labels: stock markets - india, markets - general
Rex Mathewnews
25 July 2006

Markets today sustained the pull back rally, which started yesterday as the interest rate hike and policy outlook announced by RBI was on expected lines. Strong rally across the globe provided further momentum to the indices.

Markets opened strong and the indices held on to early gains till the rate hike announcement by RBI at noon. Indices gave up part of their gains after the announcement but recovered later and closed near the day's highs.

Sensex closed with gains of 201 points at 10416 and the Nifty gained 51 points to close at 3041. Nifty July futures ended at a discount of just a point to the spot index.

Oil and gas stocks were among the major gainers today. Gail India was the best performing index stock, closing nearly 7 per cent higher.

ONGC closed more than a per cent higher while Reliance Industries added over 1.5 per cent. BPCL added a per cent and HPCL closed more than a per cent higher.

Stocks of standalone oil refineries surged in today's trade. Bongaigaon ended nearly 12 per cent higher while MRPL added close to 10 per cent. Essar Oil closed 8.5 per cent higher and Chennai Petroleum added nearly 6.5 per cent.

Banking stocks continued their rally from yesterday and closed with significant gains. ICICI Bank added close to 5.5 per cent while HDFC Bank, PNB and OBC closed with gains of around 5 per cent each. SBI gained over a per cent.

Cement stocks surged in afternoon trades, led by Grasim, which added over 6.5 per cent. ACC added close to 4 per cent and Gujarat Ambuja gained close to 3.5 per cent.

Metal stocks recovered and Tata Steel was the best performer with gains of close to 3.5 per cent. SAIL also added close to 3.5 per cent wile aluminium stocks Hindalco and Nalco added over 1.5 per cent each.

Among other major gainers, HCL Technologies and Cipla added around 3.5 per cent each.

There were only 4 losers among Nifty stocks today. Zee Tele was the biggest loser, closing nearly 1.5 per cent lower.

Tata Tea lost close to a per cent while ITC and Infosys closed with marginal losses.

Global markets / crude oil
US markets rallied yesterday on large merger announcements and good corporate numbers. Two major merger announcements came out yesterday, lifting stocks in the respective sectors. Oil stocks gained as crude oil prices recovered.

The Dow and S7P 500 indices closed with gains of nearly 1.65 per cent each. Technology stocks did even better and the NASDAQ ended with gains of over 2 per cent.

All Asian markets surged ahead following the strong rally in the US. Japan and Singapore closed with gains of close to 1.4 per cent each while South Korea added 1.3 per cent.

Shanghai closed more than a per cent higher while Hong Kong, Thailand and Malaysia added over 0.6 per cent each. Indonesia closed with more modest gains of 0.35 per cent.

European markets are mixed, but major indices are trading with modest gains in early afternoon trades.

Crude oil prices recovered yesterday as hostilities in the Middle East showed signs of worsening. Near month NYMEX futures closed with gains of close to a per cent at $75.05 per barrel yesterday. The commodity is trading with modest gains in European trades today.

Large-cap news flow

  • Tata Motors has finalised an agreement with Fiat Group to establish a JV in India to manufacture cars, engines and transmissions under the brands of both companies, for the domestic as well as overseas markets. The Ranjangaon assembly unit of Fiat would come under the JV, which would have a capacity of 1 lakh cars and 2.5 lakh engines per annum.

  • Tata Motors and Fiat would also explore the possibility of sharing Fiat's facility in Argentina to produce pick-up trucks and utility vehicles under both brands for the Latin American markets.

  • has formed a JV with telecom major Motorola to offer managed network services to customers worldwide. The JV would set up a global delivery and management centre in India with headquarters in Europe. Wipro said the market for managed network services is expected to touch $48 billion per annum globally by 2010.

  • Satyam Computer has formed an alliance with GigaSpaces Technologies to offer solutions for service-oriented architecture and grid environments.

  • JSW Steel would make a preferential issue of 1.5 crore convertible warrants to the promoter group. The warrants are convertible over the next 2 years at a price determined by the relevant guidelines. Promoter stake in the company would be close to 50 per cent on conversion.

  • The Hinduja group has acquired the stake held by Italian company IVECO, a part of Fiat group, in the holding company of Ashok Leyland.

