post market analysis

The Sensex, which was strong throughout the day, ended firm as buying continued for index pivotals, especially index heavyweight Reliance Industries (RIL), owing to a stupendous set of results from India Inc, rallying US markets and firm stocks around the globe. Stocks from the oil & gas, capital goods and the auto pack were in demand.
The 30-share BSE Sensex ended with a spurt of 205.84 points, or 1.48%, at 14,078.21. It had opened firm at 13,987.77, which was also its low for the day. The benchmark Sensex had eased a bit after touching a high of 14,104.47, in the late afternoon session of trades, as some profit-booking emerged at the higher levels.
The S&P CNX Nifty jumped 62.95 points (1.54%), at 4,150.85. It had surged to an intra-day high of 4,161.20 today. Its all-time high is at 4,245.30.
The total turnover on BSE amounted to Rs 4417.65 crore while the NSE F&O turnover was Rs 27675.18 crore. The market-wide turnover was Rs 41409.87 crore.
The market-breadth, which reflects the overall health of the market, was strong. Smallcaps and mid-caps also contributed to the rally today. There were over 1.5 gainers for every loser on BSE. Against 1,535 scrips that advanced, 1,038 declined. Also, 95 scrips remained unchanged.
The BSE Mid-Cap Index settled at 5,866.25, rising 71 points (1.22%), while the BSE Small-Cap Index rose 60 points (0.9%), to 7,054.20.
Among the 30-Sensex pack, 22 advanced while the rest declined.
Auto major Bajaj Auto (BAL) jumped 4.70% to Rs 2559.90, and was the top-gainer. BAL’s board meeting is scheduled on 17 May 2007, in Mumbai and as per reports is “very likely” to include the demerger proposal on its agenda. The proposal is intended to unlock value for shareholders by separting the manufacturing and financial assets of Bajaj Auto into two entities.
Meanwhile, Bajaj Auto continued its downward spiral in motorcycle sales for the third consecutive month this year, with its April numbers, including exports, declining by 13% compared to the same month last year. The company said its bike sales in April stood at 1,64,304 units against 1,88,518 units (inclusive of exports) in the same month last year, down 13%. Total two-wheeler sales also registered a dip of 13% at 1,65,692 units against 1,90,964 units last year, BAL said.
Three-wheeler sales, however, were up 15% at 24,360 units as against 21,159 units in the corresponding month last year, the company added. BAL said exports during the month jumped by 64%.
Hero Honda gained 2.69% to Rs 702, as bike sales improved in April. Hero Honda reported a 4.86% increase in vehicle sales during April 2007 at 2,62,544 units against 2,50,366 units in the same month last year. “We have been consistently doing better than industry numbers for the past few months and the momentum has been sustained in the first month of the new financial year as well. We expect to maintain this growth momentum in the coming years as well,” Hero Honda Vice-President (marketing and sales) Anil Dua said in the statement. Hero Honda’s growth is in contrast to rival Bajaj Auto continuing its downward spiral in motorcycle sales for the third consecutive month this year, with the latter’s April numbers, including exports, declining 13% compared with the same month last year.
Maruti Udyog rose 1.52% to Rs 815.30, after reporting 17% growth in car sales in April as it sold 48,652 vehicles compared to 41,574 vehicles sold in the same period last year. Over all, the company sold 50,352 vehicles in domestic and international markets in April, compared to 43,127 in April 2006.
The BSE Auto Index gained 1.45%, buoyed by renewed buying following robust set of monthly vehicle sales figures for April 2007.
Gujarat Ambuja Cements (up 3.82% to Rs 122.45), and Ranbaxy laboratories (up 3.41% to Rs 384) were the other gainers.
Index heavyweight Reliance Industries (RIL) advanced 3.97% to Rs 1622.10, as 8.62 lakh shares changed hands in the counter on BSE. It had surged to a high of Rs 1627.80, while its low was at Rs 1575. RIL will pay over $600 million for hiring deep-sea drilling rigs for developing the gas fields in the prolific KG-D6 block off the east coast. It has hired US firm Tranocean’s Deepwater Frontier rig at a day rate of $3,20,000 for two years, beginning August 2006. Deepwater Frontier is currently drilling in Bay of Bengal, reports said. Crude oil production will begin in the first quarter of calender year 2008, earlier than the gas project. Oil output will range between 30,000 and 50,000 barrels per day, sources said.
KG-D6, the world’s second largest deepwater find last decade, is being brought to production in less than six years of discovery at a cost of $2.8 per barrel of oil equivalent (boe), they said.
Once the fields comes on production, almost all of the country’s natural gas deficit will be wiped out.
