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

Markets were expected to decline today on weak global cues further affecting market sentiment hit by yesterday's correction. The indices opened on a very weak note and the Sensex tumbled more than 200 points while the Nifty gave up over 60 points from yesterday's closing levels.

The pull back came soon after and steadily lifted the indices, helping them to regain more than half of their early losses. The indices gained further in early afternoon trades when cement stocks started a sharp decline and pulled down the indices.

Another attempt at recovery later in the afternoon took the indices back to their highs of the day. But this was followed by a sharp sell-off, which saw the indices slumping close to the lows of the day
Sensex closed with losses of 150 points at 12285 and the Nifty lost 51 points to close at 3650. Nifty May futures closed at a discount of 12 points to the spot index.

Cements stocks were weak right from early trades, but recovered part of their losses by noon. They slipped in early afternoon trades after reports of the commerce ministry taking a tough stand on the price issue.

Gujarat Ambuja was the biggest loser among index stocks, closing more than 7.5 per cent lower. ACC lost 7 per cent while Grasim closed over 2.5 per cent lower.

Reliance Industries continued its decline from yesterday and lost another 4 per cent. The stock has declined over 7 per cent in the last 2 sessions. IPCL ended with losses of more than 2.5 per cent.

RPL also had a weak session as the anticipated institutional buying has not happened. The stock slipped nearly 2 per cent and closed at Rs83.9.

ONGC gave up nearly 2.5 per cent, taking the losses over the last 2 sessions to over 4 per cent.

Stocks of oil marketing companies declined further as the left parties stepped up their resistance against a fuel price increase.

PCL ended more than 4 per cent lower while Indian Oil lost more than 3 per cent. HPCL was relatively better off, closing over a per cent lower.

ICICI Bank, the biggest star of the recent banking rally, gave up further ground and closed 4 per cent lower.

OBC was the biggest loser among PSU banking stocks, closing more than 2.5 per cent lower. SBI gave up nearly 2 per cent while PNB closed more than 0.5 per cent lower.

MTNL was another major loser, closing more than 3 per cent lower.

The weakness in frontline indices has had no effect on Dabur over the last 2 days. The stock added another 4.5 per cent to close at a new lifetime high.

Auto stocks showed signs of buying interest returning to the sector, despite a possible fuel price hike. Hero Honda closed nearly a per cent higher while Tata Motors and Bajaj Auto added around 0.5 per cent each.

Tata Steel bounced back from yesterday's decline and gained more than 2 per cent at one point. The stock gave up part of the gains later and closed less than a per cent higher.

L&T, Dr. Reddy's and HDFC Bank were the other gainers.

Global markets / crude oil
US markets had one of their worst falls in recent months on renewed concerns about rising interest rates. The continued boom in commodity prices and the bounce back in oil prices may stoke inflation and affect consumption. Technology stocks were once again the weakest as the sentiment was poor for most of the week.

The Dow closed with losses of nearly 1.25 per cent while S&P 500 index closed more than 1.25 cent lower. NASDAQ index slumped more than 2 per cent.

Asian markets took the cue from the US and declined substantially today. Indonesia closed more than 1.75 per cent lower while the Japanese index gave up more than 1.5 per cent to touch a nearly 2-month low. Hong Kong and South Korea lost over 1.3 per cent each. However, Shanghai was unperturbed by the weakness in other markets and surged more than 4 per cent. The Shanghai index has gained over 10 per cent in the last 5 sessions.

Crude oil prices gained nearly 2 per cent for the second day yesterday as funds built up their positions on expectations of rising demand in summer months. Shortage of refining capacity because of shutdowns would tighten the supply of refined products. Near month NYMEX futures closed higher by $1.19 at $73.32 per barrel yesterday. The commodity has slipped over a per cent in European trades today.

