|
Global cues were better for the day as most global markets
recovered after crude oil prices corrected yesterday.
Large IT companies TCS and Wipro announced results, which
though marginally ahead of expectations, were not very
exciting.
As
expected, markets opened on a strong note and the Sensex
surged nearly 150 points in opening trades. Unable to
hold the levels, the indices declined and by mid-morning
had given up all their gains.
The
sharp fall of the rupee against the US dollar spooked
the markets on worries that overseas investment flows
would slow down further. The rupee declined below Rs47
to a dollar for the first time since 2003.
The
indices slipped and by early afternoon both indices were
trading with losses of over a per cent each. From then
on there was no recovery and the Sensex slipped below
10000 in the last half hour. The index finally managed
to close marginally above that level.
Sensex
closed with losses of 219 points at 10007 and the Nifty
lost 61 points to close at 2933. Nifty July futures ended
at a discount of 20 points to the spot index.
Tech
stocks opened with gains as initial reaction to the results
of TCS and Wipro were positive. But the results did not
exceed expectations by a wide margin and there is considerable
pressure on margins, which led to a sell-off in some of
the tech counters. Even the fall in rupee may not help
the companies for sometime as they have taken forward
covers at higher rates.
Wipro
was the biggest loser among tech stocks, closing more
than 5.5 per cent lower. Satyam Computer lost close to
5.5 per cent.
TCS
lost over 4 per cent while Infosys and HCL Technologies
lost around 1.5 per cent each.
Auto
companies continued to tumble despite the correction in
crude oil prices. M&M lost another 6.5 per cent while
Tata Motors declined nearly 4.5 per cent. Maruti gave
up close to 3.5 per cent.
Dabur,
which announced good results today, was the biggest loser
among index stocks. The stock declined substantially by
nearly 8 per cent.
Engineering
stocks also remained under pressure with Siemens and ABB
declining nearly 4.5 per cent each. Suzlon gave up all
of its gains from yesterday and closed 4.5 per cent lower.
Reliance Industries lost over 2 per cent while IPCL closed
nearly 5 per cent lower.
Among
metals, Tata Steel lost 3.5 per cent and SAIL declined
1.5 per cent. Copper stock Sterlite ended with massive
losses of 9.5 per cent.
ACC
was the other big loser, closing nearly 4.5 per cent lower.
There
were only six gainers among Nifty stocks, led by some
oil and gas stocks, which ironically gained as crude oil
prices declined. Gail India was the big gainer, closing
3.5 per cent higher. ONGC added over 2 per cent.
Jet
Airways finally managed a modest recovery and ended 1.5
per cent higher.
OBC,
Nalco and Ranbaxy were the other three gainers.
Global
markets / crude oil
US markets finally showed some signs of a recovery yesterday,
on strong corporate results and a decline in oil prices.
Major companies like Coca Cola and United Technologies
came out with encouraging results during market hours
while IBM announced good numbers after the markets closed.
The
Dow closed with gains of close to 0.5 per cent while the
S&P 500 ended with more modest gains of 0.2 per cent.
The NASDAQ index closed with gains of over 0.25 per cent.
Most
Asian markets closed with gains today following the US
recovery and lower oil prices. Japan gained nearly 0.5
per cent after losing for five straight sessions. Hong
Kong, Malaysia and Singapore ended with gains of around
0.35 per cent each. Thailand and South Korea closed with
marginal gains.
Among
the losers, Shanghai slipped nearly 2.5 per cent and Indonesia
lost nearly 0.5 per cent.
European
markets opened firm and are holding on to their gains
in early afternoon trading. Major indices are trading
with gains of between 0.15 and 0.3 per cent each.
Crude
oil prices declined yesterday on hopes of an improvement
in the Middle East situation. Near month NYMEX futures
settled nearly 3 per cent lower at $73.64 per barrel yesterday.
The commodity has slipped further and is trading modestly
above $73 per barrel in European trades today.
