17 - June - 2005

The BSE Sensex closed above 6900 and the NSE Nifty closed at 2,123 . The June Futures closed at 2108 thereby narrowing thebasis by about 15 points from the highs of 20. The rupee was trading at 43.56 to the dollar.

Markets moved up during the final hour of trade as some buying was witnessed in index heavyweights. The Indian markets opened with caution and remained rangebound in the fore-noon . However, profit booking soon set in, which took the indices deep in the red. Bottom fishing during the closing hours, however, managed to take the Sensex back to the positive territory, with the Nifty still reeling in the red. The monsoons are still a concern as they are yet to arrive in most parts of India.

HDFC (2%), Reliance (2%) and VSNL (1%) led the Sensex stocks today. Banking stocks closed deep in the red and major losers here included ING Vysya Bank (4%), Centurion Bank (2%) and Kotak bank (1%). ICICI Bank and HDFC,the housing finance major, however managed to buck the trend and close with 1% and 2% gains respectively. Gains in these stocks were seemingly a result of reports that the two major lenders with respective shares of 31% and 27% of the home loan market have increased their lending ratesby 50 basis points.

The Reliance Industries counter was at a 52 week high.

The markets are still above 2110 on the NIFTY which is the crucial level for the markets to maintain it's momementum according to analysts. However,a section of the marketmen feel that the markets are now in fatigue and will search for fresh triggers to break out in either diretion.

Top Gainers

HDFC 858.75 1.72%
RELIANCE 600.20 1.69%
M&M 556.05 1.47%
VSNL 227.95 1.27%
WIPRO 743.80 1.26%

Top Losers

TATA POWER 374.05 -2.31%
GRASIM 1,092.05 -2.08%
TATA MOTORS 419.20 -1.87%
SBI 667.70 -1.80%
COLGATE 231.15 -1.22%

END OF DAILY UPDATE : 17-JUNE-2005