labels: stock markets - india, markets - general
Rex Mathewnews
02 November 2006


Helped by strong gains in index heavyweights ONGC and Reliance Industries, markets continued their upward march today as well - despite the decline in US indices yesterday and a mixed trend in Asia today.

Indices maintained a relatively steady up trend throughout the session, before seeing some profit booking in the last hour of trade. By then the Sensex had comfortably crossed 13100 and set a new lifetime high of 13138 while the Nifty touched a new peak of 3806.

Both indices ended at new lifetime closing highs.

The Sensex closed with gains of 58 points at 13091 and the Nifty gained 24 points to end at 3791. Nifty November futures closed at a premium of 4 points to the spot index.

If Reliance Industries led the rally yesterday, it was ONGC's turn to catch up today. Helped by some unconfirmed news flows on overseas oil asset acquisitions, the stock rallied and ended 4.32 per cent higher

Reliance Industries saw some action in afternoon trades and closed 1.5 per cent higher at a new lifetime high

Among engineering stocks, Siemens added 2.66 per cent and L&T gained 1.29 per cent

Maruti rallied 2.17 per cent on good sales volumes for October. Among other auto stocks, Bajaj Auto gained 1.4 per cent

Zee Tele sustained the up trend and gained another 1.67 per cent
Bharti recovered from yesterday's fall and gained 1.31 per cent

Among other gainers, HDFC and Dr. Reddy's gained 1.32 per cent each

Aluminium stocks were under pressure as Nalco lost 2.14 per cent and Hindalco gave up 0.94 per cent

Among telecom stocks, VSNL continued to decline and was the worst performer among index stocks with losses of 2.34 per cent.

MTNL lost another 1.51 per cent

Tech stocks were weak following the decline in US tech indices yesterday. Satyam slipped 1.91 per cent. Infosys lost 0.89 per cent and Wipro ended 0.81 per cent lower

Among FMCG stocks, Dabur corrected 1.39 per cent and ITC closed 1.21 per cent lower

Sun Pharma was the other major loser among index stocks, closing 0.77 per cent lower.

Global markets / crude oil
US markets came under pressure yesterday on more data which indicate to further economic slowdown. This triggered profit booking after the sustained gains of last many sessions. The decline in oil prices kept oil stocks low.

The Dow index closed more than 0.4 per cent lower while the S&P 500 index ended with losses of nearly 0.75 per cent. Technology stocks were the worst hit and the NASDAQ index lost over 1.35 per cent.

Despite the weakness in US indices, Asian markets were mostly firm in morning trades before giving up part of their gains later in the day. Singapore, Thailand and Shanghai lost 0.25 per cent each while Japan closed 0.15 per cent lower.

Indonesia was the best performer, adding over 1.1 per cent, followed by South Korea which gained nearly 0.7. Malaysia ended with gains of 0.6 per cent.

European indices opened firm but gave up all their gains and have slipped in early afternoon trades. Major indices are trading with losses of between 0.1 per cent and 0.6 per cent.

Crude oil prices were weak for most of yesterday, but staged a late recovery and ended nearly unchanged. Near month NYMEX futures lost just 2 cents and ended at $58.71 per barrel yesterday. The commodity has lost around 40 cents per barrel in European trades today.

Large-cap news flow

  • Reliance Industries is planning to invest a massive $5.2 billion to develop its natural gas blocks in the KG basin. The company has sought approval to increase the production rate to 80 million cubic metres per day from 40 million earlier. The company expects production to start from the second half of financial year 2008-09. Reliance holds a 90 per cent stake in the block while the balance is held by Canadian company Niko Resources.

  • ONGC Videsh, ONGC's overseas oil exploration subsidiary, has been offered stakes in oil fields in Iran and Angola by Norwegian company Norsk Hydro, according to unconfirmed media reports. In return, ONGC Videsh may offer a stake in some exploration blocks in Cuba to Norsk Hydro.

