|
Not many expected the markets to resume their rally today after yesterday's
mild correction. US markets tumbled yesterday and most Asian markets had opened
weak in the morning. Though the monsoon is showing signs of progress, it is
late by over a week, and rainfall in June has been much lower than normal.
The
opening went as per script, with both the Sensex and the
Nifty declining close to half per cent each. The recovery
came fast enough, surprising most by its refusal to give
in, initiating an up trend.
The
indices maintained a steady up trend till the closing minutes on a mix of
fresh buying and short covering. The rally was supported by ONGC, TCS and
HLL. Some recovery in Reliance Industries towards noon also helped the indices.
The
last half hour saw a fair amount of volatility as the
indices came down substantially from the highs of the
day. However, the indices managed to recover and close
with decent gains.
The
Sensex closed at 7149, up 29 points, while the Nifty closed
at 2194, up 10 points from yesterday's close. Nifty June
futures discount to the spot widened marginally to 16
points from yesterday's 15 points.
Among
Nifty stocks, Tata Tea, HLL and Hero Honda were the major percentage gainers
while Gujarat Ambuja, Satyam Computers and SCI were the major losers.
US
markets were spooked by the continuing rise in crude oil prices yesterday.
Traders decided to take profits after last two weeks' gains, on renewed worries
of high fuel prices affecting consumer spending.
The
Dow lost over one and a half per cent, while the S&P 500 and NASDAQ lost
over a per cent each.
The
near month crude oil futures touched the $60 to a barrel mark for the first
time ever yesterday. Crude futures for August delivery closed on the NYMEX
at $59.42, a gain of more than 2 per cent over the previous day's closing.
The commodity is trading with gains of half a per cent and is inching towards
$60 in early European trades today.
Except
Tata Motors, none of the Indian ADR's could hold firm
in the sharp fall in US markets yesterday. The tech stocks
were the worst hit with Infosys, Wipro and Satyam all
closing with losses of well over 2 per cent each. HDFC
Bank, ICICI Bank and VSNL also ended with losses of over
a per cent each. MTNL and Dr. Reddy's closed with marginal
losses. Tata Motors, which had seen some decline in the
last two weeks, gained around 2 per cent.
Inflation,
for the week ended 11 June, inched up marginally to 4.33
per cent from 4.22 per cent reported for the week before
on higher food prices.
There
are reports that the oil ministry has cleared the proposed
ONGC petrochemical complex to be located at Mangalore,
Karnataka. The company had proposed the investments more
than a year ago and there were frequent reports that the
ministry was against the diversification move.
The
ministry had taken the stand that ONGC should stick to its core business of
exploration and should not try to become an integrated petroleum and petrochemicals
company. Now that the proposal has been cleared, it will go to the PMO for
final approval before coming up for cabinet consideration.
There
are also reports of ONGC striking a new gas discovery
in the Krishna-Godavari basin. Record high crude prices
have kept the stock on an up-trend for the last couple
of weeks. The stock gained close to 2 per cent.
Reliance
Capital has been buzzing ever since the announcement of the Ambani settlement
last weekend. Anil Ambani has announced an open offer for 20 per cent of the
company at Rs231 per share. But the share price is way above the offer price
and touched a new all time high of Rs345 today and closed with gains of well
over 10 per cent. The
latest buzz is that the company has received bids for over $1 billion from
overseas investors for a proposed preferential issue. The company is planning
an issue of only $75 million and the strong interest from foreign investors
have encouraged traders to speculate on continued FII buying in the stock
even after the offer.
Even
after considering the interest from foreign investors,
it is surprising to see the stock trading almost 50 per
cent above the offer price. It will be a bit too far fetched
to hypothesise that the acquiring parties would hike the
offer price by over 50 per cent. Also, the rumour that
the company may get a banking license soon may remain
just that - a rumour.
Hero
Honda is planning to set up its third assembly line in South India. The stock
closed with gains of close to 4 per cent.
According
to reports, IDBI is conducting due diligence on IFCI and
on the basis of this it would arrive at a decision on
a possible merger. During the day, IDBI denied the reports
and said it was too early to talk about the merger. IDBI
lost over 6 per cent in today's trade.
IFCI
may offer a fresh round of VRS to its employees to reduce
the workforce and improve the bottom line before any merger.
The financial institution has gross non-performing assets
of a massive Rs12,000 crore on its books.
In
the last one year, IFCI has been fairly sucessfull in
recovering a part of these losses and the process continues.
A few years back, there was a proposal to merge IFCI with
the Punjab National Bank, which had met with considerable
opposition.
FMCG
stocks were the stars of today's trade with all the frontline
stocks from the sector posting significant gains. Heavyweight
HLL maintained a steady up-trend throughout the day and
gained over 5 per cent by close.
