|
After the Sensex hving touched the 7000-mark for the first
time ever yesterday, not many traders were expecting a
runaway rally in the markets today. Most expected the
indices to trade flat at best as some profit booking was
expected to emerge.
The
indices opened marginally lower and dipped to the day's
low soon after on selling pressure.
Some
good news on the monsoon front and the continued surge
in super heavyweights Reliance Industries and ONGC helped
the indices to recover and maintain an upward trend for
the rest of the day.
Both
Reliance and ONGC closed with gains of over 2 per cent
each. Other heavyweights which saw good gains were ICICI
Bank, HLL and Tata Steel.
Both
the major indices closed with gains of well over a per
cent each and the Sensex managed to close well above 7000
for the first time. Combined NSE and BSE volumes of over
Rs20,000 crore in the cash and derivatives segments were
also substantially higher than the average volumes in
the recent past.
Sensex
closed at 7076, up 92 points and the Nifty at 2170, up
26 points from yeserday's close. Nifty June futures discount
to the spot narrowed to 22 points from yesterday's 26
points.
Among
Nifty stocks, Cipla, Gujarat Ambuja and ICICI Bank were
the major percentage gainers while BPCL, Oriental Bank
and Sun Pharma were the major losers.
After
opening weak and trading lower for most of the day, US
markets recovered towards close to end on a flat note
yesterday. All major indices Dow, S&P 500 and NASDAQ
closed with marginal losses.
Crude
oil futures for July delivery recorded yet another all
time high of over $59 to a barrel. The commodity closed
on the NYMEX at $59.37, close to 2 per cent higher than
yesterday's close. Crude has declined in today's early
trades as many funds booked profits.
Most
Indian ADR's, except some of the technology stocks, yesterday.
Satyam was the major gainer with gains of close to 3 per
cent. Infosys gained half a per cent. VSNL closed with
gains of over a per cent. While HDFC Bank and Tata Motors
lost over a per cent each, MTNL lost over 2 per cent.
ONGC
gained over 2 per cent and was one of the prime movers in the surge today.
The stock gained on the back of rising crude prices which crossed $59 to a
barrel yesterday on the NYMEX. The
average realisation per barrel of crude for ONGC during the current year is
expected to be substantially higher than the $39 it received during the previous
year. The company had reported record profits yesterday for the year ended
March 2005. Anil
Ambani will make an open offer for 20 per cent of Reliance Capital. The offer
will be made at Rs231 per share and will open by early August. The stock was
very volatile during the day and closed with losses of over 4 per cent. The
open offer will be worth over Rs1,000 crore and is from a company named AAA
Enterprises Pvt Ltd, which is 98 per cent- owned by Anil Ambani. The offer
will be part-financed by pledging shares of Reliance Industries personally
held by Anil Ambani. There
are also reports that the Anil Ambani-controlled Reliance Infocomm will come
out with its IPO this year itself. The issue is expected to raise over Rs15,000
crore and will be the largest ever public issue in the country. Bharti
will handle 30 per cent of the international voice traffic of BSNL to Europe.
While 50 per cent will be handles by BSNL itself, the balance 20 per cent
will be handled by Reliance Infocomm. VSNL
will be the major loser after the new contracts come into force. VSNL has
been steadily losing the international long distance business from BSNL. Cipla
was one of the major gainers in index stocks, closing with gains of over 7
per cent. Foreign brokerage has come out with a buy call on the stock and
has given a target price substantially higher than the current market price.
Mid-Cap
Action After
opening with decent gains, Mid-cap stocks declined rapidly. Though they recovered
later in the day, gains on the mid-cap index were much lower than the frontline
indices. CNX Mid-Cap 200 index closed at 2992, a gain of 9 points. The
boards of Centurion Bank and Bank of Punjab have approved the proposal for
merger. Bank of Punjab will be merged into Centurion. The boards will meet
again later to decide on the merger ratio. Bank
of Punjab will cancel the preferential allotment of shares made earlier to
some international banks including Bank of Nova Scotia. The board had earlier
proposed to issue over 18 per cent stake on a preferential basis. Federal
Bank announced that it is planning a merger with a south based-bank. Speculation
in the markets point to Karnataka Bank or South Indian Bank as the possible
candidates for merger. ICICI
Bank holds a 20 per cent stake in Federal Bank and is the single largest shareholder
in the Kerala-based Bank. ICICI also holds a sizeable stake in South Indian
Bank as well. Federal
Bank gained close to 2 per cent in early trades. Karnataka Bank closed a per
cent higher while South Indian Bank gained over 4 per cent. Kopran
announced an agreement with Merck Specialities to license three of its products
and the design of an inhaler to Merck and its associate companies. The company
would receive Rs20 crore from the deal. The stock gained over 6 per cent in
early trades. Mid-cap
software products company I-Flex gained over 2 per cent after it announced
the acquisition of a risk management software package from an overseas company.
