Friday, September 02, 2005

FII inflow, oil price hold key


Inflow from FIIs and mutual funds will prove the key. There has been a pick up in FII inflow in the past few days. The pick up in inflow was instrumental in triggering the solid rebound on the bourses last week. FIIs bought shares worth a net Rs 313 crore on Thursday (1 September 2005) – the day the Sensex climbed 70 points. They bought shares worth a net Rs 371.40 crore on Wednesday (31 August 2005) – the day when the Sensex rose 60 points. On Tuesday (30 August 2005) when the Sensex had surged 110 points, FIIs had bought shares worth a net Rs 258 crore. Oil prices are likely to remain a major focal point as they hover close to the record high of $ 70.85 set on 30 August. Further gains could worry investors. A hike domestic retail prices of petrol and diesel is imminent following a surge in global crude oil prices. Stock specific activity remains robust. Select stocks are witnessing sustained buying interest. Investors in the Asian region will also be keeping a close watch on a FTSE Country Classification Committee meeting on 8 September on whether to upgrade South Korea and Taiwan markets to developed market status from emerging market status. This will have repurcussions for Indian market. The classification of South Korea and Taiwan to developed markets status will augur well for Indian market as it will mean that India will get a greater share of FII inflows to Asian emerging markets.

Hopes of a pick up in festive sales drive two-wheeler scrips into top gear


Motorcycle makers marched ahead today following expectations that festive demand will prop up sales following a near normal monsoon this year. Bike major Hero Honda rose nearly 3% to Rs 684, Bajaj Auto gained 3% to Rs 1,502, TVS Motor advanced 5% to Rs 82.65 and LML gained 4.7% to Rs 56.75. 1.8 lakh shares got traded in Hero Honda, 24,669 shares changed hands in Bajaj Auto, 4.6 lakh shares got traded in TVS Motor and 5.8 lakh shares changed hands in LML. Two-wheeler shares had gained on Thursday after the companies reported a surge in bike sales for August 2005. Bajaj Auto rose nearly 3% to Rs 1, 455.85 and Hero Honda gained 2.7% to Rs 664.35. The crucial monsoon rains were 94% percent of the long-period average in the first three months of the season starting in June. The festive season begins from October which is followed by marriage season since January. Given that rural demand is a key demand driver for two-wheeler firms, there is optimism that sales will prove buoyant in the coming months following good rains.
Hero Honda notched up sales of 2.46 lakh bikes in August 2005 – a growth of 28.5% compared to sales of 1.91 lakh in August 2004. Bajaj Auto's total vehicle sales in August leaped up 34 percent to 186,802 units from 139,743 units a year earlier. The company said sales of motorcycles mounted up 40 percent to 149,415 units from 106,745 units, while sales of all two-wheelers spurted 37 percent to 164,020 units from 119,895 units. TVS Motor's total two-wheeler sales moved up 15% in August 2005 to 1.03 lakh units compared to 89,500 units in August 2004. Motorcycle sales zoomed up 22% to 59,675 units from 49,020 units.

Liberal bonus, dividend bounty help Phoenix Mills fly high


Phoenix Mills added on 2% to Rs 29,597.80 following the company's coming up with a virtual bounty for shareholders in the form of a 100% dividend and highly liberal 4:1 bonus issue. 2% is the daily circuit filter for the scrip. 290 shares changed hands in the counter on BSE by late trading. The stock made ground ever since the company announced on 26 August 2005 that its board was contemplating a 10-for-1-share split and bonus issue on 1 September 2005. From Rs 26, 282.10 on 25 August 2005, the stock spiraled up 10.4% to Rs 29,017.45 by 1 September 2005 on the eve of the announcement. The stock has been going from strength to strength in the past one year as property prices in Mumbai scaled new heights. 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. Phoenix Mills has its mill located at Lower Parel in Mumbai.
Besides a 4:1 bonus issue and dividend of Rs 100 per share (100%), the company's board has also sanctioned a 10-for-1 stock split. The current face value of Phoenix Mills' share is Rs 100. Following the stock split, the face value will come down to Rs 10.

