|
As expected, the indices opened the day with a good positive
gap as most frontline stocks carried their strengths from
yesterday. Though the US markets had closed lower yesterday,
domestic indices sought new all-time highs in the morning.
Most
of the gains were given up within half an hour, as the
markets dipped sharply following weakness in the technology
stocks and ITC. Reliance Industries also turned weak early
in the morning itself. SBI, Tata Steel and cement stocks
lent support to the markets.
The
indices drifted downwards till late in the afternoon with
regular attempts in between to regain lost ground. Just
when it seemed that the markets were heading to a weak
close, the indices started a recovery which saw them closing
near yesterday's levels.
The Sensex closed flat at 7347 and the Nifty at 2237,
a new lifetime closing high, with a gain of 3 points.
Nifty July futures closed the day at a premium of 1 point
to the spot index.
ACC, VSNL and Sun Pharma were among the major gainers
among Nifty stocks, while Hero Honda, ITC and Tata Tea
were the major losers.
The
US markets closed lower yesterday despite the decline
in crude prices, thanks to a lower than expected quarterly
performance from Citigroup. Both the Dow and NASDAQ lost
well over half a per cent each.
Crude
oil futures for August delivery declined over a per cent
yesterday on the NYMEX, to close at $57.32 to a barrel.
Indian ADR's had a good session on the US exchanges yesterday.
The technology stocks led the show with strong gains,
recovering part of the losses of previous week. Satyam
gained 3 per cent, while Infosys and Wipro closed with
gains of well over a per cent each. The ADRs of HDFC Bank,
Tata Motors, VSNL and MTNL also managed to close the day
with gains. ICICI Bank and Dr Reddy's closed with marginal
losses.
Reliance
Energy reported a 42 per cent rise in first quarter profits,
helped by a robust 75 per cent increase in investment
income. Total revenues increased by around 6 per cent.
Income from sale of electricity has declined marginally,
while revenues from engineering services and investment
operations went up. Profits were also boosted by an increase
in operating margin. The stock closed lower by close to
1 per cent.
Reliance Energy has reportedly received all environmental
clearances from the government for its proposed gas-based
thermal power plant in UP. The company is planning to
increase the capacity of the plant from around 3,600 MW
to over 7,000 MW.
There
are unconfirmed reports that the restructuring of Reliance
shareholdings will be through three separate holding companies,
instead of one company as believed. The holdings of Reliance
Industries in Reliance Energy, Reliance Capital and Reliance
Infocomm would be transferred to these three holding companies.
The
shareholding pattern of each of these companies would
reflect the current holding pattern of Reliance Industries.
Minority shareholders would be issued shares in these
holding companies in proportion to their current holding
in Reliance Industries. All three companies would be listed
on the exchanges subsequently.
BHEL
is negotiating with Japanese manufacturers for a possible
tie-up to manufacture high-speed railway wagons and coaches.
With the railways drawing up ambitious plans to construct
high-speed freight corridors and introduce high-speed
trains, demand for appropriate rolling stock is expected
to increase substantially. The stock closed over 2 per
cent higher.
Mahindra
& Mahindra confirmed that it has been shortlisted
as one of the two potential buyers of a Romanian tractor
manufacturer. The Romanian company has a capacity of 15,000
units per annum and has a sales network in most East European
countries. The stock closed with gains of over 2 per cent.
Infosys
has reportedly won an order for its core banking software
package Finacle, from DBS Bank. The Singapore-based bank
is one of the largest in South East Asia and is keen to
expand its business in India as well. The financial products
group of Infosys had reported the highest growth rate
among all segments during the first quarter. However,
the stock closed lower.
Tata
Tea is reportedly on the lookout for acquisitions in the
speciality and herbal tea segments. Though the company
has become the second-largest player in the traditional
black tea business globally after the acquisition of Tetley,
growth rates are much higher in the speciality and herbal
segments. The stock lost over 2 per cent.
Mid-Cap
action
Mid-caps
moved as if they are completely disconnected from the
frontline stocks today as well. While the frontline indices
closed flat, the CNX mid-cap 100 index closed with gains
of nearly 1 per cent, closing the day at 3396, a gain
of 32 points.
NDTV
reported a sharp decline in first quarter profits as compared
to the same quarter of the previous year. Profits for
the quarter dropped by 99 per cent to under Rs9 lakh from
over Rs7.6 crore during the previous year. Revenues increased
marginally during the quarter. NDTV mentioned higher expenditure
on personnel costs as well as higher spending on a new
business channel as reasons for the sharp decline in profits.
The stock closed the day with losses of over 10 per cent.
Other
media counters like TV Today and Deccan Chronicle also
saw some correction today. Adlabs Films was one of the
few gainers in this sector, closing more than 5 per cent
higher.
