|
Markets opened the day on a weak note following the decline
in US markets yesterday. The indices declined in opening
trades as profit booking emerged after the strong rally
over the last two days which saw the indices scaling new
all time highs.
The
indices managed to recover soon enough as strong buying
in PSU bank stocks emerged. SBI was the best performer
in this space and was trading with gains of over 3 per
cent before noon.
Though
the Sensex bounced back into the green, the Nifty traded
with losses for most of the day. The steep fall in ONGC
was behind the significant divergence between the movement
of Sensex and Nifty. ONGC has a much higher weight on
the Nifty than the Sensex.
The
Sensex traded in a narrow range till late in the afternoon
moving around yesterday's closing levels. The last one
hour saw fresh buying which pushed the Sensex firmly above
the 7200-mark. The Nifty, however, could not recover from
the body blow dealt by ONGC.
The
Sensex managed to close above 7200 for the first time
at 7211, up 17 points and the Nifty at 2212, a loss of
9 points from yesterday's close. Nifty July futures discount
to the spot index narrowed to 6 points from yesterday's
29 points.
Among
Nifty stocks, Glaxo, Larsen & Toubro and SBI were
the major percentage gainers while ONGC, HDFC Bank and
Wipro were the major losers.
US
markets declined yesterday after the US Fed did not give
any indication of a change in its policy of measured hikes
in short term interest rates. As expected, the Fed increased
the short term rate by 25 basis points. However, most
market analysts expect the Fed to continue with its current
policy and take interest rates to 4 per cent by the end
of the year.
The
Dow lost close to a per cent and the NASDAQ lost just
over half a per cent. S&P 500 lost over two-thirds
of a per cent.
Crude
futures for August delivery declined for the third straight
day and closed with losses of well over a per cent. The
commodity closed at $56.50 to a barrel yesterday. Oil
has lost close to 7 per cent from the record high posted
on Monday.
Indian
ADR's had a mixed day yesterday after the previous day's
excellent showing. VSNL gained another 3 per cent after
the previous day's gains of close to 3 per cent. The other
telecom stock MTNL lost over a per cent. Among the tech
stocks, Wipro and Infosys closed with gains while Satyam
ended with marginal losses. Among the bank stocks, both
HDFC Bank and ICICI Bank closed with losses.
Inflation
for the week ended 18 June dropped to 4.1 per cent from
4.33 per cent reported for the previous week.
ONGC,
the most valuable company in India, saw considerable profit
booking after the steady decline in crude prices over
the last three days. The stock lost over 4 per cent in
today's trade. The stock had seen excellent gains over
the last couple of weeks and had touched a new high yesterday.
The
Anil Ambani group has made a grand entry into the entertainment
sector by acquiring 51 per cent stake in Mumbai-based
Adlabs. Companies controlled by Reliance Capital have
bought out one of the promoters in Adlabs and will hike
their stake through a preferential issue. An open offer
for an additional 20 per cent stake in Adlabs will be
made during August.
Adlabs
is into post-production processing of movies and distribution
in the digital format. It also runs a chain of multiplex
cinema halls and has recently started movie production
as well.
The
Anil Ambani group may possibly leverage this acquisition
to provide content when Reliance Infocomm rolls out broadband
services.
According
to reports, Mahindra & Mahindra would use Renault's
plant in Romania to assemble the SUV model Scorpio for
European and African markets. These vehicles will be sold
through Renault's network in the region.
Renault
does not have a SUV in its model line-up. The two companies
have formed a JV to assemble a mid-size passenger car
in India.
Mahindra
& Mahindra has also reported a growth of 16 per cent
in tractor sales for the month of June. The stock closed
the day with gains.
Reliance
Industries is believed to be in the process of validating
a natural gas find off the Orissa coast. Preliminary estimates
indicate a reserve of
2.5-trillion cubic feet of gas. Reliance has a 90-per
cent interest in the field. There are reports that the
government has recommended awarding six oil exploration
blocks to Reliance under NELP-V.
