The market momentum is so strong that even the worst-ever
flooding in the history of the country's financial capital
cannot stop its onward march. After opening on a weak
note, the indices gained strength on the back of very
strong quarterly results from Reliance Industries and
closed the day at new lifetime-highs. The Sensex closed
the day above 7600 for the first time ever.
day started with doubts about whether the exchanges would
be able to function smoothly in view of the large scale
disruptions in Mumbai. Finally the exchanges did open
for business as usual, though there were reports of problems
at the depositories.
volumes at around Rs24,000 crore were not affected much,
even though most of the Mumbai traders could not participate.
After remaining low in the initial hours of trading, volumes
picked up later in the day. Volumes were over Rs30,000
day once again belonged to banking stocks which continued
their strong showing today as well. HDFC Bank was the
biggest gainer among large banks, closing with gains of
close to 4 per cent. While SBI closed with gains of 3
per cent, ICICI Bank gained well over 3 per cent.
closed at 7605, a gain of 52 points and the Nifty at 2319,
a gain of 16 points. Nifty July futures closed the day
at a premium of 2 point to the spot index.
HDFC Bank and ICICI Bank were among the major gainers
among Nifty stocks while Zee Tele, Tata Steel and M&M
were the major losers.
markets had a mixed session yesterday. The Dow closed
lower while NASDAQ closed with gains of close to half
a per cent. S&P 500 also managed to close with gains.
Tech ADR's had a mixed day yesterday with Wipro losing
3 per cent while Satyam and Infosys managed to close with
gains. Dr. Reddy's was the best performing Indian ADR
on the US exchanges yesterday. Encouraged by the strong
quarterly results, the stock gained over 6 per cent. Tata
Motors and HDFC Bank also managed to close with gains.
Industries gave a pleasant surprise to the markets by
announcing a more than 60 per cent growth in first quarter
profits as compared to the same quarter of previous year.
Revenues were higher by over 23 per cent at close to Rs18,000
company said firm product prices led to an expansion in
margins and helped the company in overcoming the volatility
in raw material prices. The company would invest over
$1.5 billion to build oil and gas production facilities
in the east coast. The stock closed with gains of over
a per cent, at a new life time high.
margins of Reliance Industries for the quarter were higher
by 7 per cent at around $8 per barrel and the Jamnagar
refinery achieved a capacity utilisation of 96 per cent.
board of directors of Reliance Industries who met today
did not discuss the restructuring of the group. A formal
announcement is expected before the company's AGM scheduled
early next month. The company has also decided to close
its share buy back programme prematurely on 2002 August.
Steel's first quarter results disappointed the markets
and the stock closed the day with losses of well over
3 per cent. Revenues were higher by 10 per cent and profits
were higher by over 27 per cent on a consolidated basis
as compared to the same quarter of previous year.
production and sales of steel for the quarter were lower
by over 5 per cent. Though the company managed to improve
margins, growth in top line and profits were far lower
than market expectations.
Steel maintained that domestic steel demand continues
to remain robust even though prices may soften marginally.
The company is on the lookout for more domestic and international
acquisitions to emerge as a significant global player.
Tea reported a 90 per cent surge in first quarter profits
on a revenue growth of 10 per cent as compared to the
same quarter of previous year. Strong product prices and
improved margins from branded products helped the company
to report higher profits.
surged over 4 per cent in intra-day trades to a new high,
comfortably crossing the Rs400-per share mark on the way.
After the announcement of its acquisition of NASDAQ listed
Teleglobe the day before, the stock had closed with gains
of over a per cent yesterday.
Power reported an over 15 per cent growth in first quarter
profits as compared to the same quarter of previous year.
Revenues were marginally higher by 2 per cent.
technology stocks made a strong comeback after remaining
subdued for the last few days. Wipro closed almost 3 per
cent higher while Satyam gained close to 2 per cent. TCS
closed the day with gains of well over a per cent. Gains
on Infosys were lower at less than a per cent.
underperformed the frontline stocks for the forth day
as selective profit booking continued. Some of the stocks
which had seen substantial gains corrected on disappointing
financial results. The CNX Mid-Cap 100 index closed the
day at 3439, a gain of 1 point.
broking company IL&FS Investmart made its entry on
the bourses today after its recent IPO. Issued at Rs125
per share, the stock opened on the NSE at Rs195 and saw
a high of Rs200 before closing at Rs183.
buying continued in India Bulls, also in the stock broking
business, which gained over 6 per cent to close at a new
life time high. The stock price has multiplied over 13
times from its IPO price of Rs19.
Chronicle reported an 80 per cent increase in first quarter
profits as compared to previous year. Revenues were higher
by over 90 per cent. The company had launched a new edition
of its newspaper in Chennai besides taking over the English-language
newspaper Asian Age.
Chronicle had also increased the advertisement rates during
the quarter. These helped the company report excellent
growth in both top line and bottom line. The stock surged
over 8 per cent after the announcement before closing
with gains of over 5 per cent.
battery manufacturer Exide Industries reported a 30 per
cent growth in first quarter profits on a revenue growth
of over 20 per cent. The stock was one of the significant
gainers among mid-caps, closing with gains of over 13
will buy out GMR Industries' 49 per cent stake in ING
Vysya Life Insurance for Rs200 crore. The company would
also subscribe to fresh warrants of ING Vysya Life Insurance
which when converted into equity shares would take the
total holding to over 50 per cent.
Bank reported a 43 per cent decline in first quarter profits
as compared to previous year. Total income was lower by
close to 10 per cent. The stock lost over 6 per cent after
Systel, Easun Reyrolle and Havells India were among the
best performing stocks among mid-caps.
Petrochem, Narmada Chematur and ITI Limited were among
the significant mid-cap losers.
The author does not have any position in the stocks specifically
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.
articles by Rex Mathew
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