|
When the indices opened marginally in the positive and
the Sensex crossed 7300 early in the morning, not many
traders would have imagined the kind of carnage that awaited
them later in the day.
The
markets saw some selling pressure within an hour of opening
as selling in oil stocks, especially ONGC and Reliance,
pulled down the indices. Steel stocks held firm on continued
buying interest as did most bank stocks.
A
very positive market outlook report with a substantially
high target for the Sensex from a major domestic brokerage
and a strong buy call on Infosys by a major foreign brokerage
helped the indices to stage a smart recovery.
The
recovery did not last long as profit booking emerged later
in the afternoon. As the indices were drifting down, the
news of the London blasts came in along with reports of
large sell-offs in most European markets.
Indices
tumbled well over a per cent each in no time as a sense
of panic spread through the market. News reports indicating
that the London blasts may have been caused by electrical
fault and not by terrorists led to a partial recovery.
The
last half hour saw more panic selling as news reports
confirmed terrorist involvement in the blasts and the
indices closed almost at the lows of the day.
The
sensex closed at 7145, down 142 points, and the Nifty
at 2179, down 49 points. Nifty July futures discount to
the spot index jumped to 21 points from yesterday's 1
point.
Tata
Steel, Hero Honda and PNB were among the few gainers among
Nifty stocks while Reliance Industries, ONGC and Zee Tele
were the major losers, all losing over 4 per cent each.
US
markets declined yesterday as crude oil recorded a new
all time high. With no major economic data coming in,
traders were focussed on the movement in oil prices. The
Dow slipped close to a per cent as large industrial stocks
which would be affected by rising fuel prices declined.
Losses
on technology heavy NASDAQ index were lower at half a
per cent from the previous day's close and the S&P
500 index lost more than three fourths of a per cent.
Crude
futures for August delivery on the NYMEX surged nearly
3 per cent to close at a record high of $61.28 to a barrel
yesterday. During the day crude hit a life time high of
$61.35 on worries about tropical storms in the US affecting
refineries. Some refineries in the state of Louisiana
temporarily shut down operations after a storm.
Most
Indian ADR's bucked the weak trend yesterday and closed
with considerable gains. MTNL was the most significant
gainer, surging over 3 per cent. While HDFC Bank gained
closed almost 3 per cent higher, Tata Motors ended up
with gains of close to 2 per cent.
ADR's
of technology companies also managed to close with gains
as Wipro, Infosys and Satyam all ended more than a per
cent higher. ICICI Bank, Dr. Reddy's and VSNL also closed
in the positive.
In
what could result in a dramatic increase in its business,
Wipro is reportedly in talks to buy out the technology
services division of a major US corporate. According to
reports, the US company would spin off its division into
a separate company in which Wipro would hold a stake.
To
reduce its equity exposure, Wipro is believed to be in
talks with private equity funds who may hold a majority
stake in the venture. The size of the deal is estimated
to be in excess of $1 billion and may bring in good business
to Wipro through outsourcing as well. After opening firm,
Wipro closed the day more than 3 per cent lower.
Reliance
Industries is believed to have firmed up plans to double
the capacity of its Jamnagar refinery to 60 million tonnes
per annum. The expansion is expected to be completed as
early as next year and would make it one of the largest
single location refineries in the world.
There
are newspaper reports that the government may ask Reliance
to share up to Rs700 crore from the total subsidy on petroleum
products during the current financial year. Other stand
alone refiners like MRPL, Kochi Refineries and Chennai
Petroleum will share another Rs700 between them.
The
subsidy share of ONGC is expected to be around Rs3,500
crore while GAIL and Oil India will share around Rs400
crore between them. ONGC has countered the proposal by
claiming that the subsidy on natural gas produced domestically
should be shared by other oil companies as well.
Currently,
ONGC sells domestically produced natural gas at less than
market prices and the annual losses on account of this
was estimated at Rs2,800 crore. Even after the 10 per
cent revision effected recently, realisations of ONGC
is almost 40 per cent lower than market rates.
Videocon
group has confirmed that Swedish appliances company Electrolux
will invest over Rs400 crore and hold around 5 per cent
stake in Videocon Industries after the merger with Videocon
International. Unconfirmed reports suggest that French
electronics company Thomson SA may increase its proposed
holding in the merged entity to 26 per cent from the earlier
14 per cent.
Boards
of both companies have approved the merger at the ratio
of one share of Videocon Industries for every five shares
of Videocon International. The group has also indicated
that it is in negotiations to acquire more overseas oil
and gas assets. Videocon International lost almost 6 per
cent while Videocon Industries closed more than a per
cent lower.
Tata
Motors has reported a 9 per cent rise in June sales volumes
as compared to the same month of last year. While sales
of commercial vehicles increased 15 per cent, passenger
vehicle sales were disappointing. Tata Motors have had
a disappointing first quarter with hardly any volume growth.
