|
Indices witnessed large volatility from the morning itself
as traders remained unsure of market direction. After
Infosys failed to give a pleasant surprise yesterday,
most traders are now waiting for the results from other
IT majors like TCS and Satyam as well as other frontline
companies.
The bounce back in crude oil yesterday did not help the
sentiment and the flat closing by US markets did not give
any cues either. After some sharp movements in opening
trades, the indices declined close to half a per cent
within an hour.
Recovery in Infosys and PSU bank stocks like SBI and PNB
helped the indices to recover from the losses and trade
flat till early afternoon. Lack of buying support later
in the afternoon saw the indices declining to the lows
of the day.
Sensex closed at 7248, a loss of 56 points, and the Nifty
at 2204, a loss of 17 points. Nifty July futures discount
to the spot index widened to 11 points from yesterday's
2 points.
Dabur, Zee Tele and VSNL were among the major gainers
among Nifty stocks while GAIL, Ranbaxy and HDFC Bank were
the major losers.
The surge in crude prices held the US markets under check
yesterday. The Dow closed the day with marginal losses
while S&P 500 closed with gains of close to one quarter
of a per cent. NASDAQ closed with gains of close to half
a per cent.
Crude
bounced back over 3 per cent to close at $60.62 to a barrel
yesterday. Crude futures for August delivery surged on
worries of new storms in the Gulf of Mexico affecting
oil production.
Indian
technology ADR's had the worst day in recent months as
Infosys results disappointed a section of traders. Infosys
lost close to 7 per cent while Satyam lost close to 6
per cent. Wipro was better off, closing the day with losses
of over 3 per cent. Dr. Reddy's and HDFC Bank were the
other major losers, closing over 2 per cent lower. ICICI
Bank also closed with losses.
The
strong gains in VSNL yesterday in the domestic markets
reflected in the ADR as well, gaining close to 15 per
cent. MTNL and Tata Motors were the other major gainers
closing over 3 per cent higher.
Cement
major ACC reported a 70 per cent increase in first quarter
profits on a revenue growth of close to 20 per cent. The
stock surged over 2 per cent after the results were announced,
but gave up part of the gains after traders realised that
exceptional gains boosted profits.
The
company has decided to change its financial year from
April-March to Jan-Dec, to align its reporting with that
of Holcim. The European cement major is a large shareholder
in ACC. The company has also decided to sell its refractory
division to ICICI Ventures for over Rs250 core.
VSNL
continued to surge today as well even after the company
denied rumours of a domestic acquisition. The company
clarified that being part of the Tata group which already
hold telecom licenses in most circles across the country,
VSNL is not allowed to make any acquisition under the
current regulations.
This
statement from the company did not deter traders as they
point to strong institutional interest in the counter
as evidence of some major development in the company.
The stock opened almost 4 per cent higher and had gained
close to 10 per cent by early afternoon. The stock closed
with gains of around 5 per cent.
Zee
Telefilms was another counter which rallied today on market
rumours and media reports. There were reports in the media
that top officials of the company held meetings with Anil
Ambani group on a possible partnership for the DTH business.
Zee is currently the only private operator of significance
in the DTH space.
The
stock opened higher by close to 3 per cent before surging
another 7 per cent before noon. The stock closed over
5 per cent higher. After the markets closed, the company
denied all such reports as speculation.
Hindalco's
board of directors have approved the proposal for a stock
split. Every Rs10 share will be split into 10 shares of
Rs1 each. The decision is subject to shareholder approval.
Hindalco expects the supply shortfall in the Asian region
in aluminium to widen to 5.9 million tonnes by the year
2009 from 4 million tonnes in 2004.
The
CEO of Wipro Americas has stated that it is the only Indian
company in the race for a large contract from General
Motors. The multi-year contract is reportedly worth $2
billion and Wipro is believed to be bidding for part of
it. The company may also join hands with US IT services
provider EDS to bid for the contract.
Mid-Cap
Action
Mid-caps
were less affected by the decline in frontline stocks
though they lost part of the gains by afternoon. The mid-cap
index opened strong and posted new life time highs and
was trading with gains of over a per cent by early afternoon.
The CNX Mid-Cap 200 index closed at yet another new life
time high of 3216, a gain of 22 points.
Aztec
Software announced very good results for the quarter ended
June '05. Both revenues and profits were higher by over
150 per cent as compared to the same quarter of the previous
year. The growth was excellent even when compared to the
previous quarter ended March '05.
The
stock opened more than 5 per cent higher but gave up part
of its gains and closed 2 per cent higher.
Punjab
Tractors surged over 8 per cent in early trades after
the company announced a 6 fold jump in profits for the
quarter ended June '05. Revenues rose close to 50 per
cent as compared to the same quarter of previous year.
The
stock gave up much of its gains as traders realised that
the increase in profits was mostly on a one time realisation
from the sale of its stake in Swaraj Mazda.
