Sensex records modest gains

Mumbai, July 16: For the third straight session, the bulls today rallied on the Bombay Stock Exchange (BSE) as the Sensex advanced by 38.50 points to settle in the green at 15,311.22, as buying momentum continued in index pivotals especially in banking, real estate and cement sectors.

''The gain, however, has been relatively modest today on account of the Rupee's rally against the greenback today, further hammering the fortunes of information technology entities,'' market analysts pointed out.

The barometer index had opened firmer at 15,295.03 from its previous close of 15,272.72 to move between 15,341.38 and 15,239.41 during the day's session.

Similarly, the National Stock Exchange (NSE) S&P CNX Nifty Index also gained by around 8 points to close on safe terrain at 4,512.15 from its previous close of 4,504.55, after opening firmly higher at 4,505.95 and touching an intra-day high and low of 4,521.85 and 4,495.95, respectively. It is pertinent to note here that the day's high is a record high for the Nifty.

BSE data revealed that the total turnover on BSE picked-up in the last one hour of trade to Rs 5,270 crore. Among the 30-scrip Sensex pack, 18 stocks declined while the rest advanced.

The Rupee today rallied further against the US currency and breached the 40.40 level during morning trading, buoyed by dollar selling by exporters and banks, coupled with the sliding dollar in overseas markets. The local currency resumed higher at 40.40/42 per dollar against the previous session's close of 40.42/4250 per US dollar and later rose to 40.37/38 during noon trade.

Foreign institutional investors (FIIs) bought shares worth nearly Rs 1,323.52 crore, while domestic institutional investors (DIIs) were buyers of shares worth approximately Rs 174.37 crore in the last session.

Reliance Energy, State Bank of India (SBI), Bajaj Auto, Reliance Communication, ACC, Ambuja Cements, Birla Corporation, UltraTech Cement Company, Shree Cements, Oil and Natural Gas Corporation (ONGC), Reliance Industries (RIL), Orbit Corporation, Indiabulls Real Estate and DLF advanced.

The laggards included Hindustan Unilever, Cipla, Ranbaxy Laboratories, Dr Reddy's Laboratories, Satyam Computer, Wipro, TCS and Infosys. TCS will announce its first quarterly (Q1) June 2007 results after trading hours today.

The Anil Ambani-controlled Reliance Energy ltd (REL) stock advanced by 4.85 per cent to Rs 708, on 7.70 lakh shares. They have set a target to bag at least two ultra mega power projects (UMPPs) of 4,000 MW each with an investment outlay of nearly Rs 40,000 crore. It was the top gainer from the Sensex pack.

State Bank of India (SBI) surged by 4.15 per cent to Rs 1618.50.

SBI Mutual Fund had earlier said on Thursday that it collected Rs 2,536 crore from Infrastructure Fund Series-I, which closed for subscription last month. The scheme got good response from retail investors and received an overwhelming 6.7 lakh applications during the new fund offer (NFO) period.

Auto major Bajaj Auto jumped 4.11 per cent to Rs 2,264 on reports that the two-wheeler maker is looking for an acquisition in the European motorcycle market. As per reports, ace bike makers Ducati Motor Holding of Italy and Triumph Motorcycles of the UK are among the possible targets for acquisition.

Telecom services provider Reliance Communication moved up 3.44 per cent to Rs 573.80 after it had signed an agreement to acquire US-based Yipes for USD 300 million. The stock also struck an all-time high of Rs 572.70. Yipes Enterprise Services, the leading provider of managed, end-to-end gigabit ethernet solutions, is a privately held company backed by top tier investors.

Cement stocks also gained on fresh buying.

State-run oil exploration major Oil and Natural Gas Corporation (ONGC) gained 1.60 per cent to Rs 915, on its plans to expand its presence in the power sector by adding about 2,700 MW of gas-based generation capacity, for both captive and commercial use, through three plants. The plant at the company's special economic zone at Dahej in Gujarat is touted to be biggest among the, 1,000-MW gas-based plants, analyst tracking the energy sector said.

Index heavyweight Reliance Industries (RIL) was up 0.20 per cent to Rs 1,772, on 3.80 lakh shares. The stock is eyeing all-time high of Rs 1,786.40, which it hit during the last trading session.

Shares from the real-estate sector surged on the belief that interest rates have peaked and the Reserve Bank of India may not raise them further in its monetary policy review on July 31. Meanwhile, fast moving consumer goods (FMCG) major Hindustan Unilever slumped 2.66 per cent to Rs 197.25, on high volumes of 26.58 lakh shares. A block deal of 12.04 lakh shares was struck on the counter on BSE at Rs 201.85 per share by 1008 hrs. It was the top loser from the Sensex pack.

Pharma shares slipped on profit booking, while IT pivotals remained subdued throughout the day due to the strengthening rupee, market analysts explained.

Asian markets were trading on a mixed note today, with shares in Singapore setting a record intra-day high after US blue chips' record performance last week. South Korea's Kospi was volatile as investors booked profits in shipbuilding shares.

Hong Kong's Hang Seng was down 0.63 per cent at 22,953.94, South Korea's Seoul Composite slumped 0.68 per cent at 1,949.51, Taiwan's Taiwan Weighted slipped 0.57 per cent at 9,415.31, Singapore's Straits Times tanked 0.04 per cent at 3,653.23 and Shanghai Composite was down 2.36 per cent to 3,821.96.

The Japanese market remained closed today for a public holiday.

US stocks rose further into record territory last week and posted strong weekly gains as investors continued the previous session's record rally after in-line earnings from General Electric and a jump in a consumer-confidence survey. The Dow Jones Industrial Average rose 45.52 points to a record 13,907.25, while the Standard&Poor's 500 Index gained 4.80 points to a record finish of 1552.50.

Oil prices inched up today amid concerns over production in the North Sea. Light, sweet crude for August delivery gained 5 cents to USD 73.98 a barrel in Asian electronic trading on the New York Mercantile Exchange, midmorning in Singapore.

UNI