Saturday, July 07, 2007

IT stocks aid Sensex's dash across 15,000:The BSE Small-Cap Index jumped 108 points, or 1.4%, to 7,904.11. It also hit an all-time high of 7,955.43 in intra-day high: Ansal Buildwell Ltd should now move up due to positive developments in the company. It is wonderful company and is into various field---www.ansalabl.com. It is touted to be the next Unitech Ltd or Mahindra Gesco Ltd, by judging the sheer nature of work it does & Land Bank it possesses(to the tune of Crores of rupees, hereto unknown to most of the people)--full details to the Premium Group Members only: My yesterday's morning call on Srinivasa Hatcheries Ltd saw it hit the upper circuits. A morning report was sent to the Premium Group Members, as to why they should buy this scrip in the short term: Start buying again Jai Parabolic Springs Ltd or Jamna Auto Ltd, due to positive developments in the company: My recommendation of Silverline Technology Ltd as high risk high gain stock, with a Target of Rs.24, to the Premium Group member, some days back saw it hit the Upper Circuits, in the early trade: Shree Ganesh Forgings Ltd recommended to the Premium Group members at Rs.32.5, some days back is also doing well: I am going to recommend a Multi-bagger to the Premium Group members, next week and hence keep the hard cash ready:
It was a historical day for the markets, with the barometer BSE 30-share Sensex hitting the 15,000 level. The S&P CNX Nifty also hit an all- time high above 4,400. Barring a small hiccup in early trade, the market headed higher with the passage of time as buying momentum continued unabated. Ahead of their results, IT shares dominated trading throughout the day. A fall in the rupee aided the rally in IT scrips. Buying was also seen in cement stocks, while banking shares saw profit booking. The Sensex rose 102.23 points, or 0.69%, to 14,964.12, an all-time closing high. It struck a record high of 15,007.22 at 13:21 IST. It had opened at 14,843.43 and slipped to a low of 14,826.56 at 10:07 IST, which was a fall of 35 points for the day. It oscillated in a range of 180 points for the day. The S&P CNX Nifty struck an all-time high of 4,411 in late-afternoon trade, and settled 30.90 points, or 0.71%, higher at 4,384.85, an all-time closing high. The Nifty July 2007 futures ended at 4,374, a discount of 10.85 points compared with spot closing. It took seven months for the Sensex to move from 14,000 to 15,000. The index had first hit 14,000 on 5 December 2006. In contrast, it had taken just 26 trading sessions for the Sensex to reach the 14,000 level after it had hit the 13,000-mark on 30 October 2006. It took about 17 months for the Sensex to move from the 10,000 level to 15,000. The barometer index had first struck the 10,000 mark on 6 February 2006. On BSE, a deal took place in State Bank of India (SBI) at Rs 1,760 at 13:03 IST. It is also all-time high for the stock, and way above the ruling market price of Rs 1,570. And the quantity executed at that price was not minuscule: 16,762 shares changed hands in the stock at the price. The SBI stock ended 0.14% higher at Rs 1549 on 6.32 lakh shares. India's wholesale price index rose 4.13% in the 12 months to 23 June 2007, higher than the previous week's increase of 4.03% due to the rise in some food and mineral prices, government data released noon today, 6 July 2007, showed. The total turnover on BSE amounted to Rs 5,850 crore as against Rs 6515 crore on Thursday, 5 July 2007. The NSE F&O turnover was Rs 34,609.98 crore compared to Rs 41247.62 crore on Thursday, 5 July 2007 The market breadth was strong, with small- and mid-cap shares also participating in the rally: 1,490 shares rose on BSE as against 1,176 that declined, while 86 were unchanged. The BSE Mid-Cap Index was up 15 points, or 0.23%, to 6,620.85. The BSE Small-Cap Index jumped 108 points, or 1.4%, to 7,904.11. It also hit an