Ballarpur
Industries gained over 2 per cent in intra-day trades
after the company announced the successful completion
of its FCCB issue yesterday. The company raised $60 million
from the issue and the FCCB's will be converted at a price
of Rs180 per share after 5 years.
Another
company which completed an FCCB issue yesterday was Uttam
Galva Steel. The company raised $30 million from the issue
to fund its expansion plans. The bonds will be converted
after a period of 5 years at a premium of 45 per cent
to the current domestic stock price.
Hindustan
Constructions surged over 3 per cent in afternoon trades
after the company announced a new order from National
Highway Authority. The order is for construction of roads
and is reportedly worth over Rs400 crore.
Madhucon
Projects also announced a new order from the National
Highway Authority. The order is for construction of a
highway in the state of Uttar Pradesh and is reportedly
worth over Rs300 crore.
Jaypee
Associates was another construction company which saw
substantial gains during the day. There is some speculation
that the company will be awarded some major orders by
the National Highway Authority. The company is also planning
to spin off its cement manufacturing division into a separate
company.
Mushroom
exporter Agro Dutch surged after the company announced
that it has received fresh institutional orders worth
Rs100 crore from the US. These orders are from major food
companies like US Food Services and Heinz.
The
orders will be executed by next year. Agro Dutch had announced
a capacity expansion recently and a German company will
be investing 5 million Euros in the company.
Ramkrishna
Forgings continued to surge today as well, on speculation
about Mahindra & Mahindra acquiring a large stake
in the company. Both companies have denied the rumours,
but that was not enough to bring down the stock price.
Pharma
company Ind-Swift Laboratories announced that it has commissioned
three new manufacturing facilities. The facilities are
for statins, anti-histamines and API's and confirm to
US FDA standards. With the new plants, the company's capacity
would more than double.
 Dhanalakshmi
Bank, ITI Limited and HMT were among the best performing
stocks among mid-caps.
SREI
Infrastructure Finance, Cosmo Films and DS Kulkarni Developers
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
|
7,247.91
|
-
56.04 |
| NIFTY
|
2,204.05
|
-16.75
|
Last
Update : 13 July, 2005, 16:13 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| HEROHONDA
M |
610.60
|
649.00
|
610.60
|
636.00 |
| TATA
POWER |
401.00
|
410.00
|
397.55
|
407.95 |
| STATE
BANK OF INDIA |
720.00
|
734.80
|
717.55
|
726.35 |
| LARSEN
& TOUBRO LTD. |
1,245.00
|
1,270.00
|
1,230.00
|
1,262.30 |
| WIPRO
LTD. |
703.00
|
716.50
|
690.00
|
709.05 |
| BAJAJ
AUTO |
1,384.50
|
1,400.00
|
1,370.00
|
1,389.10 |
| ASSOCIATED
CEMENT COMPANIES LT |
425.00
|
436.25
|
420.65
|
422.65 |
| BHEL
|
883.80
|
884.00
|
868.25
|
876.00 |
| HINDALCO
IN |
1,250.00
|
1,253.00
|
1,228.00
|
1,231.35 |
| RANBAXY
LABORATORIES LTD. |
1,050.00 |
1,057.00
|
1,017.00
|
1,022.25 |
| SATYAM
COMP |
498.00
|
498.00
|
483.20
|
485.10 |
| HDFC
BANK LT |
658.10
|
658.10
|
639.00
|
644.35 |
| BHARTI
TELE |
261.95
|
263.90
|
252.15
|
254.25 |
| ONG
CORP LTD |
950.00
|
950.00
|
922.35
|
924.60 |
| GRASIM
INDUSTRIES LTD. |
1,099.00 |
1,107.90
|
1,069.00
|
1,074.60 |
