There are two ways to slide easily through life; to believe everything or to doubt everything. Both ways save us from thinking.
The bulls, like many of their counterparts globally, managed to overcome recent misery. The Sensex cracked a double-ton with broad-based rally. Small-cap and mid-cap shares joined the party. Market breadth was positive and turnover was better as well. Things are looking up this morning, with a rally across global markets. Among the immediate concerns, is the selling by FIIs and higher crude oil prices. Though the world equity markets have recovered in the last two days, the fear of further hike in interest rates will continue to weigh on the sentiment.
Meanwhile, the Bank of Japan (BOJ) today kept interest rates unchanged for a fifth consecutive meeting as it awaits more evidence on the economy's strength after consumer prices fell for a third month. Governor Toshihiko Fukui and his colleagues held the key overnight lending rate at 0.5%, the BOJ said. The decision was unanimous and widely in line with market expectations.
Some high profile and self-made investment gurus are warning of a bubble across all the asset classes, including emerging markets like India. Whether the bubble bursts or not only time will tell. But, it pays to be on guard for any unforeseen events that could have a ripple effect across the global markets. Today, we expect a firm opening on the back of the global strength. As usual, the profit booking at higher levels cannot be ruled out.
ANG Auto has approved the plan to set up a wholly owned subsidiary in Hong Kong / Singapore. Hind Rectifiers has announced a dividend of 100% and has also proposed a stock split from Rs10 per share to Rs2. Container Corporation of India has recommended a Final Dividend @ 220% (inclusive of Interim Dividend @ 110% already paid) for the financial year 2006-07. Elecon Engineering's Board will meet today consider and approve a proposal for declaration of bonus shares. Nicholas Piramal could gain amid reports that it may hive off its R&D business and sell stake to private equity players.
US stocks rallied on Thursday for the second session in a row, spurred by a benign inflation report and stability in the bond market. Energy shares rallied to a record on the back of a surge in crude oil prices.
Exxon Mobil, GM and Intel led the Dow Jones Industrial Average to its best two-day jump since July after oil climbed to a nine-month high. AT&T sent telecom shares to the second-biggest increase in the Standard & Poor's 500 Index on prospects that it will boost the number of wireless subscribers.
The S&P 500 Index added 7.3 points, or 0.5%, to 1522.97. in New York. The Dow increased 71.38 points, or 0.5%, to 13,553.73. The Nasdaq Composite Index advanced 17.10 points, or 0.7%, to 2599.41.
US light crude oil for July delivery climbed $1.39 to settle at $67.65 a barrel on the New York Mercantile Exchange. Gold prices added $3.20 to settle at $655.90 an ounce. Treasury prices held steady following the tame PPI reading, moving slightly lower in afternoon trade, putting the yield on the benchmark 10-year note at 5.22%, up slightly from late on Wednesday. In currency trading, the dollar hit a four-and-a-half-year high against the yen and edged higher versus the euro.
European shares registered the biggest one-day advance since mid-March. The pan-European Dow Jones Stoxx 600 index climbed 1.6% to 394.29. The UK's FTSE 100 rose 1.4% to 6,649.90, while the German DAX Xetra 30 rose 2.2% to 7,849.16 and the French CAC-40 advanced 1.9% to 6,047.23.
In the emerging markets, the Ibovespa in Brazil rose 1.4% to 53,712 while the IPC index in Mexico advanced 0.7% to 32,114 and the RTS index in Russia surged 3.5% to 1870.
Asian stocks rose for a second day, led by BHP Billiton and Sumitomo Metal Mining, after prices of copper, nickel and crude oil climbed.
The Morgan Stanley Capital International Asia-Pacific Index advanced 0.4% to 151.25 as of 10:42 a.m. in Tokyo, heading for a 0.5% gain this week. Indexes across the region rose, except in China.
In Japan, the Nikkei 225 Stock Average added 0.6% to 17,944.65, while the broader Topix index climbed 0.5%. Canon led exporters higher after the yen fell to the lowest in more than four years against the dollar, boosting the value of their US sales.
An index of six metals traded on the London Metal Exchange (LME) gained 1.9% yesterday. Copper prices added 2.2% while nickel surged 4.9%.
Bulls came back strongly as firm cues from International markets lifted the key indices at open. Further markets gained momentum as buying in the frontline stocks like SBI, Infosys, Reliance Industries, ABB, ACC, L&T and BHEL. The BSE Metal and the Capital Good index led the way. Even the Mid-Cap and the small cap indexes gained over 1.5% each. Finally, the 30-share Sensex surged 200 points to close at 14203. NSE-50 Nifty added 56 points to close at 4170.