Hexaware
Technologies recovered from the losses of the last two
days, even though the quarterly results announced today
were lower than market expectations. Quarterly profits
were down by over 15 per cent as compared to the previous
quarter, though they were higher by over 30 per cent compared
to the same quarter of the previous year. Revenues were
flat as compared to the previous quarter. The company
added nine new clients during the quarter. Hexaware had
lost over 13 per cent in the last two trading sessions,
after the company reduced its full year guidance for the
current year.
After
hitting the 20 per cent upper circuit on two successive
days, Aptech Limited saw some correction today. The stock
closed 4 per cent lower after the company announced weaker
than expected results for the June quarter.
Many
mid-cap technology stocks saw considerable buying interest
led by Kale Consultants, which closed the day 20 per cent
higher. 3i Infotech closed over 7 per cent higher while
Nucleus bounced back from yesterday's decline and closed
over 6 per cent higher. NIIT Limited closed 3 per cent
higher, while NIIT Technologies gained over 2 per cent.
Financial Technologies closed over 10 per cent higher.
Astra
Microwave, a manufacturer of space and defence equipment
components, gained ground after the company announced
that its board will meet soon to discuss a stock split
and bonus issue. Honeywell Automation gained over 10 per
cent in the late afternoon after the company announced
a major order from Indian Oil, reportedly worth over Rs190
crore.
Mid-cap
cement and fertiliser stocks gained ground today after
some large block deals and good quarterly results from
fertiliser companies. Prism Cement gained well over 15
per cent after some large block deals were reported on
the BSE. Among the fertiliser stocks, RCF and Deepak Fertilisers
closed with gains.
Mid-cap
pharma company Wockardt reported a 55 per cent rise in
second quarter profits on a revenue growth of close to
30 per cent as compared to the same quarter of the previous
year. The company achieved very good growth rates in export
sales and expects US FDA approval for up to three new
drugs. Wockardt is looking at acquisitions in the US and
Europe to fuel its growth.
ITI
Limited and HMT continued their gravity defying act today
as well. ITI gained over 13 per cent in intra-day trades
before closing with 7 per cent gains. HMT surged close
to 21 per cent today.
Some
of the mid-cap banks saw a surge in afternoon trades.
Among them were Centurion Bank, Bank of Punjab and Syndicate
Bank. IFCI notched up good gains for the second day, closing
over 7 per cent higher. NOCIL, KLG Systel and Salora International
 were
among the best performing stocks among mid-caps. United
Western Bank, Wartsila and Sandesh 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
|
7,346.63
|
-
0.47 |
| NIFTY
|
2,237.30
|
+
3.30 |
Last
Update : 19 July, 2005, 16:13 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| ASSOCIATED
CEMENT COMPANIES LT |
427.95
|
446.90
|
425.00
|
443.15 |
| BHEL
|
903.05
|
926.00
|
903.05
|
921.10 |
| TATA
IRON AND STEEL CO. LTD. |
365.00
|
370.95
|
361.00
|
369.80 |
| HDFC
BANK LT |
634.00
|
639.95
|
633.15
|
639.00 |
| TATA
MOTORS |
465.10
|
477.50
|
463.80
|
476.05 |
| GUJARAT
AMBUJA CEMENTS LTD. |
61.50
|
62.10
|
60.50
|
61.75 |
| MARUTI
UDYOG |
455.00
|
459.75
|
452.00
|
458.10 |
| HOUSING
DEVELOPMENT FINANCE CO |
891.00
|
904.95
|
880.00
|
899.80 |
| STATE
BANK OF INDIA |
720.00
|
728.00
|
717.80
|
721.00 |
| RELIANCE*
|
663.00
|
671.10
|
661.25
|
664.80 |
| WIPRO
LTD. |
710.45
|
719.85
