Market undergoes good volatility but Sensex closes up with more than 100 points:The BSE Mid-Cap index rose 1.31% to 6,325.91, while the BSE Small-Cap index gained 0.77% to 7,414.26: Gateway Disripark Ltd (GDL) rocked today, with good volumes. The scrip was recommended at around Rs.169--Rs.173 range some months back. I have placed a target of Rs.250, of this scrip in the short to medium term: Premier Explosives Ltd closed up with good volumes on the optimism about the better prospects of the company ahead. It has after a long time broken out of Rs.41--Rs.44 barrier with good volume, which is positive for the scrip. Keep watch. Once it starts hitting the buyer freeze, it is difficult to buy this scrip: Southern Online Bio Technologies Ltd refused to close below Rs.11, since the company could at any day declare the start of commericial production. Besides this the company came out with wonderful set of numbers for the March, 2007 quarter, keep watch: Kernex Micro Systems Ltd hit the buyer freeze, on the news that the it will get a huge order from Indian Railways, which will continue for 6-7 years, Keep holding:Within two to three days I will recommend a scrip to the Premium Group members and then to the free group members, keep some cash ready:
[Updated at 4.40 p.m.]
Sensex garners 116 points
The market was on a winning streak for the second straight day today, as buying momentum continued in index pivotals. It was firm in the first half of the day, but witnessed volatile movement in the second half, as some profit booking emerged at higher level.
All the sectoral indices on BSE logged gains. Shares from auto, banking, cement and metal lead the rally. There was plenty of action outside the index stocks, on strong buying momentum. Also the notable fact was the high daily turnover which crossed Rs 5000 mark today on BSE indicating fresh buying. Earlier, market players were worried that liquidity might get sucked out from the secondary market, as huge Rs 8750 crore follow on public offer (FPO) of ICICI Bank opened on 19 June 2007.
The 30-share BSE Sensex rose 116.44 points to 14,411.94, as per provisional closing. It opened higher at 14,359.96 and surged to strike a high of 14,449.38 at 12:37 IST. At 14,449.38, Sensex had risen 153.88 points for the day. The strong opening was on the back of firm global markets. Sensex slipped to a low of 14,347.58 at 14:22 IST. It later recovered sharply from this level.
The market sentiment was firm following good response to the follow-on public offer (FPO) of ICICI Bank. The FPO was subscribed 3.10 times by 15:00 IST today, 20 June 2007. The issue opened for subscription on Tuesday, 19 June 2007 and closes on Friday, 22 June 2007.
Turnover picked-up sharply in late-afternoon session. The total turnover on BSE amounted to Rs 5049 crore compared to Rs 3974 crore by 14:30 IST.
The market breadth was positive on BSE with close to 1.25 gainers for every loser: 1,457 shares advanced as compared to 1139 that declined, while 99 remained unchanged
Among the Sensex pack, 23 advanced, while only 7 were trading in the negative territory.
Cement major Gujarat Ambuja Cements advanced 4.73% to Rs 118.35, on 18.35 lakh shares, and it was the top gainer from the Sensex pack. Other cement stocks ACC (up 0.78% to Rs 850) and Grasim (up 2.91% to Rs 2508) also gained. As per market talks, cement shortage may last till June 2009 and incremental output from new capacities won’t match demand till then.
ICICI Bank pared gains after striking a high of Rs 961.90. It rose 0.10% to Rs 945.30. Retail bidders would be allotted shares at a discount of Rs 50 per share to the issue price determined by the book-building process, in the ICICI Bank FPO. The issue size is Rs 8,750 crore. In addition, there is a green-shoe option under which the bank may allocate additional equity shares up to Rs 1,312.5 crore. The issue including the green-shoe option aggregates Rs 10,062.5 crore.
State Bank of India (SBI) surged 4.06% to Rs 1428, advanced for the second straight day. SBI is set to raise $225 million from the overseas market this year by issuing perpetual bonds. The overseas issue opened on Monday, 18 June 2007, and the bank is expected to price the bonds this week. It plans to raise a total of Rs 15,000 crore this year in the form of equity (tier-I) and debt (tier-II).