Led by RIL, the BSE Oil& Gas Index surged 2.8% to 7,337.78, and was the top-gainer from among the sectoral indices of BSE. BPCL (up 4.17%), HPCL (up 4.20%) and ONGC (up 0.50%), had gained.
The BSE Capital Goods Index advanced 1.9% at 10,063.23, led by L&T (up 2.48% to Rs 1738.55), Areva T&D (up 8.58% to Rs 1288), Bhel (up 1.72% to Rs 2530), and Crompton Greaves (up 1.60% to Rs 356).
Maruti Udyog (MUL) rose nearly 1.52% to Rs 815.30, after reporting 17% growth in car sales in April as it sold 48,652 vehicles compared to 41,574 vehicles sold in the same period last year. Over all, the company sold 50,352 vehicles in domestic and international markets in April, compared to 43,127 in April 2006.
HDFC Bank lost 2.35% to Rs 1002, and was the top-loser.
FMCG major Hindustan Lever (HLL) declined 1.71% to Rs 196, on a volume of 10.80 lakh shares while telecom services provider, Reliance Communications, slipped 1.38% to Rs 470.50, on a volume of 23.51 lakh shares.
Tata Motors slipped 2.26% to Rs 733.50, after surging to a high of Rs 764.50, on reporting total sales of 40,486 vehicles (including exports) for April, a growth of 10.7% over 36,574 vehicles sold in April 2006. The company sold 19,607 commercial vehicle (CV) units in the domestic market during April, when compared with 19,674 vehicles in the same month last year.
The sales of medium and heavy commercial vehicle products stood at 10,392 units, a decline of 14% over April 2006. Sales of light commercial vehicles grew by 22% at 9,215 units over April 2006.
Tata Motors’ passenger vehicles business reported total sales of 16,842 vehicles in the domestic market in April 2007, an increase of 26% over April 2006. The company sold 4,037 units in the export market in April 2007, compared to 3,572 vehicles in April last year, an increase of 13% driven mainly by commercial vehicles.
Housing finance company HDFC was up 0.43% to Rs 1666.90, after it reported a 29% jump in net profit to Rs 550.05 crore for the fourth quarter ended March 2007, compared to Rs 426.52 crore for the same quarter a year ago. Total income rose nearly 40% to Rs1,732.95 crore (Rs 1,239.90 crore).
In FY-2007, HDFC posted a net profit of Rs 1570.38 crore compared to Rs 1257.30 crore for FY-2006. Total Income on annual basis increased to Rs 5896.26 crore (Rs 4278.39 crore).
IFCI was the top-traded scrip, grossing Rs 154.96 crore on BSE. While RIL (Rs 138.42 crore), Network 18 Fincap (Rs 113.68 crore), Tech Mahindra (Rs 113.52 crore) and Reliance Communication (Rs 112.50 crore) followed.
IT and BPO major MphasiS gained 4.78% to Rs 328.65, after it posted 59% increase in net profit at Rs 29.03 crore for the quarter ended March 2007, as compared to Rs 18.26 crore in the corresponding quarter of the previous fiscal. The total income grew 55% to Rs 161 crore (Rs 103.93 crore).
“This fiscal has been one of great challenges and achievements. We have grown from strength-to-strength after a subdued first quarter to record our highest ever profits as a company,” Mphasis Chairman Jerry Rao said.
MphasiS posted a net profit of Rs 45.56 crore for the quarter ended March 2007, as compared to Rs 35.15 crore for the same quarter last year and the total income of the group rose to Rs 334.72 crore from Rs 251.63 crore.
The MphasiS group added seven new clients in the January-March quarter, including a US-based housing finance institution it didn’t identify.
Gujarat Mineral Development Corporation (GMDC) jumped 20% to Rs 637, on a report that the board had recommended a 2-for-1 stock split. There was no such announcement by the company so far. The stock also got a boost today from a surge in net profit for Q4 March 2007, reported by the company. Gujarat Mineral Development Corporation (GMDC)’s net profit jumped 92.1% in Q4 March 2007 to Rs 49.66 crore (Rs 25.85 crore). Net sales rose 44.9% to Rs 185.47 crore (Rs 128.01 crore).
Network 18 Fincap surged 20% at Rs 467.85, after a block deal of 12.5 lakh shares was struck in the counter on BSE at Rs 395 per share in the opening session of trades. The Network 18 Fincap counter clocked huge total volumes of 26.64 lakh shares on BSE.
Gujarat Gas Company jumped 9.16% to Rs 1450, after the company reported 42.6% growth in net profit in Q4 March 2007, and set a record date of 22 May 2007 for executing a 5-for-1 stock-split.
