|
After four straight sessions of losses, the markets once
again opened on a weak note today. The indices were held
down as the weakness in frontline stocks rolled over from
yesterday.
Some amount of short covering ahead of tomorrow's derivatives
expiry and buying at lower levels led to a recovery and
the indices were in positive territory within an hour
of opening. The uptrend did not last as fresh selling
emerged soon after.
After trying to stabilise for two hours, the markets gave
up and slipped sharply as heavy selling was seen in select
index stocks. Just when it appeared as if the markets
were going to record the fifth day of losses, the recovery
came and pushed the indices back very close to yesterday's
closing levels.
Recovery in stocks like ICICI Bank, Reliance Industries
and ONGC helped the frontline indices towards close of
the day.
Sensex closed at 7612, a loss of 4 points, and the Nifty
at 2322, also a loss of 4 points. Nifty August futures
closed the day at a premium of 6 points to the spot index.
September futures closed at a discount of 24 points.
Sun Pharma, Bharti and BHEL were the only stocks on the
Nifty, which managed to close with marginal gains while
Hero Honda, Colgate and VSNL were the major losers.
The US markets closed lower yesterday as continued strength
in crude oil and reports of weakness in the property market
kept alive fears of a slowdown in consumer spending. The
Dow lost half-a-per cent while the S&P 500 and NASDAQ
closed with losses of one quarter of a per cent each.
Crude futures for October delivery staged a recovery in
the afternoon after trading lower in morning trades yesterday.
The commodity closed with marginal gains at $65.71 on
the NYMEX yesterday. Crude futures are trading well above
$66 in early European trades today.
Indian ADR's had a disastrous day in the US markets following
the huge fall in the domestic markets. VSNL was the biggest
lower, closing well over 5 per cent lower. The other telecom
stock MTNL lost over 3 per cent. Banking ADR's, ICICI
Bank and HDFC Bank, lost well over 4 per cent each.
Among the technology ADR's, Infosys and Satyam lost close
to 3 per cent each while Wipro closed more than a per
cent lower. Dr. Reddy's lost more than a per cent while
Tata Motors shed over 2 per cent.
The board of directors of Tata Steel has approved the
setting up of an integrated steel plant in Jharkhand,
the company's second plant in the state after Jamshedpur.
The plant would be set up in two phases of 5-million tonnes
each at a total cost of over Rs45,000 crore.
The first phase of 5-million tonnes is expected to be
completed within four years and the next phase would take
a further five years. The company is also evaluating a
new plant in the state of Orissa apart from adding another
2-million tonnes of capacity at its Jamshedpur plant.
The stock lost close to 2 per cent in today's trade.
In a related development, the government of Jharkhand
has rejected the demand of Mittal Steel to allow export
of iron ore as a pre-condition for setting up a 10-million
tonnes per annum steel plant in the state.
Hero Honda, the largest manufacturer of motorcycles in
the world, is planning to enter the scooter segment later
this year. Sources indicated that the company is planning
to price its product below Rs40,000 and is not expecting
high volumes initially.
The company's technology partner and major shareholder,
Honda, is also present in both motorcycles and scooters
on its own. The stock lost over 4 per cent today and was
one of the biggest losers among the index stocks.
The world's largest mutual fund, Fidelity, and its subsidiaries
have raised the total stake in domestic pharma major Cipla
to 5 per cent. The stock gained over a per cent.
Asian Paints is on the lookout for acquisitions in the
Middle East and East Asian countries to expand its global
operations. The company had acquired Singapore based Berger
International in 2003. Asian Paints has a presence in
22 countries and its overseas revenues exceeded $100 million
last year.
BHEL has received a fresh order from the government of
Haryana for renovation and upgrading of a power station.
The order is worth Rs110 crore and will be completed in
two years. The stock closed over 2 per cent higher.
Indian Oil is planning to raise the capacity of its Panipat
refinery to 3-lakh barrels of crude per day or close to
13-million tonnes per annum. The refinery has a capacity
of 1.2-lakh barrels at present, which would be doubled
by the last quarter of the current financial year. The
company is also considering a naphtha cracker at the same
location.
HCL Technologies will set up a dedicated centre for product
engineering centre for Hamilton Sundstrand. The centre
would come up in Bangalore and would offer engineering
design services to Hamilton's operations in the US and
Europe. The stock lost close to 3 per cent.
Larsen & Toubro has won a contract to rebuild the
cricket stadium at Kensington Oval in Barbados ahead of
the cricket world cup scheduled for 2007. The order is
reportedly worth over Rs210 crore. The stock gained a
per cent.
L&T is also planning to team up with domestic oil
majors like ONGC, Indian Oil and GAIL to bid for overseas
engineering and construction projects in the petroleum
sector. The company already has an agreement with Indian
Oil and is negotiating with the other two. Teaming up
with oil companies would provide industry expertise to
L&T.
