Few of us get dizzy from doing too many good turns
The bulls have managed many good turns in recent times but appear dizzy for now. Looks like they may have to wait a while for the Sensex to get past 15k mark. Signals from the global markets are a bit weak this morning. Investors may also be cautious ahead of the corporate earnings. Infosys will kick off the season on July 11. The IT major's outlook going ahead given the appreciation in the rupee would be closely tracked. Any negative noises from Infosys and its fellow software firms could set the market back temporarily.
The ongoing consolidation and choppiness could also be because the key indices have rebounded sharply from the lows struck during the February-March crash. Both the Sensex and the Nifty are trading at all-time highs. Some more volatility and brief pain is likely in the near term. Even after the Sensex crosses 15k, there may not be much room to go further in the near term. Having said that, if money keeps pouring in, particularly from FIIs, and interest rates remain stable, bulls would be able to beat the odds.
Wipro is one stock to watch out for as its consumer care arm has acquired Singapore-based Unza. Earlier, Dabur India was to buy the company but dropped the plan. Reports also suggested that Godrej and Emami had thrown their hats in the ring for Unza.
IFCI's Board will meet today to consider the proposal for inviting preliminary bids for the induction of a strategic investor. The troubled state-run term lender will also announce its Audited Financial Results the quarter and year ended June 2007.
Cipla will be in the limelight amid reports that Reliance Lifesciences is contemplating acquiring the pharma major. Nestle India might also attract attention as a financial daily reports that the Swiss foods major is looking at inorganic opportunities in India.
RCOM is likely to gain amid reports of a proposed Rs30bn expansion for its existing GSM business. PTC is another stock to keep an eye on as Blackstone and Goldman Sachs may pick up 49% stake in the finance arm of the power trading firm.
Moser Baer is expected to extend gains as the Government has slapped anti-dumping duty on CD-Rs China, Hong Kong, Singapore and Chinese Taipei. Bajaj Auto could be in action on the back of price hikes and restructuring.
US technology stocks rallied on Thursday, lifted by strength in Apple, Google and other stocks hitting new highs. However, the broader market ended mixed ahead of Friday's widely awaited June jobs report.
The Dow Jones Industrial Average was down 11.46 at 13,565.84, snapping a three-session winning streak. But, the 30-share index ended off its lows for the session. The broader Standard & Poor's 500 index ended flat at 1,525.40. The Nasdaq Composite index rose 11.70 to 2,656.65, a fresh 6-1/2 year high.
On the economic front, investors' focus is on the closely watched June jobs report. Economists surveyed expect 135,000 new jobs and the unemployment rate to hold steady at 4.5%. Earlier, the Institute for Supply Management's services index unexpectedly rose in June, beating forecasts for a modest decline.
The number of initial claims for jobless aid filed last week increased by 2,000, according to the Labor Department.
Treasury prices fell, lifting the yield on the 10-year note to 5.14% from 5.04% late on Tuesday before the US holiday. The dollar rose against the euro and was higher versus the yen. COMEX gold for August delivery lost $4.80 to $650.60 an ounce.
Oil prices eased after the EIA's report on US fuel inventories. US light crude fell 31 cents to $71.10 a barrel on the New York Mercantile Exchange. The front-month contract was quoting 4 cents higher at $71.85 a barrel.
European shares declined after the European Central Bank's president hinted at further interest-rate hikes. The ECB left its key rate on hold at 4%, as expected. The Bank of England too did as market had expected, raising its key rate by a quarter of a percentage point, to 5.75%.
The Pan-European Dow Jones Stoxx 600 index lost 0.6% at 395.16. The German DAX closed down 1.1% at 7,987.13 , the French CAC-40 lost 0.6% at 6,059.53 and the UK's FTSE 100 slipped 0.6% to 6,635.20.
In the emerging markets, the Bovespa in Brazil was up 0.4% at 55,932 while the IPC index in Mexico lost 0.07% at 32,177 and the RTS index in Russia jumped 1.5% to 1973.
Key Asian markets were down this morning. The Nikkei in Tokyo was down 101 points at 18,119 while the Hang Seng in Hong Kong dropped 115 points to 22,137 and the Straits Times in Singapore fell by 7 points to 3544. The Kospi in Seoul was flat at 1845.
Markets registered a flat end to a highly volatile session. The benchmark Sensex gyrated 230 points and NSE Nifty nearly by 70 points. The Mid-Cap and the Small Cap index were under pressure anther other like IT, Pharma and FMCG index also lost ground. Infosys was the major dragger as the scrip dragged the Sensex index by 12 points. However, heavyweights like ICICI Bank, L&T and Tata Steel were the major gainers as it aided vital support to the key indices from slipped in to deep red. Finally, the 30-share Sensex down 18 points to close at 14861 and NSE-50 Nifty was down 5 points to close at 4353.
DLF got listed on the bourses with a premium of Rs43 at Rs568.80 on the Bombay Stock Exchange with a premium of 8%. The scrip ended up 8.5% to Rs570 touching an intra-day high of Rs714 and a low of Rs505 and recorded volumes of over 3,00,00,000 shares on BSE.
