|
The morning after the announcement of the much-awaited
Reliance de-merger details was celebration time for the
markets and the Sensex went past the 7800 mark for the
second time in two days. Helped by strong gains in Reliance
Industries, the indices opened the day with a large positive
gap.
Lack of buying support and weakness in select frontline
stocks pulled down the indices from their highs and the
markets traded within a band till early afternoon. Weakness
in technology and banking stocks led to a sharp decline
in the indices and they slipped into the red later in
the afternoon.
Strong buying in engineering and steel stocks helped the
markets to recover soon after. The recovery lasted till
the close of day and the indices managed to close near
the day's highs.
Sensex closed at 7797, a gain of 40 points, and the Nifty
at 2368, a gain of 11 points. Nifty August futures discount
to the spot index narrowed to 8 points from yesterday's
14 points.
L&T, BHEL and VSNL were among the major gainers among
Nifty stocks while BPCL, Infosys and ICICI Bank were the
major losers.
US markets closed on a flat note yesterday as the weak
sentiment from poor corporate results were balanced by
the decline in crude prices. The Dow Jones index closed
with marginal gains while S&P 500 and NASDAQ closed
the day almost unchanged.
After surging to a record high of $62.5 per barrel yesterday,
crude futures lost close to 2 per cent and closed at $60.86
on the NYMEX.
Indian ADR's generally had a good day yesterday with the
technology stocks leading the way. Infosys closed with
gains of 3 per cent while Wipro and Satyam also closed
in the positive. ICICI Bank, HDFC Bank, Dr Reddy's and
MTNL were the other gainers. VSNL was the biggest loser,
closing over 6 per cent lower. Tata Motors lost close
to 3 per cent.
Though Reliance Industries management did not give the
details of the de-merger at yesterday's AGM and left it
to a team of financial and legal advisors, Anil Ambani
gave the details the world wanted to know at a press meet
later in the day.
According to Anil Ambani, Reliance Industries shareholders
would get five shares of Reliance Capital and seven shares
of Reliance Energy for every 100 shares held by them.
Anil Ambani would also form two holding companies —
Reliance Communication Ventures and Global Fuel Management.
The former would be the holding company for all telecom
ventures of the Anil Ambani group including Reliance Infocomm;
the latter would hold contracts with Reliance Industries
for supply of natural gas. Reliance Industries shareholders
would get one share in each of these holding companies
for every share held by them.
The de-merger plan led to a rebound in Reliance Industries
stock price today, which had lost over 3 per cent yesterday.
The company has informed that its board would meet tomorrow
to discuss the de-merger plan. Reliance Capital gained
almost 7 per cent.
Tata Steel surged over 4 per cent after the company said
production was higher by 18 per cent during the month
of July. The company was able to increase the output after
the commissioning of a new 1-million tonne plant recently.
The company had reported lower production and sales volumes
during the first quarter ended June 2005.
Tata
Steel has placed the order for a new 2.5-million tonne
blast furnace with a consortium led by engineering major
L&T. Tata Steel had also ordered a 2-million tonne
capacity sinter plant from L&T recently.
The
strength in Tata Steel led to a surge in other steel and
metal stocks as well. SAIL closed the day with gains of
over 3 per cent while Nalco closed over 2 per cent higher.
The
new orders attracted significant buying interest in the
L&T counter, which surged by over 5 per cent to a
new lifetime high. The stock had gained close to 4 per
cent yesterday as well.
Other
engineering stocks like BHEL, ABB and Siemens also saw
substantial buying interest. BHEL closed the day with
gains of over 5 per cent while ABB closed 2 per cent higher.
The
substantial decline in its ADR prices yesterday did not
dampen the buying interest in VSNL. The stock surged over
5 per cent.
Mid-Cap
Action
Mid-caps
outshone the frontline stocks by a good margin as momentum
stocks in the mid-cap space were back in action. The CNX
Mid-Cap 100 index closed the day at a new lifetime high
at 3525, a gain of 36 points or over a per cent.
India
Bulls, one of the most active stocks in mid-caps, lost
over 5 per cent after the company priced its second GDR
issue at a discount to yesterday's closing price on the
domestic exchanges. The company priced its GDR at $5.42
or around Rs235 per share.
India
Bulls has aggressive plans to grow in the retail finance
business. The company believes that, despite the efforts
of commercial banks the retail finance sector in the country
largely remain in the unorganised sector. The company
is planning to address this by expanding its network throughout
the country.
