|
Markets opened on the back of rising crude prices and a weak US market
overnight, but was firm in early trades. Till noon it looked like the market
would break its three day losing run and manage a small rally. Such hopes
were belied as the indices took a downturn in the afternoon, possibly because
of lower FII activity. Sensex closed at 6747, down a marginal 5 points and
the Nifty at 2126, down 3 points. The Nifty futures discount to the spot index
narrowed to 6 points.
Inflation
worries continue to keep US markets down. Crude remains firm even as winter
comes to an end and continues to trade around the $55 to a barrel mark. The
Dow closed half a per cent down while NASDAQ lost three fourths of a per cent.
Indian ADR's declined further in the general weakness in market, with the
exception of ICICI Bank which ended its weak trend to close with gains of
a per cent. VSNL was the major loser with losses of more than 4 per cent while
Tata Motors, Satyam and HDFC Bank lost further ground. The
day belonged to private sector banking major ICICI. The stock which had gone
through a correction over the last few days rallied over 5 per cent to an
intra-day high of Rs407 before closing at Rs401. The bank is expected to price
its sponsored ADR issue in a few days. The market expects the price to be
over Rs400 as the ADR is currently quoting above this level. IPO by group
company 3i Infotech may also act as another trigger for this stock. Petroleum
marketing companies had a good day with HPCL leading with gains of 2 per cent.
BPCL and IOC also closed in the green. Sections of the market may be expecting
a price hike after the union cabinet meeting scheduled later for the day even
though the oil ministry has ruled out any price hike this month. Steel
stocks continued to rally with both Tata Steel and SAIL touching new yearly
highs today. SAIL closed with gains of more than 2 per cent while Tata Steel
closed in the red. Nalco
was the other major gainer among index stocks on the back of rising aluminum
prices. Among the tech pack, TCS remained firm while Infosys, Wipro and Satyam
closed with losses. Reliance
continued its downtrend on fresh demands for a detailed probe from some politicians.
Controversies surrounding the family and bad corporate governance have taken
a huge toll on the stock even as it remains relatively undervalued based on
business fundamentals. Mid-cap
action
Mid-size private sector bank UTI Bank completed its GDR issue for $239.3 million.
The GDR was priced at Tuesday's closing rate in the domestic market and would
be listed on the London Stock Exchange. Funds raised from the issue would
boost the bank's capital adequacy. The stock ended lower after opening firm
in the morning. Orchid
Pharmaceuticals announced tie up with a US-based company for marketing generic
lifestyle drugs which are going off patent from 2007. This is the second tie
up by Orchid for the US generics market. Investors should note that revenues
would start flowing in only from 2007. Prospects of such deals are exposed
to risks such as future prices of the drugs and new products coming into the
market. Orchid is one of the largest manufacturers of cephalosporin in the
world and its recent financial performance was affected by a major drop in
prices. The stock shot up more than 3 per cent before cooling off. Crew
BOS, an exporter of garments to major retail chains, decided to raise additional
resources of up to $10 million through a GDR / FCCB issue. The funds are being
raised for expansion plans and a foray into retailing. The stock which rallied
on this announcement cooled off to close in the red. Construction
companies continue to buzz with strong order gains almost every other day.
Madhucon Projects announced yet another order from the government of Andhra
Pradesh for over Rs600 crore after the Rs400 crore order yesterday. Another
construction company, MSK Projects, won two irrigation projects worth Rs80
crore. Both the counters posted good gains as did others like Gammon India
and IVRCL. Current financials of many of these companies are not very attractive
and the bulging order books would take some time to reflect in the results.
Investors should guard against the market taking a reality check in these
stocks maybe on the next quarterly numbers. Rajesh
Exports was another winner in the mid-cap space gaining 5 per cent in early
trades. The company is an exporter of precious jewelry and had recently won
contracts the Far East and Middle East. The stock has attracted a lot of attention
from FII's. The
momentum in small steel stocks continued today with many of them posting one-year
highs. Many of these stocks have assumed lives of their own on the back of
increased trader activity. This becomes more evident since the frontline steel
stocks are not attracting the same attention. It still beats many why these
companies are attracting so much attention when the best steel company in
the country, Tata Steel, is available at 6 times its next year's earnings.
