Sensex Ends Flat, Privatization Returns

Ivaylo
08 Feb, 2007
New York City

The market opened with an upward bias, but soon plunged into negative territory after profit

[R]7:00AM NY-6:00PM Mumbai Sensex inches higher in volatile trade.[/R]
The Sensex on BSE finished 8.96 points, or 0.06% higher, at 14,652.09. The market-breadth was negative as there were three decliners for every two advancers. For 1,613 shares that declined on BSE, 1,043 advanced and 59 shares were unchanged. Of the 30 stocks in the Sensex, 17 advanced, while the rest declined. The turnover on BSE was Rs 4,466, lower than Rs 4,641 crore on Wednesday. On NSE, the turnover was Rs 9,581.76 crore, also lower than Rs 10,333.92 crore on Wednesday.

Economic news

The Reserve Bank of India said that it requires more time to study the new growth estimate for fiscal 2006 by the government. The bank still hopes that inflation will be in its target range, deputy governor Rakesh Mohan said on Thursday. Mohan also stated that the RBI was maintaining its inflation target rate of between 5.0% and 5.5% at the end of the financial year.

The government has approved the purchase of a large number of fighters and other aircraft over the next few years, including 40 Sukhoi-30 fighters from Russia. The government has also approved a project aimed at satisfying the uranium fuel requirements of the Indian nuclear-power program. The cabinet has decided to give over Rs 13 crores for land acquisition.

The government of India is targeting to privatize three power plants and raise Rs 1,500 crore in the next fiscal year.

Trading highlights

Recently listed Global Broadcasting was the most-active stocks with a turnover of Rs 641.50 crore followed by Shree Ashtavinayak and Auto Industries.

Advancers

Reliance Energy led the gainers, rising 1.7% to Rs 568.05. The company secured an engineering, procurement and construction contract worth Rs 3,800 crore for a 1,200 Megawatt coal-fired power plant at Yamuna Nagar, Haryana. Another strong performer was ICICI Bank advancing 1.4% to Rs 996, after the bank on Tuesday announced it had lifted the reference rate by 1% for corporate loans and home loans.

Car maker Maruti Udyog finished 1.5% higher at Rs 965 and Reliance Communications advanced 1% to Rs 490.50. The deadline for bidders for Hutchisson Essar to submit their offers is tomorrow. Index heavy Reliance Industries edged 0.1% higher to Rs 1,395.90, after dipping to a low of Rs 1,384.

Decliners

Hindalco Industries led the decliners, plunging 3.7% to Rs 175.20. The stock had declined from a high of Rs 184. Bajaj Auto shed 2.6% to Rs 3,000, on profit-taking, after soaring almost 10% on Wednesday. IT large-cap Satyam Computer Services declined 1.1% to Rs 485. It had confirmed plans to open up its largest Global Delivery Campus outside India in Nanjing, in eastern China. Bharti Airtel was also down 1.1% to Rs 765.25, Hindustan Lever shed 1.4% to Rs 204.55 and Wipro lost 1% to Rs 635.