|
After
gaining continuously over the last few weeks, the markets
are showing some signs of a correction. The first signs
of the loss in momentum were visible on Friday, but Monday's
positive closing comforted the traders.
Today's
selling pressure was too much for the markets to handle
and the indices saw their worst intra-day decline in the
last two years.
The
morning session was promising as the indices managed to
hold on to their levels despite weakness across most global
markets and higher crude oil prices. After holding on
till noon, the markets started sliding as funds and traders
started unwinding their positions.
The
trigger was the sell-off in technology stocks, which were
weak even in morning trades. As the indices declined,
selling pressure spread to other frontline stocks. Most
of the high fliers from recent weeks slipped sharply and
at one point the Sensex had lost more than 350 points
and the Nifty was trading lower by more than 100 points.
Sensex
closed with losses of 306 points at 11356 and the Nifty
closed lower by 98 points at 3380. Nifty April futures
closed at a discount of 3 points to the spot index.
The
sell-off was so severe that not even a single stock among
the 30 Sensex stocks closed with gains. There was only
one stock among the 50 Nifty stocks, which managed to
close higher.
Technology
stocks saw a large sell-off ahead of their results announcements.
It is rumoured that some FII's were heavy sellers in frontline
tech counters. Announcements by companies like Infosys
and Satyam on possible bonus issues are seen by some traders
as steps to ease market concerns about modest guidance
for 06-07.
TCS
was the biggest loser among the pack, closing nearly 6
per cent lower. Satyam Computers declined nearly 4.5 per
cent while Wirpo closed more than 3.5 per cent lower.
Infosys gave up more than 3.5 per cent and HCL lost 2
per cent.
VSNL
was the biggest loser among index stocks closing nearly
8 per cent lower. Among other telecom stocks, MTNL lost
over 5 per cent while Reliance Communication gave up 3
per cent.
Cipla
lost 5.5 per cent after the spectacular rally in recent
weeks.
Jet Airways once again deceived as the stock gave up all
its recent gains and closed more than 5 per cent lower.
Auto
stocks gave up further ground on concerns of higher oil
prices affecting demand. Tata Motors and Maruti gave up
5 per cent each. Hero Honda declined more than 4.5 per
cent on reports of a strike at its assembly facility.
Tata
Chemicals lost more than 4.5 per cent on reports of a
large excise duty claim. The company also denied market
rumours about a bonus issue.
BPCL,
the lone gainer among Nifty stocks, closed nearly a per
cent higher.
Global
markets / crude oil
US markets corrected for the third straight session on
inflation worries as crude oil and other commodity prices
continued their uptrend. Technology stocks were the worst
hit as any decline in business spending would hit them
hard.
The
Dow closed nearly 0.5 per cent lower while the S&P
500 gave up more than 0.75 per cent. The NASDAQ index
ended nearly a per cent lower.
Asian
markets had another weak day weak day on interest hike
concerns and higher crude oil prices. Most major markets
corrected from the highs seen during last week. Japan
was the biggest loser, closing nearly 1.5 per cent lower.
Hong Kong gave up a per cent while Singapore, Thailand
and South Korea also closed lower.
Crude
oil prices maintained their up trend yesterday as well
and crossed $69 per barrel before closing at $68.98. Aggressive
statements yesterday by the Iranian government on the
nuclear issue led to the sustained rally. The commodity
is trading almost unchanged in early European trades today.
Large-cap
news flow
- Cipla
has raised nearly $170 million from its GDR issue, priced
at $15.39 each. The receipts would be listed in Luxembourg.
- The
excise department has made a claim of Rs557 crore on
Tata Chemicals. The company said it would contest
the claim.
- Temporary
workers are striking work at the Gurgaon plant of Hero
Honda. The company said inventory is adequate to
cover one month's sales.
- Satyam
Computers has appointed Optimation as the exclusive
representative for New Zealand to offer various IT services
in that country.
- L&T
has tied up with a New Zealand-based company to provide
petrol station technology at 77 BPCL outlets.
Mid-Cap
Action
Mid-caps
opened the day on a firm not and the index traded higher
till noon, crossing 5000 once again in mind-morning trades.
The early afternoon slide affected the smaller stocks
as well, but the losses on the mid-cap index were lower
than the frontline indices. The CNX Mid-Cap index gained
26 points to end the day at 4975. Market breadth on the
NSE was highly negative at 7 declining stocks for every
2 advancing stocks.