Large-cap
news flow
- Ashok
Leyland has signed an agreement to acquire Czech
commercial vehicle manufacturer Avia for an undisclosed
amount. The company said the acquisition, subject to
unspecified conditions, is expected be completed by
the end of next month. Avia was previously owned by
Daewoo of South Korea, but was sold to an investment
company following Daewoo's collapse.
- Ranbaxy
has acquired the generic business of Glaxo in Spain
for an undisclosed amount. The company said the Spanish
generics market is worth €600 million per annum
and is growing at 25 per cent.
- Maruti
may consider a price hike for its models in the near
future, according to management. The company today launched
an upgraded version of its B-segment model WagonR, which
would also be available with an LPG option.
- HCL
Technologies has won an order to supply software
for the 787 passenger aircraft project of Boeing. The
order has been placed by a major contractor of Boeing.
- Wipro
said it acquired three overseas companies and their
subsidiaries during the April-June 2006 quarter. cMango
was acquired for Rs88.4 crore and possible future payments
of $12 million depending on financial performance of
the acquired company. RetailBox and Enabler were acquired
for Rs242.5 crore and future payouts of €11 million
while Saraware was bought for Rs97.5 crore and earn-out
of €7 million.
- Suzlon
Energy has received an order from a Chinese company
for supply of wind energy equipment with a total capacity
of 40 MW. Value of the order has not been disclosed.
- Ranbaxy
has licensed a psychotherapeutic generic drug to a Canadian
company. Patent for this drug expired this month and
the drug would be marketed under Ranbaxy's brand.
Mid-Cap
Action
Mid-caps and small caps also opened on a positive
note, before slipping further. Their fall was much worse
than the large caps for the second straight day as most
of the stocks came under pressure.
The CNX Mid-Cap index ended with losses of 95 points,
or 2.55 per cent, to end the day at 3639. BSE mid-cap
index lost 2.99 per cent and the BSE small cap index gave
up 3.50 per cent.
Jagran Prakashan, Khandwala Securities, Nilkamal Plastics,
South East Asia Marine and Macmillan India were among
the other mid-cap gainers.
Consolidated Finvest, Kei Industries, Hyderabad Industries,
Karur Vysya Bank, Amar Remedies, Nelco, Rolta, Dhampur
Sugar and Onward Technologies were among the major mid-cap
losers.
Mid-cap news flow
- German cement major Heidelberg would acquire a majority
stake in Mysore Cements. Heidelberg would be
issued 6.65 crore new equity shares at a price of Rs54
per share. Existing promoters would sell a part of their
holdings to Heidelberg at a price of Rs68.5, including
non-compete premium. Heidelberg would also make an open
offer for an additional 20 per cent stake at Rs58 per
share.
- Vijaya Bank would raise Rs250 crore from a
tier-II bond issue carrying a coupon rate of 9.25 per
cent per annum.
- Prajay Engineers has raised $60 million from
a FCCB issue. The bonds would be listed in Singapore
and would be converted at a price of Rs208 per share.
- The board of Jagran Prakashan would meet later
this month to consider a bonus issue.
- Pratappur Sugar would issue 38 lakh convertible
warrants to promoter company Bajaj Hindustan. The warrants
have a conversion price of Rs500 per share of face value
Rs10 each.
- Morepen Laboratories said its corporate debt-restructuring
(CDR) plan involving total liabilities of Rs750 crore
to 30 different banks has been approved by a CDR empowered
group. Terms of the CDR have not been disclosed.
- The board of Auto Corporation of Goa would
meet next week to consider a rights issue.
- Kirloskar Brothers has received an order worth
Rs48 crore from NTPC for supplying equipment for a super
thermal power plant.
- The board of McLeod Russell would meet next
week to consider an overseas issue to raise resources.
- Biocon has entered into an agreement with Bayer
under which the latter would market the human insulin,
developed and manufactured by Biocon, in China. The
product is expected to be launched within three years
after getting regulatory approval. The collaboration
may also be expanded later to cover other countries.
