The benchmark index ended positive after witnessing high volatility throughout the day. Index heavyweights RIL, SBI, ITC and Ranbaxy propelled the barometer index above the 11,750 mark in late afternoon trade.With today’s 17-point surge, the Sensex has advanced 317 points (2.78%) in the last five sessions, from 11,406.65 on 23 August 2006. RIL has led the rally from the forefront.
The BSE 30-shares Sensex ended 17.07 points (0.15%) higher, on 11,723.92. After opening firm at 11,735.05, the Sensex showed signs of nervousness and started declining. The slide continued till the Sensex hit a low of 11,643.38.The barometer index had surged to a fresh high of 11,756.08, in late afternoon trade as buying intensified.It oscillated 113 points, with a high degree of volatility, which is expected to remain high till Thursday, ahead of the expiry of Futures & Options contracts for August.The S&P CNX Nifty rose 4.65 points (0.14%), to 3,430.35.
The market-breadth, strong in early trade, turned negative as selling pressure ate into small-cap and mid-cap stocks. However, it has also recovered along with the broader market. For 1,064 shares that advanced on BSE, 1,461 declined. As many as 72 shares were unchanged.The BSE Mid-Cap index was down 0.09% while the BSE Small-Cap index lost 0.35%.The total turnover on BSE amounted to Rs 2,607 crore. It was lower than that of Tuesday’s Rs 2,715 crore.Among the 30-Sensex pack, 17 declined while 13 advanced.
Ranbaxy Laboratories jumped 2.40% to Rs 405 on a volume of 4.30 lakh shares after the company got a favourable ruling from a Norwegian court involving two patents on Atorvastatin. Atorvastatin is a cholesterol-lowering drug marketed by Pfizer as Lipitor. A Norwegian court ruled in its favour, and against Pfizer Inc., in a case involving two patents of a cholesterol-lowering drug. An Oslo city court found that Ranbaxy's Atorvastatin did not infringe upon Pfizer's Norwegian patents, the Indian pharma major said in a statement.
Index heavyweight Reliance Industries (RIL) rose 1.11%, to Rs 1,129.15 on a volume of 12.06 lakh shares. It surged to a high of Rs 1134.95, while the low for the day was Rs 1,107.
ITC (up 1.85% to Rs 188), Grasim (up 1.62% to Rs 2,260) and SBI (up 1.20% to Rs 932.15) were the other gainers.
REL (down 2.40% to Rs 437.45), Bajaj Auto (down 1.20% to Rs 2685) and NTPC (down 1.92% to Rs 125) were prime losers.
Reliance Communications lost 1%, to Rs 306 on a volume of 9.26 lakh shares. The company has deployed a next generation IP based ILD network, which will have a capacity to carry 12 billion minutes of voice traffic annually.
RIL was the top-traded counter on BSE with a total turnover of Rs 135.74 crore followed by Tata Steel (Rs 76.67 crore) and Tech Mahindra (Rs 64.61 crore).
Two block deals, of 8.17 lakh shares and 2.46 lakh shares, were executed in the Eveready Industries counter at Rs 99.50 and Rs 100 per share respectively by 12:30 hours. The stock ended 4.90% lower, at Rs 98.10, on a cumulative volume of 15.06 lakh shares.
Metal stocks came under pressure today following reports that steel prices may be cut by Rs 750 to Rs 1,000 per tonne, from 1 September 2006, in line with global metal prices. Also, PSU steel maker SAIL will decide the quantum of price cut Thursday. This soured the sentiment in metal stocks.
The BSE Metal index lost the most from among sectoral indices, plummetting 184.92 points (2.20%), to 8,221.80. Tata Steel (down 2.20% to Rs 515.65), SAIL (down 2.80% to Rs 75.10), Essar Steel (down 3.43% to Rs 36.60), Tata Sponge (down 1.93% to Rs 111.50), Hindustan Zinc (down 4.23% to Rs 577.20), Sterlite Industries (down 3.60% to Rs 421) and Hindalco (down 1.37% to Rs 173.10) were the major losers.
Refinery shares edged higher on renewed buying as crude oil price fell below $70 a barrel, its lowest in more than two-months. A fall in crude oil price, the government’s decision to issue oil bonds and value-buying has aided refinery shares in the past few days.
HPCL (up 4.30%, to Rs 283), BPCL (up 5.86% to Rs 373.25), Indian Oil Corporation (IOC) (up 1.66% to Rs 493.50), IBP (up 1.10% to Rs 486.50), Chennai Petroleum (up 1.4% to Rs 201) and Kochi Refineries (up 6.05% to Rs 163) advanced.
Among side-counters, Jay Bharat Maruti jumped 10.83%, to Rs 110.50 on expectations that it will shortly announce a record date for bonus issue. The company had already declared a liberal 1:1 bonus issue on 01 August 2006.
Infotech Enterprises rose 1%, to Rs 212 after its wholly-owned subsidiary, Infotech Enterprises America, signed an agreement with IBM to jointly provide services to assist clients across the globe in accelerating the deployment of product lifecycle management (PLM) and engineering solutions for the manufacturing industry.
United Phosphorus surged 3.67%, to Rs 240 on purchase of crop protection products from Bayer CropScience AG, Germany, to the tune of Euro 43.5 million, which also includes inventories. Among the products purchased are systemic carbamate herbicidal active ingredient Asulam (brand names Asulox Asilan ) and two insecticidal products. Bayer CropScience has retained certain rights related to non-agricultural uses in strategic markets.
Praj Industries surged 2.12%, to Rs 178.10 after its board earmarked Rs 100 crore for expansion and acquisitions of an engineering company in the US. The company has also planned investments in a new R&D center, two manufacturing workshops nearer to the port and in expanding the engineering center at Pune. This expenditure will be carried out over a period of 12-15 months.
Emco rose 0.70% to Rs 533 after it bagged a Rs 270 crore power transformer order from Karnataka Power Transmission Corporation.
Hercules Hoists spurted 6.30%, to Rs 2,380 on fixing 15 September 2006 as a record date for allocating 1:1 bonus shares.
Indo Asian Fusegear rose 1.66%, to Rs 137.50 on a high volume of 25.43 lakh shares after it was reported that Indo Asian Fusegear plans to invest Rs 30 crore in a joint venture with a unit of Spain's Simon Holding. The joint venture will make wiring accessories and home automation systems in India.
Cadila Healthcare turned ex-bonus today, issuing 1:1 bonus shares to shareholders. The scrip closed at Rs 338 on a volume of 16,929 shares.
The Hang Seng index rose 201.43 points (1.18%), to 17,284.71 while the Nikkei 225 index lost 18.54 points (0.12%), to 15,872.02.
US markets rebounded from their early lows and ended with steady gains on Tuesday after minutes from the last Fed meeting mellowed concerns about rate hikes. The Dow Jones advanced 18 points to 11,370, while the Nasdaq Composite rose 12 points, to finish on 2,172.
Crude oil prices rose after a sharp decline on Tuesday; the Nymex light crude oil for October delivery rose 51 cents, to $ 70.22 a barrel.
On 28 August 2006, FIIs were net buyers of stocks to the tune of Rs 43.40 crore (gross purchases worth Rs 806.50 crore and gross sales of Rs 763.10 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs 10.84 crore (gross purchases worth Rs 331.73 crore and gross sales of Rs 342.57 crore).