|
Indices opened the day in positive territory but the gains
lasted only a moment. As expected, record oil prices and
weakness across other Asian markets took their toll and
the frontline indices were down almost one and a half
per cent within minutes of opening.
Frontline stocks made a slow and steady recovery for the
rest of the day as buying emerged at lower levels. While
oil and auto stocks were the most affected, select technology
stocks like Infosys and telecom major Bharti were among
the gainers.
Markets across Asia closed substantially lower on record
oil prices. The Japanese and Hong Kong indices lost a
per cent each while Taiwan lost well over a per cent.
Stocks are down across major European markets in early
trades today.
Sensex closed at 7634, a loss of 46 points, and the Nifty
at 2338, a loss of 19 points. Nifty September futures
closed at a discount of 32 points to the spot index.
IPCL, Bharti and Hindalco were the biggest gainers on
the Nifty while BPCL, HCL Technologies and ICICI Bank
were the major losers.
Crude futures for October surged over 6 per cent to cross
the $70 mark for the first time in early Asian trades
as Hurricane Katrina threatens oil production facilities
in the Gulf of Mexico. Production from the region, which
produces over 2 million barrels a day, is expected to
decline by more than 60 per cent.
Some refineries on the US east coast have also been shut
down which would put more pressure on the tight supply
position. Crude is trading with gains of over 5 per cent
at $69.7 per barrel in early European trades today.
According to media reports, Reliance Industries is in
negotiations to buy the petrochemical unit of British
oil major BP. Last year BP had spun off the unit as a
separate subsidiary called Innovene, which is based in
the US. According to reports, Reliance completed the due
diligence last week and is in the process of making a
financial bid.
Innovene has most of its production facilities in Europe
and had a turnover of $15 billion, or over Rs65,000 crore,
last year. The company is the 5th largest petrochemicals
player globally and reportedly has assets of over $8 billion.
If market talk is to be believed, the Reliance bid may
be in the region of Rs30,000 crore. If successful, the
deal would make Reliance one of the largest petrochemical
companies globally.There are also market rumours that
Reliance is considering other overseas buyouts in the
petrochemicals space, though much smaller than Innovene.
The stock closed the day with marginal gains.
There are reports that BPCL has revived its plans to acquire
a minority stake in Singapore Petroleum. The PSU oil marketing
company has reportedly offered to take a minority stake
in Singapore Petroleum in return for the Singapore company
taking a strategic stake in the proposed refineries of
BPCL. The stock closed almost 4 per cent lower.
ONGC has stated that commercial production of natural
gas from the K-G basin would begin by April 2006. The
company would also start production at 2 new oil fields
in Bombay High next year. The 2 new fields are expected
to produce 18,000 barrels of crude per day.
Meanwhile, the government of Kazakhstan has refused to
get involved in the sale of Petro Kazakhstan to CNPC of
China. The ONGC-Mittal combine was a strong contender
and ONGC has been trying various options to help submit
a revised bid. With this official statement, the deal
looks all set to be finalised in favour of CNPC.
GAIL is planning to start drilling for oil in the Bengal
basin in a month or two. The company was awarded the exploration
block along with Gazprom of Russia. GAIL would invest
Rs600 crore over the next few years for oil and gas exploration.
The company is also in discussions to build gas pipelines
in Europe.
TCS would seek an exemption from SEBI on last week's revised
notification on 25 per cent minimum public holding in
listed companies. The public holding in the company is
only around 15 per cent and if SEBI turns down the request,
TCS would have to increase the public holding within the
next 2 years.
Zee Telefilms gained over 2 per cent in early trades on
reports that the company has emerged as the highest bidder
for cricket telecasting rights. The company was awarded
the rights last year but the contract was cancelled later
after it was challenged in court. The stock closed with
gains of close to 2 per cent.
Mid-Cap Action
Mid-caps
were better off following the strong gains on the last
2 days of the previous week. Many of the major mid-cap
stocks gained substantially and kept the index from falling
as much as the frontline indices. The CNX Mid-Cap closed
the day at 3593, a loss of 15 points.
The
government may soon allow sugar exports to Pakistan. A
decision is expected as early as within a week. The government
of Pakistan had allowed imports from India earlier and
has reportedly also agreed to receive delivery from India
across the land border instead of at a seaport like Karachi.
According
to reports, Petronet LNG is in negotiations with RasGas
of Qatar for import of an additional 2 million tonnes
of LNG. RasGas is already committed to supply 5 million
tonnes per annum at Petronet's Dahej terminal and 2.5
million tonnes at the proposed Kochi terminal.
