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Sensex Conquers 13,000; Nifty too at New High

October 30, 2006 |
Having failed to move past 13000 two weeks ago despite coming kissing close, the Sensex was least expected to cross it today. Though there was sufficient momentum built up after Friday's rally, global cues were negative with most Asian markets coming under pressure.

The Sensex was weak in early trades as expected, but warmed up soon after. By early afternoon the index managed to cross 13000 and, more importantly, managed to hold on to most of its gains.

The last hour saw another fresh up-move, supported by the heavyweights, which helped the indices to close near their intra-day highs.

The Sensex touched a new lifetime high of 13039 while the Nifty set a new all-time high of 3776. Both indices closed at new lifetime closing highs.

Sensex closed with gains of 117 points at 13024 and the Nifty added 30 points to end at 3769. Nifty November futures closed at a premium of 9 points to the spot index.

Private sector banking stocks led the rally, as the RBI is meeting to decide on key interest rates. ICICI Bank surged another 4 per cent to a new lifetime high while HDFC Bank gained over 3 per cent

Index heavyweights ONGC, Reliance Industries and Infosys rallied in afternoon trades and provided good support to the indices.

ONGC gained over 2 per cent after a weak start while Reliance gained over a per cent.

Infosys ended more than 1.5 per cent higher while TCS recovered from a 1 per cent decline and closed 0.5 per cent higher.

HPCL got a significant boost from the quarterly results and gained nearly 4.5 per cent.

Nalco was the best performer among index stocks, rallying more than 4.5 per cent.

Dr Reddy's also attracted buyers after a significant rise in quarterly profits and ended nearly 3 per cent higher.

Frontline telecom stocks continued their rally from Friday. Bharti gained nearly 3 per cent to yet another lifetime high. Reliance Communications added well over 2 per cent.

M&M kept up the temp from last week and surged more than 3.5 per cent.

Among other major gainers, Dabur added close to 3.5 per cent and L&T ended more than 2.5 per cent higher.

Tata Motors slipped more than 4 per cent and was the worst performer among index stocks. The company's bottom line growth was lower than expectations.

SAIL also slipped 4 per cent after results announcement

ABB was another stock with lost ground after results and ended more than 2 per cent lower. BHEL lost close to 1.5 per cent

Jet Airways continued to slip and lost more than a per cent

Wipro was the worst performer among tech stocks, losing 1.5 per cent, while Satyam gave up nearly a per cent.

Glaxo, MTNL, HDFC and OBC were the other major losers.

Global markets / crude oil

Asian markets came under pressure on fears that US economic slow down may be worse than expected. Preliminary estimate of Q3 US GDP growth released last week was lower than expectations. Japan was the worst performer, losing 1.9 per cent. Singapore slipped 1.4 per cent while South Korea and Thailand lost 0.95 per cent each. Malaysia lost 0.4 per cent.

Among the gainers, Indonesia added close to 0.5 per cent while Shanghai ended with modest gains.

European indices opened lower and have lost further ground as the session progressed. Major indices are trading with losses of between 0.6 and 0.75 per cent each.

Crude oil prices have slipped in Asian and European trades today after last week's recovery. Near month NYMEX futures is trading with losses of close to a per cent at $60.1 per barrel in European trades today.

Large-cap news flow  

JSW Steel has clarified that it has signed only one agreement with Jharkhand government for setting up a 10 million steel plant at an investment of Rs35,000 crore. Though discussions are on with governments of Orissa and West Bengal for setting up similar plants, no agreements have been signed.

SCI would operate 1 vessel connecting China and the Middle East, in a consortium arrangement with two foreign shipping lines.

L&T has opened its switchgear manufacturing facility in China, set up at a cost of $11 million.

Ashok Leyland would set up a new plant in Uttaranchal at a cost of over Rs1000 crore, according to unconfirmed media reports.

Hero Honda may take over some of Honda's assembly plants in select African countries, according to unconfirmed news agency reports. Honda is not a major player in these markets and these plants have low capacities.

