INDIAN STOCK MARKET

Rally in Asian and European markets, and firm US stock futures indicating higher opening of US stocks today helped Indian market shrug off a surge in inflation to highest level in more than three years. Shares from banking and metal advanced on renewed buying.

The Dow Jones Industrial Average futures were up 19 points while Nasdaq 100 futures were up 2.5 points to 2038.25.

The 30-share BSE Sensex was up 59.61 points or 0.34% at 17,413.15, as per provisional closing. The barometer index opened with an upward gap of 122.87 points at 17,476.41. It struck a high of 17,497.36 in early trade. At the day’s high, Sensex gained 143.82 points. Sensex lost 38.02 points at day’s low of 17,315.52 touched in early afternoon trade.

The broader based S&P CNX Nifty advanced 37 points or 0.72% at 5,152.25 as per provisional closing

The wholesale price index rose 7.83% in 12 months to 3 May 2008, higher than previous week's annual rise of 7.61%, government data released today, 16 May 2008, showed. It was the highest since an annual reading of 7.93% n 6 November 2004. Meanwhile, the government also revised inflation for the week ended 8 March 2008 sharply upwards to 7.78% as compared to 5.92% reported earlier.

The market breadth was positive on BSE with 1521 shares advancing as compared to 1160 that declined. 86 remained unchanged.

The BSE Mid-Cap index was up 0.70% to 7,129.70 while the BSE Small-Cap index gained 0.86% to 8,620.26. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 6085 crore as compared to Rs 4313 crore by 14:30 IST

Among the 30-member Sensex pack, 16 gained while the rest slipped

India’s largest bulk drug maker in terms of sales, Ranbaxy Laboratories advanced 3.04% to Rs 509.50 on 7.61 lakh shares. It was the top gainer from Sensex pack.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) was up 0.72% to Rs 2641.45 on 6.52 lakh shares. The stock moved in a range of Rs 2601 and Rs 2646 so far during the day.

Metal shares rose on fresh buying. Sterlite Industries (up 2.08% to Rs 891.10), Tata Steel (up 0.98% to Rs 890.50), Steel Authority of India (up 7.97% to Rs 187) and Sesa Goa (up 0.55% to Rs 4280) gained.

India’s largest cellular services provider in terms of market capitalisation Reliance Communications gained 2.73% to Rs 605.10 after its 95% infrastructure subsidiary Reliance Infratel reportedly secured the Securities and Exchange Board of India (Sebi)’s nod for public issue. The Anil Ambani group company may offload a 10.05% stake in Reliance Infratel to raise Rs 5,000-6,000 crore through the IPO.

India’s largest cellular services provider in terms of market capitalisation Bharti Airtel shed 1.13% to Rs 846.50. The company’s plan for taking over South African telecom major MTN has reportedly entered into a crucial negotiation phase. While Bharti Airtel is ready to acquire 51% stake, MTN’s management wants it to buyout the entire company.

Banking shares shrugged off data showing a surge in inflation. HDFC Bank (up 1.61% to Rs 1500), and State Bank of India (up 1.31% to Rs 1701) advanced

ICICI Bank, the country's largest private sector bank in terms of net profit was up 1.22% to Rs 940. As per reports, the bank’s the private equity arm ICICI Venture Fund Management, will raise as much as $3 billion for an infrastructure and a real estate fund.

IT pivotals slipped after firm start. Infosys (down 1.28% to Rs 1867.10, off day’s high of Rs 1918.40), Wipro (down 0.66% to Rs 505.50, off day’s high of Rs 515), and TCS (down 1.05% to Rs 975.10, off day’s high of Rs 1000.15), declined.

However India’s fourth largest software services exporter Satyam Computer Services rose 0.64% to Rs 487.

The Indian rupee fell to a 13-month low against the dollar today, 16 May 2008. A depreciating rupee augurs well for IT companies as they derive over 50% of their revenues from exports to US.

Hindustan Unilever (up 1.47% to Rs 242.10) and Jaiprakash Associates (up 1.67% to Rs 270.05), edged higher from Sensex pack.

India’s largest dedicated housing finance company in terms of total income Housing Development Finance Corporation fell 1.55% to Rs 2750 on 63,625 shares. It was the top loser from Sensex pack.

Ambuja Cements (down 1.07% to Rs 110.90), and Cipla (down 1.12% to Rs 211.30) edged lower from Sensex pack.

Aishwarya Telecom was the top traded counter on BSE with turnover of Rs 357.30 crore followed by Housing Development Infrastructure (Rs 177.66 crore), Steel Authority of India (Rs 171.22 crore), Reliance Industries (Rs 171.20 crore), and Reliance Communications (Rs 169.78 crore), in that order.

In a development that can boost the stock market, the government is reportedly set to review the restrictions imposed on participatory notes (P-notes), as foreign institutional investor (FII) have pressed substantial sales from Indian markets in calendar year 2008. In October 2007, FIIs were barred from issuing P-notes in the derivatives market. The finance ministry has asked the Securities & Exchange Board of India (Sebi) to examine whether those restrictions have hindered investments by FIIs.

Meanwhile, polling began for the second phase from today, 16 May 2008, in 66 Assembly constituencies in ten districts of Karnataka. Third and final phase of election will be held on 22 May 2008 in 69 constituencies spread across eight districts. Counting of votes for all the 224 segments will be held on 25 May 2008.

European markets which opened after Indian markets, extended early gains. Key benchmark indices in United Kingdom (up 1.47% to 6,342.80), Germany (up 1.32% to 7,174.62), and France (up 0.81% to 5,098.53), edged higher.

Asian markets were trading mixed today, 16 May 2008. Hang Seng (up 0.47% at 25,633.31), Straits Times (up 0.91% at 3,236.56), Seoul Composite (up 0.14% at 1,888.43) and Taiwan Weighted (up 0.44% at 9,197.41) edged higher.

However China’s Shanghai Composite (down 0.36% at 3,624.33) and Nikkei 225 Average (down 0.23% at 14,219.48), declined.

US markets rallied yesterday, 15 May 2008, after a better-than-expected economic data and pullback in oil prices eased some of the market`s concerns about inflation.

The Dow Jones industrial average rose 94.28 points, or 0.73%, to 12,992.66. The Nasdaq Composite index rose 37.03 points, or 1.48%, to 2,533.73 while the S&P 500 index gained 15 points at 1,424.

Back home, the 30-share BSE Sensex surged 375.19 points or 2.21% at 17,353.54 and the broader based S&P CNX Nifty gained 103.50 points or 2.07% at 5,115.25, yesterday 16 May 2008.

As per provisional data, foreign funds purchased shares worth a net Rs 706.88 crore yesterday, 15 May 2008. Domestic funds bought shares worth a net Rs 363.11 crore on that day.

Foreign institutional investors (FIIs) were net buyers of Rs 524.05 crore in the futures & options segment yesterday, 15 May 2008. They were net buyers of index futures to the tune of Rs 173.50 crore and bought index options worth Rs 186 crore. They were net buyers of stock futures to the tune of Rs 150 crore and bought stock options worth Rs 14.55 crore.

US crude for June delivery rose 67 cents to $124.79 a barrel today, led by the bullish heating oil market as China and Europe scramble for barrels, thinning global supply.

The Indian stock market remains closed on Monday, 19 May 2008, on account of Buddha Pournima.