|
After the sustained rally over the last few days, some correction was due
in the markets anytime. The decline was not very damaging as traders remain
positive about the outlook. The decline in oil prices also prevented the sentiment
from turning overly bearish.
Markets
declined immediately after opening and the indices were stuck in a range for
most of the day. Some of the frontline stocks which had appreciated significantly
over the last couple of days like Infosys and ICICI Bank lost ground on profit
booking.
However,
gains in FMCG stocks like HLL and steel stocks like SAIL and Tata Steel prevented
the indices from a major drop. Reliance Energy continued its good run. The
last half hour saw a sharp fall of over 10 points on the Nifty as some of
the intra-day positions were settled.
Sensex
closed at 6832, down 26 points and the Nifty at 2103, down 9 points from yesterday's
close. Nifty June futures discount to the spot widened to 21 points from yesterday's
18 points.
Among
Nifty stocks, HLL, Larsen & Toubro and M&M were the major percentage
gainers while Infosys, Satyam and ABB were the major losers.
US
markets could not hold on to early gains for the second day yesterday. Falling
crude prices and better earnings outlook from technology major Texas Instruments
helped the markets to open firm. However, weak economic outlook released by
the US government, cutting growth expectations and hiking inflation targets,
pulled down the indices. Broader indices like Dow and S&P 500 closed with
marginal losses. NASDAQ was weaker and lost over a third of a per cent.
Crude
futures for July delivery declined over 2 per cent yesterday to close near
the $52 to a barrel mark.
ADR's
of Indian banks on the US exchanges maintained their up trend from the previous
day though the gains were not very significant. Both HDFC Bank and ICICI Bank
closed with gains. Among other stocks, MTNL closed with gains of over a per
cent. Tech stocks Wipro, Satyam and Infosys all closed with losses as did
Dr. Reddy's. Tata Motors and VSNL closed unchanged.
The
steel ministry is looking at a proposal to merge the mining PSU companies
like NMDC into SAIL. This is to help SAIL emerge as a fully integrated steel
producer. The ministry has cleared the proposal to merge IISCO into SAIL.
The ministry
also asked the PSU steel companies to hike capacity by 10 per cent every year.
Under this policy, SAIL will invest Rs25,000 crore over the next few years
to increase capacity and fund overseas acquisitions. Meanwhile,
there are reports that NMDC will ask for a hike in the price of iron ore supplied
to domestic steel producers. This could have serious cost implications for
some steel producers as the current prices charged by NMDC is almost half
of international prices. Integrated producers like Tata Steel will not be
affected by this development. There
are reports that Indian Oil has submitted a bid to acquire 51 per cent stake
in a refinery company based in Turkey. According to reports, the Turkish company
has a total refining capacity of over 27 million tonnes per annum, same size
as the Jamnagar refinery of Reliance. Neyveli
Lignite will set up the Jayamkondam power plant and lignite mining project
in Tamil Nadu on its own. The total project cost is estimated at Rs11,000
crore and will have a capacity of 2,000 MW. The company is the majority partner
in a 1,000 MW power project being set up near Tuticorin in Tamil Nadu. Essar
Steel has bought out its JV partner Stemcor in two companies, Steel Corporation
of Gujarat and Hy-grade Pellets, for a total consideration of $450 million.
The two companies operate in different segments of the steel value chain and
would help Essar to achieve better integration in its operations. The stock
closed with gains. Infosys
is increasing the employee strength at its consultancy division almost 5 fold.
The consultancy arm is based in Texas, US. After posting strong gains over
the last few days, the stock closed over 2 per cent lower. Utility
vehicles and tractors major Mahindra & Mahindra gained after the company
said its board will discuss the issue of bonus shares in its next meeting.
The stocks closed with gains of over 2 per cent. Mahindra
is trying to strengthen its tractor business globally. The company is aiming
to emerge as one of the top global manufacturers in future. Ranbaxy
has acquired a portfolio of 18 generic drugs from a Spanish company. The acquisition
will enable the company to enhance its presence in the Spanish market which
is one of the largest in Europe. Tata
Motors has reported a 15 per cent increase in commercial vehicle sales for
the month of May as compared to the previous year. Passenger vehicles also
saw robust demand while total exports for the month almost doubled. The company
has given a very cautious outlook and said commercial vehicle sales would
start weakening after a year. Jindal
Stainless will set up a new stainless steel plant in the state of Orissa.
