|
Most market observers were predicting a correction after
the Sensex scaled the 8000-mark yesterday. Weakness in
the US markets yesterday and recovery in crude oil prices
were expected to induce some profit booking and pull down
the indices.
The markets opened the day with a lot of circumspection
as the frontline indices dipped into negative territory
soon after. However, the indices soon started to recover
as buying emerged in select frontline stocks, especially
the banking stocks.
A strong show by most Asian markets led by Japan, which
gained well over a per cent today, helped the indices
further and by early afternoon they were back in positive
territory. Afternoon hours saw some amount of volatility
but a last minute surge helped the indices to close with
marginal gains.
Sensex closed at 8060, a gain of 7 points, and the Nifty
at 2455, a gain of 1 point. Nifty September futures closed
at a discount of 7 points to the spot index.
Bank stocks attracted a lot of buying interest and the
Bank Nifty index gained over 2 per cent. HDFC Bank, SBI,
PNB, ICICI Bank and Oriental Bank of Commerce were the
major gainers among bank stocks.
HDFC Bank, SBI and ABB were the biggest gainers on the
Nifty while Ranbaxy, BPCL and HDFC were the major losers.
The US markets declined after two days of strong gains
on renewed worries about corporate earnings. Poor outlook
from a host of companies dependent on consumer spending
and a rebound in crude oil prices was enough to pull back
the frontline US indices.
Both the Dow and S&P 500 closed with losses of well
over a third of a per cent while NASDAQ closed over a
quarter per cent lower.
Indian ADR's, had mixed day yesterday on the US exchanges.
Tata Motors was the biggest gainer, closing with gains
of well over 3 per cent. ICICI Bank recovered from the
previous day's fall and closed 2 per cent higher. HDFC
Bank closed with marginal gains.
Telecom stocks MTNL and VSNL both closed with losses.
Among the technology ADR's, Infosys had a strong closing
with gains of 2 per cent. Wipro and Satyam closed lower.
Dr. Reddy's also closed lower.
Crude prices recovered marginally yesterday after sustained
decline over the first three days of the week. The commodity
added 12 cents to a barrel yesterday to close at $64.49
for the near month futures. Crude futures are trading
above the $65-mark in early European trades today.
According to media reports, Reliance Industries is one
of the three bidders for a refinery expansion project
in Colombia. The Colombian government had called for partners
to expand the refinery capacity to 140,000 barrels per
day at an estimated investment of over $800 million. The
selected partner would have a 51-per cent stake in the
project. The stock closed with marginal gains.
There are media reports that Sistema of Russia is in talks
with the ADAE group to acquire Reliance Telecom, the GSM
operator on the eastern parts of the country. Sistema
had an agreement to acquire a majority stake GSM operator
Aircel for $450 million, which is now believed to have
expired.
Software majors Wipro, Satyam and HCL Technologies would
build new development centres in a new IT park being promoted
by the Tamil Nadu government at Chennai. Wipro has reportedly
acquired 80 acres of land while HCL would take up 50 acres.
TCS is also reportedly building a new facility at Chennai
at a cost of $175 million. The stock closed higher.
GAIL has started commercial production of crude oil from
the Cambay basin in Gujarat. The company holds a 50 per
cent stake in the field with the balance being held by
GSPC. Though current production is at a miniscule 350
barrels per day, it is expected to go up to 1,500 barrels
in future.
GAIL is planning to invest Rs600 crores for exploration
activities over the next few years. The company holds
interests in as many as 13 domestic exploration blocks.
GAIL is also planning to pick up stakes in oil fields
in Iran and Myanmar.
Jet Airways would start a daily service between Delhi
and London shortly. This follows the new agreement with
UK under which carriers of both countries can start additional
services. Jet already operates a daily service between
Mumbai and London. The stock closed lower.
Bajaj Auto is planning to gradually phase out its bestselling
motorcycle model in the entry-level segment, CT 100. The
company is planning to re-launch the model under a different
brand name with more value. The company would also phase
out its step-through motorcycle models. The stock closed
a per cent higher.
The board of directors of Ranbaxy has approved a US listing
and raising of additional resources of up to $1.5 billion.
The company may convert its existing GDR's into ADR's
besides issuing fresh equity in the overseas markets.
The additional resources would fund the company's acquisition
plans. The stock lost close to 3 per cent.
Zee Tele has tied up with an Australian company to make
available its bouquet of television channels in Australia
and New Zealand. The deal is expected to help Zee reach
more than 45,000 homes in these two countries. The stock
lost 2 per cent.
HCL Technologies would expand its BPO operations in Northern
Ireland by adding another 600 employees within the next
one year. After the expansion, HCL would employ close
to 3,000 personnel at its UK operations. The stock lost
half-a-per cent.
