|
All the optimism built up after the Infosys results have
completely vanished as weakness in global equity markets
continue. The indices, which were trying to resist considerable
falls last week and managed to outperform most global
indices, finally came crumbling down.
Markets
opened weak as expected, but most traders would have underestimated
the possible extent of losses by the end of the day. Till
early afternoon it was a gradual decline for the indices,
but the afternoon fall was severe. The big heavyweights
led the decline and there was no recovery from such a
fall.
Sensex
closed with losses of 385 points at 10293 and the Nifty
lost 116 points to close at 3007. Nifty July futures ended
at a discount of 24 points to the spot index.
The
afternoon fall was led by heavyweight ONGC, on fears that
rising crude oil prices would bring additional subsidy
burden on the company. Though the company would benefit
from high oil prices as a producer, subsidy sharing may
in fact be higher than previous year. The stock finally
ended more than 7 per cent lower.
Reliance
Industries also faced some pressure and closed more than
3.5 per cent lower.
Auto
stocks have been hard hit ever since crude oil started
the current surge. Today was no exception as auto stocks
were among the biggest losers in the afternoon. M&M
lost 7 per cent, Tata Motors gave up 6 per cent and Maruti
ended 5 per cent lower.
Suzlon
Energy, one of the big outperformers in this pull back
rally, crashed 10 per cent and closed below Rs1,000 once
again. The stock was the biggest losers among index stocks.
Jet
Airways slipped below Rs500 for the first time. The surge
in oil prices and another round of price war in the industry
are feared to dent the airline's profitability further.
The stock lost more than 8 per cent today.
Among
telecom stocks, Reliance Communications was the big losser.
The stock really crumbled and lost nearly 8 per cent to
close below Rs250. VSNL lost more than 4.5 per cent and
MTNL declined 4 per cent.
HDFC
continued its slide and lost another 5.5 per cent. SBI
lost 4 per cent while HDFC Bank ended 3 per cent lower.
ICICI Bank declined nearly 2 per cent.
Satyam
was the biggest loser among tech stocks, closing nearly
5.5 per cent lower. Infosys lost 2.5 per cent while Wipro
ended more than 2 per cent lower. TCS was trading firm
till afternoon, but closed nearly a per cent lower.
Reliance
Energy was another big loser among index stocks and closed
nearly 6 per cent lower.
Dr.
Reddy's was the worst performer among pharma stocks, closing
nearly 6 per cent lower. Ranbaxy gave up 4.5 per cent.
Tata
Power was the sole gainer among Nifty stocks, closing
nearly a per cent higher.
Global
markets / crude oil
Asian markets were weak following the continuing decline
in US. Concerns over tension in the Middle East and record
oil prices affected the sentiment today as well. Singapore
was the biggest loser, closing more than 1.8 per cent
lower. Indonesia declined more than 1.5 per cent while
Thailand and Malaysia lost over 1.2 per cent each.
Shanghai
was the lone gainer, closing more than a per cent higher.
Japan and South Korea were closed today.
European
markets are also weak today, but are doing much better
than the Asian markets. Major indices are trading with
losses of between 0.3 to a 0.6 per cent each.
After
setting new all-time high of over $78 per barrel on Friday,
crude oil prices have corrected today on profit booking
by funds. Near month NYMEX futures is trading below $76
in European trades today.
Large-cap
news flow
- The
Japanese JV of Ranbaxy has launched 2 new drugs
- an antibiotic and an anti-fungal, in Japan. The 2
drugs have a combined market size of $700 million in
that country.
- Satyam
Computer would absorb the top management team of
a specialised UK consultancy to expand its media and
entertainment services.
- The
board of ICI India would consider a share buy
back scheme at its meeting next week. The company is
planning to buy back shares at a price of up to Rs350
per share.
Mid-Cap
Action
Mid-caps
and small caps resisted the decline in morning trades
but gave up the fight by noon. Most of the stocks which
had gained during the previous week came under profit
booking and lost ground. Even then losses on the mid-cap
and small-cap indices were lower than the frontline indices.
The
CNX Mid-Cap index ended with losses of 93 points, or 2.39
per cent, to end the day at 3785. BSE mid-cap index lost
2.02 per cent and the BSE small cap index gave up 2.18
per cent.
Deepak
Fertilisers, Bartronics, Godavari Power and Ispat, Visaka
Industries, Cyber Media, Shyam Telecom, Onward Technologies,
Suven Lifesciences and Emkay Stock & Share were among
the other mid-cap gainers.
