Monday, September 19, 2005

Sensex undergoes volatility

Volatility was witnessed in early trade today as the Sensex bounced back
from the lower level after declining sharply in opening trade. A recovery in
Reliance Industries, NTPC, Bharti Tele-Ventures, Tata Steel, ONGC and ICICI
Bank triggered a comeback from the lower levels for the barometer index.

But market breadth remained quite weak by early trade. It is quite unusual
to see a weak market breadth in early trades these days. Losers outpaced
gainers by a ratio of 2.6:1 on BSE by the first few minutes of trade.

At 10:29 IST, the Sensex was down 9 points at 8,435. The Sensex bounced back
from the day’s low of 8,376.12. The S&P CNX Nifty was down 4.20 points or
0.16% to 2,562.90

Hindalco gained 2.2% to Rs 163.40, and Hero Honda rose 1.8% to Rs 710.

Steel major Tata Steel gained 1.3% to Rs 434.80 after the company singed a
wage agreement on Sunday that covers over 10,500 employees.

A sharp surge in global crude oil price boosted ONGC. The stock gained 1.4%
to Rs 1,035. The stock hit a high of Rs 1,043 which is an all time high for
the scrip.

L&T gained 0.8% to Rs 1,391 after the company said Oil & Natural Gas
Corporation (ONGC) has entrusted a fast-track job of installation of
diversionary pipelines and associated platform modifications to a consortium
led by L&T with Global Industries Offshore LLC, USA.

ITC moved higher for the second day in a row on buying ahead of the record
date for bonus issue. The stock was up 0.6% to Rs 1,951.

A sharp surge in oil price hit auto stocks. Car major Maruti Udyog lost 2%
to Rs 578, Bajaj Auto shed 0.5% to Rs 1,669 and Tata Motors lost 0.4% to Rs

Though index heavyweight Reliance Industries (down 0.2% to Rs 763) was in
the red, the stock recovered from the lower level. It was off the day’s low
of Rs 755.35. 4 lakh shares changed hands in the counter on BSE.

Sensex ends just below 8450-mark

The Sensex opened the day with a positive gap of 20 points at 8399.51 on all
round buying interest. The sustained fall in crude oil prices over the last
few days, after these scaled above $70 per barrel last week, proved a major
trigger for the market. Oil prices fell nearly 3% on Friday. The Nymex US
light crude oil for October delivery shed $1.75 to close at $63 a barrel.
London Brent crude was down 22 cents to $62.88 per barrel.

The Dow Jones, too, provided cheer, gaining 83 points to 10,642. The Nasdaq
rose 14 points to 2,160 on Friday.

The BSE Sensex closed at 8444.84 today, indicating a gain of 63.88 points or
0.76% form its previous close.

The NSE Nifty closed at 2567.10 points, up 14.75 points from its previous

Around late afternoon, the Sensex hit a new all time high of 8461.10 . The
day’s low was 8382.96.

The BSE Midcap index jumped 0.96% and the BSE Small Cap index rose 0.83%,
indicating all round gains.

The Sensex has spiraled up 8.53% on a monthly basis from the close of
7780.76 points on 19 August 2005 till date.

Sector-wise, the BSE PSU Index (up 0.85%), the BSE Bankex (up 1.75%), the
BSE Oil and Gas (up 0.67%), the BSE Metal index (up 3.23%), the BSE FMCG
index (up 1.56%), the BSE Consumer Durables index (up 2.80%), all rose.
However, the BSE Tech index and BSE IT index ended marginally lower.

Among Sensex stocks, 17 ended in the positive and 13 were in the negative.

HPCL (up 4.1% to Rs 324) was the biggest gainer in the Sensex, on volumes of
3.73 lakh shares.

Hindalco gained 3.6% to Rs 159.90 on volumes of 10.40 lakh shares.

ITC added 3.1% to Rs 1937 on volumes of 1.71 lakh shares.

NTPC lost 2.05% to Rs 102.65 on volumes of 6.55 lakh shares and Bharti
Televentures fell 1.32% to Rs 358 on volumes of 2.18 lakh shares.

Total turnover amounted to Rs 3,986 crore today.

The advance-decline ratio ended in the positive, but it was not as strong as
it was in the morning . 1,323 shares ended higher while 1297 shares moved
lower. About 48 stocks remained unchanged.

Sesa Goa emerged the topper in terms of turnover, at Rs 227.18 crore,
followed by Sterling Biotech (Rs 105.54 crore) and SBI (Rs 70.19 crore).

Sesa Goa surged 25% to Rs 1076.50, in fact. National Peroxide, Aditya
International, Fortune Finance, Veejay Lakshmi Engineering, Menon Bearings,
Gulshan Chemicals, Asian Tea, Bajaj Steel, Raipur Alloys, Elder Healthcare,
Sahara Housing and Greenply Industries, all flared up 20% each.

GL Hotels was a big loser, down 20%. Vanavil Dyes, Epic Enzymes, Jindal
Capital, Phil Corporation, Nikki Global, Grauer and Weil, Brawn Pharma and
Ace India figured as big losers as well, up 10% each.

Notable block deals took place in ACC (1.23 lakh shares), Amtek India (3.75
lakh shares), Gujarat NRE Coke (5 lakh shares), India Cements (35 lakh
shares), JK Industries (2 lakh shares), Nocil (13.06 lakh shares), Satnam
Overseas (5.53 lakh shares) and Tata Teleservices (5.98 lakh shares).

