|
After opening with gains, the indices gave a glimpse of
what was in store for the rest of the day by dipping sharply
for a brief while before recovering. But not many would
have been ready for the extent of the fall even after
three days of moderate correction.
The first hour was relatively uneventful as the indices
tried to hold ground around yesterday's closing levels.
Then the sell-off started and the indices crumbled under
their own weight, built up over the last few weeks.
Though the initial trigger was the negative FII figure
for last Friday, the decline gained momentum as traders
rushed to cover their long positions ahead of Thursday's
derivatives expiry. Weakness in heavyweights like ONGC,
Reliance Industries, Tata Steel, ICICI Bank, SBI and SAIL
led to one of the worst days in the last few months.
Sensex closed at 7616, a loss of 134 points, and the Nifty
at 2326, a loss of 42 points. Nifty August futures closed
the day at a premium of two points to the spot index.
ITC and Tata Motors were the only stocks on the Nifty,
which managed to close with marginal gains while VSNL,
Ranbaxy and Bajaj Auto were the major losers.
US markets closed with marginal gains yesterday as higher
crude prices pared early gains. The Dow and S&P 500
closed with gains of around one-tenth of a per cent each
while NASDAQ closed quarter-of-a-per cent higher.
September contracts for crude expired on the NYMEX yesterday
at $65.45, higher by 10 cents on worries of supply disruptions
in more oil producing countries. October futures were
trading higher in early European trades today.
Indian ADR's generally had a weak day yesterday in a flat
market. Telecom stocks VSNL and MTNL were among the major
losers. VSNL lost 3 per cent while MTNL closed 2 per cent
lower. Tata Motors lost 2 per cent. Banking ADR's, ICICI
Bank and HDFC Bank, closed with marginal gains
Among the technology ADR's, Satyam gained over a per cent
while Infosys and Wipro closed lower. Dr. Reddy's closed
with marginal gains.
ONGC-Mittal combine may consider a higher revised bid
for Petro Kazakhstan, if allowed to do so. The combine
was beaten by CNPC of China, which has bid $4.18 billion
for the oil producer.
According to media reports, ONGC-Mittal was in the process
of submitting a higher revised bid when the announcement
came in favour of CNPC. ONGC lost over 2 per cent in today's
trade.
Pharma major Ranbaxy is reportedly in negotiations to
acquire a pharmaceutical research company based in Germany.
The stock closed over 5 per cent lower.
Bharti TeleVentures is planning to invest $1 billion in
the current financial year to expand network capacity.
After the expansion the company would cover 5,000 towns
across the country as against 2,800 at present.
Bharti has also signed a three-year contract with telecom
equipment major Nokia for expanding its network. Under
the agreement, Nokia would expand its network in the states
of Maharashtra, Gujarat, Bihar and Orissa. The deal is
worth $125 million.
Unlike other telecom companies, Bharti has outsourced
most of the network installation and maintenance to companies
like Nokia and Ericsson. This has helped the company to
expand its network at a fast pace and focus more on sales
and marketing. The stock lost close to a per cent.
Engineering major L&T is planning to increase its
overseas revenues to $1.5 billion from the current $500
million by the year 2010. he company is focussing on the
Middle East to expand its overseas businesses.
L&T would open three new subsidiaries in Qatar, Kuwait
and the UAE within this year to add to the existing subsidiaries
in Oman and Abu Dhabi. The stock lost over 3 per cent
today.
Oriental Bank of Commerce, Bank of Baroda and Bank of
Maharashtra have teamed up to start banking operations
in Malaysia with an initial investment of Rs350 crore.
OBC will hold a 30 per cent stake in the JV. OBC is planning
to open 20 more branches this year within the country
to take its total business to over Rs1 lakh crore.
HCL Technologies has reported a drop in consolidated profits
for the year ended June 05. Profits were lower by close
to 10 per cent even as revenues rose nearly 15 per cent.
The company follows a July - June financial year. The
stock closed with losses of over 2 per cent.
HCL Technologies is quite bullish on future growth and
expects revenues and profits to rise between 30 and 40
per cent annually till 2008. The company also expects
to have at least ten $100 million per year clients by
then. HCL currently has only one client with billings
of over $100 million.
HDFC Bank has ruled out any acquisition of smaller banks
in the near future. The bank said it would prefer to grow
organically and is planning to open branches in Singapore
and Hong Kong apart from strategic tie-ups with banks
in UK and the US.
Indian Oil said its total under recoveries, before sharing
with other companies, could be as high as Rs20,000 crore
for the current year if the company is not allowed to
raise retail prices. The company had reported a loss during
the first quarter and crude prices have further firmed
up in the current quarter. The government is expected
to announce a hike in retail fuel prices soon.
Reliance Energy has approached GAIL for transportation
of natural gas from coastal Andhra Pradesh to UP where
Reliance is planning a mega thermal station. Reliance
Energy will be sourcing natural gas from the KG basin
fields of Reliance Industries. The stock closed over 2
per cent lower.
