|
Markets opened the day on a strong note, taking off from
yesterday's late surge. Strength across most Asian markets
and steady trend in the US markets added to the positive
sentiment.
Within an hour, the indices started their downtrend as
selling emerged at higher levels and the weakness remained
till late in the afternoon. The last hour saw the markets
staging a recovery and the indices inched back into positive
territory.
Sensex
closed at 7680, a gain of 20 points, and the Nifty at
2357, a gain of 3 points. Nifty September futures closed
at a discount of 23 points to the spot index.
BPCL,
TCS and Gujarat Ambuja Cements were the only stocks on
the Nifty, which managed to close with marginal gains
while HDFC Bank, Wipro and SAIL were the major losers.
US
markets recovered yesterday from the previous day's fall,
though gains were marginal. The Dow and S&P 500 closed
with gains of one fifths of a per cent each. NASDAQ closed
with gains of more than a quarter of a per cent.
Crude
futures for October delivery recovered in afternoon trades
and closed with marginal gains at $67.49 per barrel yesterday.
Crude markets remained steady, as the hurricane did not
cause much damage to the oil facilities as it hit the
eastern coast of US. The commodity is trading marginally
lower in early European trades today.
Some
of the Indian ADR's recovered from the losses of previous
two days in the US markets yesterday. The recovery was
led by banking stocks, which had lost considerable ground
in the first three days of the week. ICICI Bank closed
a per cent higher while HDFC Bank gained close to 3 per
cent. Among the telecom stocks, VSNL closed marginally
higher while MTNL closed lower.
Among
the technology ADR's, Wipro was the major gainer with
gains of well over 2 per cent. Satyam gained over half
a per cent while Infosys closed with marginal gains. Tata
Motors and Dr. Reddy's also closed with marginal losses.
Zee
Tele has been awarded the telecast rights for the domestic
football league by the Indian Football Association. The
board of directors of Zee Tele has also decided to transfer
the broadcasting business to Zee News to comply with government
guidelines. The stock closed lower.
Tata
Motors is planning to launch the Indigo sedan in the Russian
market. The company would initially import the cars from
India and may eventually set up an assembly operation
to produce 30,000 cars per annum. The stock closed with
gains of over half a per cent.
Indian
Oil would raise $670 million from overseas loans to part-finance
the higher crude import bills. $200 million would be used
to repay existing loans. Overseas lenders include the
Singapore branch of ICICI Bank. The stock closed flat.
Indian
Oil will start production at its new diesel hydro treating
unit at the Panipat refinery within a few months. This
would help the company to stop imports of low sulphur
diesel. The company will also start operations at its
half a million tonnes per annum naphtha cracker by end
of the year. Indian Oil also announced that it would upgrade
its Koyali refinery to process more sour crude.
Meanwhile
IBP Limited, a subsidiary of Indian Oil, has asked the
government to raise retail fuel prices to avoid bankruptcy.
The company has warned that it would go bankrupt by next
month if the current situation prevails.
Engineering
major Larsen & Toubro has announced that it will acquire
Maharashtra based electrical equipment manufacturer Datar
Switchgear. L&T will merge the company with itself
and will also assume Rs24 crore of debt. The stock closed
marginally lower.
Datar
is a leading domestic manufacturer of electrical equipment
for the building sector. The company has strong technological
capabilities, which would help L&T to strengthen its
presence in the electrical equipment segment.
BHEL
is planning a tie up with Alstom of France to acquire
the technology for large thermal generating units of 600
MW and above. BHEL does not have the capability to build
large supercritical thermal plants at present. The tie
up would help the PSU bid for larger projects. The stock
closed with losses of close to 2 per cent.
Cement
stocks saw strong buying interest in today's trade. Both
ACC and Gujarat Ambuja gained close to 3 per cent each.
Among
the frontline technology stocks, TCS gained over 3 per
cent while Satyam closed over 2 per cent higher. Wipro
lost over 2 per cent.
