Friday, August 26, 2005

Sensex scores small gain in volatile trade


The Sensex edged slightly higher in volatile trade today on the back of
gains in cement, auto and construction scrips. Gains in TCS, ITC and steel
major Tata Steel, too, aided the up move.
Index heavyweight Reliance Industries rose slightly in volatile trade.
Software major Infosys failed to sustain the higher level. Stocks like HDFC
Bank, ONGC, Hindalco, Wipro, and Bhel slipped.
Textile scrips were in demand. IT services and BPO major Mphasis BFL bounced
back after the recent setback in the stock caused by Barings' decision to
put off its stake sale in the company.
The broad market was strong as gainers outpaced losers by a ratio of 2.3:1.
Stocks like Patel Engineering, Honeywell Automation, Chembond Chemicals,
Kinetic Engineering, Wendt, NRC, Dagger-Forst Tools, Biopac India, Pioneer
Embroideries, Novopan India, Alok Industries, Alphageo, Jain Studios,
Mid-Day Multimedia, Phoenix Lamps, IFCI, Essar Oil, Bombay Dyeing, and
Panjon surged.
Scrips such as Goodlass Nerolac, Hexaware, NDTV, Kotak Mahindra, Bank,
Premier Auto, Arvind Mills, Matrix Laboratories, Divi’s Laboratories, and
Bharat Forge were in demand.
Stocks like India Glycols, Flex Industries, McDowell, Mid-Day Multmedia,
Ferro Alloys, IFCI, and Era Construction rose on decent to high volume.
The 30-share BSE Sensex gained 19.80 points or 0.26% to 7,680.22. The S&P
CNX Nifty gained 2.50 points to 2,357.05
The market opened on a firm note and jumped about 60 points in early trade.
It later came sharply off the higher level and slipped into the red. The
Sensex later recovered from the lower level. For the day, the Sensex swung
87.90 points between a low of 7,644.41 and high of 7,732.31.
Software major TCS (up 3.5% to Rs 1,368) was the biggest gainer among Sensex
constituents. 3.2 lakh shares changed hands in the counter on BSE.
Firm cement prices and expectation of strong July dispatches spurred cement
scrips. ACC (up 3.4% to Rs 474.05), Gujarat Ambuja Cements (up 2.9% to Rs
65.25), UltraTech Cement (up 3.5% to Rs 422), Birla Corporation (up 2.3% to
Rs 216.80) and Madras Cement (up 1.7% to Rs 1,280) all climbed.
Auto shares were in demand on expectation of strong sales figures for the
ongoing month of August 2005. Ashok Leyland jumped 5.5% to Rs 27.80, car
major Maruti Udyog (MUL) rose 2.3% to Rs 473, M&M gained 2% to Rs 728.50 and
TVS Motor gained 2% to Rs 77.30.
Force Motors (erstwhile Bajaj Tempo) jumped 10% to Rs 334. 54,543 shares
chagned hands in the counter on BSE.
NTPC gained 2.2% to Rs 99.15, Satyam Computer rose 2% to Rs 508.40, and
steel major Tisco rose 1.8% to Rs 390.30.
Notwithstanding firm global crude oil prices ONGC lost 1.7% to Rs 975.55.
2.05 lakh shares changed hands in the counter on BSE.
Construction scrips extended gains after the first ever Outcome Budget set a
proposal for vast expansion of the highway network in the country. Patel
Engineering jumped 10% to Rs 242.05, Madhucon Projects rose 8% to Rs 878,
JMC Projects gained 5% to Rs 92.70, Gammon India gained 3.9% to Rs 376, Era
Construction gained 3.8% to Rs 148, INRCL Infrastructures rose 2.7% to Rs
835, Hindustan Construction gained 2.4% to Rs 885 and Nagarjuna Construction
gained 2% to Rs 241.
Mphasis BFL jumped 7.5% to Rs 257. 2.2 lakh shares changed hands in the
counter on BSE.
Essar Oil gained 10% to Rs 45.75 after its board approved a proposal to
raise up to $ 300 million by issuing convertible financial instruments in
overseas market on a preferential basis. 21.5 lakh shares changed hands in
the counter on BSE.