The
weakness in frontline tech stocks affected the smaller
stocks in the sector as well. Hexaware, NIIT Tech and
Prthvi Info were among the major losers.
Apar
Industries, SPL Limited and Nagreeka Exports were among
the major gainers in mid-caps on the NSE.
Shivalik
Global, Uttam Sugar and Media Video were among the significant
mid-cap losers on the NSE.
Mid-cap
news flow
- Pantaloon
Retail said sales for the month of March increased
nearly 70 per cent from the same month of previous year
to Rs144 crore.
- The
board of 3i Infotech would meet next week to consider
the amalgamation of SDG Software with the company.
- Elecon
Engineering said its provisional revenues for 2005-06
is at Rs445 crore as against Rs278 crore for the previous
year.
- Mphasis
BFL has cancelled the share buy back programme in
view of the open offer from EDS.
- Rajesh
Exports has received an order worth Rs178 crore
from a customer based in the UAE for designer jewellery.
The company said the same customer had placed an order
worth Rs146 crore during 2006-06.
- ORG
Informatics
has received an order worth Rs170 crore from Bharat
Electronics for implementing convergent billing system
for MTNL.
- HFCL
has completed its FCCB programme and has raised a total
of $43 million.
-
i-Flex Solutions said three banks in Chile have
selected its core banking software. Financial details
of the deal have not been disclosed.
- Aarti
Drugs has formed a JV to set up an active pharma
ingredient (API) manufacturing facility in China.
- Media
Video has acquired a real estate company along with
an ongoing project in the state of Haryana. Cost of
acquisition has not been disclosed.
- Shree
Renuka Sugars would acquire a 23 MW power plant
from another sugar company for Rs39.72 crore besides
setting up additional 15 MW co-generation capacity at
a cost of Rs30 crore. The company would expand its distillery
capacity by 60 kilolitres per day at a cost of Rs50
crore. The acquisition and expansion would be funded
through external commercial borrowings.
*Disclaimer:
The author
may have positions in some of 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.
Market:
Indices
National
Markets
Gain (+) / Loss (-)
|
SENSEX
|
11,355.73
|
-
306.82 |
| NIFTY
|
3,380.00
|
-
98.45 |
Last
Update : 12 April, 2006 16:15:16 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| ACC
|
|
|
|
911.25 |
| Bajaj
Auto |
|
|
|
2,781.10 |
| Bharti
Tele |
|
|
|
401.65 |
| BHEL
|
|
|
|
2,358.05 |
| Cipla |
730.70
|
730.70
|
675.05
|
686.45
|
| Dr
Reddys Lab |
|
|
|
1,425.25 |
| Grasim
Indus |
2,288.00
|
2,327.00
|
2,160.05
|
2,175.30 |
| Guj
Ambuja |
113.00
|
113.95
|
106.50
|
108.25
|
| HDFC
Ltd |
1,340.00
|
1,340.00
|
1,276.00
|
1,288.35
|
| HDFC
Bank Ltd |
824.00
|
824.00
|
804.00
|
810.35 |
| Hero
Honda |
858.30
|
860.00
|
828.00
|
830.25
|
| Hindalco
|
|
|
|
191.50 |
| HLL
|
279.00
|
283.50
|
272.00
|
273.70
|
| ICICI
Bank |
594.90
|
599.00
|
580.30
|
584.45
|
| Infosys |
3,198.00
|
3,202.00
|
3,065.10
|
3,075.30 |
| ITC
|
200.80
|
202.00
|
190.70
|
192.35 |
| L&T
|
2,668.00
|
2,670.00
|
2,540.00
