labels: stock markets - india, markets - general
Rex Mathewnews
20 June 2006

Indian indices could not resist a global down trend today, as they managed yesterday rather surprisingly. Even then, the decline was more modest than expected and the indices made a few attempts to limit the extent of the decline.

As expected, frontline indices opened with losses of over 2 per cent each before attempting a recovery before noon. Both indices cut down their losses to around 1.5 per cent each before another decline took them close to their morning lows.

Another attempt at recovery later in the afternoon ended in a sharp fall during the last half hour of trade.

Sensex closed with losses of 175 points at 9823 and the Nifty lost 56 points to close at 2861. Nifty June futures ended at a discount of 46 points to the spot index.

Banking stocks came under pressure today. PNB was the biggest loser among index stocks, closing nearly 6 per cent lower. HDFC and HDFC Bank ended with losses of over 3.5 per cent each.

SBI and ICICI Bank lost over 2 per cent each.

Engineering stocks saw some profit booking after the recovery over the last few days. L&T lost 4.5 per cent while BHEL ended almost 4 per cent lower. However, ABB bucked the trend and ended with gains of 2 per cent.

M&M was the big loser among other auto stocks, closing more than 3.5 per cent lower. Tata Motors lost nearly 1.5 per cent and Maruti ended nearly 0.5 per cent lower. Among two-wheeler stocks, Bajaj Auto lost nearly 4 per cent while Hero Honda added 0.5 per cent.

Among metal stocks, SAIL ended almost 4 per cent lower and Tata Steel declined over 2 per cent.

TCS was the biggest loser among tech stocks, closing more than 3.5 per cent lower. Satyam and Wipro lost more than 3 per cent each while Infosys ended nearly a per cent lower.

Reliance Industries closed nearly a per cent lower while ONGC ended more than 0.5 per cent lower. Gail ended more than 3 per cent lower.

HLL declined nearly 4 per cent at one point before recovering and closing nearly 3 per cent lower. ITC gave up nearly 2 per cent and Dabur lost almost 3 per cent.

VSNL was the biggest gainer among index stocks on reports that Citigroup has acquired a sizeable stake in the company. The stock ended nearly 3.5 per cent higher.

Jet Airways was weak till afternoon but recovered towards the end of the session and ended nearly 2 per cent higher.

Pharma stocks Dr Reddy's and Ranbaxy were firm for most of the session but declined towards the end. Ranbaxy managed to close 0.5 per cent higher but Dr Reddy's ended lower by almost a per cent.

IPCL gained close to 2.5 per cent and Reliance Energy ended with modest gains

Global markets / crude oil
US markets declined yesterday as concerns over an economic slow down and increase in inflation resurfaced. New residential construction in the US is expected to decline in the near term, according to a survey. Rising tensions with North Korea over a reported missile launch added to the negative sentiment.

The Dow ended lower by two-thirds of a per cent while the S&P 500 lost nearly a per cent. Technology stocks also remained weak and the NASDAQ lost nearly a per cent.

Asian markets declined for the second day following the weak closing by US indices. Thailand and South Korea lost around 2 per cent each while Singapore declined nearly 1.7 per cent.

Japanese Nikkei slipped nearly 1.5 per cent and Hong Kong closed more than a per cent lower. Shanghai continued to gain and closed with gains of over 0.35 per cent, while Malaysia and Indonesia closed almost unchanged.

European markets opened with losses of over a per cent each, but have recovered from their lows. Major Western European indices are trading with losses of between 0.25 and 0.4 per cent each.

Crude oil prices declined below $69 per barrel yesterday as the possibility of a settlement to the Iranian nuclear issue appeared brighter. Near month NYMEX futures settled at $68.98 yesterday. The commodity has bounced back and has added over a per cent in early European trades today.

Large-cap news flow

  • Unconfirmed media reports indicate that may call of the proposed acquisition of Air Sahara if the government does not grant some approvals. The company has not officially responded to these reports.

Mid-Cap Action
Smaller stocks outperformed the large caps today as well as they resisted the decline and ended with minor losses. Most of the mid-caps continued their recovery though some came under profit booking after 3 days of gains.

The CNX Mid-Cap index opened weak but inched back into positive territory by early afternoon. The index finally ended with losses of 8 points, or 0.2 per cent, to end the day at 3761. Market breadth on the NSE was negative in morning trades but turned positive in the afternoon.

The BSE mid-cap index gained 0.67 per cent and the BSE small cap index closed 2.08 per cent higher.

Sutlej Industries closed with gains of 20 per cent each for the second day. Aptech and TTK Prestige ended with gains of close to 20 per cent each while Bombay Rayon Fashion gained 16.5 per cent.

CESC gained nearly 12.5 per cent while Geometric Software, Apollo Hospitals, Shiva Texyarn and Aegis Chemicals added around 10 per cent each.

Bajaj Hindustan, LG Balakrishnan & Brothers, Bharat Forge and Mahavir Spinning were among the major mid-cap losers.

Mid-cap news flow

  • Mahindra Gesco would raise additional resources from a follow on public issue or through the QIP route. The company is planning to issue 65 lakh shares. Besides, 37.8 lakh convertible warrants would be issued to promoters.
  • IL&FS Investsmart would acquire stock broking company Apeejay Securities for an undisclosed amount.
  • TTK Prestige would develop its property in Bangalore after closing the manufacturing unit within the next 12 months. The company may tie-up with others for developing the property.
  • HMT International, a subsidiary of HMT, would set up 2 technology centres in Zimbabwe. The projects would cost Rs22.5 crore and would be fully funded by the Indian government.
  • ICSA India has won two new orders worth Rs30.5 crore from a power distribution company in Rajasthan.
  • JRG Securities would increase its stake in subsidiary company JRG Wealth Management to 80 per cent.
  • McNally Bharat has won a new order from Neyveli Lignite to construct a lignite and limestone handling system at a power station in Rajasthan. The order is worth Rs177 crore.
  • Era Construction has received a new contract worth Rs17.7 crore from Nalco for civil and structural works at an alumina refinery.
  • IFB Industries has raised Rs3.42 crore from a preferential issue of equity shares to a promoter company.
  • Jubilant Organosys has denied media reports that it is close to finalising a US acquisition.
  • Simplex Infrastructure has won an order worth Rs252 crore for construction of a sports complex in the state of Jharkhand.
  • The board of Elecon Engineering would meet next week to consider a stock split.

