Markets opened the day on a weak note following the decline in US markets yesterday. The indices declined in opening trades as profit booking emerged after the strong rally over the last two days which saw the indices scaling new all time highs.
The indices managed to recover soon enough as strong buying in PSU bank stocks emerged. SBI was the best performer in this space and was trading with gains of over 3 per cent before noon.
Though the Sensex bounced back into the green, the Nifty traded with losses for most of the day. The steep fall in ONGC was behind the significant divergence between the movement of Sensex and Nifty. ONGC has a much higher weight on the Nifty than the Sensex.
The Sensex traded in a narrow range till late in the afternoon moving around yesterday's closing levels. The last one hour saw fresh buying which pushed the Sensex firmly above the 7200-mark. The Nifty, however, could not recover from the body blow dealt by ONGC.
The Sensex managed to close above 7200 for the first time at 7211, up 17 points and the Nifty at 2212, a loss of 9 points from yesterday's close. Nifty July futures discount to the spot index narrowed to 6 points from yesterday's 29 points.
Among Nifty stocks, Glaxo, Larsen & Toubro and SBI were the major percentage gainers while ONGC, HDFC Bank and Wipro were the major losers.
US markets declined yesterday after the US Fed did not give any indication of a change in its policy of measured hikes in short term interest rates. As expected, the Fed increased the short term rate by 25 basis points. However, most market analysts expect the Fed to continue with its current policy and take interest rates to 4 per cent by the end of the year.
The Dow lost close to a per cent and the NASDAQ lost just over half a per cent. S&P 500 lost over two-thirds of a per cent.
Crude futures for August delivery declined for the third straight day and closed with losses of well over a per cent. The commodity closed at $56.50 to a barrel yesterday. Oil has lost close to 7 per cent from the record high posted on Monday.
Indian ADR's had a mixed day yesterday after the previous day's excellent showing. VSNL gained another 3 per cent after the previous day's gains of close to 3 per cent. The other telecom stock MTNL lost over a per cent. Among the tech stocks, Wipro and Infosys closed with gains while Satyam ended with marginal losses. Among the bank stocks, both HDFC Bank and ICICI Bank closed with losses.
Inflation for the week ended 18 June dropped to 4.1 per cent from 4.33 per cent reported for the previous week.
ONGC, the most valuable company in India, saw considerable profit booking after the steady decline in crude prices over the last three days. The stock lost over 4 per cent in today's trade. The stock had seen excellent gains over the last couple of weeks and had touched a new high yesterday.
The Anil Ambani group has made a grand entry into the entertainment sector by acquiring 51 per cent stake in Mumbai-based Adlabs. Companies controlled by Reliance Capital have bought out one of the promoters in Adlabs and will hike their stake through a preferential issue. An open offer for an additional 20 per cent stake in Adlabs will be made during August.
Adlabs is into post-production processing of movies and distribution in the digital format. It also runs a chain of multiplex cinema halls and has recently started movie production as well.
The Anil Ambani group may possibly leverage this acquisition to provide content when Reliance Infocomm rolls out broadband services.
According to reports, Mahindra & Mahindra would use Renault's plant in Romania to assemble the SUV model Scorpio for European and African markets. These vehicles will be sold through Renault's network in the region.
Renault does not have a SUV in its model line-up. The two companies have formed a JV to assemble a mid-size passenger car in India.
Mahindra & Mahindra has also reported a growth of 16 per cent in tractor sales for the month of June. The stock closed the day with gains.
Reliance Industries is believed to be in the process of validating a natural gas find off the Orissa coast. Preliminary estimates indicate a reserve of
2.5-trillion cubic feet of gas. Reliance has a 90-per cent interest in the field. There are reports that the government has recommended awarding six oil exploration blocks to Reliance under NELP-V.
After yesterday's negative developments which saw the exit of its vice-chairman from the company, Wipro went into a damage control exercise to assure investors about the future. A senior official of the company was quoted in newspapers giving details of the company's expansion plans.