Mid-Cap Action
The
day was more painful for the mid-caps as their fall was
worse than the frontline stocks. By late afternoon, the
mid-cap index was trading with losses of over 2 per cent.
The CNX Mid-Cap index recovered marginally and closed
the day at 3552, a loss of 72 points or close to 2 per
cent.
Mid-cap
pharma company Ind-Swift Limited surged over 8 per cent
in intra-day trades on reports that the company has received
the approval from Drug Controller General for its newly
developed anti-diarrhoeal and anti-bacterial drug. The
stock closed with gains of close to 6 per cent.
Stocks
of retailing companies Pantaloon Retail and Trent saw
an intra-day surge early in the afternoon. Pantaloon rallied
over 8 per cent and Trent was trading higher by over 4
per cent. The stocks could not maintain the levels and
closed the day with gains of around a per cent each.
The
board of Federal Bank has approved a GDR issue to raise
additional resources. The bank would issue up to two-crore
equity shares subject to shareholder approval.
The
board of software company Financial Technologies has also
approved an issue of ADR's or GDR's for raising up to
$100 million.
Force
Motors, formerly Bajaj Tempo, has developed a prototype
of a 40- tonne commercial vehicle in association with
Man of Germany. The company is developing a full range
of trucks with capacities between 16 tonne and 50 tonne,
which will be launched shortly.
Indian
Overseas Bank has tied up with Franklin Templeton mutual
fund to distribute the latter's products. The bank expects
to sell third-party financial products worth Rs600 crore
through its branches in the current year.
Indian
Overseas Bank is also planning to raise Rs200 crore by
issuing bonds to shore up tier II capital.
Corporation
Bank has signed an agreement with domestic brokerage IL&FS
Investmart under which the latter would offer brokerage
services to the bank's customers.
Spanco
Telesystems is planning to raise up to Rs120 crore to
finance its expansion programme. The board has approved
a preferential issue of equity shares to Reliance Capital
at Rs90 per share.
Dolphin
Offshore, an offshore exploration services provider, has
agreed to lease a vessel from South East Asia Marine for
2 years, extendable by another 2 years.
Dishman
Pharma gained over 10 per cent in morning trades after
the company announced that it's FCCB's have started trading
on the Singapore stock exchange from yesterday. The stock
closed with gains of close to 7 per cent.
Andhra
Cements surged 20per cent on the BSE on reports that the
planned 15 per cent stake sale is close to finalisation.
India
Foils was locked in the 20 per cent circuit in early trades
on yesterday's reports that Alcoa of US is planning to
buy out the existing promoters, Vedanta group. The stock
cooled off from its morning highs after the company denied
the reports and closed with gains of over 13 per cent.
Biocon
and US-based Nobex Corp has announced a research tie up
to develop an oral dug for treatment of cardiovascular
diseases.
 Ucal
Fuel, Cimco Birla and MRF were among the best performing
stocks among mid-caps.
Oil
Country Tubular, Flex Engineering and Crest Animation
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
|
7,615.99
|
-134.61
|
| NIFTY
|
2,326.10
|
-
41.75 |
Last
Update : 23 August, 2005, 16:15 PM
Market
Counters
Figures in Rupees
BSE
30
| Scrip
Name |
Open |
High |
Low |
Last
Price |
| I
T C LTD |
1,699.00
|
1,706.00
|
1,685.20
|
1,691.00 |
| TATA
MOTORS |
477.80
|
484.00
|
474.20
|
477.80 |
| RANBAXY
LABORATORIES LTD. |
545.00
|
547.90
|
510.00
|
514.10 |
| BAJAJ
AUTO |
