Sensex settles at record high of 15,272.72

Mumbai, July 15: The Bombay Stock Exchange (BSE) 30-share Sensex jumped 308.60 points last week to settle at a record closing high of 15,272.72, tracking bullish markets across the globe, fresh buying at higher levels, healthy inflow from foreign funds and domestic mutual funds and anticipation of robust set of first quaterly (Q1) June 2007 results.

Shares from the metal, capital goods, and real estate sectors advanced, while those from the information technology (IT) sector slipped.

The broader National Stock Exchange (NSE) 50-stocks S&P Nifty Index also added 119.70 points to record a closing high of 4,504.55, in the week.

Trading for the week began on an upbeat note. The Sensex rose 81.61 points, or 0.55 per cent, to 15,045.73, an all-time closing high, tracking firm Asian markets, on Monday. Tractor and utility vehicle maker Mahindra&Mahindra replaced Hero Honda in the BSE Sensex from Monday.

The market drifted lower on Tuesday as caution prevailed ahead of Infosys' earnings. The Sensex lost 36 points.

The market extended the fall on Wednesday tracking weak global markets and after IT bellwether Infosys Technologies slashed its earning per share (EPS) and revenue guidance for financial year (FY) 2008 in rupee terms while announcing Q1 June 2007 results.

The market bounced back on Thursday. Firm global markets and strong industrial production data for May 2007 released by the government during trading hours, aided the surge. The Sensex jumped 181.42 points to 15, 092.04.

On Friday, the Sensex surged 180.68 points to 15,272.72, an all-time closing high, tracking strong global markets. It also struck an all-time high of 15,330.73 in intra-day trade.

The week's gainers include Hindalco Industries, Sterlite Industries, Sesa Goa, Tata Steel, Hindustan Zinc, Sail, Bhel&L&T, Reliance Energy, Reliance Industries (RIL) and GMR Infrastructure.

IT stocks saw some unwinding after IT bellwether Infosys Technologies dissapointing results. Infosys' consolidated net profit as per Indian GAAP was down 5.6 per cent to Rs 1079 crore in Q1 June 2007, from Rs 1,144 crore in Q4 March 2007. Revenue was almost unchanged at Rs 3,773 crore in Q1 June 2007 compared to Rs 3,772 crore in Q4 March 2007.

Infosys Technologies, Satyam Computers, Wipro and TCS all settled the week with losses.

BSE Realty index, launched on Tuesday last week, surged soon after its launch and struck an all-time high of 8,041.37 on Friday.

Two heavyweights in this index, Unitech and DLF, contributed to the rally.

Meanwhile, industrial production data released during the week revealed that Industrial production rose an annual 11.1 per cent in May 2007, lower than a downwardly revised annual growth of 12.4 per cent in April 2007. The growth in April 2007 was revised downward from 13.6 per cent reported earlier. The growth was an annual 11.7 per cent in May 2006. Manufacturing production rose an annual 11.9 per cent in May 2007 compared with provisional annual growth of 15.1 per cent in April 2007.

Market players said that the committee on secretaries has given a go-ahead to public sector enterprises (PSEs) to invest a part of their cash reserves, estimated at over Rs 2,50,000 crore, in mutual funds. Reports suggest that PSEs may be allowed to invest up to 10 per cent of surplus cash in equity mutual funds.

On Thursday the government cleared 28 fresh special economic zones (SEZ) proposals, including the Navi Mumbai project promoted by Reliance Industries chairman Mukesh Ambani, taking the total number of approvals to over 500. The government also asked banks to reduce interest rates on loans given to exporters. The government will provide 2 per cent grant to loans given to exporters. The concessions will cost the government Rs 800 crore this fiscal.

Inflation data released on Friday showed a slight rise in inflation for the week ended 30 June, this year at 4.27 per cent per annum as against 4.13 per cent in the previous week due to costlier food and manufactured products. However, it was lower when compared to the annual inflation rate of 5.21 per cent during the corresponding week last year.

UNI