Among
other FMCG stocks, Tata Tea also gained over 5 per cent followed by Colgate
with over 2 per cent and ITC with close to 2 per cent.
Mid-cap
action
Many
mid-caps continue to see large block deals as FII's continue
mopping up large blocks of good quality stocks. The mid-cap
index too opened on a weak note but outperformed the frontline
stocks for the rest of the day. CNX Mid-Cap 200 index
closed at 3029, a gain of 22 points.
There
are reports that Kinetic Motors would offer a 20 per cent
stake to foreign investors through a preferential issue.
The company is hiking its authorised capital to enable
the issue.
Kinetic
recently launched a new range of premium scooters imported from Italjet. It
had also launched high end imported motor cycles from Hyosung of Korea earlier.
The stock rallied over 10 per cent in early trades and closed with gains of
6 per cent.
Force
Motors, formerly Bajaj Tempo, will launch heavy trucks
and trailers imported from MAN of Germany. The stock closed
with gains of over 5 per cent on the BSE. Currently, Volvo
is the only player in this segment. Tata Motors and Daimler
Chrysler are also planning to launch similar products
in the near future.
Media
stocks saw a lot of action today with many of them flying around. NDTV led
the pack with gains of over 7 per cent. Pritish Nandy Communications gained
close to 20 per cent while Mid-Day Multimedia also closed with considerable
gains. Most
sugar stocks closed with very good gains for the day. Bajaj Hindustan, Balarampur
Chini and Dhampur Sugar were among the major gainers. Another
sector which attracted a lot of buying interest today was paper. Most stocks
went up on speculation about another round of price hikes. Ballarpur Industries,
Orient Paper and TN Newsprint were among the significant gainers.  Rain
Calcining, Vindhya Telelink and Asian Electronics were among the best performing
stocks among mid-caps.
Ashapura
Minechem, Indian Hume Pipe and Suryalakshmi Cotton 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
|
7,148.62
|
+
28.86 |
| NIFTY
|
2,194.35
|
+
10.50 |
Last
Update : 24 June, 2005, 16:13 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| HINDUSTAN
LEVER LTD. |
155.40
|
164.80
|
153.55
|
163.30 |
| HEROHONDA
M |
579.00
|
609.00
|
570.00
|
602.60 |
| I
T C LTD |
1,571.00
|
1,609.00
|
1,562.10
|
1,603.90 |
| LARSEN
& TOUBRO LTD. |
1,117.50
|
1,144.00
|
1,102.50
|
1,136.55 |
| MARUTI
UDYOG |
463.00
|
474.40
|
457.00
|
471.90 |
| ONG
CORP LTD |
954.00
|
979.00
|
948.00
|
968.15 |
| TCS
LTD |
1,303.00
|
1,338.80
|
1,291.00
|
1,327.10 |
| NTPC
LTD |
83.50
|
86.10
|
83.50
|
85.55 |
| HINDALCO
IN |
1,192.55
|
1,225.00
|
1,185.00
|
1,209.45 |
| TATA
MOTORS |
424.70
|
433.00
|
421.25
|
430.45 |
| CIPLA
LTD. |
310.00
|
317.95
|
306.00
|
314.25 |
| BAJAJ
AUTO |
1,310.00
|
1,325.00
|
1,300.00
|
1,322.00 |
| RELIANCE*
|
645.05
|
658.50
|
642.20
|
654.70 |
| RANBAXY
LABORATORIES LTD. |
1,095.00
|
1,120.00
|
1,095.00
|
1,104.15 |
| GRASIM
INDUSTRIES LTD. |
1,103.00
|
1,110.00
|
1,091.25
|
1,099.50 |
| HDFC
BANK LT |
580.00
|
587.00
|
573.30
|
580.25 |
| ICICI
BANK L |
410.00
|
422.00
|
410.00
|
418.20 |
| BHEL
|
850.00
|
856.80
|
847.00
|
849.40 |
| GUJARAT
AMBUJA CEMENTS LTD. |
65.05
