|
The markets started the day with the momentum of yesterday's
strong closing very much intact. Indices opened with a
large positive gap and touched record levels early in
the morning.
After trying to hold on to the levels for half-an-hour,
indices declined fast as selling emerged in the frontline
stocks. After going deep into the red, the indices made
a slow and steady attempt at recovery. The up move took
the markets back in the green by noon.
The next decline came soon after as buying support failed
to emerge in early afternoon trades. The indices steadily
lost ground for the rest of the day and closed near the
day's lows.
ONGC, which gained close to 5 per cent yesterday, lost
over one-and-a-half per cent. Among the technology stocks,
Satyam and Infosys were the major losers.
The sensex closed at 7811, a loss of 49 points, and the
Nifty at 2388, a loss of 15 points. Nifty August futures
closed the day at a discount of 4 points to the spot index.
VSNL, Tata Tea and ACC were among the major gainers among
Nifty stocks while Glaxo, HLL and HCL Technologies were
the major losers.
The US markets recovered from the previous day's fall,
helped by strong results from HP and the sharp decline
in crude prices. Gains on the frontline indices were held
in check by weakness in oil stocks.
The Dow and NASDAQ closed the day with gains of one third
of a per cent while S&P 500 closed with marginal gains.
Crude oil futures for September delivery tumbled close
to 5 per cent yesterday. Traders rushed to sell after
release of data showing a decline in US crude consumption.
The commodity closed at $63.25 on the NYMEX yesterday,
down $2.83 from the previous close. Crude was trading
with marginal gains in early European trades today.
Indian ADR's recovered from the previous day's fall in
line with the broad market trend yesterday. VSNL recovered
most of the losses of Tuesday and closed over 3 per cent
higher. Tata Motors and Dr. Reddy's closed with gains
of over a per cent each.
Among the banking ADR's, ICICI Bank closed lower while
HDFC Bank gained half-a-per cent. MTNL also gained half-a-per
cent. Among the technology ADR's, Infosys gained a per
cent and Satyam gained over half-a- per cent. Wipro closed
marginally higher.
Media reports quoting sources at ONGC indicates that the
company may come out with an open offer for its own shares
after the buy-back of shares currently held by Indian
Oil. Indian Oil now holds close to 10 per cent of ONGC
and the oil ministry had proposed the settling of the
cross-holdings among PSU oil companies through buy-backs.
If allowed to go through, the untangling of cross-holdings
would be a boon for Indian Oil, which is reeling under
losses. The cash flow would help the company to finance
its capital expenditure programmes, in the absence of
cash from regular operations. Indian Oil closed close
to a per cent higher.
The excise department has demanded Rs494 crore from Reliance
Industries with interest and penalty as differential duty
on petroleum products sold to PSU oil marketing companies
for the period 2000 to early 2005. The department contends
that excise duty was collected on sales by Reliance at
the final consumer price and not on the import parity
transfer price.
Consumer prices are lower than the transfer price because
of subsidies imposed by the government. Reliance had reportedly
told the oil marketing companies that any additional excise
claims should be borne by the latter. The stock lost close
to a per cent.
Domestic steel companies are expected to raise spot prices
by up to 7 per cent in September. International steel
prices have recovered this month as the excess inventories
have eased on continuing growth in demand.
The price hike would benefit smaller steel companies,
which sell a large portion of their output in the spot
market unlike majors like Tata Steel, which sells 80 per
cent of output through long-term contracts. Most steel
stocks closed lower. Tata Steel and SAIL closed with losses
of well over a per cent.
Engineering major Larsen & Toubro is planning to acquire
engineering companies in the US and Europe as part of
its efforts to build its competency in the deep-water
oil and gas exploration business. The company expects
deep-water exploration to grow rapidly in the country
and has set aside $100 million for the acquisitions.
L&T is also planning to set up an electrical engineering
unit in the Middle East to cater to the requirements of
the oil and gas industry. The new unit would be a joint
venture and the company is looking for a domestic partner.
This will be the second overseas manufacturing unit of
L&T after its recent foray into China. The stock closed
marginally lower.
Tata Motors has announced that its US subsidiary Tata
Technologies, Inc would buy the UK-based INTAC. The UK
company is a leading provider of engineering and design
services in Europe and the US. The acquisition would cost
over Rs420 crore.
Tata Motors said the acquisition would strengthen the
presence of Tata Technologies in the North American and
European markets. It would also help the company to offer
a wider range of services. The stock closed with marginal
losses.
The plans of Reliance Energy to set up a mega-power plant
in UP has reportedly run into tax troubles. The company
was planning to set up the plant within a special economic
zone (SEZ), which would enable it to claim multiple tax
benefits. The government is not very keen on the proposal,
as most of the electricity produced by the plant would
be sold outside the SEZ. The stock closed over half-a-per
cent.
IDFC, the infrastructure finance company listed on the
exchanges recently, announced its quarterly results. Profits
for the quarter more than doubled to over Rs108 crore
as compared to the same quarter of previous year. Total
income was higher by over 80 per cent.
