.
The market breadth was strong. All the sectoral indices on BSE were
in green.
The 30-share BSE surged 413.96 points or 2.7% at 15,757.08. At the
day's high of 15,851.88, the Sensex rose 508.76 points in
mid-afternoon trade. At the day's low of 15,321.56 Sensex lost
21.56 points in early trade.
The broader based S&P CNX Nifty was up 114.2 points or 2.46% at
4,761.20.
The BSE clocked a turnover of Rs 4,779 crore today compared to a
turnover of Rs 4,966.33 crore on Friday 4 April 2008.
Nifty April 2008 futures were at 4775, at a premium of 13.80 points
as compared to spot closing of 4761.20.
The NSE's futures & options (F&O) segment turnover was Rs 32,302.80
crore, which was lower than Rs 33,723.32 crore on Friday, 4 April
2008.
Asian stocks nudged higher today, 7 April 2008, as a
worse-than-expected US payrolls data on Friday, 4 April 2008, which
showed a fall of 80,000 jobs in March 2008, raised expectations of
further interest rate cut by the US Federal Reserve. Key benchmark
indices in Hong Kong, China, Japan, Singapore, South Korea, and
Taiwan were up by between 0.4% to 4.45%.
In Europe, key benchmark indices in France, Germany's DAX and UK
were up by between 0.63% to 0.85%. US equities held steady on
Friday after the poor showing in employment and despite worries
about banking sector earnings.
Meanwhile, Securities and Exchange Board of India (Sebi) chairman
C.B. Bhave today said the Sebi will hold a meeting with foreign
funds and their custodians to discuss issues regarding the proposed
margins imposed on institutional investors. Sebi had said last
month that institutional investors will be required to pay a margin
on trades executed in the cash market by the next day, effective
from 21 April 2008.
As per the provisional figures on NSE, the foreign institutional
investors (FII)s bought shares worth Rs 346.04 crore today 7 April
2008 and domestic funds bought shares worth Rs 245.93 crore.
The market breadth was strong: on BSE 1556 shares advanced as
compared to 1071 that declined. 57 shares remained unchanged.
The BSE Mid-Cap index up 1.31% to Rs 6,344.72 and BSE Small-Cap
index up 0.82% to 7,777.94.
BSE Bankex (up 4.14% to 7,904.09), BSE FMCG index (up 4% to
2,384.57) and BSE Metal index (up 2.76% to 13,811.56) outperformed
Sensex.
BSE Oil & Gas index (up 2.6% to 10,550.12), BSE Consumer Durables
index (up 2.52% to 3,913.88), BSE HealthCare index (up 2.47% to
3,940.66), BSE Realty index (up 1.86% to 7,483.56), BSE IT index
(up 1.66% to 3,748.57), BSE Power index (up 1.44% to 3,006.81), BSE
PSU index (up 1.3% to 7,269.14), BSE Auto index (up 1.27% to
4,433.98), BSE Capital Goods index (up 1.07% to 12,755.93)
underperformed Sensex.
Banking stocks galloped. ICICI Bank (up 5.97% to Rs 809.30), State
Bank of India (up 4.24% to Rs 1,673.35) and HDFC Bank (up 0.85% to
Rs 1,303.10) edged higher.
FMCG stocks spurted. United Spirits (up 4.34% to Rs 1,655.15), ITC
(up 4.73% to Rs 210.30) and Hindustan Unilever (up 4.74% to Rs 253)
edged higher.
Metal stocks rose. National Alluminium Company (up 4% to Rs
448.35), Sterlite Industries (up 3.77% to Rs 762.30), Tata Steel
(up 2.82% to Rs 679.35), Hindalco Industries (up 2.55% to Rs
172.95) and Steel Authority of India (up 1.94% to Rs 167.85) edged
higher.
IT stocks rose. India's largest IT services exporter by sales Tata
Consultancy Services rose 3.44% to Rs 900.10. The company has
signed a new multi-year contract with Chrysler LLC to provide a
comprehensive portfolio of IT services. Wipro (up 4.42% to Rs
433.95), Satyam Computer Services (up 1.62% to Rs 432.15) and
Infosys (up 0.63% to Rs 1492.20) edged higher.