The
board of directors of United Western Bank has approved
a bonus issue in the ratio of one share for every 5 shares
held. The board has also approved a rights issue in the
ratio of 1 share for every 2 shares held at Rs24 per share.
.
Aftek Infosys would acquire a large stake in US based
V-Soft, which offers engineering solutions. Aftek has
an option to fully acquire the company over the next 4
years.
Small-cap
software company Virinchi Technologies has agreed to buy
Ksoft for $2.66 million in cash and stock. KSoft is a
provider of business intelligence and SAP implementation
solution. The combined entity is expected to post a top
line of Rs33 crore for the current year.
Mid-cap
technology stocks saw considerable buying interest today.
Visual Soft, 3i Infotech and Geodesic Info were among
the major gainers.
Pharma company Cadila is planning to acquire a large stake
in a biotechnology company base in Europe at a cost of
Rs40 crore.
Pidilitie
Industries, manufacturers of Fevicol, has approved a stock
split in the ratio of 10 shares of Re1 each for every
Rs10 share.
Deccan
Chronicle closed with gains of over 16 per cent after
the company said its board would meet next week to consider
various options for organic and inorganic growth
Flex
Industries and Flex Engineering continue their strong
rally from last week. Both stocks gained over 13 per cent
each on market rumours of a debt-restructuring programme.
Subhash
Projects has won a contract from the Delhi Water Board
for construction of an effluent pumping station. The order
is reportedly worth close to Rs50 crore.
 Jain
Studios, Mangalam Timber and Amtrex Appliances were among
the best performing stocks among mid-caps.
Eicher
Limited, Praj Industries and Geodesic Info 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
|
7,634.43 |
-
45.79 |
| NIFTY
|
2,337.65
|
-19.40
|
Last
Update : 29 August, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| BHARTI
TELE |
314.00
|
324.00
|
304.10
|
316.85 |
| HINDALCO
IN |
1,377.00
|
1,393.00
|
1,350.00
|
1,388.05 |
| HDFC
BANK LT |
636.55
|
646.10
|
628.55
|
643.00 |
| LARSEN
& TOUBRO LTD. |
1,325.00
|
1,343.90
|
1,321.00
|
1,339.70 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,273.00
|
2,302.00
|
2,252.00
|
2,292.25 |
| RELIANCE
|
703.00
|
707.35
|
693.00
|
700.00 |
| NTPC
LTD |
99.00
|
99.60
|
98.00
|
99.10 |
| CIPLA
LTD. |
351.25
|
351.95
|
341.00
|
342.65 |
| BHEL
|
1,083.00
|
1,084.00
|
1,055.25
|
1,056.00 |
| DR.REDDY'S
LABORATORIES LTD. |
791.10
|
799.90
|
771.65
|
776.90 |
| HOUSING
DEVELOPMENT FINANCE CO |
892.00
|
893.00
|
868.05
|
870.25 |
| WIPRO
LTD. |
360.00
|
361.00
|
350.10
|
351.55 |
| BAJAJ
AUTO |
1,405.00
|
1,405.00
|
1,360.00
|
1,377.20 |
| RANBAXY
LABORATORIES LTD. |
525.00
|
530.00
|
514.00
|
519.60 |
| ICICI
BANK L |
483.75
|
483.75
|
470.00
|
471.75 |
| TATA
MOTORS |
473.00
|
479.40
|
457.05
|
464.75 |
| HEROHONDA
M |
655.00
|
655.00
|
635.00
|
641.95 |
| MARUTI
UDYOG |
472.00
|
480.00
|
461.55
|
465.85 |
| SATYAM
COMP |