|
65.05
|
62.30
|
62.55 |
| SATYAM
COMP |
504.00
|
505.00
|
496.50
|
498.05 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,336.00
|
2,345.00
|
2,302.00
|
2,312.45 |
| WIPRO
LTD. |
755.00
|
758.00
|
743.50
|
750.40 |
| DR.REDDY'S
LABORATORIES LTD. |
728.00 |
732.00
|
725.00
|
727.25 |
| ASSOCIATED
CEMENT COMPANIES LT |
385.75
|
387.50
|
382.50
|
384.00 |
| STATE
BANK OF INDIA |
682.00
|
688.45
|
675.45
|
678.80 |
| TATA
IRON AND STEEL CO. LTD. |
366.15
|
367.40
|
360.70
|
363.40 |
| HOUSING
DEVELOPMENT FINANCE CO |
835.00
|
855.00
|
835.00
|
851.20 |
| TATA
POWER |
377.00
|
379.50
|
374.00
|
375.90 |
| RELIANCE
ENR |
649.80
|
655.00
|
640.40
|
644.30 |
| BHARTI
TELE |
236.00
|
239.10
|
232.05
|
238.15 |
Last
Update : 24 June, 2005, 16:02PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
649.00
|
658.50
|
643.05
|
654.65 |
| INFOSYSTCH
|
2320.00
|
2345.00
|
2302.10
|
2313.05 |
| SATYAMCOMP
|
500.50
|
504.60
|
496.00
|
498.05 |
| ONGC
|
946.80
|
979.00
|
946.80
|
968.50 |
| SBIN
|
683.05
|
689.00
|
675.05
|
678.60 |
| TISCO |
363.00 |
366.85
|
360.50
|
363.00 |
| REL
|
649.00
|
655.00
|
636.00
|
644.85 |
| TCS
|
1300.00
|
1338.30
|
1295.00
|
1325.75 |
| HEROHONDA
|
577.80
|
608.00
|
562.25
|
601.95 |
| HINDLEVER
|
153.80
|
164.45
|
152.05
|
163.20 |
| MARUTI
|
458.00
|
474.40
|
456.20
|
471.80 |
| ITC
|
1556.00
|
1610.00
|
1556.00
|
1602.95 |
| TATAMOTORS
|
426.00
|
433.40
|
421.50
|
430.75 |
| WIPRO
|
755.00
|
756.45
|
742.30
|
749.80 |
| RANBAXY
|
1092.00
|
1119.85
|
1092.00
|
1103.90 |
| TATATEA
|
594.70
|
629.80
|
590.00
|
624.55 |
| LT
|
1117.05
|
1144.00
|
1100.90
|
1136.80 |
| CIPLA
|
311.05
|
317.90
|
309.00
|
314.30 |
| BPCL
|
363.00
|
374.50
|
361.10
|
366.80 |
| SAIL
|
52.25
|
53.00
|
50.50
|
52.10 |
| IPCL
|
167.00
|
169.65
|
165.05
|
167.15 |
| BAJAJAUTO
|
1295.00
|
1325.00
|
1295.00
|
1319.20 |
| HINDPETRO
|
316.00
|
316.00
|
312.00
|
314.05 |
| PNB
|
392.00
|
392.00
|
384.15
|
387.90 |
| GAIL
|
220.25
|
223.80
|
219.00
|
220.40 |
| HINDALC0
|
1194.00
|
1225.50
|
1193.95
|
1209.30 |
| HCLTECH
|
387.00
|
399.70
|
380.50
|
395.20 |
| GUJAMBCEM
|
64.55
|
64.80
|
62.25
|
62.70 |
| M&M
|
571.20
|
580.25
|
571.20
|
576.55 |
| HDFC |
854.70 |
858.00
|
840.15
|
849.85 |
| BHARTI
|
238.00
|
238.90
|
232.25
|
238.05 |
| ORIENTBANK
|
269.40
|
269.40
|
259.50
|
260.95 |
| ZEETELE
|
149.10
|
153.00
|
131.50
|
152.40 |
| MTNL
|
118.65
|
120.50
|
116.50
|
119.20 |
| ICICIBANK
|
417.70
|
421.50
|
412.05
|
418.35 |
| TATACHEM
|
173.00
|
175.80
|
172.00
|
174.15 |
| GRASIM
|
1095.05
|
1108.00
|
1085.00
|
1098.70 |
| ACC
|
387.90
|
387.90
|
383.10
|
384.05 |
| HDFCBANK
|
585.00
|
587.35
|
573.10
|
582.45 |
| BHEL
|
845.00
|
857.00
|
845.00
|
849.15 |
| COLGATE
|
229.80
|
236.80
|
227.00
|
234.65 |
| TATAPOWER
|
377.00
|
380.00
|
372.10
|
377.30 |
| NATIONALUM
|
143.50
|
146.10
|
143.45
|
144.10 |
| SCI
|
145.95
|
145.95
|
142.10
|
142.55 |
| VSNL
|
231.95
|
235.10
|
226.55
|
231.95 |
| SUNPHARMA
|
560.00
|
575.00
|
560.00
|
568.95 |
| GLAXO
|
783.00
|
798.95
|
783.00
|
791.15 |
| DRREDDY
|
701.65
|
733.00
|
701.65
|
728.35 |
| ABB
|
1301.00
|
1325.50
|
1294.50
|
1315.20 |
| DABUR
|
130.00
|
130.90
|
129.15
|
130.40 |
Last
Update : 24 June, 2005, 16:00PM
| 