Mid-Cap Action

Mid-caps and small caps also recovered strongly, after remaining subdued yesterday even when the large caps rallied. Many stocks attracted significant interest on positive news flows and good corporate results.

The CNX Mid-Cap index ended with gains of 77 points, or 2.12 per cent, to end the day at 3703. BSE mid-cap index gained 2.07 per cent and the BSE small cap index added 2.02 per cent.

Air Deccan saw a sharp pull back after the company became the second largest domestic airline. The stock closed nearly 14 per cent higher.

Archies, India Infoline, Voltas, Elder Pharma, Kirloskar Brothers and D-Link were among the other mid-cap gainers.

Zenith Computers, Mahindra Ugine, Asian Electronics, Easun Reyrolle, Dhampur Sugar, UTV Software and LG Balakrishnan were among the major mid-cap losers.

Mid-cap news flow

  • UTV Software has sold its children's television channel to Walt Disney of US for an enterprise value of $30.5 million. The company would also make a preferential allotment of 34 lakh equity shares to Walt Disney at a price of Rs192.5 per share. Existing promoters of the company would also divest a part of their holdings to Walt Disney, taking the total stake of the latter to 14.9 per cent.

  • UTV would also make a preferential issue of convertible warrants to existing promoters. On conversion, promoters' stake in the company would go up to 47.6 per cent.

  • IndiaBulls would de-merge its real estate business, excluding its JV with DLF and integrated township project in Sonepat, into a separate company, which would be listed on the exchanges. Shareholders would receive one share of the real estate company for every share held.

  • IndiaBulls has raised Rs644 crore from an issue of preference shares to a subsidiary of US based hedge fund Farallon Capital.

  • ICI India would buy back equity shares at a price not exceeding Rs350 per share. The company has acquired the balance 1 per cent stake in Quest International to make it an wholly owned subsidiary.

  • IL&FS Investsmart said US-based online stock brokerage E-Trade may increase its involvement in the management of the company and may also increase its equity stake.

  • Ind Bank Housing has taken possession of a residential apartment building in Chennai for non-repayment of advances to the tune of Rs15 crore. The property would be auctioned to realise the outstanding amount.

  • Chemplast Sanmar would get into the PVC products business through acquisitions or by setting up a new unit. The company is planning to raise up to Rs200 crore from a rights issue.

  • Pearl Global said it is planning to acquire or take on lease a manufacturing unit in Gurgaon, near Delhi.

  • has commenced shipment of high density DVD recordable disks (HD-DVD) with a capacity of 15 GB each to global customers. Global market for this kind of disks is expected to touch 1.5 billion pieces within 3 years, according to the company.

  • The board of Sabero Organics would meet later this month to consider a preferential issue of equity shares and convertible warrants.

  • The board of La Opala RG would meet later this month to consider a bonus issue.

  • Gitanjali Gems has acquired the whole of a privately held jewellery retailer for an undisclosed amount.

  • Lupin has decided to wind up its Hong Kong-based subsidiary.

  • The board of Kirloskar Brothers would meet to review the shareholder agreement for the JV with Copeland of US.

  • The Hinduja group has acquired the stake held by Italian company IVECO, a part of Fiat group, in the holding company of Ennore Foundries.

  • Sintex Industries has signed an agreement with a UK-based company for product design and product sales for a period of three years, extendable for a further period of five years.

  • Bhagyanagar Metals has incorporated 2 subsidiaries for real estate and infrastructure businesses.

  • Educomp Solutions would raise up to $25 million from an overseas issue of equity or related instruments.

*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 (-)

