Markets end with modest gains

Mumbai, Aug 2: Buying momentum in real estate, cement and banking scrips, triggered by stabilising US, Asian and European indices guided the Sensex today to settle on positive terrain on the Bombay Stock Exchange (BSE) with a modest gain of 49.93 points at 14,985.70.

''After yesterday's blood-bath, when the Sensex crashed by a staggering 615 points, its third biggest fall in history, the market was going strong till mid-afternoon trade today, after opening above the psychological barrier of 15,000 at 15,022.87. However, later profit-booking emerged at higher levels, dragging it lower to ultimately close below the 15,000 level,'' market participants lamented, adding that most of the Asian markets stabilised after initial volatility while a majority of European and all US indices were trading higher, as shares from real estate, cement and banking were in demand while those of information technology (IT) and auto were offloaded at the local bourses.

The broader 50-stock National Stock Exchange (NSE) S&P CNX Nifty also advanced by around 11 points to settle in the green at 4,356.35 from it's previous close of 4,345.85 after opening firmly higher at 4,356.35 and moving between 4,399.75 and 4,327.00 during the day's session.

BSE data showed that the market breadth, indicating the overall health of the market, was positive as 1,390 shares advanced as compared to 1,275 that declined, while 57 remained unchanged. The total turnover amounted to Rs 4,419 crore. Among the 30-scrip Sensex pack, 16 advanced while the rest declined.

Among Asian markets, the Shanghai Composite gained 2.49 per cent to 4,407.73), Nikkei 225 was up 0.67 per cent to 16,984.11, Taiwan Weighted rose 0.66 per cent to 8,950.57, while Hang Seng was down 0.05 per cent to 22,443.56, and Seoul Composite also slumped 0.18 per cent to 1,853.07.

In the US, Wall Street shot higher in last-minute buying yesterday, after a session made turbulent by ongoing concerns about US home loans and the credit market. The Dow gained 150.38 points, or 1.14 per cent, to 13,362.37, the broader Standard&Poor's 500 index rose 10.54 points, or 0.72 per cent, to 1,465.81 and the Nasdaq Composite index was up 7.60 points, or 0.30 per cent, to 2,553.87.

Maruti Udyog, SBI, ICICI Bank, Reliance Communications, Bharti Airtel, ACC, Ambuja Cements, Maruti Udyog, Reliance Energy (REL) and Reliance Industries (RIL) were the day's leaders, while the laggards included Mahindra&Mahindra (M&M), Tata Motors, Hero Honda Motors and Bajaj Auto.

The European Central Bank and the Bank of England will meet later in the day today, to set interest rates amid growing concerns that an expanding subprime credit crunch in the US may have knock-on effects in Europe. Marketmen expect Bank of England to keep interest rates unchanged at 5.75 per cent following last month's quarter-point increase. ECB is expected to keep its refinancing rate unchanged at 4 per cent, but may signal an increase to 4.25 per cent next month.

Meanwhile, India's trade deficit in June this year widened to USD 7.33 billion, market analysts said adding that imports surged 36.7 per cent to USD 19.2 billion while exports rose 14 per cent to USD 11.87 billion, during the same period over the corresponding period last year.

''Auto stocks slipped in a firm market, as the sentiment was dampened by poor monthly sales figures and firm interest rates,'' analysts tracking the auto sector rued.

Top utility vehicle maker Mahindra&Mahindra (M&M) declined 2.98 per cent to Rs 673 on 3.30 lakh shares, despite its sales rising 46 per cent last month to 19,163 units over the corresponding period last fiscal. It was the top loser from the Sensex pack.

Besides, India's top bus and truck maker Tata Motors slipped 2.26 per cent to Rs 652. Hero Honda Motors shed 1.36 per cent to Rs 660 and Bajaj Auto slipped 0.17 per cent to Rs 2284.

However, Maruti Udyog outperformed on the back of 24.8 per cent rise in total vehicles sales during last month. The company sold 52,839 vehicles in the domestic market last month, a rise of 18.33 per cent over the same period last year. The stock rose 1.71 per cent to Rs 835.05.

India's largest commercial bank SBI jumped 2.95 per cent to Rs 1594, on 11.23 lakh shares. It was the top gainer from the Sensex pack. The Bank is holding talks with potential partners for its non-life insurance venture. It is also keeping options open for going alone in the general insurance business.

SBI already has a foreign partner, Cardif SA of France, for its life insurance venture which holds a 26 per cent stake and the balance 74 per cent is held by SBI. The Bank also plans to set up a holding company to transfer its share holding in its insurance and asset management subsidiaries.

Reliance Energy (REL), India's second largest power generation and distribution company in terms of sales, rose 2.27 per cent to Rs 754 on reports that it has emerged as the sole bidder for a Damodar Valley Corporation (DVC) power project in the Purulia district of West Bengal. The company is due to sign a letter of intent with DVC within a fortnight for a 1,300-mega watt (MW) coal based power plant. It is planning to invest Rs 5,000 crore over the next three years in the project, energy analysts said.

India's largest private sector company, Reliance Industries (RIL) which had surged to a high of Rs 1,839, pared gains and managed to gain 0.18 per cent to Rs 1801.25 on 8.27 lakh shares. Experts said that the government is likely to clear the price quoted by RIL for its gas from the Krishna-Godavari basin without seeking to control the price.

Battered real-estate stocks, which were worst hit in yesterday's blood-bath, made a comback today on bargain hunting. Unitech was up 3.82 per cent to Rs 534, DLF gained 0.61 per cent to Rs 588.15, Orbit Corporation surged 4.45 per cent to Rs 334.40 and Indiabulls Real Estate advanced 2.24 per cent to Rs 511.85.

US crude prices surged to a record high of USD 78.77 a barrel today after the US Department of Energy reported that US crude stocks sank by 6.5 million barrels in the week ended July 27.

UNI