labels: stock markets - india, markets - general
Indices close with marginal losses even as global markets declinenews
07 March 2006

The continued weakness in the US and substantial losses across Asia were expected to induce a correction in Indian markets today. Though the indices were subdued for most of the day, buying in select heavyweights in afternoon trades reduced the losses significantly.

The markets opened with marginal gains and traded within a band till around noon. The indices declined around half a per cent each by early afternoon on selling pressure in metal and technology stocks.

However, strong buying in cement stocks in the last hour and the continuing rally in engineering stocks pulled up the markets.

The Sensex saw a new lifetime intra-day high of 10753 in early trades. The Nifty went very close to its lifetime high of 3194 but fell short.

Sensex closed at 10726, a loss of 9 points, and the Nifty closed lower by 7 points at 3183. Nifty March futures closed at a discount of 17 points to the spot index.

Metal stocks were weak today, losing part of the gains from the last few sessions. SAIL declined 2 per cent while Tata Steel gave up around a per cent. Nalco ended with losses of close to 1.5 per cent.

Dabur was the biggest loser among index stocks, ending more than 3 per cent lower.

Satyam was the biggest loser among technology stocks, closing with losses of over 2 per cent. HCL Tech gave up 1.5 per cent while Infosys declined over a per cent.

Tata Motors and Tata Power declined more than a per cent each after the spectacular post-budget rally.

Sun Pharma and ICICI Bank were the other major losers.

Cement companies were the best performers in today's market as all of them saw a massive surge in late afternoon trades. ACC, the best performer among index stocks, ended nearly 7 per cent higher.
Gujarat Ambuja closed with gains of over 2.5 per cent while Grasim added over 1.5 per cent.

HLL remained firm throughout the day and closed with gains of over 3.5 per cent.

Engineering stocks resumed their rally, led by Siemens which ended with gains of around 8.5 per cent. L&T gained over 3.5 per cent while ABB closed nearly 3 per cent higher.

OBC, Tata Chemicals, Cipla and SCI were among the other gainers.

US indices declined for the third straight day yesterday as concerns about rising interest rates surfaced once again. The fresh concerns are a result of rising bond yields in the US. The decline in oil stocks following a correction in crude oil prices also affected the indices.
The Dow closed more than 0.5 per cent lower while the S&P 500 and the NASDAQ ended around 0.7 per cent lower.

Asian markets were weak across the board following the continuing decline in US indices. Japan, Hong Kong and Singapore lost around a per cent each while South Korea ended more than 2 per cent lower. Karachi recovered over a per cent after yesterday's crash which wiped out 4 per cent of the index.

Crude oil lost around 2 per cent yesterday on indications that the OPEC would not reduce production quotas immediately. Analysts are also expecting a further rise in US inventory of oil this week. April crude futures closed at $62.41 per barrel on the NYMEX yesterday. The commodity is trading with modest gains in early European trades today.

Tata Steel has raised $500 million from an external commercial borrowing programme. The loan has a maturity of 7 years and carries an interest of 45 basis points above LIBOR.

Tata Chemicals has acquired the balance 36.5 per cent in British chemical company Brunner Mond for Rs290 crore. With this transaction Brunner Mond has become a 100-per cent subsidiary. Tata Chemicals had acquired 63.5 per cent of Brunner Mond last year.

VSNL has entered into an agreement to offer wi-fi internet connectivity in 500 outlets of food chain Pizza Corner and Coffee World over the next 5 years.

Satyam has set up an offshore development centre in Bangalore for one of its key clients INVISTA, a global manufacturer of fibres and polymers.

News agency reports quoting company management claim that Indian Oil is in talks to acquire the oil assets of Canadian company Niko Resources. Niko is a minor partner in some of the Indian fields, including the ones operated by Reliance.

