|
The markets started the day retaining all the strength
it exhibited yesterday and the sensex breezed past the
7800 mark without much delay. Strength in technology stocks
like Satyam, TCS and Infosys along with other frontline
stocks like ITC helped the indices early in the day.
However, the markets were disappointed by the absence
of any big announcement at the Reliance AGM. Speculation
was rife about the announcement of some big ticket overseas
acquisitions by Reliance.
The sell-off in Reliance saw the indices sliding and giving
up all their gains. They slipped into the red briefly,
only to recover immediately. The markets remained choppy
till early afternoon before regaining some strength later
in the afternoon.
The last one hour saw another slide in the indices which
took them very close to negative territory. The indices
closed the day at these levels.
Sensex closed flat at 7756 and the Nifty at 2357, a gain
of 3 points. Nifty August futures discount to the spot
index widened to 14 points from yesterday's 6 points.
HCL Technology, Satyam Computers and L&T were among
the major gainers among Nifty stocks while Reliance Industries,
Zee Tele and Tata Motors were the major losers.
Strong economic data and expectations of good corporate
performance helped the US indices to close with gains
yesterday, despite strong oil prices. Both personal income
and personal spending expanded more than expected during
the month of June.
The Dow Jones index and S&P 500 gained well over half-a-per
cent each while NASDAQ gained over a per cent yesterday.
After opening weak, Crude oil futures for September delivery
gained half-a-per cent on the NYMEX to close at a new
lifetime closing high of $61.89 to a barrel. The smooth
transition of power in Saudi Arabia after the death of
the king helped to reduce supply concerns and had led
to the weakness earlier in the day.
Crude is very close to the record high of $62.3 per barrel
in early European trades today. Expectations of a heavy
hurricane season in the Gulf of Mexico and a drop in weekly
US crude inventories are pushing up prices.
Indian ADR's generally had a good day yesterday as some
of them surged on buying interest. Satyam led the technology
pack with gains of well over 5 per cent. Infosys also
managed to close with gains of over a per cent. Tata Motors
and HDFC Bank were among the significant gainers among
other stocks. ICICI Bank and VSNL closed the day with
losses.
Reliance Industries has decided to de-merge its holdings
in Reliance Energy, Reliance Infocomm and Reliance Capital
into separate holding companies. Shareholders of the company
would be allotted shares in each of these holding companies
on a proportional basis.
Finer
details of the de-merger scheme are yet to be worked out
and Reliance Industries has appointed a team of financial
advisors to finalise the scheme. It is also not clear
as to how the control of the three de-merged entities
would be transferred to Anil Ambani as per the settlement
between the brothers.
Reliance
Industries has confirmed that it will increase the capacity
of its Jamnagar refinery to 60-million tonnes per annum
over the next five years. Once the expansion at an expected
cost of Rs25,000 crore is completed, The refinery will
be one of the world's largest single location refineries.
Reliance
also confirmed that it is looking at overseas acquisition
opportunities in the petrochemicals space. There is market
speculation that Reliance may pick up a large stake in
German petrochemical giant Basel. Purnendu Chatterjee
and Haldia Petrochemicals are believed to have exited
the consortium which won the bid for Basel. Reliance would
step in for The Chatterjee group according to reports.
All
these news flows could not hold the stock price of Reliance
today as it gave up most of the gains made yesterday.
The stock closed well over 3 per cent lower and the market
cap also came down below Rs1 lakh crore.
Global
ERP software major Oracle would acquire a majority stake
in banking software company I-Flex Solutions. Oracle has
acquired the 41 per cent stake held by Citigroup Venture
Capital for $593 million. An open offer would be made
for an additional 20 per cent stake at Rs882.6 per share.
Including the open offer, the total acquisition cost is
expected to cross $900 million.
The
acquisition would give Oracle a major entry into the lucrative
banking software segment. I-Flex is one of the fastest
growing companies in core banking solutions and is ranked
within the top 20 vendors in terms of number of installations.
Its product has been selected as one of the best core
banking suit for the last few years.
Oracle
has stated that I-Flex would continue to remain as an
independent company under the present management even
after the acquisition. The company would also remain listed
on both NSE and BSE. The stock closed well above the indicated
open offer price at Rs920.
Tata
Motors expects growth in the passenger car market to slow
down to around 8 per cent in the current year as high
percentage growth on last year's higher base would be
difficult. The company launched an upgraded version of
its SUV model. The stock closed over 3 per cent lower.
Ranbaxy
has received tentative approval from US FDA for Sumatriptan
Succinate used for the treatment of migraine headaches.
The drug had annual sales of over $850 million in the
US. The stock closed lower.
The
Central Electricity Regulatory Commission has rejected
Reliance Energy's bid to enter the power transmission
business. The company had sought permission to build a
transmission network in Western India. The company had
received lot of criticism for its inability to restore
power supply after the rains in Mumbai. The company announced
a Rs100-crore disaster management system for Mumbai yesterday.
