Market recovers

Rally in realty and capital goods stocks took the market higher in mid-morning trade. Auto and FMCG stocks witnessed selling pressure.




Asian markets were mostly in green today, 5 May 2008. Key indices in China, Hong Kong and Singapore were up 0.04% to 0.81%. However, Taiwan’s Taiwan Weighted Index was down 1.23%. Markets in Japan, and South Korea were closed for holiday.

At 11:20 IST, the 30-share BSE Sensex was up 54.55 points or 0.31% at 17,654.67. Sensex gained 86.88 points at day’s high of 17,687, hit at the onset of trading session. The index lost 46.4 points at day’s low of 17,553.72, hit in early trade.




The broader based S&P CNX Nifty was down 3.75 points or 0.07% at 5224.45.

The market breadth was strong on BSE with 1,897 shares advancing as compared to 420 stocks that declined. 34 stocks remained unchanged.

The BSE Mid-Cap index rose 1.49% to 7,345.33 and BSE Small-Cap index rose 0.87% to 8,898.09.




India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries rose 0.13% to Rs 2,678.25.

Diversified firm Jaiprakash Associates jumped 3.15% at Rs 296. The stock moved up on reports the firm has won a bid to buy 45% stake in small-sized energy explorer, Prize Petroleum for an undisclosed amount. The stake in unlisted company was put on the block by ICICI Bank and its arm ICICI Venture Funds.




India’s largest engineering and construction firm by revenue Larsen & Toubro rose 3.31% to Rs 3245. The firm is reportedly set to revamp its corporate structure to create a dozen operating companies under the direction of a separate board of directors. Effective 1 July 2008, the move will lead to L&T becoming the umbrella organisation with a board to administer the performance of all businesses and ownership of the brand, pegged at around $2 billion.

The BSE Bankex was up 0.65% at 9,201.86. Kotak Mahindra Bank (up 4.17% at Rs 856), Yes Bank (up 2.46% at Rs 178.80), Canara Bank (up 2.46% at Rs 247), and Union Bank of India (up 2.13% at Rs 167.70), edged higher.

India’s largest private sector bank by assets ICICI Bank rose 1.50% at Rs 949.50.




India’s largest commercial bank State Bank of India slipped 2.42% at Rs 1778.10. Net profit of State Bank of India rose 26.1% to Rs 1883.25 crore on 26.7% increase in operating income to Rs 16393.93 crore in Q4 March 2008 over Q4 March 2007. The bank announced the results at the fag end of the trading session on Friday, 2 May 2008.

Public sector lender Allahabad Bank rose 4.71% at Rs 91.15. Net profit of Allahabad Bank rose 34.8% to Rs 169.51 crore on 30.3% increase in operating income to Rs 1980.17 crore in Q4 March 2008 over Q4 March 2007.

The BSE Capital Goods index was up 1.54% at 14,464.46. Thermax (up 2.71% at Rs 512.80), Elecon Engineering Company (up 2.62% at Rs 164.45), BEML (up 1.96% at Rs 1,127), Bharat Heavy Electricals (up 0.20% at Rs 1,913) and Areva T&D (up 0.16% at Rs 1610), rose.




The BSE IT index was down 0.07% at 4,355.61. Wipro (down 2.13% at Rs 491.50), Aptech (down 2.075 at Rs 260.35), HCL Technologies (down 1.23% at Rs 292.45), Satyam Computer (down 0.40% at Rs 492.10) and TCS (down 0.37% at Rs 937.25). Infosys Technologies was steady at Rs 1789.75.

India's largest commercial vehicles maker by sales Tata Motors slipped 2.27% at Rs 674.75. Tata Motors on Friday, 2 May 2008, reported a decline of 5.8% in automobile sales, including exports, at 38,149 units for April 2008 compared with 40,486 units in the same month last year, largely on account of dip in passenger car segment and exports. Passenger vehicle sales saw a decline of 12%, with total sales of 14,843 units in the domestic market in April 2008




India's leading tractor maker by sales Mahindra & Mahindra slipped 0.92% at Rs 684. Goldman Sachs will invest Rs 700 crore in Mahindra & Mahindra (M&M) by picking up convertible debentures which will give it a 3.68% stake in the auto major.

IT firm MindTree was up 0.40% at Rs 485. MindTree on Friday, 2 May 2008 said it was buying a majority stake in software services firm Aztecsoft for Rs 190 crore. MindTree will initially buy 32.57% of Aztecsoft at Rs 80 per share and follow it up with an open offer for an additional 20%. It will be paying Rs 190 crore in the all-cash deal. The acquisition will be funded by internal accruals.

Among side counters, Godrej Industries (up 10% at Rs 321.35), Maytas Infrastructure (up 7.66% at Rs 685), UCO Bank (up 7.01% at Rs 47.30) and Gujarat NRE Coke (up 6.72% at Rs 158), surged