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

On the settlement day of the June F&O series, markets were firm for most of the session with little volatility before a sharp sell-off in the closing hour. Many stocks which were trading with gains dropped sharply and ended with substantial losses. Frontline indices gave up more than 1.5 per cent each from their highs and ended the day with modest gains.

Earlier, firm Asian markets helped the Indian indices to open firm. Frontline indices notched up gains of over a per cent each in early trades and held on to those gains. Positive opening in Europe triggered another rally which took the Sensex beyond 10300 and the Nifty went close to 3050.

Sensex closed with gains of 32 points at 10162 and the Nifty gained 17 points to close at 2998. Nifty July futures ended at a discount of 23 points to the spot index.

Suzlon Energy was the biggest gainer among Nifty stocks, closing with massive gains of nearly 12 per cent. The stock saw a sustained up trend throughout the day and was completely unaffected by the late afternoon decline.

Index heavyweights ONGC and Reliance Industries saw substantial gains in early afternoon trades before giving up part of the gains. ONGC was trading 3 per cent higher at one point before closing with gains of nearly 2 per cent.

Reliance Industries rallied 2.5 per cent only to give up and close less than a per cent higher.

Tata Power gained more than 4 per cent while Tata Motors ended more than 3 per cent higher.

Hero Honda held on to its gains and closed more than 4 per cent higher, despite the sharp drop in Bajaj Auto.

Dabur also held on to its strong gains and ended nearly 6 per cent higher despite the weak trend in other FMCG stocks.

HCL Tech was the best performer among the tech pack, gaining nearly 4 per cent. Wipro added 2.5 per cent and Infosys closed over 0.5 per cent higher.

Sun Pharma added more than 3 per cent and Ranbaxy ended nearly 2.5 per cent higher.

HDFC gained nearly 3.5 per cent and HDFC Bank closed more than 3 per cent higher. OBC also ended nearly 3.5 per cent higher.

BPCL was the biggest loser among index stocks and was weak for most of the session. The stock ended nearly 6 per cent lower. Gail India lost more than 3 per cent and IPCL closed nearly 2.5 per cent higher.

VSNL declined after rallying over 14 per cent over the last two sessions. The stock ended more than 3 per cent lower.
SAIL lost nearly 4 per cent and Tata Steel ended nearly a per cent lower.

HLL was another major loser among heavyweights, closing more than 3 per cent lower.

Bajaj Auto gave up nearly 3.5 per cent after rallying yesterday.

ICICI Bank was the biggest loser among banking stocks, closing more than 2 per cent lower. SBI lost nearly a per cent.

Zee Tele, Hindalco, Nalco and Cipla were among the other losers.

Global markets / crude oil

US markets recovered yesterday on select buying at lower levels.

There is also a growing feeling that worries about inflation and interest rates have been overdone. However, volumes were low as traders avoided positions ahead of an important interest rate announcement by the Fed today.

The Dow gained around 0.45 per cent and the S&P 500 ended more than 0.5 per cent higher. Technology stocks also recovered and the NASDAQ added 0.55 per cent.

Asian markets surged today, helped by the US recovery. South Korea and Shanghai were the major gainers, adding nearly 2 per cent each. Japan bounced back strongly from yesterday's decline to end more than 1.5 per cent higher.

Singapore gained more than 1.5 per cent while Hong Kong added around 0.75 per cent. Thailand, Malaysia and Indonesia ended with more modest gains.

The Asian rally improved sentiments in Europe and major indices opened with gains. They have built on their strengths and most of them are trading with gains of around 1.2 per cent each.

Crude oil prices closed with modest gains yesterday as the situation in Middle East remained unchanged. Near month NYMEX futures closed 27 cents higher at $72.19 per barrel yesterday. The commodity has gained further today on reports that Iran has rejected western demand for an early response to a peace deal. Oil is trading around $72.4 per barrel in early European trades today.

Large-cap news flow

  • The UK Court of Appeals has ruled that the generic version of cholesterol drug atorvastatin marketed by Ranbaxy infringes upon the Pfizer's patent for the product. This could delay the launch of Ranbaxy's drug by another 5 years, till Pfizer's patent expires.

