A statistician made a few calculations and discovered that since the birth of our nation (America) more lives had been lost in celebrating independence than in winning it. ~Curtis Billings
It's 4th of July and as America wakes later to celebrate their independence, the Indian markets have enough reasons to celebrate. The markets have scaled to a new high and flirting with 15k would be next on the itinerary of the bulls. But does it really matter whether the Sensex is above or just below that? The fact that there are no major obstacles, barring high crude oil prices, makes their task that much easier. Still, we would advocate some caution as the bears are not going to be sitting quiet either.
After a brief hiatus in June, when the key indices hardly moved, the bulls seem to have found renewed vigour. The past few days have been pretty good in terms of volume and FII inflows. The strong response to some of the recent issues also augers well for the markets. Inflation cooling off to 4% is a big relief. And, if there is no fuel price hike as Mr. Deora claims, there are less chances of any immediate monetary tightening from the RBI. That should cheer up the bulls further.
What will however will be watched keenly is the upcoming quarterly results for any signs of a slowdown in earnings growth. IT sector, which has a substantial weightage in the key indexes, would set the tone for the earnings season. Having said that, these shares have already taken enough beating in the past few days on the back of the surge in the rupee versus the dollar. The old economy companies are likely to keep the momentum going as far as results are concerned.
Today, we expect another positive opening, as most global markets gained overnight and majority of Asian markets are also trading up this morning. But, there may be some cooling later in the day in the form of routine profit booking. The US markets will be shut today for the Independence Day holiday. So, tomorrow we won't have any cues from Wall Street.
FIIs were net buyers to the tune of Rs4.45bn (provisional) in the cash segment yesterday. Local institutions offloaded stocks worth Rs1.7bn. In the F&O segment, foreign funds pumped in Rs13.04bn yesterday. On Monday, FIIs were net buyers of Rs2bn in the cash segment. Mutual Funds were net sellers of Rs2.21bn in the cash segment.
Shares of Vishal Retail will get listed on the bourses today. The company has set an issue price of Rs270 per share. The premium in the grey market has been pegged at around Rs300.
Akruti Nirman, which was recommended as by us in yesterday's DMS, shot up by 20%. The real estate company is announcing its results for the fourth quarter and the year ended March 2007.
Bharti Airtel could be a star performer today as Temasek has picked up a 4.99% stake in the company.
Indus Fila's Board will meet today to review its expansion plans and discuss the proposed business plans.
ICICI Bank could gain today as the Department of Industrial Policy and Promotion (DIPP) has given a green light to its proposal of roping in foreign investors in the proposed new subsidiary.
L&T has been in the thick of things of late and might have the legs to go further ahead. The engineering major is setting up two new subsidiaries for its power and shipbuilding businesses. It may also unlock value by listing these arms in future.
Britannia Industries will be in the limelight as US-based Kraft Foods has bought the biscuit business of its French partner Grope Danone, except in India and Latin America. This is because the Wadia Group and Danone are yet to settle their differences.
India Foils, which was locked in the 10% upper circuit yesterday, might rise further. A financial daily reports that Anil Agarwal-promoted Vedanta Resources is considering selling the country's largest aluminium foils maker. Also watch out for Ess Dee Aluminium, which is a competitor to India Foils.
Gitanjali Gems is likely to be in action as the jewellery maker has reported an 87% jump in its bottomline for FY07.
US stocks posted solid gains for the third straight session on Tuesday, as investors welcomed more acquisition news ahead of the July 4 holiday.
The Dow Jones Industrial Average was up 41.87 points or0.3% at 13,577.30 and the broader Standard & Poor's 500 index gained 5.44 points or 0.4% to 1,524.87. The tech-heavy Nasdaq Composite index rose 12.65 points or 0.5% to 2,644.95, closing at a fresh six-year high.
European shares gained. The pan-European Dow Jones Stoxx 600 index rose 0.9% to 395.71. The UK's FTSE 100 added 0.68% to 6,635.10, the German DAX advanced 1.16% to 8,050.64 and the French CAC-40 climbed 0.71% to 6,069.84.
Asian stocks rose for a fifth day today. The Morgan Stanley Capital International Asia-Pacific Index added 0.3% to 156.11 at 10:46 a.m. in Tokyo, taking its five-day gain to 3.4%.
Japan's Nikkei 225 Stock Average rose 0.3%. All markets open for trading advanced, except Singapore and the Philippines. China's CSI 300 Index swung between gains and losses.
Markets ended wit gains for fourth straight trading session as bulls settled on a new peak, given strong cues from International markets and all round buying in scrip's across the sectors lifted the benchmark Sensex, the NSE Nifty index and CNX mid-Cap index to close at a new all high. In this historic trading session markets witnessed support from the frontline stocks like Bharti Airtel, Reliance Industries, ICICI Bank and SBI. Also the broader market i.e. the BSE Mid-Cap and the BSE Small Cap index also participated in the rally. Finally, the 30-share Sensex gained 142 points to close at 14806. NSE-50 Nifty further added 43 points to close at 4357.
Bharti Airtel surged by over 3.5% to Rs866 after the company announced that monthly India Mobile user additions to cross 7mn and also in talks with Ericsson for additional Expansion order. The scrip touched intra-day high of Rs877 and a low of Rs837 and recorded volumes of over 15,00,000 shares on NSE.
