|
Markets opened the day with a large positive gap in line
with the firmness across most Asian markets. The mood
was bullish and the indices looked all set to resume the
up trend after two days of consolidation. Both the Sensex
and Nifty gained close to three-quarters of a per cent
in opening trades.
But once again, the indices could not hold on to their
gains later in the day. After trading within a range till
noon, the indices dropped sharply early in the afternoon
and within half-an-hour had lost two-thirds of a per cent.
There was no buying support as frontline stocks like Tata
Steel, Tata Motors, SBI and VSNL declined sharply. The
last half-hour saw some recovery as traders covered their
positions.
The sensex closed at 7750, a loss of 30 points, and the
Nifty at 2368, a loss of 15 points. Nifty August futures
closed the day at a discount of 4 points to the spot index.
Cipla, HCL Technologies and Ranbaxy were among the major
gainers among Nifty stocks while VSNL, Tata Motors and
GAIL were the major losers.
After acquiring 10 per cent stake in China Gas, GAIL is
planning equity stakes in more international projects.
According to media reports, the company is in negotiations
to acquire minority stakes in two more Chinese companies.
GAIL is also reportedly in talks to acquire a minority
stake in the European gas pipeline, which will transport
natural gas from the producing countries of Eastern Europe
to markets in the west. The project is expected to cost
$5.7 billion. The stock closed over 2 per cent lower.
The ONGC-Mittal combine has reportedly lost out in the
race to acquire Petro Kazakhstan. CNPC of China, parent
of listed company Petro China, has agreed to buy the Canadian
listed company with major operations in Kazakhstan for
$4.18 billion.
Petro Kazakhstan has reserves of over 500-million barrels
and accounts for around 10 per cent oil production in
Kazakhstan. The price at which the deal has been struck
is considered high, but Chinese companies are going aggressive
on strategic acquisitions with the full support of the
government. ONGC lost close to a per cent today.
The government is once again testing the waters about
a possible fuel price hike. The finance minister indicated
that there is no other option but to increase retail fuel
prices.
NTPC has initiated discussions with many overseas companies
to secure natural gas supplies for its power plants. The
company is in discussions with firms in Australia, Nigeria
and Iran on acquiring minority stakes in exploration and
LNG liquefaction projects. The stock closed flat.
NTPC is facing a generation loss of over 700mw because
of short supply of natural gas. With ambitious plans for
expanding generation capacity over the next few years,
it is imperative for NTPC to secure fuel supplies. Coal
shortages because of lack of investments in mining by
Coal India, a PSU monopoly, have made the fuel situation
more difficult.
Colgate Palmolive has opened a new toothpaste manufacturing
unit in Himachal Pradesh. The unit was set up at an investment
of over Rs 100 crore. The stock closed a per cent higher.
Pharma company Cipla opened with strong gains today on
persistent market talk about Swiss company Sandoz making
an acquisition bid. Cipla has denied such reports. The
stock finally closed 3 per cent higher.
Dr Reddy's has received tentative approval from the US
FDA for an anti-diabetic drug. The stock closed half a
per cent higher.
Mid-Cap Action
Mid-caps
also had a very strong opening with the index gaining
over a per cent within an hour of trade. The weakness
in frontline indices spread to the smaller stocks as well
though the losses on the mid-cap index were lower. The
CNX Mid-Cap index closed the day at 3624, a loss of 6
points.
Road
projects continue to flow in for construction companies.
Nagarjuna Constructions has received an order from the
National Highway Authority for construction of two roads
in the state of UP. The order is worth over Rs400 crore.
Andhra
Cements of the GP Goenka group is planning a private placement
of up to 15 per cent. The group, which owns over 70-per
cent stake in the company, is planning the move to come
out of the debt burden.
Kinetic
Engineering gained over 5 per cent after the company's
board approved a rights issue at an attractive rate. The
shares would be issued in the ratio of two shares for
every share held at a price of Rs40 per share. The stock
is currently trading around Rs135 per share.
According
to media reports, Alcoa of US is in negotiations to buy
out aluminium foil manufacturer India Foils. The company
is now a part of the Vedanta group. Alcoa is one of the
largest aluminium manufacturers in the world. The stock
was locked in the 20 per cent upper circuit on the BSE.
Budget
airline SpiceJet has denied being in talks with UK-based
Hinduja group for a stake sale. The company said it has
no immediate need for funds as it had recently raised
$90 million through an issue of convertible bonds to finance
fleet acquisition.
Automobile
wheel manufacturer Wheels India gained on reports that
the company is planning to set up a joint venture with
Caterpillar of US.
