|
The markets opened on a firm note on positive global cues
including a firm closing by the US markets and a decline
in crude prices. The rate hike by US Fed was also on expected
lines and helped to lessen fears about future FII inflows
into the country.
The surge was across the board, except for the PSU oil
marketing companies, which were trading with losses of
over a per cent each early in the morning.
After remaining within a range with a positive bias till
late in the afternoon, the indices surged sharply as technology
and banking stocks notched up handsome gains. Oil stocks
recovered from their morning weakness and added to the
market momentum.
The indices regained most of the past two days' losses
in today's session. The Sensex and Nifty are back to last
week's closing levels.
Sensex closed at 7730, a gain of 134 points, and the Nifty
at 2360, a gain of 41 points. Nifty August futures closed
the day a premium of 5 points to the spot index.
Satyam, SAIL and Bharti were among the major gainers among
Nifty stocks while Bajaj Auto, Maruti and Gujarat Ambuja
were the major losers.
US markets recovered yesterday after four days of losses
as the US Fed raised short-term interest rates as expected
by 25 basis points. The market rallied as the uncertainty
over interest rates has passed, at least in the short
term. The decline in oil prices later in the day also
helped the indices.
The Dow and S&P 500 indices closed around three quarters
of a per cent higher yesterday. Gains on the NASDAQ were
lower at marginally less than half a per cent.
Crude oil futures for September delivery declined 87 cents
during late trades yesterday after setting a new all time
high above $64 to a barrel in early trades. Crude closed
the day at $63.07 yesterday. The commodity has opened
firm in early European trades today.
Indian ADR's recovered partly from Monday's losses, yesterday.
The recovery was led by ICICI Bank and HDFC Bank with
the former closing with gains of nearly 4 per cent and
the latter closing 3 per cent higher. Technology ADR's
also had a good day led by Infosys and Satyam, which gained
close to 2 per cent each. Wipro also managed to close
with gains. VSNL continued its downtrend, losing another
2 per cent yesterday. Dr. Reddy's was the other loser,
closing over half a per cent lower.
The ministry of petroleum has indicated that all the four
PSU oil-marketing companies would become sick units under
the BIFR norms, if fuel prices are not increased. These
companies would erode their networth as losses are mounting
because of under recoveries.
IBP's net worth would turn negative within the next two
months followed by BPCL and HPCL, which will turn sick
next year. Even Indian Oil would turn sick in another
three years if the present scenario continues.
Oil PSU stocks opened the day on a weak note but recovered
later as the markets gathered strength. HPCL led the recovery
and closed the day with gains of well over 3 per cent.
BPCL closed the day with gains of nearly 3 per cent while
Indian Oil closed 2 per cent higher. ONGC was the sole
loser among PSU oil stocks.
Tata Motors has indicated that the much talked about Rs1-lakh
passenger car would be launched between 2007 and 2008.
The company is ready to go in for tooling for the car
and is expected to deploy innovative manufacturing techniques
to keep costs down. The stock closed 2 per cent higher.
Tata Tea has confirmed that the company is looking for
acquisition opportunities, either of brands or mid-sized
companies, in north or South America. The size of the
deal could be as high as $1 billion and the company has
reportedly set aside Rs500 crore for this purpose. The
stock closed over 3 per cent higher.
Sun Pharmaceuticals has acquired a stake in Hungary-based
ICN from a US pharmaceutical company Valeant. The Hungarian
company manufactures raw materials and offers Sun a ready
entry into the European generics market. The stock closed
3 per cent higher.
Bharti TeleVentures gained over 4 per cent on healthy
subscriber additions during the month of July. The company
added over five lakh new customers during the month, the
highest by any telecom operator.
Technology stocks surged ahead led by Satyam Computers,
which gained over 5 per cent. TCS and Infosys gained over
to 2 per cent each while Wipro gained well over a per
cent.
TCS announced a strategic tie-up with BindView, an international
provider of technology security solutions.
Metal stocks had a good day led by SAIL, which closed
with gains of over 4 per cent. Tata Steel closed almost
3 per cent higher while Hindalco gained 2 per cent. Among
the smaller steel stocks, Essar Steel, Ispat Industries
and JSW Steel all closed with gains.
Maruti and Bajaj Auto were among the losers today closing
the day with losses of over a per cent each.
Mid-Cap Action
Mid-caps
also bounced back smartly on frenzied buying in most of
the actively traded counters. Market breadth was also
highly positive. The CNX Mid-Cap 100 index closed the
day at 3559, a gain of 66 points or close to 2 per cent.
The
UB Group would merge all its liquor businesses under UB
Spirits, including the businesses acquired by the group
from Shaw Wallace. The process would be completed by March
of next year and the merged company would be listed subsequently.
