Sensex, Nifty Climb, Records Highs:

The market rose for the second consecutive day, as it fired all cylinders on the back of positive global cues, and a robust set of results from India Inc. A lot of shares surpassed their all-time highs. I had indicated about a pre-budget rally to commence from the first week of February, 2007 in my earlier mails. The 30-shares BSE Sensex finished 136.59 points higher, at 14,403.77, an all-time closing high. It had opened higher, at 14,293.11, and had gone on to attain an all-time high of 14,462.77. The new found vigour on the bourses is because of firm global markets after the US Federal Reserve’s decision to keep interest rates steady. The S&P CNX Nifty rose 46.30 points (1.12%) to 4183.50, an all-time closing high. It had surged to an all-time high, 4,198.70, in intra-day trading. The market-breadth was strong, as small-cap and mid-cap stocks were in fashion. For 1,396 shares advancing, 1,274 declined. A total of 52 remained unchanged. Analysts expect the action to stay in this space, outperforming large-cap peers on account of robust results. The total turnover on BSE amounted to a healthy Rs 5433 crore, as compared to Rs 4012 crore on Thursday. Among the 30-member Sensex pack, 20 advanced while the rest declined. Bharti Airtel was the top gainer, up 5.39% to Rs 771.05, on a volume of 5.72 lakh shares. It also struck an all-time high of Rs 777.20, in intra-day trade. Reliance Communications (RCL) was up 3.54% to Rs 490.55, after hitting a high of Rs 497. As many as 31.63 lakh shares changed hands in the RCL counter on BSE. They are expected to report strong growth in new subscriptions. The media is abuzz with reports that Reliance Communications was planning a $2.5 billion expenditure for expanding domestic operations in the forthcoming financial year. Also, there were reports that TRAI has cut interconnection rates by 23 - 29%. L&T jumped 4.89% to Rs 1679 on 2.31 lakh shares. It had surged to an all-time high of Rs 1690. HDFC (up 3.74% to Rs 1735.05), and Reliance Energy (up 1.83% to Rs 534.10) were the other gainers. IT stocks saw renewed buying. The BSE IT index gained 44.06 points (0.82%) to 5,392.29. Wipro (up 3.38% to Rs 643.45), TCS (up 0.53% to Rs 1299.40) and Satyam Computer (up 3.53% to Rs 490.90) were the chief gainers in this pack. Market rumours about Wipro eyeing around $25 - 100 million foreign buys kept the stock simmering. Gujarat Ambuja Cements advanced 2.48% to Rs 142.80, on a volume of 23.15 lakh shares. Gujarat Ambuja Cements (GACL) declared its the December quarter numbers. GACL's net profit was up Rs 337 crore for the quarter ended December 2006, compared to Rs 87.90 crore, for the quarter ended December 2005. Net sales increased to Rs 1329 crore (Rs 773 crore). Gujarat Ambuja Cements (GACL) announced its January cement sales numbers. The company's cement sales increased by 6% to 1.49 million tonnes against 1.19 MT in the same month a year ago. Private sector steel firm, Tata Steel, bounced back after declining sharply by around 12% in the past two sessions, on concerns that it had paid an excessive price to acquire Corus. Tata Steel advanced 1.14% to Rs 462.95, on a volume of 35.59 lakh shares. It had surged to a high of Rs 472.40 in intra-day trade. Index heavyweight Reliance Industries (RIL) slipped in the red, down 0.24% to Rs 1372.30, on a volume of 7.84 lakh shares. It had touched a high of Rs 1393.35. Maruti Udyog gained 0.61% to Rs 945.05, as the company raised prices of its cars by up to Rs 12,000. Prices of the Baleno sedan and Gypsy King multi-utility have been raised by Rs 12,000, while the Wagon R hatchback and newly launched Zen Estillo will cost Rs 3,500 more. The mini-Maruti 800, Omni, Alto, Esteem mid-size and Swift's petrol variant will cost Rs 2000 more. The prices have been raised to offset rising input costs, Maruti Udyog said in an official statement issued to the exchanges. NTPC was the top loser, down 2.30% to Rs 142.35, on a volume of 6.33 lakh shares. PSU banking major, SBI, lost 2.20% to Rs 1177, while Hero Honda slipped 1.22% to Rs 715.25. HFCL jumped 10% (maximum limit) to Rs 29, on huge volumes