I-Flex is planning to integrate the product into its own risk management products
to offer a complete Enterprise Risk Management package. I-Flex
is one of the leading providers of core banking software solutions globally.
The company is targeting new opportunities emerging from the implementation
of Basel II norms for its risk management software. I-Flex
expects to corner a large share of the risk management software market in
Asia. The company has put the total market size for such products at $2.5
billion. JSW
Holdings, the de-merged investment arm of the earlier JISCO and Jindal Vijayanagar
Steel, listed on the bourses today. After opening at Rs126 and surging to
an intra-day high of Rs399, the stock settled at Rs274. The
steel operations of JISCO and Jindal Vijayanagar were merged to form JSW Steel.
The investments held by the original companies were hived-off into a separate
company, JSW Holdings. The company holds over 12 per cent of JSW Steel. Simplex
Concrete Piles gained 10 per cent in early trades after reports that the company
has won  GTC
Industries, Indian Card Clothing and Suryalakshmi Cotton were among the best
performing stocks among mid-caps.
Pearl
Global, Hindustan Organic Chemicals and Times Guaranty 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
|
7,076.52
|
+
91.97 |
| NIFTY
|
2,170.00
|
+
25.65 |
Last
Update : 21 June, 2005, 16:13 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| CIPLA
LTD. |
286.00
|
309.30
|
285.30
|
304.75 |
| GUJARAT
AMBUJA CEMENTS LTD. |
59.90
|
63.10
|
58.35
|
62.85 |
| ICICI
BANK L |
409.80
|
420.00
|
405.00
|
418.45 |
| HINDUSTAN
LEVER LTD. |
149.00
|
153.80
|
148.00
|
152.60 |
| MARUTI
UDYOG |
441.00
|
454.80
|
437.10
|
453.75 |
| TATA
IRON AND STEEL CO. LTD. |
347.55
|
358.10
|
347.55
|
357.25 |
| ONG
CORP LTD |
930.05
|
949.80
|
928.30
|
944.95 |
| RELIANCE*
|
630.40
|
648.90
|
615.20
|
645.90 |
| TATA
POWER |
370.50
|
377.00
|
364.30
|
374.85 |
| STATE
BANK OF INDIA |
658.00
|
670.45
|
658.00
|
665.50 |
| GRASIM
INDUSTRIES LTD. |
1,098.00
|
1,104.90
|
1,086.05
|
1,100.00 |
| RANBAXY
LABORATORIES LTD. |
1,074.00
|
1,086.00
|
1,069.00
|
1,081.90 |
| TATA
MOTORS |
414.65
|
421.00
|
413.00
|
418.45 |
| SATYAM
COMP |
503.70
|
510.80
|
496.00
|
507.15 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,369.00
|
2,401.00
|
2,342.05
|
2,391.90 |
| BHARTI
TELE |
235.00
|
238.00
|
231.75
|
237.00 |
| HDFC
BANK LT |
597.00
|
605.00
|
591.30
|
601.00 |
| TCS
LTD |
1,289.90
|
1,311.95
|
1,282.10
|
1,303.85 |
| HINDALCO
IN |
1,186.00
|
1,203.00
|
1,178.05
|
1,192.20 |
| I
T C LTD |
1,538.00
|
1,553.50
|
1,536.00
|
1,546.10 |
| HOUSING
DEVELOPMENT FINANCE CO |
850.00
|
856.90
|
839.05
|
843.35 |
| BHEL
|
870.10
|
873.50
|
861.25
|
863.35 |
| ASSOCIATED
CEMENT COMPANIES LT |
378.50
|
382.00
|
377.15
|
378.15 |
| RELIANCE
ENR |
658.00
|
677.00
|
650.00
|
655.30 |
| BAJAJ
AUTO |
1,256.00
|
1,256.00
|
1,235.20
|
1,253.00 |
| LARSEN
& TOUBRO LTD. |
1,109.00
|
1,120.00
|
1,100.00
|
1,100.65 |
| DR.
