labels: stock markets - india, markets - general
Rex Mathewnews
18 April 2006

If traders and analysts were not convinced that yesterday's gains were in fact a recovery from last week's correction and not a short technical bounce back, their doubts were allayed early in the morning itself. Indices opened the day with a significantly high positive gap from the previous day's close.

Both the Sensex and Nifty notched up gains of close to 2 per cent each soon after opening as technology stocks surged ahead. Gains in heavyweights like ONGC provided further strength to the indices.

Markets gained further after the RBI kept interest rates unchanged, but dropped soon after. Cement and metal stocks came under selling pressure, exerting pressure on the indices.

However, strong gains in Reliance Industries and select auto stocks saw the indices surging again later in the afternoon. Both indices went past their mid-session highs and went close to their all-time highs. The indices closed at new lifetime closing highs.

Sensex closed with gains of 282 points at 11822 and the Nifty closed higher by 93 points at 3518. Nifty April futures closed at a premium of 11 points to the spot index.

Technology stocks were the biggest gainers today, helped by the strong results and bonus announcement from TCS yesterday. Wipro, which is yet to announce its results, was the biggest gainer. The stock closed more than 5.5 per cent higher.

TCS opened with significant gains and was trading more than 7 per cent higher at one point. The stock lost part of the gains in afternoon trades and closed nearly 5.5 per cent higher.

Satyam was the other big winner from the technology space, closing nearly 4 per cent higher.

The big boys ONGC and Reliance Industries surged today and accounted for a significant portion of the gains. ONGC recovered from yesterday's decline and ended more than 5 per cent higher on higher oil prices.

Reliance Industries rallied in afternoon trades and ended more than 4.5 per cent higher. The company's refining margins are expected to rise further because of record crude oil prices.

Bajaj Auto surged in afternoon trades and closed with phenomenal gains of 8.5 per cent.

Glaxo, Dabur, L&T and VSNL were the other major gainers among index stocks.

As expected, stocks of oil marketing companies were the weakest on record crude oil prices. HPCL lost nearly 3 per cent while BPCL ended close to 2 per cent lower.

Cement stocks came under profit booking. Gujarat Ambuja Cement closed more than 1.5 per cent lower while ACC closed with modest losses.

Select metal stocks were also under pressure. Nalco and Tata Steel closed lower by a per cent each.

Tata Power, BHEL, Jet Airways and Zee Tele were among the other major losers.

Global markets / crude oil
US markets closed lower yesterday as oil prices continued their northward journey. Higher energy prices and record commodity prices may push up inflation and dampen consumer spending.
The Dow index lost close to 0.6 per cent while the S&P 500 ended nearly 0.3 per cent lower. The NASDAQ gave up nearly two-thirds of a per cent.

Asian markets had a very good day as most of the major indices closed at multiyear highs. Indonesia was the biggest gainer closing more than 2 per cent higher. Japan and Hong Kong were the other major gainers with around 1.3 per cent each. South Korea and Singapore ended with modest gains while Karachi gave up more than a per cent.

Crude oil prices maintained the up trend yesterday as concerns over the Iranian nuclear dispute rose further. June NYMEX crude oil futures closed at $71.98 per barrel yesterday. The commodity is trading above $72 in early European trades today.

Large-cap news flow

  • Jet Airways said the company sold and then leased back five aircrafts during the previous financial year 2005-06. The number of owned aircrafts has come down to 19 after this transaction. The company said the move is to maintain the right balance between owned and leased aircrafts.

  • MTNL said around 1,300 of its employees have opted for voluntary retirement and would be relieved by June 2006.

  • Ashok Leyland has raised prices of commercial vehicles by 2.5 per cent to offset higher input costs. The company expects the commercial vehicles segment to expand 10 per cent in the current year.

Mid-Cap Action
Mid-caps were also firm today, but the gains on the mid-cap index were nothing when compared to the large cap indices. The CNX Mid-Cap index gained 62 points, or 1.27 per cent, to end the day at 4911. Market breadth on the NSE was positive throughout the day.

Gabriel India, Noida Toll and BL Kashyap were among the major gainers in mid-caps on the NSE.

Welspun Gujarat, KEI and Man Industries were among the significant mid-cap losers on the NSE.

Mid-cap news flow

  • Oracle has acquired an additional 3.2 per cent stake in I-Flex Solutions, taking its total stake to over 50 per cent. With this, I-Flex has become a subsidiary of Oracle.

  • Television Eighteen would invest Rs250 crore in new ventures and acquisitions in the television and internet segments. The company is also planning to raise Rs300 crore from equity issues in the future.

  • Reports indicate that the two-wheeler facility of TVS Motors in Indonesia would start operations by the end of this year. The plant built at a cost of Rs200 crore would have a capacity for 2.5 lakh units per year.

  • Jubilant Organosys would raise up to $325 million from an overseas issue of debt or equity.

  • Simplex Infrastructure has received an order worth Rs210 crore for civil and structural work at the proposed oil refinery of Reliance Petroleum.

  • Subhash Projects has received orders totalling Rs137 crore under the rural electrification schemes for the state of Karnataka.

  • Greaves Cotton has inaugurated a new technology centre in Aurangabad to conduct research on diesel engines.