Sugar
stocks saw all-round buying on hopes of the current uptrend
in sugar prices sustaining over the medium term. The decision
by the government of Pakistan to allow imports of Indian
sugar and the transportation problems because of heavy
monsoons had led to a firming up of sugar futures in the
commodity exchanges.
Spanco
Telesystems, a leading player in the domestic call centre
business, surged over 6 per cent after the company announced
a new order from BSNL. The multi-year order for handling
customer queries is reportedly worth Rs80 crore.
Solectron
Centum, a manufacturer of electronic components, lost
over 3 per cent for the second day. The company's first
quarter profits more than halved even as revenues were
higher by 20 per cent as compared to the same quarter
of previous year.
Multiplex
operator Shringar Cinema closed at a lifetime high locked
in the 20 per cent upper circuit. The company had reported
a sharp 70 per cent increase in revenues for the first
quarter and turned in a marginal profit at the operating
level. Losses at the net level more than halved during
the quarter as compared to the same quarter of previous
year.
Small-cap
software company Four Soft closed the day with gains of
over 7 per cent after the announcement that the company
has identified an acquisition target in Europe. The company
has also decided to make a preferential allotment at a
20 per cent discount to the current market price.
Irrigation
equipment manufacturer Jain Irrigation surged over 5 per
cent after the company's board proposed a preferential
issue to the promoters. The board has also proposed to
raise the FII investment limit in the company to 49 per
cent from 24 per cent.
 Geodesic
Info, Cinevistas and Strides Arcolab were among the best
performing stocks among mid-caps.
Hindustan
Dorr Oliver, Calsoft and Lakshmi Machine Works 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
|
7,797.71
|
+
41.24 |
| NIFTY
|
2,369.10
|
+
12.10 |
Last
Update : 4 August, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| LARSEN
& TOUBRO LTD. |
1,296.00
|
1,374.80
|
1,294.00
|
1,364.80 |
| BHEL
|
1,025.00
|
1,087.00
|
1,022.10
|
1,076.65 |
| TATA
IRON AND STEEL CO. LTD. |
368.00
|
386.50
|
368.00
|
383.85 |
| RANBAXY
LABORATORIES LTD. |
504.90
|
515.00
|
503.00
|
512.05 |
| RELIANCE*
|
724.80
|
749.00
|
720.65
|
729.00 |
| HINDALCO
IN |
1,321.95
|
1,335.00
|
1,315.50
|
1,333.10 |
| GRASIM
INDUSTRIES LTD. |
1,185.50 |
1,220.00
|
1,184.00
|
1,213.40 |
| I
T C LTD |
1,730.00
|
1,740.00
|
1,723.00
|
1,736.25 |
| ASSOCIATED
CEMENT COMPANIES LT |
437.00
|
442.45
|
433.30
|
439.40 |
| HEROHONDA
M |
628.00
|
632.00
|
623.00
|
630.55 |
| HDFC
BANK LT |
675.00
|
688.00
|
675.00
|
684.15 |
| BAJAJ
AUTO |
1,468.00
|
1,548.05
|
1,455.00
|
1,532.65 |
| RELIANCE
ENR |
635.00
|
652.00
|
630.05
|
638.65 |
| TATA
POWER |
409.90
|
411.00
|
403.05
|
408.40 |
| CIPLA
LTD. |
335.00
|
339.95
|
335.00
|
336.90 |
| WIPRO
LTD. |
730.00
|
738.00
|
725.25
|
730.95 |
| GUJARAT
AMBUJA CEMENTS LTD. |
65.70
|
66.75
|
65.20
|
65.75 |
| BHARTI
TELE |
286.50
|
288.90
|
279.90
|
284.00 |
| HINDUSTAN
LEVER LTD. |
168.00
|
169.40
|
167.00
|
167.50 |