BEML dropped by 1% to Rs1233 after the company announced that it has fixed its issue price at Rs1075. The scrip touched intra-day high of Rs1260 and a low of Rs1210 and recorded volumes of over 1,00,000 shares on NSE.
Bajaj Auto slipped by 1.4% to Rs2091. The company announced that they have raised price by Rs500 on each model. The scrip touched intra-day high of Rs2128 and a low of Rs2085 and recorded volumes of over 1,00,000 shares on NSE.
Asian Electronic is locked at 5% upper circuit to Rs957.30 after the company announced that it would split each share into two. The scrip has touched intra-day high of Rs957.30 and a low of Rs876 and has recorded volumes of over 1,00,000 shares on NSE.
TV 18 was flat at Rs907. The company announced that the Board of Directors of the company has approved 1:1 bonus. The scrip touched intra-day high of Rs949 and a low of Rs907 and recorded volumes of over 2,00,000 shares on NSE.
Ashok Leyland gained by 1% to Rs38 after the company announced its June sales at 6510 units (up 2%). The scrip touched intra-day high of Rs38 and a low of Rs37 and recorded volumes of over 29,00,000 shares on NSE.
Indus Fila surged nearly by 6% to Rs221 after the company acquired 51% stake in Indus Garments for Rs93.5mn. The scrip touched intra-day high of Rs245 and a low of Rs210 and recorded volumes of over 18,00,000 shares on NSE.
Technology stocks were under pressure as Indian rupee further strengthens against the US Dollar at Rs40.46 per US Dollar. Index heavy weight Infosys was down by 0.7% to Rs1916, Satyam Computer slipped b 1.6% to Rs464 and Wipro slipped 1% to Rs504. Mphasis, Polaris and i-Flex were the major losers among the Mid-Cap stocks.
Cement stocks were a mixed bag today after being in the limelight. Grasim was up by 0.4% to Rs2748, ACC gained by 0.6% to Rs1028 and Gujarat Ambuja was flat at Rs129. However, Mangalam Cement declined by over 2% to Rs165.
Select Auto stocks ended firm in a volatile market. M&M gained by 2.8% to Rs769, Maruti was up by 1.8% to Rs805, Tata Motors advanced by 1.2% to Rs709 and TVS Motors surged by over 3.2% to Rs62 after the company announced that it expects Motorcycle sales at 1.7mn this year.
Pharma stocks were in poor health. Ranbaxy was down 2% to Rs360, Cipla declined by 1% to Rs216, Wockhardt declined 1.5% to Rs386 and Lupin dropped by 1.5% to Rs722.
Fund Activity:
FIIs were net buyers of Rs1.49bn (provisional) in the cash segment yesterday while the local institutions pumped in money to tune of Rs3.05bn. In the F&O segment, foreign funds were net sellers of Rs6.92bn yesterday.
On Wednesday, FIIs were net buyers of Rs8.25bn in the cash segment. Mutual Funds were net sellers at Rs4.27bn on the same day.
Results Today:
Classic Diamond and IFCI.
Major bulk Deals:
Deutsche Secs has bought Evinix and Tricom India; Merrill Lynch has picked up Jayant Agro and Morgan Stanley has sold Vijaya Shanti.
Insider Trades:
Insider Trades:
UFLEX Limited: A.R. Leasing Pvt. Ltd. (part of the promoters' group) has purchased from open market 26513 equity shares of the company on 27th & 28th June, 2007.
Lower Circuit:
TCI Finance, DS Kulkarni, GV Films, Anant Raj, ION Exchange and Surana Industries.
Upper Circuit:
DMC International, Shree Precoated, Zenotech Labs, Nirlon, Swan Mills, Prime Focus, Goldstone Tech, Agro Tech, Asian Electronic, Evinix, Classic Diamond, Heritage Foods, Genus Overseas and IID Forgings.
Delivery Delight (Rising Price & Rising Delivery):
Andhra Bank, Apollo Tyres, Castrol India, Colgate, Dr Reddys Laboratories, Hero Honda Motors, ICICI Bank, Jain Irrigation, Nalco, SCI, Tata Power, TVS Motor, Union Bank of India, UTI Bank and Voltas.
Abnormal Delivery:
J&K Bank, Bajaj Auto, I-Flex Solutions, Bank of India, Siemens, Bank of Baroda, Wockhardt, Sun Pharmaceuticals, HDFC, Corporation Bank and Indian Hotels.
Major News & Announcements:
HC adjourns decision on KG Gas to July 12 – Reports
L&T to start 3 units for railways, power and ship building
Hero Honda delays Factory start on slowdown in Sales
Maruti plans to expand Manesar plant engine-making capacity
BEML fixes issue price at Rs1075
Bajaj Auto raises price by Rs500 on each model
Indus Fila acquires 51% stake in Indus Garments for Rs93.5mn
Sadbhav Engineering secures Rs328bn contract
Asian electronic to split each share into two
TV 18 Board approves 1:1 bonus
Ashok Leyland June sales at 6510 units (up 2%)