  • Gail India would team up with Brazilian oil company PetroBras to jointly bid in the next auction of oil exploration blocks under NELP. The two companies may also cooperate in exploring an oil block in Iran.

  • Gail India is targeting an average daily transmission of over 76 million cubic metres of gas during the current financial year, including marketing of 69 million cubic metres per day. The company would produce 3.2 lakh tonnes of polymers and 12.5 lakh tonnes of liquid hydrocarbons as per the MoU signed with the government.

  • The merger between Aditya Birla Nuvo and Birla Global Finance has been approved by the Ahmedabad High Court.

  • HCL Technologies has set up a dedicated product engineering services centre for Augmentix, a leading global player in mission critical solutions.

Mid-Cap Action

Mid-caps and small caps ended their three day losing run and recovered today. The smaller stocks opened with strong gains but gave up part of their gains in early afternoon when large caps were seeking higher levels. They declined further in the closing hour and closed with modest gains.

The CNX Mid-Cap index ended with gains of 10 points, or 0.27 per cent, to end the day at 3805. Market breadth on the NSE was positive for most of the day but declined in the last hour and closed marginally positive.

BSE mid-cap index gained 0.5 per cent and the BSE small cap index ended with modest gains of 0.29 per cent today.

Bluestar Info, Gateway Distriparks, Pritish Nandi Communications, Bajaj Auto Finance, Ramco Systems, Dishman Pharma and Blue Dart were among the mid-cap gainers.

KCP Sugar, Allahabad Bank, Softpro Solutions, Kernex Micro, Soma Textiles, Calsoft and Indo-Rama Synthetics were among the major mid-cap losers.

Mid-cap news flow

  • ICI India would sell its uniqema business to a British company for Rs260 crore, following a similar sale by parent company ICI Plc. The division generated revenues of Rs143 crore during the last financial year.

  • Patni Computer has entered into a strategic alliance with Clear Technology to offer process consulting and system integration services for the latter's insurance and financial services solutions.

  • UTI Bank has raised Rs138 crore as tier-II capital from an issue of non-convertible redeemable debentures.

  • Aurobindo Pharma has received preliminary US FDA approval for an AIDS drug in the form of oral solutions.

  • Stone India would launch air springs for pneumatic suspensions for railway coaches in collaboration with Goodyear Europe.

  • Bhagyanagar Metals has acquired 25 acres of land near Hyderabad for Rs118 crore for development of an IT park. The company is also developing a housing project in Vizag along with another builder.

  • WS Industries would set up a second manufacturing plant for insulators in technological and marketing partnership with a US based company. The facility would cost Rs100 crore and would be part funded through preferential equity issue to overseas investors.

*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
10,162.16 + 32.46
NIFTY 2,997.90 + 16.80
Last Update : 29 June, 2006 16:00:16 PM

Market Counters
Figures in Rupees

BSE 30
Scrip Name Open High Low Last Price
ACC 755.00 758.00 734.30 739.95
Bajaj Auto 2,689.30 2,722.00 2,599.00 2,627.25
Bharti Tele 364.10 379.00 355.65 359.35
BHEL 1,849.00 1,889.75 1,816.55 1,839.90
Cipla 214.50 218.00 206.10 209.65
Dr Reddys Lab 1,285.00 1,300.00 1,250.00 1,259.55
Grasim Indus 1,810.00 1,849.00 1,810.00 1,835.05
Guj Ambuja 94.00 96.00 93.25 94.00
HDFC Bank Ltd 736.00 760.00 733.00 746.85
HDFC Ltd 1,090.00 1,090.00 1,062.00 1,069.70
Hero Honda 760.00 798.00 758.00 787.50
Hindalco 168.00 168.50 161.25 162.50
HLL 218.05 220.60 207.00 210.80
ICICI Bank 496.00 501.85 470.55 479.60
Infosys 2,995.00 3,020.00 2,985.00 2,993.10
ITC 179.50 180.00 175.10 176.90
L&T 2,098.00 2,143.00 2,098.00 2,128.40
Maruti 728.10 748.95 728.10 733.80
NTPC 109.00 110.45 106.00 107.05
ONGC 1,044.00 1,068.00 1,043.10 1,053.65
Ranbaxy 355.00 362.90 355.00 359.90
Rel Energy 450.90 456.00 435.30 444.15
Reliance 1,013.00 1,030.00 1,003.30 1,009.20
Satyam 693.00 698.00 675.00 682.15
SBI 717.00 727.00 705.25 709.00
Tata Motors 779.00 779.00 745.00 761.45
Reliance Comm Ventures Ltd 221.00 226.70 218.10 222.85
Tata Steel 520.50 528.30 505.65 510.10
TCS 1,709.90 1,748.00 1,670.00 1,680.00
Wipro 486.00 499.95 482.35 496.25
  Last Update : 29 June, 2006 16:00 PM