  • ONGC Videsh is also in negotiations with Russian oil companies to acquire exploration blocks in Russia and other overseas locations, according to unconfirmed news agency reports.

  • Reliance Communications and its subsidiary Reliance Telecom would transfer all their wireless towers and related infrastructure to a wholly owned subsidiary.

Mid-Cap Action

Mid-caps and small caps also sustained the rally from yesterday. They opened firm and gained strength to reach their highs in early afternoon trades. The afternoon session saw some paring of gains on profit booking.

The CNX Mid-Cap index ended with gains of 31 points, or 0.63 per cent, at 4890. BSE mid-cap index gained 0.34 per cent and the BSE small cap index ended 0.38 per cent higher.

IFB Industries, TCI Finance, RPG Transmission, Sutlej Industries, Manugraph, TVS Electronics, Indian Hume and Khaitan Electricals were all locked in 10 per cent upper circuits.

Elecon Engineering and HEG were the other major gainers among mid-caps

Panacea Biotech, Shreyas Shipping, Ruchi Infrastructure, Khandwala Securities, Rohit Ferro, McDowell, Jaypee Hotels and Birla VXL were among the major mid-cap losers.

Mid-cap news flow

  • Geometric Software has acquired a 95 per cent stake in a US-based engineering services company for $23.75 million. The transaction was financed by a preferential issue of equity shares to institutional investors and internal accruals.

  • Action Construction has clarified that it has not finalised any overseas acquisitions through 2 proposals are under consideration

  • Alkyl Amines would raise Rs10 crore from an issue of convertible preference shares to promoters.

  • Empire Industries would build a commercial building at Vikhroli at a total cost of Rs25 crore.

  • Marathon Nextgen has ceased to be a sick company under BIFR

  • Infotech Enterprises said it is providing engineering and design services to Bombardier, a leading global manufacturer of rail transportation equipment.

  • Visa Steel has commissioned a new coke oven unit, taking the total capacity to 3 lakh tonnes per annum

  • Sakthi Sugars has acquired a Chennai-based privately held entity, which does not have any production facility, for an undisclosed sum.

  • JL Morison has renewed the contract with Nivea India for manufacturing and distributing the Nivea range of personal care products in the country for next year.

  • Pioneer Investcorp has acquired the whole of Pioneer Commodity Intermediaries, a member of commodity exchange NCDEX.

  • Colour Chips would provide animation and creative services for developing television programmes in Australia.

  • Vimta has started commercial production at its new facility in Andhra Pradesh. The company has received a new order worth $2.5 million

  • IndusInd Bank has received RBI permission to open 10 new branches and set up an additional 100 ATM's.

  • The board of Classic Diamonds would meet next week to consider a stock split. The board would also consider the merger of another entity with the company besides raising up to $100 million for overseas acquisitions.

  • BL Kashyap has denied media reports that the company is planning a private placement of equity shares.

*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
13,091.12
+58.08
NIFTY
3,791.20
+24.15
Last Update : 2 November, 2006 16:00 PM