The plant will have a capacity of 1.6 million tonnes per annum and will be
one of the largest stainless steel plants in Asia. The plant will have a captive
power unit with a capacity of 500 MW. The total project cost is estimated
at around Rs7,000 crore. The stock closed over 8 per cent higher. Mid-Cap
Action Mid-caps
clearly outperformed the frontline stocks as many of them continued to seek
new all time highs today. CNX Mid-Cap 200 index closed at 3077, up 18 points.
This is the fourth straight day the index is closing at a new all time high.
Raymond
will set up a joint venture manufacturing unit with an Italian company for
garments. The JV partners will hold equal stake in the venture and total investment
will be around Rs50 crore. The stock gained 3 per cent on the announcement.
Exploration
services company Aban Loyd gained over 3 per cent after the company announced
that it is planning to acquire an offshore rig from a US company. Bombay
Dyeing reported a loss for the fourth quarter ended March 2005. Full year
profits almost halved even as revenues grew under 10 per cent. The stock continues
to buzz around on the company's real estate and airline plans. Automobile
lubricant major Castrol declined over 5 per cent in early trades after the
company clarified that it has no information about an open offer from British
Petroleum. The stock had gained yesterday on rumours that BP will hike its
stake in Castrol which will trigger an open offer. The
country's largest organised retailer, Pantaloon Retail, has reported that
sales for the month of May have more than doubled as compared to the same
month of previous year. The stock closed with gains of over 3 per cent.  Flex
Industries, Aftek Info and Zuari Agro were among the best performing stocks
among mid-caps.
KCP
Limited, Crest Animation and Saksoft 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
|
6,832.53
|
-25.71
|
| NIFTY
|
2,103.20
|
-9.20 |
Last
Update : 9 June, 2005, 16:47 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| HINDUSTAN
LEVER LTD. |
143.90
|
148.50
|
142.50
|
147.80 |
| LARSEN
& TOUBRO LTD. |
1,103.00
|
1,150.00
|
1,101.00
|
1,133.95 |
| HINDALCO
IN |
1,120.00
|
1,144.40
|
1,114.35
|
1,138.20 |
| RELIANCE
ENR |
572.00
|
578.80
|
570.00
|
574.20 |
| ASSOCIATED
CEMENT COMPANIES LT |
381.00
|
385.75
|
378.00
|
383.45 |
| HOUSING
DEVELOPMENT FINANCE CO |
826.10
|
844.90
|
808.00
|
836.30 |
| GRASIM
INDUSTRIES LTD. |
1,114.90
|
1,119.75
|
1,097.05
|
1,111.90 |
| BHEL
|
880.00
|
891.00
|
878.15
|
888.60 |
| TATA
POWER |
382.00
|
387.50
|
382.00
|
385.10 |
| BAJAJ
AUTO |
1,265.00
|
1,288.70
|
1,265.00
|
1,274.60 |
| RELIANCE*
|
559.10
|
564.50
|
557.50
|
559.00 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,272.25
|
2,291.90
|
2,226.35
|
2,236.50 |
| SATYAM
COMP |
465.00
|
472.00
|
379.70
|
463.00 |
| RANBAXY
LABORATORIES LTD. |
1,056.70
|
1,082.00
|
1,054.90
|
1,065.00 |
| HDFC
BANK LT |
588.60
|
589.00
|
575.80
|
576.15 |
| ICICI
BANK L |
419.95
|
419.95
|
407.05
|
413.80 |
| ONG
CORP LTD |
922.50
|
925.00
|
905.00
|
910.55 |
| TCS
LTD |
1,300.00
|
1,300.00
|
1,270.65
|
1,276.65 |
| MARUTI
UDYOG |
462.00
|
466.90
