Continuing from Friday's strong close, markets opened the day with a huge positive gap and were never really threatened for the rest of the day. Except for ONGC and Reliance Industries, most other major frontline stocks closed the day with very good gains.
The day belonged to TCS, which excited the markets with a strong performance for the first quarter ended June '05. The strong gains in TCS led to a rally in other frontline tech stocks like Infosys, Satyam and Wipro.
The indices surged to their day's highs in late afternoon trades on short covering. Tata Steel, Hindustan Lever, Hero Honda and Bajaj Auto were among the other stocks supporting the market surge.
Sensex closed at 7347, a gain of 76 points, and the Nifty at 2234, a gain of 21 points. Nifty July futures discount to the spot index narrowed to just 1 point from Friday's 5 points.
TCS, Hero Honda and Tata Tea were among the major gainers among Nifty stocks while ITC, ONGC and VSNL were the major losers.
After the disappointment of last quarter, TCS impressed the markets by meeting earnings forecasts for the first quarter ended June '05. Profits were higher by over 33 per cent on revenue growth of close to 25 per cent. The stock closed close to 6 per cent higher.
TCS announced a major new order worth over $100 million from an unidentified US financial services company. The company added 68 new clients and over 3,600 employees during the quarter.
TCS has announced the merger of Tata Infotech with itself. The merger will be in the ratio of one share of TCS for every two shares of Tata Infotech. TCS ruled out more mergers with other Tata group technology service companies.
Tata Steel will acquire a 5 per cent stake in a coal-mining venture in Australia. The mine has proven reserves of 58-million tonnes and is expected to start production next year. The mine may also have another 100-million tonnes of deposit in the unexplored areas. After remaining sideways in early trades, Tata Steel shot up in afternoon trades and closed with gains of over 2 per cent.
Hero Honda reported a 7 per cent increase in first quarter profits as compared to the same quarter of previous year. Revenues were higher by over 14 per cent.
The company is planning to set up a third manufacturing stocks in the near future and is readying new product launches as well. The stock closed at a new high today with gains of close to 4 per cent.
Bajaj Auto announced a 27 per cent rise in first quarter profits on a revenue growth of around 33 per cent. The company has managed to improve its operating margins despite the cost and pricing pressures. Bajaj Auto is planning to set up a manufacturing facility in Indonesia to address the ASEAN market.
The company's motorcycles division has been performing well over the last few quarters, though scooter and three-wheeler sales have been slowing down. Total volumes for the quarter went up by over 35 per cent supported by a spectacular growth of over 50 per cent in motorcycles. The stock closed over 3 per cent higher at a new lifetime high.
Dr. Reddy's has reportedly tied up with Citigroup and ICICI Ventures to finance its drug discovery research programmes. While Citigroup would pump in $30 million, ICICI Ventures has reportedly agreed to provide up to $35 million.
A new mid-cap index, CNX Mid-Cap 100, made its debut today. Henceforth, this will be the principal index for mid-cap stocks and many of the stocks included in the index attracted lot of buying interest on expectations of demand from index funds. The index closed the day at 3364, close to 2 per cent higher.
Nectar Lifesciences and MSP Steel & Power started trading on the exchanges today. Issued at Rs240 per share, Nectar opened on the NSE at Rs300 and closed the day at Rs258. The stock saw a high of Rs310 during the day.
MSP Steel had a much better opening, closing the day with gains of over 50 per cent over the issue price. Issued at Rs10 per share, the stock debuted at Rs17.9 on the NSE and closed at Rs15.2. The stock saw a high of Rs19.5 during the day.
Confirming market speculation, a group led by investor Rakesh Jhunjhunwala has announced the takeover of Aptech Limited. A company promoted by the group called Aptech Investments has acquired 10 per cent stake in Aptech Limited from existing promoters at Rs56 to a share.
Aptech Investments would hike its stake in Aptech through a preferential allotment. Aptech Investments would also make an open offer for 20 per cent of Aptech Limited at Rs61 per share. The stock closed the day locked in the 20 per cent upper circuit at Rs95.5, way above the open offer price.
Two PSU stocks, ITI Limited and HMT, stood out in the mid-cap space with very strong gains. Telecom equipment manufacturer ITI Industries closed the day with gains of close to 30 per cent while HMT closed 23 per cent higher.
ITI and HMT have been surging ahead for the last couple of weeks on market talk about large order wins, financial restructuring and real estate holdings. Both companies have been going through financial and operational difficulties for many years.
Liberty Shoes soared over 5 per cent after the company announced a liberal bonus issue of one share for every share held.
Orchid Chemicals also announced a bonus issue in the ratio of one share for every two shares held. The company also announced its first quarter results today. Profits climbed over 50 per cent even though revenues declined marginally.
