labels: stock markets - india, markets - general
Rex Mathewnews
Rex Mathew
10 May 2006

Markets extended their rally to the eighth straight session, helped once again by ONGC. The momentum is very strong as heavyweights are alternating their leadership role, taking the indices higher.

After opening firm, markets held firm till mid-afternoon trades when the indices dipped sharply. They recovered within minutes and surged to new highs, helped by a fresh rally in metal stocks.

Sensex touched a new lifetime high of 12624 today while the Nifty set a new high of 3758.

Sensex closed with gains of 98 points at 12612 and the Nifty added 33 points to close at 3754. Nifty May futures closed at a discount of 6 points to the spot index.

ONGC was once again the star of the day as the stock gained another 3 per cent to take total gains from the last two sessions to over 7 per cent. After a subdued start, ONGC perked up on reports of a gas discovery. The stock rallied further in afternoon trades to new lifetime highs.

Banking stocks were firm throughout the day. ICICI Bank was the biggest gainer in the sector, closing nearly 3.5 per cent higher. HDFC Bank added more than 2 per cent. Reports of RBI delaying permission to open branches in the wake of the IPO scam did not have any impact on the stocks.

Among PSU banks, OBC ended nearly 4 per cent higher while SBI added more than 2.5 per cent. PNB also closed more than 2.5 per cent higher.

Dabur was the biggest gainer among index stocks, closing nearly 5 per cent higher.

Aluminium stocks surged in afternoon trades on expectations of higher metal prices. Nalco added nearly 3 per cent. Record copper prices gave a further push to Hindalco, which ended nearly 4.5 per cent higher.

Among steel stocks, SAIL ended more than 2.5 per cent higher while Tata Steel added a per cent.

Tata Power and IPCL were the other major gainers among index stocks.

Cement stocks came under pressure in afternoon trades on reports that the government has called a meeting of cement manufacturers to discuss a price cut. Gujarat Ambuja lost nearly 3 per cent while Grasim and ACC ended more than 2.5 per cent each lower.

Zee Tele came under pressure after rallying earlier this week and closed more than 2.5 per cent lower.

Auto stocks saw some profit booking after yesterday's gains. Maruti lost nearly 1.5 per cent while Tata Motors and M&M ended around a per cent each lower.

BPCL, Glaxo and MTNL were among the other losers.

Global markets / crude oil
US markets were mixed yesterday as expectations of a pause in interest rate hikes were countered by weakness in technology stocks. The US Fed is meeting today and markets expect short-term rates to go up by 25 basis points. Any indication of a pause in rate cuts would most certainly lift the indices today. Technology stocks declined after a profit warning from Dell.

The Dow closed with gains of close to 0.5 per cent while S&P 500 index closed marginally higher. NASDAQ declined and closed with losses of over 0.25 per cent.

Asian markets were mixed for the second day as the Japanese index remained under pressure and lost nearly 1.5 per cent. Hong Kong lost around 0.3 per cent while Thailand closed marginally lower. Shanghai maintained it's up trend and added another per cent, taking the total gains over the last 3 sessions to over 7 per cent.

Crude oil prices made a modest recovery after the substantial decline earlier this week. Near month NYMEX futures closed higher by 88 cents at $70.69 per barrel yesterday. The commodity is trading with marginal gains in European trades today.

Large-cap news flow

  • There are unconfirmed reports that ONGC has made a large discovery of natural gas in Assam. The company said it has signed and agreement with US company Halliburton to re-develop some of the oil fields in Assam to increase output. News agency reports also indicate that ONGC may get exploration rights in Cuba and Sri Lanka.
  • Reliance Industries has submitted a letter of intent to state owned Saudi oil major Aramco for joint development of a petrochemical complex in Saudi Arabia, according to unconfirmed media reports. The complex would be linked to an oil refinery being built by Aramco. Other global oil companies are also reportedly in the race to partner Aramco in the project.
  • Sun Pharma would convene a shareholders' meeting early next month to approve the de-merger of its research division into a separate company.
    Mid-Cap Action

Mid-caps maintained their up trend today as well. The index opened firm, declined and lost all its gains before recovering later in the day. The CNX Mid-Cap index gained 34 points, or 0.61 per cent, to end the day at 5318.

