|
After 2two days of sideways correction and consolidation,
most traders were hopeful of further upward movement today.
The global cues were strong this morning as US markets
closed on a positive note yesterday and crude oil prices
declined.
Markets
opened on a positive note without disappointing the traders.
Helped by steady quarterly earnings reported by Satyam
and a better guidance for the rest of the year from the
IT major, the indices held steady till late in the afternoon.
The
decline in indices was sharp and sudden as it came after
more than two hours of trading within a very narrow range.
Not many of the frontline stocks survived the selling
pressure and the indices lost well over half-a-per cent
within minutes. Mild recovery during the last half-hour
of trade helped the markets to recover part of the losses.
Sensex
closed at 7304, down 39 points and the Nifty at 2231,
down 11 points. Nifty July futures closed the day at the
same level as the spot index.
Dabur,
VSNL and Bharti were among the major gainers among Nifty
stocks while Zee Tele, L&T and Tata Chemicals were
the major losers.
Helped
by some positive statements from the US Fed chairman on
the health of the US economy and declining oil prices,
the US markets closed the day on a positive note yesterday.
The Fed chairman said that the conomic growth momentum
was sustainable and inflation well contained.
The
Dow and the S&P 500 closed the day with gains of around
half-a-per cent each. NASDAQ gained close to three-quarters-of-a-per
cent despite weak quarterly numbers from some of the technology
companies. NASDAQ is at its highest level since 2001.
Crude oil futures for August delivery declined well over
a per cent yesterday on better than expected US inventory
of crude oil and refined products. Crude closed yesterday
on the NYMEX at $56.72 to a barrel.
Indian
ADR's closed the day on a mixed note yesterday after two
days of strong gains. VSNL and HDFC Bank were among the
major gainers, both closing around 2 per cent higher.
Tata Motors, Infosys, Satyam and ICICI Bank closed the
day with losses. Wipro, Dr. Reddy's and MTNL closed with
marginal gains.
Satyam
Computers reported its results for the first quarter ended
June '05, which were in line with its earlier guidance.
Profits were lower by over 7 per cent as compared to the
previous quarter ended March '05, even as revenues were
higher by over 8 per cent.
The
company said higher employee costs and foreign exchange
losses were the main reason for the decline in costs.
As compared to the same quarter of previous year, revenues
were higher by over 30 per cent and profits increased
over 18 per cent.
Satyam
announced the acquisition of a Singapore-based firm in
the business intelligence and data warehousing space.
The all cash deal would cost Satyam $5.6 million.
The
stock declined close to 2 per cent immediately after the
results were announced as traders reacted to the drop
in sequential profits. The stock made a smart recovery
as the markets digested the results and were comforted
by the higher guidance for the rest of the year. The stock
closed over a per cent higher and was one of the few gainers
in a falling market.
The
83 per cent rise in net profits reported by Jet Airways
after market hours yesterday failed to impress traders
as the stock slipped close to 2 per cent in early trades.
Though year-on-year profits have gone up, the decline
in profits as compared to the previous quarter ended March
'05 disappointed most analysts.
Profit
margins for the quarter were also lower by 300 basis points
as fuel prices and marketing expenses increased. With
both its main competitors slashing fares this month, Jet
would find it increasingly difficult to maintain its margins.
The stock closed with losses of under a per cent.
Tata
Chemicals has reported a 42 per cent rise in profits for
the first quarter as compared to the same quarter of previous
year even as revenues remained unchanged. The company
will spend up to Rs600 crore in the next few years in
expanding its capacities. The stock closed almost 3 per
cent lower.
Engineering
major ABB reported a 42 per cent rise in first quarter
profits on a revenue growth of close to 30 per cent as
compared to the same quarter of the previous year.
ONGC
is reportedly considering a 7.5-million tonnes per annum
refinery in Rajasthan in joint venture with Cairn Energy
of the UK. The refinery is expected to cost over Rs7,500
crore.
The
British oil exploration company had struck large oil and
gas reserves in the state and the recoverable oil deposits
are estimated to be 2.5 billion barrels. ONGC is an equity
partner in the Rajasthan oil fields of Cairn, from which
a production of over 150,000 barrels per day is expected
from the year 2007. ONGC closed the day marginally in
the negative.
Mid-Cap
Action
Mid-caps
also mirrored the action in frontline stocks today. Opening
firm, the mid-cap index surged to new life time highs
and were trading with gains till late in the afternoon
when they tumbled along with the frontline stocks. The
CNX Mid-Cap 100 index closed the day at 3401, a loss of
16 points.
Titan
Industries has reported profits for the first quarter
ended June '05 as compared to a loss during the same quarter
of the previous year. The company managed a turnaround
on the back of a healthy 42 per cent rise in revenues.
Titan
Industries stock has almost doubled in the last couple
of months as it is considered as one of the best speciality
retailing companies in the country. Besides, the company's
branded jewellery division has turned profitable after
years of struggle.
