|
Finally the day of the big correction arrived to remind
traders that it is also possible for the indices to lose
substantially. The decline pulled down most of the momentum
stars among frontline stocks.
The indices opened the day on a dull, flat note, as most
traders were unsure of the direction after Friday's marginal
decline. The indices gained some ground in morning trades
before starting the daylong decline.
The sell off gathered momentum within an hour of opening
and the brief attempt to stabilise around mid-day failed
by late afternoon. After another sharp decline in late
afternoon trades, indices were range bound during the
closing half hour.
Bank stocks were among the heavy losers and the bank index
was the biggest loser among sectoral indices. ICICI Bank
lost over 4 per cent, SBI lost over 3 per cent and HDFC
Bank closed over 2 per cent lower. PNB lost close to 5
per cent.
Among the technology stocks, Infosys lost a per cent while
Wipro and Satyam lost over 2 per cent each.
Sensex closed at 7606, a loss of 148 points, and the Nifty
at 2324, a loss of 37 points. Nifty August futures discount
to the spot index narrowed marginally to 9 points from
Friday's 10 points.
SAIL, Tata Tea and ONGC were among the major gainers among
Nifty stocks while PNB, Tata Motors and ICICI Bank were
the major losers.
Reliance Industries has made yet another significant gas
find, this time in the state of Madhya Pradesh. For the
first time, the company has discovered gas at a coal bed
methane (CBM) block.
The in-place reserves have been certified by the Director
General of Hydrocarbons at 3.75 trillion cubic feet. Recoverable
reserves have not been estimated so far and the company
is drilling more exploratory wells in the block. The stock
lost close to 2 per cent.
Tata Motors was among the biggest losers in frontline
stocks after the company reported disappointing sales
volumes for the month of July. Passenger vehicle sales
for the month was lower by over 15 per cent as compared
to last year. The company attributed the decline in sales
to the heavy rains in the states of Maharashtra and Gujarat.
Overall sales of Tata Motors were higher by close to 4
per cent helped by a 13 per cent increase in commercial
vehicle sales. The surge in exports at 170 per cent for
the month also helped the company. The stock lost close
to 5 per cent.
Bharti Televentures has decided to outsource its call
centre operations to third party vendors including Hinduja
TMT and Mphasis. Bharti was trading firm in early trades
before losing ground and closing lower. The 3-year deal
is reportedly worth $230 million. The stock closed a per
cent lower after trading firm in early trades.
Shareholders
of Hindalco have approved the proposal to split the company's
equity shares. Every Rs10 share would be split into 10
shares of Re1 each. The stock was trading with gains of
a per cent in early trades before losing close to a per
cent.
The
first signs of Q1 losses affecting the investment plans
of PSU oil companies are visible, with BPCL reportedly
having a rethink on its investment plans. BPCL had lined
up Rs1,600 crore of investments during the current year
including Rs600 crore for expansion of its retail network.
Tata
group company VSNL has reportedly offered part of its
under sea cable network for purchase or dedicated lease
to PSU telecom company BSNL. The PSU company had plans
to set up its own under sea cable network and the VSNL
move is seen as a move to pre-empt such plans.
VSNL,
which used to be the monopoly international telecom carrier,
had lost part of its business after BSNL roped in other
providers like Reliance and Bharti. The stock lost close
to 4 per cent today.
Mid-Cap
Action
Mid-caps
could not escape the sell off though losses on the mid-cap
index were lower than the frontline indices. The CNX Mid-Cap
100 index opened firm and surged to a new high before
giving up and closing the day at 3515, a loss 38 points.
Telecom
equipment manufacturing company HFCL surged over 14 per
cent after the company said its board would meet to consider
raising additional resources through preferential issues,
private placement, GDR, FCCB etc.
Hindustan
Motors gained on reports that Mitsubishi Motors of Japan
would launch more models of passenger vehicles through
the company. Apart from a premium sedan, HM may also launch
sports utility vehicles and mini vans.
Farm
equipment manufacturer Eicher Limited lost over 5 per
cent after the company reported disappointing results
for the quarter ended June '05. Losses more than doubled
to Rs57 crore as revenues declined by 3 per cent for the
quarter as compared to the same quarter of previous year.