These reports also indicate that Indian Oil would receive around Rs6,300 crore worth of oil bonds while its subsidiary IBP would receive oil bonds worth Rs400 crore. It is not clear if these would be received during the current financial year or next. The government had last month cleared the issue of oil bonds worth Rs5,750 crore for all oil marketing companies.

Unconfirmed reports indicate that Gail is planning to take Shell's LNG terminal at Hazira on a 4-year lease. The reports indicate that Gail would bring in liquefied gas on its own which would be re-gassified at the Shell terminal. The company is reportedly planning to supply gas to the revived Dabhol power project through this route.

Mid-Cap Action

Mid-caps were completely unaffected by the subdued trend in the large stocks. Market breadth was positive in the morning, but declined towards the end of the day. The CNX Mid-Cap index gained 43 points to end the day at 4645, a new lifetime high.

Reliance Natural Resources was one of the best performers in the mid-cap space, closing at the 20 per cent upper circuit. The management stated yesterday that they have asked Reliance Industries to give the company the right of first refusal for 40 per cent of all gas finds, including future discoveries, by RIL. RIL's response is not known. At present, RNRL has the right to buy up to 40 per cent of the output from the existing gas fields of RIL.

Real estate stocks gained substantially following a positive Supreme Court verdict on the sale of NTC mill land in Mumbai. As per the court decision, the portion of mill property to be kept as open space by developers has come down significantly. Stocks like IndiaBulls, Bombay Dyeing, Godrej Industries, Ruby Mills and Morarjee Realties were the major gainers.

Stocks of companies like Hindustan Motors and Bata India, which have property in Kolkata and do not in any way benefit from the decision, also gained substantially.

Subex Systems would acquire a US-based company for $2 million in cash. Subex said the acquisition would bring large customers in the US markets and strengthen the company's position.

has announced that it would sell its foods division to an associate company, Godrej Tea Limited, for Rs70 crore. The company would receive Rs40 crore in cash and the balance in shares of Godrej Tea.

Shasun Chemicals has received UK regulatory approval for one of its formulation manufacturing facilities.

Natco Pharma has launched an anti-cancer drug for treatment of leukaemia.

Sunil Hitech Engineers has won 2 contracts for work at 2 power plants. The orders are worth a total of Rs15 crore.

HB Stockholdings, VLS Finance and Nocil were among the major gainers in mid-caps.

Visual Soft, Orient Abrasives and Nagarjuna Constructions were among the significant mid-cap losers on the NSE.

*Disclaimer: The author may have positions in some of 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.



Market: Indices

National Markets
Gain (+) / Loss (-)

SENSEX
10,725.67 - 9.69
NIFTY 3,182.80 -7.60
Last Update : 7 March, 2006 16:00:16 PM

Market Counters
Figures in Rupees

BSE 30
Scrip Name Open High Low Last Price
ACC 684.00 732.95 664.80 729.05
Bajaj Auto 2,720.00 2,779.90 2,720.00 2,727.10
Bharti Tele 405.80 411.90 401.00 402.60
BHEL 2,150.00 2,178.00 2,131.00 2,136.40
Cipla 567.90 579.75 567.00 570.50
Dr Reddys Lab 1,311.00 1,329.00 1,300.05 1,306.55
Grasim Indus 1,798.00 1,842.00 1,790.00 1,828.75
Guj Ambuja 91.50 93.65 90.00 93.25
HDFC Ltd 1,330.05 1,358.50 1,330.00 1,343.75
HDFC Bank Ltd 751.00 764.45 746.00 758.00
Hero Honda 885.80 890.00 877.00 887.05
Hindalco 168.00 169.20 163.25 167.20
HLL 244.95 254.25 244.95 252.35
ICICI Bank 612.50 613.90 597.30 600.65
Infosys 2,840.00 2,845.25 2,805.00 2,819.65
ITC 180.00 181.00 176.30 177.95
L&T 2,435.00 2,525.25 2,417.10 2,493.80
Maruti 921.00 926.90 906.50 917.00
NTPC 136.90 139.65 136.55 137.70
ONGC 1,172.00 1,175.00 1,151.10 1,160.20
Ranbaxy 447.50 451.00 439.55 441.75
Rel Energy 658.90 660.00 648.00 651.15
Reliance 733.10 739.40 728.90 731.85
Satyam 798.00 798.00 781.50 785.55
SBI 899.00 909.35 881.55 903.60
Tata Motors 932.00 932.00 908.20 911.45
Tata Power 576.90 586.00 567.10 569.50
Tata Steel 477.00 477.00 463.05 467.70
TCS 1,749.00 1,758.00 1,717.25 1,722.75
Wipro 528.00 533.00 520.10 522.60
Last Update : 7 March, 2006 16:02 PM

