|
Markets were disheartened today by more dilly dallying on the part of the
government and political manoeuvring by the Left parties on the fuel price
hike and disinvestment. After opening marginally firm, front line stocks set
on a path of steady decline for the rest of the day.
A sharp increase in crude prices yesterday weighed in on most oil stocks as
they continue to lose more money in the absence of a price revision. Metal
stocks continued to remain weak today as well.
Some of the FMCG stocks like HLL and ITC and auto stocks which had posted
excellent gains in the past few days lost ground on profit booking, adding
to the overall weakness. To make matters worse, IT stocks also were subdued.
Sensex closed at 6656, down 74 points and the Nifty at 2065, down 23 points.
Nifty June futures discount to the spot widened to 28 points from yesterday's
24 points.
Among Nifty stocks, L&T, Colgate and Tata Tea were the major percentage
gainers while Hindalco, Ranbaxy and TCS were the major losers.
Yesterday, US markets brushed aside soaring crude prices and managed to close
with good gains. Though the manufacturing output data was weaker than expected,
traders were encouraged by lower inflation outlook. Lower inflation would
mean return of the ever persistent hope for lower interest rate hikes by the
US Fed. NASDAQ gained close to a per cent. The gains on the Dow were marginally
lower.
Crude futures for July delivery shot up over 4 per cent yesterday and closed
in on the $55-mark. The surge was caused by relatively insignificant news
of a rupture in a Texas refinery pipeline. Traders are awaiting weekly US
inventory figures today. Oil stocks made smart gains on the surge in crude
prices.
Indian ADR's generally had a good day yesterday. IT stocks witnessed a mixed
trend with Satyam and Wipro closing with gains while Infosys lost ground.
Tata Motors were the star performer with gains of over 5 per cent followed
by ICICI Bank at close to 2 per cent. MTNL, VSNL, HDFC Bank and Dr. Reddy's
all closed with gains.
The oil price hike was once again postponed as intense political lobbying
continues. It was widely reported that a price hike will be announced today
following the meeting of Left parties with the prime minister. Today, yet
another series of meetings were announced as the government tries to lower
the political costs of the fuel price hike.
After
giving some indication that they may allow the government to go ahead with
the BHEL disinvestment plan, the left parties turned around again today and
asked the government to reconsider the decision. Ranbaxy
denied reports that the company has reached a settlement with multinational
pharma company Pfizer on a patent dispute. There were market rumours about
a settlement under which Ranbaxy would withdraw its patent challenge in return
for a payment of $90 million. The stock closed nearly 3 per cent lower. Cement
companies continue to report excellent shipment volumes month after month.
Ultratech, formerly L&T cement, reported a 15 per cent jump in May shipments
to over 1.25 million tonnes. Grasim and ACC also reported around 10 per cent
growth in May shipments. Gujarat Ambuja reported a growth of close to 5 per
cent. However, most cement stocks closed in the negative. Metal
stocks continued their decline after yesterday's price cuts in steel and aluminium
prices. Analysts expect prices to come down further in the short term as global
inventories have risen. Tata Steel and SAIL both lost over 2 per cent each.
Hindalco lost over 3 per cent. The BSE metal index lost over 2 per cent. Maruti
continued to decline after reporting disappointing sales volumes for the month
of May. Yesterday, the company had reported a 4 per cent decline in May sales
volumes. Its main competitor Hyundai India announced today that it will launch
a new version of its premium hatchback model Getz to take on Maruti's new
model Swift. The stock closed 2 per cent lower. Jet
Airways received permission to launch 4 additional flights per week to US
via Belgium. This will help the airline to offer daily services to Newark
in the US via Brussels. There are reports that the airline is discontinuing
its services to Kathmandu. The stock closed over a per cent lower. Sterlite
Industries, the copper manufacturer controlled by Vedanta group, reported
a loss for the fourth quarter ended March 2005 even as revenues increased
by over 30 per cent. Full year profits almost halved even as total income
increased by over 30 per cent. The stock lost over 5 per cent after the results
were announced. Hindustan
Zinc, another Vedanta group company, reported a 60 per cent growth in full
year profits on a revenue growth of 20 per cent. Fourth quarter profits more
than doubled on a revenue growth of over 35 per cent. The stock gained over
3 per cent after the announcement. The company has recently completed an expansion
programme which has increased its zinc capacity to 400,000 tonnes per annum.