- Biocon has received regulatory permission to
launch a cancer drug in the domestic market. This is
the first proprietary product to be marketed by the
company. The company has also started clinical trials
to establish oral delivery technology, acquired from
US company Nobex.
- The board of JK Industries has approved the
issue of 36 lakh equity shares to Fenner India, a company
belonging to the promoter group, for Rs37.8 crore.
- Punj Lloyd has received an order worth $14.15
million from the UAE for laying cables.
- ANG Auto has signed an agreement with Ashok
Leyland for manufacture and supply tractor-trailers
for a period of 5 years. The company said it is setting
up a unit in Uttaranchal with a capacity
of 6000 units per annum, in collaboration with a Chinese
company. Potential revenues over the agreement period
is over Rs1,500 crore.
- GV Films would raise up to Rs300 crore from
a rights issue. The company has also announced a consolidation
of stock in the ratio of 1 share of Rs10 for every 10
shares of face value Re1.
*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
|
10,007.34
|
-
219.44 |
| NIFTY
|
2,932.75
|
-
60.90 |
Last
Update : 19 July, 2006 16:00:00 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| ACC
|
824.00
|
834.90
|
776.50
|
779.95
|
| Bajaj
Auto |
2,500.05
|
2,537.90
|
2,350.10
|
2,390.70
|
| Bharti
Tele |
364.95
|
365.90
|
346.10
|
353.05
|
| BHEL
|
1,836.00
|
1,849.90
|
1,742.05
|
1,759.25 |
| Cipla |
220.00
|
221.00
|
211.10
|
212.45
|
| Dr
Reddys Lab |
|
|
|
1,220.00 |
| Grasim
Indus |
|
|
|
1,915.40 |
| Guj
Ambuja |
103.50
|
104.90
|
98.40
|
99.55
|
| HDFC
Bank Ltd |
715.00
|
720.00
|
693.10
|
698.25
|
| HDFC
Ltd |
|
|
|
1,063.10 |
| Hero
Honda |
|
|
|
714.15 |
| Hindalco
|
162.50
|
164.35
|
154.05
|
155.30
|
| HLL
|
233.05
|
234.45
|
222.50
|
224.05 |
| ICICI
Bank |
|
|
|
467.00 |
| Infosys |
|
|
|
1,605.85 |
| ITC
|
|
|
|
167.45 |
| L&T
|
|
|
|
2,049.40 |
| Maruti |
755.90
|
766.00
|
719.95
|
723.25
|
| NTPC
|
113.70
|
114.70
|
109.00
|
110.90
|
| ONGC
|
1,052.00
|
1,070.00
|
1,042.90
|
1,062.30 |
| Ranbaxy
|
329.80
|
331.00
|
323.00
|
325.90
|
| Rel
Energy |
425.00
|
430.25
|
407.30
|
411.45
|
| Reliance
|
1,015.00
|
1,020.00
|
976.50
|
982.10
|
| Satyam
|
702.00
|
707.80
|
651.35
|
657.30 |
| SBI
|
708.00
|
711.75
|
684.15
|
689.50 |
| Tata
Motors |
698.00
|
700.00
|
655.00
|
658.05
|
| Reliance
Comm Ventures Ltd |
250.00
|
252.15
|
234.20
|
238.15 |
| Tata
Steel |
484.00
|
492.00
|
455.50
|
458.95 |
| TCS
|
1,875.00
|
1,899.65
|
1,748.00
|
1,758.10
|
| Wipro
|
490.00
|
498.00
|
452.00
|