Wipro expects to be among the top 10 IT service companies in the world within the next two to three years. Total revenues are expected to be well above the $3-billion mark by then. The company had crossed the $1-billion revenue mark during the last financial year. The stock lost close to 3 per cent.
The floods in Gujarat have affected the operations of many companies which have manufacturing facilities in the state. Among those affected are Indian Oil and IPCL. Reliance Industries has not yet made any announcement about the impact on its operations.
Maruti's June 05 sales volumes have shown an overall growth of over 4 per cent compared to the same month of last year. However, volumes have declined when compared to May 05 figures.
Volumes of the entry level Maruti 800 model saw a huge 40 per cent dip despite the 15 per cent price cut announced during the month. The company was saved by the premium small car segment where volumes increased by 33 per cent, including the newly launched model Swift.
The company's mid-size sedan segment saw a growth of over 70 per cent for the month of June on a low base. Exports also saw a marginal growth. Aggregate volumes of Maruti for the first three months of the financial year are marginally lower as compared to the previous year.
Among the two-wheeler companies which reported June sales volumes today, Bajaj Auto stood out with a 25 per cent increase in overall sales. Motorcycle sales for the company were higher by 33 per cent as compared to the same period of last year.
Three-wheeler volumes of Bajaj declined 8 per cent for the month and the aggregate volume growth for the company was 20 per cent.
Hero Honda's June volumes were higher by over 12 per cent year on year. TVS Motors had a volume growth of over 17 per cent.
Steel companies saw some buying interest even as some of them have announced price cuts over the last few days. After SAIL announced a reduction of between Rs500 to Rs2,000 per tonne yesterday, Ispat Industries announced a 7 per cent cut in prices.
Tata Steel has cut the prices of branded products by Rs2,000-Rs3,000 per tonne while keeping the long term contract prices steady. JSW Steel has also reduced prices by 7 to 8 per cent.
Mid-cap stocks bounced back strongly after almost a week of lagging behind the frontline stocks. CNX Mid-Cap 200 index closed at 3035, a gain of 43 points.
Jubilant Organosys has acquired a majority stake in a US based company for over $12 million. Jubilant may invest up to an additional $13 million and take its overall stake to 75 per cent over a period.
The US company has a manufacturing facility in Maryland to produce tablets and capsules. It also has a few ANDA's approved by the US FDA.
Kale Consultants, which offers software and BPO solutions to airlines, has signed a 5-year agreement with Indian Airlines for cargo management solutions. The stock gained over 10 per cent after the announcement.
Adlabs had yet another strong opening which saw the stock surge another 15 per cent in morning trades. The stock was trading above Rs280 even though the open offer price indicated by Reliance Capital is far lower at Rs175-Rs185 per share. The stock closed with gains of over 16 per cent.
Hindustan Motors surged over 8 per cent on renewed buying interest. The company had hived off its auto component division to a separate company in which the promoters and private equity firm Actis have taken a combined stake of 51 per cent. The balance 49 per cent will be held by Hindustan Motors.
The company is planning to launch a new premium sedan named Cedia under license from Mitsubishi Motors of Japan. It may also launch more vehicles sourced from Mitsubishi in the premium segment.
Tata Teleservices (Maharashtra) gained over 3 per cent in early trades after reports of a possible stake sale to South Korea Telecom. According to reports, the Tata group is in negotiations to sell 33 per cent stake in Tata Teleservices for Rs2,500 crore.
Tata Teleservices, which operates in more than 20 telecom circles, is not a listed company and Tata Teleservices (Maharashtra) operates only in the Maharashtra circle.
Construction company Simplex Concrete Piles reported a 160 per cent increase in profits on a revenue growth of over 50 per cent for the year ended March 2005. The company's order book stands at Rs3,500 crore.
