|
The bull momentum continues unabated and the Sensex touched the psychologically
important level of 6900 for the first time ever before closing at yet another
all time high. The 30-stock Sensex has gained close to 5 per cent since last
Monday when the budget was presented. Sensex closed at 6879, up 29 points
and the Nifty at 2160, a gain of 12 points. The Nifty futures discount to
the spot index widened to 10 points.
Crude
ended higher at $53.78 on Friday boosted by bullish statements from oil cartel
OPEC. On Friday, US markets rallied on strong job data for the month of February
to their highest levels since the tech bubble burst in 2001. The Dow Industrial
is very close to the important mark of 11,000. Indian ADR's had a good day
with HDFC Bank gaining more than 3 per cent. Wipro and Tata Motors added 2
per cent each while Infosys and Satyam ended in the green. ICICI Bank remained
unchanged while MTNL lost more than a per cent after Thursday's gain of 4
per cent. The
super heavyweights ONGC and Reliance led today's action from the front. After
being under performers so far, both these stocks with large weights on the
indices are catching up. ONGC has received government permission to invest
in the Sakhalin-III oil field in Russia. Reliance plans to open at least 2000
retail fuel outlets by March 2006, while indicating that exports may be lower
on increased domestic demand. Reliance is on the look out for oil assets in
West and Central Africa. ONGC gained more than a per cent while Reliance gained
more than 2 per cent. Bank
stocks were on fire with the BSE Bank Index hitting an all time high today.
SBI surged more than 2 per cent to another 52 week high before closing with
gains of close to 2 per cent. Punjab National Bank continued its upsurge as
its public issue opened today to a good response. Traders are taking advantage
of the arbitrage between the issue price and futures, which is at a substantial
premium to the issue price. Oriental
Bank of Commerce announced its public issue at an indicated 20 per cent discount
to the market price. The stock gained more than 12 per cent as this stock
also offers arbitrage opportunity like PNB. But who is buying the futures
at huge premiums when fresh supply of shares is coming to the market at a
discount? Possibly a section of the market is expecting a strong rally in
these stocks after the issue, as these issues will be heavily oversubscribed.
Then again, this beats logic as these are listed stocks and not a fresh issue
where the initial momentum can carry the stock for some time. Most
other mid-cap PSU banks, which are also present in the F&O segment, rose
smartly. Canara Bank, Bank of India, Bank of Baroda and Andhra Bank gained
substantially. Some of these banks are planning public issues to meet capital
adequacy norms. Private
sector banking major HDFC Bank and its parent HDFC were also significant gainers
today on the back of strong performance by HDFC ADR. ICICI Bank, which opened
its sponsored ADR issue today, declined towards close after trading above
Rs400 till mid afternoon. Tech
stocks had a mixed day with Wipro losing ground while Infosys and TCS managed
gains. Foreign brokerage CLSA has put an out performer call on TCS with a
price target of Rs1525. Legendary investor Warren Buffet is of the opinion
that US dollar can weaken much more as US deficits continue to remain high.
A weakening US dollar is bad news for Indian IT companies. FMCG
major HLL was the biggest loser on the indices with the stock losing more
than 3 per cent. FMCG sector is still not able to impress the market as better
sector stories are available. Auto
stocks lost ground on the back of increasing oil prices and the expected increase
in petroleum prices in the domestic market. Tata Motors reported a 20 per
cent year on year growth in vehicle sales for the month of February. However,
February sales was down as compared to January as customers deferred purchase
decisions anticipating an excise duty cut in the budget. Tata Motors has launched
new models of buses and coaches in both diesel and CNG versions. Telecom
major Bharti and cement heavyweights ACC and Gujarat Ambuja were the other
major losers among major stocks. Mid-cap
action
Essar Oil announced
plans to set up 2000 retail fuel outlets by 2006 and 5000 outlets by 2009.
Its long delayed oil refinery in Gujarat is expected to go on stream next
year. The stock gained more than 5 per cent. Standalone
refiners MRPL and Chennai petroleum also gained as refinery margins are expected
to improve on higher oil prices. There is also talk of the Venezuelan government
taking a 10 per cent stake in MRPL. Natural
Gas players GAIL and IGL gained on expectations of CNG demand going up as
crude prices continue scaling new highs. GAIL has indicated that the potential
reserves in the Myanmar gas block where it hold a 10 per cent stake may be
revised upwards Liquor
major McDowell, part of the UB Group, was locked at 10 per cent upper circuit
as UB received High Court approval for settlement with Kishore Chabria for
control of Herbertsons, the third largest liquor player in the country. UB
has also made an open offer for Shaw Wallace, the second largest liquor company.