| MARUTI
UDYOG |
500.00
|
506.00
|
497.45
|
500.50 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,371.00
|
2,389.00
|
2,302.15
|
2,312.15 |
| TATA
MOTORS |
512.00
|
516.65
|
500.00
|
501.75 |
| DR.REDDY'S
LABORATORIES LTD. |
851.00
|
859.50
|
840.10
|
844.60 |
| ONG
CORP LTD |
968.00
|
977.00
|
946.00
|
955.70 |
| HOUSING
DEVELOPMENT FINANCE CO |
926.00
|
926.00
|
908.05
|
918.05 |
| SATYAM
COMP |
546.00
|
549.50
|
531.25
|
539.85 |
| NTPC
LTD |
99.00
|
99.00
|
95.70
|
96.05 |
| ICICI
BANK L |
515.00
|
519.80
|
510.00
|
513.45 |
| STATE
BANK OF INDIA |
814.00
|
816.95
|
803.00
|
807.45 |
| TCS
LTD |
1,320.00
|
1,320.00
|
1,289.00
|
1,294.60 |
Last
Update : 4 August, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
717.00
|
755.65
|
717.00
|
729.20 |
| VSNL
|
404.00
|
436.90
|
401.80
|
433.05 |
| TISCO
|
369.50
|
385.90
|
369.00
|
383.10 |
| INFOSYSTCH
|
2365.00
|
2382.00
|
2303.30
|
2313.50 |
| TATAMOTORS
|
506.20
|
516.90
|
499.35
|
501.65 |
| SBIN
|
813.65
|
816.45
|
803.00
|
808.45 |
| ONGC
|
970.00
|
975.85
|
945.60
|
956.95 |
| SATYAMCOMP
|
548.00
|
549.70
|
531.45
|
539.55 |
| SAIL
|
55.00
|
57.05
|
54.90
|
56.30 |
| TCS
|
1305.00
|
1319.80
|
1288.00
|
1295.25 |
| REL |
639.90 |
651.90
|
631.05
|
639.55 |
| ZEETELE
|
176.00
|
179.60
|
173.00
|
174.40 |
| LT
|
1289.75
|
1374.00
|
1289.75
|
1363.30 |
| MARUTI
|
500.30
|
504.95
|
496.00
|
500.65 |
| ITC
|
1745.00
|
1770.00
|
1717.75
|
1736.05 |
| HCLTECH
|
448.00
|
452.00
|
439.00
|
449.25 |
| BAJAJAUTO
|
1516.70
|
1541.00
|
1495.10
|
1527.15 |
| IPCL
|
200.00
|
200.00
|
194.10
|
195.10 |
| GAIL
|
236.80
|
241.00
|
234.05
|
239.50 |
| BHEL
|
1025.85
|
1086.90
|
1023.20
|
1077.15 |
| BHARTI
|
284.10
|
288.00
|
279.55
|
284.20 |
| PNB
|
427.50
|
434.00
|
425.55
|
429.45 |
| HINDLEVER
|
171.50
|
171.50
|
167.00
|
167.50 |
| ICICIBANK
|
520.10
|
520.10
|
510.50
|
513.30 |
| RANBAXY
|
505.00
|
515.25
|
503.00
|
512.10 |
| M&M
|
695.70
|
695.70
|
681.00
|
682.85 |
| HINDALC0
|
1290.00
|
1335.00
|
1290.00
|
1333.70 |
| WIPRO
|
737.00
|
739.00
|
725.00
|
731.60 |
| ACC |
437.00 |
443.40
|
433.05
|
441.05 |
| HDFC
|
918.00
|
925.65
|
905.00
|
918.20 |
| GRASIM
|
1180.05
|
1215.00
|
1180.05
|
1211.50 |
| GUJAMBCEM
|
65.50
|
66.75
|
65.10
|
65.80 |
| NATIONALUM
|
164.00
|
167.25
|
161.70
|
166.70 |
| SCI
|
148.00
|
151.90
|
145.00
|
150.90 |
| TATACHEM
|
185.50
|
190.90
|
185.50
|
189.15 |
| HINDPETRO
|
304.00
|
308.00
|
301.15
|
304.70 |
| HDFCBANK
|
740.00
|
740.00
|
677.00
|
684.50 |
| MTNL
|
131.05
|
133.45
|
130.00
|
131.75 |
| DABUR
|
153.55
|
155.90
|
153.00
|
154.05 |
| TATATEA
|
707.00
|
710.70
|
691.00
|
707.15 |
| ORIENTBANK
|
278.00
|
278.00
|
273.05
|
276.10 |
| TATAPOWER
|
408.00
|
411.90
|
399.95
|
408.35 |
| CIPLA
|
339.00
|
339.00
|
335.75
|
337.20 |
| BPCL
|
387.00
|
387.00
|
371.25
|
373.60 |
| HEROHONDA
|
629.90
|
632.70
|
620.00
|
630.65 |
| SUNPHARMA
|
616.15
|
634.75
|
613.00
|
620.65 |
| GLAXO
|
874.00
|
924.90
|
874.00
|
910.40 |
| ABB
|
1548.10
|
1589.00
|
1524.00
|
1570.00 |
| DRREDDY
|
855.00
|
856.00
|
842.00
|
846.55 |
| COLGATE
|
237.30
|
241.90
|
236.00
|
239.80 |
Last
Update : 4 August, 2005, 16:00PM
|
