|
Yet another big result day with the largest private sector company Reliance
Industries announcing its results. Great numbers from the company failed to
strengthen the markets as controversies surrounding the Reliance group led
to some selling by institutional investors.
Market
weakness in the morning came mostly from the frontline technology companies.
Led by Infosys, all the major software stocks lost ground in early trades.
The fall was triggered by the large sell off in Infosys ADR yesterday at the
NASDAQ. Old
economy stocks, especially Reliance, held the markets from further decline
till late in the afternoon. When it looked as if the indices would close without
further damage, a sudden bout of selling in heavyweights pulled them down.
Sensex
closed at 6279, down 61 points and the Nifty at 1935, down 22 points. Nifty
April futures discount to the spot index went up marginally to 8 points from
Teusday's 7 points. Among
Nifty stocks, HLL, Cipla and Bajaj Auto were the major percentage gainers
while ICICI Bank, MTNL and IPCL were the major losers. Reliance
Industries came out with better than expected results. After IPCL's strong
results yesterday, the markets were almost expecting an excellent showing
by the petrochemical and refinery major. The
Reliance stock opened firm in the morning in anticipation of the results.
It held firm after the results were announced as they were above expectations.
However, the last half hour of trade saw some heavy selling in the stock.
It lost all of its morning gains rapidly and slipped deep into the red. The
continuing public spat within the promoter family took much of the sheen out
of the results. Anil Ambani, on his way to the board meeting, was very critical
of the functioning of the Reliance board of directors. He claimed his objections
to certain decisions were completely ignored and he now feels like a minority
shareholder rather than a promoter. This
public outburst by Anil Ambani culminated in his refusal to sign the financial
statements of the company as vice chairman and managing director. He claims
sufficient details were not provided and the disclosures were not adequate.
Not many are clear what exactly is going on in Reliance companies these days. In
the morning there were reports that the IPCL board would invite Anil Ambani
to rejoin the board amid all the controversy surrounding his earlier resignation
and its acceptance by the company. Anil Ambani claims he is yet to receive
any formal communication from the company, either about the acceptance of
his resignation or on the invitation to rejoin. There
are reports in the Italian print media about a possible tie up between Fiat
and Tata Motors. As per the reports, discussions between the companies started
after the Geneva motor show. They further state that the possible tie up would
cover passenger cars, commercial vehicles and farm equipment. Bajaj
Auto has received the Pakistan government's clearance for its tie up with
a local business house to sell bikes in that country. Pakistan has a much
smaller market for two-wheelers when compared to India and the company expects
to export between 50,000 to 100,000 bikes over the next few years. Jet
Airways was one of the biggest losers of the day with the stock losing over
4 per cent towards closing. Some analysts are linking this to the massive
expansion plans of Air India. As reported in the media, Air India has approved
the proposal to purchase 50 long range aircraft from Boeing. Arvind
Mills, one of the country's largest textile and garment manufacturers, reported
good results today. The company has benefited from lower cotton prices and
better demand for denim during last year. The company expects demand to remain
robust in the near future. After gaining on announcement of results the stock
closed lower. Mid-cap
action Gokaldas
Exports, the country's largest exporter of garments, made its debut on the
stock exchanges after its successful IPO. Issued at Rs425 per share, the stock
opened at Rs500 on the NSE and closed at Rs630. After the disappointing listing
by some of the recently concluded IPO's, Gokaldas with a listing gain of over
48 per cent on its first day stands out. Construction
company IVRCL is taking over engineering company Hindustan Dorr-Oliver. Dorr-Oliver
was part of the Dubai-based Jumbo group belonging to the Chabrias. IVRCL will
be making an open offer for Hindustan Dorr-Oliver shares as per the take over
code. Indian
Overseas Bank shot up over 5 per cent after the bank reported excellent results
for the quarter ended March 2005. Profits have doubled as compared to the
same quarter of previous year. Glenmark
Pharmaceuticals, which has announced a series of tie-ups with foreign drug
firms for out licensing its molecules, announced very good results for the
quarter ended March 2005. The company expects overseas sales to be the main
growth driver going forward while it expects modest growth in domestic business
as well. The stock closed lower. Eveready
Industries re-listed on the bourses after its restructuring exercise. The
stock opened at Rs75 and closed at Rs84.8 after hitting a high of Rs98.4.
