|
To those who had thought the large decline in the markets
last Thursday after the London blasts would lead to a
deeper correction, the strength of the pull back over
the last 2 days would have come as a surprise. Markets
have more than recovered the losses and the Sensex managed
to close above 7300 for the first time ever today.
The
first day of the results season started as if the markets
have absolutely no doubts about corporate performance.
Though Infosys which kicks off the big ticket results
tomorrow was subdued, most other large cap stocks opened
strongly helping the indices to start on a strong note.
The
Sensex gained over 100 points and crossed the 7300 mark
before noon as broad based buying was seen in private
banks, telecom stocks, auto stocks and cement majors.
The
firm trend was threatened not even once during the day
as profit booking was very limited and the indices managed
to bounce back every time there was a marginal decline.
Sensex
closed at 7307, a gain of 95 points, and the Nifty at
2219, a gain of 23 points. Nifty July futures discount
to the spot index narrowed to 9 points from Friday's 12
points.
ICICI
Bank, ACC and VSNL were among the major gainers among
Nifty stocks while BPCL, Sun Pharma and Wipro were the
major losers.
HDFC
is planning a $500 million FCCB issue and is waiting for
RBI approval. RBI had recently relaxed overseas borrowing
restrictions and had allowed housing companies to issue
FCCB's.
The
issue planned by HDFC would be the largest ever FCCB offering
by an Indian corporate and would help the company to strengthen
its position in the home mortgage market. The stock closed
almost 2 per cent higher.
Punjab
National Bank is in discussions to take over management
control of a bank in Bangladesh and possibly another country.
The bank is also planning to open branches in countries
like Canada, Singapore and Hong Kong. The bank has applied
for RBI approval for overseas branches.
PNB
has received RBI approval for its insurance JV with Principal
of US and Vijaya Bank. The bank is now waiting for approval
from Insurance Regulatory and Development Authority. The
bank's mutual fund JV with Principal is one of the potential
buyers of UTI Mutual Fund. The stock closed with marginal
losses.
Jet
Airways opened the day with good gains after reports in
media that Air Sahara, the second largest private airline
after Jet, is planning a stake sale and Jet is one of
the potential buyers. The stock closed with gains of well
over a per cent. UB Group, which operates Kingfisher Airlines,
is being talked about as another potential buyer.
Tata
Power is firming up plans to raise its generation capacity
by 3,600 MW over the next few years. It is planning to
set up a 1,000 MW thermal plant each near Mumbai and Delhi.
Land acquisition for another 1,000 MW joint venture plant
at Maithon is underway.
Tata
Power is also going ahead with a 600 MW hydel project
in Uttar Pradesh, expected to cost Rs1,500 crore. The
total generation capacity of the company would exceed
6,000 MW once these projects are completed. The stock
closed with marginal losses.
BHEL
opened the day with losses after talks between the government
and left parties over disinvestment of 10 per cent in
the company was unsuccessful. The left parties continue
their firm opposition despite the government's willingness
to reduce the stake sale to 5 per cent. The stock recovered
later in the day and closed with gains.
ICICI
Bank surged close to 7 per cent today to touch a new life
time high. The stock has been firm over the last month
or so on institutional buying interest. The bank's ADR
touched a new high on the NYSE last week and is trading
at over 15 per cent premium to domestic prices.
Strong
buying continued in Bharti Televentures as the stock surged
4 per cent in morning trades to touch a new life time
high. The company had reported excellent growth in subscriber
additions for the month of June. The stock closed more
than a per cent higher.
Other
telecom stocks like VSNL and MTNL also saw very good buying
interest in early trades. VSNL touched a new 52 week high
as many analysts believe the company's broadband operations
would do well. Both VSNL and MTCL closed over 4 per cent
higher.
Another
sector which saw considerable buying interest today was
cement as all the frontline cement stocks saw good gains.
ACC gained over 4 per cent followed by Gujarat Ambuja
and Grasim.
Most
of the metal stocks continued their rally, though Tata
Steel closed with marginal losses after 3 days of strong
gains. SAIL closed more than 3 per cent higher.
Auto
stock also saw strong buying today as most companies had
announced reasonably good growth in June sales volumes
during the previous week. Bajaj Auto gained over 4 per
cent to close at a new 52 week high. Tata Motors, Hero
Honda and M&M also closed with gains.
Traders
remained sceptical on Infosys and Wipro before the Infosys
quarterly results announcement tomorrow. Both stocks closed
with losses of close to a per cent each. TCS and Satyam
managed to close the day with gains.
Oil
marketing companies continued to lose ground today as
well though crude oil has declined below $59 to a barrel
in Asian trades today. Indian Oil closed more than 2 per
cent lower. HPCL and BPCL also closed with losses.
The
government committee set up to study 'synergy in energy'
or restructuring of PSU oil companies has reportedly submitted
its report. The committee has suggested the formation
of 3 large integrated oil companies. The committee has
also suggested a holding company for all PSU oil companies.
Mid-Cap
Action
There
was no stopping the mid-caps today as well, as most of
the stocks closed with considerable gains on continued
buying. The CNX Mid-Cap 200 index closed at a new life
time high of 3190, a gain of 45 points.