India's largest private sector company in terms of market
capitalisation and oil refiner Reliance Industries rose 3.6% to Rs
2,405.70. As per reports, Reliance Industries is planning to enter
into the rig manufacturing business besides investing $2.5 billion
to enter into petrocoke gasification.
India's second largest telecom services provider by sales Reliance
Communications rose 1.17% to Rs 506. It has reportedly formed a
joint venture with a local firm to launch GSM mobile services in
Sri Lanka by this year.
India's largest state-run oil exploration firm in terms of revenue
ONGC rose 1.19% to Rs 1,017.85.ONGC Videsh (OVL), the overseas arm
of Oil and Natural Gas Corporations (ONGC), will reportedly sign an
agreement on 8 April 2008 to take a 40% stake in the San Cristobal
oilfield in Venezuela. OVL will make a total investment of $355.7
million comprising signature bonus of $173.1 million for the stake,
the reports added.
India's largest truckmaker by sales Tata Motors rose 3.1% to Rs
632.65 on reports it had raised the price of trucks and buses by an
average of 3.5 % from 1 April 2008 to offset higher raw material
costs.
Bharti Airtel (up 4.41% to Rs 818.40), Ranbaxy Laboratories (up
5.59% to Rs 483.85), Jaiprakash Associates (up 4.84% to Rs 231.95)
and Grasim Industries (up 3.39% to Rs 2627.55) edged higher from
the Sensex pack.
Maruti Suzuki India (down 0.57% to Rs 759.90), Reliance Energy
(down 0.3% to Rs 1,162.90) and Ambuja Cements (down 0.84% to Rs
118.10) edged lower from the Sensex pack.
Sita Shree Food Products settled at Rs 43.90, a premium of 46.33%
over the IPO price of Rs 30. The company had priced the IPO at the
top end of the Rs 27 to Rs 30 price band.
Indiabulls Securities clocked the highest volume of 1.51 crore
shares on BSE. Reliance Natural Resources (1.24 crore shares),
Ispat Industries (1.18 crore shares), Reliance Petroleum (1.07
crore shares) and Orchid Chemicals and Pharmaceuticals (1.05 crore
shares) were other volume toppers in that order.
Reliance Capital clocked the highest turnover of Rs 229.15 crore on
BSE. Orchid Chemicals and Pharmaceuticals (Rs 204.96 crore),
Reliance Petroleum (Rs 183.34 crore), Bharat Heavy Electricals (Rs
182.71 crore) and Reliance Industries (Rs 168.07 crore) were other
turnover toppers in that order.
Sensex had plunged 489.43 points or 3.09% at 15,343.12 on Friday, 4
April 2008, on fears of monetary tightening by the Reserve Bank of
India after the latest data showed a surge in inflation to a 3-year
high of 7% in late March 2008.
The next major trigger for the market is Q4 March 2008 results of
India Inc. Analysts will be closely watching what the company
managements have to say about the outlook for the year ending March
2009 (FY 2009). Analysts will also scrutinize disclosures that
companies may make regarding foreign exchange derivatives products
that they have bought on the advice of their bankers. A steep
decline in the value of the US dollar against the Japanese Yen and
the Swiss Franc hit Indian corporates which have used these two
currencies (Yen and Franc) extensively to swap their rupee
denominated debt.
As regards Q4 March 2008 results, Morgan Stanley expects 23% growth
in net earnings of 104 out of 108 firms in its Indian coverage
universe in Q4 March 2008 over Q4 March 2007.
Good results are expected from the telecom sector on the back of
strong growth in new subscribers additions. Infrastructure and
engineering firms, too, are seen reporting decent numbers in Q4
March 2008 on the back of healthy order book positions. The
performance of auto firms is likely to be sluggish due to muted
volume growth and rise in input costs.
A depreciation of the rupee against the dollar is likely to drive
good results from the IT sector on a sequential basis in Q4 March
2008 over Q3 December 2007, though the focus here is on guidance
for the year ending March 2009 from IT bellwether Infosys
Technologies. Infosys guidance will give investors a sense of the
effect of the weakening US economy on technology spending by
companies there.
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