Sah
Petroleum, a manufacturer of industrial lubricants, surged
close to 10 per cent in early trades as its board is scheduled
to meet today to decide on a bonus issue. The board has
recommended the issue at the ratio of three shares for
every five shares.
Another
stock gaining today on reports of a possible bonus issue
was Sterling Tools, which gained over 8 per cent in intra-day
trades. The company manufactures automobile fasteners.
Geojit
Financial Services was locked in the 10 per cent lower
circuit by afternoon. The stock had gained close to 50
per cent last week on market speculation about the company
negotiating to acquire institutional brokerage UTI Securities.
There were market rumours about a possible entry into
retail financing, similar to what IndiaBulls is trying
to do.
Even
as Geojit and IL&FS Investmart corrected, another
stock brokerage India Infoline surged and closed the day
locked in the 20 per cent upper circuit.
Solectron
Centum, a manufacturer of industrial electronic components,
was locked in the 10 per cent upper circuit after a domestic
brokerage set a very aggressive price target over the
long term.
Radico
Khaitan, the second-largest player in the alcoholic spirits
segment, maintained its up trend from last week. The stock
closed with gains of over 5 per cent after its board approved
the setting up of an overseas subsidiary. The subsidiary
would market the company's products globally and would
also be the vehicle for forming joint ventures.
Steel
manufacturer Mukand gained in early trades after reports
that its has finalised a deal to sell its real estate
holding in Mumbai. The company later clarified that no
deal has been finalised though negotiations are going
on.
Refrigeration
company Blue Star has tied up with an Italian company
for the development of controlled atmosphere technology
for fruit preservation.
 Abhishek
Industries, Shah Alloys and Jindal Photo were among the
best performing stocks among mid-caps.
Precot
Mills, IFB Industries and Mysore Cements 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
|
7,750.60
|
-30.16
|
| NIFTY
|
2,367.85
|
-15.60
|
Last
Update : 22 August, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| CIPLA
LTD. |
353.00
|
371.25
|
349.00
|
357.40 |
| HEROHONDA
M |
680.00
|
705.00
|
670.00
|
686.55 |
| RANBAXY
LABORATORIES LTD. |
541.00
|
550.00
|
535.00
|
542.25 |
| GUJARAT
AMBUJA CEMENTS LTD. |
65.95
|
67.15
|
65.25
|
66.30 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,299.00
|
2,338.85
|
2,291.20
|
2,318.95 |
| GRASIM
INDUSTRIES LTD. |
1,305.00
|
1,318.00
|
1,295.00
|
1,313.65 |
| HDFC
BANK LT |
660.00
|
668.00
|
651.00
|
662.40 |
| DR.REDDY'S
LABORATORIES LTD. |
821.90
|
839.00
|
820.00
|
825.10 |
| TATA
POWER |
430.00
|
435.00
|
424.10
|
432.20 |
| SATYAM
COMP |
513.80
|
517.20
|
506.05
|
513.25 |
|
I T C LTD |
1,695.00
|
1,705.00
|
1,684.00
|
1,687.60 |
| WIPRO
LTD. |
365.00 |
390.00 |
361.50
|
365.15 |
| TATA
MOTORS |
492.50
|
494.85
|
474.20
|
477.10 |
| HOUSING
DEVELOPMENT FINANCE CO |
930.00
|
935.00
|
900.00
|
902.00 |
| TATA
IRON AND STEEL CO. LTD. |
403.00
|
405.75
|
390.25
|
392.80 |
| BHARTI
TELE |
314.90
|
317.00
|
303.50
|
305.00 |
| RELIANCE
ENR |
593.00
|
605.00
