labels: stock markets - india, markets - general
Sensex surges 470 points to end above 13000 news
Rex Mathew
08 March 2007

If yesterday's weak trend in the domestic indices when other regional markets were firm was disappointing, today they were the best performers in the region with gains of around 3.75 per cent each. They started the day on a firm note before giving up a major part of their gains by mid-morning. Just when it looked like a repeat of yesterday, the indices gathered strength and surged ahead.

Sensex closed with massive gains of 470 points at 13049 and the Nifty surged 135 points to end at 3762. Nifty March futures closed at a premium of 7 points to the spot index.

IPCL surged ahead on speculation about a favourable merger ratio with Reliance Industries. The stock ended 12.77 per cent higher while Reliance Industries added 3.64 per cent.

ONGC extended gains with a 1.92 per cent move.

SAIL was the best performer among index stocks on massive short covering in the counter. The stock ended 13.01 per cent higher as reports of higher international steel prices also helped sentiment. Tata Steel gained 3.51 per cent.

Among other metals, Hindalco added 4.54 per cent while Nalco closed 2.88 per cent higher.

Cement stocks recovered from yesterday's fall and surged ahead despite reports of a possible export ban on cement. Gujarat Ambuja rallied 8.72 per cent and Grasim closed 6.11 per cent higher. ACC added 2.79 per cent after yesterday's 5 per cent surge.

Hindustan Unilever saw its best intra-day up move in recent months, possibly in years, and closed 9.86 per cent higher
Ranbaxy bounced back sharply after losing steadily in recent weeks and closed 6.9 per cent higher while Dr. Reddy's gained 5.24 per cent.

Reliance Communications led the telecom pack with gains of 5.77 per cent while Bharti gained 4.91 per cent. MTNL added 4.99 per cent and VSNL gained 4.24 per cent.

BHEL was the best performer among engineering stocks with gains of 7.99 per cent. ABB gained 5.1 per cent and L&T closed 4.72 per cent higher.

HDFC Bank led the banking stocks with gains of 6.4 per cent while ICICI Bank rallied 4.15 per cent and SBI gained 3.62 per cent.

Among smaller banking and financial stocks, IDFC added nearly 9 per cent while Bank of Baroda ended 8.62 per cent higher. Reliance Capital gained 8.48 per cent while IDFC surged 7.09 per cent.

There were only 3 losers among Nifty stocks. Glaxo ended 1.31 per cent lower. Gail India lost 0.11 per cent and BPCL closed marginally lower.

Global markets / crude oil
US markets cooled off after the previous day's pull-back rally. Traders are still not confident that markets have stabilised after the recent sell off and are waiting for more economic data before taking a call on market direction.

The Dow lost over 0.1 per cent and the S&P 500 closed 0.25 per cent lower. The NASDAQ gave up 0.45 per cent after the previous day's 1.9 per cent rally.

Most Asian markets extended their gains from the previous two days. Malaysia was the best performer today as well with gains of nearly 2.65 per cent while Singapore ended nearly 2.1 per cent higher. Japan recovered after yesterday's sluggish performance and added nearly 1.95 per cent while Indonesia closed almost 1.65 per cent higher.

Hong Kong ended 1.35 per cent higher and Shanghai gained close to 1.1 per cent. South Korea gained over 0.9 per cent and Thailand closed with gains of 0.25 per cent.

European markets opened higher and are holding on to those gains. Major indices are trading with gains of between 0.55 per cent and 0.9 per cent each in early afternoon trades.

Crude oil prices sustained the up trend yesterday on speculation that US fuel inventories would be lower than forecasts. Near month NYMEX futures ended nearly 2 per cent higher at $61.82 per barrel yesterday. The commodity is trading with very marginal losses in European trades today.