of 1.51 crore shares, with pending buy orders of 1.30 lakh shares on BSE. Shares from capital goods sector saw strong buying interest, on the back of strong order-book and consistent order win. Analysts expect the sector to outperform the broader indices. The BSE Capital Goods index advanced 235.71 points (2.46%), to 9,823.81, and was the biggest gainer among the BSE sectoral indices. The scrips to make merry Jyoti Structures (up 5% to Rs 178.55), Greaves Cotton (up 9.10% to Rs 371), Gammon India (up 8.32% to Rs 418), Crompton Greaves (up 4.44% to Rs 208.15), Suzlon (up 3.82% to Rs 1219.50), Areva T&D (up 3.92% to Rs 1266.25), and Praj Industries (up 3.47% to Rs 341.20). Jyoti Structure Ltd was recommended at Rs.152 on the day of the annoucement of the results when it got locked. UTI Bank surged 8.34% to Rs 587.35, extending a recent surge triggered by S&P raising its rating on the private sector bank. The stock hit a high of Rs 615, a life high for the counter. On 30 January 2007, global rating agency Standard and Poor’s (S&P) lifted the country’s rating to investment grade. The improvement in ratings is likely to help banks raise funds more cheaply abroad to meet their capital requirements. Just before the S&P upgrade, UTI Bank raised $250 million from a three-year floating rate bond priced at 47 basis points above the three-month London Interbank Offered Rate (Libor). Auto parts firm Denso India rose 0.70% to Rs 92.20, after its board approved investing Rs 28 crore over four years to build a unit for two-wheeler components. The approval was announced late on Thursday. Tata Chemicals rose 3.75% to Rs 237.80, after it agreed to form an equal joint venture with Ireland's Total Produce to distribute fresh fruits and vegetables in India. Strides Arcolab rose 1.18% to Rs 385.45, after its European joint venture unit signed an agreement to acquire a stake in Norwegian Farma Plus. Cummins advanced 2 % to Rs 278.50, on high volumes of 23.97 lakh shares, after a block deal of 15 lakh shares was struck in the counter at Rs 275 per share. If the investor remember: Cummins India was recommended at around Rs.139 and then at Rs.173 some months back. State-run Steel Authority of India rose 0.80% to Rs 113.25, after it received orders worth Rs 117 crore from the government for supplying 11,300 tonnes of ferritic stainless steel strips. Indiabulls Financial Services rose nearly 9.44% to Rs 423.65, extending Thursday’s rise after reporting a strong financial performance for Q3 Dec-2006. Indiabulls Financial Services rose nearly 4% to Rs 401.70, extending Thursday’s rise after reporting a strong financial performance for Q3 December 2006. Indiabulls Financial Services’ consolidated net profit for the quarter ended 31 December 2006, grew 55.9% to Rs 117.6 crore compared with Rs 71.6 crore in the corresponding period last fiscal. Total consolidated revenues rose by 103.5% in the third quarter to Rs 334.53 crore from the previous year's Rs 164.37 crore. S Kumar's Nationwide advanced 0.24% to Rs 72.75, after scheduling a board meeting on 3 February 2007, to consider a swap ratio for the demerger of the retail business. VSNL gained 6% to Rs 505.45, after its ADR rose nearly 4% on Thursday (1 February 2007) to $21.83. Garments manufacturer, Gokaldas Exports, rose 1.64% to Rs 624.75 after fixing 15 February 2007 as record date for a stock-split. Accordingly, the Rs 10 face value share will now be sub-divided into two of face value Rs 5 each. BSEL Infrastrucuture Realty Ltd rose more than 5% to close at Rs.87.25. The stock is showing hectic buying on the rumours that the company is close to bagging another overseas order. In an interview to the media, its MD Mr.D Raichura said that the company would develop 55 lakh sq.ft of land area in a matter of 3-4 years time garnering a revenue of around Rs.1500 Cr. The company is entering Tier II cities Construction Business. The company is now a specialised construction company with an Overseas arm. There are news from close circles that the Company is thinking of Making an IT Park in Kolkata. It is also planning to Venture into Bhubaneshwar. The marketmen expect the stock