Pharma
company Lupin has entered into a tie up with a Japanese
company to market finished formulations in that country.
While Lupin would undertake product development and manufacture,
the Japanese partner would look after regulatory approvals
and marketing in Japan.
Bajaj
Hindustan, the largest player in the sugar industry, gained
over 5 per cent in early trades after reports that RBI
has allowed further FII buying in the stock. The company
had hiked the FII investment ceiling from 24 per cent
to 49 per cent.
Speciality
pipes manufacturer Man Industries reported an 80 per cent
increase in first quarter profits as compared to the same
quarter of previous year. Revenues were higher by over
140 per cent.
Simplex
Concrete Piles gained in early trades after the company
said it will make a preferential allotment to a Mauritius
based investor.
Torrent
Pharma gained after the company announced that it would
set up a dedicated insulin formulation and packaging facility
for Novo Nordisk of Denmark.
There
are reports that IFGL Refractories would buy two overseas
companies with operations in US, Brazil, Taiwan and China.
Riddhi
Siddhi Gluco Biols has signed an agreement with HLL to
buy the latter's starch manufacturing unit in the state
of Pondicherry.
 Nelco,
Ginni Filaments and DCM were among the best performing
stocks among mid-caps.
Shringar
Cinema, Searle India and Orient Hotels 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
|
7,610.60
|
-143.40
|
| NIFTY
|
2,325.40
|
-
35.80 |
Last
Update : 8 August, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| NTPC
LTD |
96.20
|
97.50
|
95.10
|
96.70 |
| ONG
CORP LTD |
959.00
|
962.05
|
938.30
|
952.05 |
| TATA
MOTORS |
502.85
|
506.00
|
475.00
|
478.20 |
| ICICI
BANK L |
506.25
|
507.50
|
475.05
|
478.45 |
| GUJARAT
AMBUJA CEMENTS LTD. |
65.90
|
65.95
|
62.70
|
63.00 |
| DR.REDDY'S
LABORATORIES LTD. |
731.00
|
825.85
|
731.00
|
803.95 |
| BAJAJ
AUTO |
1,485.00
|
1,490.00
|
1,427.50
|
1,433.30 |
| STATE
BANK OF INDIA |
804.00
|
811.90
|
777.05
|
778.90 |
| RANBAXY
LABORATORIES LTD. |
509.00
|
510.00
|
491.00
|
491.75 |
| BHEL
|
1,075.00
|
1,084.55
|
1,046.05
|
1,052.40 |
| SATYAM
COMP |
519.90
|
520.00
|
505.00
|
508.15 |
| RELIANCE
ENR |
655.00
|
657.00
|
627.15
|
629.25 |
| WIPRO
LTD. |
723.50
|
723.50
|
702.10
|
704.30 |
| TATA
POWER |
431.00
|
437.00
|
415.35
|
417.40 |
| HDFC
BANK LT |
677.00
|
677.00
|
654.00
|
658.45 |
| HINDUSTAN
LEVER LTD. |
165.00
|
165.25
|
161.05
|
161.55 |
| CIPLA
LTD. |
345.00
|
345.00
|
330.00
|
333.20 |
| RELIANCE
|
731.00
|
738.85
|
707.55
|
711.50 |
| LARSEN
& TOUBRO LTD. |
1,348.00
|
1,348.00
|
1,295.15
|
1,311.75 |
| ASSOCIATED
CEMENT COMPANIES LT |
443.70
|
444.80
|
430.05
|
434.10 |
| HOUSING
DEVELOPMENT FINANCE CO |
909.90
|
909.90
|
888.00
|