Large-cap news flow

  • Tata Steel said shareholders of Corus Group have bid by the company with the required majority. Court approval is expected by the end of this month and the merger would be effective from 02 April 2007.
  • Tata Steel said its subsidiary NatSteel would in Vietnam for a total enterprise value of $41 million. The acquisitions would add 430,000 tonnes per annum to NatSteel's capacity.
  • Tata Steel has also completed the acquisition of a Kolkata-based 50,000 tonnes per annum ferro-chrome manufacturer for Rs101 crore
  • A consortium including Reliance Energy and Reliance Natural Resources has been awarded an oil exploration block in Mizoram

Mid-Cap Action
Mid-caps and small caps slipped after a firm start before recovering and rallying ahead in the afternoon. The CNX Mid-Cap index ended with gains of 155 points, or 3.42 per cent, at 4681. BSE mid-cap index gained 2.59 per cent and the BSE small cap index also ended with gains of 2.59 per cent.

Evinix Accessories, which had a very weak listing yesterday, recovered smartly and ended at the 20 per cent upper circuits.

Among prominent mid-caps, IFCI surged 9.83 per cent while Tata Tele ended 9.39 per cent higher.

Ramkrishna Forge, C and C Constructions, Navabharat Ventures, Jaiprakash Associated, Shivam Auto, Century Textiles and Gujarat Ambuja Exports were among the other mid-cap gainers.

Indus Fila had a very weak listing today. Issued at Rs170, the stock opened at Rs158.9 on the NSE and slumped to a low of Rs115.6. The stock finally closed at Rs133.85.

SB&T International, Ashapura Minechem, Sarla Polyester, TVS Shrichakra, Oriental Trimex, Jayabharat Maruti, HB Stock and Punjab Chemicals were the major losers among mid-caps.

Mid-cap news flow

  • EIH Limited, which controls of the Oberoi group of hotels, would raise up to Rs400 crore from a combination of international or domestic QIP issues
  • ING Vysya Bank would raise up to Rs100 crore in upper tier-II capital by issuing unlisted Japanese Yen bonds or debentures
  • Datamatics Technologies has opened a new engineering design and development centre in Bangalore for the aerospace and precision industries
  • Thomas Cook has launched a co-branded premium credit card in association with ICICI Bank
  • The open offer for 20 per cent of Panyam Cement at Rs55 per share would open on 26 April
  • Premier would issue 43.26 lakh convertible warrants to promoters
  • Electrotherm India would issue 13.68 lakh equity shares and 9.75 lakh warrants to institutional investors at Rs600 per share
  • Andhra Petrochemicals would increase annual capacity from 39,000 tonnes to 73,000 tonnes
  • Biocon has launched a new nephrology division and a range of renal care products
  • Fedders Lloyd would start retail operations, but the scale and nature of operations have not been disclosed
  • Parekh Aluminex is considering a preferential issue of equity shares
  • Micro Technologies said one of its products has received a global certification
  • ICSA India would raise up to $24 million from an overseas issue. The company would issue 4 lakh convertible warrants to promoters and 3.5 lakh convertible warrants to Goldman Sachs
  • Kirloskar Brothers has received an order worth Rs56 crore to build electricity sub-stations in Assam
  • Nucleus Software said one of its banking software products has been selected as the best-selling retail lending software globally
  • Bliss GVS Pharma would allot 26.67 lakh equity shares to promoters on a preferential basis
  • ABC Bearings would hold a 25 per cent stake in a JV with a Japanese company to manufacture automotive bearings at a cost of Rs50 crore
  • Hinduja TMT has fixed 07 March 2007 as the effective date for the de-merger of its IT services businesses to HTM Technologies
  • Dishman Pharma would hold an 85 per cent stake in a marketing JV with a Japanese company
  • Teledata Informatics has won a 3-year contract for setting up computer centres in 1,000 schools in Bihar
  • SRF would invest $3 million in a Chinese JV to manufacture hydrogen fluoride. The company would also invest Rs17 crore to expand its domestic chloromethanos capacity

*Disclaimer: The author may have positions in some of the stocks specifically mentioned above at the time of writing this article. This analysis / report is only for the purpose of information and is not an investment advice. Readers are advised to consult a certified financial advisor before taking any investment decisions. While efforts have been made to ensure the accuracy of the information provided in the content the author or publisher shall not be held responsible for any loss caused to any person whatsoever.