|
710.00
|
713.55 |
| SATYAM
COMP |
422.00
|
504.00
|
422.00
|
497.75 |
| DR.REDDY'S
LABORATORIES LTD. |
757.00
|
766.00
|
750.00
|
760.30 |
| GRASIM
INDUSTRIES LTD. |
1,140.00
|
1,159.00
|
1,125.40
|
1,140.00 |
| HINDUSTAN
LEVER LTD. |
161.00
|
162.45
|
159.25
|
159.80 |
| CIPLA
LTD. |
334.90
|
336.75
|
331.00
|
333.10 |
| HEROHONDA
M |
651.00
|
654.00
|
629.00
|
635.75 |
| I
T C LTD |
1,749.90
|
1,749.90
|
1,689.95
|
1,695.95 |
| TATA
POWER |
404.40
|
406.00
|
395.55
|
397.50 |
| RELIANCE
ENR |
664.00
|
671.95
|
645.55
|
650.40 |
| BHARTI
TELE |
257.00
|
260.00
|
254.00
|
254.90 |
| BAJAJ
AUTO |
1,405.00
|
1,430.00
|
1,396.35
|
1,409.95 |
| ICICI
BANK L |
445.00
|
447.45
|
437.25
|
440.65 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,282.00
|
2,289.90
|
2,250.10
|
2,257.85 |
| RANBAXY
LABORATORIES LTD. |
1,054.00
|
1,059.00
|
1,040.00
|
1,045.70 |
| LARSEN
& TOUBRO LTD. |
1,288.00
|
1,295.00
|
1,276.05
|
1,285.80 |
| HINDALCO
IN |
1,250.00
|
1,254.90
|
1,239.00
|
1,241.40 |
| TCS
LTD |
1,320.00
|
1,341.00
|
1,310.00
|
1,317.15 |
| ONG
CORP LTD |
922.00
|
925.00
|
914.00
|
916.20 |
Last
Update : 19 July, 2005, 16:02PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
664.00
|
671.80
|
661.10
|
664.65 |
| VSNL |
340.10 |
353.90
|
339.25
|
350.25 |
| INFOSYSTCH
|
2272.00
|
2280.00
|
2250.00
|
2256.40 |
| TISCO
|
364.45
|
371.45
|
361.15
|
369.70 |
| REL
|
665.00
|
675.00
|
645.10
|
650.50 |
| SATYAMCOMP
|
499.00
|
502.70
|
495.50
|
497.70 |
| ONGC
|
922.00
|
925.00
|
914.25
|
917.95 |
| SBIN
|
719.00
|
727.80
|
717.30
|
721.50 |
| ITC
|
1753.00
|
1753.00
|
1685.00
|
1698.55 |
| TCS
|
1348.40
|
1358.00
|
1260.00
|
1319.15 |
| TATAMOTORS
|
469.90
|
478.10
|
463.30
|
476.75 |
| ACC |
430.00 |
445.40
|
415.00
|
443.05 |
| HINDLEVER
|
160.90
|
162.30
|
159.50
|
159.90 |
| HEROHONDA
|
655.10
|
655.10
|
629.00
|
638.35 |
| HDFC |
900.00 |
905.00
|
885.00
|
900.45 |
| ZEETELE
|
175.95
|
180.00
|
172.50
|
175.70 |
| LT
|
1285.00
|
1298.00
|
1276.25
|
1288.00 |
| WIPRO
|
718.80
|
718.80
|
710.35
|
714.55 |
| SAIL
|
52.10
|
52.90
|
51.65
|
52.55 |
| M&M
|
600.00
|
612.00
|
597.40
|
609.85 |
| PNB
|
400.00
|
404.00
|
399.05
|
400.20 |
| IPCL
|
188.90
|
189.30
|
185.05
|
186.80 |
| MARUTI
|
453.40
|
459.90
|
452.25
|
458.15 |
| RANBAXY
|
1058.00
|
1069.00
|
1038.00
|
1046.95 |
| ORIENTBANK
|
260.00
|
264.45
|
258.40
|
263.45 |
| MTNL
|
134.75
|
137.70
|
133.40
|
137.20 |
| HCLTECH
|
386.00
|
392.50
|
382.00
|
387.10 |
| BHEL
|
903.00
|
925.90
|
903.00
|
921.40 |
| GUJAMBCEM
|
61.10
|
62.20
|
60.50
|
61.70 |
| HDFCBANK
|
635.00
|
640.00
|
631.40
|
639.75 |
| GRASIM
|
1140.00
|
1154.80
|
1117.00
|
1140.15 |
| BAJAJAUTO
|
1425.00
|
1430.00
|
1240.00
|
1404.15 |
| CIPLA
|
335.00
|
336.20
|
331.00
|
334.75 |
| BHARTI
|
257.00
|
260.00
|
254.05
|
254.90 |
| GAIL
|
215.05
|
217.80
|
215.00
|
217.20 |
| TATAPOWER
|
403.00
|
407.90
|
395.00
|
397.25 |
| TATACHEM
|
195.80
|
195.80
|
185.55
|
186.70 |
| ICICIBANK
|
446.00
|
447.60
|
430.00
|
440.70 |
| HINDPETRO
|
301.25
|
303.00
|
300.00
|
302.20 |
| NATIONALUM
|
157.20
|
157.20
|
152.45
|
155.20 |
| SUNPHARMA
|
614.80
|
632.00
|
606.10
|
628.35 |
| DRREDDY
|
760.00
|
767.10
|
758.00
|
761.50 |
| TATATEA
|
675.00
|
676.10
|
652.15
|
656.60 |
| ABB
|
1520.00
|
1535.00
|
1501.00
|
1509.60 |
| BPCL
|
343.20
|
346.45
|
342.75
|
344.35 |
| SCI
|
147.75
|
148.50
|
145.30
|
146.85 |
| HINDALC0
|
1250.00
|
1255.00
|
1238.20
|
1241.00 |
| DABUR
|
142.50
|
143.45
|
140.55
|
141.15 |
| COLGATE
|
244.00
|
244.65
|
239.25
|
243.30 |
| GLAXO
|
878.00
|
878.00
|
853.20
|
866.65 |
Last
Update : 19 July, 2005, 16:00PM
|
