|
After two days of re-writing records, markets turned somewhat volatile today.
The indices had a very uncertain opening, dipping sharply and recovering very
fast. The recovery took the indices to new all time highs in the morning.
Profit
booking emerged in the morning itself as some traders exited the positions.
Operators have also started cutting down exposures in the derivatives segment
ahead of the settlement next Thursday.
Weakness
in Infosys, TCS, Reliance Industries and ICICI Bank led the down trend. After
declining steadily till about noon, markets stabilised for almost an hour.
Some
recovery was seen towards close of trade, which took the indices back to previous
day's closing levels.
The
Sensex closed at 7120, down 25 points and the Nifty at 2184, down 3 points
from yesterday's close. Nifty June futures discount to the spot narrowed to
15 points from yesterday's 21 points.
Among
Nifty stocks, Shipping Corporation, Hero Honda and Bajaj Auto were the major
percentage gainers while TCS, Infosys and HDFC Bank were the major losers.
US
markets had a fair opening yesterday as bond yields continue to trend lower.
Lower bond yields would normally drive more money into the stock markets.
The gains could not be sustained and the major indices closed on a flat note
for the second day. While Dow closed marginally lower, NASDAQ closed with
a gain of 1 point.
Crude
oil futures for August delivery dropped close to 2 per cent as decline in
US crude inventories were lower than expected. The stock of refined products
showed a healthy increase in the weekly inventory data. The commodity closed
on the NYMEX at $58.09. Indian
ADR's had a mixed trend in yesterday's trading after remaining quiet on the
previous day. HDFC Bank declined close to 2 per cent. MTNL, VSNL and Wipro
also closed with losses. Tata Motors, Satyam and Infosys were among the gainers.
Tata
Steel is eyeing another acquisition in East Asia. According to reports, the
company is looking at companies with 2 to 3-million-tonne capacity. The company
had acquired Singapore-based Natsteel last year and had announced significant
investments in Iran recently. Tata
Steel management does not expect the current weakness in global steel prices
to continue much longer. The company is optimistic of prices moving back to
higher levels within a few months. Tata
Steel firmed up in early trades with gains of close to 2 per cent. The gains
could not be sustained and the stock closed with gains of under a per cent. Ranbaxy
received tentative US FDA approval for a dermatology drug. The current market
size of the product in US is over $600 million per year. The stock closed
with gains of well over a per cent. Two-wheeler
stocks saw good buying throughout the day. Both Hero Honda and Bajaj Auto
gained over 2 per cent each in early trades. TVS Motors gained close to 4
per cent. Traders
took fresh positions in the two-wheeler stocks as the revival in monsoons
is expected to boost rural incomes and hence two-wheeler sales. Hero Honda
closed with gains over 4 per cent. Bajaj Auto closed at a lifetime high with
gains of over 3 per cent. Hero
Honda launched a new 125cc motor bike in the executive segment today. The
bike is priced at around Rs45,000 and is aimed at further strengthening the
company's grip in the mid-priced motorcycles segment. Indian
Oil confirmed that its board has approved the proposal to pursue an acquisition
in Singapore. However, the company refused to specify the acquisition target.
Some news agencies had reported yesterday that the company is planning to
acquire a 26 per cent stake in Singapore Petroleum from a financial investor.
GAIL
will hold a 28-per cent stake in an SPV being set up to revive the Dabhol
power project. PSU power major NTPC and domestic financial institutions would
hold the balance stake. The new company will be registered within a few days. GAIL
management said Dabhol would re-start power generation by 2006. GAIL is also
planning to spend Rs13,000 crore to lay four new gas pipelines in the country
over the next five years. The stock closed without much change. The
management of VSNL is not unduly perturbed after losing part of ILD business
from BSNL to Bharti and Reliance. The company says it has taken a strategic
decision to reduce dependence on voice business, which is down to 57 per cent
of the total business. VSNL
expects data business to grow by 50 per cent in the near future. Tyco Global
Network, which VSNL acquired last year, would add significantly to the company's
data business. The company expects to start services in South Africa by next
year and is planning to invest $100 million there. The stock closed flat.
Technology
stocks had a poor session as heavyweights Infosys and TCS corrected. There
are reports that global pharma major Pfizer would outsource IT services to
Infosys and Satyam in the near future. Public
Sector banks attracted a lot of buying today. Led by SBI, most of them posted
handsome gains. The recent rally in bond markets may help some of these banks
to post good profits from treasury operations. SBI closed with gains of over
3 per cent while both Punjab National Bank and Oriental Bank gained over 2
per cent each. Mid-Cap
Action Mid-caps
exhibited much more volatility than the front line stocks during the day.