all-time high of 7,955.43 in intra-day high. Among the Sensex pack, 25 advanced while the rest declined. IT pivotals dominated gainers, with four of the top 5 Sensex gainers being IT stocks. They advanced on fresh buying after the Indian rupee today, Friday, 6 July 2007, turned weak and was quoted at 40.47/48 against the US currency due to the suspected intervention by the central bank and dollar-buying by oil refinery companies. The BSE IT Index surged 3.31% at 4,950.53, and was the top gainer among the sectoral indices on BSE. Satyam Computers galloped 4.60% to Rs 485.50 on 12.53 lakh shares and was the top gainer from the Sensex pack. Infosys Technologies (up 3% to Rs 1974), TCS (up 4.17% to Rs 1156), and Wipro (up 2.95% to Rs 519) were other gainers from the IT sector. Wipro signed a definitive agreement to acquire 100% shareholding in Unza Holdings (Unza), a Singapore-based fast moving consumer goods (FMCG) company, for an all-cash consideration of Rs 1010.20 crore (approximately $246 million). It recorded revenue of Rs 683.30 crore with double-digit operating margin for fiscal year ending on 30 April 2007. Transaction is expected to be closed by end July 2007. The company made this announcement after market hours on 6 July 2007 Tech Mahindra (up 5.65% to Rs 1475), Patni Computer (up 3% to Rs 508), i-flex Solutions (up 0.87% to Rs 2544), and MphasiS BFL (up 2.66% to Rs 320.50) gained from the mid-cap IT pack. Rolta India inched up 0.02% to Rs 455.50 after announcing the acquisition of Canada-based Orion Technology Inc, a Canadian software and integration company specialising in enterprise web-GIS solutions. Rolta India said the Canadian acquisition was strategically important as it would enable the company to own exceptional technologies for taking its GIS offerings to the next level of sophistication. Analysts expect disappointing Q1 June 2007 results from IT firms due to the appreciating rupee, impact of wage hike and higher visa costs. But some reckon that the negatives about Q1 results are already priced in and the sector’s underperformance offers a good buying opportunity as core business metrics of the IT sector like volumes, pricing and margins (excluding the impact of the rupee) remain buoyant. IT bellwether Infosys kickstarts the Q1 June 2007 earnings season on Wednesday, 11 July 2007. Shares from cement pack advanced today, Friday, 6 July 2007, after declining on Thursday 5 July 2007. They had surged recently on reports that cement firms have hiked prices by Rs 3-Rs 5 per 50-kilogram bag across India effective from 4 July 2007. Ambuja Cements (up 1.86% to Rs 131.50), ACC (up 2.28% to Rs 1045), Birla Corporation (up 3.56% to Rs 284) and India Cements (up 3% to Rs 219.80) edged up from the cement sector. Engineering and construction major L&T advanced 1.71% to Rs 2,371, after striking an all-time high of Rs 2,385.90. L&T will float five new companies to ensure better corporate governance as well as attracting talent. The companies will operate in L&T’s new business areas of power projects, boilers, turbines, water and shipbuilding. Telecom stocks gained on renewed buying. Reliance Communications (up 1.20% to Rs 551.55) and Bharti Airtel (up 1.36% to Rs 865) edged higher on continued buying support. Bajaj Auto moved up 0.97% to Rs 2,110 on reports that it had carved its different businesses into five broad strategic units — research & development unit, engineering unit, two-wheeler business unit, commercial vehicles business unit and international business unit. The move, led by Rajiv Bajaj, the managing director, is aimed at turning the 62-year-old company into a fast paced player capable of responding quickly to changes in the world’s second-largest market for motorcycles. Private sector banking major ICICI Bank was weak throughout the day’s trading session. It was the top loser from the Sensex pack. The stock lost 2.70% to Rs 