|
Markets opened with a positive gap from yesterday's closing
levels and the Sensex went well past 7900 in early trades.
Some amount of selling emerged at higher levels and the
indices moved into negative territory within an hour of
opening.
Strong
buying in auto stocks and select oil stocks like BPCL
lifted the frontline indices and they were back to their
morning levels by early afternoon. The indices traded
within a range for the rest of the day and managed to
close at new lifetime highs.
Sensex
closed at 7900, a gain of 23 points, and the Nifty at
2416, a gain of 10 points. Nifty September futures closed
at a discount of 9 points to the spot index.
Maruti,
Tata Motors and BPCL were the biggest gainers on the Nifty
while Zee Tele, L&T and Infosys were the major losers.
Expectations
that the Fed would be less keen to raise interest rates
after the destruction caused by Hurricane Katrina helped
US markets to recover from early losses and close on a
flat note. Continuing rally in oil stocks also helped
the frontline indices.
The Dow and NASDAQ closed marginally in the negative while
the S&P 500 closed with marginal gains.
Crude
oil remained firm yesterday also as reports of more destruction
from the hurricane continue to come in. Markets are concerned
about more hurricane warnings in the next two months.
Crude futures for October delivery closed at $69.47 yesterday.
Crude futures are trading lower at $69 in early European
trades today.
Indian
ADR's had a mixed day yesterday in the US markets. Tata
Motors was the biggest gainer, closing almost 3 per cent
higher. ICICI Bank closed half-a-per cent higher. Dr Reddy's
and MTNL lost well over a per cent each while VSNL and
HDFC Bank lost well over half-a-per cent each.
Among
the technology ADR's, Satyam gained close to 3 per cent
while Infosys closed half-a-per cent higher. Wipro lost
well over a per cent.
TCS
and Infosys have been selected by Dutch banking major
ABN Amro to provide technology outsourcing services. The
Indian companies would provide application support and
enhancements to the core-banking platform of ABN Amro
under the multi-year deal. (See: TCS,
Infosys, Patni among ABN AMRO's five global IT vendors)
While
TCS would generate revenues of $260 million, Infosys has
been assured of business worth $140 million. This is the
largest contract ever won by Indian software companies.
Total revenues for TCS could reach $400 million and that
for Infosys around $250 million.
TCS
has also been selected as one of the preferred vendors
by ABN to provide application development for its strategic
banking platform. The contract is reportedly worth $15
million. TCS closed with gains while Infosys lost over
a per cent.
ONGC
has reportedly struck a new gas find in the KG basin.
The company is in the process of determining the extent
of reserves, which is expected to be significant. ONGC
holds 90 per cent stake in the field while Cairn Energy
holds 10 per cent. The stock closed flat.
According
to media reports, Tata Tea is close to acquiring two beverage
brands in North America. The reports mention that these
acquisitions could cost $100 million each. The company
had stated its intention to acquire more global brands
recently. The stock gained well over a per cent.
The
government may sell an 8-per cent stake in Maruti to financial
institutions through a competitive bidding process. The
ministry of heavy industry has reportedly supported the
proposal initiated by the ministry of finance. The government
currently holds an 18 per cent stake in Maruti Udyog.
(See: Govt to shed eight per cent stake in Maruti)
The
finance minister has indicated that he may reduce excise
duty on small cars in the next budget. This has been a
long-standing demand of the auto industry as duties and
taxes on automobiles are among the highest in India. Tata
Motors and Maruti Udyog would be the major beneficiaries
among listed companies.
Maruti
closed with gains of well over 5 per cent while Tata Motors
gained close to 5 per cent. Bajaj Auto and Hero Honda
were the other gainers from the sector, closing with gains
of 3 per cent each.
Ranbaxy
has sold its animal healthcare and fine chemicals business
to ICICI Ventures. The company said the deal would help
in focussing more on its core businesses and clinical
research. The deal was reportedly concluded at Rs120 crore.
The stock closed with marginal losses.
August
despatches of Gujarat Ambuja Cement were higher by 12
per cent as compared to the same month of previous year.
Production during the month was higher by 11 per cent.
The stock closed with gains of well over a per cent.
Cement
despatches of ACC for the month of August rose close to
5 per cent as compared to the same month of previous year.
Production for the month was higher by close to 9 per
cent. The stock gained over half-a-per cent.
There
are reports that the government would hike retail prices
of petroleum products by next week. Price of petrol is
expected to go up by Rs3-per litre and that of cooking
gas by Rs20 per cylinder.
Mid-Cap
Action
Mid-caps also maintained the steady up trend and traced
the movement in frontline stocks. The CNX Mid-Cap index
closed the day at a new lifetime high of 3713, a gain
of 19 points.
