Sensex settles above 13,600 following 186-point surge
Renewed buying in blue chips boosted the market today. But in contrast to the recent trend, the participation in the rally was broad based which was evident in the strong market breadth with an advance-decline ratio of 2.4:1 on BSE. The market-sentiment was bright following the strong debut of Internet firm Info Edge (India), and due to a steady-to-firm trend in Asian stocks.
Sensex jumped 186.06 points or 1.3% to lifetime closing high of 13,616.77. The S&P CNX Nifty rose 62.10 points or 1.6% to a lifetime closing high of 3,918.25. The market held firm throughout the day. There was a takeoff in the key indices in the second half of the trading session.
BSE Small Cap Index rose 118.12 points or 1.8% to 6,416.61. BSE Mid Cap Index added 92.43 points or 1.6% to 5,546.86. Small-cap and mid-cap indices have underperformed the key indices Nifty and Sensex since the past few weeks.
The BSE clocked a turnover of Rs 4,041 crore compared to Monday’s Rs 4260 crore.
Select small-cap and mid-cap surged today. Today’s top gainers among small-cap and mid-cap space were Sika Interplant Systems (up 20% to Rs 103.90), Shrachi Securities (up 20% to Rs 63.70), Development Credit Bank (up 20% to Rs 63.20), Mount Shivalik Industries (up 20% to Rs 56), HOV Services (up 13.9% to Rs 161.60), DMC Vaults (up 14% to Rs 17.95), Yuken India (up 13.6% to Rs 166) and Vaibhav Gemes (up 13% to Rs 267).
Stronger than expected Q2 September 2006 results and FII inflow has boosted the bourses over the past few weeks. Sensex is up 44.8% in calendar 2006 so far.
FIIs have stepped up buying notwithstanding apprehension regarding stretched valuations. FII inflow in 2006 has reached $8.1 billion (till 20 November). FII inflow has stemmed from long-term pension funds and insurance firms. Inflow is also coming from hedge funds. Strong global liquidity has aided the fund flow.
Another factor that has contributed to the surge in foreign investment is the ever growing number of FIIs getting registered with Sebi everyday. In this calendar year, there has been an addition of over 170 FIIs, the aggregate now standing at 993. There are expectations that inflow will pick up further in December 2006 as allocations are made for the New Year.
However, foreign brokerage Merrill Lynch expects a slowdown in earnings growth of Sensex firms in FY 2008 (year ending 31 March 2008). `Excluding Reliance Communications, earnings in FY 2008 should rise only 11.2% versus the 27.5% forecast for FY 2007 (year ending 31 March 2007). If so, it would be the slowest earnings growth since FY 2002’, the brokerage stated in a Q2 earnings review released early this month. It however expects strong earnings growth to continue in Q3 December 2006.
Volatility is likely in the near term as traders square off or carry forward their outstanding contracts for November futures ahead of the expiry of November contracts next Thursday (30 November).
The market staged a solid intra-day rebound on Monday (20 November) after Sensex had plunged over 200 points at one point of time following RBI’s circular on Friday (17 November) which capped banks’ exposure to capital market.
In today’s trade, Bharti Airtel rose nearly 3% to Rs 622.35. The stock hit a lifetime high of Rs 625.70. Rival Reliance Communications rose 1.8% to Rs 416.70. The stock also attained a lifetime high of Rs 418. Both cellular services providers turned bullish amid reports that the Department of Telecom (DoT) will make available, additional radio frequency for cellular service providers.
IT pivotals were in demand for the second day in a row today, following reports that top Indian IT firms were chasing over a dozen deals on an average, the sizes of which range between $50 - $100 million. Satyam Computer gained 3.2% to Rs 455, HCL Tech rose 3% to Rs 647, TCS rose 2.8% to Rs 1,148 and Wipro added 2.6% to Rs 569.
