|
The Sensex scaled the keenly awaited 8,000-mark today
as frontline stocks continued their rally, helped by the
recovery in global markets and the decline in oil prices.
A positive opening was on the cards today as the US markets
closed with gains for the second day yesterday and oil
prices have dropped almost 10 per cent from last week's
record highs.
The 8000 level was broken in early trades itself as many
of the large stocks opened firm. While many market observers
were expecting a decline after touching the psychologically
important level, the indices remained firm for the rest
of the day on strong institutional support.
After trading within a band till early afternoon, the
frontline indices gained strength in the closing hours
of trade. Traders covering short positions in the absence
of institutional selling was the main reason for the late
surge. The indices closed at the day's highs.
Among the large stocks helping the indices were Infosys,
ONGC, Reliance Industries, Tata Motors and ICICI Bank.
BPCL was the largest gainer among index stocks, closing
more than 5 per cent higher.
Sensex closed at 8053, a gain of 106 points, and the Niftygained
26 points closing at 2454. Nifty September futures closed
at a discount of 7 points to the spot index.
BPCL, Bajaj Auto and HDFC were the biggest gainers on
the Nifty while Wipro, Ranbaxy and Oriental Bank of Commerce
were the major losers.
The US markets continued their strong performance yesterday
as well as the decline in oil prices is helping stocks
across the board. The damages from Hurricane Katrina are
expected to be substantial and investors are betting on
a halt to interest rate hikes by the Fed to help the economy
tide over the difficulties.
After surging well over a per cent each on Tuesday, the
frontline US indices closed the day with decent gains
yesterday. The Dow closed with gains of well over one-third
of a per cent. The NASDAQ and S&P 500 gained one-fifths
of a per cent each to close at their highs for almost
a month.
Indian ADR's, however, had a very indifferent day yesterday
on the US exchanges. Technology ADR's were among the worst
performers with Infosys, Satyam and Wipro all losing more
than a per cent each. Telecom stocks MTNL and VSNL also
closed with losses of 2 and 1 per cent respectively.
ICICI Bank was the biggest loser among all ADR's, closing
almost 3 per cent lower. While Tata Motors gained almost
a per cent, Dr. Reddy's and HDFC Bank also closed with
gains.
Crude prices have been on a downward spiral ever since
the IEA and the US government announced releases from
reserves to ease supplies. The commodity lost well over
2 per cent yesterday to close at $64.37 to a barrel for
the near month futures. Crude futures are inching closer
to the $65 mark in early European trades today.
ONGC suffered a setback in its onshore exploration activities
as one of the rigs deployed in coastal Andhra Pradesh
exploded today. Details of the damage are not known. The
stock closed almost a per cent higher.
Meanwhile, ONGC is expected to receive government sanction
for its proposed wellhead refinery in Rajasthan. The government
has nominated ONGC-MRPL to receive the crude from the
Rajasthan fields of Cairn Energy. ONGC has a 30 per cent
stake in the field, which has reserves of 2.5-billion
barrels of crude. The refinery would have a capacity of
7.5-million tonnes per annum and would involve an investment
of close to Rs8,000 crore.
ONGC may also partner Gujarat State Petroleum Corporation
to develop the latter's huge gas find in the KG basin.
GSPC had made a discovery of 20-trillion cubic feet of
natural gas recently. The development of the field is
expected to cost Rs1,500 crore and commercial production
would start by the end of 2007.
Bharti TeleVentures has teamed up with IBM Global Services
to offer managed services to corporate customers in the
domestic market. While Bharti would provide the telecom
part of the services, IBM would handle the IT infrastructure
and technology services. The stock closed one-and-a-half
per cent higher.
TCS is planning to build a new development facility in
Chennai. Spread over 70 acres, the facility would cost
as much as $175 million when completed over the next two
years. Chennai is already the largest development base
for TCS, employing over 12,000 employees in the city.
The stock gained half-a-per cent.
According to media reports, PSU aluminium major Nalco
is planning to set up a smelter in the Middle East. The
300,000-tonnes per annum smelter being planned in the
UAE would involve an investment of $2.5 billion. The stock
closed more than half-a-per cent higher.
The hike in retail prices of petroleum products did not
have much impact on auto stocks, even though analysts
expect sales to go down in the short term. Tata Motors
added more than 3 per cent. Bajaj Auto closed more than
4 per cent higher while M&M gained over 2 per cent.
Hero Honda and Maruti closed with marginal losses.