Mid-Cap Action Mid-cap
stocks also declined, though the correction was lower than that for frontline
stocks. CNX Mid-Cap 200 index closed at 2990, down 20 points. IDBI
continued its northward journey on expectations of a settlement to the Dabhol
power project. IDBI has a large exposure to the project which has been classified
as NPA in its books. The stock has gained over 20 per cent in the last few
sessions. Panacea
Biotech, manufacturers of vaccines and drug formulations, announced excellent
results for the quarter and year ended March 2005. Full year profits jumped
over 80 per cent on a revenue growth of close to 25 per cent. Profits for
the fourth quarter increased more than 7 fold even though revenues declined
by over 10 per cent. The stock gained over 2 per cent in early trades. There
are reports that Sesa Goa has won an exploration contract for iron ore in
the state of Jharkhand. Under the contract, the company would prospect for
iron ore deposits. It is not yet clear if the company can export any ore it
may find, as no mining lease has been signed. The company has benefited from
its ore exports to China from its mines on the western coastline. The stock
closed with losses.  Birla
Ericsson, Godavari Fertilisers and Gujarat Ambuja Exports were among the best
performing stocks among mid-caps.
Mukand,
Hi-Tech Gear and Bhushan Steel 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 List
of general reports on markets List
of general reports on finance Market:
Indices
National
Markets
Gain (+) / Loss (-)
|
SENSEX
|
6,655.56
|
-74.34
|
| NIFTY
|
2,064.65
|
-22.90
|
Last
Update : 2 June, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| LARSEN
& TOUBRO LTD. |
1,059.90
|
1,094.00
|
1,055.00
|
1,084.50 |
| ZEE
TELEF LT |
139.55
|
142.25
|
139.00
|
140.95
|
| HDFC
BANK LT |
537.10
|
544.95
|
535.30
|
539.20
|
| DR.REDDY'S
LABORATORIES LTD. |
731.45
|
743.80
|
728.60
|
735.85 |
| HINDALCO
IN |
1,114.90
|
1,120.45
|
1,066.00
|
1,079.05
|
| RANBAXY
LABORATORIES LTD. |
1,128.00
|
1,133.00
|
1,075.05
|
1,084.20
|
| RELIANCE
ENR* |
527.00
|
533.00
|
512.10
|
513.30
|
| TATA
IRON AND STEEL CO. LTD. |
355.00
|
357.30
|
347.00
|
348.60
|
| MARUTI
UDYOG |
460.00
|
462.50
|
449.50
|
450.85 |
| RELIANCE*
|
541.05
|
543.00
|
528.65
|
529.70 |
| I
T C LTD |
1,592.05
|
1,607.00
|
1,555.85
|
1,560.25 |
| ASSOCIATED
CEMENT COMPANIES LT |
380.00
|
380.80
|
371.00
|
371.80
|
| BHEL
|
887.80
|
887.80
|
855.00
|
866.60
|
| ICICI
BANK L |
400.00
|
404.00
|
391.00
|
392.25
|
| HINDUSTAN
LEVER LTD. |
150.00
|
150.00
|
146.10
|
147.15
|
| WIPRO
LTD. |
715.00
|
718.00
|
700.00
|
700.75 |
| BHARTI
TELE |
224.50
|
224.50
|
218.00
|
219.85 |
| TATA
POWER |
381.50
|
381.50
|
371.05
|
372.50
|
| GRASIM
INDUSTRIES LTD. |
1,100.00
|
1,126.00
|
1,100.00
|
1,111.50 |
| CIPLA
LTD. |
293.95
|
294.50
|
288.00
|