Index heavyweight Reliance Industries (RIL) was up 0.28% to Rs 1732, on 5.50 lakh shares. As per reports, global oil giants including Shell, Exxon and Chevron are eyeing a stake in Reliance Industries’ overseas oil & gas assets. RIL recently hived off these assets into a separate company, Reliance Exploration and Production DMCC.
State run engineering major Bhel gained 2.11% to Rs 1435. As a result, the BSE capital goods index rose 1.30% to 11,505.59.
Engineering & construction major L&T was up 1.57% to Rs 2027. The company’s joint venture won an order worth Rs 610 crore for a residential building project in Dubai. The company made the announcement during market hours on Tuesday, 19 June 2007. The project is to be completed in 660 days from the date of commencement.
Pharma major Ranbaxy Laboratories lost 1.81% to Rs 352.20, on 4.84 lakh shares, and was the top loser from Sensex pack.
IT pivotals were trading on mixed note. TCS (down 1.17% to Rs 1147), Infosys (down 0.15% to Rs 1953.90), declined while Wipro (up 0.51% to Rs 524) and Satyam Computers (up 0.54% to Rs 471), advanced.
The rupee was trading at 40.815/825 per dollar, easing from Tuesday's (19 June 2007) 40.79/80. It is up about 8.5% this year on robust capital inflows. The stronger rupee has been impacting profit margins of software services companies that derive more than 60% of their revenue from overseas markets.
Hindustan Unilever (down 0.50% to Rs 188.05), (down 0.50% to Rs 188.05), Tata Steel (down 0.39% to Rs 606.50), and NTPC (down 0.36% to Rs 150.50), edged lower
Some star performers from small-cap and mid-cap pack included, Voltas (up 14% to Rs 110.10), South India Bank (up 11.73% to Rs 116.20), India Infoline (up 10.50% to Rs 737.80), Ess Dee Aluminum (up 10% to Rs 493.65), Vakrangee Software (up 10% to Rs 147.25), Gateway Distriparks (up 9.63% to Rs 199.70), Divi’s Labs (up 8.37% to Rs 6359.95), Shasun Chemicals (up 8.02% to Rs 144.15), Hindustan Construction (up 7.88% to Rs 105.40), Gati (up 7.51% to Rs 88). All of them surged on high volume.
After trading hours on Tuesday, 19 June 2007, market regulator Sebi directed 15 brokers and some market participants not to indulge in distortion of the derivatives market. A Sebi investigation of derivatives transactions on NSE for the period from January-March 2007 found that these entities were involved in manipulation in the futures & options segment.
Most the Asian markets were trading higher today, 20 June 2007, with Nikkei 225 index gaining on automakers Toyota Motor Corp. and Nissan Motor Co. Nikkei rose 0.26% at 18,211.68. All the European markets opened higher.
Hong Kong's Hang Seng (up 0.47% to 21,684.67), Taiwan's Taiwan Weighted (up 2.13% to 8,755.88), Malaysia’s KLSE Composite (up 0.69% to 1,386.27), edged higher. But China's Shanghai Composite lost 2.07% to 4,181.32.
South Korea's Kospi index dropped after hitting a fresh high intraday. It lost 1.33% at 1,783.79.
Wall Street posted small gains on Tuesday 19 June 2007, as investors found solace in declining Treasury yields. The Dow Jones Industrial Average (DJIA) rose 22.44 points, or 0.16%, to 13,635.42. The blue-chip index was buoyed largely by GE, which rose $1.22, or 3.2%, to $39.29.
Broader stock indicators also edged higher. The Standard & Poor's 500 index rose 2.65 points, or 0.17%, to 1,533.70, and the Nasdaq Composite index rose 0.16 point, or 0.01%, to 2,626.76.
As per the provisional data, FIIs were net buyers of Rs 171.71-crore equities, while domestic institutional investors (DIIs) sold shares worth a net Rs 32.98 crore on Tuesday, 19 June 2007.
Oil prices steadied on Wednesday, 20 June 2007, as traders waited to see if a threatened strike in Nigeria would cut its crude exports and whether gasoline inventories in the United States have built as forecast. London benchmark Brent crude edged 3 cents lower to $71.81 a barrel today. [With inputs from the Internet]
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