Mid-Cap
Action
Mid-caps
were in a different mood altogether as many of them saw
frenzied buying. Many of the prominent mid-caps surged
ahead on news flows and strong trader interest. The CNX
Mid-Cap index is back above the 3600 levels and closed
the day at 3608, a gain of 59 points.
There
are reports that GE Shipping would be split into two separate
companies, one handling the core shipping business and
the other taking over the offshore oil field services.
The two Sheth brothers Bharat and Vijay, who are currently
deputy chairman and managing director respectively of
GE Shipping, would manage the companies separately.
Bharat
Sheth is expected to get the shipping business while the
offshore services business would go to younger brother
Vijay. The offshore services business would be listed
on the exchanges as a separate company in due course.
The stock closed almost a per cent higher.
Orders
continue to flow for construction companies. JP Associates
announced a new order from the government of Andhra Pradesh.
The order for irrigation projects in the state is reportedly
worth Rs1900 crore.
Stocks
of construction companies saw considerable buying interest
in early trades. Nagarjuna Construction, Simplex Concrete
Piles and Patel Engineering were among the major gainers.
Textile
stocks also met with considerable demand today. Alok Textiles,
Bombay Dyeing and Rajasthan Spinning were among the major
gainers.
Many
mid-sized companies are planning to come out with overseas
issues to raise resources to finance expansion plans.
As many as six companies announced their GDR/FCCB issue
plans today.
Construction
company IVRCL is planning to raise $140 million through
an issue of GDR's or FCCB's, subject to shareholder approval,
to finance future projects.
The
board of directors of Eveready Industries has approved
plans to raise $40 million through issue of GDR or FCCB.
The stock surged over 6 per cent before closing with gains
of close to 5 per cent.
Another
mid-cap company looking to raise funds from the overseas
markets is Graphite India. The board of directors of Graphite
India has approved plans to raise up to $50 million through
an issue of GDR's or FCCB's. The board has also approved
to increase the FII investment limit to 40 per cent from
24 per cent.
Domestic
stock brokerage IL&FS Investmart is also planning
to raise funds from overseas markets. The company's board
would meet shortly to consider the various options. IL&FS
is also planning to set up a subsidiary in the Middle
East to offer broking and other financial services.
The
board of directors of Essar Oil has approved an overseas
issue of convertible instruments to raise $300 million.
The company's refinery in the state of Gujarat is expected
to start production by early next year. The stock gained
over 5 per cent in early trades.
Kajaria
Ceramics was the last one to announce an FCCB/GDR issue
to raise $30 million. The board has also proposed to split
every Rs10 equity share into 5 shares of Rs2 each. The
stock gained 4 per cent.
McDowell
was one of the major gainers among mid-cap stocks closing
the day with gains of over 17 per cent. There were media
reports that the UB group would sell a strategic stake
to a foreign investor after the merger of McDowell and
Shaw Wallace to form UB Spirits.
Honeywell
Automation, formerly Tata Honeywell, has won a $48 million
contract in association with an Israeli partner from Indian
Oil and HPCL. Under the contract Honeywell would provide
complete automation solutions for more than 1,000 retail
outlets of the oil companies.
Auto
ancillary company Talbros Automotive would come out with
a public issue in September to raise Rs50 crore. The issue
would finance the expansion plans of the company.
Talbros
is planning to set up a new forging unit at a cost of
close to Rs32 crore. The company would invest close to
Rs5 crore in a joint venture with a Japanese ancillary
company apart from expanding its gasket manufacturing
capacity.
S
Kumars Nationwide would invest Rs400 crore over the next
3 years to expand its retail network. The number of own
showrooms would rise to 200 from the current 16.
There
are media reports that Adlabs Films is planning to acquire
Delhi based multiplex network PVR Cinemas. The Delhi based
company is privately held and has one of the best-known
brands among multiplexes in North India. The company later
denied the reports. Adlabs is majority owned by ADAE group.