Orchid said prices of cephalosporin, the company's principal product, has stabilized and does not expect any pricing pressure in the near future. The company had forged partnerships in most developed markets and is betting on drugs, which are going off patent to fuel growth.
Offshore exploration services provider Aban Loyd reported a 138 per cent jump in first quarter profits on a revenue growth of close to 90 per cent. The stock closed lower.
Nucleus Software reported flat results for the first quarter ended June '05. The stock lost close to 5 per cent today.
Some mid-cap tech stocks considerable buying interest today. Four Soft saw gains of over 13 per cent in intra-day trades before closing 7 per cent higher. 3i Infotech closed over 7 per cent higher.
The Torrent group power companies continued their upsurge today as well. Torrent Power was locked in the 20 per cent upper circuit in early trades for the third day. The stock closed with gains of over 11 per cent. Torrent SEC closed the day more than 3 per cent higher.
Some of the media stocks continued to buzz around. Television Eighteen was the biggest gainer, closing more than 11 per cent higher. Traders accumulated the stock after reports that FII's can buy more of the stock.
Deccan Chronicle, TV Today and Crest Animation were among the gainers in media and entertainment stocks.
Print media and radio-broadcasting company, Mid-day Multimedia, reported good growth in first quarter profits, after market close today. First quarter profits more than doubled on a revenue growth of over 20 per cent. The stock closed with gains of over 2 per cent.
Many sugar stocks gained ground on firm international prices and expectations of steady domestic prices. Upper Ganges closed the day with gains of over 6 per cent. Dwarikesh Sugar, KCP Sugar, Oudh Sugar and Dhampur Sugar also closed with gains.
Samtel Colour crashed more than 10 per cent after the company reported disappointing first quarter results. Profits declined close to 90 per cent as the company faced pricing pressures. The company manufactures colour television picture tubes. The stock closed more than 7 per cent lower.
BPL Limited, Mahindra Gesco and Searle India were among the best performing stocks among mid-caps.
Aztec Software, Gujarat State Fertilizers and Thirumalai 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.
Gain (+) / Loss (-)
Last Update : 18 July, 2005, 16:13 PM
|7,347.10 ||+ 75.56 |
|NIFTY ||2,234.00 ||+ 21.45 |
Figures in Rupees
Last Update : 18 July, 2005, 16:02PM
|Scrip Name ||Open ||High ||Low ||Last Price|
|TCS LTD ||1,277.00 ||1,341.20 ||1,277.00 ||1,321.00|
|HEROHONDA M ||635.00 ||658.00 ||630.00 ||654.35|
|GRASIM INDUSTRIES LTD. ||1,114.80 ||1,145.00 ||1,095.00 ||1,138.45|
|RELIANCE ENR ||638.90 ||662.00 ||638.90 ||656.55|
|INFOSYS TECHNOLOGIES LTD.-ORDI ||2,205.40 ||2,279.80 ||2,205.40 ||2,272.30|
|SATYAM COMP ||486.50 ||502.40 ||481.55 ||496.65|
|BAJAJ AUTO ||1,409.00 ||1,426.00 ||1,387.00 ||1,421.00|
|LARSEN & TOUBRO LTD. ||1,255.00 ||1,300.00 ||1,255.00 ||1,290.85|
|HINDUSTAN LEVER LTD. ||157.85 ||160.85 ||157.00 ||159.65|
|TATA IRON AND STEEL CO. LTD. ||361.00 ||364.80 ||354.40 ||362.85|
|RANBAXY LABORATORIES LTD. ||1,045.00 ||1,054.00 ||1,037.05 ||1,051.40|
|DR.REDDY'S LABORATORIES LTD. ||748.80 ||760.95 ||746.50 ||758.65|