Mid-Cap Action
Mid-caps
also managed to maintain their levels today though the
usual buying frenzy was missing. Gains on the mid-cap
index were higher then the frontline indices. The CNX
Mid-Cap index closed the day at a new lifetime high of
3762, a gain of 8 points.
Sasken
Communication Technologies, a developer of advanced telecom
software, made its debut on the exchanges today. Issued
at Rs260 per share, the scrip opened at Rs460 on the NSE
and went on to touch a high of Rs624. The stock closed
the day at Rs465 for a listing day gain of over 78 per
cent.
According
to media reports, Opto Circuits is close to acquiring
two US companies in the healthcare segment. The two companies
reportedly have combined revenues of over $45 million
and the acquisitions are expected to cost $75 million.
Opto
Circuits also launched a range of products developed in-house.
The new medical electronic products would help in continuous
patient monitoring and are reportedly cost competitive.
Sterling
Biotech has reportedly acquired Narmada Gelatine, part
of the Jumbo group. Both companies are leading manufacturers
of pharma grade gelatine. Sterling had acquired the gelatine
business of Rallis India earlier. The stock gained well
over 10 per cent in early trades.
Sterling
Biotech also launched its $140 million FCCB issue today,
with an option to retain an additional $35 million. The
bonds are convertible into equity shares after a period
of 5 years and would be listed on the Singapore Stock
Exchange.
Yes
Bank would set up a subsidiary company to offer wealth
management services.
Two
private equity firms have acquired a combined 8.6-per
cent stake in mid-cap software company Visual Soft. The
stock had appreciated considerably over the last month
on reports of a possible acquisition by the promoter of
a large software company.
The
board of directors of Nagarjuna Constructions has approved
plans to raise up to $120 million from an overseas issue
of GDR's or FCCB's.
Impex
Ferro would set up a 30mw coal-based power plant and another
furnace for the manufacture of ferro manganese in West
Bengal. The project is expected to cost over Rs140 crore.
Shipping
company Mercator Lines has won a new one-year contract
for transportation of coal. The contract is worth Rs120
crore.
A
host of banking stocks attracted buying interest today.
Union Bank of India, Indian Overseas Bank, Corporation
Bank, Dena Bank and Canara Bank were among the major gainers
among PSU stocks. Bank of Rajasthan, UTI Bank and J&K
Bank were among the gainers from the private sector.
 Sonata
Software, Sterling Biotech and Cyber Media were among
the significant mid-cap gainers.
Amtrex
Appliances, Harrison Malayalam and Elgi Equipment 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
|
8,060.01 |
+7.45 |
| NIFTY
|
2,455.45
|
+1.00
|
Last
Update : 9 September, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| HDFC
BANK LT |
660.00
|
679.90
|
652.00
|
677.05 |
| STATE
BANK OF INDIA |
839.00
|
857.90
|
832.40
|
854.95 |
| MARUTI
UDYOG |
501.85
|
515.10
|
497.00
|
511.75 |
| DR.REDDY'S
LABORATORIES LTD. |
774.00 |
792.85
|
770.30
|
784.95 |
| BAJAJ
AUTO |
1,536.00
|
1,570.00
|
1,525.55
|
1,553.15 |
| LARSEN
& TOUBRO LTD. |
1,322.50
|
1,348.80
|
1,322.50
|
1,338.75 |
| ICICI
BANK L |
505.75
|
514.30
|
498.00
|
510.25 |
| BHARTI
TELE |
330.30
|
332.50
|
328.25
|
332.05 |
| I
T C LTD |
1,830.00
|
1,839.00
|
1,818.00
|
1,832.35 |
| TATA
IRON AND STEEL CO. LTD. |
407.10
|
411.90
|
406.40
|
409.45 |
| RELIANCE
|
737.00
|