Mid-Cap Action
Mid-caps
soared in morning trades and the mid-cap index was trading
with gains of close to a per cent within minutes of opening.
Mid-caps traced the weakness in frontline stocks and declined
rapidly. After a brief attempt at recovery around noon,
the CNX Mid-Cap index closed the day at 3641, a loss of
18 points.
Pharma
companies Lupin and Torrent Pharma are among the six bidders
for a 47-per cent stake in Jelfa Pharmaceutical, a state-owned
Polish drug company. The Polish government is selling
its stake as a part of its privatisation programme. The
company had total revenues of over Rs300 crore last year.
Lupin
lost well over a per cent while Torrent Pharma declined
over 4 per cent.
Orchid
Chemicals is planning to launch two more antibiotic drugs
in the US markets and has made the applications for approval
from US FDA. The planned launches would take the number
of drugs marketed by Orchid in the US to five and the
company is expecting revenues of $30 million per annum
from the US market.
Orchid
is also planning to raise up to $100 million through a
GDR issue, details of which are being worked out. The
proceeds from the issue would be used to retire high cost
debt and also to expand the company's generic drugs business.
The stock closed well over a per cent higher.
Hindustan
Construction has won an order to build a road in the state
of Jammu & Kashmir. The order is reportedly worth
over Rs200 crore. The stock closed with gains of 5 per
cent.
Buying
continued in select construction and infrastructure stocks
today as well. Gammon India, IVRCL. JP Hydro and Noida
Toll Bridge were among the major gainers.
Stocks
of print media companies, Deccan Chronicle and Mid-Day,
attracted large buying interest. There is market speculation
about large FII buying in print media stocks after the
RBI allowed fresh FII buying. Deccan Chronicle closed
almost 18 per cent higher while Mid-Day gained over 16
per cent.
Television
media stocks Television Eighteen and TV Today also witnessed
buying interest. TV Today closed over 3 per cent higher
while Television Eighteen gained over a per cent.
Media
Video has been selected by a US company to develop entertainment
and gaming software for mobile phones. The company expects
revenues from the tie-up to be above Rs20-crore per annum.
The stock could not sustain early gains and closed a per
cent higher.
Pantaloon
Retail said its board would meet shortly to consider various
options to raise resources to fund the company's expansion
plans. The stock closed with gains of over 5 per cent.
There
were only buyers in the counter of Geojit Financial, a
leading retail broking outfit in southern parts of the
country. The stock was locked in the 20 per cent upper
circuit today after gaining over 10 per cent in the last
2 days.
IndusInd
Bank lost over 3 per cent after the bank denied media
reports that a large domestic corporate house would pick
up a strategic stake in the company.
 United
Western Bank, Mysore Cements and SAB TV were among the
best performing stocks among mid-caps.
IFB
Industries, Nelco and Uniphos Enterprises 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
|
7,811.33
|
-48.20
|
| NIFTY
|
2,388.45
|
-14.70
|
Last
Update : 18 August, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| ASSOCIATED
CEMENT COMPANIES LT |
456.00
|
474.00
|
456.00
|
468.45 |
| TATA
POWER |
428.00
|
435.00
|
426.70
|
431.10 |
| HDFC
BANK LT |
661.00
|
669.90
|
657.00
|
663.70 |
| TCS
LTD |
1,305.00
|
1,324.00
|
1,305.00
|
1,313.70 |
| WIPRO
LTD. |
725.00
|
731.00
|
721.25
|
728.95 |
| GRASIM
INDUSTRIES LTD. |
1,293.00
|
1,317.90
|
1,292.05
|
1,307.05 |
| ICICI
BANK L |
509.00
|
511.00
|
501.15
|
506.25 |
| NTPC
LTD |
97.00
|
98.20
