|
Markets opened the day on a positive note but traders
were wary after the volatility seen during the last two
days. Though the positive cues from a strong closing by
the US markets yesterday and the substantial decline in
crude prices helped the indices in early trades, markets
were held back by the uncertainty over the oil subsidy
sharing formula expected later in the day.
After
trading within a range till noon, the indices dipped and
went into the negative for a short period. However, strong
buying in Reliance helped the markets to recover soon
after and the indices gained strength as more and more
stocks joined the rally. Reports that the oil subsidy
sharing formula finalised by the government is more or
less in line with market expectations helped all the oil
stocks.
The
upsurge in the indices during the last one hour was very
fast as stocks like Infosys and Tata Motors gained more
strength. The recovery in ONGC from its earlier lows also
helped the indices.
Sensex
closed at 7272, with a gain of 84 points, and the Nifty
at 2213, a gain of 27 points. Nifty July futures discount
to the spot index narrowed to 5 points from yesterday's
14 points.
VSNL,
Reliance Industries and Infosys were among the major gainers
among Nifty stocks while HDFC Bank, Tata Chemicals and
ICICI Bank were the major losers.
Strong
earnings from frontline companies and sharp decline in
crude prices helped US markets to close on a positive
note yesterday. The Dow gained well over half a per cent
while S&P 500 gained over a quarter of a per cent.
NASDAQ closed with gains of close to half a per cent.
Crude
declined close to 4 per cent yesterday as traders and
large funds booked profits on receding fears about tropical
storms in the Gulf of Mexico. NYMEX crude futures for
August delivery closed the day at $57.8 to a barrel.
Indian
ADR's had a disastrous day in the US markets even when
the overall markets were trending upwards. All three technology
ADR's, Infosys, Satyam and Wipro lost between 1 to 2 per
cent. ICICI Bank and VSNL were the biggest losers with
close to 4 per cent losses. Tata Motors closed the day
with losses of 2 per cent. HDFC Bank, Dr. Reddy's, and
MTNL also closed with losses.
Inflation
for the week ended 02 July fell marginally to 4.09 per
cent from 4.14 per cent reported for the previous week.
Tata
Steel expects global steel prices to recover marginally
in the next few months. However, the company would keep
the long term contract prices unchanged. Global steel
demand is expected to grow about 5 per cent while domestic
demand may grow at a higher 7 per cent during the current
year. The stock closed more than a per cent higher.
ICICI
Bank is focussing on expanding its global presence at
a fast pace. The largest private sector bank has opened
its second branch in UK and its fourth branch in Canada
recently. The bank will offer both retail and corporate
banking solutions at these branches.
After
divesting a large part of its plantation activities in
south India to a company controlled by workers, Tata Tea
is planning to diversify the revenue streams from its
plantations in the north east. The company has appointed
a consultant to study the possible diversifications.
Tata
Tea is planning to use the under utilised land in its
plantations to raise other crops. The company may also
look at non-agro revenue streams as well. Tata Tea will
also sell six plantations in South India to Tata Coffee.
Infosys
is planning to expand its operations in China in a big
way to service the domestic market there. The company,
which has around 100 employees in China at present, expects
to increase the number to 1,000 in the next few quarters.
Tata
Motors expects the domestic passenger car market to maintain
a steady growth rate of 8 to 10 per cent over the next
five years. The company expects domestic income growth
to drive demand. During the first quarter of the current
year, Tata Motors lost its second position in passenger
car sales to Hyundai.
Reliance
Industries surged over 2 per cent in early trades on rumours
that shareholders may get shares of other group companies
including companies belonging to the Anil Ambani group.
The company later refused to comment on the rumours.
Reliance
rallied further later in the day after reports that its
share of subsidy on liquid fuels will not be more than
Rs800 crore, marginally higher than the Rs700 crore expected
by the markets. The stock closed with gains of close to
4 per cent.