Global
ERP software major Oracle has indicated that it may consider
a full acquisition of mid-cap software company I-Flex
at a future date. Oracle had acquired 44 per cent stake
in I-Flex from Citigroup and is set to come out with an
open offer for another 20 per cent.
Pantaloon
Retail and Liberty Shoes would form a joint venture to
enter footwear retailing. Pantaloon would hold a 51 per
cent stake in the JV while Liberty would hold the rest.
Initial investment is set to be Rs25 crore.
The
board of directors of IL&FS Investmart has approved
a GDR issue to raise $90 million. The board also approved
setting up of subsidiaries in Dubai and Singapore.
The
board of directors of Phoenix Mills has approved a bonus
issue in the ratio of 4 shares for every share held. The
board has also approved a stock split in the ratio of
10 shares of Re1 each for every Rs10 share held.
Another
company, which approved a stock split today, was Taj GVK
Hotels. The company would split its shares in the ratio
of 5 shares of Rs2 each for every Rs10 share held.
Shareholders
of California Software have approved to raise up to Rs40
crore through a rights issue, preferential allotment or
GDR issue. The company is planning to complete the process
within the next 6 months.
Shareholders
of Kirloskar Brothers have approved a bonus issue in the
ratio of 1:1.
Heavy
buying was seen in select banking stocks led by Bank of
Rajasthan, which gained close to 15 per cent by late afternoon.
Centurion Bank and Yes Bank were among the other significant
gainers.
The
board of Mphasis BFL would meet next week to consider
a share buyback. Private equity firm Barings had recently
announced that it is shelving plans to sell its stake
in Mphasis BFL.
 Sterling
Biotech, Rico Auto and Four Soft were among the best performing
stocks among mid-caps.
ETC
Networks, Aztec Software and Scandent Solutions 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
|
7,899.77 |
+
23.62 |
| NIFTY
|
2,415.80
|
+
10.05 |
Last
Update : 2 September, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| MARUTI
UDYOG |
495.00
|
522.80
|
495.00
|
510.95 |
| TATA
MOTORS |
472.50
|
498.50
|
472.00
|
492.25 |
| BAJAJ
AUTO |
1,465.00
|
1,509.85
|
1,464.90
|
1,504.45 |
| TATA
IRON AND STEEL CO. LTD. |
398.50
|
407.40
|
393.55
|
405.30 |
| HEROHONDA
M |
668.00
|
701.00
|
668.00
|
683.05 |
| TATA
POWER |
455.00
|
470.00
|
453.00
|
468.20 |
| GUJARAT
AMBUJA CEMENTS LTD. |
68.10
|
69.00
|
67.50
|
68.70 |
| BHARTI
TELE |
319.00
|
322.50
|
315.05
|
319.70 |
| CIPLA
LTD. |
346.00
|
349.40
|
344.00
|
347.15 |
| STATE
BANK OF INDIA |
801.80 |
809.40
|
792.00
|
805.65 |
| TCS
LTD |
1,430.00
|
1,440.00
|
1,415.00
|
1,429.25 |
| DR.REDDY'S
LABORATORIES LTD. |
781.00 |
787.40
|
775.00
|
780.75 |
| ASSOCIATED
CEMENT COMPANIES LT |
479.75
|
483.00
|
474.05
|
481.50 |
| HDFC
BANK LT |
646.00
|
649.45
|
630.05
|
636.05 |
| WIPRO
LTD. |
372.00
|
375.00
|
366.00
|
373.70 |
| RELIANCE
ENR |
573.65
|
583.00
|
572.00
|
576.95 |
| RELIANCE
|
727.00
|
732.90
|
720.00
|
730.85 |
| BHEL
|
1,065.10
|
1,080.00
|
1,060.10
|
1,080.00 |
| HINDUSTAN
LEVER LTD. |
169.80
|
169.80
|
165.20
|