  • Sahara One has won the telecast rights to a cricket tournament starting this week at Abu Dhabi.

*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
11,821.57 + 281.89
NIFTY 3,518.10 +92.95
Last Update : 18 April, 2006 16:15:16 PM

Market Counters
Figures in Rupees

BSE 30
Scrip Name Open High Low Last Price
ACC 945.00 952.10 925.20 935.10
Bajaj Auto 2,795.00 3,023.75 2,752.00 3,003.90
Bharti Tele 399.00 407.90 397.10 406.55
BHEL 2,319.90 2,338.00 2,265.15 2,284.25
Cipla 665.00 702.90 665.00 679.80
Dr Reddys Lab 1,484.50 1,529.90 1,465.00 1,509.50
Grasim Indus 2,290.00 2,325.00 2,210.15 2,240.50
Guj Ambuja 120.80 121.90 114.30 115.80
HDFC Ltd 1,325.00 1,340.00 1,265.00 1,284.80
HDFC Bank Ltd 825.00 839.90 821.00 831.65
Hero Honda 855.00 887.00 851.15 878.80
Hindalco       199.75
HLL 276.00 283.00 275.00 279.70
ICICI Bank 593.00 594.90 583.05 587.35
Infosys 3,275.00 3,345.00 3,262.20 3,335.30
ITC 195.00 199.50 193.55 197.70
L&T 2,560.00 2,654.90 2,555.00 2,638.85
Maruti 887.00 903.00 877.00 881.05
NTPC 140.00 140.50 138.05 139.55
ONGC 1,251.00 1,316.90 1,251.00 1,307.55
Ranbaxy       465.55
Rel Energy 622.00 639.75 620.55 637.75
Reliance 851.00 895.90 851.00 891.25
Satyam 840.00 863.80 836.00 861.85
SBI 945.00 990.00 935.10 942.05
Tata Motors       932.30
Tata Power 598.00 603.00 583.00 589.55
Tata Steel 599.00 602.50 585.10 589.30
TCS 2,000.00 2,099.00 2,000.00 2,012.70
Wipro 547.00 573.50 547.00 570.15
 Last Update : 18 April, 2006 16:15PM

S&P CNX Nifty
Symbol Open High Low Last Price
RELIANCE 853.80 895.75 853.80 891.30
INFOSYSTCH 3255.35 3347.00 3255.35 3336.00
TCS 1978.00 2088.00 1978.00 2009.50
SATYAMCOMP 835.00 863.50 835.00 860.80
MTNL 193.00 199.80 190.65 191.50
CIPLA 720.00 720.00 662.00 679.80
BAJAJAUTO 2725.00 3020.00 2725.00 3001.75
SBIN 935.55 980.20 935.55 943.20
ACC 945.00 952.00 924.00 935.85
TATASTEEL 597.35 601.25 584.00 589.60
MARUTI 876.00 903.30 876.00 881.40
LT 2558.75 2649.00 2558.00 2633.70
GUJAMBCEM 119.00 120.90 114.40 115.85
WIPRO 545.00 574.50 542.05 570.90
HINDLEVER 276.00 283.40 275.10 279.70
TATAMOTORS 935.00 946.00 926.05 932.40
ONGC 1263.00 1316.00 1250.20 1307.10
HEROHONDA 849.80 886.80 849.80 878.80
VSNL 439.00 451.45 434.00 446.60
ITC 193.50 199.50 193.50 197.80
DRREDDY 1489.80 1525.90 1465.60 1508.95
SAIL 82.50 84.90 82.25 84.25
GRASIM 2250.00 2328.80 2217.10 2244.00
HINDALC0 201.00 204.70 195.50 199.85
BHEL 2300.00 2335.10 2261.25 2283.75
IPCL 262.90 265.90 255.05 260.90
HCLTECH 644.85 656.90 638.00 650.75
ZEETELE 255.45 259.00 247.10 251.90
ABB 2995.10 3118.00 2990.00 3091.20
RANBAXY 474.00 475.00 464.80 465.85
ICICIBANK 584.85 595.00 583.00 586.50
HDFC 1275.00 1291.95 1258.95 1282.15
TATAPOWER 595.00 602.90 582.10 589.80
REL 625.40 640.50 620.00 638.95
M&M 632.50 643.95 537.50 634.05
PNB 443.40 454.90 436.00 444.80
BHARTI 401.60 407.90 396.50 406.70
HDFCBANK 824.00 842.00 824.00 834.45
GLAXO 1440.00 1523.00 1439.10 1503.55
TATACHEM 265.00 270.00 262.20 268.45
NATIONALUM 317.40 320.55 308.00 310.75
GAIL 316.00 321.50 314.65 316.75
TATATEA 862.00 875.20 846.00 861.55
DABUR 129.00 133.90 128.00 133.10
ORIENTBANK 237.90 243.90 236.00 240.05
SUNPHARMA 858.00 894.80 845.10 878.90
JETAIRWAYS 985.00 999.80 970.00 974.65
SCI 159.00 166.20 159.00 165.15
HINDPETRO 330.00 330.00 320.50 321.60
BPCL 455.00 456.00 445.30 448.75
Last Update : 18 April, 2006

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Rex Mathew