Market pares gains

Profit booking at higher levels in early afternoon trade capped gains in key benchmark indices after a solid early spurt. Metal, banking and capital goods stocks witessed buying demand. The market breadth was strong with small and mid-cap shares staging a comeback after a sharp recent plunge. Cues from the Asian markets, which opened before the Indian market, were positive. Spice Communications was up marginally on massive volumes.

At 12:24 IST, the 30-share BSE Sensex was up 178.37 points or 1.33% at 13,632.45. At the day’s high of 13,793.39 hit in mid-morning trade, the Sensex had gained 339.29 points.

The broader based S&P CNX Nifty was up 69.35 points or 1.38% at 4002.

The BSE Mid-Cap index was up 2.31% at 5,400.36, while the BSE Small-Cap index was up 2.94% at 6,639.34. Both these indices outperformed the Sensex.

The market breadth was strong on BSE, with 1896 gainers outpacing 480 losers. 57 stocks remained unchanged.

Among the 30-member Sensex pack, 26 advanced while the rest declined.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries fell 1.29% at Rs 2072. It was the top loser from Sensex pack.

Tata Motors (down 1.14% to Rs 396.25), HDFC (down 1.09% to Rs 2,032), Cipla (down 0.36% to Rs 207.20) and Reliance Communications (down 0.3% to Rs 436.90) edged lower from Sensex pack.

India's second largest software exporter by sales Infosys Technologies rose 1.57% at Rs 1780.

Banking stocks rose on fresh buying. State Bank of India (up 4.3% to Rs 1,175.50), ICICI Bank (up 2.97% to Rs 617.90) and HDFC Bank (up 2.02% to Rs 1,019) edged higher.

Battered capital goods stocks staged a comeback today on bargain hunting. Siemens (up 7.59% to Rs 459.50), Suzlon Energy (up 3.51% to Rs 198.90), Bharat Heavy Electricals (up 0.13% to Rs 1,502.20) rose.

India’s largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 2.65% to Rs 2,444.80 after it won a transmission line order worth Rs 446 crore.

Metal stocks rose. National Aluminium Company (up 3.31% to Rs 357.50), Steel Authority of India (up 3.21% to Rs 131.90), Hindalco Industries (up 2.68% to Rs 141.75), Tata Steel (up 1.78% to Rs 651.50) and Sterlite Industries (up 1.18% to Rs 650) edged higher.

Reliance Infrastructure (up 4.98% to Rs 812.10), Jaiprakash Associates (up 4.86% to Rs 161), Maruti Suzuki India (up 4.01% to Rs 571), Bharti Airtel (up 3.69% to Rs 743) edged higher from Sensex pack.

Spice Communication rose 0.48% to Rs 73.30 after a massive block deal of 28.45 crore shares was struck on the counter at Rs 74 per share in early trade on BSE, amounting to a sizeable 40.8% stake of the company changing hands. It was the top traded counter on BSE with turnover of Rs 2137.16 crore.

Among the small-cap counters, Silverline Technologies (up 18.39% to Rs 18.35), ITI (up 14.52% to Rs 28), Astra Microwave (up 13.15% to Rs 52.05) and Garware Offshore (up 12.39% to Rs 160.50) surged.

Deccan Aviation (up 19.35% to Rs 69.70), Panacea Biotec (up 17.22% to Rs 355), State Trading Corporation of India (up 15.52% to Rs 262.90), Spicejet (up 15.6% to Rs 28.90) and HMT (up 14.18% to Rs 54.35) edged higher from midcap pack.

ICSA India declined 0.13% to Rs 277.90 even on securing order of Rs 79.88 crore from Ajmer Vidyut Vitran Nigam for providing rural electricity infrastructure under Rajiv Gandhi Gramin Vidyutikaran Yojna of Banswara District, Rajasthan, on turnkey basis.

Tricom India rose 8.64% to Rs 115 after it fixed 22 July 2008 as the record date for 5 for 1 stock split.

Ramco Systems rose 9.66% to Rs 102.70 after it deferred board meet on 10 July 2008 to consider right issue. The revised date of the Board meeting will be communicated later.

Asian markets which opened before Indian market, edged higher. The key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan were up by 0.11% to 4.19%. US stock markets were closed for the Independence Day holiday on Friday, 4 July 2008.

US light crude for August delivery traded at $143.92 a barrel and London Brent crude rose 23 cents to $144.65 a barrel. Crude oil hit a record $145.85 on 3 July 2008.

As per provisional data, foreign funds bought shares worth a net Rs 372.35 crore while domestic mutual funds sold shares worth a net Rs 97.02 crore on Friday 4 July 2008.

Foreign institutional investors (FIIs) were net buyers of Rs 120.10 crore in the futures & options segment on Friday, 4 July 2008. They were net sellers of index futures to the tune of Rs 215.54 crore and bought index options worth Rs 99.23 crore. They were net buyers of stock futures to the tune of Rs 221.21 crore and purchased stock options worth Rs 15.20 crore.