Sensex touches all time high during week

Mumbai, Oct 27: The BSE Sensex zoomed by 1683.19 points, or 9.59 per cent, to close at an all time high of 19243.17 during the week ended October 26.

Similarly, The S&P CNX Nifty index of NSE also surged by 487 points, or 9.33 per cent, to touch a new peak at 5702.30 in the week.

Brokers said a partial breather provided by Securities and Exchange Board of India (SEBI) at the onset of the week with respect to Participatory Notes (PNs), boosted the bourses.

Expectations of a further cut in interest rate by the US Federal Reserve also aided the rally on the domestic bourses last week. The Sensex gained during all the five trading sessions in the week.

SEBI, last Thursday, had put restrictions on the issue of participatory notes (PN) and directed some existing PN positions to be wound up within 18 months.

SEBI, on October 23, said sub-accounts which intend to covert into foreign institutional investor status have to send their letter of intent to the regulator within 24 hours. SEBI later said that all the 20 PN issuing FII sub-accounts have expressed intent to convert into foreign institutional investor (FII) status. There are 34 PN issuing entities in the country, of which some are already FIIs.

The BSE Mid Cap index rose 682.08 points or 9.42 per cent to 7920.66 and BSE Small Cap index rose 750.63 points or 8.53 per cent to 9550.95 during the week. Both these indices underperformed Sensex.

BSE Auto index was up 6.04 per cent at 5616.97, BSE IT was down 1.07 per cent at 4635.58 and BSE (Oil&Gas) was up 8.41 per cent at 11103.46.

BSE Bankex was up 16.25 per cent at 10273.53, followed by BSE Capital Goods index up 20.16 per cent at 18540.15, BSE Metal up 15.64 per cent at 16744.56, BSE Realty up 10.68 per cent at 10020.75.

The BSE Sensex rose by 54.01 points or 0.31 per cent at 17613.99 last Monday. The market bounced back after an initial slump caused by worries about the US economic outlook. While the BSE Sensex managed to post gains, the S&P CNX Nifty settled with losses.

Volatility was high due to alternate bouts of buying and selling.

European and Asian markets were trading lower on worries about the US economic outlook.

The BSE Sensex posted its biggest ever single day gain of 878.85 points or 4.99 per cent at 18492.84 on October 23. The market spurted after the market regulator Securities Exchange Board of India, after trading hours on October 22, provided partial breather to FIIs with respect to proposed restrictions on use of participatory notes and said it would speed up regulatory clearance for foreigners keen to invest transparently.

The BSE Sensex closed higher by 20.07 points, or 0.11 per cent, at 18512.91 on October 24. The Sensex posted gains as investors flocked to blue-chip shares, inspired by robust set of results posted by them for the quarter ended September 2007. All this came on the back of volatility, which remained high ahead of the expiry of October 2007 derivatives contracts on October 25.

The BSE Sensex gained 257.98 points, or 1.39 per cent, at 18770.89 on October 25. The market settled on a firm note on buying in index pivotals. However, trade was choppy towards the fag end of the day ahead of expiry of October 2007 derivatives contracts and ahead of SEBI's board meeting to take a decision on recently announced proposals to curb foreign inflows through the route of participatory notes. European markets and Asian markets were trading with gains.

The Sensex surged by 472.28 points, or 2.52 per cent, at 19243.17, an all-time closing high on October 26. The market surged on renewed buying interest in index pivotals following healthy rollover of derivative positions from October 2007 to November 2007 on October 25.

Global cues were mixed. The market shrugged off concerns arising from possible FII sales after market regulator Securities and Exchange Board of India put restrictions on issue of participatory notes (PN) after trading hours on October 25, and directed some existing PN positions to be wound up within 18 months.

SEBI chairman M Damodaran said on October 25 that there was no change in the draft regulations announced by the regulator last week on participatory notes (PNs). The draft proposals announced on October 16 had put restrictions on use of PNs. Mr Damodaran said Sebi would review the position on the issue from time to time.

While announcing rules to curb issue of participatory notes (PNs) by FIIs, SEBI on October 25 announecd that PNs can now be issued only to foreign entities which are 'regulated' in their respective jurisdiction and not to those that are merely 'registered' in the jurisdiction as was the norm earlier. This will mean that many hedge funds that are not regulated in their home country will find it difficult to invest in the Indian market.

Union Finance Minister P Chidambaram said on October 26 that the government wanted to moderate capital inflows without hurting growth of the country's economy. The Minister's comments came a day after SEBI's tightening of investment rules for unregistered FIIs.

ICICI Bank, the country's largest private sector bank in terms of net profit, rose 15.66 per cent at Rs 1184.45. Its net profit rose 32.7 per cent to Rs 1002.60 crore on 41 per cent growth in total income at Rs 9588.41 crore in Q2 September 2007 over Q2 September 2006. The results hit the market after trading hours on last Friday.

India's largest oil exploration company in terms of market capitalisation Oil and Natural Gas Corporation (ONGC) rose by 4.32 per cent to Rs 1056. There were reports that its joint venture firm ONGC-Mittal Energy had acquired a 30 per cent participating interest in an exploration block in Turkmenistan. The report did not disclose the deal value.