978.25 on 32.47 lakh shares. The 5.81-crore shares of ICICI Bank offered in its follow-on public offer (FPO) completed last month were listed on the bourses today. The company had priced its FPO at Rs 940 per share. Retail investors were offered the shares at a discount of Rs 50, i.e., at Rs 890 per share. The issue was subscribed 11.5 times, with the qualified institutional buyers category bid 21.6 times. The issue was open from 19 June 2007 to 22 June 2007. Other banking shares, Centurion BoP (down 1.54% to Rs 41.60), Andhra Bank (down 1.45% to Rs 84.80), Punjab National Bank (down 0.87% to Rs 525), Indian Overseas Bank (down 1.75% to Rs 117.60) and Vijaya Bank (down 1.67% to Rs 50.15), edged lower. The BSE Bankex was down 0.8% at 8,123.79, and was the top loser among the sectoral indices on BSE. HDFC (down 1.74% to Rs 1916), Maruti Udyog (down 1.27% to Rs 795) and Cipla (down 1.50% to Rs 213) slipped. Index heavyweight Reliance Industries (RIL) was up 0.27% to Rs 1,712.55, on 7.59 lakh shares. It moved in the range of Rs 1703 – 1733. Real-estate major DLF rose 0.17% Rs 571 on high volumes of 55.15 lakh shares. The stock had settled at Rs 570.05 on Thursday, 5 July 2007, at a premium of 8.57% over the IPO price of Rs 525. Mahindra & Mahindra surged 2.83% to Rs 791 on renewed buying ahead of its entry into the BSE Sensex from Monday, 9 July 2007. In the market barometer index, the tractor & utility vehicle maker will replace two-wheeler maker Hero Honda Motors. Hero Honda Motors also rose 1.52% to Rs 699.85. Vishal Retail galloped 9.50% to Rs 758.50 after 4.16 lakh shares changed hands in multiple block deals at a weighted average price of Rs 708.91 on BSE. It was the top traded counter on BSE, with total turnover of Rs 493.17 crore. Moser Baer (India) rose 0.68% to Rs 497.55 on reports that the Indian government has imposed anti-dumping duty on import of compact disc-recordables (CD-Rs)from China, Hong Kong, Singapore and Chinese Taipei. The central board of excise and customs has notified the imposition of anti-dumping duty in the range of $0.050 to $0.099 per piece on CD-Rs. The move is expected to give some relief to domestic producers. Thermax surged 3.80% to Rs 549 after 2.5 lakh shares changed hands in a single block deal at Rs 552.50 per share on BSE. The company’s equity capital is Rs 23.83 crore, with 11.91 crore outstanding shares of a face value of Rs 2 each. IL&FS Investment Managers soared 9.99% to Rs 177.30 after a block deal was struck at Rs 152 a share on BSE. The 32 lakh shares that changed hands represented nearly 12% equity of the company. The block deal was struck between Bank of India and IL&FS Leasing & Financial Services. Bank of India sold its entire 12.25% stake in IL&FS Investment Managers to the company's promoters: Ravi Parthasarathy, Arun Saha, Vibhav Kapoor. Post the block deal, the founders hold 55.4% in IL&FS Investment Managers. PTC India jumped 10.98% to Rs 70 on media reports that private equity firm Blackstone, Saloman Brothers and Goldman Sachs are talking to the firm to pick 49% stake in its arm PTC Financial Services. Most Asian markets rebounded from early fall. Shanghai Composite surged after initial fall. It surged 4.58% at 3,781.34. Hang Seng (up 1.25% to 22,531.74), Seoul Composite (up 0.72% to 1,861.01), Taiwan Weighted (up 0.43% to 9,188.31) and Straits Times (up 0.29% to 3,561.96), edged higher. Majority of European indices were trading with gains. US stocks closed mixed in post-holiday trading on Thursday, 5 July 2007, as a rebound in bond yields stifled Wall Street's excitement about new buyout activity and strength in the US service sector. The Dow fell 11.46 points, or 0.08%, to 13,565.84. The Standard & Poor's 500 index rose 0.53 points, or 0.03%, to 1,525.40, while the Nasdaq Composite index rose 11.70 points, or 0.44%, to 2,656.65.
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