Titan
Industries surged over 11 per cent to post a new life
time high today. The stock has been on a strong up trend
for the last one month on expectations of strong quarterly
results.
Many
analysts expect the company's branded jewellery division
to post strong results. The company is also expected to
announce a large expansion of its retail network in semi-urban
and rural areas. The company may also raise additional
capital to fund its expansion.
Stock
broking company IndiaBulls announced spectacular results
for the first quarter ended June '05. Profits jumped almost
8 times as revenues quadrupled as compared to the same
quarter of previous year.
IndiaBulls surged more than 10 per cent after the results
were announced to post a new life time high. The stock
cooled off during the latter part of the session and closed
with gains of over 5 per cent.
Sugar
major Bajaj Hindustan has reported excellent numbers for
the third quarter ended June '05. Both revenues and profits
multiplied more than 3 times as compared to the same quarter
of previous year. The company's financial year closes
in the month of September. The stock closed 3 per cent
higher.
Bajaj
Hindustan would invest Rs750 crore to further expand its
daily sugarcane crushing capacity by 32,000 tonnes to
95,000 tonnes. The company is currently implementing 3
new projects with a combined capacity of 21,000 tonnes
which are expected to go on stream from the next sugar
season. The company has decided not to pursue acquisition
of state owned sugar mills in Uttar Pradesh.
Enthused
by the strong results from Bajaj Hindustan, most other
sugar stocks saw strong buying. Balarampur Chini surged
over 4 per cent to close at a new life time high. Dhampur
Sugar, Dwarikesh Sugar and Upper Ganges were among the
other significant gainers.
Some
of the companies which were speculated as take over targets
of Anil Ambani group crashed as the group denied all such
rumours. Jyoti Structures, which was rumoured to be a
potential target of Reliance Energy, lost over 6 per cent.
Multiplex
operator Shringar Cinema, in which Reliance Capital was
rumoured to have been eyeing a stake, lost over 6 per
cent after a firm start. Reliance Capital denied that
it has any plans to acquire Shringar Cinema.
Crest
Animations also lost ground after Reliance Capital denied
any acquisition plan.
However,
buying continued in most other media and entertainment
stocks. Adlabs Films, Deccan Chronicle, NDTV, TV Today
and UTV Software all closed with significant gains. Television
Eighteen was among the few stocks in the media space which
closed with losses.
SRF
Limited and Gujarat Fluorochemicals continued their up
surge on talks of huge profit potential from carbon credits
in the future. SRF closed with gains of over 13 per cent
while Gujarat Fluorochemicals was locked in the 10 per
cent upper circuit for the second day.
 Gateway
Distriparks, Ramkrishna Forgings and HCL Infosystems were
among the best performing stocks among mid-caps.
Skanska
Cementation, Geodesic Info and Jain Studios 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
|
7,306.74
|
+
94.66 |
| NIFTY
|
2,218.85
|
+
22.65 |
Last
Update : 11 July, 2005, 16:13 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| ICICI
BANK L |
430.00
|
455.00
|
430.00
|
452.50 |
| ASSOCIATED
CEMENT COMPANIES LT |
398.00
|
416.70
|
397.00
|
412.35 |
| BAJAJ
AUTO |
1,350.00
|
1,400.00
|
1,350.00
|
1,398.45 |
| TATA
MOTORS |
438.40
|
450.10
|
437.90
|
448.45 |
| GUJARAT
AMBUJA CEMENTS LTD. |
61.00
|
62.75
|
60.80
|
62.30 |
| GRASIM
INDUSTRIES LTD. |
1,060.50
|
1,091.00
|
1,060.50
|
1,086.30 |
| HDFC
BANK LT |
655.00
|
666.30
|
655.00
|