The stock lost over a per cent.
Infosys
would invest up to $10 million over the next two years
to expand its Chinese operations. The company is planning
to increase the manpower to 1,000 over this period from
the current 250. The stock closed over 2 per cent higher.
Neyveli
Lignite would set up a 2,000mw-coal based power plant
in the state of Orissa at a cost of Rs8,000 crore.
Mid-Cap
Action
Mid-caps
as a segment remained subdued throughout the day though
stock specific action was seen all around. The CNX Mid-Cap
100 index closed the day at 3489, a gain of 2 points.
Khazanah
Investments, the investment arm of the government of Malaysia,
has picked up a 13 per cent stake in Apollo Hospitals.
Pharma
company Lupin has doubled its first quarter profits as
compared to the same quarter of previous year. Total revenues
for the quarter were higher by 24 per cent. The stock
closed with gains of 4 per cent.
July
sales volumes of commercial vehicles manufacturer Eicher
Motors was higher by 7 per cent. The company saw a healthy
growth of close to 20 per cent in the heavy vehicles segment
during the month.
Orchid
Chemicals has received US FDA approval for a generic version
of an injectable cephalosporin antibiotic. The company
has already tied-up with a US company for selling the
newly approved drug which had sales of $700 million per
annum.
Mid-cap
software company Vakrangee Software reported a
five-fold increase in first quarter profits on
a revenue growth of 30 per cent as compared to the same
quarter of previous year.
Construction
company Era Constructions has won contracts to build speciality
malls in the state of Punjab. The contracts are reportedly
worth over Rs24 crore.
The
board of directors of Jindal Saw has decided to raise
up to $75 million from an overseas issue of GDR's or FCCB's
and an additional Rs100 crore from private placement of
non-convertible preference shares.
Atul
Products, Sirpur Paper and Balmer Lawrie were among the
best performing stocks among mid-caps.
Surya
Pharma, Apar Industries and Phillips Carbon Black 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
|
7,756.47
|
+0.43
|
| NIFTY
|
2,357.00
|
+3.35
|
Last
Update : 3 August, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| LARSEN
& TOUBRO LTD. |
1,259.40
|
1,306.25
|
1,250.00
|
1,291.55 |
| SATYAM
COMP |
531.10
|
550.90
|
529.00
|
544.25 |
| BAJAJ
AUTO |
1,470.00
|
1,548.90
|
1,463.00
|
1,515.10 |
| I
T C LTD |
1,675.00
|
1,744.85
|
1,675.00
|
1,713.85 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,325.00
|
2,365.00
|
2,299.00
|
2,357.10 |
| HINDALCO
IN |
1,299.85
|
1,323.00
|
1,285.00
|
1,311.85 |
| GRASIM
INDUSTRIES LTD. |
1,172.05
|
1,197.40
|
1,172.00
|
1,194.30 |
| HDFC
BANK LT |
674.90
|
684.75
|
670.65
|
675.80 |
| DR.REDDY'S
LABORATORIES LTD. |
849.00 |
862.00
|
845.00
|
854.60 |
| STATE
BANK OF INDIA |
805.00
|
821.40
|
803.65
|
811.50 |
| ONG
CORP LTD |
958.00
|
972.95
|
951.15
|
965.50 |
| BHEL
|
1,006.00
|
1,026.40
|
1,006.00
|
1,021.35 |
| TCS
LTD |
1,305.00
|
1,308.75
|
1,283.00
|
1,300.45 |
| WIPRO
LTD. |
730.00
|
739.00
|
727.00
|
729.30 |
| MARUTI
UDYOG |
499.00
|
508.90
|
492.00
|
500.40 |
| RELIANCE*
|
741.00
|
760.00
|
710.00
|
713.70 |
| TATA
MOTORS |
528.00
|
528.00
|
507.25
|
509.50 |