ICICI Bank edged lower by 0.8% to Rs905. The company announced that they would raise Rs87.5bn selling shares and to reserve 5% stock for existing shareholders. The scrip touched intra-day high of Rs925 and a low of Rs901 and recorded volumes of over 9,00,000 shares on NSE.
Lupin advanced by 1.3% to Rs682 after the company announced that the US FDA has granted Final approval for the Company's Abbreviated New Drug Application (ANDA) for Trandolapril Tablets. The scrip touched intra-day high of Rs687 and a low of Rs678 and recorded volumes of over 1,00,000 shares on NSE.
ICRA rallied by over 13% to Rs907 after the company said it has signed MoU with Corporation Bank 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 Rs922 and a low of Rs806 and recorded volumes of over 26,00,000 shares on NSE.
GBN advanced by 2.5% to Rs908 after the company announced that they would launch 24 hours Marathi Language News & Current Affairs Channel. The scrip touched intra-day high of Rs914 and a low of Rs890 and recorded volumes of over 1,00,000 shares on NSE.
OCL
Metal stock shinned brightly led by gains in the index heavy weight Tata Steel, the scrip was up by over 3% to Rs615, SAIL spurred by over 3.5% to Rs133, Hindalco gained by 2.2% to Rs164 and Sterlite Industries added 1% to Rs540.
Technology stocks also were on the move. Frontline stock Wipro was up by 0.4% to Rs532, Infosys gained by 1.5% to Rs2019 and Satyam Computer added 1% to Rs491. I-Flex surged by 5% to Rs2486 and Rolta added 1% to Rs422.
Cement stocks continued to trade firmly. ACC advanced by 2.7% to Rs820, Grasim surged by 2.8% to Rs2425, Gujarat Ambuja gained 1.5% to Rs110 and Mangalam Cement added 0.9% to Rs132.
Results Today:
Ashapura Minechem, EIH, Elecon Engineering, Geodesic Informatics, Ginni Filaments, Graphite India, PFC, SCI and PNB.
Major Bulk Deals:
Citigroup has picked up Gitanjali Gems; CLSA has sold Indiabulls real Estate; Goldman Sachs has bought TN Newsprint; Crown Capital has purchased UB while Fidelity has sold the stock.
Insider Trades:
UFLEX Limited: A.R. Leasing Private Limited (part of the promoters' group) has purchased from open market 4390 equity shares of UFLEX Limited on 12th June 2007.
Petronet LNG Limited: P. Dasgupta, Managing Director & CEO has purchased from open market 10000 equity shares of Petronet LNG Limited on 5th and 8th June 2007.
Hanung Toys and Textiles Limited: JM Financial Mutual Fund through its various schemes has purchased from open market 50000 equity shares of Hanung Toys and Textiles Limited on 12th June 2007.
Lower Circuit:
Teledata Informatics, Tanla and Raj Television.
Upper Circuit:
Advanta, Sical Logistics, Asian Electronics, Bag Films, Shree Ashtavinayak, Unity Infrastructure, MIC Holding, Crest Animation, Deep Industries, Prime Focus, Accel Frontline, IKF Technology, Nirlon and United Breweries.
Delivery Delight (Rising Price & Rising Delivery):
Alstom Projects, Andhra Bank, Associated Cement, Aurobindo Pharma, Bajaj Hindustan, Bank of India, Century Textiles, Cummins India, Dena Bank, Grasim Industries, Gujarat NRE, HCL Tech, HDFC, Infosys, Jet Airways, R Com and Sesa Goa.
Abnormal Delivery:
NIIT, GTL, TVS Motor, TCS, Punj Lloyd, SRF, Sun TV, Asian Hotels, UCO Bank, Pfizer and Tata Steel.
Major News & Announcement:
Nagarjuna Constructions gets Rs610mn contract
Wockhardt may buy US drugmaker, Morton Groove – reports
PVR's multiplex at Juhu granted exemption from payment of Entertainment Tax
GBN to launch 24-hour Marathi Language News & Current Affairs Channel
ICICI plans to raise Rs201.25bn from FPO and ADR issue
OCL India plans to sell securities to select investors for Rs2.2bn
Jain Irrigation approves share sale to Morgan Stanley
Alstom to build combined cycle power plant in Gujarat
Hind rectifiers to split each share in to 5 and pay dividend of Rs10 per share
HOV Services plans to raise funds selling Securities overseas