Liberty Shoes, Pantaloon Retail rally on pact for footwear retailing


Liberty Shoes jumped 10% to Rs 362.50 and Pantaloon Retail rose 4% to Rs
1,767 after the two companies said they will set up a JV in footwear
retailing. 37,314 shares changed hands in Liberty Shoes and 28,887 shares
changed hands in Pantaloon Retail. The Liberty Shoes stock had spurted in
the past three trading sessions ahead of the announcement and the Pantaloon
Retail stock had bounced back from the lower level on Thursday (1 September
2005) on the eve of the announcement. Liberty Shoes jumped 19.5% in three
trading sessions to Rs 329.55 on 1 September 2005 from Rs 275.75 on 29
August 2005. Pantaloon had gained 8.8% in a single trading session on 1
September 2005 to Rs 1,696.65. Pantaloon Retail will hold a majority 51%
stake in the new joint venture retailing firm and Liberty Shoes will have a
49% stake. Pantaloon will invest Rs 12.75 crore for a 51% stake and Liberty
Rs 12.25 crore for a 49% stake. Liberty Shoes (LSL) had already turned
aggressive in footwear retailing in recent years to tap the retail boom The
company along with its subsidiary Liberty Retails Revolutions (LRRL).
Currently the LRRL owns 11 stores throughout India, which includes two
stores at Mumbai, one store each at Chennai, Kolkata and Hyderabad, besides
having its presence in leading chain stores at Pune, Banglore and Hyderabad.
The company has planned to increase its retail presence from the existing 11
stores to 39 stores by FY 2006. Over the years, Pantaloon Retail transformed
itself into a broader retail major with retail store brands like Pantaloon,
Big Bazaar and Food Bazaar. While Big Bazar, a no-frills chain store, caters
to price-sensitive customers, Food Bazaar is the food and grocery retailing
format of the company.

Tata Motors drives up on impressive August sales


Tata Motors leaped up 5.6% to Rs 496 after the company turned out a rise in
sales for the month of August 2005. Hopes of a cut in excise duty on small
cars following a hint by Finance Minister in this regard on Thursday, too,
aided the rally in the counter. 5.8 lakh shares changed hands in counter on
BSE by afternoon trade. The stock had gained 1.4% to Rs 469.70 in a broad
rally in auto shares. After a solid surge during late June 2005 to early
August 2005, the stock had come sharply off the higher level in August 2005
as record high global crude oil prices weighed on some of the auto stocks.
From a peak of Rs 526.90 on 2 August 2005, the stock tumbled to a low of Rs
462.85 by 31 August 2005. Earlier, the stock had spurted to a high of Rs
526.90 on 2 August 2005 from a level of Rs Rs 418 to Rs 425 in late June
2005. For August 2005, Tata Motors’ total vehicle sales climbed 20% to
36,205 units from 30,113 units a year earlier. Exports more than doubled to
5,256 units from 2,465 units. Sales commercial vehicles rose 25 percent to
17,070 units from 13,682, while sales of cars and utility vehicles fell 0.6
percent to 13,879 units. For the fourth quarter ended March 2005, Tata
Motors' net profit grew by 32.7% to Rs 388.2 crore, from Rs 292.5 crore in
the comparable previous quarter. Total income increased to Rs 5,368.5 crore
during the reporting quarter, against Rs 4,152.4 crore in the year-ago
period. Tata Finance, which is mainly into auto finance, is being merged
with Tata Motors. The merger is the first step in Tata Motors' plan to build
its strong captive-financing unit on similar lines with most international
players.

Jindal Drilling rallies


Jindal Drilling jumped 12.8% to Rs 300.90 after the company made a slew of
announcements such as consolidation of drilling business, proposal for
acquisition of an offshore rig and participation in tenders in Sudan, Middle
East and other countries. 7.1 lakh shares were traded in the counter on BSE
by mid-afternoon trade. The stock had moved strong in the past few months.
From a level of Rs 90-Rs 97 in early/mid February 2005, the stock zoomed up
to Rs 266.55 by 1 September 2005. Jindal Drilling today said it is planning
to consolidate and restructure its presence in the drilling business by
merger of some of the group companies with itself. The merger could entail
synergies as these subsidiaries are already operating in the same field. The
other business divisions would be hived off, helping the company emerge as
one completely focussed on the drilling business.
The company is also evaluating options like acquisition of an offshore rig
considering the robust potential in the wake of the sustained increase in
demand for oil and gas both domestically and globally. The company is also
participating in tenders in Sudan, Middle East and other countries for
offshore drilling operations for which it may decide on acquiring a land
rig. The land rig can also be utilised for offshore drilling operations
within India with private sector E&P companies such as Carims Energy, GSPC
and HOEC, Jindal Drilling said. Jindal Drilling is in the business of
offshore drilling, providing drilling services to the hydrocarbon sector in
India. The company currently operates a jack-up drilling rig under a
long-term (of three-year duration) contract awarded by ONGC in the western
offshore waters of India. The rigs are taken on charter from international
companies and, therefore, the company does not have to invest in such high
cost assets. Besides providing drilling services, the company presently has
10 mud logging units, which are being utilised in providing mud logging
services to the oil & gas sector.