|
457.20
|
459.25 |
| NTPC
LTD |
87.10
|
87.10
|
85.60
|
85.80 |
| WIPRO
LTD. |
733.00
|
735.00
|
725.00
|
726.50 |
| DR.REDDY'S
LABORATORIES LTD. |
712.50 |
715.65
|
703.00
|
706.15 |
| TATA
MOTORS |
438.00
|
441.90
|
433.25
|
435.70 |
| CIPLA
LTD. |
296.50
|
299.00
|
292.15
|
293.65 |
| TATA
IRON AND STEEL CO. LTD. |
340.50
|
344.00
|
335.60
|
337.90 |
| I
T C LTD |
1,585.00
|
1,587.80
|
1,572.10
|
1,575.85 |
| GUJARAT
AMBUJA CEMENTS LTD. |
456.00
|
458.50
|
450.35
|
452.40 |
| HEROHONDA
M |
555.00
|
563.00
|
555.00
|
555.85 |
| BHARTI
TELE |
222.00
|
223.95
|
219.10
|
221.00 |
| STATE
BANK OF INDIA |
692.00
|
693.40
|
685.05
|
689.00 |
Last
Update : 9 June, 2005, 16:02PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
560.80
|
563.75
|
556.70
|
559.05 |
| INFOSYSTCH
|
2277.65
|
2290.00
|
2227.10
|
2236.75 |
| TISCO
|
338.20
|
342.80
|
336.00
|
337.85 |
| SAIL
|
51.10
|
53.35
|
50.80
|
51.55 |
| SBIN
|
693.00
|
695.00
|
685.65
|
689.40 |
| SATYAMCOMP
|
474.60
|
474.60
|
458.30
|
461.65 |
| M&M
|
516.10
|
548.80
|
516.10
|
532.95 |
| LT
|
1106.00
|
1150.00
|
1106.00
|
1134.00 |
| ONGC |
917.00 |
934.90
|
905.50
|
910.70 |
| REL
|
578.70
|
578.70
|
570.00
|
574.95 |
| TCS
|
1294.00
|
1299.00
|
1271.35
|
1277.30 |
| TATAMOTORS
|
439.00
|
441.90
|
433.20
|
435.30 |
| ITC |
1580.90 |
1590.00
|
1572.00
|
1575.75 |
| HINDLEVER
|
143.00
|
148.65
|
142.85
|
147.80 |
| RANBAXY
|
1068.10
|
1088.00
|
1054.10
|
1071.80 |
| MARUTI
|
465.00
|
467.00
|
457.15
|
459.30 |
| GUJAMBCEM
|
454.50
|
458.80
|
451.00
|
452.45 |
| SCI
|
162.45
|
164.40
|
159.00
|
160.20 |
| PNB
|
407.05
|
409.00
|
400.10
|
402.60 |
| IPCL
|
171.80
|
171.80
|
165.70
|
166.65 |
| WIPRO
|
726.20
|
735.00
|
725.00
|
725.90 |
| ACC |
379.00 |
385.70
|
377.75
|
383.30 |
| ORIENTBANK
|
276.35
|
279.00
|
270.00
|
271.30 |
| BHEL
|
882.00
|
890.00
|
878.20
|
888.20 |
| HDFC
|
828.00
|
845.90
|
809.00
|
838.90 |
| ICICIBANK
|
419.60
|
419.60
|
407.00
|
413.65 |
| BAJAJAUTO
|
1268.00
|
1286.00
|
1261.00
|
1270.20 |
| TATAPOWER
|
384.00
|
387.90
|
382.10
|
384.30 |
| HINDALC0
|
1120.00
|
1144.80
|
1116.00
|
1136.55 |
| HDFCBANK
|
588.00
|
588.50
|
575.00
|
579.10 |
| GRASIM
|
1105.00
|
1122.00
|
1096.70
|
1112.35 |
| CIPLA
|
297.00
|
299.00
|
292.55
|
293.60 |
| HINDPETRO
|
326.10
|
328.00
|
324.25
|
325.90 |
| BHARTI |
222.10 |
224.00
|
219.00
|
220.80 |
| TATACHEM
|
180.00
|
182.95
|
178.30
|
180.35 |
| TATATEA
|
602.00
|
603.50
|
586.20
|
589.15 |
| BPCL
|
380.00
|
380.00
|
368.00
|
373.80 |
| HCLTECH
|
374.00
|
378.40
|
369.00
|
370.15 |
| GAIL |
213.00 |
214.80
|
211.60
|
212.50 |
| VSNL
|
224.60
|
225.00
|
218.25
|
220.65 |
| COLGATE
|
237.50
|
239.40
|
233.00
|
234.10 |
| ZEETELE
|
149.75
|
150.00
|
148.20
|
149.50 |
| NATIONALUM
|
149.95
|
149.95
|
148.00
|
149.10 |
| HEROHONDA
|
555.00
|
562.45
|
555.00
|
555.60 |
| DRREDDY
|
720.00
|
729.90
|
702.00
|
706.70 |
| MTNL |
126.00 |
126.50
|
124.60
|
125.00 |
| SUNPHARMA
|
560.00
|
560.00
|
543.00
|
545.35 |
| ABB
|
1344.50
|
1349.00
|
1298.00
|
1306.15 |
| DABUR
|
132.45
|
132.50
|
130.05
|
130.40 |
| GLAXO
|
788.80
|
788.80
|
762.30
|
769.80 |
Last
Update : 9 June, 2005, 16:00PM
| 