Market Counters
Figures in Rupees

BSE 30
Scrip Name Open High Low Last Price
ACC
  
 
833.35
Bajaj Auto
 
 
 
2,509.10
Bharti Tele
729.90
764.70
718.10
757.50
BHEL
2,034.00
2,195.00
2,007.00
2,175.45
Cipla
 
 
 
236.50
Dr Reddys Lab
640.00
683.00
639.00
677.00
Grasim Indus
2,110.00
2,258.00
2,030.50
2,235.15
Guj Ambuja
105.65
113.25
104.20
112.90
HDFC Bank Ltd
918.00
987.00
915.00
972.30
HDFC Ltd
 
 
 
1,549.85
Hero Honda
 
 
 
673.20
Hindalco
128.45
132.90
127.75
132.25
HLL
170.00
185.00
168.10
183.80
ICICI Bank
825.00
870.00
822.30
863.40
Infosys
2,090.00
2,150.00
2,086.00
2,142.35
ITC
 
 
 
159.85
L&T
1,460.00
1,535.00
1,455.00
1,521.05
Maruti
 
 
 
793.40
NTPC
133.90
136.80
131.10
136.10
ONGC
 
 
 
780.00
Ranbaxy
314.00
332.00
308.60
328.80
Rel Energy
 
 
 
490.25
Reliance
1,315.00
1,338.50
1,289.70
1,334.80
Satyam
434.00
448.10
431.25
445.90
SBI
970.55
1,010.00
963.15
1,000.30
Tata Motors
747.10
776.00
745.00
770.30
Reliance Comm Ventures Ltd
415.00
438.70
406.40
434.10
Tata Steel
415.70
428.90
399.00
427.40
TCS
 
 
 
1,218.70
Wipro
564.85
582.00
557.15
576.75
     Last Update : 8 March, 2007 16:00 PM

S&P CNX Nifty
Scrip Name Open High Low Last Price

RELIANCE

1319

1340

1290

1337

SBIN

989

1011

963.1

1001

INFOSYSTCH

2090

2146

2081.25

2142

RCOM

413

438.4

406.5

434

IPCL

257.8

272

238

259.2

TATASTEEL

417

429

399.15

428.1

SAIL

94.35

107.9

93

107

TATAMOTORS

750.1

775

745

771.45

ACC

821

842

784.05

834

GUJAMBCEM

103

113.5

103

112.45

ICICIBANK

831

868.85

824

867.9

ITC

160

161

157

161

SATYAMCOMP

431

448.9

431

448.5

BHARTIARTL

728

764

719.1

762.95

LT

1454.7

1539

1454.7

1529

WIPRO

555

581

555

578.5

ONGC

766

800

766

781.25

MARUTI

787

798

757.15

794.1

MTNL

136.1

151

136.1

150.85

RANBAXY

312

331.9

309.2

331.9

BHEL

2030

2197.9

2008

2165

BAJAJAUTO

2499

2525

2450

2522

TCS

1190

1229.7

1190

1226.1

DRREDDY

641

679.5

638.5

672

HCLTECH

620.05

634

613

632.5

SUZLON

1055

1060

1025.1

1053.75

GRASIM

2110

2249

2032.55

2240

SIEMENS

995

1046

967.05

1040.2

HDFCBANK

919

990

915.55

990

ABB

3270

3470

3190.25

3420

PNB

430

441.9

417

437

M&M

765.3

780.25

739.2

767.9

HINDLEVER

169.9

184.9

168.1

184.35

ZEEL

219

230

215.1

228

BPCL

298

302.4

296

299.9

HINDALC0

120

134

120

133

HDFC

1540

1565

1511.2

1560

HEROHONDA

660.05

674.8

656

674.8

VSNL

360

377.4

352.5

374.05

GAIL

270

272.3

268.25

271.5

REL

478.25

491.45

475.1

490

CIPLA

232

238

226.95

238

ORIENTBANK

169

171

164.3

168.45

DABUR

91.5

92.55

88.75

91.5

JETAIRWAYS

561.5

564

538.5

556.2

TATAPOWER

500

527

489.2

523

SUNPHARMA

967.85

974.95

942

966.5

HINDPETRO

243.7

247

242

245

NATIONALUM

218

230

216.25

230

GLAXO

1153.3

1172

1148

1160

Last Update : 8 March, 2007 16:00 PM


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Sensex surges 470 points to end above 13000