The market had witnessed a bout of volatility in early afternoon trade when the sentiment was dampened by Reserve Bank of India (RBI) increasing the CRR (cash to reserve ratio) by 50 bps to 7 per cent from 6.5 per cent (100 bps is equal to 1 per cent). The market had opened on a firm note tracking recovery in Asian markets.
All the sectoral indices on BSE posted gains, with shares from capital goods leading the rally on strong revenue growth visibility. Cement, FMCG, metal shares rallied. Banking shares gained in see-saw trade.
The BSE 30-share Sensex galloped 290.08 points or 1.90 per cent at 15,550.99. The Sensex opened higher at 15,358.69 and slipped to a low of 15,224.82 at 12:20 IST, soon after the monetary policy was announced by RBI. From here it recovered slowly and steadily until it hit a high of 15,568.85 at 15:20 IST. It oscillated in a band of 344 points for the day.
Shares from the banking sector, settled on a mixed note yesterday. The BSE Bankex was up 1.2 per cent at 8,148.68. ICICI Bank (up 0.50 per cent to Rs928), Bank of Baroda (up 2.34 per cent to Rs300.25), Vijaya Bank (up 1.40 per cent to Rs54.50), Federal Bank (up 1.82 per cent to Rs352.80) and State Bank of India (up 3.61 per cent to Rs1636) gained.
On the other hand, Union Bank of India (down 1.74 per cent to Rs155), Indian Overseas Bank (down 2.24 per cent to Rs126.70), Axis Bank (down 2.03 per cent to Rs603) and Andhra Bank (down 3.10 per cent to Rs84) declined.
Shares from capital goods pack rallied on the back of strong revenue growth visibility due to their robust order book positions. The BSE Capital Goods index soared 4.90 per cent to 13,321.78, and was the top gainer from sectoral indices on BSE. Bhel (up 5.48 per cent to Rs1734.10) and L&T (up 7.29 per cent to Rs2624), surged.
India's largest power equipment Bhel firmed up even as it reported a lower-than-expected 22 per cent growth in net profit to Rs288.9 crore in Q1 June 2007 over Q1 June 2006. At the end of Q1 June 2007, Bhel had an outstanding order book position of around Rs62,400 crore.
ABB India (up 7.11 per cent to Rs1149), Crompton Greaves (up 6.92 per cent to Rs292), Punj Lloyd (up 5.20 per cent to Rs283.20), and Siemens India (up 3.46 per cent to Rs1306), were the other winners from the capital goods pack.
Cement shares posted smart gains on fresh buying. ACC (up 3.36 per cent to Rs1057), India Cements (up 7.59 per cent to Rs218.90) and UltraTech Cement Company (up 4.44 per cent to Rs937) surged.
India Cements' net profit rose 62.89 per cent to Rs183.4 crore in Q1 June 2007 over Q1 June 2006. Total Income rose 44.88 per cent to Rs710.91 crore in Q1 June 2007 over Q1 June 2006.
India's top housing finance company HDFC vaulted 5.62 per cent to Rs2016. Recently HDFC reported a robust 26 per cent rise in net profit in Q1 June 2007 over Q1 June 2006, driven by 25 per cent asset growth and an improvement in asset yields.
ITC, India's largest cigarette manufacturer, rose 1.82 per cent to Rs170.35. The stock gained after brokerage CLSA maintained buy' with a target of Rs 200 post-results. ITC on Friday, July 27, 2007, reported a 20.2 per cent rise in net profits to Rs783 crore in Q1 June 2007 over Q1 June 2006 driven by higher cigarette prices and continuing growth in the consumer, hotels and agri-businesses.
Ranbaxy Laboratories, the country's largest pharma company by sales, rose 3.80 per cent to Rs391 after it commercialised its first authorised generic product, Isoptin SR — an anti hypertensive agent — in the US market.
India's second largest listed telecom service provider in terms of sales, Reliance Communications advanced 3.83 per cent to Rs561.40 after its net profit soared 76.58 per cent to Rs837.3 crore in Q1 June 2007 over Q1 June 2006. Total income rose 18.21 per cent to Rs3229.69 crore in Q1 June 2007 over Q1 June 2006.
India's largest private steel maker Tata Steel rose 1.30 per cent to Rs655.65. Tata Steel posted 28 per cent rise in net profit to Rs1222 crore Q1 June 2007 over Q1 June 2006, on foreign exchange gains and higher margins. It earned Rs553 crore in the quarter as gains from foreign exchange. Net sales rose 7.66 per cent to Rs4198 crore in Q1 June 2007 over Q1 June 2006.
Metal stocks gained on fresh buying. The BSE Metal Index gained 2.2 per cent to 11,630.92. Sterlite Industries (up 6.22 per cent to Rs659), Hindusatn Zinc (up 6.05 per cent to Rs622), Hindalco Industries (up 2.62 per cent to Rs170.50), Jindal Steel & Power (up 4.49 per cent to Rs4191) and Sail (up 2.87 per cent to Rs150.50), advanced from metal pack.
Fourth largest IT services exporter Satyam Computer Services rose 0.52 per cent to Rs481.40 on bagging two multi million dollar contracts to support International Federation of Association Football and its major forthcoming events.
Reliance Industries (RIL), the country's largest private sector company, gained 2.44 per cent to Rs1893. There were reports that after acquiring the retail venture of the Adani Group, RIL is now likely to acquire Adani's Rs 331 crore gas supply network linking three towns in western India.
India's top tractor and utility vehicle maker Mahindra & Mahindra lost 2.86 per cent to Rs731, on 3.09 lakh shares. It was the top loser from the Sensex pack. The stock slipped for the second day in a row yesterday after it posted a 6.4 per cent fall in net profit to Rs191 crore in Q1 June 2007 over Q1 June 2006. The results were declared during market hours on Monday.
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