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Market gains on sustained buying support

MUMBAI — Strong liquidity lifted the bourses for the third consecutive day yesterday. The market hit fresh all-time high towards the latter part of the trading session. The market had witnessed a bout of volatility in early trade.

Capital goods, metal, auto and realty stocks extended gains. Mid-cap and small-cap indices outperformed market. Asian markets held firm. European markets were positive. The market breadth was marginally weak.

Infosys witnessed a setback after it announced Q2 September 2007 results before trading hours yesterday. Other IT pivotals tumbled following the post Q2 results setback in Infosys counter. Reliance Industries edged higher in volatile trade.

The BSE 30-share Sensex was ended up 155.82 points, or 0.84 per cent, to 18,814.07, a record closing high. It opened on a positive note. It hit fresh all-time high of 18,832.65 in late trade. It hit intra-day low of 18,536.97 in afternoon trade. At day's low of 18,536.97, Sensex had lost 121.28 points for the day.

The Bank of Japan (BoJ) yesterday, kept interest rates unchanged at 0.5 per cent as widely expected. Bank of Japan Governor Toshihiko Fukui said in a news conference that price pressures are growing and that there is no change in the central bank's stance on gradually adjusting interest rates in line with economic conditions.

India's largest private company in terms of market capitalisation and oil refiner Reliance Industries (RIL) rose 0.47 per cent at Rs 2,629.65. The stock came off session's low of Rs 2,585.25. Earlier, the stock had pared gains from session's high of Rs 2,656. Reliance Industries and Indian Oil Corporation may jointly explore an oil area in East Timor, reports suggest. RIL said after trading hours yesterday, 10 October 2007, it will unveil Q2 September 2007 results on 18 October 2007. Auto stocks rose in late trade. Tata Motors rose 3.05 per cent to Rs830.40. Maruti Suzuki India rose 1.59 per cent to Rs1,118.60 on signing an agreement with Magneti Marelli and Suzuki Motor Corporation for starting a joint venture in India for manufacturing electronic control units for diesel engines. Bajaj Auto (down 0.04 per cent to Rs2,619.90) edged lower. Hero Honda Motors (up 0.06 per cent to Rs754.15) edged higher.

Mahindra & Mahindra rose 7.62 per cent to Rs 813.35 and was the top gainer from the Sensex pack. Mahindra & Mahindra's wholly owned subsidiary Mahindra Intertrade is all set to step into front end retail, reports suggest.

IT pivotals were major losers from Sensex pack after Infosys announced its results just before trading hours yesterday. India's No. 2 software services exporter Infosys Technologies declined 6.99 per cent to Rs1,976. It clocked high volume of 24.27 lakh shares on BSE.

Satyam Computer Services (down 7.5 per cent to Rs 447.95), Tata Consultancy Services (down 4.72 per cent to Rs 1,071.90), Wipro (down 2.99per cent to Rs 488.10) edged lower.

Infosys revised upwards earnings and revenue guidance for FY 2008 (year ending 31 March 2008). The company has forecast a between 17.5 per cent to 18.1per cent growth in EPS in FY 2008 as per Indian GAAP to between Rs78.60 to Rs78.99. It has forecast a between 19.4 per cent to 19.8 per cent growth in revenue as per Indian GAAP to between Rs16588 crore to Rs16648 crore.

As per US GAAP, the company has forecast a between 32.4 per cent to 33.1 per cent growth in consolidated earning per American depository share to between $1.96 to $1.97. The company has forecast a between 34.5 per cent to 35 per cent growth in revenue as per US GAAP to between $4.16 billion to $4.17 billion.

Infosys consolidated net profit as per Indian GAAP rose 1.94 per cent to Rs1100 crore in Q2 September 2007 over Q1 June 2007. Consolidated revenue rose 8.8 per cent to Rs4106 crore from Rs3773 crore in Q1 June 2007.

Capital goods stocks extended gains. Larsen & Toubro rose 3.4 per cent to Rs 3,486.65. It hit an all-time high of Rs 3,501 yesterday after it acquired switchgear company in Malaysia. Bharat Heavy Electricals (up 3.89 per cent to 2,421.20) and Suzlon Energy (up 0.54 per cent to Rs 1,778.10) edged higher.