894.05 |
| HEROHONDA
M |
618.00
|
618.90
|
602.80
|
606.30 |
| Bharti
Tele |
|
|
|
290.65 |
| Grasim
Indus |
|
|
|
1,231.75 |
| Hindalco |
|
|
|
1,333.55 |
| Infosys |
|
|
|
2,270.55 |
| ITC |
|
|
|
1,724.35 |
| Maruti |
|
|
|
496.05 |
| Tata
Steel |
|
|
|
387.55 |
| TCS |
|
|
|
1,280.15 |
Last
Update : 8 August, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
749.80
|
799.00
|
707.10
|
711.30 |
| VSNL
|
433.00
|
442.85
|
413.60
|
416.20 |
| TISCO
|
388.05
|
396.25
|
386.55
|
387.95 |
| SAIL
|
61.00
|
63.50
|
60.85
|
61.65 |
| SBIN
|
809.70
|
814.80
|
776.35
|
778.90 |
| SATYAMCOMP
|
520.00
|
521.00
|
504.05
|
508.25 |
| INFOSYSTCH
|
2292.05
|
2292.05
|
2250.00
|
2270.65 |
| TATAMOTORS
|
505.00
|
508.70
|
475.15
|
478.55 |
| ONGC
|
958.00
|
963.25
|
939.00
|
954.20 |
| MARUTI |
500.00 |
504.75
|
490.60
|
496.05 |
| BHARTI
|
300.00
|
300.00
|
288.50
|
290.25 |
| TCS
|
1290.00
|
1290.00
|
1267.25
|
1283.05 |
| ITC
|
1751.90
|
1755.00
|
1718.25
|
1723.50 |
| GAIL |
245.00 |
245.00
|
236.00
|
237.30 |
| ICICIBANK
|
505.00
|
507.90
|
475.00
|
478.10 |
| PNB
|
428.25
|
430.00
|
405.70
|
407.45 |
| HINDLEVER
|
164.00
|
165.25
|
159.10
|
161.90 |
| ZEETELE
|
174.90
|
177.60
|
174.25
|
175.50 |
| TATAPOWER
|
432.10
|
438.00
|
415.00
|
416.80 |
| M&M
|
685.00
|
690.00
|
669.80
|
677.60 |
| WIPRO |
724.00 |
724.80
|
701.65
|
704.50 |
| IPCL
|
196.00
|
196.00
|
186.10
|
186.80 |
| LT
|
1345.70
|
1345.70
|
1278.35
|
1310.95 |
| REL
|
647.50
|
657.00
|
627.15
|
629.40 |
| HDFC
|
909.00
|
911.95
|
889.00
|
893.35 |
| HDFCBANK
|
765.00
|
765.00
|
651.15
|
657.75 |
| GRASIM
|
1230.00
|
1255.00
|
1225.00
|
1231.35 |
| GUJAMBCEM
|
65.50
|
65.95
|
62.60
|
63.05 |
| BHEL
|
1060.00
|
1081.90
|
1046.85
|
1051.70 |
| RANBAXY
|
511.70
|
511.70
|
490.00
|
491.90 |
| HINDALC0
|
1350.00
|
1361.00
|
1321.15
|
1332.45 |
| ORIENTBANK
|
273.20
|
277.50
|
266.10
|
268.65 |
| ACC
|
441.40
|
444.90
|
433.00
|
435.35 |
| MTNL |
130.90 |
132.80
|
129.50
|
130.15 |
| BAJAJAUTO
|
1478.00
|
1490.00
|
1425.55
|
1434.90 |
| HINDPETRO
|
305.00
|
305.00
|
295.00
|
295.95 |
| HCLTECH
|
433.00
|
435.00
|
421.10
|
430.15 |
| TATACHEM
|
192.50
|
192.80
|
184.30
|
185.10 |
| NATIONALUM
|
169.00
|
170.40
|
164.40
|
165.20 |
| HEROHONDA
|
615.00
|
620.00
|
602.15
|
606.55 |
| COLGATE
|
244.90
|
248.50
|
239.65
|
241.40 |
| BPCL
|
369.00
|
369.90
|
356.00
|
359.90 |
| CIPLA
|
341.15
|
344.80
|
330.10
|
332.20 |
| TATATEA
|
715.10
|
734.80
|
711.60
|
730.65 |
| DRREDDY
|
831.00
|
831.00
|
800.05
|
803.60 |
| SCI
|
153.00
|
153.50
|
147.60
|
148.35 |
| SUNPHARMA
|
618.00
|
622.50
|
608.00
|
610.05 |
| DABUR
|
152.85
|
152.85
|
147.75
|
148.85 |
| ABB
|
1564.10
|
1570.00
|
1527.00
|
1539.30 |
| GLAXO
|
881.00
|
898.90
|
875.30
|
888.45 |
Last
Update : 8 August, 2005, 16:00PM
| 