Mid-cap
technology company Mastek reported a 24 per cent growth
in consolidated profits on a revenue growth of close to
20 per cent for the quarter ended June '05 as compared
to the same quarter of the previous year.
Britannia
Industries, one of the largest packaged foods companies
in the country, reported a 35 per cent drop in first quarter
profits as compared to the same quarter of previous year.
Revenues were also lower by 6 per cent.
Adjusted
for extra-ordinary items, profits have increased over
7 per cent on a revenue growth of less than 3 per cent.
The expansion in operating margins impressed the markets
and the stock closed the day with gains of 5 per cent.
Britannia
has been facing intense competition from new players like
ITC in the biscuits segment. The emergence of strong regional
players is also hurting the company, which is struggling
to get its management team going after some high profile
exits.
Trent
Limited, one of the largest organised retailers in the
country, reported a 60 per cent rise in profits for the
quarter ended June '05. Revenues were also higher by over
50 per cent as compared to the same quarter of the previous
year. The stock closed over 11 per cent higher.
BPL
Limited surged to a yearly high in early trades after
the announcement of the sale of BPL Mobile to the Essar
group. Part of the sale consideration is expected to go
towards the financial restructuring of BPL Limited, which
has been struggling for the last few years.
Birla
group company Century Textiles has more than doubled its
quarterly profits for the period ended June '05. Revenues
were higher by over 11 per cent as compared to the same
quarter of last year.
Another
Birla group company Century Enka reported a 35 per cent
rise in quarterly profits as revenues rose close to 8
per cent as compared to the same quarter of the previous
year.
There
are reports that the real estate subsidiary of India Bulls
has acquired one of the old textile mill plots in Mumbai
from NTC for over Rs400 crore. The stock closed almost
3 per cent higher.
The
mill land remaining unused for many decades is now being
auctioned and is attracting high valuation as they are
the heart of Mumbai. India Bulls had earlier acquired
another plot for over Rs200 crore.
 Gufic
Biosciences, Spic, Havells were among the best performing
stocks among mid-caps.
Financial
Technologies, Sirpur Paper and NOCIL 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
|
7,304.32
|
-
38.57 |
| NIFTY
|
2,230.50
|
-11.40 |
Last
Update : 21 July, 2005, 16:13 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| HOUSING
DEVELOPMENT FINANCE CO |
892.00
|
901.95
|
885.00
|
893.70 |
| BHARTI
TELE |
251.70
|
255.00
|
248.70
|
253.60 |
| SATYAM
COMP |
507.00
|
514.65
|
491.00
|
511.50 |
| GUJARAT
AMBUJA CEMENTS LTD. |
61.90
|
63.00
|
61.60
|
62.25 |
| HDFC
BANK LT |
643.00
|
647.85
|
636.35
|
642.30 |
| MARUTI
UDYOG |
461.00
|
467.00
|
454.90
|
464.00 |
| HINDALCO
IN |
1,252.10
|
1,273.90
|
1,250.00
|
1,256.65 |
| CIPLA
LTD. |
333.90
|
338.00
|
330.00
|
332.50 |
| BHEL
|
932.00
|
944.85
|
927.15
|
940.00 |
| LARSEN
& TOUBRO LTD. |
1,298.00
|
1,303.00
|
1,244.00
|
1,247.50 |
| I
T C LTD |
1,682.00
|
1,685.00
|
1,629.00
|
1,634.35 |
| STATE
BANK OF INDIA |
726.00
|
729.95
|
707.10
|
709.35 |
| TATA
MOTORS |
472.00
|
474.70
|
458.40
|
461.35 |
| RELIANCE
ENR |
635.00
|
652.75
|
633.05
|
634.90 |
| TCS
LTD |
1,310.00 |
1,318.80