As per media reports, the company has valued the Eveready brand at over Rs600
crore. BPL
Limited continued to gain strength after the Kerala High Court approved its
restructuring plans. The approval will enable the company to hive off its
television business into a joint venture with Sanyo of Japan. The company
will also be able to go ahead with the corporate debt restructuring package
which is being discussed with its lenders.  Among
mid-cap stocks Shreyas Shipping, Visaka Industries and BPL Limited were the
significant percentage gainers.
Jindal
Photofilms, RS Software and Carborundum Universal were among the major 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. Other
articles by Rex Mathew
List
of general reports on markets List
of general reports on finance
Market:
Indices
National
Markets
Gain (+) / Loss (-)
|
SENSEX
|
6278.50
|
-
61.48 |
| NIFTY
|
1935.40
|
-
21.70 |
Last
Update : 27 April, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| CIPLA
LTD. |
245.00
|
259.50
|
243.50
|
254.70 |
| HINDUSTAN
LEVER LTD. |
138.00
|
143.75
|
136.00
|
142.75 |
| BAJAJ
AUTO |
1,080.00
|
1,100.00
|
1,075.55
|
1,100.00 |
| I
T C LTD |
1,379.80
|
1,427.00
|
1,379.00
|
1,401.50 |
| GRASIM
INDUSTRIES LTD. |
1,220.00
|
1,235.00
|
1,206.20
|
1,235.00 |
| HOUSING
DEVELOPMENT FINANCE CO |
724.50
|
738.85
|
722.00
|
730.50 |
| HDFC
BANK LT |
538.00
|
540.50
|
535.00
|
540.50 |
| ZEE
TELEF LT |
132.00
|
133.50
|
131.00
|
132.20 |
| ICICI
BANK L |
397.00
|
400.00
|
381.55
|
384.35 |
| MARUTI
UDYOG |
430.90
|
430.90
|
417.00
|
418.60 |
| TATA
IRON AND STEEL CO. LTD. |
359.00
|
359.00
|
348.40
|
349.85 |
| ASSOCIATED
CEMENT COMPANIES LT |
369.95
|
372.90
|
362.05
|
362.05 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
1,917.70
|
1,934.00
|
1,878.00
|
1,919.85 |
| ONG
CORP LTD |
848.10
|
848.10
|
829.00
|
831.55 |
| GUJARAT
AMBUJA CEMENTS LTD. |
432.00
|
432.80
|
421.00
|
423.35 |
| BHARTI
TELE |
206.50
|
206.50
|
200.60
|
202.15 |
| HINDUSTAN
PETROLEUM CORP. LTD. |
326.00
|
326.00
|
319.30
|
320.65 |
| DR.REDDY'S
LABORATORIES LTD. |
665.00
|
667.00
|
652.05
|
656.35 |
| RELIANCE*
|
552.90
|
559.60
|
533.55
|
539.10 |
| RELIANCE
ENR* |
496.50
|
505.00
|
491.50
|
494.40 |
| SATYAM
COMP |
410.50
|
414.50
|
407.55
|
410.20 |
| WIPRO
LTD. |
637.00
|
647.40
|
629.15
|
636.20 |
| RANBAXY
LABORATORIES LTD. |
921.00
|
927.00
|
901.10
|
907.55 |
| TATA
POWER |
354.90
|
358.50
|
348.20
|
350.25 |
| BHEL
|
822.90
|
828.00
|
816.15
|
820.80 |
| LARSEN
& TOUBRO LTD. |
970.00
|
983.50
|
964.00
|
969.20 |
| STATE
BANK OF INDIA |
624.00
|
