The fish only knows that it lives in the water, after it is already on the river bank. Without our awareness of another world out there, it would never occur to us to change
Suddenly worries evaporated even as dark clouds seem to be looming. Concerns voiced so far seemed to have taken a back seat. With reports of robust advance tax figures, heightened activity in banking counters and bargain hunting in oil and gas stocks the bulls went on a buying spree. Heavyweights like ONGC, RIL and SBI led the gains. Short covering added to the bulls' delight. We continue to advice caution.
We expect a flat open followed by some choppiness. The bulls would hope to retain their position and scale to a new peak. Small-cap and mid-cap shares may remain in focus. Without any fresh triggers available, global markets will guide the indices at least in the early trade.
On the brighter side, ICICI Bank follow on issue was fully subscribed within minutes of the opening. State Bank of India, is expected to raise $400mn from the market. HDFC is expected to raise $420mn. Central Bank of India and UTI Bank also have similar plans. Capital Goods was another sector in the limelight.
SEBI, has passed an order directing that erring brokers cease and desist from indulging in futures & options contracts till further orders.
Asian stocks climbed for a fifth day as declining U.S. bond yields eased concern borrowing costs will rise in the world's largest economy. Japan's Nikkei 225 Stock Average climbed 0.5 percent to 18,245.29. The Taiex index jumped 1.1 percent in Taiwan, where the market was closed for the past two days. BHP Billiton Ltd. and Rio Tinto Group declined with the price of metals and on speculation they may bid for Canada's Alcan Inc.
Among the Indian ADRs, ICICI Bank gained over 5% to $49.69. VSNL added 4% to $22.80. Wipro, HDFC Bank, MTNL and Tata Motors were the other major gainers. Satyam, however, fell 1% to $25.44.
GTL, a network services provider, has entered into a Rs2.50-2.75bn infrastructure leasing agreement with private banking major ICICI Bank and IT company Spanco TeleSystems. The deal permits ICICI Bank to use GTL’s business process outsourcing (BPO) and call centre facilities at Mhape in Navi Mumbai for 25 years.
Petron Engineering and Construction gained 20% hitting a 52-week high after the promoters announced that they entered into an agreement to sell their controlling stake to KazStroy Services plc, UK. The stock has added 54% in a week.
Blue Dart Express is in limelight following reports of an open offer at price which could be substantially high compared with its current market price. Company has denied any such move.
ICRA surged nearly 5% after the company and Vijaya Bank signed a Memorandum of Understanding under which the company will assign ratings to Small Scale Industries (SSIs) and Small and Medium Enterprises (SMEs) that are borrowers of the above bank.
Tripex Overseas was locked at the 5% lower circuit. The company announced that they would set up Pharma SEZ Unit.
The Income-Tax Department on Tuesday conducted search and seizure operations on the Multi Commodity Exchange (MCX) and the offices of its promoters, branches and associates across the country.
Indoco's wholly owned subsidiary La Nova Chem (India) Pvt Ltd will merge with the company, after shareholders recently approved its composite merger and demerger scheme.
Surana Industries is in limelight. The company is reportedly in the final stages of negotiations to secure a long-term lease for a coal mine in Indonesia. The company announced that had raised $25 million through a FCCB issue for the Rs4.73bn Raichur project. These bonds, listed on the Luxembourg stock exchange, will be converted into equity shares at a price of Rs 140 per share. The stock closed a little below Rs120 on Tuesday.
Markets ended on a strong note as bulls came back with vengeance. After opening on a weak note the key indices gradually gained momentum as the session progressed. The Banking and Oil & Gas stocks led the rally, with Auto and Capital God followed suit. The index heavy weight like SBI, Tata Steel, ONGC, ICICI Bank and Reliance Industries lifted the NSE Nifty 4200 level.
Finally, the 30-share Sensex surged 210 points to close at 14290 hitting an intra-day high of 14315.18 and a low of 14058.79. NSE-50 Nifty advanced 67 points to close at 4214 touching an in intra-day high of 4222.40 and a low of 4136.15.