REDDYS LABORATORIES |
|
|
|
721.75 |
| HERO
HONDA MOTORS LIMITED |
|
|
|
550.15 |
| NTPC |
|
|
|
82.85 |
| WIPRO
LTD |
|
|
|
756.85 |
Last
Update : 21 June, 2005, 16:02PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
632.00
|
648.00
|
621.00
|
646.15 |
| INFOSYSTCH
|
2350.00
|
2400.00
|
2331.35
|
2393.50 |
| SATYAMCOMP
|
500.90
|
510.50
|
496.05
|
507.20 |
| REL
|
605.00
|
679.00
|
567.00
|
655.70 |
| TISCO
|
351.00
|
358.00
|
350.10
|
357.15 |
| TCS
|
1300.00
|
1312.40
|
1283.30
|
1305.10 |
| ONGC |
935.00 |
950.00
|
929.00
|
945.65 |
| IPCL
|
170.00
|
173.40
|
167.25
|
169.05 |
| SBIN
|
655.25
|
670.70
|
655.25
|
665.85 |
| CIPLA
|
284.50
|
309.45
|
272.65
|
304.85 |
| MARUTI
|
438.00
|
455.95
|
438.00
|
453.90 |
| WIPRO
|
757.00
|
769.90
|
751.00
|
756.25 |
| RANBAXY
|
1080.00
|
1085.85
|
1065.10
|
1082.25 |
| TATAMOTORS
|
415.00
|
420.95
|
414.10
|
417.55 |
| HINDLEVER
|
148.40
|
154.00
|
148.00
|
152.65 |
| SAIL
|
53.20
|
53.90
|
53.10
|
53.70 |
| ITC
|
1538.00
|
1554.00
|
1536.05
|
1540.75 |
| HCLTECH
|
393.00
|
401.10
|
390.00
|
398.05 |
| HDFCBANK
|
595.50
|
605.00
|
592.15
|
602.60 |
| ICICIBANK
|
408.00
|
419.90
|
405.50
|
418.20 |
| HINDALC0
|
1186.00
|
1204.90
|
1175.55
|
1191.55 |
| LT
|
1101.90
|
1121.00
|
1100.60
|
1103.90 |
| HEROHONDA
|
557.00
|
557.00
|
544.00
|
550.15 |
| GUJAMBCEM
|
59.00
|
63.00
|
58.25
|
62.70 |
| BPCL
|
373.00
|
375.80
|
364.10
|
364.90 |
| PNB
|
381.00
|
388.90
|
380.50
|
383.65 |
| BHARTI
|
235.90
|
237.75
|
231.20
|
236.70 |
| M&M
|
566.40
|
569.40
|
557.65
|
563.35 |
| HINDPETRO
|
322.00
|
322.05
|
315.45
|
317.20 |
| TATAPOWER
|
366.20
|
377.00
|
365.00
|
375.10 |
| ORIENTBANK
|
260.00
|
265.00
|
259.10
|
259.80 |
| GRASIM
|
1088.00
|
1104.00
|
1080.00
|
1097.95 |
| SCI
|
139.00
|
142.80
|
136.10
|
139.10 |
| GAIL
|
220.00
|
221.90
|
218.00
|
218.75 |
| HDFC |
850.00 |
857.80
|
840.10
|
845.60 |
| ACC
|
380.10
|
383.00
|
376.20
|
378.25 |
| BAJAJAUTO
|
1252.25
|
1253.90
|
1238.00
|
1248.10 |
| ZEETELE
|
142.50
|
145.00
|
141.80
|
144.00 |
| BHEL |
870.10 |
873.80
|
861.45
|
866.75 |
| VSNL
|
232.90
|
235.40
|
229.40
|
230.80 |
| TATACHEM
|
170.00
|
174.50
|
168.15
|
172.15 |
| NATIONALUM
|
145.00
|
146.25
|
144.00
|
145.55 |
| TATATEA
|
572.00
|
586.00
|
570.25
|
581.00 |
| MTNL
|
120.60
|
121.50
|
119.60
|
119.85 |
| DRREDDY
|
721.00
|
726.85
|
714.30
|
722.10 |
| COLGATE
|
228.40
|
232.00
|
226.50
|
230.40 |
| DABUR
|
127.55
|
129.00
|
125.00
|
128.60 |
| SUNPHARMA
|
560.00
|
563.30
|
550.50
|
559.90 |
| GLAXO
|
781.00
|
790.00
|
780.00
|
780.80 |
| ABB
|
1276.00
|
1309.00
|
1275.00
|
1300.00 |
Last
Update : 21 June, 2005, 16:00PM
| 