629.50
|
617.00
|
620.25 |
| TATA
MOTORS |
434.50
|
441.00
|
428.35
|
432.45 |
Last
Update : 27 April, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
555.00
|
559.50
|
533.30
|
539.00 |
| INFOSYSTCH
|
1915.00
|
1935.00
|
1878.00
|
1914.15 |
| SATYAMCOMP
|
407.00
|
414.45
|
407.00
|
409.90 |
| TISCO
|
358.00
|
358.00
|
348.20
|
349.65 |
| TATAMOTORS
|
431.20
|
441.60
|
429.00
|
433.15 |
| SBIN
|
625.00
|
628.90
|
616.05
|
619.95 |
| TCS
|
1141.10
|
1141.10
|
1111.00
|
1115.65 |
| HINDLEVER
|
137.75
|
144.00
|
137.05
|
143.35 |
| ITC
|
1387.50
|
1429.00
|
1373.00
|
1401.70 |
| MARUTI |
428.25 |
430.95
|
416.50
|
418.45 |
| IPCL
|
171.00
|
173.45
|
165.00
|
165.75 |
| CIPLA |
242.50 |
259.60
|
242.50
|
254.95 |
| ONGC
|
845.00
|
849.90
|
828.50
|
831.45 |
| SAIL
|
54.50
|
55.20
|
54.00
|
54.20 |
| WIPRO
|
640.00
|
645.00
|
628.20
|
635.00 |
| RANBAXY
|
918.00
|
926.90
|
902.20
|
907.20 |
| ORIENTBANK
|
282.10
|
286.50
|
280.10
|
284.30 |
| M&M
|
457.00
|
457.00
|
442.00
|
444.30 |
| MTNL |
121.00 |
121.00
|
116.00
|
116.55 |
| ICICIBANK
|
390.15
|
401.00
|
381.10
|
383.90 |
| PNB
|
376.00
|
377.00
|
367.60
|
369.05 |
| BHEL
|
824.00
|
828.00
|
815.55
|
820.85 |
| HDFC
|
719.40
|
738.00
|
713.20
|
726.10 |
| BHARTI
|
206.00
|
206.00
|
200.50
|
202.35 |
| HCLTECH
|
346.40
|
346.40
|
338.50
|
341.00 |
| TATAPOWER
|
349.15
|
359.25
|
348.00
|
350.25 |
| DRREDDY
|
667.10
|
669.95
|
652.15
|
656.00 |
| ACC
|
372.00
|
372.40
|
361.10
|
363.90 |
| VSNL
|
205.50
|
213.00
|
202.00
|
203.75 |
| TATATEA
|
533.00
|
546.00
|
521.00
|
523.85 |
| GAIL
|
213.00
|
213.00
|
207.05
|
208.20 |
| LT |
990.00 |
990.00
|
961.00
|
967.80 |
| GUJAMBCEM
|
433.00
|
433.00
|
421.00
|
423.40 |
| BAJAJAUTO
|
1076.00
|
1095.00
|
1070.35
|
1090.70 |
| HEROHONDA
|
506.00
|
509.90
|
500.00
|
501.80 |
| REL
|
495.20
|
503.80
|
475.55
|
495.40 |
| SCI
|
152.75
|
152.80
|
147.30
|
148.00 |
| HINDPETRO
|
326.00
|
326.00
|
318.00
|
319.90 |
| BPCL
|
352.00
|
361.50
|
352.00
|
356.80 |
| HDFCBANK
|
531.05
|
540.80
|
531.05
|
537.45 |
| ZEETELE
|
133.00
|
133.50
|
130.75
|
131.75 |
| HINDALC0
|
1247.00
|
1260.05
|
1245.25
|
1253.65 |
| NATIONALUM
|
156.50
|
157.40
|
152.60
|
153.75 |
| DABUR
|
114.75
|
118.90
|
114.00
|
116.85 |
| GRASIM
|
1205.00
|
1225.00
|
1204.00
|
1222.40 |
| SUNPHARMA
|
487.00
|
491.95
|
480.00
|
482.25 |
| ABB
|
1240.00
|
1269.80
|
1231.50
|
1261.95 |
| COLGATE
|
202.00
|
202.00
|
196.45
|
197.90 |
| TATACHEM
|
150.10
|
154.25
|
150.10
|
152.55 |
| GLAXO
|
720.00
|
722.95
|
711.00
|
713.90 |
Last
Update : 27 April, 2005, 16:04PM
| 