*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
9,822.52 -175.32
NIFTY 2,861.30 -55.60
Last Update : 20 June, 2006 16:00:16 PM

Market Counters
Figures in Rupees

BSE 30
Scrip Name Open High Low Last Price
ACC       759.80
Bajaj Auto 2,634.00 2,660.00 2,586.00 2,618.05
Bharti Tele 356.05 357.80 347.00 353.10
BHEL 1,915.00 1,915.00 1,835.15 1,858.50
Cipla 222.00 222.00 213.50 217.05
Dr Reddys Lab 1,268.00 1,320.50 1,240.00 1,260.00
Grasim Indus       1,803.20
Guj Ambuja 91.80 91.80 89.25 90.35
HDFC Bank Ltd 725.00 725.00 702.00 708.65
HDFC Ltd 1,026.00 1,040.00 998.00 1,012.50
Hero Honda 740.00 765.00 712.00 746.75
Hindalco       159.00
HLL 219.60 219.60 210.50 216.75
ICICI Bank 500.00 500.00 483.00 489.90
Infosys 2,850.00 2,869.90 2,800.10 2,843.75
ITC 167.00 167.00 160.00 161.65
L&T 2,040.00 2,049.00 1,926.65 1,955.20
Maruti       751.60
NTPC       111.50
ONGC       1,015.00
Ranbaxy 369.00 381.95 366.00 373.30
Rel Energy 445.00 462.90 432.00 445.05
Reliance 935.00 937.00 916.00 923.95
Satyam 667.00 667.00 638.80 648.75
SBI 749.85 762.00 725.00 736.50
Tata Motors 760.00 778.60 742.25 760.60
Reliance Comm Ventures Ltd 225.00 247.80 218.85 237.15
Tata Steel 477.00 477.00 454.10 466.85
TCS 1,640.00 1,668.00 1,600.00 1,606.65
Wipro 430.00 431.00 418.00 421.45
 Last Update : 20 June, 2006 16:00 PM

S&P CNX Nifty
Symbol Open High Low Last Price
RELIANCE 930.00 936.00 916.00 925.00
TATASTEEL 470.00 472.90 454.00 465.85
SATYAMCOMP 670.00 670.00 639.00 648.45
INFOSYSTCH 2858.00 2870.00 2801.00 2844.00
TATAMOTORS 760.00 778.70 742.00 758.20
ONGC 1001.00 1030.60 995.00 1012.60
SBIN 752.10 762.50 723.05 736.75
HINDALC0 160.00 165.50 154.55 159.20
VSNL 355.00 377.70 345.30 371.45
ITC 162.00 165.50 158.25 161.65
ACC 750.30 769.00 732.25 760.05
LT 2075.00 2075.00 1926.20 1960.95
GUJAMBCEM 92.25 92.25 89.10 90.30
M&M 550.15 560.00 530.25 538.40
MARUTI 735.00 765.90 732.25 752.95
MTNL 153.90 155.85 148.05 153.35
BHEL 1924.00 1924.00 1840.05 1863.20
IPCL 250.00 261.00 242.75 257.60
TCS 1688.00 1688.00 1600.00 1607.35
SAIL 69.50 69.50 67.10 67.80
HINDLEVER 216.00 219.00 210.20 216.60
BAJAJAUTO 2700.00 2700.00 2575.25 2618.85
HDFC 1031.00 1045.00 998.00 1013.95
GRASIM 1795.00 1854.00 1741.00 1801.35
WIPRO 432.00 434.00 418.15 421.90
RANBAXY 370.00 382.00 365.05 373.45
ABB 2100.00 2235.00 2050.00 2183.90
REL 443.00 464.80 433.00 444.30
CIPLA 224.00 224.00 215.00 216.90
BHARTIARTL 355.00 357.90 345.05 352.20
ICICIBANK 493.00 494.70 481.10 490.45
DRREDDY 1265.00 1320.00 1245.15 1257.05
PNB 329.90 329.90 308.00 312.05
HDFCBANK 720.00 727.00 700.25 708.95
HEROHONDA 740.00 765.00 711.05 747.75
JETAIRWAYS 650.00 685.00 602.10 672.00
ZEETELE 220.00 220.00 214.00 219.20
NATIONALUM 211.00 221.95 205.55 218.55
HCLTECH 430.05 444.00 412.00 435.80
DABUR 133.00 133.00 126.50 128.85
GAIL 230.10 234.35 225.00 227.05
TATATEA 686.50 704.70 667.00 693.20
GLAXO 999.00 999.00 956.10 971.95
SUNPHARMA 716.00 716.00 686.00 701.45
TATAPOWER 431.00 445.00 420.00 430.70
BPCL 330.00 401.90 320.20 331.15
HINDPETRO 257.00 265.00 246.00 252.95
TATACHEM 205.00 210.95 203.10 208.40
SCI 133.05 134.80 128.00 132.05
ORIENTBANK 160.00 161.50 152.25 158.45
Last Update : 20 June, 2006 16:00PM


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Rex Mathew