|
After exhibiting some confidence last week, the market
seems to have developed reservations about corporate results
due from next week onwards. The indices opened weak and
declined over a percent each in morning trades. After
showing some signs of recovery towards mid-session, they
cracked again under selling pressure and closed near the
lows of the day. Sensex closed at 6480, down 66 points
and the Nifty at 2031, down 22 points.
Among
index stocks ITC, Bajaj Auto and Bharti Tele were the
biggest percentage gainers while Zee Tele, HDFC Bank and
Infosys were the major losers.
Even
though oil prices have declined and world markets have
recovered, domestic market continues to be apprehensive
about the future outlook. Though the results for the Jan-March
quarter is not expected to hold any negative surprises,
investors are concerned about the possibility of weak
future earnings guidance from companies. This is especially
so in the case of IT companies, whose profitability is
expected to be adversely affected by the fringe benefit
tax. To make matters worse, the ADR of Infosys saw a large
sell off on NASDAQ yesterday even as other tech stocks
gained ground.
NYMEX
crude futures for May delivery crashed almost 3 per cent
to around $54 to a barrel yesterday. The decline came
after reports of higher than expected inventory of petroleum
products in the US, which are at their highest levels
in almost three years. In early European trades today,
it has slipped below the $54-mark.
Yesterday,
US markets continued their recovery as NASDAQ gained close
to a per cent and the Dow more than half a per cent. Indian
ADR's had a bad day even in an advancing market as the
tech stocks met with considerable selling pressure. Infosys
lost over 4 per cent while Wirpo lost over 2 per cent.
Satyam, ICICI Bank and MTNL also declined. Tata Motors
and HDFC Bank managed to close with gains.
Exports
from India recorded a 24 per cent increase to touch $80
billion for the year ended March 2005. As per the rough
estimates released by the ministry of commerce, imports
at $105 billion were 34 per cent higher than the previous
year. The strong export performance even as the Rupee
appreciated indicates a structural shift in our export
basket to more value added goods which are less price
sensitive.
Inflation
for the week ended 26 March declined to 5.05 per cent
as against 5.11 per cent the week before. Market had expected
a figure of 4.99 per cent.
The
union cabinet deferred the discussion about a hike in
prices of petroleum products by a week. All oil marketing
companies are losing substantially as crude oil prices
have increased dramatically from the last time petrol
prices were hiked. The government may be taking heart
from the slight decline in crude prices over the last
few days and would not want any inflationary pressures
at this point.
Domestic
power utility NTPC announced its provisional and un-audited
results for the year ended 31 March 2005. The company
beat market expectations by reporting over 30 per cent
increase in profit as compared to the previous year on
a 17 per cent growth in revenues. The profit figures are
after excluding exceptional items. The company is planning
to set up hydro power projects with a total capacity of
5,000 MW.
After
Tata Tea transferred some of its tea estates to companies
controlled by its employees, Hindustan Lever today announced
its plans to transfer its estates in Assam and Tamil Nadu
to subsidiary companies. HLL has indicated that these
subsidiaries may be sold off in future. Tea companies
are trying to get out of the low return estate management
and focus more on marketing.
Mid-cap
action
Sugar stocks corrected as one of the industry leaders,
Bajaj Hindustan, came out with less than promising results
for the quarter ended March 2005. The company doubled
its profit even as sales declined marginally as compared
to the same quarter last year. The decline in sales even
after the company commissioned a new mill disappointed
the market as did the lower than expected realisations
from bagasse. However, the company is carrying most of
its production of current season as stocks and expects
to post better results in the next two quarters.
Nylon
tyre cord manufacturer NRC Ltd is acquiring the Nylon-6
yarn facilities of Nirlon. The plant has a capacity of
12-tonnes per day and will cost NRC Rs60 crore. The company
expects the new facility to add around Rs15 crore to its
bottom line and will be an all cash deal.
Alstom
India was locked in the 20 per cent upper circuit in early
morning trades for the second consecutive day. French
energy utility Areva has come out with an open offer for
a 20 per cent stake in Alstom India at a price of Rs75.03.
The stock is trading at above Rs100, a steep premium to
the offer price. Areva is taking over the company from
the current owner Alstom Holdings.