663.85 |
| RELIANCE*
|
625.00
|
635.40
|
622.50
|
632.95 |
| LARSEN
& TOUBRO LTD. |
1,229.00
|
1,249.80
|
1,216.10
|
1,245.95 |
| HINDALCO
IN |
1,250.00
|
1,250.00
|
1,225.00
|
1,235.85 |
| DR.REDDY'S
LABORATORIES LTD. |
725.00
|
790.00
|
725.00
|
779.90 |
| NTPC
LTD |
89.05
|
91.00
|
89.05
|
90.00 |
| HOUSING
DEVELOPMENT FINANCE CO |
919.00
|
941.70
|
915.50 |
924.95 |
| TCS
LTD |
1,324.00
|
1,331.00
|
1,312.50
|
1,327.25 |
| BHARTI
TELE |
255.00
|
265.00
|
254.50
|
256.00 |
| SATYAM
COMP |
500.25
|
505.40
|
498.50
|
500.35 |
| HEROHONDA
M |
598.00
|
606.90
|
586.90
|
591.65 |
| ONG
CORP LTD |
924.40
|
934.00
|
920.00
|
924.60 |
| BHEL
|
852.25
|
885.00
|
852.25
|
879.10 |
| TATA
POWER |
397.40
|
402.90
|
396.00
|
400.00 |
| WIPRO
LTD. |
732.00
|
735.90
|
715.10
|
716.40 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,333.00
|
2,359.70
|
2,305.10
|
2,315.45 |
| STATE
BANK OF INDIA |
722.00
|
726.00
|
712.25
|
714.20 |
| HINDUSTAN
LEVER LTD. |
159.85
|
160.85
|
157.10
|
158.05 |
| MARUTI
UDYOG |
452.80
|
453.80
|
445.20
|
446.90 |
| BHARTI
TELEVENTURES |
|
|
|
256.00 |
| CIPLA
LIMITED |
|
|
|
318.80 |
| ITC
LTD |
|
|
|
1,704.35 |
| RANBAXY
LABORATORIES LTD |
|
|
|
1,060.60 |
| TATA
IRON & STEEL CO LTD |
|
|
|
361.45 |
Last
Update : 11 July, 2005, 16:02PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| INFOSYSTCH
|
2350.00
|
2360.00
|
2305.05
|
2315.80 |
| RELIANCE
|
618.15
|
636.00
|
618.15
|
633.90 |
| ONGC
|
923.30
|
934.30
|
922.10
|
926.15 |
| TISCO |
362.00 |
366.50
|
361.00
|
362.05 |
| SATYAMCOMP
|
500.00
|
505.90
|
498.00
|
500.45 |
| SBIN
|
723.00
|
727.90
|
712.35
|
714.75 |
| TATAMOTORS
|
436.50
|
449.70
|
436.15
|
448.70 |
| SAIL
|
51.15
|
53.45
|
51.15
|
52.90 |
| ACC
|
395.40
|
417.00
|
395.40
|
412.50 |
| ICICIBANK
|
427.35
|
454.90
|
427.35
|
452.35 |
| TCS
|
1311.10
|
1330.00
|
1311.10
|
1326.05 |
| BHARTI
|
253.00
|
265.00
|
253.00
|
256.20 |
| VSNL
|
270.00
|
282.00
|
270.00
|
278.30 |
| ZEETELE
|
170.05
|
174.00
|
167.10
|
173.10 |
| MARUTI
|
452.00
|
453.40
|
446.00
|
447.15 |
| IPCL
|
174.60
|
176.10
|
172.80
|
173.40 |
| HDFC
|
920.00
|
940.00
|
919.00
|
927.30 |
| WIPRO |
736.00 |
740.00
|
715.10
|
716.75 |
| LT
|
1221.00
|
1250.00
|
1216.20
|
1247.00 |
| PNB
|
394.00
|
398.40
|
390.40
|
391.90 |
| BAJAJAUTO
|
1360.00
|
1401.00
|
1350.00
|
1398.05 |
| HEROHONDA
|
589.00
|
607.00
|
585.00
|
592.80 |
| MTNL |
127.20 |
135.50
|
127.20
|
132.35 |
| ITC |
1700.00 |
1715.00
|
1694.80
|
1705.65 |
| HINDPETRO
|
306.00
|
307.90
|
300.50
|
302.65 |
| HINDLEVER
|
160.15
|
160.50
|
157.00
|
158.20 |
| GRASIM
|
1065.00
|
1094.00
|
1060.00
|
1087.75 |
| GUJAMBCEM
|
61.40
|
62.85
|
60.90
|
62.40 |
| REL
|
632.50
|
636.60
|
626.05
|
627.90 |
| TATATEA
|
628.70
|
660.00
|
620.30
|
647.45 |
| BHEL
|
860.20
|
885.00
|
849.20
|
878.60 |
| ORIENTBANK
|
259.00
|
262.40
|
258.55
|
259.80 |
| HDFCBANK
|
655.50
|
669.00
|
655.00
|
663.95 |
| M&M
|
610.00
|
615.00
|
605.00
|
606.65 |
| CIPLA
|
320.00
|
325.90
|
317.75
|
319.45 |
| RANBAXY
|
1074.00
|
1074.90
|
1054.00
|
1062.35 |
| HINDALC0
|
1239.00
|
1245.00
|
1228.85
|
1237.40 |
| HCLTECH
|
386.00
|
389.25
|
381.00
|
384.25 |
| TATAPOWER
|
399.00
|
402.90
|
395.20
|
396.80 |
| ABB
|
1461.00
|
1549.00
|
1461.00
|
1525.40 |
| NATIONALUM
|
140.15
|
148.85
|
140.15
|
147.75 |
| BPCL
|
361.00
|
365.00
|
352.00
|
354.30 |
| DRREDDY
|
775.10
|
783.75
|
773.50
|
778.60 |
| TATACHEM
|
173.25
|
174.40
|
172.20
|
172.80 |
| GLAXO
|
830.45
|
862.90
|
828.15
|
856.95 |
| SCI
|
140.50
|
145.90
|
140.50
|
144.20 |
| SUNPHARMA
|
621.00
|
626.65
|
608.55
|
611.40 |
| COLGATE
|
244.70
|
245.75
|
242.00
|
242.50 |
Last
Update : 11 July, 2005, 16:00PM
| 