|BHEL ||892.00 ||904.00 ||882.00 ||900.45|
|WIPRO LTD. ||704.00 ||717.95 ||704.00 ||710.45|
|TATA MOTORS ||465.00 ||469.75 ||464.20 ||467.00|
|ICICI BANK L ||445.00 ||451.95 ||442.00 ||443.60|
|CIPLA LTD. ||334.00 ||338.00 ||332.05 ||332.95|
|HINDALCO IN ||1,252.00 ||1,255.00 ||1,240.00 ||1,245.90|
|TATA POWER ||410.00 ||410.00 ||398.75 ||403.25|
|HOUSING DEVELOPMENT FINANCE CO ||890.00 ||908.00 ||880.15 ||890.65|
|I T C LTD ||1,754.00 ||1,754.00 ||1,728.05 ||1,736.95|
|ONG CORP LTD ||925.80 ||930.00 ||907.00 ||917.05|
|RELIANCE* ||670.00 ||674.00 ||658.00 ||661.25|
|HDFC BANK LT ||631.05 ||637.00 ||624.05 ||627.50|
|MARUTI UDYOG ||458.00 ||459.00 ||448.00 ||452.50|
|ASSOCIATED CEMENT COMPANIES LT ||430.00 ||435.50 ||424.05 ||425.75|
|STATE BANK OF INDIA ||723.00 ||724.75 ||715.05 ||716.80|
|BHARTI TELEVENTURES || || || ||257.00|
|GUJARAT AMBUJA CEMENTS LTD || || || ||60.90|
|NTPC || || || ||92.00|
S&P CNX Nifty
Last Update : 18 July, 2005, 16:00PM
|Symbol ||Open ||High ||Low ||Last Price|
|RELIANCE ||667.00 ||672.85 ||658.20 ||661.80|
|INFOSYSTCH ||2196.10 ||2280.00 ||2196.10 ||2272.00|
|TCS ||1252.00 ||1479.00 ||1252.00 ||1322.20|
|VSNL ||344.00 ||399.00 ||335.10 ||338.05|
|ONGC ||928.00 ||932.00 ||907.65 ||917.25|
|SATYAMCOMP ||486.00 ||502.65 ||485.00 ||497.35|
|TISCO ||356.00 ||364.95 ||354.35 ||362.55|
|SBIN ||724.00 ||724.95 ||714.35 ||716.55|
|REL ||689.00 ||689.00 ||636.50 ||656.65|
|ITC ||1750.00 ||1754.95 ||1730.00 ||1738.75|
|IPCL ||188.40 ||189.90 ||187.00 ||188.05|
|ZEETELE ||171.00 ||177.50 ||171.00 ||174.30|
|HINDLEVER ||157.10 ||160.90 ||157.10 ||159.95|
|WIPRO ||708.00 ||718.00 ||708.00 ||711.00|
|TATAMOTORS ||464.60 ||470.00 ||464.25 ||468.55|
|HEROHONDA ||635.00 ||657.50 ||630.05 ||654.30|
|TATACHEM ||186.00 ||191.90 ||186.00 ||189.95|
|HDFCBANK ||633.00 ||638.00 ||624.00 ||627.75|
|LT ||1264.00 ||1300.00 ||1256.00 ||1288.95|
|GAIL ||213.05 ||217.95 ||213.05 ||215.05|
|GRASIM ||1107.00 ||1145.00 ||1100.05 ||1137.10|
|MARUTI ||455.00 ||458.95 ||451.00 ||452.80|
|PNB ||392.00 ||400.85 ||392.00 ||399.25|
|RANBAXY ||1044.95 ||1056.75 ||1036.00 ||1054.00|
|SAIL ||51.20 ||52.35 ||51.00 ||52.10|
|BHARTI ||255.10 ||264.80 ||255.00 ||257.80|
|CIPLA ||333.40 ||337.90 ||332.25 ||334.55|
|BAJAJAUTO ||1393.00 ||1429.00 ||1385.00 ||1424.80|
|GUJAMBCEM ||61.40 ||62.00 ||60.50 ||60.90|
|TATATEA ||651.80 ||683.00 ||641.00 ||672.10|
|HINDPETRO ||298.10 ||301.45 ||296.00 ||300.50|
|ICICIBANK ||444.00 ||448.80 ||442.00 ||443.65|
|M&M ||603.00 ||604.45 ||592.00 ||595.45|
|BHEL ||890.00 ||903.00 ||886.15 ||899.70|
|NATIONALUM ||159.00 ||164.00 ||154.00 ||155.60|
|ORIENTBANK ||258.10 ||261.00 ||257.10 ||258.05|
|HCLTECH ||379.00 ||387.90 ||374.10 ||385.65|
|TATAPOWER ||420.00 ||420.00 ||399.05 ||403.45|
|MTNL ||132.45 ||135.50 ||132.45 ||134.30|
|GLAXO ||877.00 ||877.00 ||855.00 ||865.70|
|HDFC ||855.00 ||908.00 ||855.00 ||891.00|
|DRREDDY ||753.00 ||764.90 ||748.00 ||760.00|
|BPCL ||345.00 ||345.00 ||339.10 ||342.70|
|HINDALC0 ||1230.00 ||1255.00 ||1230.00 ||1246.95|
|DABUR ||142.85 ||144.00 ||142.05 ||142.70|
|ABB ||1509.00 ||1525.00 ||1495.10 ||1519.10|
|SUNPHARMA ||605.00 ||619.75 ||599.95 ||612.75|
|SCI ||148.50 ||149.50 ||146.00 ||147.75|
|COLGATE ||240.00 ||243.00 ||238.20 ||242.55|
|ACC ||430.00 ||433.70 ||425.00 ||426.75|