|
Yesterday's marginal fall was a mere pause in the upward
march of frontline indices. Markets continue to defy gravity
as both Sensex and Nifty added well over a per cent each
in today's trade.
The move by SEBI to allow domestic mutual funds to increase
their exposure to the derivatives segment fuelled the
markets. SEBI has finally decided to treat domestic mutual
funds at par with FII's as far as trading in derivatives
goes. After this move, domestic mutual funds are expected
to increase their exposure thereby bringing in more liquidity
to the derivatives segment.
The indices opened firm and traded within a band with
alternate bouts of buying and selling till late in the
afternoon. All-round buying in the last one hour led to
a surge in the indices and they scaled new lifetime highs.
Both the Sensex and Nifty closed the day at new lifetime
closing highs.
Sensex closed at 8284, a gain of 95 points, and the Nifty
at 2524, a gain of 32 points. Nifty September futures
closed at a discount of 6 points to the spot index.
Technology stocks had a good day today led by TCS, which
closed well over 3 per cent higher. The stock attracted
a lot of buying on market speculation about its aggressive
hiring programme for the current year. HCL Tech added
3 per cent. Satyam closed a per cent higher, while Wipro
and Infosys also closed with gains.
Strong gains in Reliance Industries and HLL added to the
rally in major indices. Both stocks added well over 2
per cent each.
Tata Chemicals, Grasim and VSNL were the biggest gainers
on the Nifty while Bajaj Auto, ABB and Tata Motors were
the major losers.
The US indices gave up further ground yesterday, hurt
by the bleak outlook for retail sales. Many major retail
companies are struggling for sales growth as the first
signs of a slowdown in consumer spending have started
emerging. The bounce back in crude prices also affected
the sentiment yesterday.
While the Dow closed half a per cent lower yesterday,
the S&P 500 lost more than a quarter of a per cent.
A sell off in Google and Yahoo weighed in on the NASDAQ,
which lost more than a per cent.
Indian ADR's performed better than the overall markets
yesterday as most of them held ground. Tata Motors was
the biggest gainer, adding more than 2 per cent. ICICI
Bank and HDFC Bank managed to close with gains of well
over half a per cent each. Dr. Reddy's also closed with
marginal gains.
Among the technology stocks, Wipro and Satyam closed lower
while Infosys managed to close with gains. Among the telecom
stocks, MTNL continued its downtrend losing another 2
per cent while VSNL added well over a per cent.
NYMEX crude futures for October delivery bounced back
close to $2 per barrel yesterday after the weekly US inventory
data showed a larger than expected fall in fuel stocks.
Crude added 3 per cent from the previous day's close to
end at $65.09 to a barrel yesterday. The commodity is
trading with gains of close to half a per cent in early
European trades today.
The government is planning to completely exit Maruti Udyog
in the near future. The government had decided to offload
an 8 per cent stake in Maruti to domestic financial institutions.
According to media reports, the heavy industries ministry
is favourable to a proposal to offload another 10 per
cent stake in the company. The stock has been on an upswing
for the past few days and added 3 per cent today as well.
VSNL would invest $40 million in a new undersea telecom
cable connecting Europe and Asia. The company would also
build a landing station for the cable near Mumbai. The
new cable line, fourth in the SEA-ME-WE network, is expected
to be operational by the end of this year. The stock added
close to 4 per cent.
Bharti Televentures is also a partner in the SEA-ME-WE-4
consortium and would also invest $40 million in the project.
Bharti's landing station would come up on the eastern
coast, near Chennai. The stock added more than one and
a half per cent.
Sun Pharma has acquired the US operations of Valeant Pharma
for an undisclosed amount. The acquisition would add to
the company's capabilities in creams and ointments. The
acquired unit has a manufacturing facility in the US.
Sun had acquired the Hungarian operations of Valeant earlier
this year. Sun also holds close to 70 per cent stake in
US based Caraco Pharma. The stock closed marginally lower.
The board of directors of Bank of Baroda has approved
an issue of unsecured bonds to raise Rs1,000 crore. The
bank would keep an option to retain an additional Rs500
crore. The funds would augment the Tier II capital of
the bank. The stock added a per cent.
According to media reports, Tata Tea is close to acquiring
a herbal tea and beverages brand in the US for $100 million.
Meanwhile, the company's shareholders have already approved
raising of FII investment limit to 35 per cent. The stock
added more than a per cent.
Newspaper reports of a further rise in cement prices led
to gains in frontline cement stocks. While Gujarat Ambuja
added well over 3 per cent, ACC closed more than a per
cent higher.
Mid-Cap Action
Mid-caps
also recovered from yesterday's lows as buying frenzy
returned to most active mid-cap stocks. However, gains
on the mid-cap index were lower than that on the Nifty.