If successful, the McDowell-Shaw Wallace-Herbertsons combine will be the world's
second largest liquor group by volume though doubts remain over corporate
governance and unrelated diversifications. Old
mid-cap tech favorite SSI was locked at the 20 per cent upper circuit. JCT
Ltd gained close to 20 per cent on news that the company is trying to sell
its steel division while Gujarat Alkalies, which saw some block deals during
the day, saw good demand. Esab India gained smartly on vastly improved results
reported today. Power
transmission equipment manufacturer Kalpataru Power gained on hopes of business
growth from increased focus on electrification by the government. Telecom
cable manufacturer Vindhya Telelinks was another major gainer. The
widening gap between Nifty futures and the spot index indicate a possible
correction around the corner. Talk about domestic funds  sitting
on piles of cash raised in IPO's are adding to the momentum and delaying the
correction. A correction is very much desirable after such a strong rally
for the health of the market.
*Disclaimer:
The author doesn't 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.
Other
articles by Rex Mathew List
of general reports on markets List
of general reports on finance Market:
Indices
National
Markets
Gain (+) / Loss (-)
|
SENSEX
|
6,878.98
|
+29.50
|
| NIFTY
|
2,160.10
|
+11.95
|
Last
Update : 7 March, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| RELIANCE
ENR* |
569.25
|
595.00
|
562.00
|
587.85 |
| HDFC
BANK LT |
589.70
|
605.00
|
586.25
|
601.15 |
| RELIANCE*
|
574.00
|
589.10
|
573.00
|
585.55 |
| HOUSING
DEVELOPMENT FINANCE CO |
794.90
|
811.80
|
788.00
|
802.85 |
| STATE
BANK OF INDIA |
716.90
|
734.95
|
715.15
|
726.50 |
| TATA
IRON AND STEEL CO. LTD. |
431.00
|
437.65
|
430.00
|
434.95 |
| ONG
CORP LTD |
902.10
|
913.00
|
895.00
|
901.90 |
| RANBAXY
LABORATORIES LTD. |
1,034.00 |
1,037.30
|
1,027.15
|
1,034.10 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,238.00
|
2,261.90
|
2,222.10
|
2,252.85 |
| HINDALCO
IN |
1,404.00
|
1,434.00
|
1,404.00
|
1,415.60 |
| SATYAM
COMP |
404.00
|
409.00
|
403.20
|
405.25 |
| ICICI
BANK L |
398.00
|
403.50
|
390.15
|
399.00 |
| WIPRO
LTD. |
709.00
|
729.00
|
705.00
|
721.55 |
| DR.REDDY'S
LABORATORIES LTD. |
732.00
|
732.00
|
720.50
|
724.30 |
| HINDUSTAN
LEVER LTD. |
150.65
|
150.65
|
142.50
|
144.95 |
| MARUTI
UDYOG |
483.40
|
485.75
|
466.00
|
469.55 |
| BHARTI
TELE |
236.00
|
236.00
|
228.90
|
230.15 |
| TATA
MOTORS |
492.00
|
492.00
|
475.10
|
478.95 |
| LARSEN
& TOUBRO LTD. |
1,124.00
|
1,126.90
|
1,094.00
|
1,100.80 |
| BHEL
|
870.00
|
870.00
|
850.55
|
850.90 |
| ASSOCIATED
CEMENT COMPANIES LT |
376.10
|
377.90
|
366.60
|
368.60 |
| CIPLA
LTD. |
274.00
|
274.00
|
265.50
|
266.35 |
| ZEE
TELEF LT |
144.60
|
147.70
|
141.45
|
143.80 |
| I
T C LTD |
1,369.90
|
1,385.00
|