Hindustan Zinc jumped 9% to Rs 740.70. The stock had edged up tracking surging global base metal prices. Strong economic data lifted global metal prices. US factory orders rose a greater-than-expected 3.1% and euro-zone manufacturing activity was also steady, suggesting strong demand for metals.
Nestle India jumped 6.63% to Rs 1074, on reporting 22% growth in net profit for Q1 March 2007 to Rs 108.45 crore (Rs 88.61 crore). Net sales rose 28% to Rs 863.08 crore (Rs 675.92 crore). The net domestic sales rose 21% to Rs 813.17 crore, largely on account of higher volume and price increases across categories. Nestle India had taken some price increases during the last few months in key categories, to insulate margins from cost escalation.
Nestle India’s export revenues jumped 70% to Rs 86.24 crore in Q1 March 2007, due to higher volumes coupled with higher realisations, most of which were on account of higher prices of green coffee.
Moser Baer rose 2.36% to Rs 364.25, after the company announced a 1:2 bonus along with strong set of Q4 March 2007 results. For Q4 March 2007, Moser Baer reported a surge in net profit to Rs 39.72 crore (Rs 0.35 crore). Net sales rose 3.5% to Rs 525 crore (Rs 507.49 crore). Meanwhile, Moser Baer’s board has also decided to raise funds for its expansion plan through debt or equity up to $150 million.
Adlabs Films rose 3.61% to Rs 445, after it entered into an agreement with Rave Entertainment for exhibition rights in seven multi-screen cinemas of north India, one of which is operational and six are coming up. The seven multi-screen cinemas will have 23 screens in aggregate.
Gateway Distriparks rose 2.80% to Rs 180, after it announced a surprise 1:4 bonus issue along with Q4 March 2007 results. It reported 12.9% growth in net profit in the March 2007 quarter at Rs 20.25 crore (Rs 17.94 crore). Net sales rose 18.6% to Rs 35.59 crore (Rs 30 crore).
Apollo Tyres edged up 1.01% to Rs 319, after the company’s board announced a generous 10-for-1 stock-split along with robust Q4 results. As many as 15,092 shares have changed hands in the counter on BSE. Apollo Tyres’ net profit surged 118.5% in Q4 March 2007 at Rs 42.72 crore (Rs 19.55 crore). Net sales rose 22% to Rs 910.21 crore (Rs 745.85 crore).
The Hang Seng Index was up 1.44%, while the Nikkei 225 Index rose 0.69%.
FIIs turned sellers in the last two trading sessions after the heavy inflows of the last few days. FIIs sold shares worth a net Rs 195 crore on Friday (27 April), the day when the Sensex had plunged 320 points. Their inflow has been robust this month. As per a provisional data, FIIs were net sellers to the tune of Rs 440.51 crore on Monday. Domestic institutional investors were net buyers to the tune of Rs 200.65 crore on Monday. The market was closed on Tuesday (1 May) and Wednesday (2 May) on account of public holidays.
The outcome of the ongoing seven-phased Uttar Pradesh assembly elections, is a key political event to watch out for. The assembly poll gets over early this month. The vote is seen as a barometer of national political trends. Some opinion polls show the opposition Bharatiya Janata Party (BJP) emerging second in the race, further adding to the woes of the ruling Congress, which is already battling rising prices.
US stocks rallied on Wednesday, as robust profits and a flurry of buyout offers powered the Dow Jones industrials to a record-high and the S&P 500 to its highest level in over six years. Shares of manufacturing companies that sell their products abroad, such as appliance maker Whirlpool Corp and lawn mower maker Toro Co., posted sharp gains after government data showed bigger-than-expected increases in US factory orders. The Dow Jones industrial average was up 75.74 points, or 0.58%, at 13,211.88. The Standard & Poor’s 500 Index was up 9.62 points, or 0.65%, at 1,495.92. The Nasdaq Composite Index was up 26.31 points, or 1.04%, at 2,557.84.
Oil prices clawed back up on Thursday, after US government data showed a build up in crude but a further fall in gasoline stocks ahead of peak summer demand. US crude rose 4 cents to $63.72, after a 72-cent drop a day earlier. London Brent crude gained 18 cents to $66.43 a barrel in the Asian session, after dropping 75 cents on Wednesday.
US crude oil inventories rose by 1.1 million barrels last week in government data on Wednesday, slightly above analyst forecasts, due in part to continued low demand from refiners amid a string of breakdowns.
Meanwhile, the Lok Sabha on Thursday approved in a voice vote the Budget for 2007/08. Earlier, Finance Minister Palaniappan Chidambaram changed duties on some items, including cement and iron ore, and announced other changes to proposals he first laid out in February.