|
With the political environment showing signs of cooling
down after yesterday's unsuccessful terrorist attack in
Ayodhya, the markets turned their attention back to the
economic environment. Traders were greeted in the morning
by reports of good rains across the country, though flooding
has caused some damage in Gujarat.
The
Met department expects rains during the current month
to be very close to normal and the deficiency reported
in June will be wiped out by the end of the season. A
strong showing by the US markets yesterday added to the
positive sentiment and helped the markets to bounce back
after yesterday's correction.
After
remaining indecisive for the first hour, the indices started
an up trend which took them above the all time closing
highs posted on Monday. Early afternoon saw some decline
on profit booking.
The
last one hour saw the indices surging again which took
the Sensex very close to the 7300-mark.
Both
the Sensex and Nifty closed at a new all time closing
highs of 7287 and 2228 respectively. Gains on both indices
were more than three fourths of a per cent each. Nifty
July futures discount to the spot index narrowed considerably
to just 1 point.
Among
Nifty stocks, ABB, MTNL and HDFC were the major percentage
gainers while Bajaj Auto, Maruti and ONGC were the major
losers.
US
markets opened strong yesterday after the long holiday
weekend. The strong manufacturing outlook supported by
surging factory orders as per data released last week
and improved guidance from Wal-Mart supported the up trend.
Oil
company stocks gained on surging crude prices and helped
the US indices. The Dow closed with gains of two thirds
of a per cent while NASDAQ gained a per cent.
Crude
futures for August delivery on the NYMEX continued its
surge yesterday after Friday's bounce back of over 4 per
cent. The commodity gained 84 cents to a barrel to close
at $59.59.
Tuesday
was a good day for most Indian ADR's as well. ICICI Bank,
Dr. Reddy's and Tata Motors closed with gains of over
3 per cent while VSNL gained close to 3 per cent. Tech
stocks were largely subdued. Wipro and Satyam closed with
marginal gains while Infosys closed marginally lower.
HDFC Bank was the other loser yesterday.
After
the acquisition of Adlabs, Reliance Capital is reportedly
looking at buying life insurer AMP Sanmar. Reliance Capital
had received a life insurance license some years back
which was cancelled as the company did not start the business.
AMP
Sanmar is on the block as its joint-promoter, AMP of Australia,
is not keen on the life insurance business anymore. Many
domestic and international insurers are believed to be
interested in acquiring the company.
After
the consolidation of last few days, Reliance Capital surged
over 6 per cent in early afternoon trades today. Rumours
of impending announcements are rife in the market. There
were reports that Reliance Capital may acquire a large
stake in IndusInd Bank, which the company denied later.
The stock closed over 9 per cent higher.
Mahindra
group may come out with IPO's of three of the larger companies
in the group in future. While Mahindra British Telecom
is a major software exporter, M&M Financial Services
is an NBFC and Mahindra Automotive Steels manufactures
automobile components.
Mahindra
Automotive Steels had recently acquired some facilities
of forging company Amforge. M&M closed with gains
of close to 2 per cent at a new 52-week high.
Videocon
group is reportedly close to acquiring the Indian operations
of Swedish appliances major Electrolux. The group would
also get the Electrolux and Kelvinator brands for the
domestic market under license from Electrolux.
Electrolux
may also source appliances from Videocon for its global
operations. According to reports, this may bring business
worth over Rs5,000 crore to the group annually.
Videocon
group is also planning to merge Videocon International
and Videocon Industries. Videocon International gained
close to 10 per cent while Videocon Industries was locked
in the 5 per cent upper circuit today.
Indian Oil is reportedly facing a serious liquidity crunch
because of the large subdivides on petroleum products.
The company may report a net loss in excess of Rs1,500
crore for the first quarter ended June, unless the subsidies
are shared with refineries and crude producers.
Metal
stocks staged a smart comeback after the correction over
last few weeks on declining product prices. The bounce
back was triggered by unconfirmed reports that prices
of scrap metal has started going up again. Scrap prices
are considered to a leading indicator of finished metal
prices.
SAIL
closed with gains of close to 3 per cent while Tata Steel
closed with gains of close to a per cent. Among smaller
steel companies, Essar Steel gained close to 10 per cent
while Ispat Industries gained over 5 per cent. JSW Steel
gained 3 per cent.
Recovery
was seen in aluminium stocks as well. Both Hindalco and
Nalco closed with gains of over 2 per cent each.
The
rally in engineering major ABB continued today as well
and the stock gained over 5 per cent to touch a new lifetime
high. Siemens also closed with gains of well over a per
cent. L&T closed with gains of over 2 per cent while
BHEL gained close to 3 per cent.
Power
stocks also saw significant gains today. NTPC led the
pack with gains of around 4 per cent. Tata Power gained
well over 2 per cent while Reliance Energy closed with
gains of over a per cent.
