Indices opened on a flat note in the morning even as most Asian markets posted decent gains in early trades. Markets remained range bound for an hour or so before they started a strong up trend.

After making significant gains by noon, the indices again got stuck into a trading range till late in the afternoon. A strong rally in the last one hour helped the indices to close near the highs of the day.

The Sensex closed at 6540, up 40 points and the Nifty at 2014, up 21 points. Nifty May futures discount to the spot index narrowed to 4 points from Friday's 6 points. The gains on Nifty were much higher as stocks like TCS, which does not have representation on the Sensex, posted strong gains. ONGC, which has a higher weight on the Nifty, also added to the better performance of the Nifty.

Among Nifty stocks, BPCL, TCS and Satyam Computers were the major percentage gainers while SAIL, Hindustan Lever and Tata Steel were the major losers.

Reliance group stocks had a good day as all of them bounced back strongly. The finance minister had indicated over the weekend that the Ambani brothers were talking to each other and that a settlement could be expected shortly.

Reliance Industries, Reliance Energy, Reliance Capital and IPCL all gained over a per cent each in early trades. Reliance Industries closed with gains of over 2 per cent.

Oil marketing companies continued to gain on expectations of a hike in fuel prices shortly. BPCL was the significant gainer with gains of over 4 per cent. HPCL and Indian Oil also gained over 2 per cent each.

ONGC was another significant gainer. Many analysts believe that the stock is ripe for a re-rating as its crude oil assets should be re-valued at closer to $50 per barrel which is the average estimated market price in the years to come. A significant portion of the company's output is light crude and its overseas investments would start yielding returns shortly. The stock closed with gains of over 2 per cent.

Maruti gained ahead of the launch of its latest 'B' segment model Swift. The new car has received a good response from the market and is widely expected to redefine the premium hatchback segment. The stock gained as much as 3 per cent in early trades before closing with gains of under 2 per cent.

National carrier Air India has invited bids from merchant bankers for its proposed IPO. Ministry of civil aviation has proposed a 15 per cent equity dilution to part finance Air India's fleet acquisition plans. The airline had awarded the contract to purchase up to 55 aircraft to Boeing which needs to be approved by the union cabinet.

GE Money, the financing arm of General Electric, announced aggressive expansion plans in the country. In what could really threaten the established commercial banks operating in the retail space, GE Money is planning to set up a bank or acquire an existing bank.

TCS staged a smart come back with gains of over 4 per cent during the day. Satyam also gained close to 4 per cent. Infosys however, closed with loses. There are reports that TCS is on of the front runners to pick up a significant contract from ABN AMRO. The company is also reported to be in the running to acquire Mphasis BFL.

Mid-Cap Action

Shopper's Stop, one of the largest organised retail companies in the country, made its debut on the stock exchanges today. Issued at a price of Rs238, the stock opened at Rs336 on the BSE.

The stock attracted strong buying interest from traders and went as high as Rs420. However, some amount of profit booking pulled down the stock and it closed at Rs372 with gains of over 56 per cent over the issue price.

Mangalam drugs, which completed its IPO recently, was the other debutant on the bourses and did not disappoint either. Issued at Rs22 per share, the stock listed at Rs32 on the BSE. The stock closed at close to Rs36 or a gain of over 60 per cent over the issue price.

A Hong Kong-based hedge fund is picking up a 19 per cent stake in India Cements for over Rs600 crore. The company proposes to issue convertible warrants to the overseas investor.

Deccan Chronicle will acquire up to 90 per cent stake in Asian Age. Deccan Chronicle, which is the dominant English daily in Hyderabad and has recently launched a Chennai edition, already holds 23 per cent of Asian Age, which is published from Delhi, Kolkata and Mumbai.

Deccan Chronicle also announced its results for the quarter and year ended March 2005. For the fourth quarter both revenues and profits have grown by over 40 per cent. For the full year, profits have grown over 80 per cent.

Media company Balaji Telefilms was one of the significant losers after the company announced a drop in profits for the last quarter ended Match 2005. The stock declined over 9 per cent in early trades as profits dropped by over 20 per cent even as revenues rose more than 15 per cent.

Auto ancillary company El Forge gained over 4 per cent in early trades after the company announced plans to acquire a UK-based company. The company had declared excellent results for the quarter ended December 2004. El Forge is yet to announce the results for March 2005 quarter.

Another auto ancillary company to attract significant attention was Pricol, which manufactures instrument panels. For the quarter ended March 2005, the company announced a profit growth of more than 40 per cent as revenues increased by over 15 per cent. The stock gained over 4 per cent in early trades.

The third auto ancillary company to attract buying attention was Auto Corporation of Goa. The company is into bus body building and many analysts see significant opportunities as it is the only listed company in this line of business. Tata Motors owns a significant stake in the company. The stock was locked in the 20 per cent upper circuit in early trades.

Suraj Diamonds, Nova Petrochemicals and VIP Industries were among the best performing stocks among mid-caps.

DCM Limited, Premier Auto and United Western Bank were among the significant mid-cap losers.

*Disclaimer: The author does not 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

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List of general reports on finance