The
stock saw considerable volatility through the day. After
opening weak, the stock surged and went into the positive
as the sales numbers were announced. The stock declined
later and closed the day with losses of over a per cent.
Ashok
Leyland, the second largest player in the commercial vehicles
segment, reported volume growth of over 35 per cent as
compared to the same month of last year. The stock, which
opened considerably lower as it went ex-dividend today,
recovered after the numbers were announced but declined
again and closed over 3 per cent lower.
Mid-Cap
Action
Mid-caps
continued their strong surge in the morning and the index
touched a new life time high. The sell-off in the frontline
indices led to selling in the mid-caps as well, though
losses in this space were considerably lower. CNX Mid-Cap
200 index closed at 3095, a loss of 33 points.
Garment
manufacturing and retailing company Provogue made its
entry on the bourses in grand style today. Issued at Rs150
per share, the stock opened at Rs249 on the NSE and went
on to touch a high of Rs299.
The
IPO of Provogue had attracted large interest from retail
investors and the current market fancy for companies with
retail operations led to the very strong listing. The
stock was also helped by some aggressive profitability
projections from the management. The stock closed the
day at Rs244.
There
are unconfirmed reports that Nicholas Piramal is looking
at acquisition of an overseas drug company which is into
contract manufacturing. Nicholas Piramal has been giving
more attention to contract manufacturing of pharmaceuticals
for global drug majors.
Nicholas
Piramal's new cancer drug would enter clinical trials
this year. The company may be able to launch the product
commercially by 2008, if the trials are successful. The
stock saw some buying interest early in the afternoon,
but could not hold on to the gains and closed almost 2
per cent lower.
More
and more companies are being speculated as possible take
over targets of Reliance Capital and stocks are flying
around. After the frenzy in small private bank stocks,
the attention has reverted to the media and entertainment
space.
The
latest buzz is that Reliance Capital is interested in
acquiring Crest Animation, which develops entertainment
software. The stock, which had gained 20 per cent yesterday,
opened on a very strong note and surged almost 10 per
cent in early trades.
The
stock tumbled later in the day after the company denied
such reports and closed more than 2 per cent lower.
NDTV
saw a huge block deal on the BSE with over 7 per cent
of the company's equity changing hands. The stock lost
almost 3 per cent today.
 Bombay
Burmah Trading, Calsoft and Shringar Cinema were among
the best performing stocks among mid-caps.
Karnataka
Bank, Rane Engine Valves and Elder Pharma 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
|
7,145.13
|
-
142.47 |
| NIFTY
|
2,179.40
|
-
48.80 |
Last
Update : 7 July, 2005, 16:13 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| TATA
IRON AND STEEL CO. LTD. |
350.00
|
360.50
|
348.00
|
354.00 |
| HEROHONDA
M |
576.00
|
591.00
|
575.00
|
581.20 |
| I
T C LTD |
1,650.00
|
1,704.00
|
1,650.00
|
1,679.55 |
| GRASIM
INDUSTRIES LTD. |
1,061.00 |
1,076.00
|
1,052.15
|
1,059.55 |
| RELIANCE*
|
642.00
|
645.00
|
609.05
|
613.85 |
| ONG
CORP LTD |
975.00
|
983.00
|
922.50
|
929.35 |
| HINDALCO
IN |
1,259.00
|
1,290.00
|
1,201.00
|
1,211.25 |
| WIPRO
LTD. |
740.00
|
757.00
|
701.00
|
710.30 |
| RELIANCE
ENR |
650.00
|
653.40
|
621.00
|
627.15 |
| HOUSING
DEVELOPMENT FINANCE CO |
930.00
|