 Flex
Engineering, FCL Technologies and Shreyas Shipping were
among the best performing stocks among mid-caps.
Alfa
Laval, Bindal Agro and Zodiac JRD 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
|
7,680.22
|
+19.80
|
| NIFTY
|
2,357.05
|
+2.50
|
Last
Update : 26 August, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| HDFC
BANK LT |
659.80
|
660.00
|
630.00 |
635.80 |
| BHEL
|
1,105.00
|
1,105.00
|
1,051.15
|
1,086.20 |
| HINDALCO
IN |
1,395.00
|
1,415.00
|
1,359.10
|
1,363.20 |
| WIPRO
LTD. |
366.10
|
370.00
|
356.50
|
359.05 |
| ONG
CORP LTD |
995.00
|
995.00
|
975.05
|
979.65 |
| BHARTI
TELE |
314.50
|
314.90
|
307.10
|
310.50 |
| TATA
POWER |
433.00
|
434.00
|
425.00
|
427.30 |
| BAJAJ
AUTO |
1,380.00
|
1,410.00
|
1,366.55
|
1,400.15 |
| RANBAXY
LABORATORIES LTD. |
534.10
|
535.00
|
522.10
|
529.25 |
| GRASIM
INDUSTRIES LTD. |
1,305.00
|
1,305.00
|
1,285.55
|
1,293.00 |
| ICICI
BANK L |
486.90
|
489.00
|
478.00
|
480.45 |
| STATE
BANK OF INDIA |
783.90
|
787.00
|
775.50
|
780.35 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,300.00
|
2,309.90
|
2,260.05
|
2,270.05 |
| TCS
LTD |
1,325.00
|
1,370.00
|
1,325.00
|
1,364.30 |
| GUJARAT
AMBUJA CEMENTS LTD. |
64.40
|
65.60
|
64.00
|
65.35 |
| ASSOCIATED
CEMENT COMPANIES LT |
460.00
|
475.00
|
459.55
|
471.75 |
| MARUTI
UDYOG |
467.00
|
478.45
|
464.50
|
473.35 |
| NTPC
LTD |
97.80
|
99.60
|
97.80
|
99.05 |
| SATYAM
COMP |
503.90
|
510.00
|
497.10
|
507.95 |
| TATA
IRON AND STEEL CO. LTD. |
388.40
|
391.00
|
382.00
|
389.30 |
| RELIANCE
ENR |
577.00
|
582.60
|
572.05
|
578.45 |
| LARSEN
& TOUBRO LTD. |
1,318.00
|
1,339.00
|
1,313.00
|
1,325.30 |
| CIPLA
LTD. |
353.00
|
357.25
|
350.00
|
353.35 |
| I
T C LTD |
1,710.00
|
1,726.00
|
1,705.50
|
1,716.25 |
| HOUSING
DEVELOPMENT FINANCE CO |
965.00
|
965.00
|
885.15
|
891.75 |
| DR.REDDY'S
LABORATORIES LTD. |
798.45
|
807.90
|
793.00
|
796.70 |
| TATA
MOTORS |
473.50
|
478.40
|
470.50
|
472.65 |
| HINDUSTAN
LEVER LTD. |
164.00
|
165.45
|
162.10
|
163.30 |
| HEROHONDA
M |
656.00
|
671.00
|
648.00
|
652.55 |
| RELIANCE
|
700.00
|
704.00
|
693.80
|
698.55 |
Last
Update : 26 August, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
699.45
|
703.90
|
693.60
|
698.75 |
| INFOSYSTCH
|
2280.00
|
2309.80
|
2260.00
|
2269.30 |
| SATYAMCOMP
|
501.20
|
