|
The markets opened the day with a good positive gap and
touched new highs early in the morning itself. Most analysts
have been advising caution after the indices touched new
all time highs on Friday and markets were showing some
amount of tiredness.
Most
traders seem to have ignored the predictions of an impending
correction. Most of the gains were on account of a build
up of fresh positions on the July derivative series, as
evident from the narrowing of futures discount to the
spot index over the last two days.
The
indices saw some decline fall before noon, which took
them very close to Friday's closing levels. But from there
on, they steadily gained ground.
The
last half hour saw a surge, led by Infosys, which took
the indices past the highs reached in morning trades.
Both
the Sensex and Nifty closed at new all time highs of 7277
and 2231 respectively. Both indices closed with gains
of nearly a per cent each from Friday's closing. Nifty
July futures closed at a discount of 4 points to the spot
index.
Among
Nifty stocks, VSNL, Zee Tele and Tata Power were the major
percentage gainers while Maruti, L&T and BPCL were
the major losers.
VSNL
was the biggest gainer among index stocks, closing with
gains of over 7 per cent. The company had recently concluded
the acquisition of Tyco Global Networks, which has been
renamed as VSNL Global Networks. This division is expected
to add $100 million to VSNL's top line.
The
stock was also helped by the news of a possible stake
sale by Tata Teleservices to South Korea Telecom. VSNL
holds a 20 per cent stake in Tata Teleservices. Earlier,
there was speculation about a possible merger between
VSNL and Tata Teleservices.
Nalco
will cut production by 5 per cent due to shortage of coal.
The company is planning to import coal to meet the shortfall.
M&M
has reported lower unit sales for the month of June, excluding
tractors. Total volumes were lower by 3 per cent as sales
of commercial vehicles declined. The stock closed with
gains of well over a per cent.
M&M's
joint venture in China with Jiangling Motor Group has
started production of tractors for the Chinese market.
The JV will also start exports to western markets later.
M&M holds an 80 per cent stake in the JV, set up with
an investment of $10 million.
Cement
companies have reported very encouraging volume growth
in June shipments. ACC, Gujarat Ambuja and Grasim all
reported growth of close to 10 per cent each for the month
of June as compared to the same month of previous year.
ACC
closed with gains of a per cent. Grasim and Gujarat Ambuja
also managed to close with gains.
There
are reports that HDFC Bank is planning to set up a non-banking
finance (NBFC) subsidiary. Such a subsidiary will help
the bank to overcome regulations regarding lending to
individual corporate groups.
Besides,
non-banking finance companies can operate with lower liquidity
ratios and offer higher interest rates for deposits as
compared to commercial banks. HDFC Bank closed with gains
of 2 per cent.
After
announcing its plans to set up a 4-million tonne steel
plant in Orissa, the Essar group is reportedly planning
to set up a 3-million tonne steel plant in Chattisgarh
as well. It is not clear whether the plant, estimated
to cost over Rs4,000 crore, will be built by the listed
company Essar Steel.
Indian
Oil Corporation has reportedly lost close to Rs5,000 crore
in the first quarter ended June because of under recovery.
PSU oil marketing companies are selling petroleum products,
especially LPG and kerosene, at prices much lower than
costs.
Reliance
Capital is reportedly planning to re-apply for a life
insurance license. The license granted earlier was cancelled
as the company failed to start operations for three years.
The stock closed with gains of over half a per cent.
Mid-Cap
Action
Mid-cap
stocks continued from Friday's strong closing and outperformed
the frontline stocks for the second day. CNX Mid-Cap 200
index closed at 3084, a gain of 49 points. The index closed
very close to its all time high.
The
Jaypee group is planning to set up a 1,000mw coal-based
thermal power project in Madhya Pradesh. The project will
be set up by a subsidiary of Jaiprakash Hydro Power and
will involve a total investment of Rs4,000 crore.
JP
Hydro currently operates a 300mw hydel power plant in
Himachal Pradesh. Another 400mw hydel project will go
on stream next year in Uttaranchal and the company is
also setting up yet another 1,000mw hydel project in Himachal
Pradesh. The stock closed with gains of over 3 per cent.
Pidilite
Industries gained over 5 per cent in early trades after
the company announced that its subsidiary will pick up
a 49 per cent stake in Jupiter Chemicals based in Dubai.
Jupiter will promote Pidilite's products in the Middle
East markets. Pidilite manufactures adhesives which are
marketed under the famous Fevicol brand.
The
board of Pidilite has also decided to split every Rs10
share into 10 shares of Re1 each.
Mid-cap
IT company Polaris announced that its treasury management
suit has been selected by a leading international financial
services company for implementation in multiple locations.
The stock gained over 7 per cent after the announcement
and closed 6 per cent higher.
Wimco
Limited gained over 10 per cent in early trades after
ITC Limited announced the acquisition of 74 per cent stake
in the company from Swedish Match Company.