After
yesterday's negative developments which saw the exit of
its vice-chairman from the company, Wipro went into a
damage control exercise to assure investors about the
future. A senior official of the company was quoted in
newspapers giving details of the company's expansion plans.
Wipro
expects to be among the top 10 IT service companies in
the world within the next two to three years. Total revenues
are expected to be well above the $3-billion mark by then.
The company had crossed the $1-billion revenue mark during
the last financial year. The stock lost close to 3 per
cent.
The
floods in Gujarat have affected the operations of many
companies which have manufacturing facilities in the state.
Among those affected are Indian Oil and IPCL. Reliance
Industries has not yet made any announcement about the
impact on its operations.
Maruti's
June 05 sales volumes have shown an overall growth of
over 4 per cent compared to the same month of last year.
However, volumes have declined when compared to May 05
figures.
Volumes
of the entry level Maruti 800 model saw a huge 40 per
cent dip despite the 15 per cent price cut announced during
the month. The company was saved by the premium small
car segment where volumes increased by 33 per cent, including
the newly launched model Swift.
The
company's mid-size sedan segment saw a growth of over
70 per cent for the month of June on a low base. Exports
also saw a marginal growth. Aggregate volumes of Maruti
for the first three months of the financial year are marginally
lower as compared to the previous year.
Among
the two-wheeler companies which reported June sales volumes
today, Bajaj Auto stood out with a 25 per cent increase
in overall sales. Motorcycle sales for the company were
higher by 33 per cent as compared to the same period of
last year.
Three-wheeler
volumes of Bajaj declined 8 per cent for the month and
the aggregate volume growth for the company was 20 per
cent.
Hero
Honda's June volumes were higher by over 12 per cent year
on year. TVS Motors had a volume growth of over 17 per
cent.
Steel
companies saw some buying interest even as some of them
have announced price cuts over the last few days. After
SAIL announced a reduction of between Rs500 to Rs2,000
per tonne yesterday, Ispat Industries announced a 7 per
cent cut in prices.
Tata
Steel has cut the prices of branded products by Rs2,000-Rs3,000
per tonne while keeping the long term contract prices
steady. JSW Steel has also reduced prices by 7 to 8 per
cent.
Mid-Cap
Action
Mid-cap
stocks bounced back strongly after almost a week of lagging
behind the frontline stocks. CNX Mid-Cap 200 index closed
at 3035, a gain of 43 points.
Jubilant
Organosys has acquired a majority stake in a US based
company for over $12 million. Jubilant may invest up to
an additional $13 million and take its overall stake to
75 per cent over a period.
The
US company has a manufacturing facility in Maryland to
produce tablets and capsules. It also has a few ANDA's
approved by the US FDA.
Kale
Consultants, which offers software and BPO solutions to
airlines, has signed a 5-year agreement with Indian Airlines
for cargo management solutions. The stock gained over
10 per cent after the announcement.
Adlabs
had yet another strong opening which saw the stock surge
another 15 per cent in morning trades. The stock was trading
above Rs280 even though the open offer price indicated
by Reliance Capital is far lower at Rs175-Rs185 per share.
The stock closed with gains of over 16 per cent.
Hindustan
Motors surged over 8 per cent on renewed buying interest.
The company had hived off its auto component division
to a separate company in which the promoters and private
equity firm Actis have taken a combined stake of 51 per
cent. The balance 49 per cent will be held by Hindustan
Motors.
The
company is planning to launch a new premium sedan named
Cedia under license from Mitsubishi Motors of Japan. It
may also launch more vehicles sourced from Mitsubishi
in the premium segment.
Tata
Teleservices (Maharashtra) gained over 3 per cent in early
trades after reports of a possible stake sale to South
Korea Telecom. According to reports, the Tata group is
in negotiations to sell 33 per cent stake in Tata Teleservices
for Rs2,500 crore.
Tata
Teleservices, which operates in more than 20 telecom circles,
is not a listed company and Tata Teleservices (Maharashtra)
operates only in the Maharashtra circle.
Construction
company Simplex Concrete Piles reported a 160 per cent
increase in profits on a revenue growth of over 50 per
cent for the year ended March 2005. The company's order
book stands at Rs3,500 crore.