|
2,557.65 |
| Maruti |
887.00
|
887.00
|
831.15
|
841.40
|
| NTPC
|
|
|
|
136.55 |
| ONGC
|
|
|
|
1,278.00 |
| Ranbaxy
|
470.00
|
470.00
|
448.15
|
451.05
|
| Rel
Energy |
629.50
|
636.50
|
609.00
|
615.95
|
| Reliance
|
|
|
|
828.55 |
| Satyam
|
844.40
|
844.40
|
791.00
|
798.50
|
| SBI
|
967.00
|
969.75
|
928.00
|
936.35
|
| Tata
Motors |
952.00
|
952.00
|
898.00
|
903.95
|
| Tata
Power |
|
|
|
579.50 |
| Tata
Steel |
580.00
|
590.30
|
552.55
|
559.05
|
| TCS
|
1,900.00
|
1,900.00
|
1,760.00
|
1,783.10 |
| Wipro
|
535.00
|
536.00
|
513.00
|
515.85
|
Last
Update : 12 April, 2006 16:15PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
835.10
|
858.70
|
821.10
|
828.75 |
| ACC |
915.00 |
952.80
|
907.00
|
911.75 |
| SATYAMCOMP
|
844.90
|
844.90
|
790.00
|
799.00 |
| INFOSYSTCH
|
3225.00
|
3239.90
|
3065.55
|
3075.65 |
| TCS
|
1898.20
|
1900.00
|
1763.00
|
1780.80 |
| TATASTEEL
|
580.00
|
598.75
|
552.30
|
558.50 |
| HINDALC0
|
195.00
|
202.35
|
189.10
|
191.65 |
| ITC
|
199.10
|
201.90
|
190.95
|
192.20 |
| SAIL
|
84.00
|
85.50
|
80.70
|
81.50 |
| MTNL |
207.50 |
209.30
|
194.50
|
195.85 |
| SBIN
|
968.00
|
968.00
|
932.05
|
937.85 |
| ONGC
|
1308.00
|
1315.00
|
1268.75
|
1278.45 |
| CIPLA
|
727.05
|
727.05
|
675.55
|
686.35 |
| LT
|
2670.00
|
2674.45
|
2535.25
|
2557.40 |
| TATAMOTORS
|
950.00
|
950.00
|
898.00
|
903.25 |
| MARUTI |
888.00 |
888.00
|
830.40
|
841.85 |
| VSNL
|
490.40
|
492.40
|
432.30
|
451.70 |
| RANBAXY
|
462.00
|
464.90
|
449.15
|
451.65 |
| HINDLEVER
|
281.00
|
285.00
|
272.00
|
273.55 |
| WIPRO
|
537.00
|
537.00
|
513.65
|
517.05 |
| GRASIM
|
2281.15
|
2332.00
|
2163.00
|
2176.65 |
| HEROHONDA
|
862.20
|
862.20
|
825.00
|
829.25 |
| GUJAMBCEM
|
113.10
|
113.90
|
106.60
|
108.60 |
| BAJAJAUTO
|
2839.00
|
2880.00
|
2750.00
|
2782.70 |
| HCLTECH
|
605.00
|
613.00
|
586.00
|
591.10 |
| TATACHEM
|
271.00
|
275.00
|
262.10
|
264.05 |
| DRREDDY
|
1440.10
|
1465.10
|
1410.05
|
1427.30 |
| M&M
|
650.00
|
650.00
|
615.25
|
620.85 |
| REL
|
628.25
|
636.45
|
610.05
|
616.55 |
| HDFC
|
1320.00
|
1325.00
|
1275.50
|
1286.35 |
| ICICIBANK
|
592.20
|
599.00
|
580.00
|
582.55 |
| ZEETELE
|
249.00
|
250.00
|
227.40
|
237.15 |
| TATAPOWER
|
590.10
|
603.90
|
575.00
|
579.10 |
| IPCL
|
263.00
|
268.95
|
253.75
|
256.05 |
| ABB
|
3201.00
|
3248.00
|
3082.25
|
3119.45 |
| GAIL
|
310.15
|
319.85
|
303.50
|
305.00 |
| NATIONALUM
|
315.00
|
321.90
|
304.55
|
307.35 |
| BHEL
|
2410.00
|
2414.40
|
2325.00
|
2341.45 |
| HDFCBANK
|
824.00
|
825.00
|
802.25
|
809.00 |
| BHARTI
|
405.00
|
410.85
|
395.00
|
396.55 |
| PNB |
448.00 |
457.95
|
440.55
|
446.50 |
| JETAIRWAYS
|
1054.00
|
1055.00
|
980.15
|
995.15 |
| SUNPHARMA
|
856.20
|
876.00
|
845.40
|
856.10 |
| DABUR |
123.00 |
132.80
|
123.00
|
128.90 |
| BPCL
|
442.25
|
469.00
|
436.10
|
459.40 |
| GLAXO |
1436.10 |
1515.00
|
1436.10
|
1455.80 |
| TATATEA
|
875.75
|
897.00
|
851.30
|
861.55 |
| HINDPETRO
|
325.00
|
328.80
|
319.50
|
321.60 |
| ORIENTBANK
|
236.50
|
240.90
|
235.00
|
235.55 |
| SCI
|
164.00
|
167.50
|
160.70
|
162.30 |
Last
Update : 12 April, 2006
|
