Markets opened the day on a subdued note as most traders and institutional investors are waiting for the budget. Most operators are unwilling to add to their positions before such a big event like the budget, due next week.

After holding steady for an hour or so, both frontline indices slipped into the red in mid-morning trades. Early afternoon saw some more selling pressure and the indices remained within a band for the rest of the day.

Dr Reddy's gave up over 4 per cent and was the biggest loser among index stocks. Ranbaxy declined nearly 2 per cent.
SAIL declined nearly 3 per cent after yesterday's sharp surge.
Two-wheeler stocks came under some profit booking as Hero Honda declined over 2.5 per cent and Bajaj Auto gave up close to 1.5 per cent.

FMCG stocks also came under pressure. HLL lost 2 per cent while ITC closed 1.5 per cent lower.

Zee Tele, M&M and HDFC Bank were the other losers.

PSU banking stocks PNB, OBC and SBI were the stars of the day. PNB added close to 4 per cent while SBI closed nearly 3 per cent higher. OBC closed the day more than 3.5 per cent higher.

MTNL made a strong come back after suffering losses in the last few sessions. The stock closed nearly 4 per cent higher.

Engineering stocks ABB and L&T also made a comeback, gaining 2.5 and 2 per cent respectively.

IPCL, Gujarat Ambuja Cements, SCI and Tata Pwer were the other major gainers among index stocks.

Sensex closed at 10201, a loss of 43 points, and the Nifty closed lower by 12 points at 3050. Nifty March futures closed at a discount of 6 points to the spot index.

US markets declined yesterday after the strong rally on the pervious day. The decline in oil prices weighed in on oil stocks leading to a decline in the broader indices.

The Dow lost around two-thirds of a per cent while the S&P 500 ended over one-third of a per cent lower. Technology stocks were relatively better off as the NASDAQ index closed with losses of less than one-fifths of a per cent.

Asian markets had a mixed day as most major indices closed the day without any clear direction. South Korea, Singapore and Hong Kong ended the day with decent gains while Japan ended flat. Malaysia and Indonesia closed with modest losses.

Crude prices continued their decline yesterday as well and dropped another per cent. April futures on the NYMEX closed at $60.54 per barrel yesterday. The commodity has rallied and is trading with gains of more than $1 per barrel in early European trades today.

The government has approved the issue of bonds worth Rs5,750 crore to oil marketing companies to compensate for the low retail prices of petroleum products. The bonds would help improve the financial position of companies like IOC, HPCL and BPCL. The government has promised another issue of Rs5,750 crore in future.

Gail India said a high level team from the company would visit Algeria to explore sourcing of natural gas from that country.

NTPC has completed its $300 million bond issue and has priced the bonds maturing in 2016 at 140 basis points above ten year US treasuries. The bond issue was a part of the proposed $1 billion medium-term note issue programme of the company.

Videocon Industries management has revealed that the company has submitted a bid to acquire Daewoo Electronics of Korea. Daewoo had revenues of $3 billion and is reportedly profitable. Unconfirmed reports indicate that the bid value could be as high as $1 billion.

Mid-Cap Action

Mid-caps rallied even as the frontline stocks came under pressure today. After opening firm, the mid-cap index maintained the up trend and closed with gains of nearly a per cent. The CNX Mid-Cap index gained 39 points to end the day at 4372.

Unconfirmed media reports indicate that pharma company Wockhardt is close to a major acquisition in the US. The reports suggest that the cost of acquisition could be as high as $700 million. The company said it is constantly on the lookout for acquisitions, without specifically confirming or denying the report.

Gillette India has reported a net profit of Rs68.72 crore for the year 2005 as compared to Rs61.22 crore for 2004, an increase of 12 per cent. Total revenues for the year increased to Rs470.96 crore as against Rs425.19 crore, a growth of 11 per cent.

Gujarat Gas, a subsidiary of British Gas, has posted a net profit of Rs98.13 crore for the year ended December 2005 as compared to Rs76.91 crore for the year 2004. Total income has increased to Rs775.19 crore for the year ended December 2005 from Rs664.53 crore for the year 2004.

Aurobindo Pharma has received final US FDA approval for a drug used for controlling blood pressure, treating heart failure and preventing kidney damage in people with hypertension or diabetes. The company said the market for the drug is around $600 million.

Spentex Industries has announced the open offer for 20 per cent stake in Indo Rama Textiles. The offer is being made at Rs84.15 per share and would open on 17 April. Spentex had bought out the existing promoters of Indo Rama.

HSBC has sold a 3.8 per cent stake in UTI Bank. HSBC is left with around 8 per cent stake in UTI Bank, which is required to be brought down to 5 per cent as per RBI norms.

SKF India has posted a net profit of Rs64.07 crore for the year ended December 2005 as compared to Rs56.61 crore for the year 2004. Total income has increased to Rs816.01 crore for the year ended December 2005 from Rs604.32 crore for the year 2004.

Rain Calcining has set up an overseas subsidiary to explore business opportunities abroad.

Auto ancillary Gabriel India has received and order from a US based company for supply of shock absorbers. The company said it expects revenues of $12 to $15 million annually from the deal.

The High Court of Mumbai has approved the merger between Navneet Publications and its subsidiary Navneet Edutainment.

Glenmark Pharma said its newly developed anti-diabetes drug has completed phase-I clinical trials. The drug would enter phase-II trials now which are expected to be completed by March 2007.

K Sera Sera has set up a subsidiary in Dubai to undertake movie production and distribution.

Lyka Labs has entered into an agreement with Serum Institute, the country's leading manufacturer of vaccines, to manufacture freeze dried products.

Jain Irrigation has taken a 7.5 per cent stake in a Greek company, Eurodrip SA, for € 3.5 million.

Reliance Energy Ventures, the holding company of Reliance Energy, got listed on the exchanges today. The stock opened at Rs48.9 on the NSE and declined from those levels to a low of Rs42.85. The stock finally closed at Rs43.75.

Softpro Solutions, Kernex Microsystems and Exide Industries were among the significant mid-cap gainers on the NSE.

SKF India, Alfa Laval and Winsome Yarn were among the significant mid-cap losers on the NSE.

*Disclaimer:The author may have positions in some of 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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