Valecha Engineering rallied by over 7.5% to Rs273 after the Board of Directors of the company announced that they would consider Bonus issue on July, 30. The scrip touched intra-day high of Rs280 and a low of Rs258 and recorded volumes of over 2,00,000 shares on NSE.
Ashok Leyland edged higher 0.7% to Rs37 after the company announced that they have signed an accord with Alteams, Finland. The scrip touched intra-day high of Rs38 and a low of Rs37 and recorded volumes of over 34,00,000 shares on NSE.
Diamond Cables surged nearly by 8%t o Rs197 after the company announced that they would acquire stake in Apex Group. The scrip touched intra-day high of Rs199 and a low of Rs181 and recorded volumes of over 3,00,000 shares on NSE.
Glenmark edged lower by 0.6% to Rs668 after the company secured USFDA approval Terbinafine Tablets. The scrip touched intra-day high of Rs682 and a low of Rs666 and recorded volumes of over 1,00,000 shares on NSE.
FMCG stocks were back in action led by gains in the index heavy weight HLL as the scrip gained by over 3%t o Rs194, Tata Tea was up by 1.3% to Rs865, ITC gained 1.5% to Rs156 and Colgate added 3% to Rs382.
Capital God stocks also ended with strong gains. ABB gained by 1.5% to Rs1126, BHEL was up by 1.2% to Rs1546, and Siemens advanced by 1.5% to Rs1408 and L&T added 1.2% to Rs2261.
Banking stocks recorded smart gains. Heavy weight SBI surged by 3% to Rs1581, ICICI Bank gained by 1.7% to Rs966 and HDFC Bank added 0.2% to Rs1150. Bank of Baroda, PNB and Syndicate Bank were the major gainers among the Mid-Cap stocks.
Metal stocks continued to shine brightly as JSW Steel has advanced by 2.5%t o Rs620, Sterlite Industries gained by 1.3% to Rs606, SAIL was up by 1.5% to Rs130 and Tata Steel added 1.2% to Rs600.
IT stocks also gained momentum despite the Indian rupee strengthened against the US Dollar. Satyam Computer surged 1.5% to Rs473, Wipro was up by 0.6% to Rs515 and Infosys gained 0.3% to Rs1947. Moser Baer, NIIT Ltd and Mastek were the major gainers among the Mid-Cap stocks.
Major bulk Deals:
Deutsche Secs has sold Educomp; Goldman Sachs has picked up Gayatri Projects from Citigroup; Franklin Templeton MF has purchased Geojit Financial; Merrill Lynch has bought Jayant Agro; Kotak PMS has sold Kamat Hotels; Bear Stearns has picked up Karuturi Networks; Kotak PMS has bought MIC Electronics; HDFC MF has purchased MM Forgings; Merrill Lynch has bought Nagarjuna Construction; Citigroup has picked up Nitco Tiles; ABN AMRO Bank has sold Orchid; Sundaram BNP MF has sold Spentex and ABN AMRO Bank has sold SREI Infrastructure.
Insider Trades:
Asian Paints Limited: Shri Ashwin Choksi, Chairman of Asian Paints has purchased 5000 equity shares of the company on 27th June 2007.
Vakrangee Softwares Limited: Goldman Sachs Investments (Mauritius) I Limited ("GSIMI") from market has purchased 717936 equity shares of Vakrangee Softwares on 25th June 2007.
Lower Circuit:
Swan Mills, GMR Industries and Morepen Labs.
Upper Circuit:
Deeps Inds, Mukta Arts, Akruti Nirman, PBA Infra, RMCL, RIIL, Agro Tech, Unity Infra, UB, Piramyd Retail, Bihar Tubes and McNally Bharat.
Delivery Delight (Rising Price & Rising Delivery):
Bank of Baroda, Bharti Airtel, BRFL, Centurion Bank, Century Textiles, Cipla, Colgate, Corporation Bank, Crompton Greaves, Escorts, Gujarat Ambuja, Himachal Futuristic, Jaiprakash Associates, L&T, Orchid Chemicals and SREI Infrastructure.
Abnormal Delivery:
Bata India Ltd, RIIL, Rico Auto, Titan Industries Ltd, TV TODAY, Nitco Tiles Ltd, Aarti Industries, Tulip IT, Tata Tea and Avaya Global.
Major News & Announcements:
RBI's YV Reddy says economy to grow at 8.5% in FY07
Sun Pharma to raise as much as Rs35bn selling securities overseas
Shree Ashtavinyak to raise $50mn selling convertible Bonds
Gujarat Ambuja June production at 1.41mn tons and June sales at 1.38mn tons
Diamond Cables to by Strategic stake in Apex Group
Glenmark secures USFDA approval Terbinafine Tablets
L&T to pay Rs2 per share in special dividend
Ashok Leyland in accord with Alteams, Finland
Bharti says monthly India Mobile user additions to cross 7mn
Elecon Engineering gets Rs577mn order from BHEL
Aurobindo Pharma gets US approval for Terbinafine HCL Tablets
Bharti Airtel signs pact with Nokia Siemens for a US$900mn