Global cues were highly weak today but the positive sentiment
built yesterday helped the markets to resist a substantial
fall. Other Asian markets ended with considerable losses
following the slide in US indices yesterday and European
indices are now trading with substantial losses.
surge in crude oil prices, possible rate hike in Japan
and concerns about corporate profitability are once again
affecting global stock markets.
were modestly volatile in early trades as they tried to
hang on to yesterday's gains. But profit booking in technology
stocks led to a decline and by noon, the indices were
trading with substantial losses.
dropped further in afternoon trades before a recovery
in the last half hour helped to cut down part of the losses.
closed with losses of 72 points at 10858 and the Nifty
lost 27 points to close at 3169. Nifty July futures ended
at a discount of 26 points to the spot index.
stocks saw some correction after rallying substantially
yesterday. Infosys opened strong but declined soon after
and was trading 4.5 per cent lower at one point. The stock
finally closed nearly 4 per cent lower and was the biggest
loser among index stocks.
lost more than 2.5 per cent while HCL Technologies lost
nearly 2.5 per cent despite the announcement of a major
order win. TCS lost more than a per cent and Satyam ended
more than 0.5 per cent lower.
crude oil prices led to further losses for oil marketing
stocks. BPCL lost more than 3.5 per cent and HPCL lost
nearly 2 per cent.
Industries gave up half of yesterday's gains and lost
more than 2 per cent. ONGC closed with modest losses.
continued it's down trend and lost more than 3 per cent.
HDFC Bank ended nearly 2 per cent lower.
stocks were weak today as Bharti Airtel lost 3 per cent.
MTNL lost nearly 2.5 per cent
auto stocks, M&M ended lost more than 2.5 per cent.
Hero Honda continued to lose ground and declined nearly
2.5 per cent and Bajaj Auto lost more than a per cent.
Tea was another major loser, despite the rally in Tata
Coffee, and closed 2.5 per cent lower.
Power was the best performer among index stocks today.
The stock opened firm and sustained its uptrend for the
rest of the session and closed nearly 3.5 per cent higher.
FMCG stocks came back to prominence and HLL led the way
with gains of 2.5 per cent. Dabur added more than 0.5
metal stocks were firm today, led by Hindalco, which gained
nearly 1.5 per cent. SAIL added nearly a per cent.
other gainers, Cipla ended with gains of close to 2 per
cent each. Grasim, Gail India and ICICI Bank added around
1.5 per cent each.
markets / crude oil
US markets tumbled yesterday on concerns that earnings
of technology companies would decline faster than expected.
Some of the leading brokerages downgraded frontline tech
stocks like Apple and Dell. The heavy penalty slapped
on Microsoft by the EU also affected the tech sector.
Dow and S&P 500 indices gave up nearly 1.1 per cent
each. NASDAQ index tumbled more than 1.8 per cent. Rising
crude oil prices affected the sentiment further.
markets also lost substantially after the decline in US
indices. Widely expected rate hike by the Bank of Japan,
to be announced later today, also led to the weak trend.
Shanghai was the biggest loser, tumbling nearly 5 per
cent. Thailand lost nearly 2 per cent while Japan, South
Korea, Singapore and Indonesia lost around a per cent
each. Hong Kong lost 1.3 per cent.
markets also opened on a weak note and have declined further.
Major indices are trading with losses of nearly 1.5 per
oil prices crossed $75 yet again as Iran was once again
referred to the US Security Council after the country
refused to respond fast to a peace package. Near month
NYMEX futures closed a per cent higher at $74.95 per barrel
yesterday. Sharp decline in US stocks of crude oil and
refined products has led to further gains and the commodity
is trading close to $76 in early European trades today.
Technologies has won a 5-year outsourcing order
from Teradyne, a leading supplier of automatic test
equipment. HCL would provide consulting, application
development and infrastructure management. The base
value of the contract is $70 million over the 5-year
period, but HCL said this may go up further.
Computer has been adjudged as the second best outsourcing
vendor in a global survey of IT and ITES companies.
The company improved its ranking from 19 last year.
has launched a customised personal computer for the
BPO and ITES sector. The new systems offer considerable
cost savings in initial capital costs to BPO companies.
Mid-caps and small caps opened firm despite the weakness
in large caps. A large number of stocks maintained the
uptrend from yesterday and sectors like technology remained
in the limelight. After trading with modest gains, mid-cap
and small-cap indices declined towards the end of the
CNX Mid-Cap index ended with losses of 9 points, or 0.22
per cent, to end the day at 3912. BSE mid-cap index gained
0.01 per cent and the BSE small cap index ended with gains
of 0.08 per cent.
IT stocks rallied for the second day on expectations of
strong results. Polaris, Scandent, Visualsoft and Aptech
were the major gainers. Aztec Software, which reported
a decline in net profits, ended nearly 5 per cent lower.
Premier Limited, Tata Coffee, Zicom and S Kumar's were
among the other mid-cap gainers.
Industries, FACT, Unichem, Excel Industries, Unitech and
Jindal Poly were among the major mid-cap losers.
Coffee has revised the terms of its rights issue.
The company would now issue partly convertible debentures
of Rs400 each in the ratio of one debenture for every
share held. On allotment, shareholders would receive
one equity share at Rs250. The balance Rs150 would carry
an interest rate of 7 per cent per annum and would be
redeemed in 3 annual instalments of Rs50 each from the
4th year onwards.
Solutions has entered into an agreement with real
estate consultancy Cushman & Wakefield to develop
real estate management software solutions.
India has entered into a collaboration agreement
with a German company to market inverters, converters
and power supply systems for railway coaches and locomotives
in the domestic market.
has acquired French wine maker Bouvet Ladubay for a
consideration of €14.75 million. The acquired company
sold 3 million bottles last year and had revenues of
€12 million. McDowell is financing the acquisition
from the proceeds
of the GDR issue.
Pharma said another Saudi Arabian company has joined
as a partner in the proposed project to manufacture
API's in Saudi Arabia.
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
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