|
The indices opened with a strong positive gap from yesterday's
closing levels, encouraged by the recovery in US markets
yesterday. A relatively modest closing level for crude
oil yesterday after posting record highs of over $70 in
intra-day trades also helped market sentiment.
The rally was led by technology stocks as the Rupee slipped
to a nine-week low raising expectations of better earnings
growth for software exporters. The rupee has been weak
for many days now as FII inflows have slowed down and
the country's current account deficit continues to expand
on higher crude oil import bills.
The technology pack was led by Satyam computers with gains
of over 4 per cent followed by TCS and Wipro with gains
of over 2 per cent each. HCL Technologies was the biggest
gainer among technology stocks in the index, closing over
6 per cent higher. Infosys gained close to 2 per cent.
Markets maintained a steady up trend for most of the day
and picked up strength in afternoon trades on short covering.
The last half-hour saw some profit booking by intra-day
traders, but the decline from the day's highs was marginal.
Sensex closed at 7745, a gain of 111 points, and the Nifty
at 2368, a gain of 30 points. Nifty September futures
closed at a discount of 21 points to the spot index.
Zee Tele, HCL Technologies and Satyam were the biggest
gainers on the Nifty while Reliance Energy, M&M and
Sun Pharma were the major losers.
US markets closed higher yesterday as oil stocks surged
in higher crude prices. Damages reported from the Hurricane
Katrina were also lower than earlier expectations as the
storm weakened after hitting US coast.
The Dow and S&P 500 closed with gains of well over
half-a-per cent each. Gains on the NASDAQ were higher
at over three-quarters of a per cent.
Crude futures for October delivery declined in afternoon
trades yesterday after crossing the $70 mark for the first
time in early trades. The commodity closed the day at
$67.2 per barrel on the NYMEX yesterday. Crude is trading
with gains of over a per cent at $68 per barrel in early
European trades today.
Indian ADR's had a good day in the US markets yesterday.
MTNL was the biggest gainer closing over 2 per cent higher
while the other telecom stock VSNL closed a per cent higher.
HDFC Bank closed more than a per cent higher while ICICI
Bank also closed higher.
Among the technology ADR's, Wipro and Infosys closed more
than a per cent higher while Satyam gained close to a
per cent. Tata Motors and Dr. Reddy's were the biggest
losers closing with losses of over 2 per cent each.
There is considerable market speculation that Infosys
is close to finalising a large multi-year contract with
a European bank. There have been many reports over the
last few months about the negotiations for the contract.
Infosys had declined to comment on such reports.
The new order, believed to be from Swiss banking major
UBS, is now said to be considerably bigger than earlier
reports. The order is reportedly worth $500 million as
against $100 million earlier.
TCS has completed implementation of core banking solutions
in over 4,000 branches of SBI across the country. With
this SBI now boasts the largest branch network operating
on core banking software globally.
There are media reports that SBI is planning to set up
a separate company to offer banking software solutions
in partnership with a large IT company. According to these
reports, the bank is in discussions with TCS on this project,
which would leverage SBI's domain expertise with the technology
skills of the IT company. SBI closed more than 2 per cent
higher.
Tata Steel has signed an agreement with Nippon Steel for
technical assistance during implementation of its proposed
integrated steel mill in Orissa. The company has initiated
land acquisition for the project, the first phase of which
is expected to be completed by 2009. The stock closed
almost 2 per cent higher.
Meanwhile, engineering and construction major L&T
has reportedly initiated preliminary discussions with
Posco of South Korea for the construction of the latter's
proposed steel plant in Orissa. The 12-million tonnes
per annum plant would be set up in two phases involving
a total investment of $12 billion. The stock gained three-quarters
of a per cent.
Ranbaxy is taking the legal route to challenge the extension
of Pfizer patent on cholesterol lowering drug, Atorvastatin.
According to media reports, Ranbaxy has filed suits against
the patent extension in US and European courts. Atorvastatin
is a blockbuster product for Pfizer and the company had
succeeded in extending the patent after the original patent
expired. The stock closed higher.
ITC is planning to take its apparel brand Wills to the
US and European markets. The company has registered the
brand in these markets and is currently believed to be
in discussions with major retailers. ITC is planning to
achieve 10 per cent of its garments business from overseas
markets in the next few years.
ITC is also planning to set up own garment retail stores
in East Asian countries like Philippines and Indonesia.
The company would expand the garment manufacturing capacity
at its Bangalore unit to target sales to major international
retailers. The stock closed almost half a per cent higher.
Reliance Industries has stated that there are no proposals
before its board for the acquisition of Innovene, a subsidiary
of British oil major BP, as reported in the media. The
company was replying to queries by the exchanges after
such reports yesterday. The stock closed a per cent higher.
According to news agency reports, ONGC Videsh has emerged
as the highest bidder for some of the oil and gas blocks
in Nigeria. The stock gained close to a per cent.