Infosys edged slightly lower in volatile trade. The scrip shed 0.3% to Rs 2,246. The software giant today priced its sponsored ADR issue at $53.30 per ADR, a 3.2% discount to Monday’s closing price of $55.2. The company said the aggregate size of the ADR offer exceeds $1.6 billion. As part of this offering, 5,000,000 ADRs representing 5,000,000 equity shares, will be placed with Japanese investors through a public offer without listing (POWL).
Cigarette maker ITC gained 3.3% to Rs 184.35, and giant Hindustan Lever advanced 2.2% to Rs 248.35.
Tata Steel gained nearly 3% to Rs 476.85. Tata Steel has reportedly called an unscheduled board meeting on Thursday, to discuss the fallout of CSN’s 475 pence per share counter-bid for Anglo-Dutch steelmaker Corus. Tata Steel had bid at 455 pence per share for Corus. Tata Steel's board is likely to discuss various options including the possibility of a revised offer for Corus. Media reports also indicated that Tata Steel might win the takeover battle if it matched CSN's bid, given that Corus' management approved the Indian firm's bid last month. Tata Steel may, however, be reluctant to get involved in a hostile bid.
Shares in Info Edge (India), which runs job search and marriage web sites, closed at Rs 593.20, a premium of 85.3% over to the IPO price of Rs 320. The scrip clocked a massive volume of 78 lakh shares on BSE.
ICICI Bank rose 1.4% to Rs 872, on reports that the largest private sector bank is slated to raise $1 billion through an issue of yen-denominated bonds. Other bank shares rose after RBI Deputy Governor, Rakesh Mohan, said on Tuesday that greater price stability will make it possible to have lower interest rates in the medium term. State Bank of India gained 2% to Rs 1,233. 30, Bank of India rose 1.6% to Rs 190, and Bank of Baroda rose 1% to Rs 258.20.
Auto shares gained in trying to keep themselves abreast of the market. Car major Maruti Udyog rose 1.7% to Rs 885.25, Tata Motors gained 2% to Rs 819, Ashok Leyland rose 3% to Rs 43.45 and Bajaj Auto gained 0.4% to Rs 2,576. Auto shares had underperformed in the recent market surge.
Cement shares rose on firm cement prices. ACC gained 1.3% to Rs 1071, Gujarat Ambuja Cements gained 1.9% to Rs 136, and UltraTech Cement rose 1.3% to Rs 895.25.
Construction and real estate firms were in demand on reports that the finance ministry is expected to come out with enhanced limits for bank exposure to corporate groups, projects and sectors, to boost credit flow to the infrastructure sector. L&T gained 1.7% to Rs 1350, IVRCL Infrastructures rose 8% to Rs 379, Madhucon Projects advanced 6.8% to Rs 310, Jaiprakash Associates rose 11% to Rs 675, Simplex Infrastructure rose 6% to Rs 393 and Unitech gained 5% to Rs 485.75.
MTNL rose nearly 3% to Rs 134.20 after the company launched prepaid services on its Garuda mobile offering.
Mahindra & Mahindra gained 2.7% to Rs 841 after the company said on Monday it had signed a deal with Global Vehicles USA, to distribute Mahindra's sports utility vehicle and a pick-up in the US.
Balmer Lawrie & Company rose 2.7% to Rs 394.90, amid reports that Ministry of Petroleum & Natural Gas has upgraded the status of the public sector firm to Mini Ratna Category 1, which will enable the company to enjoy greater managerial and commercial autonomy in respect of capital expenditure, join ventures, creating subsidiaries, merger and acquisitions.
Aditya Birla Nuvo rose 3.7% to Rs 1107 after the company said a meeting of the special committee constituted by the board would be held on 23 November 2006, for deciding various matters in connection with the proposed rights issue.
Mercator Lines gained 4% to Rs 37.50, after the company said on Tuesday it had executed an agreement to buy a double-hulled tanker of 1,10,000 dead-weight tonnage. The tanker is expected to join the company's fleet next month.
BPL rose 5% to Rs 58.45, after it said its board will meet on 23 Nov 2006, to consider transfer/leasing of its alkaline battery business, to an equal joint venture. The board will also consider investing in the venture.