to cross Rs.150 soon on the back of robust results. Off late there are rumours that the promoters of the company is increasing their stake in the company. Keep holding for a target of above Rs.200, as the company will get around Rs.250 Cr from the Dubai foray. I have earlier mentioned that J P Morgan is very bullish on the counter as one of my souces in Kolkata said to me. Already India Bulls Financial Services have put their stamp of approval on the company and had given it a A-grade rating. Premier Explosives Ltd as mentioned earlier came out with steller set of numbers for the December 2006, quarter. Though the Net Sales remained flat but the Net profit & EPS took a quantum leap indicating that the margins of the company are increasing. The company will get the benefits from the rise in Mushroom prices during the last few weeks and also due to the Overseas Joint Venture. The company would also get good amount of money from the sale of Assets from the mushroom division; which will show up in the results in the following quarters. The company share could shoot at any time as it has already been recommended by Karvy Stock Broking with a Price target of more than Rs.80. The investors are still hesitant to pick up the Scrip, without seeing the formal results. It is to be noted that the results are still not published on the Bombay Stock Exchange web-site( www.bseindia.com). The company is expecting to get some more orders soon. Its order book is full for the whole year. Buy with the above mentioned target in mind. Vishal Exports Overseas Ltd dipped to below Rs.3 after showing disappointing performance for the December, 2006 quarter. But the future prospects of the company looks good as it is set to do a number of power projects in the days to come--the current price factors the disappointing numbers. My morning buy call on NR International Ltd saw it hit the 20% buyer freeze. The company came up with a liberal bonus issue of 1:1 as mentioned in my earlier mails. The company is now morphing into Coal Exploration Business. Chandra Prabhu International Ltd also closed flat. I had asked all to exit the counter as the company is facing margin pressures. There are also indications that the drilling and exploration venture could be further delayed due to lack of synergy with the overseas partner. Today Gravity(I) Ltd made new high before cooling down a bit after profit booking was advised on the counter in the late afternoon trade. It is to be noted that this was recommended at around Rs.6.5 and Rs.5.5. The stock gave more than 300% returns in less than 3 months. But this stock generated lot of controversy in various circles. Agro Dutch Industries and Nagpur Power and Industries Ltd hit the respective buyer freezes today. Incidentally, Nagpur Power and Industries Ltd which was recommended at around Rs. 16.5 and Rs.17.5 became multi-bagger for the investors. India's wholesale price index rose 6.11% in the 12 months to 20 January, higher than previous week's annual rise of 5.95% due to a rise in prices of manufactured products and foods, data showed on Friday. The annual inflation rate was 4.24% during the corresponding week of the previous year. As per provisional data, FIIs were net sellers to the tune of Rs 242 crore on Thursday, the day when the Sensex had surged 176 points. They were net buyers to the tune of Rs 418 crore in index-based futures that day. They were net sellers to the tune of Rs 88 crore in individual stock futures that day. A worse-than-expected manufacturing report and falling natural gas prices pulled the plug on Thursday, on a two-day oil rally that saw prices jump more than $4 a barrel. Light, sweet crude for March delivery fell 84 cents, to settle at $57.30, a barrel on the New York Mercantile Exchange. The contract rose $1.17 a barrel on Wednesday and by $2.96 on Tuesday. Brent crude for March delivery fell 68 cents to $56.72 a barrel on London's ICE Futures exchange. More on the following postings...... Best wishes, Suman Mukherjee India. www.eindiabrokers.com www.3paisa.com www.sumanspeaks.blogspot.com www.myiris.com http://finance.groups.yahoo.com/group/SumanSpeaks/