745.00
|
735.10
|
741.10 |
| TATA
MOTORS |
512.90
|
515.25
|
508.00
|
512.65 |
| RANBAXY
LABORATORIES LTD. |
542.60
|
542.60
|
525.00
|
525.80 |
| HOUSING
DEVELOPMENT FINANCE CO |
937.00
|
937.00
|
910.00
|
916.05 |
| HINDALCO
IN |
150.00
|
150.00
|
144.25
|
144.70 |
| ASSOCIATED
CEMENT COMPANIES LT |
483.00
|
484.00
|
475.20
|
477.20 |
| HEROHONDA
M |
700.00
|
703.00
|
688.00
|
691.60 |
| CIPLA
LTD. |
370.00
|
370.00
|
364.10
|
365.30 |
| TCS
LTD |
1,407.00
|
1,415.00
|
1,377.00
|
1,392.00 |
| TATA
POWER |
463.00
|
467.45
|
456.00
|
458.10 |
| BHEL |
1,080.30 |
1,107.00
|
1,080.30
|
1,088.45 |
| WIPRO
LTD. |
375.00
|
376.00
|
367.80
|
371.55 |
| RELIANCE
ENR |
594.50
|
595.00
|
585.25
|
587.10 |
| NTPC
LTD |
102.50
|
103.10
|
102.10
|
102.75 |
| SATYAM
COMP |
531.00
|
535.50
|
527.00
|
531.50 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,425.00
|
2,431.00
|
2,401.00
|
2,418.40 |
| ONG
CORP LTD |
999.00
|
999.00
|
985.00
|
992.75 |
| GRASIM
INDUSTRIES LTD. |
1,309.85
|
1,312.00
|
1,295.00
|
1,302.00 |
Last
Update : 9 September, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
740.00
|
745.00
|
734.60
|
741.65 |
| SBIN |
838.00 |
862.00
|
832.10
|
857.70 |
| INFOSYSTCH
|
2416.00
|
2434.70
|
2401.00
|
2417.20 |
| TISCO
|
409.70
|
412.00
|
402.90
|
409.55 |
| SATYAMCOMP
|
534.60
|
536.00
|
526.00
|
531.80 |
| RANBAXY
|
522.70
|
543.00
|
522.70
|
525.90 |
| TATAMOTORS
|
510.00
|
515.65
|
508.60
|
512.15 |
| TCS
|
1351.00
|
1414.00
|
1351.00
|
1391.95 |
| PNB
|
419.00
|
432.00
|
417.10
|
428.85 |
| MARUTI
|
500.00
|
515.00
|
497.10
|
511.15 |
| ICICIBANK
|
506.90
|
518.90
|
497.10
|
513.55 |
| IPCL
|
191.70
|
195.20
|
190.30
|
191.05 |
| SAIL
|
62.30
|
63.90
|
61.65
|
63.20 |
| ITC
|
1835.00
|
1839.80
|
1815.20
|
1829.45 |
| ONGC
|
989.00
|
999.70
|
983.50
|
991.75 |
| ZEETELE
|
188.30
|
188.90
|
182.55
|
183.60 |
| M&M
|
366.80
|
374.00
|
366.10
|
372.25 |
| ACC
|
485.25
|
485.25
|
475.70
|
477.20 |
| VSNL
|
389.00
|
389.00
|
378.50
|
380.50 |
| HDFCBANK
|
657.00
|
680.00
|
652.10
|
676.05 |
| GAIL |
240.10 |
246.25
|
240.10
|
242.85 |
| LT
|
1330.00
|
1349.00
|
1325.00
|
1336.75 |
| WIPRO
|
378.80
|
378.80
|
367.55
|
371.45 |
| BHARTI
|
332.90
|
334.40
|
328.20
|
332.00 |
| HEROHONDA
|
702.00
|
706.00
|
687.30
|
693.60 |
| HINDPETRO
|
302.00
|
304.10
|
296.85
|
299.20 |
| BAJAJAUTO
|
1540.00
|
1569.80
|
1528.25
|
1551.40 |
| HINDLEVER
|
166.55
|
167.90
|
165.05
|
165.60 |
| TATAPOWER
|
465.00
|
467.20
|
456.05
|
457.80 |
| MTNL
|
136.50
|
136.50
|
133.30
|
135.05 |
| HINDALC0
|
147.50
|
147.50
|
144.00
|
144.50 |
| ORIENTBANK
|
262.40
|
267.50
|
261.60
|
265.60 |
| REL
|
592.90
|
595.00
|
586.05
|
588.15 |
| ABB |
1780.00 |
1840.00
|
1751.00
|
1815.00 |
| BPCL
|
386.25
|
387.90
|
372.55
|
374.80 |
| GUJAMBCEM
|
70.30
|
71.85
|
70.10
|
70.60 |
| GRASIM
|
1310.00
|
1317.00
|
1292.25
|
1300.85 |
| HDFC
|
937.00
|
937.00
|
915.00
|
917.70 |
| DRREDDY
|
771.15
|
793.45
|
771.00
|
785.15 |
| TATACHEM
|
197.40
|
197.40
|
192.20
|
193.80 |
| BHEL
|
1090.00
|
1106.90
|
1085.00
|
1089.10 |
| SCI
|
161.50
|
163.90
|
160.00
|
162.15 |
| CIPLA
|
369.00
|
374.90
|
362.05
|
364.15 |
| HCLTECH
|
432.00
|
448.40
|
432.00
|
439.40 |
| COLGATE
|
253.00
|
254.50
|
249.50
|
250.30 |
| DABUR
|
157.95
|
159.50
|
156.05
|
158.25 |
| NATIONALUM
|
179.20
|
180.00
|
176.10
|
179.40 |
| TATATEA
|
830.10
|
849.00
|
830.10
|
838.50 |
| GLAXO |
896.05 |
903.90
|
883.55
|
902.80 |
| SUNPHARMA
|
640.00
|
646.95
|
632.15
|
635.80 |
Last
Update : 9 September, 2005, 16:00PM
|