Zee Tele was the biggest gainer among index stocks on
market speculation about the cricket broadcasting rights.
There is market talk about the contract going to Zee and
a decision to be announced as early as within a week.
The stock closed over 6 per cent higher.
FMCG stocks also saw considerable demand today. Both HLL
and Colgate closed with gains of two and a half per cent
each.
Mid-Cap Action
Mid-caps
also resumed their up trend after yesterday's correction.
However, gains on the mid-cap index were lower than the
frontline indices. The CNX Mid-Cap closed the day at 3630,
a gain of 37 points or a per cent.
After
establishing its premier position in the domestic market,
NDTV is spreading its wings overseas. The company has
signed a joint venture agreement with Astro Broadcasting
to run television channels in East Asian countries. The
JV, in which NDTV would hold a 20 per cent stake initially,
would start with Indonesia and Malaysia. The stock closed
with marginal gains.
Ballarpur
Industries, the country's largest paper manufacturer,
has reported a 26 per cent rise in profits for the year
ended June 2005. Total revenues were marginally higher
during the year. For the fourth quarter ended June, the
company has reported an 8 per cent growth in profits on
a marginal increase in revenues. The stock closed 2 per
cent higher.
Bajaj
Hindustan, the largest sugar company in the country, has
acquired a majority stake in Pratappur Sugar from its
promoters. The acquisition has been made at Rs55 per share
for a total consideration of close to Rs11 crore. Bajaj
Hindustan would make an open offer for another 20 per
cent at a price of Rs56.5 per share. Bajaj Hindustan closed
with gains of 5 per cent.
Meanwhile,
Bajaj Hindustan has awarded the contract to build its
new sugar mill in the state of UP to Era Constructions.
The order is worth over Rs16 crore and would be completed
in 5 months.
Hindustan
Construction has won a new order for the construction
of a tunnel for a new railway line being built in the
state of Jammu & Kashmir. The order is worth over
Rs170 crore.
Tata
group company Trent has acquired a 76 per cent stake in
Chennai based speciality retailer Landmark for Rs104 crore.
The target company has stores in Chennai, Bangalore and
Kolkata and is one of the largest retailers of books and
gifts. Landmark had revenues of Rs95 crore during the
last financial year. Trent closed with gains of over 5
per cent.
Mirza
Tanners, a leading exporter of leather accessories, is
planning to raise $50 million through an overseas issue
of convertible bonds.
Spanco
Telesystems bounced back into attention and was locked
in the 20 per cent upper circuit in late afternoon trades.
ADAE group had acquired a 14.9 per cent stake in the company
recently.
Surana
Telecom was locked in the 20 per cent upper circuit in
early afternoon trades on reports that the company has
tied up with a Chinese manufacturer of telecom equipment.
The company had received some orders from BSNL for equipment
and is hopeful of more business after the tie-up.
 Eicher
Limited, Indian Card Clothing and Jagsonpal Pharma were
among the best performing stocks among mid-caps.
FCL
Technologies, Flex Industries and Windsor Machines 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
|
7,745.00
|
+
110.57 |
| NIFTY
|
2,367.75
|
+
30.10 |
Last
Update : 30 August, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| HINDALCO
IN |
144.95
|
144.95
|
140.05
|
141.85 |
| RELIANCE
ENR |
572.00
|
576.15
|
563.25
|
565.35 |
| BHARTI
TELE |
319.95
|
319.95
|
314.00
|
316.00 |
| HEROHONDA
M |
644.90
|
646.75
|
638.00
|
640.40 |
| SATYAM
COMP |
502.50
|
524.00
|
502.50
