22 - June - 2005

There is no stopping the Indian equity markets and the shorts are trapped...and as history has shown us, the markets will correct just when all shorts have closed out all their positions.

The NSE NIFTY closed at 2187(up by 17 points) and the June futures closed the day at 2166. The BSE Sensex closed at 7,145 (up 69 points).The rupee was trading at 43.53 to the dollar.
Markets remained strong during the final hour of trade as the Sensex flirted with the 7,150 levels.

The BSE Sensex breached its all-time high and was trading in an uncharted territory.Investors need to be very cautious at these levels and should book profits at all levels. They might lose out on the last few points of this rally...but it is always better tobe safe than sorry. However, it does not mean that the markets will correct all all hell will break lose.

L&T (3%), HDFC (3%) and Cipla (2%) led the gains on the Sensex today. Interestingly, despite the strong gains in the markets, the advance-decline ratio of BSE stocks was skewed towards the latter, at the rate of 1:1.8. The ratio for Sensex stocks was, however, 3:1 in favour of the advances. Major gainers in the pharma pack included Glenmark (7%), Cipla (3%) and Nicholas Piramal (2%). TCS' led the gains in the software arena and closed over 2% up. Gains were also seen in MphasiS (2%), Satyam and Wipro (both 15 up).

Where will the markets stop to breath...It will happen....sooner...rather than later....!!!

Top Gainers

ZEE TELE 151.70 5.35%
M&M 584.40 3.74%
HDFC 875.00 3.48%
CIPLA 313.95 2.99%
L&T 1,136.75 2.98%

Top Losers

HDFC BANK 587.15 -2.56%
MTNL 117.30 -2.13%
SAIL 52.80 -1.68%
BHEL 853.00 -1.59%
TATA CHEM 170.00 -1.25%

END OF DAILY UPDATE : 22-June-2005