Liberty Shoes, Pantaloon Retail rally on pact for footwear retailing


Liberty Shoes jumped 10% to Rs 362.50 and Pantaloon Retail rose 4% to Rs
1,767 after the two companies said they will set up a JV in footwear
retailing. 37,314 shares changed hands in Liberty Shoes and 28,887 shares
changed hands in Pantaloon Retail. The Liberty Shoes stock had spurted in
the past three trading sessions ahead of the announcement and the Pantaloon
Retail stock had bounced back from the lower level on Thursday (1 September
2005) on the eve of the announcement. Liberty Shoes jumped 19.5% in three
trading sessions to Rs 329.55 on 1 September 2005 from Rs 275.75 on 29
August 2005. Pantaloon had gained 8.8% in a single trading session on 1
September 2005 to Rs 1,696.65. Pantaloon Retail will hold a majority 51%
stake in the new joint venture retailing firm and Liberty Shoes will have a
49% stake. Pantaloon will invest Rs 12.75 crore for a 51% stake and Liberty
Rs 12.25 crore for a 49% stake. Liberty Shoes (LSL) had already turned
aggressive in footwear retailing in recent years to tap the retail boom The
company along with its subsidiary Liberty Retails Revolutions (LRRL).
Currently the LRRL owns 11 stores throughout India, which includes two
stores at Mumbai, one store each at Chennai, Kolkata and Hyderabad, besides
having its presence in leading chain stores at Pune, Banglore and Hyderabad.
The company has planned to increase its retail presence from the existing 11
stores to 39 stores by FY 2006. Over the years, Pantaloon Retail transformed
itself into a broader retail major with retail store brands like Pantaloon,
Big Bazaar and Food Bazaar. While Big Bazar, a no-frills chain store, caters
to price-sensitive customers, Food Bazaar is the food and grocery retailing
format of the company.

Sensex above 7900 mark


After opening firm, the Sensex forged ahead to achieve an all-time record
high of 7,928 points. However, it witnessed selling pressure later, and
dipped into the red. The low for the Sensex so far today was 7836.34 points.
At 12:22 IST, the BSE Sensex was 28 points higher at 7904 points. The Sensex
is showing very volatile movements, and has so far seen a swing of about 92
points on an intra day basis. Total turnover by this point of time amounted
to Rs 1,996 crore. The advance-decline ratio was negative, with 1,247 shares
trading higher and 1,302 shares trading lower. About 47 stocks remained
unchanged. Among Sensex stocks, 13 were trading in negative and 17 in the
positive. Tata Motors was the biggest gainer in the Sensex, advancing 5.11%
to Rs 493.70, on volumes of 4.84 lakh shares. HPCL was the biggest loser,
down 1.58% to Rs 292.00, on volumes of 96,298 shares. Auto sector was firm
on the back of healthy sales figures reported by auto companies for the
month of August. Maruti (up 4.74% at Rs 507.25), Bajaj Auto (up 2.35% at Rs
1,490), Hero Honda (up 3.56% to Rs 688), Ashok Leyland (up 1.75% to Rs
29.40), TVS Motors (up 4.35% to Rs 85), and LML (up 6% to Rs 57.45) all
moved higher. The CNX Midcap Index was up 0.61%, the BSE Metal index was up
1.46%, the BSE Auto Index was up 2.3%, and the BSE healthcare index was up
0.65%. Side counters Autolite, Om Metals, Sterling Biotech, Raj Packing, VBC
Ferro Alloys and MM Rubber all surged 20% each. Nakoda Textiles, Vintron
Info, and Surana Industries, all lost close to 10% each. Jain Irrigation was
the top traded counter in terms of turnover, at Rs 335.95 crore; followed by
Spicejet, at Rs 50.94 crore; and HT Media, at Rs 45.48 crore.

Free promotion
Indian Stock Quotes Symbol?