|
Continuing rally in the US markets, declining oil prices and strong rally
in most Asian markets all led to the markets opening with a huge positive
gap of over a per cent. Technology stocks and select banking stocks lifted
the indices.
The
indices traded within a band till noon, though with a slight negative bias.
News of heavy selling by FII's in the futures segment yesterday saw the markets
declining early in the afternoon. The
indices attempted a bounce back later in the afternoon only to give up towards
close. Profit booking in the last half hour saw the markets giving up most
of the gains made in the morning. Sensex
closed at 6479, up 32 points and the Nifty at 1991, up 8 points. Nifty May
futures discount to the spot index widened marginally to 14 points from yesterday's
13 points. Among
Nifty stocks, Bajaj Auto, Infosys and Oriental Bank of Commerce were the major
percentage gainers while Reliance Energy, HPCL and Reliance Industries were
the major losers. Yesterday,
US markets extended third gains into the third straight day with both Dow
and NASDAQ gaining well over a per cent each. The Dow has gained close to
3 per cent in the first three days of the week. The markets turned bullish
after data showed the consumer price index, excluding retail fuel prices,
remained unchanged for April. The index had gone up for March raising concerns
of inflation and faster interest rate hikes by the US Fed. Declining oil prices
added to the positive sentiment. NYMEX
Crude oil futures for June delivery crashed over 3 per cent yesterday to close
near the $47 per barrel mark. The crash was triggered by US government data
showing crude inventories much higher than market expectations. Crude opened
weak today morning and was trading around the $47 level before moving higher
by one half of a per cent. Indian
ADR's had a spectacular run in the US exchanges yesterday with most of them
rising over 3 per cent each. ICICI Bank was the star with a close to 5 per
cent gain. HDFC Bank did not disappoint either with gains of over 3 per cent.
Tech stocks had another fantastic day as Wipro gained close to 5 per cent.
Infosys and Satyam posted gains of around 4 per cent. Telecom stocks VSNL
and MTNL both gained over 4 per cent each. Tata Motors and Dr. Reddy's also
closed with gains. After
remaining a mute spectator to the Reliance family feud so far, the government
finally ordered the Registrar of Companies to send notice to Reliance Industries
regarding the allegations made by Anil Ambani. The directive is seen more
as a move to cool down criticism of government inaction. ICICI
Bank was the star in morning trades as the stock leapt over 5 per cent after
the bank announced the acquisition of a Russian bank. The gains could not
be maintained however, and the stock closed with gains of under a per cent. The
Russian bank being acquired by ICICI is very small with total assets of just
over $4 million. ICICI is hopeful that the acquisition will offer an entry
into the Russian retail finance market as well as opportunities in corporate
lending. Tata
Steel announced its fourth quarter and yearly results for the period ended
March 2005. For the fourth quarter, profits have grown over 44 per cent on
a revenue growth of over 20 per cent. This was better than market expectations. Tata
Steel is reported to have re-negotiated its long term contracts at higher
prices in the current quarter. This will help the company to post better margins
going forward when steel prices are expected to decline. The stock gained
over a per cent. Bajaj
Auto gained close to 3 per cent by noon after opening almost flat. The company
is spending Rs200 crore on capacity additions over the next year or so. The
company is also launching 3 new scooter models to revive its fortunes in that
segment. It is also negotiating to pick up equity stakes in Japanese major
Kawasaki's ventures in the Philippines and Thailand. Bajaj Auto is hopeful
of achieving a 25 to 30 per cent growth in sales of motor cycles during the
current year. Mid-cap
action Spicejet,
which is launching its low cost airline operations, gained in early trades
after the company reported more than 37,000 tickets sold on the first day
of booking yesterday. As an inaugural offer, the company is offering most
tickets at very low prices. The
aggressive pricing from Spicejet invited an immediate reaction from the other
new entrant Kingfisher, which slashed its fares yesterday. There are reports
that full service carriers like Jet Airways are also contemplating a downward
price revision.