The CNX Mid-Cap index closed the day at a new lifetime
high of 3853, a gain of 42 points.
The
board of directors of GE Shipping would meet tomorrow
to decide on the final de-merger ratio for its offshore
services business. The offshore services unit currently
offers drilling services, marine construction and terminal
handling services. The unit would have a turnover in excess
of Rs500 crore during the current year.
According
to market speculation, GE shareholders are expected to
receive between 20 and 30 shares of the new offshore services
company for every 100 shares held by them in GE Shipping.
There would be a reduction in the share capital of GE
Shipping and shareholders would be issued between 70 and
80 shares of the new company after re-structuring for
every 100 shares currently held by them.
India
Infoline was one of the significant gainers among mid-caps,
closing the day locked in 20 per cent upper circuit. The
stock had corrected yesterday after gaining over 15 per
cent on Tuesday.
The
board of India Infoline has approved the proposal to acquire
membership of the Dubai Gold Exchange through a subsidiary.
This move is expected to benefit the company's commodity
trading services. The company would also invest Rs80 crore
in three new subsidiaries to offer commodity trading and
wealth management services.
Indiabulls
Financial and Geojit Financial, two other stocks in the
brokerage business, also saw considerable buying interest
today. Indiabulls closed with gains of 6 per cent, while
Geojit closed 4 per cent higher.
Power
distribution company CESC, belonging to the RPG group,
has signed a memorandum of understanding with the government
of Jharkhand for setting up a 1,000 MW thermal power plant
in the state.
Jindal
Saw, a leading manufacturer of arc welded pipes, has raised
$65 million from a GDR issue. The GDR's would be listed
on the Luxembourg stock exchange.
Praj
Industries gained close to 5 per cent in early trades,
buoyed by an overseas order announced yesterday.
Pantaloon
Retail is lining up aggressive expansion plans for the
next few years. The company is planning to set up more
than 70 new stores across the country before then end
of calendar year 2006.
Meanwhile,
Pantaloon has denied market speculation about a tie up
with a large domestic industrial house. The stock had
gained over 20 per cent in recent weeks on persistent
rumours of a strategic tie up with a large industrial
house.
Garment
manufacturing and retailing company Provogue is planning
to enter the mall management business. The company may
also invest in development of mall properties.
Reports
of an increase in paper prices led to good demand for
paper stocks. The rally was led by industry leader Bilt,
which gained 2 per cent. Sirpur Paper, Rama Newsprint
and Orient Paper were among the other gainers.
 Agro
Tech Foods, Hanil Era Textiles and Atlas Cycles were among
the significant mid-cap gainers on the NSE, all closing
with gains of 20 per cent each.
Centurion
Bank and GE Shipping were among the significant mid-cap
losers on the NSE.
*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
|
8,283.76
|
+94.28
|
| NIFTY
|
2,523.95
|
+31.50
|
Last
Update : 15 September, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| GRASIM
INDUSTRIES LTD. |
1,357.40
|
1,405.00
|
1,347.30
|
1,400.00 |
| TCS
LTD |
1,402.50
|
1,455.90
|
1,402.00
|
1,450.35 |
| GUJARAT
AMBUJA CEMENTS LTD. |
71.10
|
73.60
|
70.75
|
73.15 |
| MARUTI
UDYOG |
532.00
|
546.00
|
530.00
|
542.95 |
| RELIANCE |
740.00
|
764.30
|
740.00
|