ICRA surged nearly by 5% to Rs903 after the Company and Vijaya Bank signed a Memorandum of Understanding under which the company will assign ratings to Small Scale Industries (SSIs) and Small and Medium Enterprises (SMEs) that are borrowers of the above bank. The scrip touched intra-day high of Rs915 and a low of Rs851 and recorded volumes of over 15,00,000 shares on NSE.
Tripex Overseas locked at 5% lower circuit to Rs27.50. The company announced that they would set up Pharma SEZ Unit. The scrip touched intra-day high of Rs27.50 and a low of Rs25.70 and recorded volumes of over 11,0,000 shares on NSE.
Banking stocks were in the limelight led by gains in the index heavy weight ICICI Bank as the scrip gained by 2.6% to Rs942, SBI was up 4% to Rs1371 and HDFC Bank added 1% to Rs1099. However, Andhra Bank was the major losers among the Mid-Cap stocks.
Auto stocks gained momentum led by fresh buying interest. Tata Motors gained by 2.8% to Rs663, Bajaj Auto advanced by 2% to Rs2121 and M&M added 1% to Rs700.
Securities in ban period:
The derivative contracts in the underlying BRFL, Parsvnath and Nagarjuna Fertilizers have crossed 95% of the market-wide position limit and are currently in the ban period.
Results Today:
ABG Shipyard, Indo Tech Transformers, INOX, Kinetic Motor, Rajesh Exports, Tantia Constructions, Visa Steel and Zicom.
Insider Trades:
Housing Development Finance Corporation Ltd: N M Munjee, Director of the company on 11th & 12th June 2007 has
sold 1000 equity shares of the company.
Ganesh Housing Corporation Ltd: Bhavin Mehta, Head-Business Development of the company on 13th June 2007 from
market has purchased 4000 equity shares of Ganesh Housing Corporation.
Shringar Cinemas Limited: Balkrishna Shroff, Director of the Company from market has purchased 7216 equity shares on 14th June 2007 of Shringar Cinemas.
Lower Circuit:
United Breweries, Country Club, BF Utilities, Dynamic Industries, Rama Pulp and Tripex Overseas.
Upper Circuit:
Deep Inds, Geodesic Info, Prime Focus, UTV Software, Development Credit Bank, Pratibha Industries, Jai Corp, Petron
Engineering, Swan Mills, Surana Industries, Vyapar Industries and Shaw Wallace.
IDelivery Delight (Rising Price & Rising Delivery):
ABB, Ballarpur Industries, Bank of Baroda, Bank of India, Cadila Healthcare, Century Textiles, Colgate, Corporation Bank,
Escorts, Grasim Industries, HDFC Bank, HDFC, ICICI Bank, Indian Hotels, Kotak Bank, McDowell and PNB.
Major Bulk Deals:
Bulk deals were seen in Bihar Tubes, Euro Ceramic, Indo Asian Fuse Gear, JBM Auto, Rana Sugars (Edelweiss sold 0.43mn), RPG Transmission (Goldman Sachs bought 62K )
Abnormal Delivery:
BEL, Indian Overseas Bank, Satyam Computer, Gujarat Alkalies, Sterling Biotech, Andhra Bank, Bharat Earth Movers Ltd, Wipro, Siemens and BILT.
Major News & Announcement:
Gayatri Projects denies reports of getting Rs9bn order from AP Government
Jet Airways to consider rights issue on 26th June
Petron Enginnering promoters to sell stake
Kanoi Paper to mull Rights Issue on 27th June
L&T Eastern Venture gets order worth Rs6.1bn
Lupin Settles litigation with Abbot Labs & Astellas
PSL starts new pipeline Manufacturing facility in Sharjah
Tripex Overseas to set up Pharma SEZ Unit
Ipca Laboratories gets US FDA approval for Hydroxychloroquine sulfate tablets
Tata group forms Financial Service Company
Indian Hotels Q4 profit at Rs1.34bn (up 70%) and revenue (up 45%) at Rs5.39bn