Development Credit Bank jumped 20% to Rs 63.20, on a high volume of 1.55 crore shares on BSE. On Monday, the company’s board approved an increase in FII-ceiling substantially; from 24% to 49%. The board also approved up to Rs 225 crore placement to qualified institutional buyers.
i-flex solutions rose nearly 5% to Rs 1593.70, after Interbank, one of Peru’s leading commercial banks selected its product Reveleus Operational Risk as its enterprise-wide operational risk management platform.
Sterlite Optical Technologies jumped 8% to Rs 211.50, after the company bagged a contract worth $ 5 million from Qatar's Q-Tel, for manufacturing and supply of copper telecom cables. The deliveries, to be spread over the next three years, will start in December 2006.
Hindustan Zinc rose 2.4% to Rs 865, after zinc closed 3% higher on Monday, on the London Metal Exchange. Zinc, for delivery in three months, ended at $4,169 a tonne, up 3.4%.
Garware Wall Ropes dropped 0.5% to Rs 65.30. The company said on Tuesday it would raise up to $10 million through various means including a possible overseas issue.
Gitanjali Gems gained nearly 1% to Rs 213.55 after the company today said it has entered into a Memorandum of Understanding (MOU) to form a 50:50 joint venture with Sulieman Al Othaim of Saudi Arabia, one of the leading retail chains in the Middle East. The venture would help Gitanjali's entry into mainstream retail in Saudi Arabia, the company said in a statement.
Birla VXL was trading at Rs 48.30 compared to Monday’s closing price of Rs 63.35. The stock today turned ex-rights. The company’s rights issue is in the ratio of 4:7, priced at par.
India and China will work to raise their bilateral trade to $40 billion by 2010, Prime Minister Manmohan Singh said on Tuesday after talks with visiting Chinese President Hu Jintao. Bilateral trade has climbed from just $260 million in 1990 to a projected $20 billion in 2006/07. On Monday, Commerce and Industry Minister Kamal Nath said New Delhi was seeking comprehensive economic cooperation with China but a free-trade agreement with Beijing was not on the cards.
Sensex jumped 186.06 points or 1.3% to lifetime closing high of 13,616.77. The S&P CNX Nifty rose 62.10 points or 1.6% to a lifetime closing high of 3,918.25. The market held firm throughout the day. There was a takeoff in the key indices in the second half of the trading session.
BSE Small Cap Index rose 118.12 points or 1.8% to 6,416.61. BSE Mid Cap Index added 92.43 points or 1.6% to 5,546.86. Small-cap and mid-cap indices have underperformed the key indices Nifty and Sensex since the past few weeks.
The BSE clocked a turnover of Rs 4,041 crore compared to Monday’s Rs 4260 crore.
Select small-cap and mid-cap surged today. Today’s top gainers among small-cap and mid-cap space were Sika Interplant Systems (up 20% to Rs 103.90), Shrachi Securities (up 20% to Rs 63.70), Development Credit Bank (up 20% to Rs 63.20), Mount Shivalik Industries (up 20% to Rs 56), HOV Services (up 13.9% to Rs 161.60), DMC Vaults (up 14% to Rs 17.95), Yuken India (up 13.6% to Rs 166) and Vaibhav Gemes (up 13% to Rs 267).
Stronger than expected Q2 September 2006 results and FII inflow has boosted the bourses over the past few weeks. Sensex is up 44.8% in calendar 2006 so far.
FIIs have stepped up buying notwithstanding apprehension regarding stretched valuations. FII inflow in 2006 has reached $8.1 billion (till 20 November). FII inflow has stemmed from long-term pension funds and insurance firms. Inflow is also coming from hedge funds. Strong global liquidity has aided the fund flow.
Another factor that has contributed to the surge in foreign investment is the ever growing number of FIIs getting registered with Sebi everyday. In this calendar year, there has been an addition of over 170 FIIs, the aggregate now standing at 993. There are expectations that inflow will pick up further in December 2006 as allocations are made for the New Year.