Market Counters
Figures in Rupees

BSE 30
Scrip Name Open High Low Last Price
ACC
980.00
990.00
979.05
981.90
Bajaj Auto
2,794.00
2,805.00
2,728.00
2,780.85
Bharti Tele
543.00
552.80
539.00
548.80
BHEL
2,462.00
2,480.00
2,448.00
2,456.35
Cipla
260.00
260.45
255.00
255.65
Dr Reddys Lab
750.00
769.90
746.00
760.85
Grasim Indus
2,770.00
2,798.40
2,756.00
2,781.15
Guj Ambuja
119.50
120.60
118.10
119.30
HDFC Bank Ltd
991.00
1,020.00
981.20
1,008.60
HDFC Ltd
1,430.00
1,451.00
1,425.00
1,442.05
Hero Honda
766.00
770.90
761.10
766.10
Hindalco
190.70
192.40
188.60
189.15
HLL
238.00
240.75
236.55
237.55
ICICI Bank
773.00
782.25
771.20
778.20
Infosys
2,100.00
2,104.50
2,077.00
2,084.90
ITC
190.50
191.10
188.00
188.60
L&T
1,328.00
1,349.50
1,328.00
1,339.00
Maruti
968.00
989.00
965.00
981.85
NTPC
130.00
131.45
129.00
129.45
ONGC
810.00
842.00
806.00
838.95
Ranbaxy
400.00
405.00
394.55
403.50
Rel Energy
484.00
489.90
473.10
478.10
Reliance
1,264.00
1,298.50
1,260.80
1,283.60
Satyam
433.00
434.00
426.05
427.10
SBI
1,120.00
1,135.00
1,107.00
1,124.00
Tata Motors
831.00
845.00
827.10
829.05
Reliance Comm Ventures Ltd
385.00
394.75
385.00
391.60
Tata Steel
491.00
495.50
486.00
487.20
TCS
1,090.00
1,090.00
1,072.10
1,080.10
Wipro
538.00
542.75
532.00
533.70
   Last Update : 2 November, 2006 16:00 PM

S&P CNX Nifty
Scrip Name Open High Low Last Price
RELIANCE
1268
1299
1258.5
1283.35
RCOM
395
395.9
386.8
393.05
TATAMOTORS
832
844.5
828
829.65
ONGC
808
842
805.1
838.8
INFOSYSTCH
2093
2100
2077
2084.75
ZEETELE
319.8
324.8
313.5
322.55
TATASTEEL
490.1
495.45
485.55
486.8
SIEMENS
1237.05
1290
1235.1
1264.65
MARUTI
964.7
988.9
964.7
982.4
BAJAJAUTO
2734.9
2798
2728
2780.05
LT
1332
1349
1328
1338.75
SBIN
1110
1129.9
1105.3
1125.4
SATYAMCOMP
434
434
425.3
427
WIPRO
536
543
531.25
533.15
ICICIBANK
760
784.8
760
779.6
HINDLEVER
238.15
240.9
236
237.5
TCS
1090
1090
1072
1080.05
BPCL
410.3
417.6
409.2
413.8
GRASIM
2770
2800
2753.3
2783.35
GUJAMBCEM
119
120.65
118.05
119.5
ACC
980
990
980
982.8
SAIL
86.4
87.6
86.2
86.75
BHEL
2459
2481.9
2435
2457.8
BHARTIARTL
539
554
539
548.2
HINDALC0
191.9
191.9
188.5
189.1
DRREDDY
750
770
735
760.75
ITC
190.25
191.2
188
188.5
M&M
781.9
785
775
776.95
MTNL
144.5
145
139.55
139.85
HINDPETRO
330
337.45
328.5
332.2
VSNL
435
439.95
431.25
434.35
SUZLON
1306
1327.1
1304.1
1310
IPCL
296.5
298.5
292
293.6
HDFC
1402.25
1451.1
1380
1444.5
HDFCBANK
996
1017.9
986
1010.55
RANBAXY
400
405
391.5
403.45
PNB
523
527.8
519.25
523.9
ABB
3590
3625
3560
3571.85
ORIENTBANK
256.8
259.95
254.5
258.25
HEROHONDA
770
770
760.35
766.05
CIPLA
256.9
260.4
255.2
256.25
REL
481.05
483
472.6
478.2
DABUR
154.6
155.1
151.5
152.45
NATIONALUM
231.9
233.5
225
225.85
HCLTECH
615
621.8
608.4
616.05
GLAXO
1179.8
1188
1163
1169.3
TATAPOWER
540.6
553
540.6
550.85
GAIL
253.1
255.85
252
252.55
SUNPHARMA
923.8
923.8
903
906.1
JETAIRWAYS
595.8
595.8
585.1
589.85
Last Update : 2 November, 2006 16:00 PM


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Rex Mathew