Large-cap news flow

  • Reliance Communication Ventures would change its name to Reliance Communications. The company has called a shareholder's meeting during the first week of June to consider the merger of Reliance Infocomm, Reliance Communication Infrastructure and six other privately held companies with itself. The meeting would also consider the sponsored GDR/ADR programme.
    Mid-Cap Action

Movement in mid-cap stocks were in line with the frontline indices. After opening weak, the mid-cap index recovered most of its losses by noon before slipping again. The CNX Mid-Cap index lost 55 points, or 1.04 per cent, to end the day at 5203. Market breadth was negative on the NSE.

Novopan India, Pritish Nandy, Mahindra Gesco, HTMT, Malwa Cotton and BBTC were among the other mid-cap gainers.

Dalmia Cements, Kesoram Industries, OCL India, Gujarat Alkali and India Infoline were among the significant mid-cap losers on the NSE.

Mid-cap news flow

  • Apollo Hospitals would raise up to $115 million from an overseas issue. The company would also make an issue of convertible warrants to the promoters.

  • Blue Star would go in for a stock split in the ratio of 5 shares of Rs2 each for every Rs10 share.

  • Geojit Financial Services has formed a joint venture broking company in Saudi Arabia in association with local partners.

  • Unitech has announced a bonus issue in the ratio of 12 shares for every share held. The company would also split its stock in the ratio of 5 shares of Rs2 each for every Rs10 share.

  • The board of Godrej Industries would meet during the last week of this month to consider a stock split.

  • The board of Blow Plast is meeting today to consider the details of the proposed merger with VIP Industries.

  • Indraprastha Medical has set up a new hospital in Noida, close to Delhi. The 57-bed hospital was built at a cost of Rs15 crore.

  • Revathi Equipment has acquired a 26-per cent stake in privately held manufacturer of process technology catalyst for Rs6.2 crore.

  • Rajshree Sugars has completed the acquisition of Trident Sugars and the latter has become a wholly owned subsidiary.

  • The board of Super Spinning would meet early June to consider an overseas issue as well as a stock split.

  • India Cements has signed an agreement with the HP state government to set up a cement plant. This would be the company's first foray into the northern markets.

  • Malwa Cotton would issue six lakh convertible shares to promoters on a preferential basis at an undisclosed price.

  • Era Financial has issued 27.5 lakh equity shares and 30 lakh convertible warrants to unspecified investors at Rs54.35 each.

  • Electrosteel Castings would raise up to $15 million from a FCCB issue. The 5-year bonds are convertible at a price of Rs449.68 per share and would be listed in Singapore.

  • Fedders Lloyd has acquired land in Uttaranchal to set up an air conditioner manufacturing unit.

*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
12,285.11 -150.30
NIFTY 3,650.05 -51.00
Last Update : 12 May, 2006 16:00:16 PM

Market Counters
Figures in Rupees

BSE 30
Scrip Name Open High Low Last Price
ACC 960.00 960.00 891.00 897.20
Bajaj Auto 3,126.00 3,195.00 3,125.00 3,161.45
Bharti Tele 415.00 420.00 406.25 415.45
BHEL 2,349.50 2,362.00 2,325.60 2,333.10
Cipla 270.00 273.00 266.00 269.70
Dr Reddys Lab 1,621.00 1,665.00 1,600.00 1,645.00
Grasim Indus 2,300.00 2,330.00 2,215.00 2,250.80
Guj Ambuja 114.50 114.80 104.50 106.00
HDFC Ltd 1,389.00 1,395.00 1,365.00 1,383.20
HDFC Bank Ltd 851.30 882.90 851.00 875.35
Hero Honda 866.00 890.00 850.00 882.40
Hindalco 244.00 251.40 241.00 242.50
HLL 272.30 278.20 272.00 273.50
ICICI Bank 650.00 658.00 633.00 636.20
Infosys 3,231.00 3,284.80 3,185.25 3,244.85
ITC 203.00 204.00 198.50 201.10
L&T 2,747.90 2,915.00 2,710.00 2,837.40
Maruti 930.00 947.50 923.60 932.80
NTPC 129.05 132.15 127.60 130.95
ONGC 1,447.05 1,455.00 1,395.00 1,417.25
Ranbaxy 490.10 504.50 485.00 492.50
Rel Energy 610.00 617.00 601.00 603.50
Reliance 1,108.75 1,108.75 1,057.55 1,066.95
Satyam 768.00 778.95 756.10 765.55
SBI 977.00 978.30 957.85 959.35
Tata Motors 950.00 980.00 935.00 962.60
Tata Power 565.00 578.50 565.00 571.30
Tata Steel 638.35 658.10 625.50 644.10
TCS 2,000.00 2,023.80 1,980.00 1,996.85
Wipro 540.00 547.50 534.40 544.60
 Last Update : 12 May, 2006 16:00 PM