Mid-Cap Action

Mid-caps and small caps were mixed even as the large caps rallied. Price movements were considerably impacted by results announcements and were significant. Small caps gave up all their gains and closed lower while mid-caps gave up part of their early gains.

The CNX Mid-Cap index ended with gains of 4 points, or 0.09 per cent, at 4846. BSE mid-cap index gained 0.49 per cent and the BSE small cap index lost 0.56 per cent.

Accel Frontline had a subdued debut on the exchanges today. Issued at rs75 per share, the stock opened at Rs77 per share on the NSE and went on to touch a high of Rs80. It finally ended at Rs69.9, nearly 7 per cent lower than its issue price.

Jaiprakash Associates and Seshasayee Paper were locked in the the 20 per cent upper circuits.

Bal Pharma, Nagreeka Exports, Indian Hume Pipes, Ashapura Minechem and Jaypee Hotels were all locked in 10 per cent upper circuits.

Amktek India, Jain Irrigation, Madhucon Projects, Educomp, Crisil, Godrej Industries and Yes Bank were the other major gainers among mid-caps.

Sical, Hyderabad Industries, Star Paper, Celebrity Fashions, Nippo Battery, Talbros Auto, Power Trading Corp, Precision Wire and JHS Svendgaard were among the major mid-cap losers.

Mid-cap news flow

Deccan Aviation will issue 19.64 lakh equity shares on a preferential basis to a UK-based investor. The company would also float a new subsidiary to enter air cargo business.

Jindal Steel & Power has clarified that it has not signed the formal agreement with the government of Bolivia for developing an iron ore mine and setting up a 2- million tonne steel plant in that country.

Mercator Lines would acquire two dry bulk vessels of 84,000 dwt each, which would join the fleet next year.

Varun Shipping would raise around Rs200 crore from a preferential issue of equity shares to a group of investors at a price of Rs75 per share. The company would raise another Rs500 crore through the QIP route in stages.

Subex Azure is planning a sponsored GDR issue of a maximum 90 lakh equity shares. Subex would merge its UK subsidiary with the company.

Matrix Labs would merge its UK subsidiary with the company said the draft letter of open offer by Mylan Labs has been submitted to SEBI and the open offer schedule would be announced later.

Sun TV's radio subsidiary has expanded its footprint to Bangalore, Hyderabad and Jaipur as well, taking the total number of FM stations to 7. The company has licenses for another 38 stations across the country and is planning to roll out services at all these locations. 

Yes Bank is planning to raise Rs85 crore from an issue of Tier-I perpetual bonds and Rs280 crore from an issue of upper Tier-II instruments.  

California Software would issue 94.5 lakh fully convertible debentures of Rs10 each to a Hong Kong based investor.

Shareholders and creditors of Talbros Automotive have approved the merger of 2 businesses into the company.

Graphite India has fixed the conversion price of FCCB's at Rs285 per share. The company would also split its equity shares in the ratio of 5 shares for every share

Sandesh has allotted 10.38 lakh equity shares to Bennett, Coleman & Co at a price of Rs282.82 per share.

Gokaldas Exports would split its equity shares in the ratio of 2 shares for every share held.

● The board of Amtek India would meet later this week to consider preferential issue of equity shares to promoters and other investors.

Orchid Chemicals would provide medicinal chemistry services to a Swedish pharma company.

Cambridge Solutions said it has won new clients in the US with a revenue potential of up to $11 million.

GMR Industries has clarified that it is not planning Rs1,000 crore investments, but is targeting revenues of Rs1,000 crore in 5 years.

Nucleus Software would focus on markets like Middle East, South Asia, South East Asia and markets for future growth. The company develops and markets banking and financial services software to small and medium-sized banks.

KS Oils would issue bonus shares in the ratio of one share for every share held.

Action Construction Equipment has started commercial production at its new Uttaranchal plant for manufacturing cranes while its Faridabad unit for backhoe loaders would go on stream by early next year. The company is readying to launch fork lifts and mobile cranes shortly.

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