Monday, August 22, 2005

Volatility marks Sensex on opening


The bourses characterised a degree of volatility in early trade, and the
Sensex fluctuated between positive and negative territory. After opening on
a positive note, the Sensex slipped into the red within minutes of
commencement of trading before recovering from the lower level later.
Select side counters surged in early trade. Stocks like India Foils, ABG
Heavy Industries, Organic Coatings, Fortune Informatics, C J Gelatine,
Simple Casting, NOCIL, Pritish Nandy Communications, Blow Plast, Sai Service
Station, Lakshmi Precision Screws, SIC Agencies Corporation, South Indian
Bank, and South East Asian Marine surged in early trade.
At 10:22 IST, the Sensex was up 9 points at 7,760. It moved 52.36 points in
early trade between a low of 7,718.47 and high of 7,770.83.
The S&P CNX Nifty was up 4.90 points or 0.2% to 2,372.75
Pivotals witnessed a mixed trend. While some pivotals were steady to
slightly up, select other pivotals were down slightly in early trade. Pharma
pivotals were subdued.
Bharti Tele-Ventures rose 0.7% to Rs 308. 25,758 shares changed hands in the
counter on BSE.
Tata Steel gained 0.8% to Rs 396. 1.5 lakh shares changed hands in the
counter on BSE.
Index heavyweight Reliance Industries was up slightly by 0.11% to Rs 700.
3.4 lakh shares changed hands in the counter on BSE.
Cigarette major ITC gained 0.6% to Rs 1,698, Wipro rose 0.7% to Rs 367, Tata
Motors gained 0.5% to Rs 479.50, and L&T rose 0.4% to Rs 1,330.
ONGC lost 0.2% to Rs 987.50
Cipla lost 0.7% to Rs 354.90, Ranbaxy shed 0.7% to Rs 538 and Dr Reddy’s
Laboratories lost 0.3% to Rs 822.
Dishman Pharmaceuticals jumped 7.9% to Rs 753 after the company said its
board will consider stock split.

Summary: Side counters stand out as Sensex dips


Weakness in pivotals triggered a reversal in Sensex in the second half of
the trading session. Weakness stemmed soon after trading in the NSE’s F&O
segment began from 13:00 IST. Earlier during the day, NSE had announced the
closure of the F&O segment trading due to technical snag.
Pivotals like Reliance Industries (RIL), State Bank of India (SBI), Tisco,
ACC, Tata Motors, ICICI Bank and Bhel witnessed selling pressure in the
second half of the trading session. Motorcycle major Hero Honda witnessed a
late rebound.
Select pharma and fertilisers shares were in demand.
Though market breadth was strong, it weakened in mid-afternoon trade. 1,513
stocks recorded gains on BSE as compared 1,072 scrips that declined. 56
scrips were unchanged. Earlier during the day, the breadth was much stronger
with more than 3 gainers for every loser.
A host of side counters spurted today. Stocks such as Abhishek Industries,
Andhra Cements, Insilco, India Foils, PNB Gilts, Fortune Financial Services,
Jindal Photo, Kilburn Chemicals, Sai Service Station, SRF, Gujarat Alkalies,
Birla VXL, Solectron Centum Electronics, Micro Technologies (India), IP
Rings, Ashapura, Biopac India, G P Electronics, Webel SI Energy, ABG Heavy
Industries, Kalindee Rail Nirman, Scandent Solutions Corporation, Sangam
India, Vesuvius, Astrazeneca Pharma India, JCT, Micro Inks, Oil Country
Tubular, Pioneer Embroideries, GHCL, Mid-Day Multimedia, HCL Infosystems,
OCL India, Tourism Finance Corporation, Forbes Gokak, GMM Pfaudler, Radico
Khaitan, and Hindustan Zinc rose between 5% to 20%.
Among others, stocks like Bank of Maharashtra, UCO Bank, LML, Nirlon, Bihar
Caustic, Indraprastha Gas, SIC Agencies Corporation, GTC Industries, and
India Glycols were in demand.
Scrips such as Abhishek Industries, Mangalore Chemicals, RCF, SRF, JCT, Oil
Country Tubular, Mid-Day Multimedia, MTZ Polyfilms, Swil, India Infoline,
VSNL, Bank of Maharashtra, GR Cables, GHCL, Insilco, Sterling Biotech, and
Birla VSL moved higher on decent to high volumes.
The 30-share BSE Sensex lost 30.16 points to settle at 7,750.60. It came
sharply off the day’s high of 7,845.96. The high was struck in early trades
when the market ruled firm. The S&P CNX Nifty lost 15.60 points or 0.6% to
2,367.85.
Tata Motors (down 2.6% to Rs 478), Tisco (down 2.4% to Rs 392.55), HDFC
(down 2.6% to Rs 902), Reliance Energy (down 2% to Rs 581.75), State Bank of
India (down 1.7% to Rs 791.55), Bhel (down 1.4% to Rs 1,059), ICICI Bank
(down 1.1% to Rs 491.90), and Bajaj Auto (down 1% to Rs 1,405) were all in
the slipstream.
ONGC dipped 1.2% to Rs 988. As per reports, Chinese energy company CNPC
International had agreed to acquire PetroKazakhstan Inc - a Canadian oil
company operating in central Asia. It may be recalled that ONGC, too, was in
the race to acquire PetroKazakhstan Inc.
Cellular services major Bharti Tele-Ventures (BTL) slipped 2.2% to Rs 305.
As per reports, BTL plans to spend about $ 1 billion in the business year to
March 2006 to expand coverage in the fast growing mobile market.
Index heavyweight Reliance Industries (RIL) edged lower by 0.8% to Rs
699.90. 17 shares were traded in the counter on BSE.
Wipro was trading at Rs 362.85 as against Friday’s cum-bonus closing price
of Rs 723.75.
Hero Honda climbed 3.8% to Rs 700. 32,572 shares changed hands in the
counter on BSE.
Pharma stocks were in demand. Cipla rose nearly 2% to Rs 356.70, Ranbaxy
gained 1.5% to Rs 542 and Dr Reddy’s Laboratories advanced 0.8% to Rs
826.85.