Newly listed Kamdhenu Ispat continued its dream run today as well and closed the day locked in 20 per cent upper circuit. The stock has gained nearly 120 per cent from its issue price in 2 sessions.

Eastern Silk, Malwa Cotton, Shah Alloys and BBTC all closed with 20 per cent gains on the NSE. Sunil Hitech, Archies, Thirumalai Chemicals, Bombay Rayon Fashions and Welspun Gujarat were among the other gainers.

Surana Telecom, Greenply, Sterling Tools, Kakatiya Cements, Mangalam Timber, Bindal Agro and Mangalam Cement were among the significant mid-cap losers on the NSE.

Mid-cap news flow

  • Reliance Natural Resources would raise up to $300 million from an FCCB issue. The bonds are convertible after a period of five years at a price of Rs37 per equity share. The bonds would be listed on Singapore Stock Exchange.

  • US based Federal Moghul has acquired 24.64 per cent of auto ancillary company Goetze India from Indian co-promoters at a price of Rs222.5 per share. Total stake of Federal Moghul would go up to over 50 per cent afte the acquisition.

  • The board of Pratappur Sugar, which was acquired by Bajaj Hindustan earlier, has approved major expansion plans. The company would raise the crushing capacity of existing plant to 6,000 tonnes besides setting up a new 7,000 tonne unit. The company is also considering various options to raise total capacity to 40,000 tonnes.

  • Pratappur Sugar would raise Rs230 crore from a preferential issue of equity or related instruments to promoters. The company would also raise an additional Rs600 crore through FCCB / GDR issue. FII investment limit would be raised to 74 per cent and the shares would be split in the ratio of 10 shares of Re1 each for every Rs10 share.

  • The board of Triveni Engineering would meet tomorrow to consider a restructuring of its businesses.

  • The board of Cyber Media would meet next week to consider a merger of 2 of its subsidiaries with itself.

  • Greenply Industries would issue nearly 30 lakh equity shares on a preferential basis to promoters and outside investors. The company would also issue 5.45 lakh convertible warrants to promoters. The issue price has not been disclosed.

  • The board of VIP Industries would consider the details of its proposed amalgamation with Blow Plast.

*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.

Other reports by Rex Mathew

General reports on Markets

Market: Indices
National Markets
Gain (+) / Loss (-)

SENSEX
12,612.38 + 98.52
NIFTY 3,754.25 + 33.70
Last Update : 10 May, 2006 16:00:16 PM

Market Counters
Figures in Rupees

BSE 30
Scrip Name Open High Low Last Price
ACC 1,004.70 1,009.40 972.00 977.70
Bajaj Auto 3,170.00 3,247.00 3,170.00 3,187.10
Bharti Tele 419.90 425.00 414.00 416.05
BHEL 2,401.00 2,420.00 2,380.20 2,391.50
Cipla 276.90 277.25 272.00 272.35
Dr Reddys Lab 1,665.00 1,675.00 1,610.15 1,640.60
Grasim Indus 2,435.85 2,455.00 2,363.00 2,372.20
Guj Ambuja 121.45 121.45 116.50 117.00
HDFC Ltd 1,348.00 1,365.70 1,336.00 1,361.85
HDFC Bank Ltd 860.00 877.00 853.00 869.35
Hero Honda 887.20 893.00 874.10 880.00
Hindalco 230.00 243.45 230.00 239.20
HLL 281.85 282.80 279.00 279.85
ICICI Bank 642.00 668.95 640.00 661.30
Infosys 3,244.70 3,272.00 3,235.15 3,255.20
ITC 207.00 208.00 204.35 205.05
L&T 2,780.00 2,834.80 2,780.00 2,813.55
Maruti 968.00 974.00 945.20 951.15
NTPC 130.90 131.95 129.25 129.65
ONGC 1,442.00 1,514.00 1,371.25 1,484.45
Ranbaxy 508.00 515.00 504.00 505.00
Rel Energy 629.00 632.75 626.00 628.70
Reliance 1,154.00 1,195.00 1,138.55 1,170.10
Satyam 792.25 796.95 780.00 783.65
SBI 990.25 1,007.40 978.00 1,001.25
Tata Motors 990.50 993.00 970.00 974.95
Tata Power 567.00 590.80 566.00 587.90
Tata Steel 661.00 674.70 661.00 667.85
TCS 2,018.25 2,040.00 2,008.00 2,023.95
Wipro 538.00 548.00 537.00 541.45
 Last Update : 10 May, 2006 16:00 PM