|
522.55 |
| HOUSING
DEVELOPMENT FINANCE CO |
875.00
|
927.40
|
875.00
|
895.80 |
| HINDUSTAN
LEVER LTD. |
164.45
|
167.40
|
164.10
|
166.55 |
| NTPC
LTD |
99.80
|
102.15
|
99.00
|
101.85 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,300.00
|
2,351.95
|
2,300.00
|
2,346.55 |
| TATA
POWER |
424.75
|
432.00
|
424.00
|
431.20 |
| TCS
LTD |
1,365.00
|
1,391.00
|
1,361.00
|
1,384.05 |
| STATE
BANK OF INDIA |
774.70
|
791.80
|
774.25
|
788.85 |
| DR.REDDY'S
LABORATORIES LTD. |
777.00
|
796.00
|
772.70
|
792.35 |
| WIPRO
LTD. |
360.10
|
360.90
|
354.15
|
358.45 |
| TATA
IRON AND STEEL CO. LTD. |
381.00
|
392.80
|
381.00
|
390.95 |
| MARUTI
UDYOG |
467.00
|
474.50
|
466.15
|
472.60 |
| HDFC
BANK LT |
641.00
|
648.95
|
640.50
|
646.70 |
| ASSOCIATED
CEMENT COMPANIES LT |
472.80
|
478.00
|
471.00
|
476.30 |
| GRASIM
INDUSTRIES LTD. |
1,290.00
|
1,311.00
|
1,287.00
|
1,303.00 |
| RELIANCE
|
702.05
|
709.60
|
699.20
|
707.65 |
| ICICI
BANK L |
473.00
|
480.00
|
472.00
|
476.75 |
| ONG
CORP LTD |
970.00
|
989.00
|
967.10
|
977.35 |
| GUJARAT
AMBUJA CEMENTS LTD. |
65.95
|
66.25
|
65.50
|
65.85 |
| RANBAXY
LABORATORIES LTD. |
525.00
|
531.20
|
520.00
|
522.75 |
Last
Update : 30 August, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
703.00
|
709.80
|
699.05
|
707.60 |
| SATYAMCOMP
|
501.30
|
523.45
|
501.20
|
522.05 |
| INFOSYSTCH
|
2309.00
|
2351.95
|
2302.00
|
2346.90 |
| ZEETELE
|
175.00
|
188.00
|
175.00
|
185.60 |
| VSNL
|
376.00
|
379.80
|
370.00
|
376.55 |
| TCS |
1355.65 |
1391.00
|
1355.65
|
1384.35 |
| SBIN
|
774.75
|
790.95
|
773.25
|
787.85 |
| TISCO
|
384.00
|
392.60
|
384.00
|
391.15 |
| ONGC
|
970.00
|
988.00
|
966.70
|
976.45 |
| ITC
|
1714.00
|
1735.05
|
1704.00
|
1709.05 |
| HDFC
|
874.00
|
904.70
|
873.70
|
898.25 |
| REL
|
573.00
|
577.00
|
563.50
|
566.55 |
| LT
|
1344.90
|
1371.90
|
1330.00
|
1342.60 |
| SAIL
|
62.15
|
63.45
|
62.00
|
62.95 |
| M&M
|
724.00
|
724.00
|
710.15
|
712.65 |
| HCLTECH
|
431.70
|
454.85
|
428.00
|
451.85 |
| TATAMOTORS
|
464.15
|
469.90
|
463.00
|
466.80 |
| RANBAXY
|
533.00
|
533.00
|
520.00
|
522.50 |
| WIPRO
|
353.00
|
362.00
|
353.00
|
358.95 |
| HINDLEVER
|
163.25
|
167.40
|
163.25
|
166.60 |
| HINDALC0
|
145.00
|
145.00
|
141.00
|
141.95 |
| ACC
|
473.90
|
479.90
|
471.50
|
476.65 |
| ICICIBANK
|
470.80
|
480.00
|
470.80
|
477.10 |
| IPCL
|
187.85
|
187.85
|
183.20
|
185.25 |
| HDFCBANK
|
635.00
|
649.95
|
635.00
|
646.60 |
| PNB
|
401.90
|
403.40
|
396.55
|
400.40 |
| BHARTI
|
318.00
|
319.90
|
314.25
|
315.75 |
| GUJAMBCEM
|
65.95
|
66.15
|
65.45
|
65.80 |
| MARUTI
|
471.00
|
474.85
|
466.20
|
472.60 |
| BHEL
|
1063.00
|
1082.50
|
1060.00
|
1064.85 |
| HEROHONDA
|
640.00
|
645.90
|
630.25
|
641.20 |
| TATATEA
|
806.00
|
819.00
|
805.00
|
808.00 |
| GAIL
|
231.90
|
232.70
|
230.00
|
230.50 |
| SCI
|
160.00
|
160.00
|
152.25
|
158.35 |
| GRASIM
|
1280.25
|
1316.00
|
1280.00
|
1305.55 |
| TATAPOWER
|
426.90
|
432.00
|
423.25
|
431.30 |
| HINDPETRO
|
291.00
|
294.95
|
291.00
|
293.05 |
| BAJAJAUTO
|
1400.00
|
1410.00
|
1370.00
|
1379.35 |
| TATACHEM
|
185.00
|
187.45
|
184.00
|
186.30 |
| CIPLA
|
345.00
|
347.95
|
342.00
|
344.25 |
| ABB
|
1580.00
|
1598.00
|
1561.00
|
1586.65 |
| MTNL
|
125.75
|
127.25
|
125.00
|
125.20 |
| ORIENTBANK
|
254.95
|
256.20
|
252.15
|
255.55 |
| DRREDDY
|
780.00
|
801.00
|
777.10
|
793.15 |
| BPCL
|
358.00
|
361.75
|
357.00
|
357.95 |
| DABUR
|
151.00
|
152.80
|
149.25
|
151.75 |
| SUNPHARMA
|
623.00
|
634.75
|
622.45
|
626.45 |
| NATIONALUM
|
165.10
|
168.50
|
165.10
|
166.65 |
| COLGATE
|
246.40
|
252.05
|
242.40
|
250.10 |
| GLAXO
|
852.00
|
875.00
|
846.50
|
871.30 |
Last
Update : 30 August, 2005, 16:00PM
|
