Markets staged a bounce back with the Sensex closing the week at its all-time high levels. Compared to the 100-point loss the previous week, the index ended with a 219.55-point gain last week at 7899.77. The Nifty also closed at a life-time high of 2415.80, up 58.75 points from its previous weekend close.
Strong support from FIIs and domestic mutual funds were the main reasons behind the improved sentiment. Robustness in Asia Pacific markets also boosted the sentiment. IT and auto scrips saw renewed buying interest during the week.
The market breadth was positive last week, with the Sensex closing at all-time high levels. Of the 30 Sensex stocks, 23 ended with gains. Two stocks with the highest weightage in the index - Infosys and Reliance Industries - contributed the maximum to the index.
BULK DEALS
Date
Stock
Client
Deal Type
Quantity
Price (Rs)
29-Aug-05
Deccan Chronicle Holdings
Prudential ICICI Mutual Fund
Buy
575000
336.97
29-Aug-05
Rolta India
Grantham A/C GMO
Buy
660000
156.45
30-Aug-05
Pritish Nandy Communications
Advantage Advisors
Sell
186874
79.32
30-Aug-05
VisualSoft Technologies
Citigroup Global Markets
Buy
190000
196.40
30-Aug-05
SRF
ABN Amro Bank NV
Buy
349555
309.15
31-Aug-05
Kesoram Industries
ING Vysya Mutual Fund
Buy
737000
176.83
31-Aug-05
GTL
Taib Bank E.C.
Sell
396500
122.52
31-Aug-05
Aksh Optifibre
Electra Partners Mauritius
Sell
276000
70.01
31-Aug-05
Allsec Technologies
Reliance Mutual Fund
Sell
163987
184.90
31-Aug-05
Welspun Gujarat Stahl Rohren
Goldman Sachs Investment
Sell
1654000
80.00
Source: NSE, BSE
While Infosys gained 5.05 per cent to close at Rs 2384.65, adding 42.61 points, RIL advanced 4.62 per cent to end at Rs 730.85. The gains in the latter contributed 39.91 points to the index.
Other big gainers were Bajaj Auto, Tata Steel, HLL and TCS. Compared to the advances, downsides were limited. Engineering major L&T was the biggest drag on the index. The stock declined 1.01 per cent to end at Rs 1311.85. Cipla and Bhel were also major losers.
01-Sep-05
Return (%)
1 week
1 month
1 year
BSE Sensex
7899.77
2.86
1.85
51.38
S&P CNX Nifty
2415.80
2.49
2.49
47.84
BSE-100
4229.51
2.69
2.00
50.90
BSE-200
1023.62
2.76
2.45
49.04
BSE-500
3308.24
2.94
3.70
54.86
CNX Nifty Junior
5080.95
2.19
1.38
55.03
S&P CNX 500
2150.90
2.67
3.74
55.43
FII Net inflows (Rs cr)*
313.10
951.80
3522.30
52082.80
MF Net inflows (Rs cr)*
177.76
578.78
2530.68
6412.64
BSE turnover (Rs cr)@
3908.29
3628.19
3548.25
2353.31
NSE turnover (Rs cr)@
6432.85
6134.02
6624.26
4859.51
Sensex P/E@
16.46
16.01
15.98
15.52
BSE-Auto
3352.26
4.45
1.84
48.17
BSE-Bankex
4486.31
0.83
-4.74
74.54
BSE-Cap. Goods
4422.02
0.93
6.30
82.74
BSE-Cons Durable
2459.97
2.19
-0.08
119.30
BSE-FMCG
1385.18
1.88
3.34
64.06
BSE-Healthcare
3061.45
1.79
3.54
33.50
BSE-IT Sector
3004.37
4.31
2.36
43.33
BSE-TECk
2063.18
4.11
3.94
50.73
CNX IT
3208.05
4.32
4.42
34.22
BSE-Metal
6468.40
3.61
9.88
47.68
BSE-Oil & Gas
3681.14
3.16
1.55
38.64
BSE-PSU
4780.38
1.71
1.66
42.87
Nasdaq
2147.90
1.28
-3.11
16.45
Dow Jones
10459.63
0.60
-2.22
1.94
MSCI World
1207.36
1.90
0.52
-13.66
MSCI Emgerging Markets
623.99
3.18
1.52
40.07
MSCI Emerging Asia
254.24
0.88
-2.59
27.75
Rs/$
43.87
0.41
0.99
-5.25
Brent Crude (spot)$/Bbl
66.59
0.54
9.92
58.77
* Figures for week, month and year are cumulative flows. @ Daily average turnover/Sensex P/E as on date, week-, month- and year-ago.