Travel
company Thomas Cook denied media reports that its parent
company is planning to sell its stake in the company.
The reports mentioned that Kotak Mahindra Capital has
been given the mandate to sell the 60 per cent stake held
by the parent company in Thomas Cook India.
Two-wheeler
manufacturer LML expects to return to profitability in
the last quarter of the current year. The company had
been posting losses for the last three years as scooter
sales dropped substantially. The company expects motorcycle
sales to pick up and has launched many models recently.
Ingersoll
Rand was locked in the 20 per cent upper circuit after
its US parent announced that it would acquire the outstanding
public holding in the company through a reverse book building
process. The parent holds 74 per cent stake at present.
Munjal
Auto has decided to de-merge its forging and machining
division based in the state of Haryana into a separate
company. Details of the de-merger are being worked out.
The stock was locked in the 20 per cent upper circuit
after the announcement.
Stocks
of automobile tyre manufacturing companies saw large buying
as natural rubber prices have come down from their record
highs posted last month. MRF, Ceat, JK Industries and
Apollo Tyres all closed with strong gains.
Auto
ancillary company, Ahmednagar Forgings, gained 5 per cent
after the company announced a bonus issue in the ratio
of 2 shares for every share held. The company is a supplier
to many auto companies like Tata Motors, Eicher and Force
Motors.
Another
auto ancillary stock, which gained during the day, was
ZF Steering. The stock ran up after the company announced
the record date for the proposed bonus issue in the ratio
of one share for every share held.
Some
of the mid-cap software stocks saw intense buying interest.
I-Flex gained over 7 per cent on rumours of an upward
revision of the open offer price by Oracle. Mphasis BFL,
Polaris, Aftek Infosys, Cranes Soft and 3i Infotech were
among the other significant gainers.
Kale
Consultants has signed a 5-year contract with a Philippines-based
airline for providing passenger revenue accounting solutions.
Subhash
Projects closed with gains of 20 per cent after the company
announced 2 new orders from the Power Grid Corporation
for rural electrification projects in the northern states.
The new orders are worth over Rs70 crore and the company's
order book is at around Rs1,300 crore.
Mawana
Sugar gained over 10 per cent after the company announced
that it would invest over Rs500 crore to set up a new
plant and expand existing capacities. All round buying
was seen in other sugar stocks also.
 Kamat
Hotel, Ginni Filaments and Pearl Global were among the
best performing stocks among mid-caps, all closing at
the 20 per cent upper circuit.
RS
Software, Geodesic Info and Eicher Motors 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
|
7,741.28
|
+
145.71 |
| NIFTY
|
2,362.05
|
+
43.35 |
Last
Update : 10 August, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| SATYAM
COMP |
503.70
|
529.70
|
502.00
|
524.20 |
| BHARTI
TELE |
296.90
|
304.00
|
295.50
|
303.35 |
| STATE
BANK OF INDIA |
778.90
|
816.00
|
778.00
|
808.00 |
| TATA
POWER |
413.50
|
427.00
|
412.50
|
424.95 |
| GRASIM
INDUSTRIES LTD. |
1,250.00
|
1,300.00
|
1,250.00
|
1,296.30 |
| HEROHONDA
M |
616.90
|
645.00
|
609.00
|
625.95 |
| TATA
IRON AND STEEL CO. LTD. |
394.00
|
400.00
|
391.10
|
398.20 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,275.00
|
2,329.80
|
