10:30AM The Sensex finished up for a third day in a row on buoyant funds
The Sensex on BSE closed 89.76 points, or 0.66% higher, at 13,706.53, which is an all-time high. The session was volatile as the benchmark index traded within a range of 115 points. The market-breadth was positive, although the margin between advancers and decliners was not big. As 1,299 shares advanced on BSE, 1,235 declined and 78 shares did not change. The turnover on BSE was Rs 5,151 crore as compared to Rs 4,595 crore on Tuesday. From the Sensex stocks 19 advanced while the rest declined. The turnover on NSE was Rs 10, 463.59 crore.

Economic news

During the first day of Chinese president visit in India, the first by a Chinese head of state in a decade, the two most populous nations in world pledged to double two-way trade to $40 billion by 2010 as well as to boost bilateral investment.

The Department of Telecom intends to roll out the optical fibre cable project in phases, which will free a part of the 45 Mhz of radio frequency being used by the armed forces presently. This will help cellular service providers, who are facing a severe spectrum crunch.

With economy on a buoyant note, India Inc today gave a thumbs up to the UPA government at mid-point of its tenure, while hoping that the pace of reforms would be accelerated for taking the GDP growth rate to double digits.

Advancers

Satyam Computers led the advancers, rising 5.96% to Rs 480.25, on 17.43 lakh shares. The stock traded in a broad range of Rs 482 – 455.05. Reliance Energy gained 3.50% to Rs 551. There are reports that subsidiary, Reliance Energy Transmission, had bid for establishing transmission lines for the Western Region System Strengthenin scheme by Power Grid Corporation of India. The financial bids were opened on 20 November 2006, and are currently under scrutiny.

Bharti Airtel firmed 2.32% to Rs 638 and Reliance Communications added 3.43% to Rs 430.15 for the second successive day on reports that the government will free up more frequencies for cellular telephony. Both had set new records earlier in the day.

Index heavy Reliance Industries advanced 0.39% to Rs 1,277.60, on a volume of 6.22 lakh shares. It traded between Rs 1,273- Rs 1,290. ICICI Bank gained 1.04% to Rs 880.40, due to reports that it will raise funds overseas to finance lending growth. State-run oil explorer ONGC advanced 1.40% to Rs 857, after global crude oil prices stabilized around $60 a barrel.

Leading zinc maker Hindustan Zinc surged 7.13% to Rs 932, supported by a rise in zinc prices on the LME, for the second day in a row. Zinc for delivery in three months closed at $4,295 a tonne, up 3% or $126 from the previous session.


ICI India soared 7.55% to Rs 374, on the assumption that it will make huge capital gains by disposing off subsidiary, Quest International. ICI India has decided to sell its wholly-owned subsidiary, Quest International India, to Givaudan of Switzerland.

Shares of textile firm Birla VXL surged 10% to Rs 53.10, for the second straight day, on hopes that the impending rights issue may be another step towards a possible turnaround.

Union Bank of India rose 1.2% to Rs 135 after allying with IL&FS for rendering services to foreign funds in India.

Decliners

HDFC Bank led the decliners, slipping 1.29% to Rs 1,077.10, on 1.39 lakh shares. Infosys sank 1.28% to Rs 2,223, as its ADR lost 3.3% on Tuesday, to close at $53.44.

Tata Steel dipped 0.84% to Rs 471.45. It announced on Wednesday it has signed a joint venture agreement with Tata Power Company for captive power plants in three states.

State-run oil refiners and marketing firms declined after crude oil touched $60 a barrel on Wednesday, its highest in two weeks. Indian Oil Corporation lost 2% to Rs 503.10, Hindustan Petroleum Corporation shed 3.03% to Rs 315, and Bharat Petroleum Corporation sagged 2.23% to Rs 371.25.

i-flex Solutions dropped 2.4% to Rs 1,550, after Oracle announced a revised schedule for the open offer, agreeing to pay interest for the period of delay.