10,415.61 + 200.24
NIFTY 3,040.50 +54.65
Last Update : 25 July, 2006 16:00:00 PM

Market Counters
Figures in Rupees

BSE 30
Scrip Name Open High Low Last Price
ACC 800.00 823.90 800.00 820.00
Bajaj Auto       2,490.25
Bharti Tele       369.30
BHEL 1,850.00 1,850.00 1,810.25 1,828.35
Cipla 218.50 224.40 217.85 223.10
Dr Reddys Lab 1,275.00 1,316.90 1,270.00 1,296.05
Grasim Indus 1,880.00 2,000.20 1,880.00 1,989.75
Guj Ambuja 103.00 104.20 100.65 103.70
HDFC Bank Ltd 745.00 768.00 740.00 763.90
HDFC Ltd       1,097.30
Hero Honda 715.90 721.00 706.10 711.40
Hindalco 158.00 159.70 156.00 157.75
HLL 230.05 236.90 230.05 234.35
ICICI Bank 520.00 544.95 520.00 541.10
Infosys 1,630.00 1,644.90 1,598.20 1,610.20
ITC 166.90 168.00 163.10 163.85
L&T 2,089.00 2,129.00 2,070.00 2,116.05
Maruti 734.65 744.80 730.00 739.90
NTPC 109.20 111.65 109.00 110.60
ONGC       1,093.65
Ranbaxy       356.35
Rel Energy 443.00 451.00 441.00 447.70
Reliance 982.00 991.85 977.00 987.30
Satyam 723.90 734.00 708.10 731.00
SBI       746.90
Tata Motors 695.00 708.00 692.00 701.65
Reliance Comm Ventures Ltd 245.55 250.90 245.00 248.25
Tata Steel 485.00 497.00 484.80 494.95
TCS 1,825.00 1,855.00 1,825.00 1,845.65
Wipro 469.70
  Last Update : 25 July, 2006 16:26 PM

S&P CNX Nifty
Symbol Open High Low Last Price
SATYAMCOMP 721.00 734.00 708.10 731.00
RELIANCE 984.80 991.00 977.00 987.80
TATASTEEL 485.10 497.50 485.00 495.60
INFOSYSTCH 1629.00 1643.90 1600.00 1610.70
TATAMOTORS 696.00 707.75 690.25 701.75
SBIN 742.00 754.60 737.50 748.35
ICICIBANK 519.95 545.00 519.95 542.40
ITC 169.00 175.00 163.00 164.10
SUZLON 988.00 1017.00 981.55 992.20
ACC 804.00 823.50 800.00 820.50
ONGC 1090.00 1101.70 1081.00 1093.25
TCS 1840.00 1855.00 1825.05 1847.30
LT 2095.90 2129.00 2070.10 2114.60
GRASIM 1902.00 2000.00 1872.00 1990.30
MARUTI 729.00 745.00 729.00 743.05
WIPRO 479.90 489.90 466.20 469.80
GUJAMBCEM 102.00 104.15 100.80 103.65
HINDLEVER 230.00 236.75 230.00 234.35
SIEMENS 840.00 857.50 825.00 838.70
HDFC 1099.00 1115.95 1085.90 1097.15
ZEETELE 247.00 255.75 245.00 246.80
VSNL 360.00 367.10 357.00 363.65
BHEL 1825.00 1844.00 1811.15 1829.65
HINDALC0 158.15 159.75 155.85 157.85
HDFCBANK 740.00 769.90 740.00 766.00
HEROHONDA 719.00 723.00 705.60 712.70
PNB 334.90 347.85 330.80 345.55
IPCL 245.70 249.30 242.50 245.55
RANBAXY 357.75 360.00 354.00 356.15
M&M 520.10 543.00 520.10 528.75
SAIL 67.00 68.65 67.00 68.30
CIPLA 218.00 224.85 217.70 223.70
ABB 2363.70 2410.00 2342.00 2366.50
GAIL 239.00 250.50 236.00 248.15
BHARTIARTL 367.00 374.80 365.05 369.45
BAJAJAUTO 2490.05 2538.90 2480.00 2495.15
MTNL 137.50 141.80 137.50 139.85
DRREDDY 1282.00 1319.00 1260.00 1296.50
HCLTECH 519.05 536.50 519.05 531.90
REL 439.60 451.00 439.60 448.35
DABUR 135.00 136.45 131.65 133.20
SUNPHARMA 760.00 774.80 750.25 769.65
ORIENTBANK 166.95 171.50 163.10 170.20
NATIONALUM 213.00 214.00 208.00 209.85
TATAPOWER 465.20 484.20 465.20 481.80
JETAIRWAYS 536.60 599.90 512.00 518.75
GLAXO 1003.00 1028.80 1001.10 1023.20
HINDPETRO 215.00 219.90 214.10 215.10
BPCL 315.00 323.90 306.15 317.90
TATATEA 740.00 745.00 725.00 734.65
Last Update : 25 July, 2006 16:09PM

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Rex Mathew