|
1,281.00
|
1,290.25 |
| HEROHONDA
M |
621.85
|
621.85
|
601.10
|
606.95 |
| GRASIM
INDUSTRIES LTD. |
1,179.10
|
1,185.00
|
1,148.00
|
1,160.20 |
| BAJAJ
AUTO |
1,408.00
|
1,420.00
|
1,361.00
|
1,381.95 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,248.00
|
2,253.00
|
2,200.05
|
2,210.15 |
| HINDUSTAN
LEVER LTD. |
161.00
|
161.95
|
157.20
|
158.55 |
| TATA
POWER |
401.25
|
405.00
|
392.55
|
396.40 |
| WIPRO
LTD. |
715.80
|
725.00
|
708.00
|
711.05 |
| TATA
IRON AND STEEL CO. LTD. |
372.00
|
376.30
|
366.75
|
369.75 |
| ASSOCIATED
CEMENT COMPANIES LT |
439.40
|
441.50
|
430.15
|
436.35 |
| RANBAXY
LABORATORIES LTD. |
1,055.00
|
1,056.70
|
1,042.00
|
1,045.95 |
| ICICI
BANK L |
443.00
|
444.00
|
432.00
|
438.00 |
| ONG
CORP LTD |
924.40
|
930.00
|
915.00
|
917.80 |
| NTPC
LTD |
92.80
|
93.00
|
90.95
|
92.10 |
| DR.REDDY'S
LABORATORIES LTD. |
763.00
|
770.00
|
755.05
|
761.00 |
Last
Update : 21 July, 2005, 16:02PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| SATYAMCOMP
|
502.90
|
514.70
|
490.35
|
512.10 |
| RELIANCE
|
676.00
|
686.30
|
670.65
|
678.25 |
| VSNL
|
363.00
|
373.80
|
358.00
|
367.05 |
| INFOSYSTCH
|
2264.70
|
2321.15
|
2196.00
|
2209.00 |
| TISCO
|
372.00
|
376.40
|
367.00
|
369.70 |
| SBIN
|
725.10
|
730.00
|
706.00
|
709.80 |
| ITC
|
1680.10
|
1687.75
|
1631.00
|
1635.30 |
| TATACHEM
|
199.25
|
202.50
|
187.50
|
191.25 |
| ONGC
|
919.00
|
930.00
|
914.90
|
918.20 |
| IPCL
|
191.80
|
195.20
|
188.05
|
191.35 |
| TCS
|
1321.00
|
1321.00
|
1280.00
|
1290.30 |
| TATAMOTORS
|
471.05
|
474.70
|
458.50
|
461.25 |
| ZEETELE
|
176.90
|
176.90
|
165.30
|
166.70 |
| ACC |
437.90 |
441.75
|
429.15
|
435.90 |
| SAIL
|
54.20
|
54.95
|
53.00
|
53.65 |
| MARUTI |
461.00 |
467.00
|
454.50
|
464.55 |
| GUJAMBCEM
|
62.40
|
63.10
|
61.70
|
62.25 |
| PNB
|
407.80
|
408.50
|
395.00
|
399.75 |
| HCLTECH
|
391.90
|
397.50
|
375.00
|
392.55 |
| HINDLEVER
|
160.00
|
161.80
|
157.10
|
158.45 |
| REL
|
651.00
|
651.90
|
632.20
|
634.65 |
| GRASIM
|
1189.00
|
1190.00
|
1148.20
|
1159.15 |
| CIPLA
|
334.00
|
339.40
|
330.15
|
332.60 |
| BHARTI
|
255.00
|
255.70
|
248.10
|
253.80 |
| MTNL
|
140.50
|
142.25
|
135.70
|
138.85 |
| DABUR
|
145.25
|
153.90
|
145.25
|
151.20 |
| HDFC
|
897.50
|
901.65
|
880.15
|
892.60 |
| HEROHONDA
|
615.50
|
620.00
|
600.00
|
607.30 |
| GAIL
|
220.90
|
223.05
|
219.25
|
221.05 |
| BHEL
|
936.75
|
944.80
|
925.15
|
940.55 |
| WIPRO
|
722.00
|
723.00
|
706.00
|
711.60 |
| LT
|
1296.05
|
1303.00
|
1245.00
|
1247.85 |
| M&M
|
608.90
|
608.90
|
594.00
|
596.60 |
| HINDALC0
|
1250.95
|
1271.00
|
1245.05
|
1256.35 |
| BAJAJAUTO
|
1380.00
|
1400.00
|
1375.55
|
1380.00 |
| NATIONALUM
|
156.50
|
159.30
|
155.80
|
156.75 |
| HINDPETRO
|
298.70
|
301.40
|
291.00
|
297.80 |
| ICICIBANK
|
442.00
|
444.00
|
434.10
|
438.80 |
| RANBAXY
|
1051.00
|
1057.00
|
1044.00
|
1046.90 |
| SUNPHARMA
|
649.00
|
654.10
|
636.10
|
649.35 |
| TATAPOWER
|
400.00
|
404.75
|
392.00
|
396.65 |
| ORIENTBANK
|
268.05
|
269.05
|
262.50
|
265.40 |
| BPCL
|
346.90
|
349.50
|
344.00
|
345.20 |
| SCI
|
146.30
|
149.40
|
145.50
|
146.10 |
| ABB
|
1520.00
|
1540.00
|
1480.00
|
1490.55 |
| HDFCBANK
|
644.90
|
648.85
|
612.25
|
641.60 |
| DRREDDY
|
762.50
|
769.70
|
760.00
|
763.15 |
| TATATEA
|
645.00
|
648.90
|
637.10
|
640.15 |
| GLAXO
|
885.00
|
885.00
|
865.00
|
870.05 |
| COLGATE
|
243.90
|
247.40
|
238.10
|
239.40 |
Last
Update : 21 July, 2005, 16:00PM
| 
