POST-MARKET ANALYSIS - JUL 12 2007

MARKETS STRUCK ALL-TIME HIGHS

The market started on a strong note and gained strength with the progress of time, as buying momentum continued at higher levels. All the sectoral indices logged gains, with shares from auto, banking, real estate, capital goods and metal sector in forefront. However IT shares were subdued. Positive cues from global markets also supported the rally.
The 30-shares BSE Sensex surged 181.53 points to 15,092.15, as per provisional closing. This is an all time closing high for the Sensex. It opened higher at 14,963.53 tracking upbeat global markets and surged to an intra-day high of 15,112.22 by 15:15 IST, almost hitting an all time high of 15,114.95, which was hit on 10 July 2007. It oscillated in a range of 148 points. However, there was absence of volatility.
The S&P CNX Nifty struck an all-time high of 4,451.95. It was now trading with a gain of 65.65 points to 4,443.85, as per provisional closing. It also settled at all time closing high.
The market breath was strong on BSE with a little over 2 gainers for every loser: 1,820 shares advanced as compared to 894 that declined, while 61 remained unchanged.
The turnover on BSE vaulted in last hour of trade, as the market surged to Rs 6,080 crore as compared to Rs 4,641 crore at about 14:30 IST. Today’s high turnover indicates fresh buying momentum.
India's industrial production growth slowed for a second month in May 2007 as the highest interest rates in five years crimped demand and currency gains weakened exports. Output at factories, utilities and mines rose 11.1% from a year earlier, following a revised 12.4% increase in April 2007.
Manufacturing output rose 11.9% in May from a year earlier, the slowest pace in four months, while consumer goods output growth halved to 9.8%.
Among the Sensex stocks, 22 gained, while only five declined.
Aluminium and copper major Hindalco Industries galloped 6.94% to Rs 165.70 on high volumes of 55.31 lakh shares. it was the top gainer among Sensex stocks. The stock advanced on hopes of consolidation of global aluminum industry. It was boosted further by reports that Alcan Inc. was closer to arranging a friendly deal involving Rio Tinto as it fought a hostile $28.8-billion bid from Alcoa Inc.
Other metal shares, Tata Steel (up 2.35% to Rs 670.90), JSW Steel (up % to Rs ), Hindustan Zinc (up % to Rs ), Sterlite Industries (up % to Rs ), and Sail (up % to Rs ), edged higher.
Reliance Energy (REL) vaulted 6.50% to Rs 666.50 on its plans to invest Rs 60,000 crore to add 15,000 mega watts (MW) of power over the next five years. This will boost the company’s generation capacity almost 17 times from 941 MW now. The stock was also boosted by market rumors that promoters may hike their stake in REL by 5%, taking it around to 40%
Auto shares surged on renewed buying as fears of further interest rate hikes eased. Maruti Udyog (up 2.80% to Rs 828.40), Tata Motors (up 1.09% to Rs 740) and Mahindra & Mahindra (up 3.38% to Rs 807.25) gained.
Motorcycle maker Bajaj Auto advanced 3.30% to Rs 2,199 after the company said its profitability will increase in the second half of the fiscal year as it introduces new models to woo buyers deterred by higher borrowing costs.
The company reported during market hours today, 12 July 2007, a 21% decline in consolidated net profit at Rs 201.15 crore in the first quarter ended June 2007 when compared with Rs 255.77 crore in Q1 June 2006. Consolidated income from operations declined to Rs 2,206.43 crore, from Rs 2,294.28 crore.
Banks were in demand on a view that interest rates have peaked for the time being. State-run banking major State Bank of India advanced 0.76% to Rs 1,554, while private sector banks ICICI Bank (up 1.39% to Rs 967) and HDFC Bank (up 4.49% to Rs 1,202) also advanced.
Capital goods shares rallied on belief that these companies are expected to show robust growth in earning in the next couple of years on strong order book position. Stare-run engineering major Bhel surged 4.63% to Rs 1,649.50 after striking an all-time high of Rs 1,650.
Astra Microwave (up 14.27% to Rs 179.80), Bharat Bijlee (up 7.32% to Rs 2400), Alstom power (up 6.87% to Rs 880.50), Gammon India (up 4.29% to Rs 457), and Siemens India (up 3.68% to Rs 1459.90), also advanced from the capital goods space
IT pivotals underperformed in a strong market. Infosys (down 0.66% to Rs 1,917), and Satyam Computers (down 0.59% to Rs 478) and Wipro (down 0.02% to Rs 510.15) declined while while TCS rose 1.06% to Rs 1,159.
IT bellwether Infosys on Wednesday, 11 July 2007, cut its EPS and revenue guidance for FY 2008 in rupee terms following the rupee’s surge against the US dollar.
The Indian rupee fell 1% against the dollar on Thursday due to central bank intervention. At 12:52 IST, the partially convertible rupee was at 40.60/61 per dollar, after falling to the day's low of 40.75 from high of 40.33 earlier. The rupee hit a nine-year high of 40.28 per dollar in late May 2007.
GMR Infrastructure galloped 13.86% to Rs 954 on high volumes of 48.79 lakh shares. It also struck an all-time high of Rs 980 in intra-day trade on BSE. It was the top traded counter on BSE with turnover of Rs 458.54 crore.

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Buy

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UTV soft buy with sl 536 target 553---562

Indiainfo buy with sl 735 target 764.6--781

Today,s Tips

BEST BUY

DLF (BUY) 592 (Target1) 598 ( Target 2) 601 (Sl) 581

SHREE RENUKA SUGARS (BUY) 645 (Target1) 651 ( Target 2) 654 (Sl) 633

NDTV (BUY) 436 (Target1) 440 ( Target 2) 443 (Sl) 429