It is by attempting to reach the top in a single leap that so much misery is caused in the world”
With foreign capital inflows continuing unabated and global markets extending more than a helping hand, the local bulls are set to leap ahead. We expect the key indices to start the new week on a positive note. The market has rallied sharply over the past few weeks. Some cooling from higher levels cannot be ruled out. The large caps particularly do not look cheap and only select heavyweights appear to be propping up the main indices. A reshuffling of portfolio could be considered. Lock in some gains in stocks that have had a strong run. Though fresh buying should be largely avoided, any purchases should be done with utmost care. The action has been heating up in the small-cap and mid-cap stocks. But, one should be careful while investing in these stocks, as they tend to be very volatile and lack liquidity. Quarterly results will continue to drive the market in the near term. Select stock specific and sector-centric trend is the order of the day. Short-term traders may find it really tough to make money in this kind of a market. Even long-term investors will have to be smarter in picking up stocks.
Omnitech Solutions IPO opens today and closes on July 19 '07. The price has been fixed at Rs 90-105.
Yet another historic session for the bulls as they enter new region led by the heavy weights like Reliance Industries, BHEL, ICICI Bank and L&T. Markets opened on a strong note with NSE Nifty breaching the 4500mark for the first time, key indices stayed firm for major part of the session, however it lost partial gains as profit booking in the Realty and the Pharma stocks dragged the markets lower. Finally, the 30-share Sensex surged 180 points to close at 15272. NSE-50 Nifty advanced 58 points to close at 4504.
Gail India India's biggest gas distributor has gained by 1.3% to Rs319 after the company declared that it has completed a 575km pipeline that would supply natural gas to the nation's largest gas-fired power plant at Dabhol. The scrip has touched intra-day high of Rs322 and a low of Rs317 and has recorded volumes of over 3,00,000 shares on NSE.
ICICI Bank has advanced by 1.2% to Rs979 after Dubai International Capital LLC yesterday announced that it purchased 2.87% of the company. The scrip has touched intra-day high of Rs991 and a low of Rs975 and has recorded volumes of over 15,00,000 shares on NSE.
Bajaj Auto is trading flat at Rs2194. Reports have stated that Renault SA may partner with Bajaj Auto to make a car that will sell for $3,000. The scrip has touched intra-day high of Rs2239 and a low of Rs2180 and has recorded volumes of over 3,00,000 shares on NSE.
Ranbaxy Labs has edged higher by 0.5% to Rs360. The Company has announced that hey would close its manufacturing facility located at E-2/E-3, MIDC, Jejuri, Pune with effect from July 13, 2007 for being unviable. The scrip has touched intra-day high of Rs362 and a low of Rs358 and has recorded volumes of over shares on NSE.
L&T has surged by over 2.3% to Rs2434 after the company announced that they have secured contract worth Rs8.53bn. The scrip has touched intra-day high of Rs2438 and a low of Rs2400 and has recorded volumes of over 2,00,000 shares on NSE.
Realty stocks took the day off as the index fell by 1.31%. DLF lost 1.6% to Rs601, Parsvnath declined by over 4% to Rs378, Unitech slipped 2% to Rs561 and Akruti fell 2% to Rs497.
Cement stocks recorded concrete gains led by index heavy weight ACC as the scrip surged by 2.6% to Rs1103, Gujarat Ambuja advanced by 2% to Rs128, Mangalam Cement gained 2.3%t o Rs172 and India Cement added 3%6t o Rs226.
Power stocks gained momentum on back of Increase in Government spending for electricity generations. CESC rose over 5% to Rs453, REL gained by 1% to Rs675, Suzlon advanced by 0.6% to Rs1472. However, Tata Power pared its gains as the scrip declined by 1.5% to Rs687.
Metal stocks continued to stay firm on talks of consolidation in the global metal industry and firm metal prices. Sterlite Industries as the scrip surged by over 3.5% to Rs665, Hindustan Zinc spurred by over 8% to Rs798, SAIL rallied 10% to Rs159 and Tata Steel surged by over 3.5% to Rs695 According to reports the world's six-largest steelmaker has been invited by the Indonesian government to participate in the privatization of PT Krakatau Steel.
Results Today:
Blue Dart, Deepak Fertilizers, Dish TV, Dolphin Offshore, Genus Overseas, Geometric Software, Indo Rama Synthetics, Merck, Petronet LNG, PFC, Shanthi Gears, Sonata Software, Tata Coffee, TCS, Zee News and Zensar Tech.
Fund Activity:
FIIs were net buyers of Rs13.24bn (provisional) in the cash segment on Friday. On the other hand, local institutions were net buyers at Rs1.74bn. In the F&O segment, FIIs pumped in Rs3.03bn on the same day.
On Thursday, FIIs poured in Rs7bn in the cash segment. Mutual Funds were net buyers of Rs1.24bn.
Major bulk Deals:
Kotak Mahindra has bought Balasore Alloys; Goldman Sachs has picked up Gayatri Projects; Morgan Stanley has purchased Infotech Enterprises; Fidelity has sold Pfizer; Union Investments, Luxembourg has bought RPG Transmission; Franklin India Fund has purchased Taneja Aerospace and Citigroup Global has bought Zensar Tech.
Insider Trades:
UFLEX Limited: Anshika Investments Private Limited (part of Promoters' group) has purchased from open market 106202 equity shares of the company on 11th and 12th July, 2007.
Karuturi Networks Limited: Mrs. Anitha Karuturi, Director has sold in open market 51413 equity shares of the company on 9th July, 2007.
Lower Circuit:
Sujana Metal, TCI Finance, Nirlon, Tripex Overseas, Biclare, Zenith Infotech
Upper Circuit:
Goldstone Technology, PBA Infrastructure, Bag Film, GVK Power, Ganesh Forgings, Tera Software, IID Forgings, Rama Pulp, Taneja Aerospace and Godawari Power.
Major News & Announcements:
Inflation for the week ended June 30 was 4.27% against expectations of 4.10%
Bharti Airtel adds 1.96mn GSM users in June
House of Pearl unit to start real estate biz
KEC International wins Rs1.3bn order
PVR Board to consider overseas Bond sale proposal on 20th July
Essar Oil to shut refinery for 3 weeks starting 18th July
L&T secures contract worth Rs8.53bn
Ranbaxy closes 'unviable' Pune facility