Stocks
of oil marketing companies surged in early trades on expectations
of a lighter subsidy burden on them as per the new sharing
formula. Indian Oil, HPCL and BPCL all gained close to
2 per cent each in morning trades. ONGC, which was expected
to take a substantial subsidy hit, lost close to 2 per
cent in early trades.
ONGC
recovered part of its losses before noon after reports
that the company will acquire a 5 per cent stake in RasGas
of Qatar. RasGas is a major supplier of natural gas to
India. ONGC Videsh may acquire a few exploration blocks
in Cuba.
ONGC
gained close to a per cent in late trades after reports
that the subsidy burden will not be higher than the expected
Rs2,800 crore.
Natural
gas supplier GAIL surged well over a per cent after the
management said the company's first quarter profits would
not be affected by the subsidy share on liquid fuels and
LPG. The subsidy share of GAIL for the first quarter will
be lower than its share during the same quarter of previous
year. The stock closed with gains of over 3 per cent.
Private
sector bank majors ICICI Bank and HDFC Bank had a bad
day. HDFC Bank, which had surged over 2 per cent after
the announcement of quarterly results yesterday, dropped
over 2 per cent by noon before recovering partly. The
stock dipped again and closed with losses of over 2 per
cent. ICICI Bank continued its correction from yesterday
till late in the afternoon before recovering partly and
closing a per cent lower.
Housing
finance major HDFC came out with its first quarter results
today. Both net income and profits increased over 20 per
cent as compared to the same quarter of last year. The
stock closed with gains of well over a per cent.
Auto
stocks had a good day with Tata Motors, Maruti, and Ashok
Leyland all closing with good gains. M&M closed with
marginal gains after trading weak in early trades. Two-wheeler
companies Bajaj Auto and Hero Honda also managed to close
with gains.
Technology
stocks recovered partly from the severe beating suffered
yesterday. TCS, which is set to announce quarterly results
over the weekend, closed with gains of close to 2 per
cent. Infosys gained close to 3 per cent, while Wipro
and Satyam also managed to close with gains.
Videocon
Industries announced that its board will meet later in
the month to discuss an overseas issue of convertible
bonds or GDR's to raise up to Rs5,000 crore. The stock,
which was trading almost 5 per cent lower till late in
the afternoon, recovered all its losses after the announcement.
VSNL,
which had corrected yesterday after a huge rally, recovered
in late trades and closed with gains of over 7 per cent.
Mid-Cap
Action
Mid-caps
maintained a relatively steady trend throughout the day.
After opening firm, the mid-cap index saw a minor dip
by early afternoon when the frontline indices went into
the red. By the end of the day, gains on the mid-cap index
were lower than the frontline indices after the sharp
surge seen in the latter. The CNX Mid-Cap 200 index closed
at 3239, a gain of 33 points, a new life time high.
Indraprastha
Medical, 24 per cent owned by Apollo Hospitals, has received
the accreditation of Joint Commission International. The
accreditation is the most widely acclaimed international
benchmark for healthcare services and will help the hospital
to attract more overseas patients.
Torrent
Power, which had announced expansion plans yesterday,
was locked in the 20 per cent upper circuit. Group company
Torrent SEC also gained over 8 per cent in intra-day trades.
IT
education company Aptech was locked in 20 per cent upper
circuit as the company's board is due to meet next week
to decide on a preferential allotment to overseas investors.
According to market rumours, an overseas financial or
strategic investor is expected to take a large stake in
the company.
After
remaining subdued for a couple of days, recently listed
Yes Bank surged close to 10 per cent in late afternoon
trades.
Dwarikesh
Sugar reported a drop in both revenues and profits for
the third quarter ended June '05. The company follows
September closing for its financial books. The stock,
which was trading with gains of over 2 per cent, plunged
after the numbers were announced.
The
stock however managed to recover later and close with
gains of close to 3 per cent after the company announced
that its expansion plans are well on course. The expansion
would see a doubling of the company's capacity.