source: capital market

Rights issue proposal has Kinetic Engineering picking up pace


Kinetic Engineering is currently up 6.51% to Rs 135 on volumes of 23,449
shares.
Marketmen may have got wind of the forthcoming rights issue in advance. And
this is evident in the sharp spurt witnessed in the counter since 9 August
2005, when it was at Rs 102.4. It rose subsequently to Rs 127.90 on 18
August 2005.
Kinetic Engineering has announced that it will hold an Extraordinary General
Meeting (EGM) on 31 August 2005, inter alia, to take a decision on the issue
of up to 81.37 lakh equity shares of Rs 10 each for cash at a premium of Rs
30 per share on a rights basis in the proportion of 2 equity shares for
every 1 equity share held by equity shareholders of the company.
Kinetic Engineering will also consider a hike in authorised share capital of
the company from Rs 6 crore divided into 55 lakh equity shares of Rs 10 each
and 5 lakh unclassified shares of Rs 10 each to Rs 15 crore divided into 145
crore equity shares of Rs 10 each and 5 lakh unclassified shares of Rs 10
each by creation of 90 lakh equity shares of Rs 10 each and consequential
amendment in the Memorandum & Articles of Association of the company.
Kinetic Engineering, the Pune based Firodia Group company, manufactures and
markets the popular Kinetic mopeds, step throughs, the K4 ZX, scooterettes,
and the Kinetic Style. Of late, it has also moved into the area of
manufacturing motorcycles and gearless scooters. The company has a technical
collaboration with Hyosung Motors of Korea, a leading exporter of
motorcycles worldwide. The company plans to launch several new models in
collaboration, and also boost export sales.
For the quarter ended June 2005, the company experienced a reduction in net
loss to Rs 14.56 crore (net loss of Rs 18.66 crore). Net sales, however,
dropped a voluminous 30.89% to Rs 25.95 crore (Rs 37.55 crore).

L&T gained 2.3% to Rs 1,360 on the back of an overseas order win


A strong flow of orders in the past few months has set L&T’s stock soaring
in the same period. From Rs 944.25 on 19 April 2005, the stock went on to
peak at Rs 1,329.25 by 19 August 2005.
A healthy order book and the company’s restructuring of operations, which
involved the hive-off of the cement division, saw the stock trotting up in
the past one year or so. It rose from Rs 635.35 on 23 June 2004.
L&T has bagged an order from Nakheel, UAE, to construct a prestigious
residential property in Dubai. Out of the total contract size of Rs 450
crore, the value of the works for L&T is pegged at Rs 340 crore. The rest is
the value of works to be executed by subcontractors. The project involves
construction of Mogul Gardens-2 at Discovery Gardens located on Shaikh Zayed
Road, Dubai.
L&T has reported a 78% jump in Q1 June 2005 net profit to Rs 142.97 crore
compared to Rs 80.13 crore in Q1 June 2004. L&T’s total income rose 17.7% to
Rs 3,183.81 crore compared to Rs 2,703.37 crore in Q1 June 2004.
Meanwhile, L&T has decided to exit the tractor business by selling its stake
in a joint venture with Deere & Co in favour of its joint venture partner
Deere. L&T said it would focus on its core businesses of engineering and
construction, electricals and electronics and information technology.

Kajaria Ceramics rose 3.3% to Rs 260 after the company said its board would consider a stock split.


The stock spurted on the eve of the announcement. The scrip rose 6.8% on
Friday (19 August 2005) to a lifetime closing high of Rs 251.50.
The stock witnessed a solid surge during mid-April 2005 to mid-July 2005. It
underwent a correction in early August 2005, and after the correction, it
bounced back from the lower level later.
A meeting of the board of directors of the company is scheduled on 26 August
2005 to consider a 5-for-1 stock split. The board will also consider an
issue of GDRs or FCCBs up to $ 30 million for funding the capital
expenditure programme.
Kajaria Ceramics is the second largest player in the ceramic tiles market in
India, commanding a share of about 10% in the organised sector.
Aided by strong growth momentum in the construction sector, in general and
housing in particular, the domestic glazed ceramic tiles market, estimated
at around Rs 4,000 crore, is likely to grow at about 20% CAGR over the next
three years, according to analysts.
For Q1 June 2005, Kajaria Ceramics reported a 25.6% growth in net profit to
Rs 5.05 crore (Rs 4.02 crore). Net sales rose 8.4% to Rs 61.58 crore (Rs
56.80 crore).

Sah Petroleums Bonus Issue in ratio of 3:5


Sah Petroleums Limited has informed the Exchange that the BOD's of the
company in its meeting held on August 22, 2005, have approved the issue of
bonus shares in the ratio of 3:5 i.e. 3 bonus equity shares of Rs.5/- each
for every five existing fully paid equity shares of Rs.5/- each and also
approved an increase in authorised share capital from Rs.11.00 Crores to
16.00 Crores for the purpose of future issue of bonus shares, if any,
subject to approval of the shareholders at the ensuing Annual General
Meeting.

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