Amara Raja Batteries' profits for the year ended March 2005 has jumped over 5 times as compared to the previous year. The company has reported a revenue growth of close to 35 per cent. The stock closed over 5 per cent lower.
Agro Dutch, Jyoti Structures and Shringar Cinema were among the best performing stocks among mid-caps.
Universal Cables, Igarashi Motors and Vardhman Spinning 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.
Gain (+) / Loss (-)
Last Update : 1July, 2005, 16:13 PM
|7,210.77 ||+ 16.92 |
|NIFTY ||2,211.90 ||- 8.70 |
Figures in Rupees
Last Update : 1 July, 2005, 16:02PM
|Scrip Name ||Open ||High ||Low ||Last Price|
|LARSEN & TOUBRO LTD. ||1,139.90 ||1,195.00 ||1,135.00 ||1,186.40|
|STATE BANK OF INDIA ||641.00 ||708.80 ||641.00 ||706.20|
|RELIANCE ENR ||636.70 ||653.90 ||630.90 ||649.75|
|TATA POWER ||380.70 ||387.00 ||378.00 ||385.75|
|NTPC LTD ||83.50 ||85.55 ||83.40 ||84.95|
|ASSOCIATED CEMENT COMPANIES LT ||379.00 ||387.25 ||376.30 ||385.40|
|RANBAXY LABORATORIES LTD. ||1,074.90 ||1,082.00 ||1,055.95 ||1,078.00|
|CIPLA LTD. ||314.20 ||322.00 ||313.00 ||319.10|
|I T C LTD ||1,609.00 ||1,685.00 ||1,609.00 ||1,671.40|
|TATA IRON AND STEEL CO. LTD. ||340.00 ||346.60 ||335.00 ||343.95|
|GUJARAT AMBUJA CEMENTS LTD. ||59.90 ||60.20 ||59.00 ||59.65|
|BHARTI TELE ||244.00 ||247.50 ||240.25 ||245.40|
|BAJAJ AUTO ||1,370.00 ||1,394.00 ||1,359.45 ||1,386.60|
|DR.REDDY'S LABORATORIES LTD. ||747.00 ||764.90 ||740.00 ||759.95|
|MARUTI UDYOG ||465.00 ||473.40 ||461.10 ||468.85|
|HINDUSTAN LEVER LTD. ||164.75 ||167.75 ||163.15 ||164.90|
|TATA MOTORS ||426.00 ||432.80 ||425.00 ||428.20|
|HEROHONDA M ||584.00 ||591.00 ||580.10 ||582.35|
|TCS LTD ||1,350.80 ||1,360.00 ||1,342.50 ||1,354.10|
|GRASIM INDUSTRIES LTD. ||1,055.00 ||1,064.00 ||1,055.00 ||1,060.05|
|ONG CORP LTD ||1,020.00 ||1,024.00 ||978.10 ||982.80|
|WIPRO LTD. ||760.00 ||763.00 ||740.50 ||744.80|
|HDFC BANK LT ||625.00 ||629.90 ||613.00 ||617.95|
|HOUSING DEVELOPMENT FINANCE CO ||862.00 ||884.00 ||862.00 ||870.15|
|BHEL ||845.00 ||876.80 ||845.00 ||856.95|
|HINDALCO IN ||1,197.25 ||1,216.80 ||1,180.00 ||1,189.95|
|SATYAM COMP ||508.00 ||508.00 ||502.05 ||504.05|
|RELIANCE* ||642.05 ||645.00 ||637.10 ||639.65|
|INFOSYS TECHNOLOGIES LTD.-ORDI ||2,305.00 ||2,365.00 ||2,305.00 ||2,350.80|
|ICICI BANK L ||424.50 ||428.80 ||419.10 ||421.30|
S&P CNX Nifty