| MARUTI
UDYOG |
459.90
|
462.85
|
448.00
|
449.85 |
| GUJARAT
AMBUJA CEMENTS LTD. |
63.55
|
64.40
|
62.00
|
62.20 |
| HOUSING
DEVELOPMENT FINANCE CO |
910.00
|
910.95
|
880.00
|
889.00 |
| TATA
MOTORS |
468.60
|
470.00
|
458.25
|
460.50 |
| HINDUSTAN
LEVER LTD. |
159.00
|
160.00
|
156.10
|
156.70 |
| TCS
LTD |
1,300.00
|
1,302.00
|
1,266.00
|
1,270.30 |
| RELIANCE*
|
638.00
|
642.40
|
629.00
|
630.70 |
| TATA
IRON AND STEEL CO. LTD. |
370.00
|
370.00
|
352.80
|
355.20 |
| DR.REDDY'S
LABORATORIES LTD. |
756.90
|
764.85
|
748.00
|
751.00 |
| I
T C LTD |
1,750.00
|
1,760.00
|
1,723.05
|
1,729.75 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,214.00
|
2,250.00
|
2,199.00
|
2,202.65 |
| CIPLA
LTD. |
328.50
|
332.50
|
321.10
|
323.10 |
| ICICI
BANK L |
466.40
|
466.90
|
455.00
|
464.25 |
| RELIANCE
ENR |
629.95
|
631.00
|
615.15
|
620.20 |
| NTPC |
|
|
|
90.05 |
Last
Update : 13 July, 2005, 16:02PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| VSNL
|
339.00
|
364.30
|
333.00
|
344.65 |
| INFOSYSTCH
|
2225.00
|
2250.75
|
2200.00
|
2205.40 |
| SATYAMCOMP
|
494.00
|
495.00
|
483.25
|
485.25 |
| SBIN
|
722.10
|
735.00
|
717.30
|
726.40 |
| RELIANCE
|
640.00
|
641.40
|
629.10
|
630.95 |
| ACC
|
426.00
|
436.20
|
420.55
|
423.15 |
| ZEETELE
|
180.00
|
186.50
|
171.00
|
176.35 |
| TCS |
1285.00 |
1300.00
|
1267.00
|
1270.75 |
| TISCO
|
362.80
|
362.80
|
352.50
|
355.05 |
| ONGC |
941.00 |
950.00
|
921.60
|
923.85 |
| IPCL
|
176.40
|
181.20
|
176.00
|
177.60 |
| PNB
|
395.70
|
405.00
|
393.50
|
399.15 |
| WIPRO
|
703.00
|
716.70
|
700.10
|
709.20 |
| RANBAXY
|
1053.00
|
1059.95
|
1016.00
|
1022.00 |
| TATAMOTORS
|
469.00
|
472.90
|
458.00
|
461.00 |
| MTNL
|
136.00
|
141.15
|
136.00
|
137.80 |
| MARUTI
|
457.90
|
462.90
|
449.10
|
450.50 |
| ITC
|
1750.00
|
1758.00
|
1724.00
|
1728.85 |
| ICICIBANK
|
467.90
|
467.90
|
455.00
|
463.80 |
| TATAPOWER
|
398.95
|
410.75
|
398.10
|
408.15 |
| HEROHONDA
|
613.00
|
640.00
|
607.15
|
632.20 |
| ORIENTBANK
|
262.00
|
269.00
|
259.50
|
262.75 |
| SAIL
|
52.40
|
52.70
|
51.35
|
51.70 |
| BHARTI
|
260.90
|
262.50
|
252.10
|
254.20 |
| LT
|
1241.30
|
1268.45
|
1229.00
|
1263.25 |
| GAIL
|
220.50
|
222.00
|
210.65
|
211.95 |
| TATACHEM
|
174.50
|
182.50
|
174.50
|
180.35 |
| HDFCBANK
|
658.00
|
658.00
|
637.00
|
642.85 |
| DABUR
|
135.80
|
150.50
|
133.70
|
146.30 |
| BAJAJAUTO
|
1392.60
|
1396.00
|
1365.00
|
1380.60 |
| HINDLEVER
|
158.80
|
160.00
|
156.15
|
156.70 |
| HINDPETRO
|
303.00
|
305.50
|
295.05
|
296.40 |
| CIPLA
|
325.90
|
332.45
|
322.00
|
323.50 |
| GUJAMBCEM
|
63.60
|
64.00
|
62.00
|
62.25 |
| HDFC
|
915.00
|
915.00
|
878.05
|
887.90 |
| BHEL
|
872.05
|
884.00
|
869.00
|
876.35 |
| REL
|
628.80
|
628.90
|
615.10
|
619.50 |
| GRASIM
|
1100.00
|
1107.00
|
1068.00
|
1075.20 |
| M&M
|
596.00
|
601.00
|
590.60
|
592.95 |
| HINDALC0
|
1260.00
|
1264.45
|
1230.00
|
1231.45 |
| NATIONALUM
|
150.40
|
150.40
|
148.05
|
149.25 |
| BPCL
|
355.00
|
355.00
|
341.55
|
345.65 |
| HCLTECH
|
384.95
|
385.05
|
375.10
|
378.50 |
| TATATEA
|
649.00
|
649.00
|
632.00
|
638.75 |
| DRREDDY
|
755.00
|
760.00
|
746.10
|
749.00 |
| COLGATE
|
246.80
|
249.45
|
241.00
|
242.05 |
| SUNPHARMA
|
575.55
|
608.80
|
575.55
|
600.05 |
| ABB
|
1495.00
|
1515.00
|
1462.00
|
1470.35 |
| SCI
|
143.00
|
144.35
|
142.50
|
142.95 |
| GLAXO
|
854.50
|
858.00
|
841.05
|
844.00 |
Last
Update : 13 July, 2005, 16:00PM
| 