289.55 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,217.50
|
2,230.00
|
2,195.00
|
2,201.25 |
| HINDUSTAN
PETROLEUM CORP. LTD. |
341.00
|
344.00
|
332.15
|
333.30
|
| SATYAM
COMP |
457.00
|
459.00
|
440.05
|
451.40 |
| GUJARAT
AMBUJA CEMENTS LTD. |
454.00
|
454.00
|
446.60
|
448.00 |
| BAJAJ
AUTO |
1,256.05
|
1,274.90
|
1,256.05
|
1,263.80 |
Last
Update : 2 June, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
544.00
|
545.30
|
528.55
|
529.50 |
| TCS
|
1308.00
|
1309.00
|
1265.10
|
1266.30 |
| ONGC |
927.00 |
929.70
|
918.15
|
925.00 |
| SBIN
|
664.90
|
670.00
|
654.50
|
655.25 |
| TISCO
|
356.05
|
356.05
|
348.00
|
349.10 |
| INFOSYSTCH
|
2225.00
|
2232.00
|
2195.80
|
2201.95 |
| SATYAMCOMP
|
456.25
|
458.00
|
450.30
|
452.80 |
| SAIL
|
52.30
|
52.30
|
50.80
|
51.25 |
| GLAXO |
770.00 |
801.00
|
770.00
|
781.50 |
| ITC
|
1591.55
|
1606.90
|
1558.20
|
1559.10 |
| MARUTI
|
459.00
|
462.00
|
450.00
|
451.50 |
| TATAMOTORS
|
443.70
|
443.70
|
434.50
|
436.50 |
| HINDLEVER
|
149.45
|
149.90
|
146.15
|
147.40 |
| TATACHEM
|
182.50
|
184.90
|
178.45
|
181.75 |
| RANBAXY
|
1123.00
|
1135.00
|
1082.05
|
1083.30 |
| LT
|
1059.40
|
1094.50
|
1055.00
|
1084.90 |
| HINDPETRO
|
340.00
|
344.00
|
332.50
|
333.25 |
| M&M
|
518.00
|
521.25
|
503.80
|
509.10 |
| BAJAJAUTO
|
1260.00
|
1268.00
|
1256.00
|
1261.00 |
| WIPRO |
715.00 |
718.80
|
700.00
|
701.50 |
| DRREDDY
|
729.90
|
743.00
|
727.60
|
733.25 |
| TATATEA
|
571.25
|
595.00
|
571.25
|
592.00 |
| COLGATE
0 |
228.00
|
233.40
|
227.50
|
231.4 |
| HDFC
|
769.90
|
775.00
|
755.00
|
763.05 |
| ACC
|
380.00
|
380.90
|
371.25
|
371.65 |
| GRASIM
|
1124.80
|
1125.00
|
1107.55
|
1115.50 |
| TATAPOWER
|
379.00
|
381.35
|
370.60
|
373.15 |
| ORIENTBANK
|
260.20
|
263.50
|
260.00
|
261.40 |
| IPCL
|
165.50
|
167.95
|
164.10
|
164.75 |
| REL
|
527.50
|
531.45
|
512.00
|
513.50 |
| HINDALC0
|
1119.00
|
1144.00
|
1073.10
|
1073.10 |
| HEROHONDA
|
563.00
|
563.00
|
553.25
|
557.05 |
| BPCL
|
394.90
|
400.00
|
391.45
|
392.05 |
| BHEL
|
885.00
|
889.00
|
863.00
|
870.50 |
| GAIL
|
216.00
|
218.00
|
213.25
|
213.25 |
| ZEETELE
|
140.55
|
141.90
|
138.80
|
140.80 |
| BHARTI
|
223.00
|
224.70
|
219.35
|
219.40 |
| PNB
|
380.20
|
382.90
|
374.00
|
374.65 |
| GUJAMBCEM
|
453.40
|
453.40
|
446.60
|
448.20 |
| HCLTECH
|
365.00
|
368.75
|
360.05
|
363.55 |
| HDFCBANK
|
542.00
|
543.15
|
536.25
|
539.25 |
| ICICIBANK
|
402.00
|
403.00
|
392.00
|
392.00 |
| SUNPHARMA
|
532.00
|
539.95
|
530.10
|
537.55 |
| MTNL
|
122.80
|
122.80
|
119.85
|
121.15 |
| CIPLA
|
292.20
|
294.20
|
288.30
|
289.15 |
| NATIONALUM
|
144.00
|
144.00
|
140.75
|
141.00 |
| VSNL
|
207.50
|
213.00
|
207.50
|
207.65 |
| SCI
|
151.50
|
151.50
|
147.85
|
148.45 |
| ABB
|
1303.00
|
1309.25
|
1281.25
|
1286.00 |
| DABUR
|
129.10
|
133.00
|
128.50
|
129.75 |
Last
Update : 2 June, 2005, 16:04PM
|