Graphite India moves strong on raising FII investment limit


Graphite India is currently up 3.87% to Rs 282 on volumes of 21,986 shares.
The stock hit a high of Rs 290 and low of Rs 271 in intra day trade.
The counter rallied from the close of Rs 200.1 on 7 July 2005 to close at a
high of Rs 284 on 22 August 2005.
Graphite India’s board has approved to raise $50 million through the issue
of securities in India or in the international market as per the release
issued by the company to the BSE.
The board also approved hike in the FII limit from 24% to 40% of the paid-up
equity share capital. The release added that the equity capital would
increase to Rs 40 crore from Rs 35 crore following the company's decision to
reclassify the existing preferential capital of Rs 5 crore into equity
capital of Rs 5 crore (50 lakh equity shares of Rs 10 each).
Graphite India, the KK Bangur Group company, is the largest carbon electrode
maker in south Asia. It manufactures graphite electrodes, anodes,
miscellaneous graphite and carbon products. Exports account for up to 58-60%
of the company’s turnover.
The company exports its products to around 50 countries across the world.
The rebound in the steel industry, which buys most of Graphite India’s
products, also augurs well for the company.
For the quarter ended June 2005, the company reported a 4.56% rise in net
profit to Rs 7.34 crore (Rs 7.02 crore). Net sales declined 5.05% to Rs
114.61 crore (Rs 120.70 crore).

Stock split, bonus proposal boost Phoenix Mills


Phoenix Mills rose 2% to Rs 26,807.70 after the company said its board would
consider a 10-for-1-share split and bonus issue.
2% is the daily circuit filter for the stock. 60 shares changed hands in the
counter on BSE.
The stock hit the roof in the past one year as property prices in Mumbai hit
the roof. From a level of Rs 1,800-Rs 2,000 in July 2004, the stock price
rose manifold. Recently, National Textile Corporation (NTC) sold its mill
land in Mumbai at a hefty rate
The current face value of Phoenix Mills is Rs 100. Following the stock split
the face value will reduce to Rs 10.
The company’s board will meet on 1 September 2005 to consider bonus issue.
The board will also consider an issue of global depositary receipts,
American depositary receipts or covertible bonds.

IndusInd Bank gains on reports of Hinduja Group hiking stake


IndusInd Bank rose 3.68% to Rs 77.5 on reports that the Hinduja Group was
planning to up its stake in the company to 40%.
Volumes amounted to 3.92 lakh shares on the counter on BSE. The stock
earlier went on to hit Rs 79 on the higher side, after the reports. Rs 74.4
was the low for the day so far.
The stock has seen a decent rise form Rs 50.25 on 2 May 2005, to Rs 82.8 on
19 August 2005.
The spurt today comes on the back of newspaper reports that the Hinduja
Group plans to raise its stake in IndusInd Bank to 40% from 31.3% held
currently.
Meanwhile, press reports also state that IndusInd Bank plans $300 million
real estate fund.
IndusInd Bank, a Hinduja Group new-generation private-sector bank, has
capital funds of over Rs 1,200 crore as on 31 March 2005. Driven by
technology, IndusInd Bank has taken steps to establish and upgrade its
support systems for the introduction of retail banking products and
alternative delivery channels, while continuing to expand its network of
branches.
The bank, as on 31 March 2005, has 115 branches, 9 extension counters and
195 ATMs, spread over 95 geographical locations in 23 states as against 61
branches, 12 extension counters and 147 ATMs spread over 50 geographical
locations in the previous year.
For the quarter ended June 2005, the bank reported a 11.3% fall in net
profit to Rs 40.36 crore (Rs 45.48 crore). Net operating income however was
higher by 3.7% to Rs 349.86 crore (Rs 337.30 crore).