August sales of Ashok Leyland were higher by 17 per cent
as compared to the same month of pervious year despite
a 40-per cent decline in export sales. For the first five
months of the current financial year, the company has
achieved a sales growth of 18 per cent despite a slowdown
in the commercial vehicles industry as a whole. The stock
closed more than a per cent higher.
Mid-Cap Action
Mid-caps
also remained strong today though the gains on the mid-cap
index were lower then the frontline indices. The CNX Mid-Cap
index closed the day at a new lifetime high of 3754, a
gain of 28 points or three quarters of a per cent.
Print
media company Deccan Chronicle would raise Rs250 crore
from an FCCB issue to fund expansion plans. The bonds
would have a maturity of five years and would be listed
on an overseas stock exchange. The company had announced
the acquisition of a retail store chain earlier this week.
Low
cost airline operator SpiceJet would raise $20 million
from preferential allotment to two overseas institutions.
According to a company release, a subsidiary of Singapore
based Temasek and a UAE-based private equity firm have
agreed to subscribe to the issue. The company is planning
to raise further resources from an FCCB issue.
The
board of directors of Himatsingka Seide has approved a
bonus issue in the ratio of one share for every share
held. The board has also approved a stock split in the
ratio of two shares of Rs5 each for every Rs10 share.
According to a company release, the board also approved
plans to raise up to $60 million from an overseas issue.
The
board of directors of Jupiter Biosciences also approved
an overseas issue. The amount to be raised was not disclosed.
The
board of SAL Steel would meet shortly to consider an overseas
issue of GDR's or FCCB's.
SRF
Limited has concluded the country's first ever large deal
for Carbon Emission Reductions or CER with European oil
major Shell. Shell has agreed to buy half-a-million CER's,
reportedly at a premium to the existing market price of
under $10 per CER. Shell would also partner SRF in developing
the project.
 Prime
Securities, McLeod Russel and Elgi Equipment were among
the significant mid-cap gainers.
Scandent
Solutions, Indo Rama Textiles and Surya Roshni 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
|
8,052.56
|
+105.78
|
| NIFTY
|
2,454.45
|
+25.80
|
Last
Update : 8 September, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| BAJAJ
AUTO |
1,478.00
|
1,544.90
|
1,472.00
|
1,535.85 |
| HOUSING
DEVELOPMENT FINANCE CO |
905.00
|
941.00
|
902.50
|
937.05 |
| ICICI
BANK L |
489.50
|
508.00
|
483.10
|
505.95 |
| TATA
MOTORS |
499.70
|
512.40
|
499.00
|
510.85 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,370.00
|
2,429.00
|
2,363.00
|
2,421.95 |
| HDFC
BANK LT |
648.80
|
657.85
|
640.00
|
655.80 |
| BHEL
|
1,075.00
|
1,116.90
|
1,067.10
|
1,093.65 |
| BHARTI
TELE |
327.55
|
332.50
|
326.00
|
330.30 |
| GRASIM
INDUSTRIES LTD. |
1,290.00
|
1,309.00
|
1,290.00
|
1,302.55 |
| RELIANCE
ENR |
581.00
|
594.00
|
580.25
|
589.00 |
| RELIANCE
|
733.00
|
745.70
|
733.00
|
738.45 |
| LARSEN
& TOUBRO LTD. |
1,315.00
|
1,332.00
|
1,314.00
|
1,327.50 |
| ASSOCIATED
CEMENT COMPANIES LT |
480.00
|
487.90
|
478.80
|
484.55 |
| ONG
CORP LTD |
985.00
