Market pares gains

The market pared gains in mid-morning trade as investors turned cautious ahead of inflation data. Market had surged in early trade after Securities Exchange Board of India, on Thursday, 22 May 2008, kept in abeyance a plan to impose upfront margins for institutional trades in the cash market.




Auto and metal stock declined while capital goods and consumer durables stocks rose. The market breadth was strong. Asian markets which opened before Indian markets were mixed.

Securities & Exchange Board of India (Sebi) on Thursday, 22 May 2008, said it has kept in abeyance a decision to impose upfront margins for institutional trades in the cash market. Sebi had earlier said that institutional investors will be required to pay upfront margins from 16 June 2008. In the light of difficulties expressed by the market participants regarding implementation of upfront margining of institutional trades in the cash market, it has been decided to keep the same in abeyance, Sebi said in a circular issued to stock exchanges.




At 11:27 IST, the 30-share BSE Sensex was up 50.68 points or 0.3% at 16,957.79. Sensex gained 147.23 points at day’s high of 17,054.34 touched in early trade.

The broader based S&P CNX Nifty was up 8.35 points or 0.17% at 5,033.88.

The market breadth was strong on BSE with 1,364 shares advancing as compared to 948 that declined. 80 remained unchanged.

Among the 30-member Sensex pack, 18 advanced while the rest declined.

The BSE Mid-Cap index rose 0.13% to 7,058.16 and BSE Small-Cap index gained 0.55% to 8,711.07.




Metal stocks declined. Sterlite Industries (down 2.25% to Rs 929), Hindalco Industries (down 2.1% to Rs 193.50), Tata Steel (down 0.65% to Rs 902.55) and Steel Authority of India (down 0.14% to Rs 175.45) edged lower. India's second largest aluminium maker by sales National Aluminium Company rose 2.14% to Rs 541.75.

Auto stocks declined. Maruti Suzuki India (down 2.19% to Rs 787), Tata Motors (down 1.88% to Rs 650), Hero Honda Motor (down 01.8% to Rs 787.05) edged lower.

India’s largest tractor maker by sales Mahindra & Mahindra was down 1.13% to Rs 645. Private equity ICICI Venture is reportedly partnering Mahindra & Mahindra in its bid to acquire Belgian gear maker VCST Industrial Products in a deal valued around 250 million euros.




Capital goods stocks rose. Larsen & Toubro (up 0.42% to Rs 2,927.70) and Suzlon Energy (up 0.86% to Rs 294.10) edged higher. However Bharat Heavy Electricals declined 0.16% to Rs 1,746.85.

Consumer Durables stocks rose. Videocon Industries (up 1.48% to Rs 407.40), Titan Industries (up 1.43% to Rs 1,215.05), Lloyd Electric (up 5.28% to Rs 120.70) edged higher.

Bharti Airtel (up 2.5% to Rs 838), HDFC (up 1.95% to Rs 2,678), HDFC Bank (up 1.17% to Rs 1,396), Jaiprakash Asssociates (up 0.71% to Rs 247.85), Reliance Infrastrucutre (up 1.06% to Rs 1,337) edged higher from the Sensex pack.

NTPC (down 1.06% to Rs 176.80), ICICI Bank (down 0.8% to Rs 873.35) edged lower from Sensex pack.




India’s largest IT exporter by sales Tata Consultancy Services (TCS) rose 0.64% to Rs 962.80. It has reportedly won a contract, estimated to be worth more than Rs 1000 crore, for processing Indian passport applications.

Asian markets were trading mixed. Key benchmark indices in Japan, China and South Korea were up between 0.24% to 0.44%. Key benchmark indices in Singapore, Hongkong and Taiwan were down by between 0.17% to 1.92%.