In a repeat of yesterday's action, markets opened on a flat note in the morning even on the back of some positive global cues. US markets had a firm closing yesterday and most Asian markets opened firm in the morning.

Some amount of selling emerged in the morning itself and the markets drifted into the negative. The indices traded with a weak bias till early in the afternoon.

Later in the afternoon, buying emerged and pushed the markets up. The rally sustained till close of the day helping the indices to finish the session with decent gains.

Sensex closed at 6565, up 25 points and the Nifty at 2029, up 15 points. Nifty May futures discount to the spot index widened marginally to five points from yesterday's four points. May futures are due for expiry this Thursday. Nifty June futures are quoting at a discount of 20 points to the spot.

Among Nifty stocks, SAIL, Sun Pharma and Tata Motors were the major percentage gainers while Zee Tele, Satyam Computers and Gujarat Ambuja Cements were the major losers.

US markets continued their up trend from last week and closed with decent gains. The minutes of the US Fed meeting held earlier this month will be released today and many analysts expect to find clues to a softening of the 'measured pace' stance on short term interest rates. The first quarter GDP rates are expected to be revised to at least 3.6 per cent later in the week from the earlier estimated 3.1 per cent. Both Dow and NASDAQ closed with gains of half-a-per cent.

Crude oil futures for July delivery rose around a per cent yesterday to close above the $49 to a barrel mark. After the steady downtrend over the last week, oil futures gained as traders built fresh positions on the July contracts.

On the NASDAQ, Infosys ADR surged close to 4 per cent. Satyam and Wipro ADRs on the NYSE did not disappoint either, with gains of over a per cent each. ICICI Bank, HDFC Bank and Tata Motors closed with losses. Telecom stocks, VSNL and MTNL, both managed to close with gains.

The surge in Infosys ADR prices was after reports that the company's sponsored ADR offering is receiving very good response from overseas investors. According to reports, the issue has been subscribed more than twice in Europe and received good response in Japan as well. Infosys closed with gains of close to a per cent on the domestic bourses today.

ONGC is planning to raise up to $3 billion by way of an overseas debt issue to finance its acquisition plans abroad. The stock closed with gains of half a per cent.

According to reports, ONGC is evaluating Tide Water Oil for a possible acquisition. Tide Water markets automobile lubricants. ONGC may also get a place in the Fortune 500 list of largest global corporations this year.

Wipro is on the look out for more overseas acquisitions. According to reports, the company is also a front runner to win part of a $3-billion development and outsourcing order from General Motors. Wipro has bid for part of the order on its own and has teamed up with Accenture for another part.

Wipro also announced an alliance with US based Wind River, a company which develops application software for devices. Wipro closed with gains of over two per cent.

Ranbaxy gained over a per cent after the company announced the US launch of a tablet, Clarithromycin, to treat infections. The US market for this medicine is estimated at over $200 million per year.

Automobile exports from the country posted a strong 34 per cent growth for the month of April. Commercial vehicles with an increase of over 76 per cent followed by two-wheelers with gains of 49 per cent were the star performers.

Auto stocks had a good day at the markets today as most of them closed with gains. Tata Motors was one of the better performers with gains of close to 3 per cent.

Mid-Cap Action

Bharat Forge, the second largest forgings company in the world, announced its results for the quarter and year ended March 2005. The company, which is a major supplier to automobile companies, has increased its profits for the fourth quarter by over 33 per cent and for the full year by close to 30 per cent.

Bharat Forge is also planning an acquisition in the US which is expected to cost $15 to $20 million. The stock declined more than a per cent after the results announcement.

Balmer Lawrie, a diversified public sector company, surged close to 10 per cent after the company announced a 126 per cent surge in profits for the quarter ended March 2005. The company manufactures a host of industrial products steel barrels, cylinders, chemicals etc and also has a trading arm.

Sirpur Paper Mills lost ground after the company announced disappointing results. For the quarter ended March 2005, profits have declined over 60 per cent. Total revenues have also shown a marginal decline of 3 per cent.

KCP Limited, LG Balakrishnan Brothers and Jindal Photofilms were among the best performing stocks among mid-caps.

Mangalam Drugs, Foursoft and Herdilia Chemicals were among the significant mid-cap losers.

*Disclaimer: The author does not have any position in the stocks specifically mentioned above at the time of writing this article. This analysis / report is only for the purpose of information and is not an investment advice. Readers are advised to consult a certified financial advisor before taking any investment decisions. While efforts have been made to ensure the accuracy of the information provided in the content the author or publisher shall not be held responsible for any loss caused to any person whatsoever.

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