15 - June - 2005

The BSE Sensex closed at 6,907 (up 47 points) and the NSE Nifty closed at 2,127 (up 15 points). The June futures continued to trade a a discount and closed the day at 2109.The rupee was trading at 43.64 to the dollar.

Markets managed to hold on to their gains during the final hour of trade as the Sensex crossed the 6,900 mark and closed above the mark. The rain Gods continued to disappoint the markets. However, the mood in the Indian equity markets remains bullish, as can be seen in today's trades. Carrying on from the final hour surge that was witnessed yesterday, the markets opened today on a positive note.

Stocks from the software sector were the major gainers and contributed significantly to the positive modd today. Major gainers included HCL Infosystems and i-flex (both 4% up) and Wipro (1%). Gains in the banking products major, i-flex, was seemingly fallout of reports that the company has signed up with GE Capital, whereby the latter will use the former's core banking solution, Flexcube, for its worldwide retail banking operations.

Bharti Tele's stock was the lead gainer on the Sensex as it closed over 5% up. Gains in the stock were a likely response to reports that the telecom ministry is in the final stages of lifting the foreign direct investment cap on the sector from 49% to 74%. Gains in the stock were also on account of news that the company has signed a US$ 250 m deal with Ericsson, whereby the latter will set up and maintain Airtel's GSM cellular network across 2,000 towns in India. The first phase of this expansion is scheduled to commence in July 2005.

The markets continue to rally ahead despite calls of correction from several quarters. It seems that the market is now searching forreasons for the rally...and after crossing 2120...a major resistance...Will the markets steam ahead...?? or will the markets extend a major correctionjust when shorts have covered...??? That's the million dollar question.

Top Gainers

BHARTI TELE 239.75 5.41%
GAIL 221.45 3.02%
GRASIM 1,118.25 2.59%
TATA POWER 388.75 2.24%
DR.REDDY 737.10 1.96%

Top Losers

ABB 1,310.15 -1.04%
SHIP. CORP. 147.70 -0.97%
DABUR 130.25 -0.91%
CIPLA 288.20 -0.76%
NALCO 144.80 -0.72%

END OF DAILY UPDATE : 15-JUNE-2005