Mid-Cap
Action
Mid-caps
bounced back smartly today after the sharp fall seen yesterday
afternoon. CNX Mid-Cap 200 index closed at 3128, a gain
of 46 points or close to one and a half per cent, a new
life time high.
3i
Infotech, which had come out with an IPO recently, is
planning to acquire companies in both the domestic market
and abroad. It is targeting companies with a top line
of around Rs100 crore. The company has also received orders
worth over $11 million recently. The stock closed over
3 per cent higher.
Hindustan
Constructions has won a new contract worth over Rs180
crore from the National Highway Authority. The stock closed
with marginal gains.
Many
mid-cap banking stocks saw considerable gains on renewed
speculation of possible mergers between smaller banks.
If rumours are to be believed, discussions are going on
between some of the South-based private banks. There are
also rumours that Reliance Capital has set its eyes on
some of these banks as well.
Karnataka
Bank closed with gains of 20 per cent while South Indian
Bank gained over 10 per cent. IndusInd Bank, Bank of Rajasthan,
Federal Bank and UTI Bank all saw gains of 4 per cent
or more.
Sugar
stocks also saw some buying interests on speculation that
some of the sugar manufacturers are planning projects
which may be eligible for carbon credits under the Kyoto
Protocol. There is also speculation that Pakistan may
lift the ban on sugar imports from India.
Balrampur
Chini, Upper Ganges, Bajaj Hindustan and Bannari Amman
were among the major gainers.
PSU
telecom equipment company ITI Limited gained over 5 per
cent to touch a new high. There are reports that the company
will start manufacture of mobile handsets with technology
from Alcatel of France.
Shares
of plywood manufacturer Uniply Industries got listed on
the bourses today after the recent IPO. The stock, issued
at Rs24, opened on the BSE at Rs29.6.
Zodiac
Clothing has proposed to issue bonus shares in the ratio
of one share for every share held, subject to shareholder
approval.
Jindal
Polyfilms is planning to invest around Rs300 crore in
Jammu for setting up a BOPP plant. The new plant will
raise the company's capacity to 90,000-tonnes per annum.
The company had raised funds from the market recently
through a public issue and the stock had seen a substantial
drop after the issue closed.
 Geodesic
Info, Crest Animation and India Bulls were among the best
performing stocks among mid-caps.
Ruby
Mills, Swaraj Engines and Hexaware 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
|
7,287.60
|
+
67.35 |
| NIFTY
|
2,228.20
|
+17.45
|
Last
Update : 6 July, 2005, 16:13 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| NTPC
LTD |
86.00
|
89.75
|
86.00
|
89.30 |
| BHEL
|
841.50
|
895.00
|
841.50
|
892.15 |
| HOUSING
DEVELOPMENT FINANCE CO |
900.00
|
936.00
|
900.00
|
930.70 |
| TATA
POWER |
390.00
|
400.00
|
390.00
|
399.40 |
| HINDALCO
IN |
1,230.00
|
1,269.90
|
1,230.00
|
1,257.70 |
| STATE
BANK OF INDIA |
705.00
|
724.90
|
705.00
|
720.70 |
| HDFC
BANK LT |
630.00
|
650.00
|
627.15
|
645.80 |
| LARSEN
& TOUBRO LTD. |
1,180.00
|
1,208.00
|
1,180.00
|
1,204.40 |
| RELIANCE
ENR |
645.30
|
650.00
|
641.00
|
648.15 |
| ASSOCIATED
CEMENT COMPANIES LT |
385.75
|
392.00
|
383.00
|
391.15 |
| DR.REDDY'S
LABORATORIES LTD. |
785.00
|
793.00
|
784.60
|
790.00 |
| RELIANCE*
|
640.00
|
646.80
|
640.00
|
645.10 |
| GUJARAT
AMBUJA CEMENTS LTD. |
60.80
|