Amara
Raja Batteries' profits for the year ended March 2005
has jumped over 5 times as compared to the previous year.
The company has reported a revenue growth of close to
35 per cent. The stock closed over 5 per cent lower.
 Agro
Dutch, Jyoti Structures and Shringar Cinema were among
the best performing stocks among mid-caps.
Universal
Cables, Igarashi Motors and Vardhman Spinning 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
|
7,210.77
|
+
16.92 |
| NIFTY
|
2,211.90
|
-
8.70 |
Last
Update : 1July, 2005, 16:13 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| LARSEN
& TOUBRO LTD. |
1,139.90
|
1,195.00
|
1,135.00
|
1,186.40 |
| STATE
BANK OF INDIA |
641.00
|
708.80
|
641.00
|
706.20 |
| RELIANCE
ENR |
636.70
|
653.90
|
630.90
|
649.75 |
| TATA
POWER |
380.70
|
387.00
|
378.00
|
385.75 |
| NTPC
LTD |
83.50
|
85.55
|
83.40
|
84.95 |
| ASSOCIATED
CEMENT COMPANIES LT |
379.00
|
387.25
|
376.30
|
385.40 |
| RANBAXY
LABORATORIES LTD. |
1,074.90
|
1,082.00
|
1,055.95
|
1,078.00 |
| CIPLA
LTD. |
314.20
|
322.00
|
313.00
|
319.10 |
| I
T C LTD |
1,609.00
|
1,685.00
|
1,609.00
|
1,671.40 |
| TATA
IRON AND STEEL CO. LTD. |
340.00
|
346.60
|
335.00
|
343.95 |
| GUJARAT
AMBUJA CEMENTS LTD. |
59.90
|
60.20
|
59.00
|
59.65 |
| BHARTI
TELE |
244.00
|
247.50
|
240.25
|
245.40 |
| BAJAJ
AUTO |
1,370.00
|
1,394.00
|
1,359.45
|
1,386.60 |
| DR.REDDY'S
LABORATORIES LTD. |
747.00
|
764.90
|
740.00
|
759.95 |
| MARUTI
UDYOG |
465.00
|
473.40
|
461.10
|
468.85 |
| HINDUSTAN
LEVER LTD. |
164.75
|
167.75
|
163.15
|
164.90 |
| TATA
MOTORS |
426.00
|
432.80
|
425.00
|
428.20 |
| HEROHONDA
M |
584.00
|
591.00
|
580.10
|
582.35 |
| TCS
LTD |
1,350.80
|
1,360.00
|
1,342.50
|
1,354.10 |
| GRASIM
INDUSTRIES LTD. |
1,055.00 |
1,064.00
|
1,055.00
|
1,060.05 |
| ONG
CORP LTD |
1,020.00
|
1,024.00
|
978.10
|
982.80 |
| WIPRO
LTD. |
760.00
|
763.00
|
740.50
|
744.80 |
| HDFC
BANK LT |
625.00
|
629.90
|
613.00
|
617.95 |
| HOUSING
DEVELOPMENT FINANCE CO |
862.00
|
884.00
|
862.00
|
870.15 |
| BHEL
|
845.00
|
876.80
|
845.00
|
856.95 |
| HINDALCO
IN |
1,197.25
|
1,216.80
|
1,180.00
|
1,189.95 |
| SATYAM
COMP |
508.00
|
508.00
|
502.05
|
504.05 |
| RELIANCE*
|
642.05
|
645.00
|
637.10
|
639.65 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,305.00
|
2,365.00
|
2,305.00
|
2,350.80 |
| ICICI
BANK L |
424.50
|
428.80
|
419.10
|
421.30 |
Last
Update : 1 July, 2005, 16:02PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| SBIN
