11:30AM Stocks turned lower ahead of the Thanksgiving holiday.
After showing a lack of direction, U.S. stocks declined in late morning, as trading slowed ahead of the Thanksgiving holiday. However, gains by Boeing Co. (
BA: chart) provided support for the Dow. Company's shares rose 1% after winning a $5.5 billion order for 25 planes from Korean Air Co. Google (
GOOG: chart) topped $500 for the first time after the Internet search engine announced discounts for online shoppers, using its payment service during the holiday season. It traded up 1.7% at $503.50.
Among other movers of the day, Adobe Systems (
ADBE: chart) gained 2.6% after it was upgraded to outperform from market perform at Wachovia. Dell (
DELL: chart) gained 1% ahead of reporting quarterly results after the close of trade. Apple (
APPL: chart) shares rose 1.2% on speculation that it is working on the launch of an Iphone that would combine the capability of its Ipod media player with a phone.
Significant weakness emerged in the semiconductor sector as well as the biotechnology sector. Cephalon (
CEPH: chart) dropped 3.8% on reports that an investigation by the Connecticut attorney general found that the company engaged in questionable practices to expand sales of Actiq. Meanwhile, strong gains by gold and energy stocks helped to limit the downside for the major averages. In midmorning trading, the Dow pulled back 4.81, or 0.04%, to 12,311.73. The Standard & Poor's 500 index was up 1.28, or 0.09%, at 1,401.78, and the Nasdaq composite index fell 2.64, or 0.11%, to 2,450.08. Bonds held steady with the yield on the benchmark 10-year Treasury note unchanged from Monday at 4.60%.
10:30AM The Sensex surges on the back of strong buying in large-caps.
The
Sensex on BSE finished 186.06 points, or 1.3% higher, at 13,616.77. The market-breadth was very strong throughout the trading session, as the ratio between advancers and decliners was five to two. As 1,794 stocks advanced on BSE, 719 declined and 70 remained unchanged. The turnover on BSE was of Rs 4,041 crore, slightly lower than Rs 4,260 crore on Monday. The turnover on NSE was of Rs 9,098.66 crore, compared to Rs 9,628.51 crore on Monday. Of the Sensex index listed 30 stocks, 27 advanced, while the rest declined.
Economic news
India and China on Tuesday signed thirteen agreements, including one facilitating two-way investment flows and another for streamlining iron ore exports from India, as part of efforts to take bilateral ties to a higher orbit.
The number of telecom subscribers in India will reach a stunning 250 million by end of 2007 as the competition in the segment intensifies with aggressive expansion plans of regional and global players, according to a report.
Most active
Debutant Info Edge led the value chart with a turnover of Rs 465 crore followed by Mahindra Gesco, and Infosys.
Advancers
Cigarette maker ITC led the advance, surging 3.3% to Rs 184.35. Hindustan Lever advanced 2.2% to Rs 248.35. Bharti Airtel was among the main gainers, rising nearly 3% to Rs 622.35. The stock hit an all-time high of Rs 625.70. Reliance Communications gained 1.8% to Rs 416.70. The stock also attained an all-time high of Rs 418.
IT large-caps were in focus for the second straight day, following reports that top Indian IT firms were after over a dozen deals on an average, the sizes of which range between $50 - $100 million. Satyam Computer advanced 3.2% to Rs 455, HCL Tech rose 3% to Rs 647, TCS rose 2.8% to Rs 1,148 and Wipro added 2.6% to Rs 569.
Tata Steel gained nearly 3% to Rs 476.85. Tata Steel has called an unscheduled board meeting on Thursday, to discuss the fallout of CSN counter-bid for Anglo-Dutch steelmaker Corus.
Shares in Info Edge, India, which runs web sites for job search and matrimony, closed at Rs 593.20, a premium of 85.3% over the IPO price (Rs 320). The stock attracted a huge volume of 78 lakh shares on BSE.
ICICI Bank rose 1.4% to Rs 872, on reports that the largest private sector bank is slated to raise $1 billion through an issue of yen-denominated bonds. Other banks also gained. State Bank of India edged 2% up to Rs 1,233. 30, Bank of India rose 1.6% to Rs 190, and Bank of Baroda moved 1% higher to Rs 258.20.
Auto shares advanced supported by the general upbeat note of the market. Car major Maruti Udyog rose 1.7% to Rs 885.25, Tata Motors gained 2% to Rs 819, Ashok Leyland added 3% to Rs 43.45 and Bajaj Auto advanced 0.4% to Rs 2,576.
Mahindra & Mahindra surged 2.7% to Rs 841, after the company announced on Monday it had signed a deal with Global Vehicles, US, to distribute sports utility vehicle of Mahindra and a pick-up in the US.
Cement shares gained on firm cement prices. ACC advanced 1.3% to Rs 1,071, Gujarat Ambuja Cements jumped 1.9% to Rs 136, and UltraTech Cement rose 1.3% to Rs 895.25. Reliance Industries moved up 1.3% to Rs 1,274, and Dr.Reddy''s added 1% to Rs 731.
Small-cap and mid-cap stocks surged, bucking the recent trend. Gainers in the small-cap and mid-cap stocks were Sika Interplant Systems soaring 20% to Rs 103.90, Shrachi Securities also up 20% to Rs 63.70, Development Credit Bank rising 20% to Rs 63.20, Mount Shivalik Industries increasing 20% to Rs 56.