Ispat Industries and Essar Steel led the rally with others joining in. Many
sugar stocks corrected as buying support is not emerging at higher levels.
Oil
prices were trending lower in early European trades as OPEC is expected to
boost output by up to half a million barrels per day. Saudi Arabia, the largest
OPEC member, is believed to be looking at a price band of $40 to $50 for oil
in future. US markets would take the lead from these statements from the OPEC
meeting.  The
weak closing has turned the sentiment slightly more negative and market may
find it difficult to bounce back strongly, even though a minor recovery is
very much possible.
*Disclaimer:
The author doesn't have any position in 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.
Other
articles by Rex Mathew List
of general reports on markets List
of general reports on finance Market:
Indices
National
Markets
Gain (+) / Loss (-)
|
SENSEX
|
6,746.88
|
-5.57 |
| NIFTY
|
2,125.55
|
-3.40 |
Last
Update : 16 March, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| ICICI
BANK L |
385.00
|
407.70
|
384.60
|
400.70 |
| HINDUSTAN
PETROLEUM CORP. LTD. |
334.00
|
341.75
|
332.50
|
339.35 |
| ZEE
TELEF LT |
137.20
|
138.45
|
134.65
|
136.90 |
| RELIANCE*
|
569.05
|
577.40
|
567.50
|
573.55 |
| HINDALCO
IN |
1,449.00
|
1,460.00
|
1,436.20
|
1,443.75 |
| DR.REDDY'S
LABORATORIES LTD. |
754.50
|
766.00
|
752.00
|
757.05 |
| GUJARAT
AMBUJA CEMENTS LTD. |
429.00
|
435.50
|
427.00
|
427.95 |
| TATA
MOTORS |
458.10
|
462.10
|
453.00
|
456.55 |
| MARUTI
UDYOG |
453.05
|
456.00
|
447.10
|
449.60 |
| HDFC
BANK LT |
590.00
|
603.90
|
585.50
|
593.80 |
| BHARTI
TELE |
215.50
|
215.50
|
209.00
|
209.55 |
| RELIANCE
ENR* |
554.95
|
555.00
|
535.00
|
537.90 |
| HEROHONDA
M |
565.00
|
565.00
|
549.00
|
553.50 |
| RANBAXY
LABORATORIES LTD. |
1,066.00
|
1,079.90
|
1,046.50
|
1,051.60 |
| LARSEN
& TOUBRO LTD. |
1,099.00
|
1,115.00
|
1,061.55
|
1,067.95 |
| SATYAM
COMP |
406.30
|
410.00
|
401.35
|
402.40 |
| GRASIM
INDUSTRIES LTD. |
1,364.00
|
1,376.50
|
1,336.10
|
1,339.90 |
| BHEL
|
808.20
|
815.80
|
793.30
|
796.75 |
| TATA
POWER |
384.00
|
388.00
|
377.60
|
380.50 |
| TATA
IRON AND STEEL CO. LTD. |
445.15
|
446.50
|
438.00
|
440.05 |
| ASSOCIATED
CEMENT COMPANIES LT |
364.90
|
367.10
|
360.05
|
360.75 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,191.00
|
2,223.70
|
2,171.00
|
2,192.30 |
| ONG
CORP LTD |
916.50
|
923.85
|
902.55
|
907.55 |
| HOUSING
DEVELOPMENT FINANCE CO |
788.00
|
798.00
|
778.50
|
782.50 |
| STATE
BANK OF INDIA |
732.80
|
737.90
|
724.20
|
728.10 |
| HINDUSTAN
LEVER LTD. |
137.90
|
138.00
|
135.00
|
135.35 |
| WIPRO
LTD. |
685.00
|
690.00