458.30
|
Last
Update : 19 July, 2006 16:26 PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
1010.00
|
1029.90
|
977.15
|
983.05 |
| SATYAMCOMP
|
699.00
|
707.40
|
652.10
|
656.90 |
| TCS
|
1882.00
|
1895.00
|
1745.55
|
1757.55 |
| ACC |
830.00 |
835.00
|
776.50
|
780.70 |
| INFOSYSTCH
|
1661.00
|
1661.00
|
1597.10
|
1604.55 |
| TATASTEEL
|
488.00
|
490.90
|
456.55
|
460.20 |
| TATAMOTORS
|
699.00
|
700.00
|
655.35
|
659.20 |
| WIPRO |
491.15 |
498.70
|
452.00
|
458.35 |
| SUZLON
|
980.00
|
988.60
|
909.00
|
922.45 |
| ONGC
|
1044.00
|
1071.00
|
1040.10
|
1062.90 |
| MARUTI
|
755.15
|
763.95
|
719.95
|
723.80 |
| GRASIM
|
1985.00
|
1998.80
|
1904.00
|
1914.40 |
| ITC |
172.45 |
174.00
|
166.35
|
167.50 |
| GUJAMBCEM
|
103.20
|
104.75
|
98.55
|
99.50 |
| LT |
2098.95 |
2116.90
|
2020.00
|
2048.70 |
| M&M
|
543.20
|
554.00
|
502.00
|
510.85 |
| SBIN
|
710.00
|
714.75
|
684.50
|
690.50 |
| VSNL
|
357.70
|
362.70
|
337.40
|
343.25 |
| IPCL |
259.85 |
259.90
|
239.10
|
241.40 |
| SIEMENS
|
875.00
|
890.00
|
800.00
|
824.00 |
| SAIL
|
70.80
|
71.70
|
67.60
|
68.75 |
| ZEETELE
|
261.40
|
269.00
|
248.40
|
252.05 |
| HINDALC0
|
162.00
|
163.90
|
154.05
|
155.40 |
| BAJAJAUTO
|
2518.30
|
2550.00
|
2380.50
|
2389.85 |
| BHEL
|
1813.10
|
1850.05
|
1742.10
|
1755.90 |
| RANBAXY
|
325.20
|
330.00
|
323.05
|
325.95 |
| DABUR |
147.20 |
149.80
|
131.75
|
134.05 |
| HINDLEVER
|
233.10
|
233.95
|
222.15
|
223.70 |
| HCLTECH
|
551.90
|
559.90
|
523.00
|
540.55 |
| CIPLA |
219.00 |
222.80
|
211.10
|
212.50 |
| HDFC
|
1080.00
|
1115.50
|
1041.00
|
1063.25 |
| BHARTIARTL
|
364.95
|
365.85
|
345.40
|
353.90 |
| DRREDDY
|
1249.00
|
1259.00
|
1202.05
|
1217.80 |
| ICICIBANK
|
476.10
|
481.90
|
465.10
|
467.75 |
| ABB
|
2485.00
|
2498.00
|
2330.00
|
2356.55 |
| HDFCBANK
|
712.00
|
719.00
|
692.10
|
697.20 |
| MTNL
|
143.90
|
143.90
|
135.75
|
136.30 |
| REL
|
438.00
|
438.00
|
405.00
|
410.80 |
| GAIL
|
232.50
|
242.10
|
229.05
|
238.75 |
| HEROHONDA
|
725.00
|
734.00
|
708.00
|
713.90 |
| TATAPOWER
|
491.00
|
491.00
|
471.50
|
478.80 |
| PNB
|
307.00
|
310.00
|
301.10
|
303.45 |
| NATIONALUM
|
215.00
|
215.00
|
207.50
|
212.00 |
| JETAIRWAYS
|
499.00
|
503.40
|
487.00
|
498.90 |
| SUNPHARMA
|
759.50
|
760.00
|
735.00
|
743.70 |
| TATATEA
|
745.00
|
745.00
|
700.10
|
705.80 |
| ORIENTBANK
|
144.90
|
160.00
|
142.00
|
145.65 |
| HINDPETRO
|
211.00
|
214.00
|
206.05
|
207.15 |
| GLAXO
|
1011.10
|
1019.00
|
978.25
|
980.15 |
| BPCL
|
312.00
|
318.00
|
301.00
|
303.15 |
Last
Update : 19 July, 2006 16:0
|
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