1,350.00
|
1,352.55 |
| TATA
POWER |
404.70
|
406.90
|
395.60
|
401.00 |
| HINDUSTAN
PETROLEUM CORP. LTD. |
339.00
|
341.90
|
335.00
|
336.60 |
| GRASIM
INDUSTRIES LTD. |
1,391.00
|
1,391.00
|
1,358.00
|
1,369.55 |
| HEROHONDA
M |
565.00
|
566.00
|
560.00
|
560.00 |
| Bajaj
Auto |
|
|
|
1,102.40 |
| Gujarat
Ambuja |
|
|
|
442.95 |
Last
Update : 7 March, 2005, 16:05PM
S&P
CNX Nifty
| Symbol | Open | High | Low | Last
Price | | PNB
| 478.00
| 519.95
| 465.00
| 512.10 |
| RELIANCE
| 555.20
| 590.45
| 555.20
| 584.55 |
| SBIN
| 716.45
| 734.90
| 715.25
| 728.50 |
| ONGC |
898.00 | 913.00
| 896.00
| 907.00 |
| INFOSYSTCH
| 2235.00
| 2262.00
| 2222.55
| 2248.00 |
| TISCO
| 431.00
| 437.90
| 430.75
| 434.70 |
| ORIENTBANK
| 331.00
| 372.60
| 330.00
| 361.20 |
| SATYAMCOMP
| 404.00
| 408.50
| 403.00
| 405.45 |
| HINDLEVER
| 151.00
| 151.00
| 142.20
| 144.70 |
| SAIL
| 66.60
| 67.70
| 66.50
| 67.15 |
| MARUTI
| 484.00
| 485.00
| 464.60
| 467.15 |
| TATAMOTORS
| 492.90
| 492.90
| 475.40
| 479.20 |
| BHARTI
| 238.50
| 239.90
| 228.00
| 231.50 |
| TCS
| 1395.00
| 1408.00
| 1394.00
| 1398.20 |
| RANBAXY
| 1028.00
| 1042.35
| 1027.05
| 1038.15 |
| TATAPOWER
| 406.45
| 406.45
| 395.55
| 400.05 |
| HDFC
| 798.70
| 811.00
| 787.20
| 802.00 |
| ICICIBANK
| 397.00
| 404.00
| 395.10
| 397.50 |
| IPCL
| 185.75
| 187.00
| 183.05
| 183.50 |
| SCI
| 162.90
| 172.40
| 161.15
| 171.25 |
| ITC
| 1396.40
| 1396.40
| 1351.15
| 1358.00 |
| M&M
| 562.00
| 562.00
| 548.50
| 557.00 |
| WIPRO
| 721.00
| 725.95
| 712.25
| 724.00 |
| HINDALC0
| 1405.00
| 1435.00
| 1400.00
| 1415.10 |
| LT
| 1133.00
| 1134.00
| 1091.25
| 1095.10 |
| HINDPETRO
| 339.65
| 342.00
| 335.10
| 336.45 |
| HDFCBANK
| 592.00
| 605.00
| 589.00
| 601.00 |
| ACC
| 377.00
| 377.00
| 366.50
| 369.00 |
| GUJAMBCEM
| 449.00
| 450.40
| 440.90
| 445.00 |
| BPCL
| 409.00
| 409.90
| 404.25
| 405.35 |
| GAIL
| 245.00
| 247.90
| 241.60
| 243.00 |
| REL
| 563.10
| 594.85
| 563.10
| 590.90 |
| HCLTECH
| 348.00
| 351.50
| 341.05
| 349.90 |
| BHEL
| 882.00
| 882.00
| 850.30
| 852.00 |
| GRASIM
| 1368.00
| 1379.80
| 1356.60
| 1370.00 |
| NATIONALUM
| 175.50
| 176.85
| 173.75
| 174.85 |
| DRREDDY
| 728.85
| 730.00
| 719.00
| 724.45 |
| ZEETELE
| 146.00
| 146.50
| 142.35
| 144.90 |
| BAJAJAUTO
| 1106.10
| 1132.00
| 1090.00
| 1096.00 |
| MTNL
| 135.80
| 135.90
| 133.60
| 134.00 |
| CIPLA
| 272.00
| 273.80
| 265.50
| 266.60 |
| TATATEA
| 565.00
| 567.40
| 548.05
| 550.00 |
| HEROHONDA
| 560.50
| 570.00
| 560.00
| 561.05 |
| VSNL
| 217.25
| 226.95
| 217.25
| 220.55 |
| SUNPHARMA
| 486.20
| 489.50
| 483.35
| 484.00 |
| GLAXO |
740.30 | 749.80
| 735.30
| 740.00 |
| TATACHEM
| 161.00
| 164.75
| 161.00
| 162.45 |
| DABUR |
145.00 | 145.00
| 120.00
| 120.25 |
| ABB |
1296.85 | 1304.95
| 1261.10
| 1290.00 |
| COLGATE
| 189.50
| 192.00
| 187.00
| 187.00 |
Last Update
: 7 March, 2005, 16:00PM
| 