After opening with decent gains, the index declined rapidly and was trading
in the red by noon. They recovered towards close and outperformed the larger
stocks. CNX Mid-Cap 200 index closed at 3009, a gain of 14 points. Amararaja
Batteries announced an original equipment agreement with Hyundai India. Under
the deal, the company's Amaron range of automotive batteries will be used
in some of the Hyundai models. The stock gained over 9 per cent on the announcement.
The
company is a supplier to many auto majors as well as the railways. Amararaja
is the exclusive supplier to Maruti for its recently launched model Swift.
The stock saw more buying emerge in the last hour, which took it to the upper
circuit of 20 per cent. Ucal
Fuel Systems gained over 3 per cent after reports that Exim Bank of India
would take a 20 per cent stake in its recently acquired US subsidiary. There
are also reports that SBI would extend credit facilities for the company's
US operations. Full
year consolidated profits of Ciba Speciality Chemicals has increased close
to 65 per cent for the year ended March 2005 as compared to the pervious year
on a revenue growth of over 20 per cent. Fourth
quarter profits of Ciba Speciality rose close to 55 per cent as revenues increased
over 20 per cent. The stock gained over 10 per cent after the announcement. Amtek
Auto saw a huge block deal of over 26-lakh shares on the BSE today at close
to Rs175 per share. SpiceJet
Limited would raise $90 million by way of an overseas bond issue. The company
would lease four more Boeing 737 aircrafts by the end of the year. The company
expects to turn in a profit during the current year itself. Hindustan
Oil Exploration rallied over 5 per cent on the back of firm crude prices.
 Infomedia
India, ITI Limited and Indian Hume Pipe were among the best performing stocks
among mid-caps.
Indian
Card Clothing, Thiru Arooran Sugar and Unitech 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. Other
articles by Rex Mathew List
of general reports on markets List
of general reports on finance
Market:
Indices
National
Markets
Gain (+) / Loss (-)
|
SENSEX
|
7,119.76
|
-
25.58 |
| NIFTY
|
2,183.85
|
-
3.50 |
Last
Update : 23 June, 2005, 16:13 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| HEROHONDA
M |
555.00
|
584.90
|
554.00
|
580.80 |
| STATE
BANK OF INDIA |
662.25
|
685.90
|
656.65
|
683.30 |
| BAJAJ
AUTO |
1,272.00
|
1,330.00
|
1,265.10
|
1,311.60 |
| RANBAXY
LABORATORIES LTD. |
1,085.00
|
1,100.00
|
1,081.80
|
1,097.85 |
| HINDALCO
IN |
1,185.00
|
1,199.75
|
1,151.00
|
1,194.45 |
| ASSOCIATED
CEMENT COMPANIES LT |
384.80
|
394.00
|
380.50
|
386.70 |
| HINDUSTAN
LEVER LTD. |
155.00
|
156.80
|
153.30
|
155.10 |
| GUJARAT
AMBUJA CEMENTS LTD. |
65.00
|
66.15
|
64.15
|
64.45 |
| TATA
IRON AND STEEL CO. LTD. |
379.00
|
379.00
|
363.55
|
365.45 |
| DR.REDDY'S
LABORATORIES LTD. |
730.00
|
736.75
|
728.00
|
732.55 |
| BHARTI
TELE |
239.00
|
242.00
|
236.20
|
238.40 |
| NTPC
LTD |
84.95
|
85.70
|
84.05
|
84.25 |
| TATA
MOTORS |
415.15
|
429.70
|
414.00
|
425.70 |
| TCS
LTD |
1,335.00
|
1,339.00
|
1,303.25
|
1,306.55 |
| HOUSING
DEVELOPMENT FINANCE CO |
873.00
|
873.00
|
850.10
|
854.05 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,388.00
|
2,388.00
|
2,337.15
|
