MOST DAILY – 16 MAY 2006
MOTILAL OSWAL KURIACHIRA
MOST DAILY – MONDAY, 15 MAY 2006 :
The Sensex tumbled sharply by 4% making the bulls visit the haunting images of May 17, 2004, on a day when Sensex fell by 800 points. Combination of several factors like weakness across the global market, crash in metal prices on the London Metal Exchange, heavy selling by the FIIs in last few trading sessions and tussle between the Government with the cement companies led to the downfall. History repeated itself yet again on Dalal Street as the bears struck back on the bourses with renewed vengeance taking the indices to never seen before levels in recent trading sessions. The Sensex end at 11798.63 , down by 489 points and Nifty also dropped 159 points at 3491.Heavyweights led the decline, with all the scrips from the BSE Sensex ending in red. Selling was seen across-the-board in counters like Metal down 11.29%, Oil and Gas down 4.53%, FMCG down 4.24% and PSU down 4%.
Refinery scrips ended in red on back of high crude oil prices. HPCL down 5% to Rs330, BPCL down 3% to Rs417 and IOC down 3% to Rs543.
Metal prices cooled off on LME after being on a dream run, which led to profit booking across the metal stocks on the bourses. Hindalco was among the biggest losers falling by over 13.5% to Rs210. Tata Steel down 8% to Rs 587 and Sterlite down by 14% to Rs 516.
Auto stocks were in reverse gear led by Tata Motors down 5% to Rs918, M&M was down by 4% to Rs666, and Maruti down 5% to Rs886 and Hero Honda was down by 3% to Rs853.
Cement stocks remained under cloud of profit booking. The cement companies will later submit a proposal to Government on price cuts on the building material. ACC down 4% to Rs863, Gujarat Ambuja Cement down 4% to Rs101 and Grasim down 6% to Rs2125.
OUTLOOK
: The markets today closed in negative amidst lot of volatility thus haunting the images of May 17, 2004 where in the markets fell by 800 points. We feel that the markets have reached a level of correction where a selective buying should be done based on the fundamentals.Corporate News
12 May, 2006India Cements signed an accord to set up a unit in the north Indian state of Himachal Pradesh. The unit will be set up in five years, the Chennai-based company said in a statement to the Mumbai stock exchange today.
Inflation at 3.60% against last week at 3.54%
Government tells cement makers to cut prices by Monday
Wockhardt plans to buy a U.S.-based drug maker Wockhardt plans to buy MGI Pharma –Report
HT Media to raise newspaper rate by 10-15%
Indraprastha Medical Corporation has set up a 57 bed Hospital in Noida (U.P.) with an investment of around Rs150bn
Godrej Consumer to consider stock split on May-26
Unitech announces bnonus 12 shares for one share held and stock split from Rs10 to Rs2
Geojit Financial - Setting up of Joint Venture broking Company in Saudi Arabia
DLF Universal, an Indian real-estate developer, filed with the capital market regulator to sell 202 million shares in an initial public offering. The company may raise as much as $3.2 billion from the sale of share.
Apollo Hospital to raise $115mn selling shares
Blue Star Board recommends dividend at Rs12 per share & Sub-division of equity share of Rs10 each into 5 equity shares of Rs2.
Fedders Lloyd Corporation has acquired a plot measuring 5 Acres in Integrated Industrial Estate
Pantnagar for setting up an expansion plant for manufacture of Split AC, Window AC, Vehicular Bodies and Structures.
Electrosteel Castings has entered into a Subscription Agreement with CitiGroup Global Markets Ltd, sole Book Runner and Lead Manager for issue of FCCBs of US$ 60mn on May 11, 2006, with a green shoe option.
Goetze India Ltd - The Company's 25.46% Equity Share Capital is held by Federal Mogul Corporation, Germany
Derivatives Summary
The top ten contracts contributed to around 50% of the total traded volume in Futures on individual securities. Reliance was the most active future contracts on individual securities traded today with 46108 contracts and Tata Steel was the next most active futures contracts with 31753 contracts being traded.
Economy and Political
Asian stocks, set to complete their worst week in four, may resume their gains as more U.S. investors are lured by the region's economic growth prospects, CLSA Ltd.'s Christopher Wood said. Rising interest rates in the U.S., the largest market for Asian exports, are unlikely to deter fund managers. `There could be some hiccups, but the trend of more money coming to Asia will continue, because Asia is where the longterm growth is and Americans are beginning to realize that,'' said Wood, the top-ranked Asian equity strategist in Institutional Investor's 2005 poll. China's economy may grow 9.5 percent this year, while India's will expand 7.3 percent, more than the U.S. economy's 3.4 percent. ``Rising U.S. interest rate will not stop the trend because people are chasing performance and Asian stocks will perform better,'' Wood said.
Industrial production growth slowed in March as crude oil output declined for a ninth month and a shortage of coal curbed electricity generation. Production at factories, utilities and mines rose 7.7 percent from a year earlier after February's 8.8 percent gain
Institutional activities (Rs in Cr.)
FIIs (Cash) : -1200.00 FIIs(F&O) : -850.00 MFs : -67.92
Vijo Joy Kuriakose P
Branch In Charge
MOTILAL OSWAL SECURITIES LTD
1st Floor, Flamon Complex
Kuriachira, Thrissur-680006
Ph: 0487-5523675,
Mob: 9895977410
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