Sensex gains 26 points, Nifty adds 34 points

Mumbai, May 5: The Sensex wrapped up the week by losing 143.94 points to settle in the red at 13,934.27 on the Bombay Stock Exchange on heavy selling pressure in index pivotals.

Among the broader markets, the Nifty Index also plunged by 33.50 points on the National Stock Exchange (NSE) to close in the red at 4,117.35 from its previous close of 4,150.85 points.

However, market analysts pointed out that the market edged higher in a truncated trading week. Select side-counters were in demand, either due to their strong fourth quaterly (Q4) results or on expectations of good earnings.

The 30-share BSE Sensex rose 25.69 points to 13934.27 in the week ended May 4. The S&P CNX Nifty advanced 33.85 points to 4117.35 in the week, experts pointed out.

Small-cap and mid-cap stocks extended their recent gains. BSE Mid-Cap Index rose 129.63 points to 5863.16 in the week. BSE Small-Cap Index rose 90.09 points to 7031.57 during the week.

The two key indices Sensex and S&P CNX Nifty witnessed a divergent trend on Monday. While the Sensex shed 36.21 points to end at 13,872.37, Nifty rose 4.40 points and settled at 4,087.90.

However, the highlight of the trading session was a tremendous intra-day rebound by both. The Sensex reverted from the lower level after having plunged as many as 214.99 points in mid-morning trade.

It may be recalled here that the market remained closed on Tuesday and Wednesday on account of public holidays.

Renewed buying in Reliance Industries (RIL) took the Sensex up by 206 points on Thursday. Rallying US markets and firm Asian markets aided the rally on domestic bourses.

A fall in RIL, caused by an unfavourable interim order of the Bombay High Court, pulled the barometer BSE Sensex below the psychologically important 14,000 mark yesterday. Information Technology (IT) pivotals also edged lower, hit by the Rupee's surge.

The domestic bourses bucked a firm trend in Asian stocks. Sensex lost 143.94 points to finish at 13,934.27.

Foreign Institutional Investors (FIIs) pressed sales to the tune of Rs 304.60 crore on Monday but resumed buying on Thursday with an inflow of Rs 56.20 crore. Mutual funds were net buyers to the tune of Rs 71.30 crore on Monday and Rs 298 crore on Thursday, traders revealed.

Finance Minister P Chidambaram on Thursday announced changes in the Finance Bill 2007-08, following a discussion in Parliament.

Chidambaram said the government will charge an ad valorem duty of 12 per cent on cement priced above Rs 190 per 50 kg bag as against the budget proposal of Rs 600 per tonne. After this 12 per cent duty, the effective reduction in tax burden on cement sold above Rs 190 per bag would be up to Rs 7, Chidambaram said during the debate on the Finance Bill 2007-08 in the Lok Sabha.

The import duty on jems&jewellery has been completely abolished and duty on cut diamonds abolished. The export duty on low-grade iron ore export was slashed to Rs 50 per tonne from Rs 300 per tonne.

The Finance Minister also recast the tax on Employee Stock Options (ESOPs). Fringe Benefit Tax will now be applicable on date of vesting. Guidelines will be issued in due course on how to arrive at the value of ESOPs. The Lok Sabha on Thursday passed the Union Budget 2007-08 by voice vote.

Index complier MSCI rejigged its Standard Index Series following an annual review. With regard to India, three stocks have found place in the Standard Index Series. They are Aditya Birla Nuvo, Unitech and Videocon Industries. Simultaneously, ten stocks have moved out--Arvind Mills, Bajaj Hindusthan, Bank of Baroda, Biocon, Britannia Industries, Colgate-Palmolive India, Jet Airways India, Matrix Laboratories, Moser Baer India and Nicholas Piramal.

Market pundits are of the view that the outcome of the ongoing seven-phased Uttar Pradesh assembly elections would be a barometer of national political trends.

Cement shares rose after excise duty relief announced by the government on Thursday.

ONGC came out of lower level on renewed buying.

Bajaj Auto (BAL) surged 4 per cent to Rs 2551.05 on Thursday.

ICICI Bank lost 7.2 per cent to Rs 865.90 on Monday after the private sector bank reported disappointing 4.45 per cent net profit growth for Q4 March 2007.

Colgate-Palmolive India jumped 12.7 per cent to Rs 396.45 in a single trading session on Friday IFCI surged ahead on its Q4 March 2007 results on Thursday.

UNI