2,275.00
|
2,315.15 |
| TCS
LTD |
1,290.00
|
1,315.10
|
1,287.10
|
1,313.00 |
| ICICI
BANK L |
487.00
|
494.80
|
487.00
|
493.10 |
| HOUSING
DEVELOPMENT FINANCE CO |
898.00
|
915.00
|
896.50
|
915.00 |
| TATA
MOTORS |
474.10
|
482.85
|
472.00
|
481.45 |
| I
T C LTD |
1,710.00
|
1,741.00
|
1,706.00
|
1,736.70 |
| HINDALCO
IN |
1,301.35
|
1,369.90
|
1,301.35
|
1,365.70 |
| RELIANCE
|
711.00
|
722.00
|
709.80
|
719.25 |
| RANBAXY
LABORATORIES LTD. |
496.00
|
505.00
|
492.30
|
500.15 |
| WIPRO
LTD. |
713.00
|
728.00
|
713.00
|
726.65 |
| BHEL
|
1,058.55
|
1,075.00
|
1,056.10
|
1,072.00 |
| ASSOCIATED
CEMENT COMPANIES LT |
435.90
|
441.40
|
431.25
|
434.95 |
| RELIANCE
ENR |
620.00
|
625.00
|
614.00
|
620.55 |
| BAJAJ
AUTO |
1,428.00
|
1,435.00
|
1,405.00
|
1,411.70 |
| MARUTI
UDYOG |
486.00
|
488.00
|
474.30
|
479.30 |
| NTPC
LTD |
95.80
|
98.00
|
95.80
|
96.55 |
| GUJARAT
AMBUJA CEMENTS LTD. |
66.00
|
66.10
|
64.50
|
64.95 |
| LARSEN
& TOUBRO LTD. |
1,325.00
|
1,333.50
|
1,318.00
|
1,320.05 |
Last
Update : 10 August, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
719.70
|
722.65
|
709.20
|
719.45 |
| VSNL |
409.80 |
419.00
|
406.15
|
416.90 |
| SATYAMCOMP
|
499.20
|
529.70
|
499.20
|
524.10 |
| INFOSYSTCH
|
2284.00
|
2327.00
|
2278.00
|
2315.00 |
| TISCO
|
391.00
|
400.00
|
391.00
|
398.05 |
| SAIL
|
62.85
|
65.25
|
62.55
|
64.95 |
| SBIN
|
783.00
|
814.00
|
778.15
|
807.25 |
| TCS
|
1285.65
|
1316.65
|
1285.65
|
1313.05 |
| BHARTI
|
296.35
|
304.90
|
295.00
|
303.50 |
| TATAMOTORS
|
474.50
|
482.90
|
473.30
|
481.00 |
| ONGC
|
959.00
|
960.00
|
945.50
|
956.25 |
| HINDLEVER
|
160.55
|
164.25
|
160.55
|
161.85 |
| MARUTI
|
490.00
|
490.00
|
473.65
|
479.35 |
| ACC
|
431.00
|
441.20
|
430.90
|
434.90 |
| ITC
|
1738.80
|
1741.60
|
1700.00
|
1736.70 |
| REL |
620.10 |
624.00
|
613.05
|
619.40 |
| RANBAXY
|
495.00
|
506.00
|
491.95
|
500.25 |
| WIPRO |
719.80 |
728.00
|
714.00
|
727.65 |
| ZEETELE
|
173.35
|
174.80
|
170.50
|
172.75 |
| TATAPOWER
|
415.00
|
428.00
|
413.50
|
425.20 |
| ICICIBANK
|
489.70
|
495.00
|
488.20
|
494.05 |
| IPCL
|
183.80
|
185.60
|
183.00
|
184.70 |
| GRASIM |
1271.00 |
1302.00
|
1254.00
|
1293.85 |
| PNB
|
400.00
|
419.40
|
400.00
|
417.35 |
| HDFC
|
892.00
|
913.65
|
892.00
|
909.15 |
| HINDALC0
|
1353.00
|
1365.00
|
1338.25
|
1362.65 |
| BPCL
|
352.50
|
367.30
|
340.00
|
362.30 |
| GUJAMBCEM
|
66.45
|
66.75
|
64.50 |
64.95 |
| LT
|
1325.00
|
1344.50
|
1320.00
|
1324.00 |
| M&M
|
673.65
|
693.80
|
673.65
|
690.05 |
| TATATEA
|
733.90
|
757.00
|
733.90
|
753.65 |
| CIPLA
|
326.00
|
328.80
|
320.00
|
322.70 |
| HINDPETRO
|
290.05
|
305.00
|
286.50
|
304.05 |
| HDFCBANK
|
675.00
|
675.00
|
655.25
|
660.25 |
| BAJAJAUTO
|
1425.00
|
1436.00
|
1405.00
|
1412.30 |
| HEROHONDA
|
615.00
|
630.00
|
611.00
|
626.20 |
| GAIL
|
234.00
|
238.35
|
232.25
|
236.85 |
| MTNL
|
129.00
|
133.95
|
128.50
|
129.05 |
| HCLTECH
|
432.95
|
436.80
|
425.00
|
432.20 |
| ORIENTBANK
|
271.85
|
272.50
|
268.50
|
271.55 |
| BHEL
|
1070.00
|
1075.00
|
1056.05
|
1071.75 |
| NATIONALUM
|
162.45
|
165.00
|
160.55
|
164.35 |
| TATACHEM
|
185.80
|
187.50
|
184.00
|
186.40 |
| DABUR
|
146.25
|
151.95
|
145.50
|
151.25 |
| COLGATE
|
243.00
|
248.90
|
243.00
|
245.40 |
| SCI
|
152.00
|
152.55
|
149.30
|
150.55 |
| SUNPHARMA
|
602.00
|
627.90
|
595.05
|
618.70 |
| ABB
|
1564.90
|
1568.90
|
1546.00
|
1563.95 |
| DRREDDY
|
805.50
|
815.00
|
805.00
|
812.35 |
| GLAXO
|
862.85
|
879.75
|
856.10
|
870.20 |
Last
Update : 10 August, 2005, 16:00PM
|