Gujarat Ambuja Cements planning to raise $100 million
through foreign currency borrowings to retire higher cost
debt. The stock closed well over a per cent lower.
Major technology stocks had a bad day as TCS, Infosys,
Wipro and Satyam all closed with losses of well over a
per cent each.
Mid-Cap Action
Mid-caps
could not manage a last hour recovery like the frontline
stocks, though they did recover from the day's lows. By
late afternoon, the mid-cap index had lost close to 2
per cent as many of the active mid-cap stocks were trading
with huge losses. The CNX Mid-Cap index closed the day
at 3509, a loss of 43 points.
There
are reports that the proposed stake sale by private equity
firm Barings in mid-cap software company Mphasis BFL may
be delayed or called off. Potential buyers like Temasek
Holdings and Hinduja TMT are reportedly finding the price
too high. There are market rumours that TCS has re-entered
as a bidder.
Titan
Industries was one of the few stocks, which closed with
good gains in a falling market. The company said its board
would meet next week to consider a rights issue. The stock
closed with gains of close to 4 per cent.
Mid-Day
Multimedia was another stock, which held firm in a falling
market. The stock has held firm through most of this market
correction, except on Monday. The stock gained ahead of
a board meeting to consider preferential issue to FII's
and overseas corporate bodies.
Visual
Soft was one of the few gainers in the mid-cap space with
the stock closing with gains of over 5 per cent. The stock
firmed up on reports that Citigroup Global Markets, the
investment arm of Citibank, has acquired an additional
1.4 per cent stake in the company taking its total stake
close to 6 per cent.
According
to media reports fertiliser companies GSFC and Coromandel
Fertilisers are in negotiations to acquire a large stake
in a Tunisian company. The Indian companies are negotiating
to acquire 46 per cent held by the government of Tunisia.
The
Tunisian company manufactures phosphoric acid, an input
in the production of DAP manufactured by the 2 Indian
companies. Coromandel later denied these reports.
After
surging close to 7 per cent yesterday on the listing of
FCCB's in Singapore, Dishman Pharma continued its upward
journey today as well. The stock was helped by the announcement
that the company would consider a stock split shortly.
Apollo
Sindhoori was locked in the 20 per cent upper circuit
after the company announced a rights issue at a steep
discount to the current market price. The company offers
financial services including stock broking.
 Indo
Rama Textiles, IFB Industries and Murudeshwar Ceramics
were among the best performing stocks among mid-caps.
India
Foils, Bajaj Hindustan and Upper Ganges Sugar 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
|
7,612.00
|
-3.99
|
| NIFTY
|
2,322.50
|
-3.60
|
Last
Update : 24 August, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| BHARTI
TELE |
303.05
|
313.90
|
301.15
|
311.25 |
| ICICI
BANK L |
475.00
|
495.00
|
470.50
|
488.90 |
| BHEL
|
1,032.35
|
1,080.00
|
1,020.15
|
1,056.60 |
| RELIANCE
|
687.00
|
696.65
|
683.55
|
694.80 |
| RELIANCE
ENR |
580.00
|
580.00
|
563.30
|
572.80 |
| HDFC
BANK LT |
642.00
|
654.00
|
630.00
|
651.00 |
| ONG
CORP LTD |
967.25
|
981.00
|
962.00
|
972.40 |
| I
T C LTD |
1,694.00
|
1,708.00
|
1,681.25
|
1,696.70 |
| CIPLA
LTD. |
345.10
|
350.95
|
342.10
|
347.00 |
| HEROHONDA
M |
672.00
|
678.80
|
629.00
|
650.00 |
| TATA
IRON AND STEEL CO. LTD. |
387.90
|
387.90
|
372.05
|
375.80 |
| WIPRO
LTD. |
359.00
|