509.00
|
509.00
|
495.25
|
500.50 |
| TATA
POWER |
427.00
|
427.25
|
418.80
|
421.35 |
| RELIANCE
ENR |
578.50
|
582.00
|
567.00
|
570.45 |
| TATA
IRON AND STEEL CO. LTD. |
392.15
|
393.00
|
378.60
|
384.00 |
| ONG
CORP LTD |
983.70
|
984.00
|
961.00
|
967.55 |
| STATE
BANK OF INDIA |
782.00
|
785.00
|
764.10
|
772.75 |
| I
T C LTD |
1,725.00
|
1,725.00
|
1,695.00
|
1,700.75 |
| HINDUSTAN
LEVER LTD. |
163.25 |
164.00
|
159.80
|
161.95 |
| GRASIM
INDUSTRIES LTD. |
1,276.00
|
1,297.00
|
1,258.10
|
1,287.60 |
Last
Update : 29 August, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
706.00
|
725.00
|
693.05
|
700.35 |
| INFOSYSTCH
|
2285.00
|
2306.70
|
2250.05
|
2301.20 |
| VSNL
|
375.90
|
378.00
|
359.20
|
374.00 |
| SATYAMCOMP
|
508.00
|
508.00
|
495.20
|
500.50 |
| TISCO
|
390.00
|
390.00
|
378.20
|
384.15 |
| SBIN
|
784.00
|
784.00
|
750.00
|
770.80 |
| TCS
|
1370.00
|
1378.00
|
1330.00
|
1355.35 |
| ONGC
|
987.30
|
987.30
|
960.00
|
968.70 |
| TATAMOTORS
|
473.00
|
473.00
|
451.35
|
464.85 |
| BHARTI
|
314.90
|
323.45
|
302.70
|
317.35 |
| SAIL
|
62.50
|
62.70
|
61.30
|
62.00 |
| ZEETELE
|
175.70
|
177.75
|
172.55
|
174.15 |
| ACC
|
472.45
|
476.50
|
465.10
|
471.95 |
| RANBAXY
|
530.05
|
533.70
|
512.25
|
520.35 |
| HDFCBANK
|
643.00
|
647.00
|
628.25
|
638.80 |
| WIPRO
|
362.85
|
362.85
|
350.65
|
351.75 |
| LT
|
1338.00
|
1345.00
|
1320.00
|
1332.30 |
| ITC
|
1720.00
|
1728.00
|
1690.00
|
1702.25 |
| HDFC |
890.00 |
890.00
|
868.00
|
871.70 |
| M&M |
730.55 |
739.90
|
709.05
|
719.40 |
| MARUTI
|
474.90
|
475.00
|
460.00
|
465.75 |
| HINDLEVER
|
163.95
|
165.00
|
159.75
|
162.35 |
| DRREDDY
|
790.00
|
796.60
|
771.70
|
777.45 |
| IPCL
|
181.40
|
188.00
|
179.30
|
186.00 |
| REL
|
584.00
|
584.00
|
565.00
|
572.65 |
| ICICIBANK
|
478.30
|
481.80
|
460.00
|
467.95 |
| HINDPETRO
|
296.00
|
296.00
|
289.00
|
290.70 |
| PNB
|
401.80
|
403.00
|
393.55
|
398.20 |
| HEROHONDA
|
668.70
|
668.70
|
635.00
|
643.55 |
| GUJAMBCEM
|
65.85
|
66.50
|
63.80
|
65.35 |
| BHEL
|
1099.00
|
1099.00
|
1055.20
|
1060.35 |
| TATAPOWER
|
430.00
|
430.00
|
419.10
|
422.95 |
| HINDALC0
|
1374.00
|
1395.00
|
1351.05
|
1387.20 |
| GAIL
|
233.55
|
233.55
|
227.00
|
230.05 |
| ORIENTBANK
|
259.00
|
259.00
|
250.00
|
251.10 |
| BAJAJAUTO
|
1422.00
|
1438.00
|
1360.00
|
1375.80 |
| CIPLA
|
355.95
|
355.95
|
340.50
|
341.70 |
| GRASIM
|
1277.25
|
1295.95
|
1260.00
|
1284.10 |
| TATATEA
|
811.10
|
824.85
|
802.25
|
808.15 |
| BPCL
|
370.10
|
371.90
|
354.60
|
357.30 |
| ABB
|
1550.50
|
1592.00
|
1522.05
|
1576.50 |
| MTNL
|
125.20
|
125.80
|
122.00
|
125.45 |
| SUNPHARMA
|
635.00
|
640.00
|
620.00
|
631.60 |
| NATIONALUM
|
167.00
|
167.00
|
161.20
|
165.50 |
| TATACHEM
|
183.55
|
184.00
|
180.55
|
182.65 |
| HCLTECH
|
435.00
|
435.50
|
415.55
|
425.30 |
| DABUR
|
151.00
|
152.90
|
148.05
|
149.80 |
| SCI |
153.15 |
153.50
|
151.10
|
153.15 |
| GLAXO
|
876.30
|
876.30
|
850.55
|
855.10 |
| COLGATE
|
243.00
|
248.10
|
240.00
|
243.90 |
Last
Update : 29 August, 2005, 16:00PM
|
