Short covering ahead of expiry of June 2008 derivatives contracts
helped market move higher for the second straight session today.
However, the market underwent choppy swings throughout the day.
Asian and European markets were in the red. Index heavyweight
Reliance Industries surged close to 4% on high volumes. Oil & gas,
IT and metal stocks were in demand. However real estate stocks
faltered.
The US Federal Reserve on Wednesday, 25 June 2008, held interest
rates steady at 2% on Wednesday, as widely expected, and signalled
it was in no rush to raise them, even as it voiced greater concerns
about inflation.
The 30-share BSE Sensex gained 201.75 points or 1.42% at 14,421.82.
Sustained selling pressure after a firm start pulled the market in
negative zone at one point of time in early afternoon trade. Sensex
lost 23.39 points at day's low of 14,196.68. The Sensex opened with
an upward gap of 80.65 points at 14,300.72 and advanced further to
touch a high of 14,449.81 in late trade. At the day's high, the
Sensex gained 229.74 points.
The broader based S&P CNX Nifty was up 63.20 points or 1.49% at
4,315.85. Nifty July 2008 futures were at 4252.95, a huge discount
of 62.90 points as compared to spot closing.
As per reports, the marketwide rollover of positions from June 2008
contracts to July 2008 contracts in the derivatives segment stood
at 74.40% while that of Nifty was 67%. June 2008 derivaties
contracts expired today.
The BSE Sensex is down 5,865.17 points or 28.91% in the calendar
year 2008 so far from its close of 20,286.99 on 31 December 2008.
It is 6,784.95 points or 31.99% away from its all-time high of
21,206.77 struck on 10 January 2008.
Sectoral indices on BSE displayed mixed trend today. BSE Power (up
0.43% to 2,454.81), BSE Realty index (down 2.02% at 5,102.43), BSE
Metal index (up 1.15% to 13,923.41), BSE TecK index (up 0.60% to
3,217.92), BSE FMCG index (up 0.58% to 2,142.62), BSE Auto (up
0.88% at 3,894.75), BSE Consumer Durables index (down 0.42% to
3,767.06), BSE Bankex (down 0.07% at 6,471.59), BSE PSU index (up
0.46% to 6,082.71), and BSE Health Care index (up 0.46% at
4,209.15), BSE Capital Goods index (up 0.79% at 10,887.23),
underperformed the Sensex.
The BSE Oil & Gas index (up 2.82% to 9,677.38) and BSE IT index (up
2.12% to 4,181.86), outperformed the Sensex.
The market breadth was positive on BSE with 1468 shares advancing
as compared to 1159 that declined. 75 remained unchanged.
The BSE Mid-Cap index slipped 0.08% to 5,742.04 while the BSE
Small-Cap index gained 1.01% to 7,129.08.
The total turnover on BSE amounted to Rs 5185 crore as compared to
Rs 5,265.18 crore yesterday, 25 June 2008. Turnover in NSE's
futures & options segment amounted to Rs 79103.71 crore as compared
to Rs 81001.29 crore yesterday, 25 June 2008.
Among the 30-member Sensex pack, 17 advanced while the rest
slipped.
India's largest private sector company in terms of market
capitalisation and oil refiner Reliance Industries (RIL) advanced
3.92% to Rs 2219 on high volumes of 25.24 lakh shares. The stock
had hit a high of Rs 2259 and low of Rs 2145.55 during the day. RIL
will start pumping 25 million standard cubic metres a day (mmscmd)
of natural gas by September from its D-6 field in the Krishna
Godavari basin, the oil ministry said on Wednesday, 25 June 2008.
It said in a statement that the output would be raised to 40 mmscmd
by March 2009.
Software pivotals advanced on fresh buying as Fed's decision to
keep rates steady bolstered expectations technology spending in US
would remain firm. Satyam Computer Services (up 1.95% to Rs
453.90), Wipro (up 4.60% to Rs 477.50), and Infosys Technologies
(up 1.50% to Rs 1774), and TCS (up 1.05% to Rs 887), advanced.
Indian software exporters get a majority of their revenue from US
clients.