|
579.00
|
582.65 |
| BHEL
|
1,089.00
|
1,089.00
|
1,039.00
|
1,054.50 |
| STATE
BANK OF INDIA |
809.00 |
811.70
|
785.00
|
790.60 |
| ASSOCIATED
CEMENT COMPANIES LT |
473.00
|
475.50
|
461.00
|
465.15 |
| ONG
CORP LTD |
999.90
|
1,013.70
|
981.65
|
990.40 |
| BAJAJ
AUTO |
1,427.25
|
1,436.00
|
1,400.00
|
1,405.00 |
| RELIANCE
|
710.00
|
713.40
|
694.25
|
699.20 |
| ICICI
BANK L |
500.00
|
504.00
|
490.10
|
493.15 |
| TCS
LTD |
1,330.00
|
1,346.85
|
1,312.00
|
1,316.70 |
| HINDUSTAN
LEVER LTD. |
169.00
|
171.00
|
165.65
|
166.55 |
| MARUTI
UDYOG |
484.00
|
485.00
|
475.05
|
477.10 |
| LARSEN
& TOUBRO LTD. |
1,333.00
|
1,362.00
|
1,320.05
|
1,324.30 |
| HINDALCO
IN |
1,410.00
|
1,421.00
|
1,393.00
|
1,398.50 |
Last
Update : 22 August, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
709.70
|
713.60
|
694.60
|
699.30 |
| SATYAMCOMP
|
511.00
|
517.40
|
506.40
|
513.50 |
| VSNL
|
404.00
|
410.00
|
386.00
|
389.90 |
| INFOSYSTCH
|
2320.00
|
2340.00
|
2294.00
|
2314.95 |
| SBIN
|
807.80
|
811.50
|
785.10
|
789.95 |
| TISCO
|
402.00
|
405.90
|
390.40
|
393.00 |
| RANBAXY
|
538.85
|
550.00
|
535.00
|
542.55 |
| TCS
|
1325.00
|
1348.40
|
1245.00
|
1317.85 |
| HINDLEVER
|
168.00
|
170.50
|
165.95
|
166.90 |
| SAIL |
64.10 |
65.90
|
63.10
|
63.90 |
| TATAMOTORS
|
494.70
|
494.70
|
473.25
|
477.00 |
| ONGC
|
1000.20
|
1014.40
|
976.35
|
991.10 |
| ITC
|
1728.50
|
1728.50
|
1683.10
|
1690.20 |
| GUJAMBCEM
|
65.70
|
67.20
|
65.25
|
66.25 |
| WIPRO |
368.50 |
380.50
|
360.00
|
362.55 |
| BHARTI
|
314.90
|
317.70
|
303.60
|
306.35 |
| REL |
598.00 |
604.90
|
581.00
|
584.10 |
| CIPLA
|
355.00
|
373.00
|
345.10
|
359.10 |
| ACC |
471.05 |
475.00
|
460.35
|
465.75 |
| ZEETELE
|
171.00
|
174.50
|
170.50
|
171.70 |
| MARUTI |
485.00 |
485.00
|
475.05
|
477.95 |
| M&M
|
712.00
|
722.00
|
706.00
|
712.35 |
| LT
|
1344.90
|
1362.80
|
1321.10
|
1325.10 |
| HINDALC0
|
1405.00
|
1420.00
|
1390.00
|
1395.00 |
| HDFC
|
932.00
|
939.00
|
900.00
|
913.50 |
| GAIL
|
244.40
|
244.40
|
233.10
|
234.10 |
| IPCL
|
186.80
|
187.90
|
183.10
|
185.10 |
| PNB
|
413.90
|
415.00
|
397.00
|
402.40 |
| TATAPOWER
|
429.00
|
434.65
|
425.00
|
432.60 |
| ICICIBANK
|
509.70
|
509.70
|
487.05
|
491.55 |
| BPCL
|
356.10
|
364.00
|
355.15
|
360.55 |
| GRASIM
|
1310.00
|
1318.00
|
1293.10
|
1305.65 |
| TATACHEM
|
188.90
|
189.50
|
185.50
|
185.85 |
| SCI
|
150.05
|
156.85
|
150.05
|
156.00 |
| HINDPETRO
|
298.90
|
299.85
|
292.25
|
294.65 |
| BHEL
|
1080.00
|
1082.05
|
1036.05
|
1052.10 |
| HCLTECH
|
420.05
|
449.55
|
420.05
|
447.35 |
| HDFCBANK
|
672.90
|
672.90
|
653.00
|
657.60 |
| TATATEA
|
823.50
|
828.95
|
811.00
|
814.50 |
| DABUR
|
151.00
|
153.00
|
148.00
|
149.10 |
| HEROHONDA
|
685.00
|
699.95
|
671.15
|
683.70 |
| MTNL
|
129.00
|
129.50
|
127.00
|
127.25 |
| DRREDDY
|
803.00
|
840.00
|
755.65
|
825.70 |
| NATIONALUM
|
169.00
|
172.00
|
166.55
|
169.95 |
| COLGATE
|
259.50
|
262.00
|
255.55
|
260.05 |
| ORIENTBANK
|
255.10
|
266.90
|
255.10
|
260.60 |
| BAJAJAUTO
|
1443.00
|
1444.00
|
1395.10
|
1406.90 |
| SUNPHARMA
|
629.90
|
629.90
|
605.05
|
609.15 |
| GLAXO
|
880.00
|
882.00
|
868.05
|
879.60 |
| ABB
|
1559.80
|
1560.00
|
1525.00
|
1530.20 |
Last
Update : 22 August, 2005, 16:00PM
|