|
995.00
|
979.00
|
993.25 |
| CIPLA
LTD. |
369.00
|
374.00
|
367.00
|
368.60 |
| DR.REDDY'S
LABORATORIES LTD. |
775.85
|
819.00
|
768.00
|
775.00 |
| HINDUSTAN
LEVER LTD. |
168.00
|
169.00
|
166.15
|
166.45 |
| TATA
IRON AND STEEL CO. LTD. |
406.00
|
411.35
|
406.00
|
407.75 |
| TCS
LTD |
1,399.00
|
1,416.00
|
1,395.00
|
1,404.10 |
| SATYAM
COMP |
531.00
|
538.00
|
530.50
|
532.80 |
| RANBAXY
LABORATORIES LTD. |
558.80
|
558.80
|
538.50
|
540.25 |
| WIPRO
LTD. |
378.00
|
380.00
|
372.05
|
373.20 |
| I
T C LTD |
1,840.00
|
1,840.00
|
1,818.00
|
1,823.25 |
| HEROHONDA
M |
704.00
|
711.00
|
697.05
|
701.05 |
| MARUTI
UDYOG |
507.00
|
508.90
|
500.00
|
501.85 |
| HINDALCO
IN |
150.00
|
150.00
|
146.50
|
147.25 |
| STATE
BANK OF INDIA |
839.00
|
842.85
|
832.05
|
837.15 |
Last
Update : 8 September, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
734.00
|
745.50
|
733.35
|
738.65 |
| INFOSYSTCH
|
2373.70
|
2428.40
|
2365.00
|
2422.40 |
| SBIN
|
835.00
|
841.80
|
831.25
|
838.45 |
| TATAMOTORS
|
496.05
|
512.35
|
496.05
|
511.25 |
| SATYAMCOMP
|
534.90
|
538.25
|
531.60
|
533.95 |
| ONGC
|
986.00
|
997.00
|
980.10
|
993.25 |
| TISCO
|
407.95
|
411.00
|
407.10
|
409.45 |
| ITC
|
1833.90
|
1840.00
|
1815.00
|
1819.60 |
| TCS
|
1400.00
|
1415.00
|
1395.25
|
1406.10 |
| VSNL
|
389.50
|
391.30
|
384.60
|
386.40 |
| BHARTI
|
326.40
|
332.90
|
325.20
|
330.40 |
| HDFC
|
905.00
|
940.05
|
901.00
|
937.30 |
| ICICIBANK
|
488.00
|
506.90
|
485.00
|
505.25 |
| BPCL
|
369.90
|
387.00
|
369.90
|
385.00 |
| SAIL
|
61.75
|
62.45
|
61.55
|
62.00 |
| ZEETELE
|
186.50
|
190.00
|
185.25
|
187.30 |
| BAJAJAUTO
|
1470.60
|
1549.00
|
1470.60
|
1537.10 |
| PNB |
418.90 |
422.50
|
417.10
|
419.95 |
| HINDLEVER
|
168.40
|
168.65
|
166.05
|
166.55 |
| MARUTI
|
503.00
|
508.80
|
500.00
|
502.25 |
| TATACHEM
|
198.00
|
199.50
|
195.55
|
196.35 |
| RANBAXY
|
548.00
|
552.70
|
539.10
|
540.65 |
| MTNL
|
131.50
|
136.50
|
131.50
|
136.00 |
| GRASIM
|
1285.00
|
1310.00
|
1282.25
|
1301.05 |
| CIPLA
|
368.50
|
375.00
|
368.00
|
369.90 |
| HINDPETRO
|
302.00
|
305.85
|
298.65
|
300.90 |
| HEROHONDA
|
704.00
|
710.65
|
698.00
|
701.25 |
| M&M
|
360.00
|
366.80
|
360.00
|
365.55 |
| GAIL
|
242.50
|
244.50
|
241.10
|
242.35 |
| LT
|
1320.00
|
1332.70
|
1311.00
|
1328.25 |
| WIPRO
|
379.90
|
380.80
|
372.00
|
373.25 |
| IPCL
|
189.80
|
192.50
|
189.25
|
191.55 |
| HINDALC0
|
148.10
|
149.50
|
146.75
|
147.35 |
| BHEL
|
1085.90
|
1119.00
|
1070.00
|
1093.70 |
| ACC
|
481.00
|
486.80
|
478.00
|
484.45 |
| TATATEA
|
837.00
|
850.35
|
833.50
|
846.65 |
| GUJAMBCEM
|
71.00
|
71.85
|
70.65
|
71.10 |
| REL
|
580.10
|
593.00
|
580.00
|
588.85 |
| ABB
|
1772.00
|
1790.30
|
1750.10
|
1775.45 |
| HDFCBANK
|
644.00
|
657.00
|
640.00
|
655.85 |
| DRREDDY
|
775.00
|
779.90
|
769.00
|
770.75 |
| TATAPOWER
|
462.00
|
465.35
|
460.00
|
462.30 |
| ORIENTBANK
|
265.25
|
267.55
|
262.10
|
263.05 |
| HCLTECH
|
445.95
|
445.95
|
431.20
|
441.75 |
| SCI
|
160.55
|
161.45
|
159.15
|
160.65 |
| COLGATE
|
254.70
|
259.10
|
252.05
|
254.75 |
| NATIONALUM
|
178.10
|
179.90
|
171.00
|
179.10 |
| DABUR
|
155.40
|
157.50
|
152.50
|
157.15 |
| SUNPHARMA
|
640.00
|
649.95
|
630.05
|
643.20 |
| GLAXO |
882.05 |
903.95
|
882.05
|
900.55 |
Last
Update : 8 September, 2005, 16:00PM
|