Two
of the mid-cap IT stocks faced heavy pressure today. Geometric
Software closed 8.5 per cent lower while Aztec Software
ended with losses of 8 per cent.
Micro
Inks, TV Today, Nova Petro and Nilkamal Plastics were
among the major mid-cap losers.
Mid-cap
news flow
- An
overseas subsidiary of Glenmark Pharma has entered
into an agreement with a subsidiary of Merck to jointly
develop and market 8 generic dermatological drugs in
Europe. Glenmark said the drugs would be launched between
2007 and 2010 and have a combined market potential of
$225 million.
- IL&FS
Investment Managers
has been appointed as the fund managers of a non-conventional
energy fund being set up by government of Maharashtra.
The fund would have a corpus of Rs418 crore.
-
Crew BOS has been allotted 30 acres of land for
expanding its fashion accessories business and a new
unit for closed shoes.
-
Panacea Biotech
has started commercial production at its new manufacturing
facility for soft gelatine capsules.
- ISMT
would raise up to $75 million from an overseas issue
or through the QIP route in the domestic markets. Terms
of the issue would be finalised later.
- Genus
Overseas has raised $7.5 million from an issue of
convertible bonds, convertible in 2011 at a price of
Rs240 per share.
- UTV
has denied media reports that it is in talks to sell
a 30 per cent stake in an associate company to Walt
Disney.
- Talbros
Automotive has deferred the preferential issue of
10 lakh convertible warrants at a price of Rs95 per
share.
- Indo-Tech
Transformers has received a new order worth Rs33
crore from Tamil Nadu for supply of transformers.
- Western
India Shipyard has won various ship repairing orders
worth a total of Rs7 crore.
- The
board of Educomp would meet next week to consider
an
overseas issue to raise additional resources.
- Suven
Lifesciences has received an order worth Rs20 crore
for custom synthesis of a drug which is in clinical
trial.
-
Radha Madhav has received an order worth Rs40
crore from Karnataka Milk Federation for supplying milk
bag packaging. The company said it is in the process
of setting up a new unit for high-end packaging material.
*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
|
10,293.22
|
-385.00
|
| NIFTY
|
3,007.55
|
-115.80
|
Last
Update : 17 July, 2006 16:00:00 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| ACC
|
|
|
|
820.25 |
| Bajaj
Auto |
2,635.00
|
2,639.00
|
2,511.05
|
2,520.90
|
| Bharti
Tele |
|
|
|
353.75 |
| BHEL
|
1,932.00
|
1,932.00
|
1,835.10
|
1,852.55
|
| Cipla |
221.50
|
222.00
|
212.10
|
214.20
|
| Dr
Reddys Lab |
1,300.00
|
1,300.00
|
1,210.00
|
1,228.30 |
| Grasim
Indus |
|
|
|
1,942.05 |
| Guj
Ambuja |
|
|
|
104.20 |
| HDFC
Bank Ltd |
730.00
|
730.00
|
701.00
|
706.85 |
| HDFC
Ltd |
1,135.00
|
1,135.00
|
1,072.00
|
1,082.05 |
| Hero
Honda |
|
|
|
709.45 |
| Hindalco
|
173.00
|
175.85
|
166.30
|
166.90
|
| HLL
|
241.95
|
241.95
|
228.10
|
230.05 |
| ICICI
Bank |
|
|
|
475.80 |
| Infosys |
|
|
|
1,604.85 |
| ITC
|
|
|
|
172.45 |
| L&T
|
2,189.50
|
2,194.00
|
2,110.00
|
2,126.95 |
| Maruti |
785.00
|
793.50
|
748.15
|