Swedish
Match Company was earlier directed by SEBI to make an
open offer for 20 per cent of Wimco. Accordingly, SMC
will be making the offer shortly and sell the additional
20 per cent also to ITC. ITC will subsequently make another
open offer for the remaining minority stake and de-list
Wimco from the exchanges.
Gujarat
NRE Coke has acquired a coking coal mine in Australia
at a cost of A$80 million. The acquisition is through
the company's joint venture in Australia.
Agro
Dutch Foods, a major exporter of mushrooms from the country,
recovered from early losses after the company announced
that a German company would invest Euro 5 million in its
expansion project.
Agro
Dutch would invest up to Rs100 crore over the next 12
months to expand capacity, which would be partly funded
through a rights issue at Rs30 per share. The stock had
seen considerable appreciation over the last few days
after it won an anti-dumping dispute in the US.
The
capacity expansion from 36,000mt to 50,000mt will make
Agro Dutch the largest integrated mushroom producer in
the world. The company would also start exports of frozen
mushrooms.
Eicher
Motors has reported a volume growth of over 20 per cent
for the month of June as compared to the same month of
last year.
Media
Video closed with gains of 20 per cent after the company
announced that it will make a preferential issue of close
to 15 per cent stake in the company to Bennett Coleman
and Company, publishers of the Times of India newspaper.
The issue will be made at Rs26 per share.
Most
media stocks saw substantial gains today as well. TV Today
spurted in afternoon trades to close at the 20 per cent
upper circuit. UTV, Deccan Chronicle, NDTV and
Mid-Day were among other stocks which saw significant
gains. Adlabs saw some correction after posting huge gains
during the previous week.
Hindustan
Motors gained over 5 per cent after the company reported
that volume sales of its Ambassador model was higher by
 over
25 per cent for the month of June. Cumulative sales of
the model for the first quarter have increased close to
20 per cent.
SRF
Limited, First Leasing and Phoenix Lamps were among the
best performing stocks among mid-caps.
Unitech,
Hexaware and Jindal Drilling were among the significant
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
|
7,277.31
|
+
66.54 |
| NIFTY
|
2,230.65
|
+
18.75 |
Last
Update : 4 July, 2005, 16:13 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| CIPLA
LTD. |
322.00
|
330.45
|
320.00
|
329.05 |
| HINDALCO
IN |
1,205.45
|
1,230.00
|
1,179.00
|
1,226.60 |
| TATA
POWER |
385.00
|
398.50
|
385.00
|
397.60 |
| NTPC
LTD |
85.35
|
87.90
|
85.25
|
87.25 |
| HDFC
BANK LT |
624.85
|
635.00
|
622.30
|
631.70 |
| DR.REDDY'S
LABORATORIES LTD. |
763.70
|
780.00
|
762.00
|
775.90 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,300.00
|
2,399.50
|
2,300.00
|
2,394.85 |
| ICICI
BANK L |
421.00
|
431.25
|
421.00
|
429.15 |
| GUJARAT
AMBUJA CEMENTS LTD. |
59.90
|
60.95
|
59.55
|
60.65 |
| SATYAM
COMP |
505.50
|
512.50
|
504.10
|
511.00 |
| HOUSING
DEVELOPMENT FINANCE CO |
875.00
|
915.00
|
867.00
|
879.70 |
| ASSOCIATED
CEMENT COMPANIES LT |
386.50
|
391.50
|
385.10
|
389.55 |
| BHARTI
TELE |
246.00
|
248.50
|
243.00
|
247.35 |
| I
T C LTD |
1,625.25
|
1,690.00
|
1,625.25
|
1,683.10 |
| RELIANCE
ENR |
650.00
|
661.90
|
646.75
|