169.00 |
| I
T C LTD |
1,743.00
|
1,744.90
|
1,721.10
|
1,734.10 |
| LARSEN
& TOUBRO LTD. |
1,340.85
|
1,348.00
|
1,305.25
|
1,311.85 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,430.00
|
2,449.90
|
2,380.00
|
2,384.65 |
| HOUSING
DEVELOPMENT FINANCE CO |
917.00
|
922.00
|
902.50
|
903.00 |
| GRASIM
INDUSTRIES LTD. |
1,288.00
|
1,310.00
|
1,279.00
|
1,290.00 |
| NTPC
LTD |
103.85
|
104.40
|
102.50
|
103.40 |
| ICICI
BANK L |
487.00
|
489.90
|
479.00
|
481.75 |
| RANBAXY
LABORATORIES LTD. |
548.50
|
551.00
|
538.10
|
542.60 |
| HINDALCO
IN |
143.00
|
145.45
|
142.10
|
143.15 |
| SATYAM
COMP |
529.70
|
533.00
|
523.65
|
527.70 |
Last
Update : 2 September, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
725.00
|
732.60
|
720.10
|
730.50 |
| MARUTI
|
493.00
|
522.00
|
493.00
|
511.65 |
| BAJAJAUTO
|
1461.00
|
1509.90
|
1461.00
|
1503.00 |
| TISCO
|
394.25
|
407.40
|
393.50
|
405.60 |
| TATAMOTORS
|
473.00
|
498.80
|
472.95
|
492.70 |
| INFOSYSTCH
|
2425.00
|
2449.80
|
2380.00
|
2385.70 |
| SATYAMCOMP
|
538.40
|
538.40
|
523.15
|
528.60 |
| SBIN |
802.20 |
809.55
|
791.25
|
806.10 |
| ONGC
|
984.00
|
998.70
|
973.15
|
978.30 |
| TCS
|
1430.00
|
1440.00
|
1415.05
|
1427.20 |
| ZEETELE
|
198.80
|
201.40
|
189.05
|
190.70 |
| HEROHONDA
|
670.00
|
702.50
|
655.15
|
684.50 |
| VSNL
|
373.50
|
378.90
|
368.50
|
373.75 |
| BPCL
|
369.80
|
391.90
|
369.00
|
384.30 |
| SAIL
|
63.50
|
64.50
|
62.60
|
63.35 |
| LT
|
1338.00
|
1345.00
|
1308.65
|
1312.35 |
| WIPRO
|
372.00
|
376.50
|
366.35
|
374.30 |
| REL
|
565.00
|
582.75
|
564.00
|
577.95 |
| GUJAMBCEM
|
68.50
|
69.20
|
67.15
|
68.80 |
| TATAPOWER
|
456.95
|
471.75
|
451.00
|
469.55 |
| ACC
|
477.60
|
483.50
|
474.55
|
480.85 |
| ITC
|
1737.75
|
1744.00
|
1720.25
|
1732.10 |
| BHARTI |
316.10 |
322.25
|
302.15
|
320.20 |
| RANBAXY
|
550.00
|
550.00
|
538.50
|
542.75 |
| HINDLEVER
|
166.00
|
170.00
|
165.50
|
169.10 |
| HDFCBANK
|
631.00
|
640.45
|
631.00
|
636.30 |
| GRASIM
|
1301.50
|
1307.00
|
1277.00
|
1282.65 |
| HINDPETRO
|
293.80
|
296.75
|
287.05
|
295.15 |
| HDFC
|
920.90
|
925.00
|
901.00
|
903.50 |
| ICICIBANK
|
489.90
|
489.90
|
478.50
|
481.50 |
| M&M
|
367.80
|
367.80
|
360.10
|
361.10 |
| IPCL
|
191.00
|
191.85
|
189.05
|
191.25 |
| HINDALC0
|
143.90
|
145.20
|
142.25
|
143.25 |
| PNB
|
401.05
|
407.00
|
398.10
|
405.40 |
| HCLTECH
|
459.90
|
459.90
|
447.25
|
450.50 |
| DRREDDY
|
797.50
|
799.00
|
775.00
|
781.30 |
| TATATEA
|
824.90
|
836.85
|
820.00
|
832.00 |
| DABUR
|
153.95
|
158.00
|
151.25
|
155.40 |
| BHEL
|
1075.00
|
1084.00
|
1062.00
|
1073.10 |
| GAIL
|
239.95
|
239.95
|
235.40
|
236.90 |
| ABB
|
1610.00
|
1705.00
|
1605.00
|
1670.85 |
| SCI
|
159.10
|
160.00
|
156.65
|
159.60 |
| MTNL
|
127.00
|
129.00
|
125.25
|
128.20 |
| COLGATE
|
262.00
|
264.00
|
252.10
|
256.20 |
| ORIENTBANK
|
264.90
|
264.90
|
254.50
|
257.30 |
| CIPLA
|
354.50
|
354.50
|
344.20
|
347.35 |
| SUNPHARMA
|
638.00
|
638.80
|
628.00
|
633.60 |
| TATACHEM
|
190.00
|
190.90
|
185.15
|
187.85 |
| NATIONALUM
|
174.80
|
174.90
|
171.00
|
172.85 |
| GLAXO |
861.00 |
878.00
|
861.00
|
870.10 |
Last
Update : 2 September, 2005, 16:00PM
| 