934.00
|
900.00
|
903.85 |
| BHEL
|
892.00
|
900.00
|
866.00
|
867.00 |
| HINDUSTAN
LEVER LTD. |
164.00
|
164.50
|
156.30
|
158.30 |
| MARUTI
UDYOG |
460.80
|
462.00
|
445.50
|
448.05 |
| NTPC
LTD |
86.90
|
90.00
|
86.50
|
87.15 |
| ICICI
BANK L |
432.25
|
433.00
|
417.00
|
421.95 |
| SATYAM
COMP |
500.15
|
505.70
|
488.60
|
490.95 |
| RANBAXY
LABORATORIES LTD. |
1,075.00
|
1,079.95
|
1,041.00
|
1,049.05 |
| CIPLA
LTD. |
324.00
|
325.00
|
312.30
|
313.80 |
| DR.REDDY'S
LABORATORIES LTD. |
785.00 |
785.00
|
768.00
|
771.70 |
| STATE
BANK OF INDIA |
725.00
|
728.00
|
705.50
|
710.30 |
| TATA
MOTORS |
443.00
|
447.90
|
433.10
|
436.70 |
| BAJAJ
AUTO |
1,360.05
|
1,365.00
|
1,343.00
|
1,343.00 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,347.00
|
2,373.90
|
2,307.15
|
2,317.85 |
| BHARTI
TELE |
244.00
|
245.00
|
237.05
|
241.45 |
| TATA
CONSULTANCY SERVICES |
|
|
|
1,309.55 |
| TATA
POWER COMPANY LIMITED |
|
|
|
395.65 |
| LARSEN
& TOUBRO LIMITED |
|
|
|
1,200.00 |
| HINDUSTAN
LEVER LIMITED |
|
|
|
158.30 |
| GUJARAT
AMBUJA CEMENTS LTD |
|
|
|
59.95 |
| ACC |
|
|
|
389.50 |
Last
Update : 7 July, 2005, 16:02PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
641.40
|
641.40
|
609.30
|
613.95 |
| SBIN
|
724.00
|
727.80
|
705.25
|
710.25 |
| TISCO
|
351.00
|
359.75
|
351.00
|
353.80 |
| INFOSYSTCH
|
2352.00
|
2373.90
|
2306.65
|
2319.90 |
| ONGC
|
980.00
|
983.00
|
925.00
|
931.45 |
| SATYAMCOMP
|
500.95
|
506.40
|
488.00
|
490.75 |
| ITC
|
1676.30
|
1703.85
|
1665.10
|
1680.85 |
| TATAMOTORS
|
444.95
|
447.50
|
433.40
|
436.75 |
| WIPRO |
747.00 |
765.00
|
700.00
|
710.50 |
| TCS
|
1323.10
|
1340.00
|
1303.25
|
1309.65 |
| HINDALC0
|
1259.50
|
1290.00
|
1202.00
|
1211.65 |
| PNB
|
392.00
|
399.70
|
388.20
|
391.85 |
| HDFCBANK
|
645.10
|
662.00
|
634.00
|
640.55 |
| MARUTI
|
460.00
|
461.90
|
446.30
|
448.40 |
| IPCL
|
177.00
|
178.25
|
171.70
|
172.90 |
| LT
|
1205.00
|
1225.00
|
1183.00
|
1199.40 |
| SAIL
|
50.50
|
50.95
|
49.75
|
50.25 |
| REL
|
650.00
|
652.00
|
622.95
|
628.00 |
| M&M |
601.00 |
612.80
|
595.65
|
599.05 |
| HINDLEVER
|
164.00
|
164.40
|
156.10
|
158.35 |
| VSNL
|
262.15
|
272.40
|
255.15
|
260.55 |
| HDFC
|
928.00
|
935.00
|
900.00
|
901.80 |
| ORIENTBANK
|
262.90
|
267.00
|
252.00
|
257.75 |
| RANBAXY
|
1064.00
|
1072.00
|
1043.05
|
1047.95 |
| ACC
|
391.00
|
397.05
|
382.00
|
385.50 |
| BHEL
|
892.45
|
898.70
|
865.00
|
875.80 |
| BHARTI |
246.00 |
246.90
|
237.60
|
240.95 |
| NATIONALUM
|
145.25
|
147.00
|
142.20
|
142.95 |
| GRASIM
|
1065.00
|
1077.00
|
1010.00
|
1060.75 |
| TATAPOWER
|
400.90
|
403.50
|
393.40
|
395.50 |
| ZEETELE
|
167.10
|
168.90
|
156.55
|
159.80 |
| ICICIBANK
|
433.50
|
434.00
|
417.00
|
422.00 |
| HINDPETRO
|
314.00
|
314.95
|
306.55
|
307.40 |
| MTNL |
130.90 |
132.40
|
124.15
|
126.80 |
| CIPLA
|
323.80
|
323.80
|
313.00
|
314.40 |
| ABB
|
1525.00
|
1525.00
|
1385.55
|
1472.20 |
| GUJAMBCEM
|
60.10
|
61.55
|
59.50
|
59.90 |
| BPCL
|
371.00
|
372.00
|
358.10
|
362.30 |
| GAIL
|
226.90
|
228.00
|
219.25
|
220.20 |
| TATACHEM
|
170.05
|
176.80
|
169.20
|
170.45 |
| HEROHONDA
|
576.75
|
591.80
|
570.00
|
581.25 |
| DRREDDY
|
784.00
|
786.80
|
765.00
|
772.05 |
| TATATEA
|
622.00
|
638.00
|
622.00
|
629.65 |
| HCLTECH
|
388.00
|
388.00
|
380.00
|
381.00 |
| BAJAJAUTO
|
1352.00
|
1374.00
|
1340.00
|
1345.80 |
| DABUR
|
135.80
|
136.40
|
130.50
|
133.05 |
| SCI
|
144.90
|
145.80
|
140.45
|
141.55 |
| GLAXO
|
836.50
|
851.65
|
815.00
|
827.10 |
| COLGATE
|
246.30
|
248.75
|
239.00
|
240.40 |
| SUNPHARMA
|
602.00
|
610.00
|
600.05
|
604.25 |
Last
Update : 7 July, 2005, 16:00PM
| 