754.05
|
| NTPC
|
118.30
|
118.30
|
112.00
|
113.95
|
| ONGC
|
1,099.90
|
1,118.70
|
1,021.00
|
1,028.35
|
| Ranbaxy
|
334.50
|
334.50
|
317.10
|
320.40
|
| Rel
Energy |
443.00
|
443.95
|
417.00
|
422.10
|
| Reliance
|
1,062.00
|
1,068.00
|
1,027.00
|
1,031.50
|
| Satyam
|
717.00
|
717.00
|
678.05
|
682.90
|
| SBI
|
728.25
|
736.25
|
699.00
|
706.15
|
| Tata
Motors |
740.00
|
740.00
|
692.00
|
696.85 |
| Reliance
Comm Ventures Ltd |
280.25
|
280.25
|
246.30
|
248.25
|
| Tata
Steel |
506.00
|
509.40
|
490.00
|
493.40 |
| TCS
|
|
|
|
1,859.75 |
| Wipro
|
|
|
|
476.70 |
Last
Update : 17 July, 2006 16:26 PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
1058.00
|
1068.40
|
1027.75
|
1031.40
|
| INFOSYSTCH
|
1641.00
|
1645.70
|
1600.00
|
1605.25 |
| SATYAMCOMP
|
718.05
|
718.05
|
679.15
|
682.90 |
| TCS
|
1884.80
|
1914.00
|
1851.00
|
1859.00 |
| TATASTEEL
|
512.00
|
512.00
|
492.10
|
494.45
|
| ONGC
|
1101.00
|
1106.70
|
1020.50
|
1028.45
|
| TATAMOTORS
|
739.80
|
739.80
|
691.00
|
695.35
|
| ACC |
834.00 |
841.80
|
815.25
|
821.10
|
| SUZLON
|
1024.00
|
1024.00
|
904.05
|
925.20 |
| GUJAMBCEM
|
105.05
|
108.40
|
103.10
|
104.05
|
| MARUTI
|
790.00
|
795.00
|
752.55
|
755.25
|
| BHEL
|
1919.00
|
1925.00
|
1835.00
|
1853.25
|
| VSNL |
382.00 |
383.90
|
365.10
|
366.90 |
| WIPRO
|
487.95
|
492.00
|
475.00
|
478.70
|
| LT
|
2194.40
|
2194.40
|
2115.25
|
2129.50 |
| ITC
|
175.00
|
176.50
|
171.20
|
172.10
|
| SBIN |
730.00 |
736.00
|
701.00
|
708.30
|
| BAJAJAUTO
|
2630.00
|
2650.00
|
2512.50
|
2521.90 |
| SAIL
|
74.00
|
74.60
|
71.50
|
72.05
|
| HINDALC0
|
176.00
|
176.00
|
166.25
|
166.90
|
| M&M
|
582.00
|
582.00
|
535.00
|
545.60
|
| RANBAXY
|
339.70
|
339.70
|
317.00
|
320.25
|
| HDFC
|
1130.00
|
1130.00
|
1071.00
|
1081.30
|
| HINDLEVER
|
241.00
|
241.00
|
228.30
|
230.50
|
| SIEMENS
|
910.00
|
923.00
|
865.25
|
870.35 |
| HEROHONDA
|
715.00
|
720.00
|
706.00
|
709.75
|
| HDFCBANK
|
730.00
|
730.00
|
702.25
|
707.45
|
| ZEETELE
|
268.00
|
271.40
|
260.50
|
264.00
|
| DRREDDY
|
1299.70
|
1299.70
|
1210.00
|
1228.35 |
| GRASIM
|
1965.00
|
1970.00
|
1915.50
|
1942.00
|
| IPCL |
264.40 |
264.40
|
255.00
|
256.25
|
| BHARTIARTL
|
362.00
|
362.00
|
351.00
|
355.45
|
| HCLTECH
|
558.50
|
558.50
|
544.05
|
549.20 |
| CIPLA
|
220.00
|
222.00
|
213.00
|
214.35
|
| MTNL
|
150.20
|
150.20
|
141.25
|
142.35
|
| GAIL |
248.00 |
248.00
|
238.00
|
239.15
|
| ABB
|
2542.00
|
2559.80
|
2470.00
|
2484.70 |
| ICICIBANK
|
500.00
|
500.00
|
475.20
|
477.25 |
| TATAPOWER
|
478.00
|
489.90
|
464.60
|
482.25
|
| REL
|
445.00
|
446.00
|
419.00
|
421.60
|
| JETAIRWAYS
|
540.00
|
540.00
|
485.00
|
494.65 |
| NATIONALUM
|
217.00
|
221.00
|
211.50
|
213.10
|
| PNB
|
320.00
|
321.55
|
308.05
|
309.45 |
| DABUR
|
139.60
|
147.70
|
139.60
|
144.40
|
| TATATEA
|
715.00
|
729.00
|
697.00
|
706.05 |
| GLAXO
|
1001.10
|
1028.85
|
982.15
|
1006.10 |
| SUNPHARMA
|
757.00
|
757.00
|
725.00
|
730.20
|
| BPCL |
316.00 |
316.00
|
301.00
|
303.85
|
| ORIENTBANK
|
153.70
|
154.50
|
146.50
|
149.00
|
| HINDPETRO
|
213.00
|
214.00
|
210.20
|
211.10 |
Last
Update : 17 July, 2006 16:0
|
|
