labels: stock markets - india, markets - general
Sensex rallies past 14600; Bajaj Auto jumps 9 per cent news
Rex Mathew
07 February 2007

Market: Indices
Gain (+) / Loss (-)
Last Update : 7 February, 2007 15:56 PM

Indices had an uncertain start as global cues were not very firm. Select stocks remained depressed after yesterday's decline and kept the indices within a range in early trades. Helped by select frontline stocks, the indices started a rally by mid-morning which took them to new highs. There was some volatility in afternoon trades, but the indices recovered in the closing minutes to end near the day's highs.

Sensex posted a new lifetime high of 14663 in intra-day trades while the Nifty touched an all-time high of 4232. Both indices ended at new lifetime closing highs.

Sensex closed with gains of 165 points at 14643 and the Nifty gained 28 points to end at 4224. Nifty February futures closed at a discount of 3 points to the spot index.

Bajaj Auto soared after a firm start and ended with massive gains of 9.03 per cent. Hero Honda recovered from yesterday's fall and closed 2.7 per cent higher.

Infosys made a smart up move after many weeks and closed 3.7 per cent higher.

ICICI Bank rallied 2.64 per cent following lending rate hikes.

SAIL surged 4.87 per cent to new lifetime highs while Hindalco closed 4.33 per cent higher.

VSNL bounced back after yesterday's decline and ended 2.92 per cent higher.

Grasim was the best performer among cement stocks with gains of 2.81 per cent.

L&T continued its rally and added 2.43 per cent.

Cipla was the other major gainer and ended 2.94 per cent higher.

Aditya Birla Nuvo, which holds a sizeable stake in the soon to be listed Idea Cellular, rallied and ended 10.3 per cent higher.

Bharat Electronics, one of the major defence manufacturers, surged 10.12 per cent.

ONGC slipped 1.79 per cent and limited the gains for frontline indices.

Firm oil prices pulled down oil marketing stocks today as well. BPCL was the worst performer with losses of 2.61 per cent while HPCL ended 0.98 per cent lower.

Tata Motors lost 1.93 per cent on reports of fresh agitations at its proposed plant site in West Bengal.

Tata Power corrected 1.5 per cent after rallying for two days.

Suzlon Energy also corrected 1.47 per cent following the recent recovery.

HLL saw some profit booking and ended 0.84 per cent lower.

Reliance Communications continued to lose ground and ended 0.76 per cent lower.

Glaxo and Gujarat Ambuja were the other major losers.

Global markets / crude oil
US indices recovered from their mid-session weakness ended with very marginal gains yesterday. Absence of major triggers kept the indices within a range though firm oil prices and concerns about sustained corporate performance cast shadows over market sentiment.

The Dow managed to close with gains of close to 0.05 per cent while the S&P 500 ended more than 0.05 per cent higher.

Technology stocks also managed a late recovery and the NASDAQ gained 0.05 per cent.

Asian markets were mostly firm today after two sessions of mixed trend. Shanghai continued its recovery and gained another 1.5 per cent while Malaysia added 0.55 per cent. Singapore ended 0.4 per cent higher and Thailand closed with gains of 0.25 per cent.

Indonesia gained 0.2 per cent and Hong Kong closed with modest gains

Japan gave up 0.65 per cent and South Korea slipped 0.15 per cent.

European markets were mixed in opening and continue to be so.

Crude oil prices ended with modest gains yesterday as traders awaited inventory data and weather forecasts. Near month NYMEX futures ended 14 cents higher at $58.88 per barrel yesterday. The commodity has gained over 0.5 per cent and is trading over $59 per barrel in European trades today.

