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


Markets started on a positive note and the Sensex moved past 12800 quite comfortably and the Nifty climbed back above 3700 in morning trades. Good results from Reliance and expectations of the Corus bid announcement by Tata Steel, kept the sentiment alive. Global cues were also positive with Asian markets gaining.

The indices held on to their gains till late in the afternoon, when they suddenly dropped and gave up all their gains. They slipped into the red and closed marginally lower.

Sensex closed with losses of 14 points at 12709 and the Nifty lost 1 point to end at 3677. Nifty October futures closed at a premium of 19 points to the spot index.

Stocks of oil marketing companies slipped as crude oil prices recovered. BPCL was the worst performer among index stocks and closed nearly 3 per cent lower. HPCL shed more than 2.5 per cent.

Among other oil & gas stocks, Gail India slipped nearly 1.5 per cent. ONGC, which announced its results today, closed modestly lower.

Satyam lost nearly 3 per cent despite good quarterly results.
OBC continued to decline and lost another 2.5 per cent
Bajaj Auto slipped for the third session and lost another 1.5 per cent.

Among FMCG stocks, ITC lost nearly 2.5 per cent and Dabur gave up nearly 1.5 per cent

Suzlon Energy was weak for most of the session and lost close to 1.5 per cent.

Glaxo was the other major loser, closing nearly 1.5 per cent lower.

Tata Steel rallied nearly 3 per cent in afternoon trades after the announcement of the formal Corus bid. The stock gave up part of the gains and ended over a per cent higher.

Reliance Industries gained 1.5 per cent in early trades as its results were better than expectations. The stock lost part of the gains and closed 0.5 per cent higher.

ABB rallied more than 6 per cent and was the best performer among index stocks. Siemens added close to a per cent.

Telecom stocks had a good day, led by VSNL, which added nearly 2 per cent. Bharti added nearly 1.5 per cent and MTNL closed almost a per cent higher.

Reliance Energy, which announced results yesterday, added nearly 1.5 per cent.

Wipro sustained the up trend and gained over a per cent.

Cipla and M&M were the other major gainers, both gaining close to a per cent each.

Global markets / crude oil
US markets ended with modest gains yesterday and the Dow index settled above 12000 for the first time ever. Markets were once again helped by good corporate results, which helped ease concerns about a slowdown in the economy. The recovery in crude oil prices helped oil stocks.

The Dow gained more than 0.15 per cent and settled at a new lifetime closing high, above 12000. The S&P 500 gained more than 0.05 per cent while the NASDAQ gained over 0.15 per cent.

Asian markets were positive today, helped by the sustained up trend in US indices. South Korea was the best performer with gains of 0.75 per cent. Hong Kong and Singapore ended with gains of around 0.7 per cent each while Japan added 0.6 per cent.

Thailand added nearly 0.6 per cent while Malaysia and Indonesia also closed higher. Shanghai ended with marginal losses.

European indices opened firm and are holding on to gains in afternoon trades. Major indices are trading with gains of between 0.25 and 0.55 per cent each.

Crude oil prices recovered yesterday after OPEC announced further production cuts. Near month NYMEX futures gained 85 cents per barrel and settled at $58.5 per barrel yesterday. The commodity has gained further and is trading around $58.8 in European trades today.

Large-cap news flow

  • has formally launched the $8.1-billion acquisition bid for Corus. The boards of both companies have approved the bid and Corus has recommended the Tata Steel offer to its shareholders. The acquisition is expected to be completed by January 2007.

  • Gujarat Ambuja Cement said upgradation of the Rajasthan cement plant and grinding units in West Bengal and Uttaranchal are progressing well. The 60 MW captive power plant in Gujarat would be completed by first quarter of 2007 and another 21 MW plant by the second quarter.

Mid-Cap Action

Mid-caps and small caps were started on a firm note and rallied ahead. By early afternoon, the mid-cap indices were trading with gains of well over a per cent each. However, they lost part of their gains in closing trades, but managed to end the day with good gains.

The CNX Mid-Cap index ended with gains of 32 points, or 0.68 per cent, at 4741. BSE mid-cap index gained 0.67 per cent and the BSE small cap index added 0.32 per cent.

Select mid-cap IT stocks continued the rally today as well. Tech Mahindra surged today as well and added another 12 per cent, taking the total gains in two sessions to 25 per cent. NIIT Technologies added 11.5 per cent while Sasken Communications ended 8.5 per cent higher.

Bharat Gear and KLG Systel were locked in 10 per cent upper circuits.

Hanung Toys had a modestly positive listing on the exchanges today. The stock opened at Rs100.55 on the NSE as against an issue price of Rs95 per share and finally ended at Rs96.5, a gain of close to 2 per cent from the issue price.

Max India, Ingersol Rand, Canfin Homes, Nava Bharat Ventures and Solectron Centum were the other major gainers among mid-caps.

Geometric Software, Alps Industries, Oil Country Tubular, Wheels India, Vivimed Labs, Munjal Auto and BPL were among the major mid-cap losers.

Mid-cap news flow

  • 3i Infotech has acquired a UK-based asset management software company for an undisclosed amount. The acquired company has current revenues of around $28 million.

  • The board of Atlanta Limited would meet next week to consider an entry into real estate development and issue of shares or warrants on a preferential basis.

  • The board of Areva T&D would meet next week to consider the merger of 3 associate companies with the company.
  • Paramount Communications would split its Rs10 shares into 5 shares of Rs2 each.

  • Hitech Plast would transfer one of its units to a wholly-owned subsidiary for Rs4 crore.

  • The board of Gokaldas Exports would meet next week to consider a stock split.

  • Faze Three has received an export order worth Rs28 crore from Wal-Mart.