HCL
Technologies received an order worth Rs20 crore from the
Bangalore Development Authority to implement information
systems in various departments. The stock declined in
line with the general weakness in IT stocks.
Steel
manufacturer Ispat Industries has entered into an agreement
with UTI to restructure the company's borrowings. The
company will have to pay Rs539 crore, including principal
and interest. It will make an upfront payment of Rs55
crore and the balance in monthly installments over the
next three years. The company expects to save around Rs10
crore in interests every quarter after this restructuring.
Mercator
Lines has successfully completed its FCCB issue and has
raised $60 million. The bonds are convertible after 5
years and carry an interest rate of 1.5 per cent. The
bonds will be listed on the Singapore Stock Exchange.
United
Western Bank shot up 10 per cent in morning trades after
the bank approved plans to raise Rs380-crore capital over
the next two years. The bank will raise the amount through
a mix of rights, preferential and GDR issues. The bank
has one of the highest percentages of bad assets in the
industry.
 Jindal
Photo Films, FACT and Aztec Software were the biggest
percentage gainers today, with Jindal Photo gaining 20
per cent.
Reliance
Industrial Infrastructure, Williamson Magor and JP Associates
were among the major losers for the day.
*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
|
6,479.54
|
-66.10 |
| NIFTY
|
2,031.20
|
-21.65
|
Last
Update : 8 April, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| BHARTI
TELE |
210.00
|
214.95
|
210.00
|
213.05 |
| I
T C LTD |
1,355.00
|
1,412.40
|
1,355.00
|
1,401.70 |
| BAJAJ
AUTO |
1,040.00
|
1,061.00
|
1,040.00
|
1,052.90 |
| HINDUSTAN
PETROLEUM CORP. LTD. |
322.30
|
325.00
|
318.30
|
322.70 |
| MARUTI
UDYOG |
410.50
|
414.75
|
407.10
|
411.55 |
| ZEE
TELEF LT |
148.00
|
151.60
|
143.25
|
143.75 |
| INFOSYS
TECHNOLOGIES LTD |
2,170.10
|
2,190.00
|
2,117.00
|
2,126.60 |
| HDFC
BANK LT |
561.00
|
565.00
|
539.10
|
546.85 |
| SATYAM
COMP |
423.00
|
424.00
|
410.60
|
411.55 |
| LARSEN
& TOUBRO LTD. |
1,040.00
|
1,040.00
|
975.50
|
981.90 |
| WIPRO
LTD. |
679.00
|
679.70
|
665.00
|
667.50 |
| TATA
POWER |
349.05
|
349.90
|
340.00
|
341.40 |
| GRASIM
INDUSTRIES LTD. |
1,213.00
|
1,232.00
|
1,190.60
|
1,200.95 |
| BHEL
|
796.00
|
796.00
|
755.00
|
778.00 |
| RELIANCE*
|
562.00
|
566.90
|
553.10
|
557.15 |
| HINDALCO
IN |
1,368.00
|
1,374.00
|
1,345.00
|
1,347.95 |
| TATA
IRON AND STEEL CO. LTD. |
387.00
|
389.70
|
379.40
|
381.25 |
| GUJARAT
AMBUJA CEMENTS LTD. |
410.00
|
411.30
|
401.00
|
404.10 |
| HEROHONDA
M |
544.00
|
544.00
|
534.10
|
535.40 |
| HOUSING
DEVELOPMENT FINANCE CO |
719.45
|
722.70
|
708.10
|
711.55 |
| RELIANCE
ENR* |
531.00
|
534.20
|
525.00
|
525.85 |
| RANBAXY
LABORATORIES LTD. |
989.00
|
995.00
|
972.00
|
977.60 |
| ICICI
BANK L |
405.60
|
415.70
|
402.25
|
405.50 |
| ONG
CORP LTD |
894.00
|
897.90
|
881.10
|
886.20 |
| TATA
MOTORS |
426.00
|
427.00
|
419.00
|
420.80 |
| ACC |
|
|
|
362.15 |
| Cipla |
|
|
|
251.50 |
| Dr.