S&P CNX Nifty
Symbol Open High Low Last Price
RELIANCE 1023.90 1030.00 1001.50 1008.35
VSNL 404.80 410.00 380.10 386.35
ICICIBANK 493.00 502.00 465.70 479.05
TATASTEEL 530.00 540.00 505.35 509.70
INFOSYSTCH 2994.00 3020.00 2985.25 2993.65
ONGC 1047.70 1070.00 1043.00 1055.00
SUZLON 890.00 997.00 887.50 974.85
ITC 178.00 180.00 174.00 175.80
SATYAMCOMP 689.00 698.00 673.00 678.65
BHEL 1813.00 1877.00 1813.00 1842.30
SBIN 716.00 728.80 705.00 708.70
TATAMOTORS 747.00 770.00 747.00 765.15
TCS 1710.00 1720.00 1670.00 1680.80
WIPRO 484.15 500.00 482.00 496.70
M&M 584.00 611.45 579.00 599.95
HINDLEVER 216.90 220.05 205.35 209.55
SAIL 78.70 80.35 74.35 74.90
HDFCBANK 740.00 761.00 731.15 749.35
BHARTIARTL 353.50 379.00 353.50 359.50
HDFC 1074.00 1095.50 1060.30 1087.45
CIPLA 215.00 218.70 205.20 209.80
HINDALC0 178.00 178.00 161.10 162.50
BAJAJAUTO 2700.00 2723.50 2595.00 2629.15
MARUTI 734.40 748.75 725.40 733.65
HEROHONDA 760.00 797.00 760.00 787.80
LT 2076.00 2145.00 2076.00 2123.60
SIEMENS 852.50 872.80 845.00 854.00
GUJAMBCEM 94.50 96.30 93.20 93.85
IPCL 253.00 257.40 244.50 246.05
ABB 2469.00 2509.00 2325.55 2450.10
SUNPHARMA 765.00 795.00 763.05 784.15
RANBAXY 354.25 362.60 354.25 359.50
ACC 750.00 758.00 735.00 740.10
GAIL 259.90 264.50 242.00 244.85
REL 449.00 456.80 434.00 438.85
DABUR 136.50 144.40 136.00 141.85
NATIONALUM 224.00 225.45 211.25 217.55
MTNL 149.00 151.00 145.25 146.50
HCLTECH 480.00 498.00 477.00 492.70
DRREDDY 1275.50 1299.90 1249.85 1256.50
GRASIM 1810.00 1850.00 1810.00 1835.45
HINDPETRO 250.00 253.00 227.80 230.75
TATATEA 755.00 768.50 730.00 745.00
PNB 315.00 320.00 312.25 315.15
TATAPOWER 463.00 482.40 456.00 473.50
BPCL 335.00 347.00 332.70 339.85
ZEETELE 226.50 230.00 220.00 222.00
GLAXO 988.90 1015.00 971.25 985.20
JETAIRWAYS 608.80 625.00 604.00 611.90
ORIENTBANK 164.10 171.90 162.10 168.75
Last Update : 29 June, 2006 16:00PM


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Rex Mathew