S&P CNX Nifty
Symbol Open High Low Last Price
RELIANCE 1120.55 1120.55 1057.00 1066.85
ACC 964.00 964.00 891.70 897.45
TATASTEEL 639.90 658.00 625.40 643.85
GUJAMBCEM 113.90 114.20 104.25 105.80
HINDALC0 244.00 251.30 241.10 242.85
ONGC 1430.00 1455.00 1397.10 1420.50
TATAMOTORS 945.00 978.90 935.00 963.15
INFOSYSTCH 3235.00 3285.00 3191.00 3242.30
SATYAMCOMP 769.00 779.40 752.05 765.65
LT 2748.00 2909.00 2711.55 2837.65
SAIL 92.50 94.50 90.70 91.85
SBIN 971.00 976.45 942.20 958.65
GRASIM 2300.00 2333.00 2210.00 2251.95
VSNL 489.70 499.95 475.00 480.00
RANBAXY 491.00 504.90 483.40 491.90
ITC 203.00 203.40 198.00 201.50
MTNL 208.00 210.50 204.00 204.70
TCS 2011.00 2024.85 1970.30 1996.15
MARUTI 930.40 948.00 920.25 932.80
WIPRO 539.50 549.00 533.70 544.55
ICICIBANK 655.10 655.10 632.10 636.05
HCLTECH 575.00 581.00 565.00 574.75
HEROHONDA 872.00 886.10 847.00 879.20
M&M 700.10 710.00 672.60 692.40
DABUR 164.00 173.80 160.00 170.60
HDFC 1374.00 1387.00 1355.05 1380.75
ZEETELE 274.90 281.00 270.10 273.60
HINDLEVER 277.00 277.95 272.60 273.50
BAJAJAUTO 3135.05 3200.05 3106.00 3159.45
GAIL 282.00 282.50 276.00 280.45
IPCL 281.70 283.90 275.00 276.90
BPCL 450.00 454.00 426.10 430.65
PNB 479.15 479.15 460.25 470.40
BHEL 2351.15 2358.95 2305.00 2332.15
DRREDDY 1630.00 1670.00 1621.10 1642.95
HDFCBANK 860.00 878.90 851.30 875.30
NATIONALUM 324.00 330.00 319.50 325.20
REL 613.90 620.00 600.10 603.70
CIPLA 269.90 272.45 262.00 269.80
BHARTI 414.90 416.90 406.75 415.20
TATACHEM 272.80 272.80 263.00 263.65
ABB 3175.00 3240.50 3148.00 3169.65
TATAPOWER 565.00 578.00 564.75 570.85
GLAXO 1419.00 1432.90 1402.40 1413.25
HINDPETRO 348.00 349.00 339.00 346.75
SUNPHARMA 879.90 893.70 871.00 874.70
TATATEA 840.00 859.80 836.20 843.10
ORIENTBANK 248.20 251.40 246.00 246.65
JETAIRWAYS 962.00 962.00 945.00 950.00
SCI 167.00 169.80 164.25 164.95
Last Update : 12 May, 2006 16:00PM


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Rex Mathew