510.50
|
497.90
|
508.35 |
| TCS |
1328.45 |
1370.00
|
1325.00
|
1364.75 |
| VSNL |
383.00 |
383.90
|
369.30
|
376.20 |
| TISCO
|
395.00
|
398.00
|
383.25
|
389.00 |
| SBIN
|
786.85
|
786.85
|
775.40
|
781.60 |
| SAIL
|
64.00
|
64.40
|
61.90
|
62.40 |
| ONGC
|
1004.90
|
1004.90
|
978.00
|
983.15 |
| M&M |
716.00 |
730.55
|
709.00
|
728.00 |
| TATAMOTORS
|
471.00
|
479.00
|
471.00
|
472.65 |
| MARUTI
|
463.00
|
478.00
|
463.00
|
474.75 |
| HDFC
|
918.00
|
918.00
|
885.00
|
893.05 |
| RANBAXY
|
531.00
|
537.20
|
522.10
|
528.75 |
| ACC
|
460.00
|
475.00
|
459.00
|
471.85 |
| HINDLEVER
|
162.00
|
165.50
|
162.00
|
163.60 |
| BPCL |
357.90 |
374.00
|
355.10
|
371.30 |
| WIPRO
|
366.80
|
369.95
|
355.15
|
359.55 |
| ITC
|
1710.00
|
1725.00
|
1708.00
|
1716.60 |
| HINDALC0
|
1395.00
|
1408.90
|
1356.55
|
1363.45 |
| BHARTI
|
316.00
|
316.95
|
307.00
|
311.20 |
| LT
|
1330.00
|
1338.00
|
1229.90
|
1326.50 |
| HEROHONDA
|
651.00
|
671.65
|
649.05
|
652.05 |
| HDFCBANK
|
659.00
|
663.90
|
630.35
|
634.70 |
| REL
|
568.70
|
581.80
|
568.70
|
579.40 |
| BHEL
|
1110.00
|
1110.00
|
1067.10
|
1089.55 |
| ZEETELE
|
175.00
|
176.00
|
170.00
|
171.20 |
| HCLTECH
|
370.00
|
440.90
|
370.00
|
438.60 |
| ICICIBANK
|
487.95
|
489.00
|
477.30
|
481.60 |
| CIPLA
|
352.80
|
357.00
|
348.00
|
349.95 |
| GUJAMBCEM
|
64.25
|
65.70
|
63.85
|
65.45 |
| GAIL
|
234.40
|
234.40
|
228.50
|
232.25 |
| PNB |
401.00 |
407.00
|
400.00
|
401.95 |
| TATATEA
|
826.00
|
840.00
|
817.05
|
819.65 |
| BAJAJAUTO
|
1392.30
|
1422.00
|
1368.10
|
1412.55 |
| GRASIM
|
1318.90
|
1318.90
|
1285.05
|
1301.90 |
| TATAPOWER
|
435.00
|
435.00
|
427.00
|
428.90 |
| IPCL
|
181.00
|
182.85
|
180.40
|
181.60 |
| HINDPETRO
|
290.00
|
296.90
|
288.05
|
295.05 |
| MTNL
|
123.50
|
125.45
|
122.60
|
125.00 |
| DRREDDY
|
795.00
|
808.95
|
793.20
|
795.70 |
| ABB
|
1500.00
|
1559.90
|
1500.00
|
1551.25 |
| TATACHEM
|
185.00
|
186.00
|
184.00
|
185.20 |
| NATIONALUM
|
168.85
|
170.40
|
164.55
|
167.75 |
| ORIENTBANK
|
264.90
|
264.90
|
254.55
|
256.60 |
| SUNPHARMA
|
630.00
|
635.00
|
620.00
|
632.45 |
| DABUR
|
151.60
|
153.90
|
149.00
|
150.00 |
| SCI
|
154.85
|
154.85
|
151.70
|
154.25 |
| COLGATE
|
251.00
|
253.00
|
247.20
|
249.10 |
| GLAXO |
890.00 |
890.00
|
866.30
|
876.30 |
Last
Update : 26 August, 2005, 16:00PM
|