India's largest private sector entity by market capitalisation and oil refiner Reliance Industries Limited (RIL) rose 9.03 per cent to Rs 2692.25. As part of a restructuring exercise, RIL has reportedly decided to hive off Reliance Fresh into a separate company, Ranger Farm, for single point accountability. Reliance Fresh sells food, fruits and vegetables and consumer products.

India's largest pharma company by sales, Ranbaxy Laboratories (RLL) gained by 2.06 per cent at Rs 425.15. Ranbaxy on October 22, said it had received approval in Canada to manufacture and market Ran-Lisinopril 5, 10 and 20 miligram oral tablets from Health Canada, Therapeutic Products Directorate (TPD). Lisinopril is indicated for the treatment of hypertension.

India's fourth largest software services exporter Satyam Computer Services gained by 3.16 per cent to Rs 474.60. Its net profit rose by 7.19 per cent to Rs 417.15 crore on 10.75 per cent rise in sales to Rs 1948.24 crore in Q2 September 2007 over Q1 June 2006. The company declared the results on October 23. The company revised upwards earnings as well revenue guidance for FY 2008 (year ending 31 March 2008), both in rupee terms and dollar terms.

Reliance Energy, the country's second largest power utility company by sales, rose by 25.26 per cent to Rs 1,670. The stock's rise follows chairman Anil Ambani's briefing to the media on October 23 that Reliance Power will be valued nearly two times its holding company, Reliance Energy, after the mega initial public offer.

India's leading bank by net profit State Bank of India jumped 24.97 per cent to Rs 2083.95. On October 23, SBI Life Insurance Company posted net profit of Rs 14.09 crore for the first half year ended September 30 with an 80 per cent increase in its total premium collection.

SBI Life Insurance has become the first private sector life insurance company to make profit. A 74:26 joint venture between the State Bank of India and Cardif, a BNP Paribas company, it manages assets over Rs 6000 crore.

India's biggest power generation firm by revenue NTPC advanced 13.61 per cent to Rs 228.75 on reports that it has formed a joint venture with an Indonesian coal producer to ensure fuel supplies for its projects.

World's sixth largest steel maker, Tata Steel rose 16.31 per cent to Rs 990.60. The stock surged on reports that Tata Steel is looking at investment opportunities in CSN's heartland Brazil. Tata Steel will reportedly in the next few months send a delegation to the Northern Brazilian state of Maranhao in order to evaluate investment opportunities there. Tata Steel's net profit rose 8.11 per cent to Rs 1190.83 crore on 11.41 per cent rise in total income to Rs 4879.41 crore in Q2 September 2007 over Q2 September 2006. The company announced the results on October 26.

India's third largest pharma company by sales, Cipla rose 3.82 pc to Rs 185. It reported 5.73 pc rise in net profit to Rs 190.62 crore 25.01 pc rise in total income to Rs 1140.21 crore in Q2 September 2007 over Q2 September 2006. The results were announced on October 24 2007.

Dr. Reddy's Laboratories, the nations third largest pharma company by market capitalisation, slipped by 0.4 pc to Rs 611.95.It reported a 4.5 pc fall in consolidated net profit to Rs 267 crore in Q2 September 2007 over Q2 September 2006. Dr. Reddy's total revenue at Rs 1267 crore was 37 pc below last year's Rs 2004 crore that included Rs 781 crore of one-time gains from exclusive marketing rights for two drugs. The results were announced on October 24.

India's largest engineering and construction company Larsen&Toubro (L&T) galloped 28.24 pc to Rs 3876.80 .It hit an all time high of Rs 3,898 on October 26 2007. L&T posted 72.95 pc rise in net profit to Rs 348.02 crore on 43.54 pc rise in total income to Rs 5,523.27 crore in Q2 September 2007 over Q2 September 2006. The company announced the results on October 26 2007.

Shares of Bajaj Auto, the country's second largest bike manufacturer by sales were up marginally by 0.16 pc to Rs 2,515.55.

TVS has reportedly filed a Rs 250 crore defamation suit against Bajaj Auto in the Bombay High Court. This is in reaction to Bajaj's allegation that TVS had infringed the latter's patented DTSi (digital twin spark plug ignition) technology.

India's largest cigarette maker in terms of sales ITC hiked by 3.37 pc to Rs 180.80. It posted 13.42 pc rise in net profit to Rs 770.87 crore on 18.2 pc rise in total income to Rs 3,481.63 crore in Q2 September 2007 over Q2 September 2006. The results were announced on October 26.

Annual inflation, based on the wholesale price index (WPI), remained unchanged at 3.07 pc in the week ended October 13 compared with the week ended October 6. The market estimate was 3.02 pc. WPI stood at 5.46 pc in the corresponding week a year ago. Prices of food articles, like fruits and vegetables, pulses, eggs, meat and fish, climbed up. Manufactured food articles like atta, maida got cheaper, brokers added.

UNI