1,381.00
|
1,418.50
|
1,330.05
|
1,352.75 |
| GUJARAT
AMBUJA CEMENTS LTD. |
66.95
|
67.00
|
63.80
|
64.15 |
| LARSEN
& TOUBRO LTD. |
1,330.00
|
1,335.00
|
1,280.00
|
1,283.60 |
| CIPLA
LTD. |
359.00
|
360.00
|
342.00
|
346.45 |
| ICICI
BANK L |
493.00
|
495.40
|
476.15
|
478.80 |
| SATYAM
COMP |
515.00
|
516.00
|
497.10
|
499.60 |
| RELIANCE
ENR |
588.80
|
588.80
|
565.00
|
567.35 |
| ONG
CORP LTD |
998.90
|
998.90
|
962.10
|
967.25 |
| TATA
IRON AND STEEL CO. LTD. |
396.80
|
397.00
|
382.30
|
383.65 |
| HDFC
BANK LT |
665.00
|
665.00
|
645.00
|
646.95 |
| RELIANCE
|
703.00
|
706.00
|
683.20
|
685.25 |
| WIPRO
LTD. |
366.00
|
369.95
|
355.25
|
358.25 |
| TATA
POWER |
434.00
|
435.00
|
422.00
|
424.15 |
| BHEL
|
1,065.90
|
1,074.00
|
1,026.05
|
1,035.05 |
| HINDALCO
IN |
1,403.00
|
1,407.90
|
1,365.00
|
1,374.50 |
| MARUTI
UDYOG |
478.00
|
479.50
|
467.00
|
469.75 |
| STATE
BANK OF INDIA |
794.90
|
794.90
|
776.10
|
779.10 |
| DR.REDDY'S
LABORATORIES LTD. |
828.05
|
828.05
|
808.05
|
813.45 |
| INFOSYS
TECHNOLOGIES LTD.-ORDI |
2,320.00
|
2,324.70
|
2,283.00
|
2,286.25 |
Last
Update : 23 August, 2005, 16:05PM
S&P
CNX Nifty
| Symbol |
Open |
High |
Low |
Last
Price |
| RELIANCE
|
705.00
|
706.50
|
683.05
|
685.15 |
| INFOSYSTCH
|
2310.00
|
2325.00
|
2282.45
|
2285.20 |
| SATYAMCOMP
|
514.80
|
515.90
|
497.00
|
499.55 |
| VSNL
|
392.00
|
392.00
|
365.65
|
369.30 |
| SBIN |
792.95 |
807.00
|
776.10
|
778.25 |
| TISCO
|
400.00
|
400.00
|
382.25
|
383.35 |
| ONGC |
994.00 |
1002.00
|
962.00
|
966.05 |
| TCS
|
1327.00
|
1330.65
|
1313.00
|
1316.05 |
| RANBAXY
|
544.40
|
545.00
|
510.00
|
514.55 |
| SAIL
|
64.00
|
64.45
|
60.30
|
61.25 |
| TATAMOTORS
|
477.50
|
484.80
|
474.15
|
477.85 |
| HINDLEVER
|
167.00
|
167.60
|
164.20
|
164.90 |
| WIPRO
|
367.00
|
369.00
|
352.75
|
356.70 |
| M&M
|
710.00
|
710.00
|
680.00
|
684.85 |
| HDFC
|
914.00
|
923.00
|
902.00
|
909.25 |
| REL
|
605.00
|
605.00
|
565.05
|
568.05 |
| HCLTECH
|
449.00
|
497.65
|
434.10
|
438.35 |
| ITC
|
1728.50
|
1728.50
|
1690.00
|
1693.50 |
| MARUTI
|
476.60
|
478.95
|
465.55
|
469.35 |
| ACC
|
466.00
|
468.80
|
460.00
|
465.30 |
| PNB |
405.00 |
407.00
|
396.05
|
397.75 |
| LT
|
1333.00
|
1337.85
|
1270.10
|
1277.15 |
| BHARTI
|
310.00
|
310.05
|
301.20
|
303.55 |
| BPCL
|
361.90
|
363.00
|
359.15
|
360.30 |
| TATAPOWER
|
434.00
|
436.00
|
422.00
|
424.80 |
| ZEETELE
|
172.50
|
173.40
|
166.10
|
167.15 |
| HDFCBANK
|
650.00
|
663.90
|
629.90
|
648.60 |
| IPCL
|
185.95
|
186.45
|
182.10
|
182.60 |
| ICICIBANK
|
496.85
|
496.85
|
477.00
|
480.45 |
| GUJAMBCEM
|
66.00
|
66.50
|
64.00
|
64.20 |
| BHEL
|
1055.50
|
1060.00
|
1029.00
|
1034.90 |
| HEROHONDA
|
685.00
|
697.00
|
675.00
|
681.45 |
| MTNL |
128.40 |
128.40
|
124.50
|
125.25 |
| GAIL |
235.50 |
235.90
|
228.70
|
230.60 |
| BAJAJAUTO
|
1419.00
|
1420.45
|
1326.55
|
1344.40 |
| TATACHEM
|
186.90
|
187.40
|
182.50
|
184.10 |
| ORIENTBANK
|
251.10
|
262.40
|
251.10
|
256.15 |
| CIPLA
|
357.00
|
359.00
|
342.00
|
346.15 |
| GRASIM
|
1318.00
|
1328.45
|
1285.00
|
1296.65 |
| HINDPETRO
|
296.00
|
298.50
|
292.60
|
293.85 |
| SCI
|
157.00
|
157.95
|
153.00
|
153.70 |
| HINDALC0
|
1395.00
|
1409.00
|
1365.00
|
1372.60 |
| SUNPHARMA
|
612.10
|
617.00
|
600.00
|
604.45 |
| NATIONALUM
|
171.50
|
172.00
|
164.10
|
166.10 |
| TATATEA
|
818.00
|
818.00
|
798.05
|
800.25 |
| COLGATE
|
240.00
|
260.50
|
240.00
|
258.20 |
| GLAXO
|
875.10
|
884.80
|
875.00
|
877.00 |
| DRREDDY
|
821.75
|
834.00
|
806.00
|
813.35 |
| DABUR
|
146.25
|
151.40
|
140.15
|
144.55 |
| ABB
|
1530.00
|
1545.00
|
1476.00
|
1495.65 |
Last
Update : 23 August, 2005, 16:00PM
|