|
682.00
|
708.90
|
662.15
|
706.25 |
| RELIANCE
|
643.00
|
645.00
|
637.55
|
640.10 |
| ONGC
|
1025.00
|
1025.00
|
978.00
|
983.20 |
| TISCO
|
342.00
|
346.50
|
336.10
|
344.15 |
| INFOSYSTCH
|
2345.00
|
2366.00
|
2328.20
|
2351.05 |
| REL
|
630.05
|
653.95
|
629.00
|
650.05 |
| TCS
|
1350.00
|
1356.70
|
1340.35
|
1352.40 |
| SATYAMCOMP
|
507.00
|
507.90
|
501.55
|
504.40 |
| HINDLEVER
|
164.00
|
167.80
|
163.35
|
164.85 |
| LT
|
1132.10
|
1192.00
|
1132.10
|
1182.80 |
| SAIL
|
47.95
|
49.30
|
47.05
|
48.40 |
| WIPRO
|
750.00
|
760.00
|
731.30
|
744.80 |
| TATAMOTORS
|
428.00
|
432.75
|
424.65
|
428.05 |
| IPCL |
173.00 |
175.00
|
170.15
|
171.80 |
| CIPLA |
314.45 |
321.95
|
312.55
|
319.40 |
| RANBAXY
|
1055.00
|
1083.85
|
1053.20
|
1077.70 |
| BAJAJAUTO
|
1350.00
|
1395.00
|
1350.00
|
1387.35 |
| MARUTI
|
463.00
|
479.00
|
460.00
|
471.55 |
| ITC
|
1650.00
|
1688.00
|
1635.05
|
1670.55 |
| BHARTI
|
247.80
|
247.80
|
235.00
|
245.40 |
| BHEL
|
860.00
|
879.50
|
845.00
|
856.95 |
| M&M
|
554.00
|
577.60
|
553.05
|
572.50 |
| MTNL
|
116.95
|
119.60
|
116.10
|
118.80 |
| HDFC
|
862.10
|
885.00
|
862.10
|
870.25 |
| PNB
|
377.50
|
390.40
|
377.50
|
385.35 |
| VSNL
|
245.00
|
251.90
|
243.30
|
250.90 |
| GLAXO
|
808.00
|
862.00
|
803.45
|
857.00 |
| ICICIBANK
|
427.00
|
429.25
|
419.20
|
421.25 |
| ACC
|
380.00
|
388.00
|
376.80
|
385.85 |
| HINDALC0
|
1205.00
|
1217.00
|
1185.00
|
1189.85 |
| HDFCBANK
|
616.25
|
625.00
|
613.00
|
618.05 |
| ORIENTBANK
|
250.20
|
257.50
|
248.10
|
254.65 |
| HCLTECH
|
394.00
|
394.80
|
383.15
|
391.25 |
| TATAPOWER
|
377.00
|
385.40
|
377.00
|
385.00 |
| COLGATE
|
243.15
|
253.50
|
243.15
|
250.25 |
| TATATEA |
621.00 |
640.00
|
617.00
|
637.35 |
| DRREDDY
|
755.00
|
764.95
|
737.00
|
761.40 |
| ZEETELE
|
156.00
|
156.80
|
154.05
|
154.55 |
| HEROHONDA
|
590.00
|
595.00
|
579.00
|
583.30 |
| GUJAMBCEM
|
59.70
|
60.15
|
58.50
|
59.75 |
| GRASIM
|
1060.00
|
1064.95
|
1051.10
|
1060.55 |
| TATACHEM
|
166.35
|
169.90
|
165.50
|
169.15 |
| GAIL
|
227.60
|
228.00
|
222.10
|
223.00 |
| DABUR
|
132.40
|
133.95
|
131.10
|
132.05 |
| HINDPETRO
|
307.00
|
312.75
|
307.00
|
310.90 |
| NATIONALUM
|
141.70
|
142.85
|
140.50
|
141.15 |
| BPCL
|
370.00
|
374.00
|
365.00
|
371.25 |
| SCI
|
141.95
|
143.10
|
140.10
|
142.80 |
| SUNPHARMA
|
577.05
|
592.00
|
575.00
|
588.00 |
| ABB
|
1306.50
|
1335.00
|
1306.50
|
1331.30 |
Last
Update : 1 July, 2005, 16:00PM
| 