654.10 |
| RELIANCE*
|
641.00
|
649.25
|
639.00
|
643.85 |
| STATE
BANK OF INDIA |
711.40 |
718.25
|
708.15
|
710.60 |
| TATA
IRON AND STEEL CO. LTD. |
343.80
|
349.00
|
343.00
|
345.80 |
| ONG
CORP LTD |
986.00
|
1,000.00
|
983.00
|
986.90 |
| GRASIM
INDUSTRIES LTD. |
1,061.00
|
1,090.00 |
1,057.00
|
1,069.00 |
| BHARAT
HEAVY ELECTRICALS |
|
|
|
855.80 |
| HERO
HONDA MOTORS LIMITED |
|
|
|
583.50 |
| RANBAXY
LABORATORIES LTD |
|
|
|
1,078.40 |
| TATA
CONSULTANCY SERVICES |
|
|
|
1,358.15 |
| LARSEN
& TOUBRO LTD. |
1,185.00
|
1,185.00
|
1,166.15
|
1,170.10 |
| MARUTI
UDYOG |
470.00
|
472.80
|
458.50
|
462.80 |
| BAJAJ
AUTO |
1,376.50
|
1,400.00
|
1,371.50
|
1,377.00 |
| HINDUSTAN
LEVER LTD. |
165.00
|
166.10
|
163.60
|
164.20 |
| TATA
MOTORS |
431.00
|
431.00
|
422.65
|
426.75 |
| WIPRO
LTD. |
744.75
|
751.80
|
740.00
|
744.00 |
Last
Update : 4 July, 2005, 16:02PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
642.00
|
649.50
|
639.00
|
644.40 |
| SBIN
|
710.05
|
718.40
|
708.30
|
711.65 |
| VSNL
|
251.75
|
280.70
|
251.10
|
269.10 |
| INFOSYSTCH
|
2350.00
|
2399.95
|
2332.30
|
2394.20 |
| IPCL
|
171.00
|
179.90
|
169.00
|
177.60 |
| TISCO |
345.00
|
349.35
|
343.00
|
345.95 |
| ONGC
|
991.95
|
999.40
|
982.10
|
988.20 |
| SATYAMCOMP
|
503.80
|
512.90
|
503.15
|
511.85 |
| TCS
|
1358.80
|
1371.90
|
1331.00
|
1359.05 |
| ZEETELE
|
150.35
|
163.40
|
150.35
|
161.25 |
| REL
|
650.10
|
661.00
|
645.50
|
654.75 |
| MARUTI |
473.05 |
473.05
|
457.85
|
463.15 |
| TATAMOTORS
|
431.00
|
431.00
|
422.60
|
427.00 |
| M&M
|
572.50
|
588.60
|
572.50
|
581.75 |
| ITC
|
1675.00
|
1689.00
|
1655.00
|
1683.15 |
| BHARTI
|
246.00
|
248.50
|
229.80
|
247.65 |
| TATAPOWER
|
386.00
|
399.70
|
386.00
|
398.15 |
| RANBAXY
|
1075.00
|
1090.00
|
1069.00
|
1081.00 |
| LT |
1180.00 |
1180.00
|
1166.05
|
1169.70 |
| PNB
|
387.00
|
394.25
|
387.00
|
391.05 |
| WIPRO
|
749.25
|
751.40
|
740.00
|
746.50 |
| CIPLA
|
320.55
|
330.15
|
320.55
|
329.10 |
| HINDLEVER
|
164.05
|
166.40
|
163.50
|
164.30 |
| HDFC
|
875.45
|
915.00
|
868.50
|
880.60 |
| ICICIBANK
|
424.00
|
431.45
|
421.00
|
429.25 |
| HINDALC0
|
1198.00
|
1229.95
|
1177.00
|
1226.80 |
| ORIENTBANK
|
257.00
|
262.00
|
255.55
|
258.70 |
| BAJAJAUTO
|
1356.00
|
1400.00
|
1356.00
|
1379.95 |
| SAIL
|
48.60
|
49.25
|
48.30
|
48.85 |
| ACC |
387.20 |
392.00
|
384.00
|
389.75 |
| MTNL
|
120.50
|
123.25
|
119.00
|
121.85 |
| DRREDDY
|
761.00
|
785.00
|
761.00
|
777.55 |
| HDFCBANK
|
622.95
|
635.00
|
620.00
|
631.95 |
| TATATEA
|
638.00
|
644.65
|
634.00
|
639.25 |
| GLAXO
|
858.00
|
875.00
|
847.40
|
861.15 |
| GRASIM
|
1060.55
|
1088.20
|
1054.00
|
1071.45 |
| COLGATE
|
250.50
|
256.00
|
246.10
|
254.15 |
| HCLTECH
|
394.90
|
397.00
|
388.50
|
392.20 |
| GUJAMBCEM
|
60.00
|
60.85
|
59.50
|
60.55 |
| BHEL
|
865.00
|
869.00
|
854.00
|
858.10 |
| HINDPETRO
|
311.00
|
314.00
|
309.00
|
311.80 |
| NATIONALUM
|
141.50
|
143.75
|
140.00 |
142.25 |
| TATACHEM
|
170.90
|
173.50
|
170.15
|
172.05 |
| GAIL
|
224.10
|
226.00
|
222.05
|
223.85 |
| DABUR
|
133.00
|
136.50
|
132.70
|
134.40 |
| HEROHONDA
|
588.00
|
590.90
|
581.15
|
583.75 |
| SUNPHARMA
|
588.00
|
605.00
|
580.00
|
604.20 |
| SCI
|
144.00
|
144.90
|
141.70
|
144.10 |
| BPCL
|
371.15
|
371.15
|
365.20
|
367.95 |
| ABB
|
1325.00
|
1339.30
|
1315.10
|
1332.15 |
Last
Update : 4 July, 2005, 16:00PM
| 
