Sensex Dips 0.3%, Reliance Comm Plunges

Ivaylo
06 Feb, 2007
New York City

The market witnessed a highly volatile trading session moving in and out of positive territories on a wave of sell orders in large-cap stocks. The turnover on BSE surged on three block deals in TCS. Reliance Comm led the decliners today after 5 days of rally. Reliance Energy, Ranbaxy and ICICI Bank led the gainers. Education Minister said that 100% foreign direct investment in higher education will soon be allowed. India, Iran and Pakistan inch closer to agree on natural gas pipeline project.

[R]8:30AM NY-7:30PM Mumbai Sensex declines dragged by large-caps.[/R]
The Sensex on BSE finished 37.71 points, or 0.26%, lower, at 14,515.90. The market-breadth was positive as 1,399 shares advanced on BSE, 1,271 declined and 48 remained unchanged. Of the 30 stocks in the Sensex, 18 declined, while the rest advanced. The turnover on BSE surged to Rs 6,084 crore, compared to Rs 4,719 crore on Monday, as three block deals of 23.14 lakh shares each in TCS were struck. On NSE, the turnover was Rs 9,840.6 crore, higher than Rs 9,185.62 crore on Monday.

Economic news

Higher Education Secretary R P Aggarwal hinted that the government is for a 100% foreign direct investment in higher education. The current Foreign Education Bill allows a 50% foreign direct investment in higher education.

India, Pakistan and Iran are one step closer to agree on terms to transfer and purchase gas in the region from Iran. The pipeline is expected to cost at least $7 billion to build and transport 60 million cubic meters of natural gas per day to India and Pakistan. Mr Deora, oil and petroleum minister of India said that final price for the gas purchase will be determined based on the formula agreed by three nations. The price formula, as recommended by independent consultants will be based on price for Japanese crude oil basket for six trailing months.

The BT Group, British telecom network, said on Tuesday that it would buy i2i Enterprise Pvt Ltd, an Indian internet communications company. The acquiring company, BT Telecom India, a subsidiary of BT Group, did not disclose purchase price.

Trading highlights

TCS was the most-active stock with a turnover of Rs 910 crore followed by Auto Industries and Shree Ashtavinayak.

Advancers

Reliance Energy led the advancers today, up 2.10% to Rs 560. Reliance Energy has shown interest in buying the power sector assets of Globeleq. The stock was also boosted by a contract to build a large power project in Haryana.

Ranbaxy gained 1.35% to Rs 420, after the company said it signed a new agreement for cooperation with GlaxoSmithKline for new drug development in the therapeutic areas of anti-infectives and medicines to treat metabolic disorders.

ICICI Bank gained 1.39% to Rs 960 and rebounded from low of Rs 946.

Decliners

Reliance Communications led the decliners, ending 5.13% lower to Rs 488.65. Reliance fell after five consecutive sessions of gains in which the stock advanced 18%. Reliance Communications also raised a huge $1 billion on Monday through a convertible bond issue.

Other decliners included Hindalco shedding 2% to Rs 174.50, HDFC Bank shedding 1.58% to Rs 1,084 and and Maruti Udyog off 1.39% to Rs 950.

Bharti Airtel fell 1.67% to Rs 768.20 and Hero Honda lost 1.52% to Rs 719. Index heavy Reliance Industries was highly volatile in the session finishing unchanged at Rs 1,388, on a volume of 6.02 lakh shares.