S&P CNX Nifty
Symbol Open High Low Last Price
RELIANCE

733.30 740.00 729.00 732.50
INFOSYSTCH

2860.00 2860.00 2803.00 2819.50
SATYAMCOMP

800.00 800.00 782.00 785.50
SBIN

900.00 908.90 881.60 904.15
TATAMOTORS

930.00 931.00 907.55 911.40
ACC

685.50 735.00 678.10 731.35
HINDLEVER

245.90 254.10 245.90 252.30
ITC

179.00 180.90 176.25 177.85
LT

2414.00 2525.00 2414.00 2499.75
TATASTEEL

473.30 474.80 450.15 468.30
MARUTI

922.00 926.90 907.00 918.80
BHEL

2165.00 2179.00 2130.05 2139.25
HDFC

1334.00 1358.95 1327.40 1342.10
ONGC

1169.00 1174.30 1150.35 1162.15
M&M

635.05 651.45 633.40 636.80
GRASIM

1800.00 1844.85 1789.25 1833.15
RANBAXY

448.00 450.00 439.20 441.55
REL

653.95 660.00 649.35 653.00
ICICIBANK

612.00 613.70 597.20 600.90
HINDALC0

165.00 169.20 163.35 166.95
SAIL

69.45 69.50 67.80 68.00
VSNL

382.95 386.80 375.00 381.90
GUJAMBCEM

91.20 93.70 90.00 93.30
DRREDDY

1325.00 1325.00 1301.00 1308.35
CIPLA

570.10 578.90 555.00 571.55
MTNL

148.40 151.90 145.90 150.65
WIPRO

530.00 530.00 520.10 522.90
BAJAJAUTO

2740.00 2781.00 2720.20 2727.85
HCLTECH

638.50 645.00 618.00 624.90
TATAPOWER

575.00 586.00 567.00 571.25
TCS

1740.15 1750.00 1720.00 1724.70
TATATEA

924.00 935.00 909.10 919.85
HDFCBANK

749.25 764.00 749.25 757.00
ABB

2716.00 2810.00 2678.00 2794.80
BHARTI

404.00 411.85 400.50 403.00
IPCL

239.90 244.70 238.00 239.60
TATACHEM

248.50 254.85 247.60 252.50
GAIL

279.60 285.65 277.60 279.65
HEROHONDA

889.90 892.00 875.25 887.85
PNB

449.00 454.00 441.25 448.35
JETAIRWAYS

986.00 1013.00 986.00 993.70
DABUR

117.90 117.95 113.90 114.25
ORIENTBANK

239.00 244.85 238.70 243.40
NATIONALUM

293.05 293.80 285.00 290.90
SUNPHARMA

704.00 787.00 704.00 766.15
ZEETELE

180.50 180.95 175.35 179.00
SCI


150.85 153.40 149.75 152.40
BPCL

425.00 428.70 417.00 421.55
HINDPETRO

328.00 333.80 325.00 326.40
GLAXO

1389.00 1399.00 1356.05 1372.75
Last Update : 7 March, 2006 16:00PM


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Indices close with marginal losses even as global markets decline