However, foreign brokerage Merrill Lynch expects a slowdown in earnings growth of Sensex firms in FY 2008 (year ending 31 March 2008). `Excluding Reliance Communications, earnings in FY 2008 should rise only 11.2% versus the 27.5% forecast for FY 2007 (year ending 31 March 2007). If so, it would be the slowest earnings growth since FY 2002’, the brokerage stated in a Q2 earnings review released early this month. It however expects strong earnings growth to continue in Q3 December 2006.
Volatility is likely in the near term as traders square off or carry forward their outstanding contracts for November futures ahead of the expiry of November contracts next Thursday (30 November).
The market staged a solid intra-day rebound on Monday (20 November) after Sensex had plunged over 200 points at one point of time following RBI’s circular on Friday (17 November) which capped banks’ exposure to capital market.
In today’s trade, Bharti Airtel rose nearly 3% to Rs 622.35. The stock hit a lifetime high of Rs 625.70. Rival Reliance Communications rose 1.8% to Rs 416.70. The stock also attained a lifetime high of Rs 418. Both cellular services providers turned bullish amid reports that the Department of Telecom (DoT) will make available, additional radio frequency for cellular service providers.
IT pivotals were in demand for the second day in a row today, following reports that top Indian IT firms were chasing over a dozen deals on an average, the sizes of which range between $50 - $100 million. Satyam Computer gained 3.2% to Rs 455, HCL Tech rose 3% to Rs 647, TCS rose 2.8% to Rs 1,148 and Wipro added 2.6% to Rs 569.
Infosys edged slightly lower in volatile trade. The scrip shed 0.3% to Rs 2,246. The software giant today priced its sponsored ADR issue at $53.30 per ADR, a 3.2% discount to Monday’s closing price of $55.2. The company said the aggregate size of the ADR offer exceeds $1.6 billion. As part of this offering, 5,000,000 ADRs representing 5,000,000 equity shares, will be placed with Japanese investors through a public offer without listing (POWL).
Cigarette maker ITC gained 3.3% to Rs 184.35, and giant Hindustan Lever advanced 2.2% to Rs 248.35.
Tata Steel gained nearly 3% to Rs 476.85. Tata Steel has reportedly called an unscheduled board meeting on Thursday, to discuss the fallout of CSN’s 475 pence per share counter-bid for Anglo-Dutch steelmaker Corus. Tata Steel had bid at 455 pence per share for Corus. Tata Steel's board is likely to discuss various options including the possibility of a revised offer for Corus. Media reports also indicated that Tata Steel might win the takeover battle if it matched CSN's bid, given that Corus' management approved the Indian firm's bid last month. Tata Steel may, however, be reluctant to get involved in a hostile bid.
Shares in Info Edge (India), which runs job search and marriage web sites, closed at Rs 593.20, a premium of 85.3% over to the IPO price of Rs 320. The scrip clocked a massive volume of 78 lakh shares on BSE.
ICICI Bank rose 1.4% to Rs 872, on reports that the largest private sector bank is slated to raise $1 billion through an issue of yen-denominated bonds. Other bank shares rose after RBI Deputy Governor, Rakesh Mohan, said on Tuesday that greater price stability will make it possible to have lower interest rates in the medium term. State Bank of India gained 2% to Rs 1,233. 30, Bank of India rose 1.6% to Rs 190, and Bank of Baroda rose 1% to Rs 258.20.
Auto shares gained in trying to keep themselves abreast of the market. Car major Maruti Udyog rose 1.7% to Rs 885.25, Tata Motors gained 2% to Rs 819, Ashok Leyland rose 3% to Rs 43.45 and Bajaj Auto gained 0.4% to Rs 2,576. Auto shares had underperformed in the recent market surge.
Cement shares rose on firm cement prices. ACC gained 1.3% to Rs 1071, Gujarat Ambuja Cements gained 1.9% to Rs 136, and UltraTech Cement rose 1.3% to Rs 895.25.
