Markets opened almost flat in the morning in the absence of any global cues. The indices slipped marginally into the red in early trades as traders remained sceptical after yesterday's correction.

Buying emerged much before noon and the markets set on an up-trend which lasted for the rest of the day. The indices were supported by strength in all IT frontline stocks and select others like Mahindra and ITC.

Sensex closed at 6715, up 51 points and the Nifty at 2088, up 15 points. Nifty June futures discount to the spot index narrowed to 24 points from yesterday's 29 points.

Among Nifty stocks, M&M, Reliance Energy and ITC were the major percentage gainers while Hero Honda, Tata Chemicals and BPCL were the major losers.

US Markets were closed yesterday and will open for trade today after the long weekend.

Reliance Energy was one of the best performers among frontline stocks. There are reports that the company is planning to set up a massive 12,000 MW thermal power plant in Orissa. The stock closed with gains of over 3 per cent.

The company had made a similar proposal in the nineties along with an overseas partner. The company is planning to set up the project in units of about 660 MW each and the government of Orissa has reportedly confirmed the plans.

Kotak Mahindra Bank gained over 10 per cent in early trades. The bank's board is meeting in a week's time to consider the quarterly and yearly results. The board will also consider a proposal to issue bonus shares.

Tata Power announced excellent results for the fourth quarter ended March 2005. The profits for the period have tripled on a revenue growth of 6 per cent. For the full year, profit growth was subdued at only 8 per cent while revenues declined marginally.

Tata Power is selling its subsidiary Tata Power Broadband, which has an optical fibre network, to group company VSNL. The company has also decided to hike the FII investment limit to 35 per cent. After opening with losses, the stock recovered and closed with gains.

Ranbaxy received the preliminary approval from the USFDA for marketing an anti-retroviral tablet used in the treatment of AIDS.

Infosys will set up a research centre for French engineering major Alstom. The French company would invest close to $40 million in the centre, which is expected to have around 300 researchers within 3 years. Further details are not available. The stock closed a per cent higher.

Other IT stocks like TCS, Wipro and Satyam also closed with gains. Satyam was the best performer with over 2 per cent gains.

Mid-Cap Action

Mid-cap stocks recovered from their down trend for the last few days. CNX Mid-Cap 200 index closed at 2986, up 20 points.

The parent company of industrial bearings manufacturer SKF India has cancelled its open offer for the latter's shares. The parent company was planning to acquire full control and de-list SKF India from the exchanges. The open offer was made at a floor price of Rs153 per share and SKF received only around 20 per cent of the share capital. More than 45 per cent of the share capital of SKF India is held by non-promoters. After opening very weak, SKF recovered part of the losses by afternoon.

Mid-cap software stock KPIT Cummins surged 5 per cent after reports that International Finance Corporation, the private investment arm of World Bank, is planning to invest in the company. IFC may also provide debt financing to KPIT Cummins.

Godrej Industries disappointed with its results for the quarter ended March 2005. Profits for the period declined over 15 per cent even as revenues rose over 20 per cent. The stock has had a spectacular run in the recent past on speculation that it will tie up with overseas companies to develop some of the prime real estate it owns in Mumbai. The stock declined 5 per cent in early trades.

Auto ancillary company Harig Crankshaft gained smartly in early trades after the company announced an order from Tata Motors. The order for forgings and crankshafts is reportedly worth Rs150 crore. The stock gained 10 per cent in early trades.

Gabriel India was another auto ancillary stock to sizzle today. The stock gained close to 10 per cent in early trades as the company reported solid results for the quarter and year ended March 2005. For the last quarter, profits more than doubled on a revenue growth of over 15 per cent.

JBF Industries, Indraprastha Medical and BSEL Infrastructure were among the best performing stocks among mid-caps.

JBM Auto Components, Deccan Chronicle and Mangalam Drugs 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.

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