Reddys Laboratories |
|
|
|
744.90 |
| HLL |
|
|
|
131.75 |
| State
Bank Of India |
|
|
|
653.40 |
Last
Update : 8 April, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| INFOSYSTCH
|
2175.50
|
2180.00
|
2118.00
|
2127.90 |
| RELIANCE
|
567.00
|
568.00
|
553.40
|
556.85 |
| TISCO
|
386.05
|
389.50
|
379.25
|
381.05 |
| SBIN
|
657.00
|
659.45
|
648.00
|
653.15 |
| SATYAMCOMP
|
423.00
|
424.00
|
410.25
|
411.75 |
| ITC
|
1380.00
|
1410.00
|
1365.00
|
1400.20 |
| TATAMOTORS
|
425.00
|
427.70
|
418.80
|
422.70 |
| MARUTI
|
414.00
|
415.00
|
407.10
|
411.50 |
| TCS |
1430.70 |
1434.90
|
1390.05
|
1393.55 |
| BHEL
|
792.00
|
795.00
|
759.05
|
777.20 |
| ONGC
|
900.00
|
900.00
|
880.00
|
886.05 |
| PNB |
391.00 |
392.00
|
381.00
|
381.60 |
| SAIL
|
63.50
|
63.80
|
62.65
|
62.90 |
| LT
|
1012.50
|
1012.50
|
975.00
|
983.55 |
| RANBAXY
|
990.00
|
994.00
|
972.10
|
978.75 |
| HINDPETRO
|
320.00
|
325.00
|
318.00
|
322.40 |
| M&M
|
481.90
|
482.00
|
470.65
|
476.25 |
| ACC |
365.90 |
366.10
|
351.05
|
361.75 |
| WIPRO
|
678.50
|
678.50
|
663.00
|
665.20 |
| ORIENTBANK
|
315.00
|
315.00
|
300.55
|
304.85 |
| BPCL |
367.10 |
374.00
|
362.80
|
364.20 |
| GUJAMBCEM
|
411.00
|
412.45
|
400.65
|
404.50 |
| HCLTECH
|
380.00
|
380.50
|
369.05
|
370.60 |
| ICICIBANK
|
409.80
|
415.90
|
400.15
|
403.95 |
| TATAPOWER
|
347.10
|
349.60
|
340.00
|
341.95 |
| HDFCBANK
|
563.95
|
565.00
|
538.00
|
546.65 |
| CIPLA
|
254.75
|
255.00
|
250.25
|
251.60 |
| ZEETELE
|
148.95
|
151.70
|
143.00
|
143.95 |
| GAIL
|
217.00
|
217.50
|
212.00
|
213.15 |
| BHARTI |
210.70 |
213.45
|
210.05
|
212.80 |
| HINDLEVER
|
131.55
|
133.80
|
131.50
|
132.05 |
| IPCL
|
172.00
|
172.00
|
169.00
|
169.65 |
| REL |
532.00 |
534.50
|
525.00
|
525.70 |
| GRASIM
|
1220.00
|
1229.00
|
1191.00
|
1201.30 |
| DRREDDY
|
754.00
|
755.80
|
738.00
|
746.10 |
| MTNL
|
118.20
|
119.00
|
116.05
|
116.65 |
| HDFC |
719.50 |
722.00
|
708.20
|
712.50 |
| HEROHONDA
|
536.00
|
544.80
|
531.25
|
533.55 |
| HINDALC0
|
1370.00
|
1374.00
|
1340.00
|
1346.15 |
| TATACHEM
|
157.35
|
157.35
|
154.55
|
155.40 |
| NATIONALUM
|
174.30
|
175.00
|
171.00
|
173.30 |
| BAJAJAUTO
|
1041.05
|
1069.00
|
1041.05
|
1055.70 |
| SCI
|
154.80
|
156.00
|
152.75
|
155.05 |
| COLGATE
|
189.00
|
199.95
|
188.50
|
190.80 |
| VSNL
|
201.00
|
201.80
|
194.15
|
195.05 |
| TATATEA
|
533.00
|
535.95
|
527.20
|
528.80 |
| DABUR
|
113.95
|
114.00
|
110.65
|
111.95 |
| ABB
|
1233.00
|
1240.00
|
1200.00
|
1214.45 |
| SUNPHARMA
|
462.00
|
462.95
|
460.00
|
460.35 |
| GLAXO
|
707.00
|
711.00
|
702.00
|
703.75 |
Last
Update : 8 April, 2005, 16:04PM
| 