S&P CNX Nifty
Symbol Open High Low Last Price
RELIANCE 1160.00 1175.00 1137.25 1169.80
ONGC 1428.00 1513.90 1426.35 1484.20
SBIN 977.50 1007.75 977.50 1002.15
TATASTEEL 664.80 675.00 662.05 668.10
ACC 1004.90 1008.00 970.00 977.25
HINDALC0 231.10 243.80 231.10 239.45
ICICIBANK 640.00 670.00 636.05 660.75
SAIL 88.20 95.25 87.80 94.15
INFOSYSTCH 3235.00 3272.00 3235.00 3256.25
TATAMOTORS 988.65 994.00 971.00 975.65
SATYAMCOMP 790.25 800.00 780.15 784.00
HINDLEVER 284.00 284.00 278.00 279.85
HDFCBANK 855.00 879.80 853.45 871.05
LT 2780.00 2835.00 2780.00 2814.00
BAJAJAUTO 3202.00 3250.00 3180.00 3190.80
HDFC 1369.80 1372.00 1339.95 1362.80
PNB 477.00 493.30 477.00 486.90
GRASIM 2434.95 2455.00 2361.10 2371.50
MTNL 220.00 221.50 215.15 217.50
GUJAMBCEM 120.75 121.00 116.25 116.90
IPCL 286.55 295.80 284.20 294.40
VSNL 484.00 488.50 475.20 479.95
ITC 207.00 208.00 204.35 205.05
TCS 2044.40 2047.00 2002.30 2021.70
DRREDDY 1671.90 1674.00 1611.00 1643.55
MARUTI 970.00 972.50 945.15 952.95
GAIL 291.50 294.10 286.60 287.60
WIPRO 538.00 547.50 538.00 542.60
BHEL 2405.00 2418.00 2380.00 2392.10
DABUR 154.70 163.00 154.70 161.75
TATAPOWER 564.50 587.80 564.00 585.55
RANBAXY 507.80 514.90 503.00 505.10
BHARTI 422.40 422.40 414.20 417.15
HEROHONDA 886.00 890.00 872.25 879.75
M&M 710.00 716.45 698.00 703.15
ZEETELE 289.10 290.00 277.05 279.25
HCLTECH 595.10 605.00 591.05 601.75
TATATEA 874.95 884.80 856.00 862.60
TATACHEM 269.00 272.80 265.00 268.80
NATIONALUM 318.20 325.50 316.40 323.85
REL 628.00 630.70 624.40 629.00
CIPLA 276.00 277.00 272.00 273.40
ORIENTBANK 246.00 256.40 246.00 255.50
BPCL 473.70 473.70 460.45 464.10
HINDPETRO 355.00 360.00 346.50 357.45
ABB 3299.00 3299.00 3239.00 3248.95
JETAIRWAYS 955.00 970.00 945.00 961.80
SCI x 162.50 167.60 162.50 167.60
GLAXO 1475.00 1480.00 1446.05 1450.40
SUNPHARMA 891.00 913.95 880.55 901.55
Last Update : 10 May, 2006 16:00 PM


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Rex Mathew