Large-cap news flow

  • M&M has placed a non-binding bid for acquiring a 43.5 per cent stake in Punjab Tractors, according to media reports quoting company officials. Punjab Tractors is the second largest tractor manufacturer in the country. Others like Tata Motors and privately-held TAFE are also reportedly interested in the stake.
  • ICICI Bank has hiked its benchmark lending rate to 14.75 per cent from 13.75 per cent earlier. The bank has also increased its floating reference rate on consumer loans to 11.75 per cent from 10.75 per cent. Deposit rates on 5-year deposits have been increased to 9.5 per cent from 8.25 per cent.
  • Wipro is planning to complete an overseas acquisition in the current quarter, according to unconfirmed media reports. The company is currently evaluating nearly 12 potential acquisition targets, according to these reports
  • Ranbaxy has received US FDA approval for an antibiotic in oral suspension form used for treating respiratory infections in children
  • SBI is in the process of raising $700 million as part of its earlier announced medium term note (MTN) programme, according to reports
  • L&T is planning to build a new shipyard for small vessels, according to reports

Mid-Cap Action
Mid-caps and small caps nearly matched the large caps till afternoon before giving up most of their gains. The CNX Mid-Cap index ended 18 points, or 0.32 per cent, higher at 5409. BSE mid-cap index gained 0.07 per cent and the BSE small cap index ended with gains of 0.46 per cent.

Akruti Nirman, a real estate developer, got listed on the exchanges today. Issued at Rs540, the stock opened at Rs724.45 on the NSE and saw a high of Rs730. The stock gave up most of its gains and finally ended at Rs563.45.

Cambridge Technologies, another new listing today, had a spectacular debut. Issued at Rs38, the stock opened at Rs45 on the NSE and saw a high of Rs109.7. The stock finally settled at Rs100.9.

Premier Limited, K Sera Sera and Autoline Industries all ended at 10 per cent upper circuits.

Select mid-cap IT stocks surged ahead today as well. Aftek rallied 19.13 per cent while Saksoft was locked in 10 per cent upper circuit. Kale Consultants and NIIT Tech were the other major gainers.

Select private sector banking stocks also attracted considerable interest. Lakshmi Vilas Bank ended at 20 per cent upper circuit while IndusInd Bank rallied 14.04 per cent.

Selan Oil Exploration, Patni Computers, Timken India, Allsec, Tourism Finance Corp, Mukand Engineering, Heritage Foods, Trigyn, Shree Ashtavinayak and Nissan Copper were among the major mid-cap losers.

Mid-cap news flow

  • Punj Lloyd has announced a capital restructuring plan. The company would issue 1 crore equity shares in lieu of 1 crore preference shares issued earlier. Additional funds would be raised by issuing 1.75 crore equity shares and 80 lakh convertible warrants. The company is also planning to spilt its Rs10 shares into 5 shares of Rs2 each
  • UTI Bank has completed its upper tier-II subordinated debenture issue and has raised Rs107.5 crore
  • The open offer by EDS for 20 per cent of Mphasis at Rs204.5 per share would close on 17 February
  • Emco is planning to make strategic investments of up to Rs100 crore in electrical equipment industry
  • Venus Remedies would hike the FII investment limit to 49 per cent
  • Aurionpro would raise Rs49 crore from a preferential issue of equity shares and convertible warrants at a price of Rs252 per share
  • Atul Auto has commenced full scale production at its new plant in Uttaranchal
  • An open offer has been announced for 20 per cent of Dunlop India at a price of Rs10 per share by the new promoters
  • The new promoters have announced an open offer for 20 per cent of Falcon Tyres at a price of Rs151 per share
  • Zenotech has signed a product development agreement with Ranbaxy for a biosimilar product used in cancer treatment.
  • The board of Brakes Auto would meet this week to consider a rights or public issue to finance the company's new plant
  • Lupin has received US FDA approval for a depressive disorder drug in tablet form
  • Taneja Aerospace is planning to form a JV with a European company for maintenance, repair and overhaul of aircrafts
  • Marsons has received an order worth Rs3.3 crore for supplying transformers
  • Valecha Engineering would acquire a 60 per cent stake in a Singapore based company for an undisclosed amount. In return, the Singapore company would acquire a 5 per cent stake in the company and a 48 per cent stake in one of the subsidiaries
  • AP Paper would raise Rs20 crore from a preferential issue of equity shares to promoters
  • Jupiter Biosciences said the company has formed alliances with overseas companies and has received orders for peptides. Details have not been disclosed
  • ICSA India has received work orders for projects worth a total of Rs12.8 crore

*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.

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Sensex rallies past 14600; Bajaj Auto jumps 9 per cent