| GUJARAT
AMBUJA CEMENTS LTD. |
67.50
|
68.00
|
65.20
|
65.65 |
| HINDUSTAN
LEVER LTD. |
172.50
|
173.00
|
166.55
|
167.45 |
| NTPC
LTD |
99.45
|
99.50
|
96.10
|
96.80 |
| ASSOCIATED
CEMENT COMPANIES LT |
444.95
|
446.70
|
431.15
|
433.75 |
| RELIANCE
ENR |
645.00
|
654.00
|
628.10
|
632.15 |
| TATA
IRON AND STEEL CO. LTD. |
374.10
|
379.80
|
365.15
|
368.10 |
| RANBAXY
LABORATORIES LTD. |
509.90
|
514.35
|
499.25
|
500.95 |
| HEROHONDA
M |
635.00
|
637.30
|
620.15
|
622.55 |
| BHARTI
TELE |
288.50
|
288.50
|
281.00
|
283.80 |
| TATA
POWER |
412.00
|
416.50
|
404.00
|
405.80 |
| CIPLA
LTD. |
340.00
|
340.00
|
334.00
|
336.05 |
| ICICI
BANK L |
521.00
|
530.00
|
514.30
|
517.40 |
| HOUSING
DEVELOPMENT FINANCE CO |
933.00
|
933.00
|
917.20
|
926.25 |
Last
Update : 3 August, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
759.80
|
759.90
|
710.65
|
714.50 |
| INFOSYSTCH
|
2310.00
|
2365.00
|
2310.00
|
2356.05 |
| SATYAMCOMP
|
528.00
|
555.00
|
528.00
|
544.45 |
| SBIN
|
807.00
|
821.00
|
804.00
|
810.55 |
| VSNL
|
424.70
|
426.90
|
409.05
|
412.35 |
| ONGC
|
957.25
|
973.50
|
950.35
|
967.15 |
| TATAMOTORS
|
527.00
|
527.90
|
506.20
|
510.60 |
| TISCO
|
376.00
|
381.50
|
365.85
|
369.05 |
| ITC
|
1700.00
|
1745.00
|
1683.00
|
1718.55 |
| TCS
|
1297.50
|
1307.40
|
1283.00
|
1300.75 |
| IPCL
|
200.00
|
203.35
|
193.05
|
194.55 |
| MARUTI
|
500.00
|
508.50
|
491.80
|
500.45 |
| M&M
|
680.00
|
707.90
|
680.00
|
692.10 |
| GAIL
|
237.05
|
242.80
|
229.50
|
234.70 |
| SAIL
|
53.35
|
55.00
|
53.05
|
54.45 |
| ZEETELE
|
183.00
|
186.95
|
174.50
|
175.85 |
| HDFC |
930.00 |
932.00
|
918.00
|
927.45 |
| REL
|
648.00
|
654.90
|
630.40
|
633.75 |
| PNB
|
441.00
|
442.90
|
423.00
|
426.40 |
| HINDLEVER
|
171.95
|
173.20
|
167.15
|
167.85 |
| BAJAJAUTO
|
1456.00
|
1548.00
|
1456.00
|
1514.70 |
| RANBAXY
|
511.95
|
514.00
|
500.00
|
501.55 |
| HDFCBANK
|
671.10
|
689.00
|
670.00
|
676.75 |
| ICICIBANK
|
521.05
|
529.80
|
520.10
|
522.65 |
| WIPRO
|
733.00
|
739.00
|
728.00
|
731.90 |
| HCLTECH
|
425.15
|
450.00
|
425.15
|
446.05 |
| LT
|
1255.10
|
1305.00
|
1250.00
|
1291.35 |
| BHARTI
|
288.80
|
288.80
|
280.25
|
283.60 |
| HINDALC0
|
1300.00
|
1321.90
|
1284.00
|
1311.55 |
| ACC
|
444.00
|
447.30
|
432.35
|
435.30 |
| DRREDDY
|
846.00
|
862.00
|
843.15
|
852.95 |
| NATIONALUM
|
163.80
|
164.85
|
160.00
|
162.50 |
| ORIENTBANK
|
279.90
|
284.60
|
272.00
|
274.40 |
| GUJAMBCEM
|
67.00
|
67.90
|
65.25
|
65.65 |
| HINDPETRO
|
310.00
|
313.90
|
303.00
|
303.95 |
| BHEL
|
1016.00
|
1025.85
|
1010.35
|
1020.80 |
| GRASIM
|
1197.00
|
1197.40
|
1167.05
|
1195.40 |
| CIPLA
|
339.00
|
339.95
|
334.60
|
338.35 |
| TATACHEM
|
186.50
|
190.10
|
183.00
|
186.65 |
| TATAPOWER
|
412.00
|
416.75
|
405.00
|
406.90 |
| BPCL
|
387.40
|
394.00
|
376.10
|
387.10 |
| MTNL
|
132.00
|
133.25
|
130.00
|
130.65 |
| TATATEA
|
697.95
|
703.00
|
671.10
|
697.65 |
| HEROHONDA
|
632.00
|
638.00
|
622.50
|
626.95 |
| GLAXO
|
899.00
|
899.00
|
882.10
|
890.50 |
| DABUR
|
150.00
|
153.90
|
149.00
|
151.45 |
| SUNPHARMA
|
625.00
|
625.00
|
612.00
|
620.60 |
| ABB
|
1505.00
|
1568.90
|
1485.00
|
1537.90 |
| SCI
|
150.35
|
150.50
|
146.10
|
146.90 |
| COLGATE
|
241.35
|
245.00
|
235.15
|
237.30 |
Last
Update : 3 August, 2005, 16:00PM
| 