Last Update : 1 July, 2005, 16:00PM
|Symbol ||Open ||High ||Low ||Last Price|
|SBIN ||682.00 ||708.90 ||662.15 ||706.25|
|RELIANCE ||643.00 ||645.00 ||637.55 ||640.10|
|ONGC ||1025.00 ||1025.00 ||978.00 ||983.20|
|TISCO ||342.00 ||346.50 ||336.10 ||344.15|
|INFOSYSTCH ||2345.00 ||2366.00 ||2328.20 ||2351.05|
|REL ||630.05 ||653.95 ||629.00 ||650.05|
|TCS ||1350.00 ||1356.70 ||1340.35 ||1352.40|
|SATYAMCOMP ||507.00 ||507.90 ||501.55 ||504.40|
|HINDLEVER ||164.00 ||167.80 ||163.35 ||164.85|
|LT ||1132.10 ||1192.00 ||1132.10 ||1182.80|
|SAIL ||47.95 ||49.30 ||47.05 ||48.40|
|WIPRO ||750.00 ||760.00 ||731.30 ||744.80|
|TATAMOTORS ||428.00 ||432.75 ||424.65 ||428.05|
|IPCL ||173.00 ||175.00 ||170.15 ||171.80|
|CIPLA ||314.45 ||321.95 ||312.55 ||319.40|
|RANBAXY ||1055.00 ||1083.85 ||1053.20 ||1077.70|
|BAJAJAUTO ||1350.00 ||1395.00 ||1350.00 ||1387.35|
|MARUTI ||463.00 ||479.00 ||460.00 ||471.55|
|ITC ||1650.00 ||1688.00 ||1635.05 ||1670.55|
|BHARTI ||247.80 ||247.80 ||235.00 ||245.40|
|BHEL ||860.00 ||879.50 ||845.00 ||856.95|
|M&M ||554.00 ||577.60 ||553.05 ||572.50|
|MTNL ||116.95 ||119.60 ||116.10 ||118.80|
|HDFC ||862.10 ||885.00 ||862.10 ||870.25|
|PNB ||377.50 ||390.40 ||377.50 ||385.35|
|VSNL ||245.00 ||251.90 ||243.30 ||250.90|
|GLAXO ||808.00 ||862.00 ||803.45 ||857.00|
|ICICIBANK ||427.00 ||429.25 ||419.20 ||421.25|
|ACC ||380.00 ||388.00 ||376.80 ||385.85|
|HINDALC0 ||1205.00 ||1217.00 ||1185.00 ||1189.85|
|HDFCBANK ||616.25 ||625.00 ||613.00 ||618.05|
|ORIENTBANK ||250.20 ||257.50 ||248.10 ||254.65|
|HCLTECH ||394.00 ||394.80 ||383.15 ||391.25|
|TATAPOWER ||377.00 ||385.40 ||377.00 ||385.00|
|COLGATE ||243.15 ||253.50 ||243.15 ||250.25|
|TATATEA ||621.00 ||640.00 ||617.00 ||637.35|
|DRREDDY ||755.00 ||764.95 ||737.00 ||761.40|
|ZEETELE ||156.00 ||156.80 ||154.05 ||154.55|
|HEROHONDA ||590.00 ||595.00 ||579.00 ||583.30|
|GUJAMBCEM ||59.70 ||60.15 ||58.50 ||59.75|
|GRASIM ||1060.00 ||1064.95 ||1051.10 ||1060.55|
|TATACHEM ||166.35 ||169.90 ||165.50 ||169.15|
|GAIL ||227.60 ||228.00 ||222.10 ||223.00|
|DABUR ||132.40 ||133.95 ||131.10 ||132.05|
|HINDPETRO ||307.00 ||312.75 ||307.00 ||310.90|
|NATIONALUM ||141.70 ||142.85 ||140.50 ||141.15|
|BPCL ||370.00 ||374.00 ||365.00 ||371.25|
|SCI ||141.95 ||143.10 ||140.10 ||142.80|
|SUNPHARMA ||577.05 ||592.00 ||575.00 ||588.00|
|ABB ||1306.50 ||1335.00 ||1306.50 ||1331.30|