760.85 |
| HINDUSTAN
LEVER LTD. |
172.00
|
176.70
|
172.00
|
176.10 |
| TATA
IRON AND STEEL CO. LTD. |
408.00
|
415.95
|
405.05
|
413.70 |
| HINDALCO
IN |
151.90
|
154.75
|
151.00
|
153.20 |
| BHARTI
TELE |
336.00
|
344.00
|
335.00
|
343.00 |
| HOUSING
DEVELOPMENT FINANCE CO |
991.00
|
1,002.95
|
970.00
|
1,000.80 |
| I
T C LTD |
1,870.00
|
1,886.95
|
1,863.50
|
1,879.65 |
| ASSOCIATED
CEMENT COMPANIES LT |
473.90
|
479.85
|
469.25
|
477.95 |
| TATA
POWER |
460.00
|
463.90
|
456.35
|
461.15 |
| SATYAM
COMP |
540.05
|
546.80
|
536.00
|
543.95 |
| RELIANCE
ENR |
598.00
|
601.00
|
594.00
|
598.55 |
| HDFC
BANK LT |
688.00
|
695.00
|
685.00
|
692.05 |
| WIPRO
LTD. |
382.00
|
384.50
|
380.00
|
382.20 |
| ICICI
BANK L |
529.90
|
533.00
|
525.00
|
531.25 |
| BHEL
|
1,103.00
|
1,103.00
|
1,083.00
|
1,090.00 |
| RANBAXY
LABORATORIES LTD. |
524.50
|
526.95
|
521.00
|
523.10 |
| BAJAJ
AUTO |
1,648.00
|
1,664.90
|
1,631.00
|
1,635.95 |
| TATA
MOTORS |
521.00
|
525.10
|
518.75
|
520.40 |
| HEROHONDA
M |
690.00
|
693.00
|
681.05
|
685.25 |
Last
Update : 15 September, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
741.50
|
763.95
|
735.10
|
760.80 |
| SBIN
|
905.00
|
907.80
|
895.55
|
902.85 |
| TCS
|
1402.00
|
1454.75
|
1402.00
|
1449.90 |
| VSNL
|
394.80
|
406.30
|
390.25
|
404.30 |
| IPCL
|
208.00
|
213.85
|
208.00
|
213.10 |
| INFOSYSTCH
|
2448.00
|
2455.00
|
2435.00
|
2450.55 |
| ZEETELE |
199.30 |
203.80
|
194.05
|
198.45 |
| MARUTI
|
532.80
|
545.00
|
529.40
|
541.80 |
| SATYAMCOMP
|
540.80
|
547.00
|
536.80
|
544.50 |
| TISCO
|
415.00
|
455.65
|
405.25
|
414.05 |
| TATACHEM
|
197.50
|
210.30
|
195.05
|
209.35 |
| ONGC
|
1007.35
|
1007.35
|
990.25
|
999.70 |
| ITC
|
1869.90
|
1886.00
|
1864.50
|
1880.25 |
| ACC
|
471.05
|
479.80
|
469.15 |
477.95 |
| SAIL
|
63.80
|
65.50
|
63.70
|
64.90 |
| TATAMOTORS
|
524.00
|
524.95
|
518.60
|
520.40 |
| HINDALC0
|
151.95
|
154.65
|
151.70
|
153.25 |
| HINDLEVER
|
173.00
|
176.80
|
172.10
|
176.15 |
| ICICIBANK
|
529.80
|
535.00
|
525.00
|
533.15 |
| GAIL
|
266.25
|
266.95
|
258.50
|
260.60 |
| GUJAMBCEM
|
71.00
|
73.50
|
70.70
|
73.15 |
| HDFCBANK
|
688.00
|
693.00
|
686.15
|
692.25 |
| BHARTI
|
337.15
|
344.50
|
335.15
|
342.60 |
| WIPRO |
380.20 |
384.85
|
380.20
|
382.50 |
| HCLTECH
|
440.05
|
472.00
|
440.05
|
466.50 |
| PNB
|
428.90
|
431.90
|
424.15
|
426.05 |
| HDFC
|
985.10
|
1005.00
|
977.00
|
1001.10 |
| RANBAXY
|
522.00
|
529.80
|
522.00
|
524.10 |
| HEROHONDA
|
687.00
|
692.00
|
681.40
|
685.20 |
| ORIENTBANK
|
270.50
|
276.75
|
270.50
|
271.95 |
| REL
|
595.00
|
602.00
|
595.00
|
599.20 |
| GRASIM
|
1342.00
|
1405.00
|
1342.00
|
1398.60 |
| LT
|
1324.95
|
1325.00
|
1315.05
|
1320.55 |
| TATATEA
|
847.00
|
879.90
|
847.00
|
857.40 |
| BAJAJAUTO
|
1641.15
|
1666.00
|
1631.10
|
1635.25 |
| BHEL
|
1099.90
|
1099.90
|
1082.00
|
1090.55 |
| SCI
|
164.70
|
164.70
|
161.00
|
163.80 |
| M&M
|
372.00
|
373.00
|
366.00
|
371.20 |
| ABB
|
1818.80
|
1828.75
|
1780.00
|
1784.05 |
| DABUR
|
160.25
|
168.95
|
160.25
|
167.90 |
| BPCL
|
379.00
|
384.75
|
376.20
|
382.70 |
| TATAPOWER
|
459.90
|
463.70
|
453.10
|
461.55 |
| SUNPHARMA
|
674.40
|
674.75
|
656.05
|
662.30 |
| DRREDDY
|
802.90
|
814.00
|
802.00
|
805.80 |
| HINDPETRO
|
303.00
|
305.00
|
301.00
|
304.35 |
| MTNL
|
131.55
|
133.90
|
131.25
|
133.05 |
| CIPLA
|
363.70
|
363.70
|
357.10
|
361.60 |
| COLGATE
|
252.35
|
253.80
|
250.60
|
251.60 |
| NATIONALUM
|
180.05
|
184.50
|
179.05
|
182.65 |
| GLAXO
|
885.00
|
889.90
|
873.00
|
878.00 |
Last
Update : 15 September, 2005, 16:00PM
|