ITC, the country's biggest cigarette manufacturer in terms of sales
gained 2.23% to Rs 190.50. The stock rose on reports that ITC
Infotech, a $100 million, wholly-owned subsidiary of ITC, is
reportedly set to pull out of its BPO equal joint venture with
US-based Sitel Corporation.
Larsen & Toubro, the country's largest private sector engineering
company in terms of order book rose 1.95% to Rs 2358. The stock is
currently trading 1:1 cum bonus.
Tata Motors (up 2.10% to Rs 484.50), Cipla (up 3.90% to Rs 215.70),
and HDFC (up 1.43% to Rs 2199.80), edged higher from Sensex pack.
India's largest bank in terms of net profit State Bank of India
gained 1.40% to Rs 1220 after the state-run bank raised its
benchmark prime lending rate by 50 basis points to 12.75% with
effect from 27 June 2008. The bank made this announcement during
trading hours today, 26 June 2007.
Select cement stocks gained on fresh buying. India's largest cement
company in terms of sales Ambuja Cements jumped 5.27% to Rs 86.90
on 4.61 lakh shares. It was the top gainer from Sensex pack.
ACC (up 0.57% to Rs 598.35), Mysore Cements (up 1.36% to Rs 29.90),
UlttaTech Cement Company (up 3.33% to Rs 588.90), and Prism Cement
(up 4.08% to Rs 34.40), advanced
Metal stocks, too, were in demand. Sesa Goa (up 1.86% to Rs 3431),
JSW Steel (up 2.51% to Rs 1032), Steel Authority of India (up 2.09%
to Rs 154), National Aluminium Company (up 2.46% to Rs 370.90), and
Sterlite Industries (up 3.17% to Rs 731), gained.
India's largest private sector steel manufacturer in terms of
sales, Tata Steel gained 1.49% to Rs 754. The company reported
195.64% jump in consolidated net profit to Rs 12349.98 crore on
415.04% spurt in total income to Rs 132110.09 crore in the year
ended March 2008 over the year ended March 2007. The results are
non comparable due to merger Corus Group with Tata Steel.
Realty stocks declined on fresh selling. DLF (down 2.68% to Rs
446), Indiabulls Real Estate (down 1.71% to Rs 325), Purvankara
Projects (down 7.70% to Rs 169.70), Mahindra Lifespace Developers
(down 6.17% to Rs 475.30), and Ansal Infrastructure (down 6.89% to
Rs 79), edged lower.
Reliance Communications (RCom), the country's second largest
telecom services provider in terms of market capitalisation slumped
2.76% to Rs 495 on 22.98 lakh shares. It was the top loser from
Sensex pack. The stock had struck an intra-day high of Rs 518.25.
As per recent reports, RCom's proposed merger deal with South
Africa based global operator, MTN is expected to close by first
week of July 2008
Bharti Airtel (down 2.28% to Rs 762.20), Ranbaxy Laboratories (down
2.50% to Rs 531.75) and HDFC Bank (down 2.60% to Rs 1046.05) edged
lower from the Sensex pack.
Fertliser stocks surged after Chemicals and fertilisers Minister
Ram Vilas Paswan today said the Union cabinet has approved a new
fertiliser policy. Tata Chemicals (up 5.18% at Rs 312.80),
Nagarjuna Fertilizers & Chemicals (up 4.94% at Rs 40.35), Gujarat
State Fertilizers & Chemicals (up 4.82% at Rs 162.10), Chambal
Fertilisers & Chemicals (up 6.77% at Rs 81.20), Rashtriya Chemicals
And Fertilizers (up 5% at Rs 56.20), Zuari Industries (up 0.98% at
Rs 238) and National Fertilizers (up 5% at Rs 57.15), soared.
The existing fertiliser policy is likely to be renewed with new
additions. The price of fertilisers based on phosphorus and
potassium will be linked to import price parity, Paswan said.
The new fertiliser policy will be fix base rate for 17 items and
will be for long term versus the current practice of yearly
changes, reports suggest. Incentives would be offered to fertilizer
manufacturers for producing DAP as an end product.