|
96.50
|
97.35 |
| HINDUSTAN
LEVER LTD. |
173.50
|
173.50
|
168.10
|
168.60 |
| BAJAJ
AUTO |
1,455.00
|
1,478.50
|
1,412.15
|
1,422.00 |
| HINDALCO
IN |
1,442.50
|
1,460.00
|
1,410.20
|
1,416.20 |
| HOUSING
DEVELOPMENT FINANCE CO |
940.00
|
942.00
|
921.10
|
924.25 |
| ONG
CORP LTD |
1,008.80
|
1,017.00
|
982.00
|
987.90 |
| SATYAM
COMP |
525.00
|
527.20
|
510.10
|
513.50 |
| RANBAXY
LABORATORIES LTD. |
534.70
|
539.35
|
514.00
|
522.05 |
| TATA
IRON AND STEEL CO. LTD. |
420.00
|
420.00
|
406.00
|
408.55 |
| I
T C LTD |
1,708.00
|
1,724.00
|
1,693.00
|
1,694.80 |
| BHEL
|
1,103.00
|
1,116.00
|
1,086.10
|
1,093.10 |
| RELIANCE
ENR |
611.00
|
615.80
|
598.00
|
600.70 |
| RELIANCE
|
720.00
|
726.50
|
705.25
|
708.70 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,324.00
|
2,324.00
|
2,289.00
|
2,297.15 |
| BHARTI
TELE |
322.00
|
322.50
|
315.00
|
317.90 |
| STATE
BANK OF INDIA |
820.50 |
828.00
|
808.00
|
810.85 |
| HEROHONDA
M |
680.00
|
685.00
|
669.00
|
674.00 |
| CIPLA
LTD. |
351.95
|
352.65
|
330.05
|
348.95 |
| MARUTI
UDYOG |
482.00
|
485.00
|
471.00
|
474.10 |
| DR.REDDY'S
LABORATORIES LTD. |
833.00
|
843.90
|
820.00
|
825.00 |
| LARSEN
& TOUBRO LTD. |
1,387.00
|
1,399.00
|
1,310.00
|
1,315.05 |
Last
Update : 18 August, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
720.00
|
744.00
|
705.25
|
708.35 |
| VSNL
|
403.00
|
415.35
|
397.65
|
411.80 |
| TISCO |
414.50 |
416.90
|
406.90
|
408.85 |
| SBIN
|
820.00
|
828.00
|
808.55
|
810.55 |
| INFOSYSTCH
|
2318.00
|
2320.00
|
2288.85
|
2298.65 |
| SATYAMCOMP
|
524.00
|
527.55
|
510.10
|
513.40 |
| TCS
|
1307.00
|
1325.00
|
1305.30
|
1313.70 |
| TATAMOTORS
|
498.00
|
506.00
|
490.00
|
492.95 |
| ONGC
|
1005.00
|
1015.70
|
982.55
|
987.55 |
| SAIL
|
65.50
|
66.20
|
63.65
|
64.55 |
| RANBAXY
|
530.00
|
539.75
|
515.00
|
521.35 |
| ACC
|
460.00
|
475.50
|
457.40
|
469.20 |
| ZEETELE
|
170.80
|
177.90
|
170.10
|
171.30 |
| ITC
|
1715.00
|
1724.80
|
1691.00
|
1694.80 |
| IPCL
|
191.00
|
193.85
|
187.00
|
187.95 |
| M&M
|
694.90
|
741.90
|
693.00
|
699.55 |
| BHARTI
|
322.80
|
324.25
|
315.50
|
318.90 |
| HINDLEVER
|
172.35
|
173.90
|
168.25
|
168.70 |
| WIPRO
|
726.00
|
731.00
|
721.25
|
728.95 |
| TATAPOWER
|
428.00
|
435.00
|
426.15
|
430.70 |
| LT
|
1332.00
|
1379.90
|
1310.00
|
1315.35 |
| MARUTI
|
477.10
|
488.00
|
472.00
|
474.60 |
| PNB |
414.00 |
490.00
|
413.00
|
414.20 |
| REL
|
609.00
|
615.80
|
598.00
|
600.70 |
| ICICIBANK
|
509.00
|
512.00
|
502.00
|
507.60 |
| GUJAMBCEM
|
65.45
|
66.10
|
64.35
|
65.20 |
| BHEL
|
1107.90 |
1116.00 |
1086.00
|
1094.90 |
| TATATEA
|
830.00
|
860.00
|
826.00
|
834.80 |
| GAIL
|
240.00
|
276.00
|
237.00
|
237.90 |
| GRASIM
|
1280.00
|
1320.00
|
1280.00
|
1305.05 |
| CIPLA
|
348.00
|
353.40
|
347.00
|
349.55 |
| HINDALC0
|
1450.00
|
1459.40
|
1410.00
|
1414.75 |
| BAJAJAUTO
|
1455.00
|
1479.95
|
1416.60
|
1421.75 |
| HINDPETRO
|
301.00
|
304.00
|
298.00
|
299.35 |
| DRREDDY
|
834.00
|
842.00
|
823.00
|
825.30 |
| HEROHONDA
|
679.00
|
685.90
|
669.10
|
681.20 |
| HDFCBANK
|
668.10
|
668.10
|
656.20
|
663.00 |
| HDFC
|
942.00
|
942.00
|
921.50
|
927.60 |
| TATACHEM
|
193.00
|
194.50
|
187.10
|
188.10 |
| SCI |
152.50 |
154.40
|
151.00
|
153.65 |
| MTNL
|
131.75
|
129.20
|
129.80 |
129.50
|
| NATIONALUM
|
171.70
|
173.85
|
168.00
|
169.15 |
| COLGATE
|
267.00
|
267.00
|
251.00
|
252.85 |
| HCLTECH
|
453.50
|
455.95
|
436.70
|
439.90 |
| GLAXO |
890.00 |
905.95
|
860.00
|
876.15 |
| ORIENTBANK
|
270.90
|
272.00
|
265.55
|
266.50 |
| BPCL
|
362.90
|
366.00
|
355.10
|
357.35 |
| DABUR
|
159.80
|
159.80
|
150.05
|
153.45 |
| ABB
|
1560.00
|
1590.00
|
1553.00
|
1560.50 |
| SUNPHARMA
|
638.00
|
639.70
|
612.00
|
616.50 |
Last
Update : 18 August, 2005, 16:00PM
|