Swaraj Mazda gained over 8 per cent in early trades after media reports about
Sumitomo of Japan offering to buy a 15 per cent stake in the company from
the promoters at Rs400 per share. Private equity firm Actis had recently made
an open offer for Swaraj Mazda at the same price. If it goes through, Sumitomo
will become the single largest shareholder in the company as it already holds
over 10 per cent. Recently
listed BPO company, Allsec, attracted heavy buying after reports about the
company tying up with an Israeli technology company to offer management solutions
to other BPO companies. Allsec had reported good results for the quarter ended
March 2005. The stock closed with gains of over 12 per cent. Godrej
Industries was locked in the 20 per cent upper circuit after the promoters
indicated that they are planning to develop the real estate the company owns
in Mumbai. The company says it is also open to accept foreign investment for
such development if required. Aptech
Limited is another stock attracting a lot of buying attention. The company
is one of the larger players on the IT education business and has a good presence
in China as well. Many overseas investors, including the private investment
arm of Intel Corp, are positive about the growth in education business. The
stock closed with gains of over 16 per cent. Textile
stocks saw further buying on reports about the US imposing more quotas on
imports from China. Such quotas along with a possible revaluation of the Chinese
yuan will be beneficial to Indian exporters, who have seen some decline in
margins in the post-quota regime though volumes have moved up.  Among
mid-cap stocks, Noida Toll Bridge, DCM and Murudeshwar Ceramics were the significant
percentage gainers.
Easun Reyrolle, Jaybharat Maruti and Deepak Fertilizers were among the major
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
|
6,478.94
|
+31.94
|
| NIFTY
|
1,990.85
|
+8.10
|
Last
Update : 19 May, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| BAJAJ
AUTO |
1,190.00
|
1,249.00
|
1,185.00
|
1,243.00 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,060.00
|
2,110.00
|
2,050.00
|
2,098.50 |
| SATYAM
COMP |
437.80
|
445.00
|
435.00
|
440.75 |
| BHARTI
TELE |
216.50
|
218.40
|
215.00
|
216.85 |
| GUJARAT
AMBUJA CEMENTS LTD. |
445.25
|
445.80
|
442.00
|
443.65 |
| WIPRO
LTD. |
657.70
|
666.00
|
651.05
|
657.40 |
| I
T C LTD |
1,485.00
|
1,524.50
|
1,485.00
|
1,499.95 |
| LARSEN
& TOUBRO LTD. |
1,038.00
|
1,055.00
|
1,028.70
|
1,046.05 |
| HEROHONDA
M |
558.00
|
565.00
|
555.00
|
560.70 |
| GRASIM
INDUSTRIES LTD. |
1,126.00 |
1,137.00
|
1,126.00
|
1,130.00 |
| ICICI
BANK L |
398.90
|
412.20
|
388.10
|
393.35 |
| ZEE
TELEF LT |
154.00
|
154.95
|
151.00
|
153.00 |
| BHEL |
839.00 |
848.00
|
838.00
|
841.35 |
| HDFC
BANK LT |
539.90
|
548.00
|
536.20
|
537.30 |
| RELIANCE*
|
531.45
|
535.00
|
522.55
|
524.20 |
| HINDUSTAN
PETROLEUM CORP. LTD. |
330.00
|
331.00
|
320.25
|
323.50 |
| RELIANCE
ENR* |
491.00
|
493.00
|
481.00
|
483.25 |
| HOUSING
DEVELOPMENT FINANCE CO |
766.00
|
766.00
|
758.00
|
758.00 |
| STATE
BANK OF INDIA |
645.35
|
652.00
|
636.00
|
638.25 |
| TATA
