vengabeats
Nilesh Nagdev
The market's recording breaking rise came to a halt last week. Volatility was high in intra-day trade.
For the 3-trading days truncated week ended 13 April 2006, Sensex plunged 352.21 points or 3% to settle at 11,237.23. The S&P CNX Nifty lost 109.30 points or 3.1% to 3,345.50. The market remained closed on Tuesday 11 April and it remains closed on Friday 14 April.
A sell-off has gripped the bourses since 7 April 2006. On 7 April, the Sensex had lost 157 points in highly volatile trading on rumours that Sebi had banned 11 foreign institutional investors from the market, which the regulator denied later. After recouping some of the loss on the next trading session, a major sell-off sharply pulled the Sensex down on 12 April. It tanked 307 points on that day. Heavy selling by FIIs in both cash and futures markets and a move by stock exchanges to raise margins on share transactions by about 250 basis points, from April 17 also forced investors to trim their positions. Selling continued on 13 April as the Sensex lost 119 points in a highly choppy trading session. The barometer index swung over 1,000 points in intra-day trade on that day.
Investors continued to mop up metal and cement stocks. Metal stocks like Hindalco, Hindustan Zinc, Sterlite Industries and Madras Aluminium spurted as global copper and zinc prices hit the roof on the London Metal Exchange due to strong demand and on tight supplies, amid supply disruptions. Back home, domestic copper, aluminium, zinc and steel makers had raised prices from the beginning of April 2006.
Select cement stocks continued to move up on the back of firm cement prices and strong demand for the product. In most of the regions, cement prices are ruling near record highs. ACC unveiled robust Q4 results on 12 April and it also issued a positive outlook. ACC's Q1 March 2006 net profit has jumped 42% to Rs 235.48 crore from Rs 165.52 crore in Q1 March 2005. Top line growth led bottom line growth. Net sales rose 19% to Rs 1,327.52 crore (Rs 1,113.35 crore).
Reliance Industries firmed up further, ahead of the opening of the initial public offering (IPO) of its subsidiary Reliance Petroleum (RPL), on 13 April 2006. The IPO was sold out within minutes of opening on 13 April. The IPO received a boost after Chevron Corp., said a day ahead of the opening of the issue that it was spending $300 million to buy 5% in the company.
Satyam Computer announced that its board will consider a bonus issue along with Q4 March 2006 results on 21 April 2006. Earlier, Infosys had announced that it will consider bonus issue along with Q3 results on 15 April.
Cipla declined sharply in a weak market. The stock had spurted over the past few days ahead of the company's record date for a liberal 3:2 bonus issue.
Two telecom service providers VSNL and MTNL, too, witnessed sell-off in a weak market. Both these stocks had spurted in the past few days.
Car major Maruti Udyog (MUL) firmed up on Friday after the company announced its intention of acquiring Suzuki Motors 30% stake in a joint venture car project Maruti Suzuki Automobile India (MSAL). According to an agreement in September 2004, MSAIL was set up as a subsidiary to operate a new car plant in Manesar in Haryana, which will initially have a capacity of 1,00,000 cars per year.
For the 3-trading days truncated week ended 13 April 2006, Sensex plunged 352.21 points or 3% to settle at 11,237.23. The S&P CNX Nifty lost 109.30 points or 3.1% to 3,345.50. The market remained closed on Tuesday 11 April and it remains closed on Friday 14 April.
A sell-off has gripped the bourses since 7 April 2006. On 7 April, the Sensex had lost 157 points in highly volatile trading on rumours that Sebi had banned 11 foreign institutional investors from the market, which the regulator denied later. After recouping some of the loss on the next trading session, a major sell-off sharply pulled the Sensex down on 12 April. It tanked 307 points on that day. Heavy selling by FIIs in both cash and futures markets and a move by stock exchanges to raise margins on share transactions by about 250 basis points, from April 17 also forced investors to trim their positions. Selling continued on 13 April as the Sensex lost 119 points in a highly choppy trading session. The barometer index swung over 1,000 points in intra-day trade on that day.
Investors continued to mop up metal and cement stocks. Metal stocks like Hindalco, Hindustan Zinc, Sterlite Industries and Madras Aluminium spurted as global copper and zinc prices hit the roof on the London Metal Exchange due to strong demand and on tight supplies, amid supply disruptions. Back home, domestic copper, aluminium, zinc and steel makers had raised prices from the beginning of April 2006.
Select cement stocks continued to move up on the back of firm cement prices and strong demand for the product. In most of the regions, cement prices are ruling near record highs. ACC unveiled robust Q4 results on 12 April and it also issued a positive outlook. ACC's Q1 March 2006 net profit has jumped 42% to Rs 235.48 crore from Rs 165.52 crore in Q1 March 2005. Top line growth led bottom line growth. Net sales rose 19% to Rs 1,327.52 crore (Rs 1,113.35 crore).
Reliance Industries firmed up further, ahead of the opening of the initial public offering (IPO) of its subsidiary Reliance Petroleum (RPL), on 13 April 2006. The IPO was sold out within minutes of opening on 13 April. The IPO received a boost after Chevron Corp., said a day ahead of the opening of the issue that it was spending $300 million to buy 5% in the company.
Satyam Computer announced that its board will consider a bonus issue along with Q4 March 2006 results on 21 April 2006. Earlier, Infosys had announced that it will consider bonus issue along with Q3 results on 15 April.
Cipla declined sharply in a weak market. The stock had spurted over the past few days ahead of the company's record date for a liberal 3:2 bonus issue.
Two telecom service providers VSNL and MTNL, too, witnessed sell-off in a weak market. Both these stocks had spurted in the past few days.
Car major Maruti Udyog (MUL) firmed up on Friday after the company announced its intention of acquiring Suzuki Motors 30% stake in a joint venture car project Maruti Suzuki Automobile India (MSAL). According to an agreement in September 2004, MSAIL was set up as a subsidiary to operate a new car plant in Manesar in Haryana, which will initially have a capacity of 1,00,000 cars per year.