PSU
telecom equipment manufacturer ITI Industries continued
its rally today as well, gaining another 9 per cent.
 SPIC,
KDL Biotech and Cinevistas were among the best performing
stocks among mid-caps.
CMC
Limited, Jaybharat Maruti and Cybermedia 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
|
7,271.54
|
+
83.84 |
| NIFTY
|
2,212.55
|
+
27.45 |
Last
Update : 15 July, 2005, 16:13 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| RELIANCE*
|
645.00
|
669.65
|
644.90
|
666.60 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,150.00
|
2,207.00
|
2,137.00
|
2,195.40 |
| TCS
LTD |
1,230.00
|
1,260.70
|
1,227.10
|
1,248.20 |
| TATA
IRON AND STEEL CO. LTD. |
355.00
|
358.35
|
348.00
|
356.95 |
| TATA
MOTORS |
452.00
|
465.45
|
452.00
|
463.70 |
| RELIANCE
ENR |
627.95
|
635.90
|
624.10
|
632.95 |
| GRASIM
INDUSTRIES LTD. |
1,088.10
|
1,099.00
|
1,076.00
|
1,095.65 |
| CIPLA
LTD. |
326.00
|
332.00
|
326.00
|
330.65 |
| BHARTI
TELE |
244.55
|
258.40
|
244.55
|
256.65 |
| LARSEN
& TOUBRO LTD. |
1,240.00
|
1,260.00
|
1,240.00
|
1,257.45 |
| DR.REDDY'S
LABORATORIES LTD. |
740.00 |
754.95
|
740.00
|
748.30 |
| HEROHONDA
M |
624.00
|
634.00
|
614.50
|
628.15 |
| WIPRO
LTD. |
698.00
|
706.50
|
693.00
|
703.85 |
| MARUTI
UDYOG |
450.00
|
455.00
|
448.00
|
454.00 |
| STATE
BANK OF INDIA |
712.60
|
721.45
|
712.00
|
717.85 |
| NTPC
LTD |
90.55
|
92.00
|
90.30
|
91.85 |
| HOUSING
DEVELOPMENT FINANCE CO |
889.65
|
891.90
|
875.05
|
886.80 |
| SATYAM
COMP |
481.00
|
485.00
|
476.00
|
480.90 |
| RANBAXY
LABORATORIES LTD. |
1,038.95
|
1,041.00
|
1,026.00
|
1,036.15 |
| ASSOCIATED
CEMENT COMPANIES LT |
427.00
|
429.05
|
421.50
|
426.95 |
| HDFC
BANK LT |
644.95
|
646.10
|
627.75
|
630.30 |
| ICICI
BANK L |
444.00
|
444.00
|
436.00
|
440.50 |
| TATA
POWER |
403.00
|
410.00
|
396.20
|
401.20 |
| BAJAJ
AUTO LIMITED |
|
|
|
1,383.05 |
| BHARAT
HEAVY ELECTRICALS |
|
|
|
889.50 |
| GUJARAT
AMBUJA CEMENTS LTD |
|
|
|
60.80 |
| HINDALCO
INDUSTRIES LIMITED |
|
|
|
1,239.45 |
| HINDUSTAN
LEVER LIMITED |
|
|
|
156.10 |
| ITC
LTD |
|
|
|
1,768.40 |
| OIL
& NATURAL GAS CORP LTD |
|
|
|
926.70 |
Last
Update : 15 July, 2005, 16:02PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
643.00
|
670.00
|
643.00
|
666.65 |
| VSNL |
318.00 |
344.65
|
310.55
|
341.20 |
| INFOSYSTCH
|
2195.00
|