61.00
|
59.75
|
60.35 |
| BHARTI
TELE |
241.55
|
245.50
|
240.50
|
243.90 |
| TATA
IRON AND STEEL CO. LTD. |
350.00
|
352.90
|
347.00
|
349.95 |
| GRASIM
INDUSTRIES LTD. |
1,056.00
|
1,064.00
|
1,050.55
|
1,060.55 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,332.00
|
2,354.90
|
2,320.00
|
2,347.30 |
| SATYAM
COMP |
500.00
|
507.40
|
499.05
|
501.85 |
| RANBAXY
LABORATORIES LTD. |
1,072.00
|
1,078.80
|
1,065.90
|
1,071.90 |
| CIPLA
LTD. |
322.00
|
323.90
|
319.00
|
320.20 |
| MARUTI
UDYOG |
460.00
|
465.90
|
457.60
|
459.55 |
| ONG
CORP LTD |
982.00
|
990.00
|
968.25
|
974.80 |
| HEROHONDA
M |
577.00
|
581.75
|
569.00
|
575.00 |
| BAJAJ
AUTO |
1,375.00
|
1,375.00
|
1,356.00
|
1,360.35 |
| TATA
MOTORS |
444.00
|
451.90
|
439.55
|
442.85 |
| WIPRO
LTD. |
737.00
|
744.50
|
728.10
|
735.25 |
| TCS
LTD |
1,320.00
|
1,333.90
|
1,313.00
|
1,319.50 |
| ICICI
BANK L |
432.00
|
438.50
|
430.15
|
431.75 |
Last
Update : 6 July, 2005, 16:02PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| INFOSYSTCH
|
2330.00
|
2359.80
|
2318.00
|
2345.65 |
| RELIANCE
|
637.35
|
647.00
|
637.35
|
645.20 |
| SATYAMCOMP
|
500.00
|
507.85
|
499.00
|
501.55 |
| SBIN
|
708.60
|
724.00
|
707.05
|
720.80 |
| TISCO
|
348.00
|
352.95
|
345.00
|
350.20 |
| ONGC
|
982.30
|
988.80
|
968.80
|
975.00 |
| TATAMOTORS
|
443.50
|
451.70
|
439.30
|
443.10 |
| TCS
|
1326.00
|
1332.60
|
1316.15
|
1323.10 |
| ZEETELE
|
165.55
|
173.25
|
165.35
|
167.00 |
| HDFC |
901.00 |
939.80
|
894.00
|
930.65 |
| MTNL
|
124.45
|
131.00
|
124.45
|
130.10 |
| M&M
|
583.00
|
604.00
|
583.00
|
597.05 |
| SAIL
|
49.20
|
50.70
|
49.10
|
50.35 |
| WIPRO
|
745.00
|
748.00
|
728.00
|
735.25 |
| REL
|
659.70
|
659.70
|
630.00
|
648.20 |
| MARUTI
|
464.90
|
466.00
|
457.20
|
460.10 |
| HINDLEVER
|
164.00
|
164.30
|
162.05
|
163.15 |
| ITC
|
1673.00
|
1684.80
|
1671.05
|
1676.30 |
| BHARTI
|
241.00
|
245.50
|
240.10
|
243.80 |
| IPCL
|
177.00
|
178.25
|
176.10
|
177.20 |
| VSNL
|
263.25
|
268.00
|
260.65
|
262.15 |
| LT
|
1160.00
|
1211.00
|
1160.00
|
1205.95 |
| ICICIBANK
|
432.80
|
438.70
|
430.25
|
431.95 |
| HINDALC0
|
1248.90
|
1268.50
|
1230.05
|
1257.00 |
| BHEL
|
872.00
|
895.00
|
865.00
|
892.45 |
| ABB
|
1479.00
|
1499.00
|
1420.00
|
1490.80 |
| ORIENTBANK
|
257.00
|
261.90
|
257.00
|
260.65 |
| RANBAXY
|
1065.00
|
1078.00
|
1065.00
|
1073.65 |
| HINDPETRO
|
311.00
|
314.70
|
305.00
|
313.15 |
| TATAPOWER
|
392.00
|
401.00
|
389.00
|
399.35 |
| HEROHONDA
|
580.00
|
584.00
|
569.00
|
576.75 |
| ACC
|
384.10
|
392.00
|
384.10
|
391.20 |
| PNB
|
385.50
|
392.00
|
385.50
|
390.35 |
| HDFCBANK
|
633.00
|
650.00
|
627.20
|
646.55 |
| TATATEA
|
631.75
|
635.00
|
629.10
|
631.00 |
| GRASIM |
1070.00 |
1070.00
|
1049.00
|
1059.25 |
| HCLTECH
|
387.95
|
389.35
|
380.00
|
384.80 |
| CIPLA
|
322.00
|
323.50
|
318.10
|
320.45 |
| NATIONALUM
|
141.00
|
145.40
|
141.00
|
144.65 |
| GUJAMBCEM
|
60.00
|
61.00
|
59.80
|
60.25 |
| GAIL
|
226.00
|
228.00
|
224.50
|
225.20 |
| DRREDDY
|
776.00
|
793.00
|
776.00
|
788.90 |
| BPCL
|
365.00
|
374.50
|
359.55
|
372.40 |
| BAJAJAUTO
|
1375.00
|
1386.00
|
1352.00
|
1362.35 |
| GLAXO
|
820.05
|
853.00
|
820.00
|
847.40 |
| COLGATE
|
246.75
|
251.70
|
245.55
|
246.30 |
| TATACHEM
|
171.50
|
172.00
|
170.50
|
171.65 |
| SUNPHARMA
|
595.10
|
614.85
|
595.00
|
609.65 |
| SCI
|
143.00
|
144.50
|
142.50
|
144.15 |
| DABUR
|
135.80
|
136.85
|
133.20
|
134.60 |
Last
Update : 6 July, 2005, 16:00PM
| 