Construction and real estate firms were in demand on reports that the finance ministry is expected to come out with enhanced limits for bank exposure to corporate groups, projects and sectors, to boost credit flow to the infrastructure sector. L&T gained 1.7% to Rs 1350, IVRCL Infrastructures rose 8% to Rs 379, Madhucon Projects advanced 6.8% to Rs 310, Jaiprakash Associates rose 11% to Rs 675, Simplex Infrastructure rose 6% to Rs 393 and Unitech gained 5% to Rs 485.75.
MTNL rose nearly 3% to Rs 134.20 after the company launched prepaid services on its Garuda mobile offering.
Mahindra & Mahindra gained 2.7% to Rs 841 after the company said on Monday it had signed a deal with Global Vehicles USA, to distribute Mahindra's sports utility vehicle and a pick-up in the US.
Balmer Lawrie & Company rose 2.7% to Rs 394.90, amid reports that Ministry of Petroleum & Natural Gas has upgraded the status of the public sector firm to Mini Ratna Category 1, which will enable the company to enjoy greater managerial and commercial autonomy in respect of capital expenditure, join ventures, creating subsidiaries, merger and acquisitions.
Aditya Birla Nuvo rose 3.7% to Rs 1107 after the company said a meeting of the special committee constituted by the board would be held on 23 November 2006, for deciding various matters in connection with the proposed rights issue.
Mercator Lines gained 4% to Rs 37.50, after the company said on Tuesday it had executed an agreement to buy a double-hulled tanker of 1,10,000 dead-weight tonnage. The tanker is expected to join the company's fleet next month.
BPL rose 5% to Rs 58.45, after it said its board will meet on 23 Nov 2006, to consider transfer/leasing of its alkaline battery business, to an equal joint venture. The board will also consider investing in the venture.
Development Credit Bank jumped 20% to Rs 63.20, on a high volume of 1.55 crore shares on BSE. On Monday, the company’s board approved an increase in FII-ceiling substantially; from 24% to 49%. The board also approved up to Rs 225 crore placement to qualified institutional buyers.
i-flex solutions rose nearly 5% to Rs 1593.70, after Interbank, one of Peru’s leading commercial banks selected its product Reveleus Operational Risk as its enterprise-wide operational risk management platform.
Sterlite Optical Technologies jumped 8% to Rs 211.50, after the company bagged a contract worth $ 5 million from Qatar's Q-Tel, for manufacturing and supply of copper telecom cables. The deliveries, to be spread over the next three years, will start in December 2006.
Hindustan Zinc rose 2.4% to Rs 865, after zinc closed 3% higher on Monday, on the London Metal Exchange. Zinc, for delivery in three months, ended at $4,169 a tonne, up 3.4%.
Garware Wall Ropes dropped 0.5% to Rs 65.30. The company said on Tuesday it would raise up to $10 million through various means including a possible overseas issue.
Gitanjali Gems gained nearly 1% to Rs 213.55 after the company today said it has entered into a Memorandum of Understanding (MOU) to form a 50:50 joint venture with Sulieman Al Othaim of Saudi Arabia, one of the leading retail chains in the Middle East. The venture would help Gitanjali's entry into mainstream retail in Saudi Arabia, the company said in a statement.
Birla VXL was trading at Rs 48.30 compared to Monday’s closing price of Rs 63.35. The stock today turned ex-rights. The company’s rights issue is in the ratio of 4:7, priced at par.
India and China will work to raise their bilateral trade to $40 billion by 2010, Prime Minister Manmohan Singh said on Tuesday after talks with visiting Chinese President Hu Jintao. Bilateral trade has climbed from just $260 million in 1990 to a projected $20 billion in 2006/07. On Monday, Commerce and Industry Minister Kamal Nath said New Delhi was seeking comprehensive economic cooperation with China but a free-trade agreement with Beijing was not on the cards.
posted by SY at 5:34 PM
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