2205.00
|
2139.15
|
2195.90 |
| ONGC |
981.00 |
981.00
|
896.55
|
928.10 |
| TCS
|
1231.00
|
1261.90
|
1215.05
|
1248.45 |
| SATYAMCOMP
|
509.00
|
509.00
|
475.65
|
480.95 |
| SBIN
|
710.00
|
728.00
|
710.00
|
719.25 |
| IPCL
|
185.50
|
189.80
|
185.00
|
186.75 |
| TISCO |
352.00 |
357.25
|
347.65
|
355.45 |
| ITC
|
1765.00
|
1777.00
|
1745.00
|
1767.60 |
| GAIL
|
212.90
|
216.40
|
208.15
|
212.60 |
| TATAMOTORS
|
456.10
|
465.00
|
453.25
|
463.80 |
| ZEETELE
|
168.05
|
175.00
|
168.05
|
170.10 |
| REL
|
624.80
|
635.90
|
624.00
|
632.45 |
| WIPRO
|
708.00
|
708.00
|
692.10
|
704.45 |
| HINDLEVER
|
156.50
|
157.50
|
152.10
|
156.30 |
| HINDPETRO
|
295.00
|
303.65
|
295.00
|
297.90 |
| MARUTI
|
450.20
|
455.00
|
448.20
|
454.10 |
| ACC
|
425.00
|
429.50
|
421.60
|
427.85 |
| MTNL
|
132.20
|
133.25
|
128.75
|
132.05 |
| BHARTI
|
253.00
|
258.90
|
250.50
|
256.10 |
| BAJAJAUTO
|
1371.05
|
1393.00
|
1371.05
|
1389.60 |
| NATIONALUM
|
149.80
|
156.70
|
149.80
|
155.90 |
| TATAPOWER
|
404.95
|
411.20
|
396.00
|
402.40 |
| CIPLA
|
326.90
|
332.00
|
325.05
|
331.00 |
| HDFCBANK
|
645.00
|
645.00
|
627.10
|
630.60 |
| SAIL
|
52.00
|
52.00
|
51.20
|
51.55 |
| TATACHEM
|
187.00
|
190.00
|
182.10
|
185.05 |
| ICICIBANK
|
425.55
|
444.00
|
425.55
|
441.30 |
| PNB
|
393.90
|
398.00
|
392.00
|
396.30 |
| DABUR
|
140.00
|
144.30
|
139.50
|
140.95 |
| LT
|
1245.00
|
1264.90
|
1240.00
|
1261.20 |
| M&M
|
604.45
|
604.45
|
585.00
|
597.40 |
| BPCL
|
343.80
|
348.80
|
340.00
|
341.25 |
| TATATEA
|
645.00
|
660.00
|
640.00
|
646.00 |
| HEROHONDA
|
624.00
|
635.00
|
612.15
|
628.40 |
| BHEL
|
888.00
|
894.80
|
879.00
|
889.65 |
| GUJAMBCEM
|
62.00
|
62.00
|
60.10
|
60.75 |
| HDFC
|
883.50
|
900.00
|
876.10
|
890.90 |
| GRASIM
|
1084.00
|
1099.00
|
1075.00
|
1095.35 |
| RANBAXY
|
1038.90
|
1040.00
|
1026.00
|
1036.25 |
| HCLTECH
|
365.10
|
379.00
|
365.10
|
376.50 |
| SCI
|
147.95
|
150.85
|
147.00
|
148.10 |
| ORIENTBANK
|
258.00
|
259.90
|
257.00
|
258.25 |
| DRREDDY
|
744.00
|
755.00
|
741.00
|
748.85 |
| HINDALC0
|
1251.00
|
1251.00
|
1231.05
|
1237.75 |
| SUNPHARMA
|
600.00
|
611.00
|
594.00
|
605.10 |
| GLAXO |
844.05 |
864.00
|
844.00
|
857.05 |
| COLGATE
|
241.75
|
241.75
|
233.25
|
237.80 |
| ABB
|
1468.00
|
1499.00
|
1451.00
|
1496.60 |
Last
Update : 15 July, 2005, 16:00PM
| 