  • Apollo Tyres would allot 40m lakh warrants convertible at Rs293 per share to promoters.

  • The board of Cera Sanitaryware would meet later this month to consider a preferential allotment of warrants to promoters.

  • Garware Offshore said ONGC has extended the contract to hire 4 of the company's supply vessels by another 6 months.
  • Rajesh Exports has opened 2 more jewellery retail outlets in Srinagar and Patna.

  • The board of Bhagyanagar India would consider raising of additional resources.

  • Binani Industries said a foreign investor is planning to dilute its 25 per cent stake in Binani Cements through a public offer.

  • Shasun Chemicals would issue 22.5 lakh warrants to promoters.

  • Rain Commodities said its subsidiary Rain Industries would raise its cement capacity from 1.4 million tonnes to 2.9 million tonnes per annum.

*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
12,709.40
-14.19
NIFTY
3,676.85
-0.95
Last Update : 20 October, 2006 16:00 PM

Market Counters
Figures in Rupees

BSE 30
Scrip Name Open High Low Last Price
ACC
982.00
995.95
968.00
977.85
Bajaj Auto
2,828.80
2,829.00
2,730.00
2,741.55
Bharti Tele
493.75
500.95
492.00
412.40
BHEL
2,420.10
2,462.85
2,405.05
2,415.00
Cipla
261.00
264.00
260.50
262.50
Dr Reddys Lab
733.00
738.00
722.00
724.90
Grasim Indus
2,625.00
2,650.00
2,595.00
2,613.40
Guj Ambuja
121.90
122.95
119.50
121.45
HDFC Bank Ltd
978.90
978.90
952.00
960.85
HDFC Ltd
1,465.00
1,478.50
1,445.70
1,449.60
Hero Honda
755.00
756.50
750.00
752.75
Hindalco
187.90
190.00
184.90
187.70
HLL
232.65
233.90
230.80
231.55
ICICI Bank
733.00
744.85
733.00
741.70
Infosys
2,080.00
2,080.00
2,058.05
2,061.70
ITC
192.00
193.00
184.50
185.95
L&T
1,280.00
1,291.75
1,275.00
1,279.70
Maruti
944.90
952.90
933.10
937.20
NTPC
127.00
127.50
125.60
126.10
ONGC
1,150.00
1,165.40
1,141.20
1,153.00
Ranbaxy
413.00
419.90
410.00
412.40
Rel Energy
456.65
462.00
451.20
459.80
Reliance
1,197.20
1,218.80
1,197.20
1,202.05
Satyam
441.00
445.00
424.00
428.35
SBI
1,039.00
1,050.00
1,037.00
1,041.20
Tata Motors
899.00
900.90
886.00
890.85
Reliance Comm Ventures Ltd
375.00
375.00
364.80
369.30
Tata Steel
521.00
521.00
504.55
507.85
TCS
1,099.00
1,102.00
1,085.30
1,088.95
Wipro
552.00
564.45
551.70
556.20
   Last Update : 20 October, 2006 16:00 PM

S&P CNX Nifty
Scrip Name Open High Low Last Price
RELIANCE
1205.8
1219.3
1200
1203.55
TATASTEEL
509
520.9
504.5
508.4
SATYAMCOMP
448
458
424.3
428.45
INFOSYSTCH
2090
2090
2055
2064.1
RCOM
369.35
374.8
365
369.7
SAIL
91.7
92.5
88
90.8
ONGC
1150
1163.5
1140
1152.3
BAJAJAUTO
2819
2849.7
2730.2
2744
ACC
987
996
968
977.65
LT
1285
1292.5
1274
1279.65
ITC
190
193
184.8
186.35
SUZLON
1361
1364
1320.25
1328.9
HINDALC0
186
190
186
187.75
SBIN
1044
1050
1035.25
1040.65
TCS
1100
1102
1086.1
1089.6
ABB
3280
3544
3270
3484.1
BHEL
2422.2
2461.9
2408
2429.45
RANBAXY
415
418.8
408.5
411.45
HDFCBANK
976
978.8
953.25
960.15
ICICIBANK
745
746
726.3
741.5
GUJAMBCEM
122
122.5
119.6
121.45
GRASIM
2648
2650.25
2600
2619.45
WIPRO
552
564.4
551
556.55
ZEETELE
293.5
299.3
291.5
293.1
SIEMENS
1140
1159.9
1137.05
1143.35
MARUTI
951
954
933
937.4
M&M
695
709
691
698.6
BHARTIARTL
490
500.9
490
497.15
REL
460
462
451.15
458.95
TATAMOTORS
894
901.95
882.05
888.55
TATAPOWER
530
537.4
528.45
529.75
PNB
525
525
511.55
514.5
HINDLEVER
233.05
234
230.65
231.75
HEROHONDA
758
760
749.55
752.85
HCLTECH
601.1
609
593.5
599.05
IPCL
305.4
307.9
302.1
304.15
HDFC
1460
1478
1445.75
1450.75
HINDPETRO
308
308
298
299.2
VSNL
419.8
429.4
417.2
423.75
ORIENTBANK
249.45
250.5
238
240.4
DRREDDY
724
738.7
720.05
726.05
BPCL
404
405.9
388
392.35
CIPLA
261
264
260.2
262.8
DABUR
147.5
150.6
145.5
146.75
GAIL
259.75
262
255
255.3
MTNL
157.5
158.5
156.5
157.15
JETAIRWAYS
620.15
627
618
620.5
SUNPHARMA
926
926.95
905
909.55
NATIONALUM
219.5
222.5
218
220.05
GLAXO
1220.1
1222.9
1191
1197.3
Last Update : 20 October, 2006 16:00 PM


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Rex Mathew