Liberal bonus spurs Gangotri Textiles


Gangotri Textiles climbed 3.7% to Rs 220 following the company’s board
coming out with liberal 1:1 bonus and 2-for-1 stock split decisions.
72,526 shares were traded in the counter on BSE by the first two hours of
trade.
The stock witnessed a sharp upswing since early this month. It rose 8% on 18
August 2005 to Rs 220.55 after the company said its board will consider
capitalisation of reserves and stock split on 25 August 2005. The stock made
headway ahead of the 18 August announcement. From Rs 139.25 on 10 August
2005, the stock leaped up 46% to Rs 203.75 on 17 August 2005. It came off
the higher level after the sharp surge to settle at Rs 212.10 by 25 August
2005.
Besides a liberal bonus and a 2-for-1 stock split, the company’s board has
given its positive verdict for a further issue of equity shares. This could
come in the form of a public issue, rights issue or through issue of equity
warrants.
The Rs 180-crore turnover company, Gangotri Textiles, which has chalked up
plans to strengthen its `Tibre’ apparel brand is on an expansion cum forward
integration project covering spinning, weaving, processing and garmenting
facilities at an outlay of Rs 351 crore.
For Q1 June 2005, Gangotri Textiles reported 20.4% fall in net profit to Rs
2.14 crore (Rs 2.69 crore). Net sales declined 21.5% to Rs 35.36 crore (Rs
45.08 crore). The company had attributed the fall in turnover to drop in
yarn realisation.

United Western Bank proves firm ahead of board meet for bonus, rights issue


United Western Bank is currently up 6.73% to Rs 74.5 on volumes of 1.11 lakh
shares.
The intra-day high so far was Rs 77.95 and the intra-day low was Rs 70.
The bank stock witnessed a rally ever since it closed at Rs 41.95 on 30 June
2005, and streaked up to Rs 73.10 on 19 August 2005. This was largely
because of expectations of a liberal bonus issue from the company.
United Western Bank will hold a board meeting today to consider an issue of
bonus shares as well as a rights issue.
If the bonus issue materialises, it will be the first bonus issue ever from
the the bank's stable. The latest equity capital of the bank is Rs 29.89
crore. Its reserves are Rs 152.37 crore. The latest book value is Rs 60.98
per share.
United Western Bank is among the largest private sector commercial banks in
India. Its network comprises 230 branches spread over 47 districts in nine
states. These come under the control of five zonal offices located at
Mumbai, Pune, Kolhapur, Jalgaon, and Nagpur.
The bank's portfolio of services includes retail banking, accepting deposits
and lending money, leasing and hire-purchase, foreign exchange, letters of
credit and bank guarantees, credit cards, investment assistance, and
merchant banking.
For the quarter ended 30 June 2005, the bank turned out a hefty 62.26% jump
in net profit to Rs 8.47 crore (Rs 5.22 crore). Total income went up
marginally though, by 0.23% to Rs 141.76 crore (Rs 141.43 crore).

Onward Technologies moves onwards


Onward Technologies jumped 5% to Rs 111.05 on media reports that it will
become a global support and consulting services partner of US based
networking software major Novell.
6,200 shares changed hands in the counter on BSE by the first few minutes of
trade.
The stock rose 5% on Thursday (25 August 2005) to Rs 105.80 after Novell
said that it is buying out Indian partner Harish Mehta’s 50% stake in Onward
Novell. Onward Novell is Novell’s sales and distribution subsidiary in
India. Onward Technologies is promoted by Harish Mehta – an IT entrepreneur.
Onward Technologies' scrip leaped up in the past few days. From a recent low
of Rs 85.20 on 8 August 2005, the stock managed to reach a high of Rs 109.90
by 22 August 2005. It had dropped to Rs 100.80 by 24 August 2005.
Reports suggest that Onward Technologies should generate business worth $ 20
million over the next few years under the new pact with Novell. Onward
Technologies attains bulk of its revenues from product engineering services
to automobile companies. The company designs and tests components and
products on software and these designs are used to manufacture products.

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