All the sectoral indices ended the week with gains. Auto and technology stocks saw the maximum buying interest during the week. This was reflected in the performance of the BSE Auto Index (up 4.45 per cent) and the BSE IT Index (up 4.31 per cent) which were the top two gainers.
Gains Tata Motors, Baja Auto and Hero Honda were the main reason behind the upsides in the Auto Index. Advances in Infosys, Satyam, TCS and Wipro provided the kicker for the IT Index. Other major gainers were the BSE Metal Index and the BSE Oil & Gas Index.
US markets endured a difficult week as investors worried about the economic impact of Katrina. Even a decline in oil prices and lower employment figures failed to cheer the sentiment.
However, major indices ended the week with moderate gains. The Dow Jones Industrials ended up 50.08 points at 10447.37, while the Nasdaq rose 20.30 points to close Friday at 2,141.07. The upsides were mainly backed up by news that unemployment reached a four-year low.
What to expect this week
Despite the upsides witnessed last week, analysts are advising caution. While the markets may continue to witness buying support initially, there is bound to be some profit-booking at some stage, they note.
Analysts will also keep a watch on FII and mutual fund inflows, which were instrumental in last week's gains. On the downside, oil prices which are hovering at record high levels continue to be a worry. This is expected to lead to a hike in domestic retail prices of petrol and diesel.
With the Sensex closing just below 7,900 on Friday, the bulls had much to cheer. Though there was some volatility at the start of the week, it was mostly a one-way street.
What warmed the cockles of bulls was the fact that frangipani were in back in full force. Even desi funds made fun, buying more than Rs 2,200 crore during August.
Desi fund HS Busy was in the news after it made a purchase at the textile counter S Kumars Nationwide. Along with its global investment arm, the fund picked up 1.5 crore shares of the company at Rs 44, which represents a 11.6 per cent equity stake in the company.
Of late analysts have been singing praises of the company which owns the Reid & Taylor brand. Another one who was itching to get into the counter was Jeweller Fund, who bought 15 lakh shares at Rs 44.
Jeweller Fund has also been quietly buying up shares of pharma company Suven Life Sciences. Those in the know tell us that from the start of the year, Jeweller has bought more than five lakh shares at the counter.
Firms like All Wise Capital have been singing high praises of the company, noting that Suven has graduated from being a CRAMS player to a full service R&D player.
The counters of IT firm, KLG Systel and pharma company Granules India also witnessed activities. While one emerging market manager sold some 70,000 shares at Rs 104.36 of Granules India, domestic players were making purchases at the KLG counter at Rs 190 levels.
Stock of the week
JINDAL DRILLING
Last week's close (Rs)
293.67
Prev. week's close (Rs)
242.03
Week's high (Rs)
309.70
Week's low (Rs)
239.00
Last week's ave. daily turnover (Rs cr)
21.07
Prev. week's ave. daily turnover (Rs cr)
3.64
Futures close
NT
Number of up/down move
2/3
Shares of Jindal Drilling saw massive buying interest last week. The stock surged 21.34 per cent to end the week at Rs 293.67. Volumes at the counter zoomed 425 per cent.
The upsides occurred after the company announced a consolidation of its drilling business apart from a proposal for acquisition of an offshore rig and participation in tenders in Sudan, Middle East and other countries.
The company says it is planning to consolidate and restructure its presence in the drilling business by merging some of the group companies with itself. The merger is expected to bring in synergies as these subsidiaries are already operating in the same field.
The company is also participating in tenders in Sudan, Middle East and other countries for offshore drilling operations for which it may decide on acquiring a land rig.
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