Domestic pharma, select mid-cap stocks firm
Mumbai: Snapping the three-day rally, the benchmark indices ended the Monday's trading on a weak note. The Sensex declined 17.5 points to close at 3336.64 while the Nifty declined by 4.4 points to 1051.8. The weakness in index heavyweights Reliance Industries and Hindustan Lever was instrumental in pulling down the indices. The overall market activity remained lacklustre with the Sensex ruling in a narrow range of about 36 points. But for the nominal gains recorded by a few stocks, the trend by and large was subdued. The likes of Infosys Technologies, HCL Technologies and Digital GlobalSoft were prominent losers from the software sector. Satyam and Wipro managed to eke out marginal gains. In the banking sector, J&K Bank, Oriental Bank and SBI managed to close on a positive note while Corporation Bank, Andhra Bank and Bank of India were key losers. The share price of Indian pharmaceutical companies was one of the key highlights of Monday's trading. The likes of Dr. Reddy's Laboratories, Ranbaxy and Cipla were prominent gainers of day's trading. The share price of Dr. Reddy's Laboratories increased by 3.95 per cent to Rs 998.75. Along with the uptrend in pharma stocks, the rally in the mid-cap stocks was another noticeable development of Monday's trading. Quite a few companies including Escorts, Amara Raja Batteries, Sesa Goa, Orchid Chemicals, Elgi Equipment and Arvind Mills ended the day on a firm note.
Back to News Review index page  

Reliance: Outlook negative, short July futures
Mumbai: The outlook on Reliance Industries stock is negative. The downside price target is Rs 275. Momentum trading may push the stock to Rs 345. Consider shorting the July futures on the stock. You will be exposed to a 35-point risk on the short futures position. You can hedge this risk with July 320 calls. This is not a cost-effective hedge, but will protect you from taking on more than 10-point risk on your position. If the stock declines to Rs 275 at the horizon, the short July futures-long calls will generate gains of Rs 14,400 per contract. If the stock rises to Rs 345, the position will lose Rs 10,200. The horizon is 19 days. The market lot is 600.
Back to News Review index page  

Talk of fresh orders boosts Sesa Goa
Kolkata: The Sesa Goa stock scaled a 52-week high on Monday on reported buying by mutual funds and resumption of trading interest. However, it finished slightly lower than the day's peak of Rs 159.70. From a 52-week low of Rs 57, recorded on November 7, 2002, the stock has appreciated by about 174.5 per cent till now. The market buzz was that Tata Mutual Fund and Reliance Mutual Fund had picked up substantial quantity of the stock. Traders' interest was also seen on market talk over fresh orders from China. In April, the company had refuted reports of specific orders from China to be executed in the April-June quarter. It informed the National Stock Exchange: "We continue to export to our customary buyers from China, Japan and European as per regular contracts.'' A Narrain Mines, a subsidiary of the company having mining rights in Karnataka, is in the process of being merged with Sesa Goa. "As the steel and iron ore prices globally are moving up and the company is in a consolidation mode, the stock is undergoing a re-rating,'' an NSE broker said. The stock clocked a volume of 3.41 lakh shares (40,118 shares) and closed at Rs 156.80 (Rs 140.95) on the BSE. On the NSE, it had traded a quantity of 5.88 lakh shares (53,649 shares).
Back to News Review index page  

Optical fibre stocks rally on global positive outlook
Mumbai: Stocks of optical fibre manufacturing companies rallied on the bourses on Monday with a positive outlook emerging globally for the sector, which has been in the doldrums for a couple of years. The optical fibre sector has witnessed some rough weather in the recent past due to a slump in the telecom sector leading to a sharp fall in prices, both international as well as domestic. Among stocks that touched the upper circuit in today's trading were Aksh Optifibre, Birla Ericcson Optical Ltd and Vindhya Telelinks. Aksh Optifibre closed at Rs 24 on the BSE, up 20 per cent and at Rs 23.50 on the NSE, up 20.20 per cent. Birla Ericcson rose by 20 per cent on the BSE to close at Rs 15.60 and 20.31 per cent on the NSE, closing at Rs 15.70. Vindhya Telelinks gained 20 per cent on the BSE at Rs 27.90 and 20.17 per cent on the NSE at Rs 27.70 while Sterlite Optical Technologies gained 13.10 per cent on the BSE to close at Rs 47.50 and 12.86 per cent on the NSE, closing at Rs 47.40.
Back to News Review index page  

AMR initiative drives Emco up
Mumbai: With most of the power sector stocks rising, companies associated with the power sector are witnessing a lot of interest from market players. Among them is Emco Ltd, a company dealing with power transformers and meters. On Monday, the stock was locked in the 20 per cent upper circuit at Rs 51.05 with a volume of 4.68 lakh shares. The main factor for active interest in the stock, according to dealers, is that company is taking initiative for implementation of automatic meter reading (AMR) systems with various State electricity boards. It is learnt that the company has bagged orders worth around Rs 150 crore to be implemented over 18 months. In addition, the talks that the company has good order positions for transformers, its core business, helped perk up the scrip.
Back to News Review index page  

Rupee firmer; gilts gain
Mumbai: The rupee gained 8 paise on good dollar inflows to close the day at 46.6550/6650 on Monday against the dollar up from Friday's close of 46.73/74 in the local currency markets. "There was good dollar supplies in the market mainly through foreign banks and there seemed to be no corporate demand,'' said a dealer in a private sector bank. The central bank was seen trying to curb the appreciation of the rupee by buying dollars at 46.65 levels through state-run banks, said a dealer. The rupee touched an intra-day high of 46.6175, but came off to close lower due to RBI intervention. The rupee opened the day at 46.70/71, which was the intra-day low.
Back to News Review index page  

Rush for Maruti IPO continues
Mumbai: Maruti Udyog Ltd's (MUL) public issue continued to receive good response from the investor on the fourth day on Monday, with the issue over-subscribed by over four times with maximum bids received at Rs 120 per share. The issue opened on June 12 and is scheduled to close on June 19. The floor price for the issue is fixed at Rs 115 for Rs 5 face-value share. According to the stock exchange Web sites, till late evening, the issue received bids for 29.45 crore shares compared to the issue size of 7.22 crore shares. Of the total bids received, bids for 20.31 crore shares were received at Rs 120 per share, almost 68 per cent of the total bids received till now. The second highest number of shares bids were received at Rs 115 for 1.19 crore shares.
Back to News Review index page