362.00
|
350.05
|
352.20 |
| DR.REDDY'S
LABORATORIES LTD. |
817.00 |
820.00
|
792.00
|
800.00 |
| HINDUSTAN
LEVER LTD. |
165.50
|
165.50
|
161.00
|
161.95 |
| SATYAM
COMP |
501.00
|
506.80
|
487.10
|
491.75 |
| TATA
POWER |
425.00
|
425.00
|
415.00
|
418.60 |
| TCS
LTD |
1,312.00
|
1,315.00
|
1,287.00
|
1,300.25 |
| ASSOCIATED
CEMENT COMPANIES LT |
466.00
|
468.00
|
450.50
|
459.15 |
| HOUSING
DEVELOPMENT FINANCE CO |
910.30
|
910.30
|
896.00
|
900.00 |
| GUJARAT
AMBUJA CEMENTS LTD. |
64.90
|
64.95
|
61.90
|
63.45 |
| TATA
MOTORS |
478.00
|
479.80
|
468.10
|
473.65 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,289.90
|
2,289.90
|
2,251.00
|
2,267.70 |
| STATE
BANK OF INDIA |
780.60
|
784.50
|
765.35
|
774.50 |
| BAJAJ
AUTO |
1,352.00
|
1,369.95
|
1,338.00
|
1,345.20 |
| NTPC
LTD |
96.00
|
96.90
|
95.45
|
96.25 |
| LARSEN
& TOUBRO LTD. |
1,290.00
|
1,291.00
|
1,272.00
|
1,280.45 |
| HINDALCO
IN |
1,371.00
|
1,387.00
|
1,355.00
|
1,371.20 |
| RANBAXY
LABORATORIES LTD. |
519.00
|
522.95
|
495.05
|
513.45 |
| MARUTI
UDYOG |
469.75
|
473.00
|
463.10
|
469.20 |
Last
Update : 24 August, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
687.00
|
697.00
|
683.10
|
694.85 |
| VSNL
|
368.30
|
372.90
|
347.35
|
357.70 |
| SATYAMCOMP
|
498.25
|
507.45
|
487.25
|
491.90 |
| ONGC
|
970.00
|
981.25
|
960.35
|
972.00 |
| INFOSYSTCH
|
2295.00
|
2295.00
|
2250.30
|
2264.20 |
| TISCO
|
384.15
|
386.30
|
372.10
|
376.00 |
| SBIN
|
790.00
|
790.00
|
765.10
|
774.50 |
| SAIL |
61.70 |
61.70
|
59.00
|
59.70 |
| RANBAXY
|
514.00
|
522.90
|
445.00
|
513.65 |
| TCS |
1316.05 |
1318.00
|
1284.00
|
1295.70 |
| TATAMOTORS
|
479.50
|
479.50
|
468.00
|
473.35 |
| ACC
|
467.55
|
467.95
|
451.10
|
459.60 |
| LT
|
1277.00
|
1303.00
|
1275.00
|
1290.40 |
| HDFCBANK
|
645.00
|
658.00
|
629.35
|
651.60 |
| PNB
|
398.00
|
402.00
|
388.00
|
398.60 |
| REL |
570.00 |
577.40
|
560.00
|
572.75 |
| ITC
|
1710.00
|
1710.00
|
1683.50
|
1696.85 |
| BHARTI
|
305.45
|
313.00
|
301.25
|
311.00 |
| HINDLEVER
|
164.20
|
165.75
|
160.65
|
162.00 |
| ICICIBANK
|
478.00
|
494.95
|
470.00
|
488.25 |
| TATATEA
|
801.00
|
807.50
|
785.00
|
801.50 |
| MARUTI
|
471.00
|
471.00
|
462.20
|
467.60 |
| BHEL
|
1045.00
|
1155.00
|
1026.05
|
1057.05 |
| ZEETELE
|
167.15
|
168.95
|
160.60
|
166.35 |
| TATAPOWER
|
428.95
|
428.95
|
415.05
|
417.95 |
| WIPRO
|
362.50
|
362.50
|
351.00
|
353.25 |
| TATACHEM
|
184.90
|
186.30
|
182.00
|
184.45 |
| IPCL
|
183.00
|
183.30
|
178.10
|
179.85 |
| GUJAMBCEM
|
64.30
|
64.90
|
61.80
|
63.10 |
| HDFC
|
924.00
|
924.00
|
894.00
|
899.75 |
| BAJAJAUTO
|
1364.95
|
1370.00
|
1340.00
|
1345.85 |
| GRASIM
|
1286.40
|
1304.95
|
1275.20
|
1294.85 |
| M&M
|
685.00
|
695.00
|
677.05
|
688.60 |
| MTNL
|
125.70
|
125.70
|
120.85
|
122.15 |
| CIPLA
|
354.80
|
354.80
|
341.25
|
350.75 |
| HINDALC0
|
1378.00
|
1388.00
|
1358.25
|
1370.05 |
| BPCL
|
360.90
|
369.35
|
353.10
|
362.60 |
| GAIL
|
231.00
|
232.80
|
225.00
|
228.50 |
| HEROHONDA
|
675.00
|
680.00
|
648.10
|
649.90 |
| ORIENTBANK
|
253.20
|
258.35
|
251.05
|
253.70 |
| DRREDDY
|
808.15
|
819.90
|
791.10
|
800.25 |
| SUNPHARMA
|
620.00
|
630.00
|
605.10
|
624.50 |
| HCLTECH
|
435.00
|
436.00
|
407.65
|
426.15 |
| SCI
|
153.10
|
153.90
|
149.60
|
151.65 |
| NATIONALUM
|
166.40
|
168.00
|
164.00
|
165.10 |
| DABUR
|
144.00
|
146.80
|
143.00
|
145.25 |
| HINDPETRO
|
294.00
|
296.50
|
288.25
|
291.60 |
| ABB
|
1496.00
|
1517.85
|
1465.00
|
1474.35 |
| COLGATE
|
260.10
|
261.00
|
248.10
|
250.10 |
| GLAXO
|
885.00
|
885.50
|
860.05
|
866.50 |
Last
Update : 24 August, 2005, 16:00PM
|