|
679.55
|
681.45 |
| I
T C LTD |
1,343.00
|
1,348.50
|
1,331.00
|
1,336.75 |
| CIPLA
LTD. |
287.00
|
290.00
|
280.30
|
283.00 |
| Bajaj
Auto |
|
|
|
1,094.45 |
Last
Update : 16 March, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
571.05
|
577.80
|
567.60
|
574.10 |
| SAIL |
66.90 |
69.55
|
66.75
|
67.80 |
| TISCO
|
443.10
|
446.65
|
438.00
|
439.60 |
| SATYAMCOMP
|
408.90
|
409.00
|
401.00
|
401.30 |
| SBIN
|
732.05
|
738.00
|
725.05
|
726.70 |
| INFOSYSTCH
|
2196.00
|
2224.70
|
2186.10
|
2190.05 |
| ONGC
|
1000.00
|
1000.00
|
902.50
|
907.50 |
| TCS
|
1440.00
|
1467.60
|
1440.00
|
1448.00 |
| ICICIBANK
|
385.00
|
407.80
|
384.00
|
400.60 |
| TATAMOTORS
|
459.00
|
462.50
|
453.65
|
458.00 |
| GAIL
|
241.00
|
243.30
|
235.75
|
236.80 |
| RANBAXY
|
1065.00
|
1080.00
|
1046.35
|
1050.10 |
| HINDPETRO
|
334.00
|
341.70
|
332.10
|
340.00 |
| MARUTI
|
451.00
|
455.80
|
447.50
|
447.50 |
| ORIENTBANK
|
361.00
|
363.40
|
353.60
|
355.00 |
| BHEL |
809.40 |
815.40
|
796.05
|
796.05 |
| NATIONALUM
|
185.50
|
192.40
|
185.50
|
190.50 |
| ITC
|
1347.00
|
1347.65
|
1329.00
|
1335.10 |
| PNB |
478.00 |
483.00
|
468.20
|
469.00 |
| BHARTI
|
216.00
|
216.00
|
209.00
|
210.50 |
| LT
|
1100.00
|
1110.00
|
1060.00
|
1063.05 |
| ACC
|
364.00
|
366.90
|
360.40
|
360.55 |
| CIPLA
|
285.00
|
289.55
|
281.10
|
285.00 |
| BPCL
|
390.00
|
398.80
|
387.10
|
393.55 |
| TATAPOWER
|
384.00
|
387.70
|
377.50
|
381.50 |
| DRREDDY
|
752.00
|
765.40
|
752.00
|
755.05 |
| WIPRO
|
684.00
|
690.85
|
680.10
|
681.50 |
| HINDALC0
|
1440.00
|
1452.70
|
1435.00
|
1439.00 |
| REL
|
549.00
|
555.55
|
535.60
|
539.00 |
| HINDLEVER
|
136.50
|
137.50
|
135.00
|
135.10 |
| GUJAMBCEM
|
426.10
|
435.45
|
426.10
|
428.00 |
| M&M
|
532.00
|
534.40
|
526.50
|
530.50 |
| HCLTECH
|
365.95
|
372.20
|
365.50
|
366.60 |
| ZEETELE
|
136.30
|
138.15
|
134.30
|
137.10 |
| HDFC
|
800.00
|
811.00
|
777.20
|
782.00 |
| HDFCBANK
|
594.90
|
604.00
|
584.00
|
594.70 |
| HEROHONDA
|
585.00
|
616.00
|
550.05
|
552.00 |
| GRASIM
|
1360.00
|
1378.00
|
1335.20
|
1338.00 |
| IPCL
|
181.00
|
181.85
|
180.00
|
180.00 |
| MTNL
|
135.50
|
135.50
|
133.15
|
133.55 |
| VSNL
|
208.00
|
212.50
|
203.60
|
204.00 |
| SCI
|
169.60
|
169.60
|
164.10
|
164.45 |
| GLAXO
|
764.00
|
764.00
|
746.00
|
750.00 |
| TATACHEM
|
154.40
|
156.50
|
153.00
|
153.00 |
| BAJAJAUTO
|
1085.00
|
1096.95
|
1075.10
|
1094.70 |
| TATATEA
|
526.00
|
533.00
|
522.00
|
525.00 |
| SUNPHARMA
|
484.00
|
489.90
|
482.50
|
487.85 |
| DABUR
|
121.00
|
121.00
|
118.20
|
119.80 |
| ABB
|
1229.00
|
1229.00
|
1208.00
|
1213.30 |
| COLGATE
|
182.00
|
182.00
|
178.75
|
179.70 |
Last
Update : 16 March, 2005, 16:04PM
| 