2,343.50 |
| HDFC
BANK LT |
590.25
|
595.00
|
575.25
|
579.20 |
| LARSEN
& TOUBRO LTD. |
1,125.00
|
1,137.25
|
1,107.10
|
1,117.50 |
| RELIANCE
ENR |
658.00
|
668.60
|
642.00
|
645.70 |
| RELIANCE*
|
659.90
|
659.90
|
646.30
|
650.60 |
| MARUTI
UDYOG |
464.00
|
472.20
|
461.50
|
464.45 |
| ICICI
BANK L |
424.00
|
425.00
|
409.25
|
417.75 |
| SATYAM
COMP |
513.75
|
514.80
|
501.30
|
508.05 |
| ONG
CORP LTD |
960.10
|
964.90
|
948.65
|
953.05 |
| CIPLA
LTD. |
315.00
|
316.00
|
307.55
|
310.80 |
| GRASIM
INDUSTRIES LTD. |
1,107.50 |
1,107.50
|
1,094.25
|
1,095.90 |
| WIPRO
LTD. |
760.00
|
763.00
|
754.00
|
755.85 |
| TATA
POWER |
380.90
|
384.70
|
374.50
|
376.95 |
| I
T C LTD |
1,580.00
|
1,590.00
|
1,563.00
|
1,575.75 |
| BHEL
|
858.90
|
865.00
|
845.10
|
852.80 |
Last
Update : 23 June, 2005, 16:02PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
654.20
|
655.05
|
646.70
|
650.60 |
| SATYAMCOMP
|
512.20
|
514.50
|
505.80
|
509.55 |
| SBIN
|
663.00
|
685.25
|
657.10
|
683.20 |
| INFOSYSTCH
|
2395.00
|
2395.00
|
2338.15
|
2344.25 |
| TISCO
|
366.30
|
372.60
|
363.60
|
365.95 |
| REL
|
652.00
|
668.75
|
642.50
|
646.20 |
| TATAMOTORS
|
425.50
|
430.00
|
414.00
|
426.85 |
| ONGC
|
964.00
|
964.90
|
949.00
|
955.55 |
| HEROHONDA
|
555.00
|
584.00
|
555.00
|
580.80 |
| TCS
|
1330.00
|
1337.75
|
1305.00
|
1307.40 |
| ACC
|
384.50
|
393.90
|
380.05
|
386.90 |
| RANBAXY
|
1089.00
|
1102.80
|
1081.00
|
1097.60 |
| ITC
|
1580.00
|
1589.00
|
1563.00
|
1573.30 |
| MARUTI
|
467.65
|
471.70
|
461.10
|
465.30 |
| BAJAJAUTO
|
1265.00
|
1350.00
|
1262.05
|
1312.85 |
| HINDLEVER
|
155.00
|
156.70
|
153.10
|
155.35 |
| BHARTI
|
239.00
|
241.80
|
236.05
|
238.40 |
| WIPRO
|
755.00
|
762.00
|
752.00
|
756.55 |
| SAIL
|
52.90
|
53.50
|
52.25
|
52.35 |
| LT
|
1133.00
|
1135.00
|
1109.00
|
1116.70 |
| CIPLA
|
314.50
|
314.50
|
307.30
|
310.70 |
| PNB
|
382.00
|
390.75
|
381.50
|
389.70 |
| GUJAMBCEM
|
65.00
|
66.20
|
64.05
|
64.55 |
| M&M
|
581.80
|
584.00
|
571.35
|
582.95 |
| IPCL
|
167.00
|
169.20
|
165.55
|
166.95 |
| ICICIBANK
|
421.00
|
421.50
|
402.15
|
418.40 |
| GAIL
|
220.05
|
224.40
|
219.20
|
220.25 |
| SCI
|
139.90
|
145.90
|
138.50
|
145.40 |
| ZEETELE
|
151.05
|
154.30
|
148.10
|
149.95 |
| HDFC
|
865.00
|
878.90
|
852.25
|
860.10 |
| ORIENTBANK
|
258.00
|
263.90
|
256.20
|
262.85 |
| HDFCBANK
|
598.40
|
598.40
|
575.00
|
580.55 |
| TATAPOWER
|
375.00
|
384.00
|
374.50
|
377.80 |
| GRASIM
|
1090.00
|
1107.90
|
1090.00
|
1095.25 |
| BHEL
|
855.00
|
864.90
|
845.50
|
850.55 |
| DRREDDY
|
730.05
|
737.00
|
727.00
|
733.65 |
| BPCL
|
370.00
|
370.90
|
364.00
|
364.50 |
| HINDALC0
|
1180.85
|
1199.00
|
1175.00
|
1194.50 |
| VSNL |
233.00 |
237.00
|
230.20
|
233.05 |
| TATACHEM
|
170.80
|
173.55
|
168.90
|
171.90 |
| HINDPETRO
|
317.90
|
319.80
|
315.00
|
316.65 |
| MTNL
|
118.90
|
119.30
|
117.50
|
117.95 |
| TATATEA
|
586.55
|
596.50
|
585.50
|
593.70 |
| HCLTECH
|
393.00
|
393.20
|
385.10
|
387.45 |
| SUNPHARMA
|
557.10
|
568.00
|
550.00
|
566.55 |
| NATIONALUM
|
145.20
|
145.20
|
143.50
|
144.00 |
| COLGATE
|
231.50
|
232.40
|
227.80
|
229.40 |
| GLAXO
|
796.00
|
796.00
|
770.55
|
782.60 |
| DABUR
|
132.00
|
132.00
|
128.45
|
130.55 |
| ABB
|
1295.00
|
1315.00
|
1294.00
|
1311.45 |
Last
Update : 23 June, 2005, 16:00PM
| 