POWER |
368.00
|
370.00
|
360.10
|
363.60 |
| HINDALCO
IN |
1,188.00
|
1,196.05
|
1,160.00
|
1,168.45 |
| ONG
CORP LTD |
861.00
|
864.90
|
850.00
|
856.50 |
| CIPLA
LTD. |
279.25
|
280.45
|
275.50
|
276.90 |
| RANBAXY
LABORATORIES LTD. |
978.00 |
983.05
|
964.00
|
967.25 |
| TATA
MOTORS |
443.00
|
443.90
|
433.50
|
435.95 |
| ASSOCIATED
CEMENT COMPANIES LT |
384.00
|
388.00
|
380.00
|
380.85 |
| HINDUSTAN
LEVER LTD. |
131.80
|
131.80
|
130.00
|
130.25 |
| DR.REDDY'S
LABORATORIES LTD. |
682.00
|
689.00
|
678.00
|
681.25 |
| MARUTI
UDYOG |
448.00
|
454.40
|
443.00
|
446.20 |
| TATA
IRON AND STEEL CO. LTD. |
360.50
|
365.30
|
355.10
|
356.95 |
Last
Update : 19 May, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| TISCO
|
360.00
|
365.90
|
354.90
|
356.75 |
| INFOSYSTCH
|
2065.00
|
2110.00
|
2065.00
|
2096.75 |
| RELIANCE
|
531.00
|
535.00
|
522.65
|
524.30 |
| SATYAMCOMP
|
438.00
|
445.75
|
438.00
|
440.95 |
| SBIN
|
645.00
|
651.90
|
635.50
|
638.60 |
| ITC
|
1485.00
|
1524.50
|
1481.00
|
1498.75 |
| MARUTI
|
449.00
|
454.00
|
442.30
|
446.15 |
| TATAMOTORS
|
437.05
|
444.00
|
433.00
|
435.75 |
| TCS
|
1153.45
|
1172.00
|
1153.20
|
1162.50 |
| ONGC
|
861.00
|
865.00
|
850.00
|
855.25 |
| RANBAXY
|
971.10
|
985.00
|
961.25
|
967.25 |
| LT
|
1036.80
|
1053.40
|
1028.00
|
1044.15 |
| SAIL
|
52.00
|
52.45
|
51.30
|
51.45 |
| ORIENTBANK
|
264.20
|
269.95
|
264.00
|
267.05 |
| HINDPETRO
|
328.50
|
332.00
|
319.20
|
322.85 |
| PNB
|
382.00
|
386.85
|
381.50
|
383.65 |
| WIPRO
|
660.00
|
667.00
|
651.25
|
658.05 |
| M&M
|
473.60
|
486.50
|
472.10
|
476.15 |
| ICICIBANK
|
395.50
|
414.80
|
388.20
|
393.70 |
| BPCL
|
378.00
|
385.00
|
372.00
|
375.90 |
| GAIL
|
226.05
|
229.50
|
220.10
|
221.25 |
| BAJAJAUTO
|
1185.25
|
1239.70
|
1185.25
|
1223.70 |
| HINDLEVER
|
132.00
|
132.00
|
130.00
|
130.25 |
| HEROHONDA
|
555.00
|
564.90
|
555.00
|
560.65 |
| BHARTI
|
215.00
|
218.60
|
214.50
|
217.10 |
| HINDALC0
|
1199.00
|
1199.00
|
1160.00
|
1167.45 |
| CIPLA
|
278.60
|
280.25
|
275.10
|
277.05 |
| HDFCBANK
|
544.80
|
545.00
|
539.00
|
543.10 |
| ZEETELE
|
152.70
|
155.00
|
150.75
|
153.00 |
| BHEL
|
833.00
|
849.00
|
833.00
|
843.30 |
| ACC
|
383.80
|
387.00
|
380.00
|
381.60 |
| DRREDDY
|
680.00
|
691.00
|
678.00
|
682.15 |
| GUJAMBCEM
|
440.00
|
445.20
|
440.00
|
443.25 |
| REL
|
514.40
|
514.40
|
480.10
|
482.70 |
| TATACHEM
|
163.00
|
165.75
|
162.50
|
164.15 |
| IPCL
|
166.20
|
166.20
|
162.50
|
163.00 |
| TATAPOWER
|
365.60
|
369.40
|
363.20
|
364.85 |
| SCI
|
151.00
|
152.05
|
150.15
|
150.90 |
| HDFC
|
764.90
|
768.00
|
757.90
|
762.15 |
| HCLTECH
|
340.00
|
349.70
|
339.20
|
341.45 |
| NATIONALUM
|
151.00
|
151.00
|
146.00
|
146.45 |
| MTNL
|
117.00
|
118.50
|
117.00
|
117.20 |
| GRASIM
|
1129.30
|
1133.90
|
1128.10
|
1130.00 |
| GLAXO
|
715.50
|
740.00
|
715.50
|
735.10 |
| ABB
|
1285.00
|
1309.95
|
1275.10
|
1297.75 |
| SUNPHARMA
|
517.95
|
517.95
|
509.45
|
512.70 |
| TATATEA
|
536.90
|
538.00
|
528.10
|
529.85 |
| VSNL
|
212.80
|
212.80
|
207.20
|
208.15 |
| DABUR
|
123.60
|
124.50
|
121.75
|
123.45 |
| COLGATE
|
209.15
|
212.50
|
208.00
|
209.10 |
Last
Update : 19 May, 2005, 16:04PM
| 
