Sensex zooms by 645 points during the week

Mumbai, Oct 13: The 30-share BSE Sensex rose sharply by 645.68 points or 3.63 per cent (pc) to 18,419.04, while the S&P CNX Nifty index of NSE hiked by 242.40 points or 4.6 pc to 5428.25 in the week ended yesterday due to sustained strong buying from foreign institutional investors, firm global markets and expectations of good Q2 September 2007 results from corporate India, took the market further up last week.

Brokers said, ''On Monday, the market drifted lower on speculation of mid-term polls after Congress President Sonia Gandhi on October 7, indicating her party's readiness to face elections by stating that those opposing the nuclear deal were enemies of development and peace. The 30-share BSE Sensex, on that day, lost 281.97 points, or 1.59 pc, to 17,491.39 points. The S&P CNX Nifty ended down 100.75 points, or 1.94 pc, to 5,085.10.'' Brokers further stated, ''On Tuesday, the Sensex touched a milestone of 18,000 after worries of an early election had eased. The Congress-led United Progressive Alliance (UPA) Government at the Centre and its Communist allies agreed to meet again on October 22, to resolve the row over the nuclear deal with United States. On that day, the 30-share BSE Sensex ended up 788.85 points, or 4.51 pc, to 18,280.24 and the broader based S&P CNX Nifty ended up 242.15 points, or 4.76 pc, to 5,327.25.

On Wednesday, the record-breaking trend continued on the bourses, with easing of political worries and firm Asian markets. The 30-share BSE Sensex, on that day, rose 378.01 points, or 2.07 pc, to 18,658.25. The broader based S&P CNX Nifty index was up 114.2 points, or 2.14 pc, to 5,441.45, a leading broker added.

''On Thursday, the market recouped its lost ground in afternoon trade and rallied sharply to an all-time high. The market was quiet in early trade as the second quarter performance of Infosys Technologies disappointed investors. On that day, the 30-share BSE Sensex ended up 155.82 points, or 0.84 pc, to 18,814.07. The broader based S&P CNX Nifty index ended up 83.4 points, or 1.53 pc, to 5,524.85,'' a noted analyst said.

On Friday, the three-day bull-run came to a halt as mixture of profit booking and global negativity acted against the market uptrend. The 30-share BSE Sensex, on that day, fell 395.03 points, or 2.10 pc, to 18,419.04. The broader based S&P CNX Nifty was down 96.6 points, or 1.75 pc, to 5,428.25. Finance Minister P Chidambaram's statement that the steep rise in stock price was worrisome also pulled down bourses on that day.

Mr Chidambaram on October 12, expressed surprise over the steep rise in stock market and said it was being driven by ample fund flows from abroad. When Mr Chidambaram spoke, the market was down more than 1.5 pc and it quickly extended its losses to more than 2 pc on worries that the Government may act to counter foreign inflows.

The BSE IT index fell 1.10 pc to 4,687.79 in a week, following a slump in software stocks after Infosys Technologies reported its Q2 results on October 11, which lagged behind the estimates of investors.

Tata Consultancy Service, India's largest software services firm by sales, slid 0.66 pc to Rs 1063.10 in the week. Infosys, the second-largest computer services provider, fell 2.98 pc to Rs 1930.45. Wipro, the third biggest software firm, gained 5.49 pc to Rs 486.45. Satyam Computer Services, the fourth biggest software firm, declined 1.32 pc to Rs 438.60 in the week.

Infosys Technologies' net profit rose 19.87 pc to Rs 1074.00 crore on 18 pc rise in sales to Rs 3862.00 crore in Q2 September 2007 over Q2 September 2006, dealers added.

The BSE Capital Goods index was the major gainer in the week. This index gained 5.53 pc to 16,614.69 in a week, led by major gains in Larsen&Toubro (L&T) and Bharat Heavy Electrical (BHEL). Larsen&Toubro (L&T) gained 8.79 pc to Rs 3360.75 in the week. It secured a Rs 693 crore contract to set up sulphur plants for Indian Oil Corporation. The Company also won USD 60 million order for setting up methyl amines and dimethyl formamide plants for Methanol Chemical Company in Saudi Arabia.

The company has agreed to buy out the switchgear business of Tamco in Malaysia for USD 108 million. The acquisition will be completed by March 2008.

Bharat Heavy Electrical (BHEL) moved up 8.72 pc to Rs 2341.35 in the week. The Company bagged a Rs 394 crore contract from Rashtriya Ispat Nigam for setting up a captive power plant at Vizag Steel Pant in Andhra Pradesh.

Other stock which was in action during the week was Reliance Industries, which rose 3.34 pc to Rs 2566.85 in a week. The stock declined on October 12, on disappointment that an expected stock split or bonus issue was not announced at Company's shareholders' meeting.

Reliance Energy grew 13.07 pc to Rs 1636.30 in a week. Some reports suggested that its subsidiary, Reliance Energy Transmission has bagged a transmission project worth Rs 2,000 crore.

ICICI Bank rose 1.56 pc to Rs 1053 and State Bank of India was virtually steady to end at Rs 1862.30 in a week. Both the Banks have reduced interest rates on almost all types of loans to boost demand in festive season.

India's wholesale price index rose 3.26 pc in the last 12 months to September 29, 2007, lower than previous week's 3.42 pc rise, Government data showed on Friday, brokers added.

UNI