Post Market Commentary - Feb 21 2008

Software shares rallied on fresh buying. India’s fourth largest software services exporter Satyam Computer Services jumped 8.71% to Rs 459.30 on 26.33 lakh shares. It was the top gainer from Sensex pack.

Infosys Technologies (up 4.56% to Rs 1639.70), TCS (up 4.64% to Rs 925), and Wipro (up 5.76% to Rs 435), surged. Tata Consultancy Services during trading hours yesterday, 20 February 2008, said it has signed a multi year contract with Chrysler LLC to provide a comprehensive portfolio of information technology services.

The partially convertible rupee was at 39.93 per dollar, rising smartly from the previous close of 40.21/23. Indian IT firms derive a lion's share of revenue from exports and they had been hit hard in the last one year by rupee’s surge.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) staged a sharp recovery from day’s low of Rs 2458.50. It ended 0.84% higher at Rs 2503 on 5 lakh shares. As per recent reports, the company is in advanced talks with the New York-based Vornado Realty Trust, one of the world’s top five real estate asset managers, to float a $1-billion plus fund.

Metal shares rallied. Hindalco Industries (up 7.53% to Rs 190), Tata Steel (up 4.87% to Rs 810.25), Sterlite Industries (up 2.23% to Rs 801.50), JSW Steel (up 2.49% to Rs 1140.50), and Steel Authority of India (up 6.32% to Rs 238.10), surged.

Hindustan Unilever (up 3.32% to Rs 221) Ambuja Cement (up 3.45% to Rs 120), edged higher from Sensex pack.

India’s largest dedicated housing finance company in terms of revenue Housing Development Finance Company slipped 3.69% to Rs 2650. The stock had slipped to low of Rs 2603.05 in late trade. It was the top loser from Sensex pack.

Banking shares recovered some losses in late trade. State Bank of India (down 0.98% to Rs 2184, off day’s low of Rs 2127.10), ICICI Bank (down 1.76% to Rs 1146.25, off day’s low of Rs 1116) slipped.

India’s second largest private sector bank in terms of assets HDFC Bank rose 1.01% to Rs 1550, off day’s low of Rs 1496.10

Four public sector banks, led by State Bank of India (SBI), on Wednesday, announced cut in prime lending rates (PLR) by 0.25% to 0.50%, in a move that will make housing and auto loans cheaper.

India’s top small car maker in terms of sales, Maruti Suzuki India was down 0.35% to Rs 766. The company said on Wednesday, 20 February 2008 it has signed an agreement with Mundra Port And Special Economic Zone for a mega car terminal at Mundra, Kutch district, Gujarat

India’s largest private sector engineering company in terms of order book Larsen & Toubro declined 0.68% to Rs 3439 even as the company said it has bagged an order from Cairn India for laying crude oil insulated pipeline and gas pipeline from Barmer, Rajasthan to Salaya, Gujarat.

Bharat Heavy Electricals (down 1.19% to Rs 2099) and Grasim (down 0.59% to Rs 2820) were the other losers from Sensex pack.

Reliance Capital topped the turnover chart on BSE with a turnover of Rs 307 crore followed by Reliance Natural Resources (Rs 302.30 crore), Reliance Power (Rs 241 crore), Essar Oil (Rs 200.40 crore) and Reliance Energy (Rs 158.25 crore) in that order

Reliance Natural Resources led the volume chart with volumes of 2.25 crore shares followed by Centurion Bank of Punjab (1.58 crore shares), Ispat Industries (1.11 crore shares), Essar Oil (84.45 lakh shares) and Gujarat NRE Coke (83.15 lakh shares) in that order.

Among the mid-cap IT stocks, Polaris Software Labs (up 9.26% to Rs 100.90), Rolta India (up 8.18% to Rs 328.50), Hexaware Technologies (up 8.83% to Rs 78.30), MphasiS (up 4.75% to Rs 242.80), and NIIT Technologies (up 2.86% to Rs 133), advanced.

Construction stocks witnessed across the board rally on renewed buying. IVRCL Infrastructures (up 3% to Rs 468), Gayatri Projects (up 2.11% to Rs 512), Punj Lloyd (up 1.76% to Rs 377.60), Jaiprakash Associates (up 7% to Rs 260.20), Patel Engineering (up 5.10% to Rs 770), and Hindustan Construction Company (up 1.93% to Rs 166.05), surged.

Reliance Power gained 3.67% to Rs 423.20 on volumes of 57.38 lakh shares. The company said on Sunday, 17 February 2008, its board will meet on Sunday, 24 February 2008, to consider issue of bonus shares. The bonus shares will be issued to non-promoter shareholders to compensate the losses suffered by them when the company was listed last week. The stock has been consistently trading at a discount to IPO price of Rs 450, since its listing on 11 February 2008.

Centurion Bank of Punjab surged 15.85% to Rs 57.75 on huge volumes of 1.57 crore shares. The stock surged on reports it is in merger talks with HDFC Bank.

HCL Technologies gained 6.16% to Rs 285 after the company said on Wednesday, 20 February 2008, it has acquired US based Capital Stream Inc. The company made this announcement after trading hours on Wednesday, 20 February 2008.

Gujarat Gas company slipped 0.21% to Rs 315. It reported 112.9% jump in net profit to Rs 38.81 crore on 46.9% rise in net sales to Rs 344.46 crore in Q4 December 2007 over Q4 December 2006. The company announced the results after trading hours on Wednesday, 20 February 2008.

Welspun Gujarat Stahl Rohren rose 0.70% to Rs 470 on reports the company is planning to set up a 2 million tonnes per annum steel plant in Mundra, Gujarat, under its backward integration plan.