Reliance Industries was the top traded counter on BSE with turnover
of Rs 559.39 crore followed by Reliance Capital (Rs 268.28 crore),
Niraj Cement & Structurals (Rs 230.09 crore), Chambal Fertilisers
(Rs 176.85 crore), and Anu's Labs (Rs 167.75 crore), in that order.
Chambal Fertilisers & Chemicals topped volumes charts clocking
volumes of 2.18 crore shares followed by Nagarjuna Fertilisers &
Chemicals (1.32 crore shares), Reliance Natural Resources (1.17
crore shares), Niraj Cement & Structurals (1.09 crore shares) and
IFCI (1 crore shares), in that order.
Shares of a host of state-run banks rose. Allahabad Bank (up 3.80%
to Rs 57.65), Bank of India (up 3.05% to Rs 243.50), Canara Bank
(up 2.14% to Rs 181.05), and Vijaya Bank (up 1.13% to Rs 35.65),
surged.
Rayban Sun Optics India was locked at 20% upper circuit at Rs
109.20 on BSE after its promoter Ray Ban Indian Holdings Inc
proposed a voluntary delisting of the shares of the company from
the Bombay Stock Exchange. The company made the announcement after
market hours on Wednesday, 25 June 2008.
Aban Offshore was down 1.15% to Rs 3,120 despite receiving two
orders totaling $55 million to provide offshore services for a
total duration of 300 days.
UCO Bank rose 4.62% to Rs 36.20 on reports it may raise between Rs
300 to Rs 400 crore via a follow-on public offer in
October/December 2008.
HCL Technologies rose 4.32% to Rs 273 after the company said
Columbia Missouri Employers Mutual has selected HCL as the systems
integrator for implementing Guidewire ClaimCenter® as its new
claims system. The company made this announcement after trading
hours on Wednesday, 25 June 2007.
Atlas Copco India slumped 10% to Rs 1,067.35 after the company said
on Wednesday, 25 June 2008, its board has decided to defer a
decision on buy back of shares. The company made this announcement
after trading hours on Wednesday, 25 June 2007.
Coromandel Fertilisers galloped 9.39% to Rs 123.50 after the
company formed a wholly owned subsidiary in Mauritius for
channelising fututre investments abroad. The company made the
announcement during market hours today, 26 June 2008.
European markets, which opened after Indian market, were trading
lower. Key benchmark indices in United Kingdom, France and Germany
were down by between 1.21% and 1.49%.
Asian markets, which opened before Indian market, dipped in
negative zone after firm start today, 26 June 2008. Hong Kong's
Hang Seng (down 0.79% at 22,455.67), Straits Times (down 0.16% at
2,981.81), China's Shanghai Composite (down 0.11% at 2,901.85),
Japan's Nikkei (down 0.05% at 13,822.32), South Korea's Seoul
Composite (down 0.02% at 1,717.42) and Taiwan Weighted (down 0.55%
at 7,811.80), declined.
US markets ended on a positive note yesterday, 25 June 2008 after
some volatile action following the Fed's decision to keep interest
rates unchanged. The Dow Jones industrial average advanced 4.40
points, or 0.04%, to 11,811.83. The Standard & Poor's 500 index
gained 7.68 points, or 0.58%, to 1,321.97, and the Nasdaq composite
index was up 32.98 points, or 1.39%, to 2,401.26.
The UPA-Left committee on the India-United States nuclear deal
decided to convene another meeting to finalise its findings in the
committee's ninth meeting held yesterday, 25 June 2008.
After the meeting, Prime Minister Manmohan Singh and Congress
president Sonia Gandhi on Wednesday, 25 June 2008, night discussed
the outcome of the meeting of the United Progressive Alliance-Left
panel on the India-US Nuclear Agreement. As per reports, the
Congress president would consult allies before taking a decision on
going ahead with the nuclear deal.
Oil steadied above $134 a barrel on Thursday, 26 June 2008, after
dropping more than $2 on Wednesday as US government data showed a
surprise increase in domestic crude stocks last week. The market
will focus on the US economic data due later today to get a clearer
picture of the economy and its impact on oil demand.
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