Stone India spurted 5% to Rs 190.35 after the company informed BSE that it
recently entered into a Memorandum of Understanding (MoU) and signed a
confidential agreement with EMS Industries Pty. Ltd of South Africa for
supply of end of train telemetry system for freight trains.

Nucleus Software Exports jumped 5.75% to Rs 316 after it signed a contract
with Arab Bank, Jordan, to implement the company's Loan Originating System
(LOS), collections and lending solution for retail and corporate customers.
The bank has chosen the company's flagship product for a global

Gateway Distriparks leaped up by 5% to Rs 214.80 after the company’s
shareholders approved a hike in FII investment ceiling to 100% of its equity

Punjab Communications advanced 5.8% to Rs 80.10 on reports that the state
government of Punjab has invited expression of interest (initial bids) from
interested parties latest by 30 September 2005 for appointment of global
advisor to assist it in divestment of its entire 71.22% stake in the

Opto Circuits gained 3.7% to Rs 234.05 after the company said its board has
decided to raise up to $ 70 million by way of private placement/preferential
allotment/rights issue /second public issue or by way of debts to support
the R & D activities, future growth of the company, and to enter into
strategic joint ventures/acquisition of business in India or abroad.

UTV Software Communications jumped 7.5% to Rs 189 after the company informed
BSE that it and UTV Toonz, the animation division of the company, have
entered into an animation deal of $ 10 million with BKN New Media Inc based
in New York.

Zicom Electronic Security Systems jumped 8.22% to Rs 189 after it announced
the successful completion of its Foreign Currency Convertible Bonds (FCCBs)
issue of US$ 11.00 million. The proceeds of the issue amongst others, will
be utilized for expansion of operations into new markets and product areas.

Patel Engineering was locked at the 5% upper circuit filter at Rs 236.50
after it bagged two projects - the Nettampadu Lift I irrigation project
worth Rs 338 crore and a railway tunnel project worth Rs 110 crore.

MSK Projects flared up 5.5% to Rs 1119.50 after it got awarded contracts
worth Rs 9.56 crore for civil and structural associated works for capacity
augmentation of existing Mumbai- Manmad- Manglya pipeline project of BPCL,
stations located at Gujari, Manmad, Sanghvi and Mangalya.

Ginni Filaments jumped 9% to Rs 50 after the company said it is considering
raising funds by way of a public issue. The public issue, at a premium, will
be of the size of Rs 60 crore.

Tata Steel gained 1.5% to Rs 428 on reports in a section of the media that
it is planning to set up a production facility in Vietnam. This follows the
company’s acquisition of the Singapore-based NatSteel Asia last year which
has a presence in Asia-Pacific region including Vietnam.

JMT Auto clambered up by 5.08% to Rs 104.45 after the company said its board
will meet on 17 September 2005 to consider preferential allotment of shares
to select groups.

Oswal Chemicals and Fertilizers shot up 5% to Rs 33.30 on NSE after the
company said it decided to sell its di-ammonium phosphate unit at Paradip in
Orissa to the Indian Farmers’ Fertiliser Co-operative (IFFCO).

HDFC Bank added on 2.27% to Rs 705 taking cue from a modest rise in its ADR
on Friday. The stock was also boosted by expectations of strong Q2 September
2005 results.

Bharat Earth Movers leaped up 9.3% to Rs 870 and HMT soared 8.3% to Rs 84.1
after reports that the former had signed an MoU with HMT to build Metro rail

Era Construction zoomed up 10% to Rs 169.15 on huge volumes of 19.06 lakh
shares ahead of its board meet on 24 September to mull preferential issue/

Tata Teleservices (Maharashtra) surged 7.25% to Rs 31.85 on huge volumes of
1.74 crore shares.

Mawana Sugars put on a good 5.47% to Rs 123.50 after its board of directors,
at its meeting held on 17 September 2005, decided to seek shareholder
approval for raising funds up to US$ 110 million by issue of various
securities for undertaking various projects of the company like setting up a
new sugar plant, expansion of existing crushing capacity, and setting up of
an ethanol and co-generation plant.

Cigarette major ITC climbed 3.1% to Rs 1,937 on renewed buying interest
ahead of the record date of 28 September 2005 for 1:2 bonus and a 10-for-1
stock split.

Atlas Cycles dropped 5.2% to Rs 187.50 after the company denied rumours that
it is entering into the pharmaceutical industry which appeared in the news
item in financial daily titled "Atlas to enter the pharma sector".

Newly listed HT Media hit a new low of Rs 464.55 on volumes of 64803 shares.
The shares were offered at Rs 530 in the IPO.

Both Bharat Earth Movers (BEML) and HMT moved strong after the two companies entered into a MoU over the project to build metro infrastructure in Bangalore

BEML jumped 9.3% to all time closing high of Rs 870. 2.3 lakh shares changed
hands in the counter on BSE. HMT rose 8.3% to Rs 84.10. 7.55 lakh shares
changed hands in the counter on BSE

BEML scrip had witnessed a sharp surge in early August 2005. From a low of
Rs 655.60 on 8 August 2005, the stock had gained 19.8% in just three trading
sessions to Rs 785.90 on 11 August 2005. It had later turned range bound.
The stock held firm over recent months on the back of robust Q1 June 2005

HMT witnessed a solid surge in July 2005 on the back of turnaround results
for the year ended 31 March 2005.

BEML today said it has entered into a significant memorandum of
understanding (MoU) with HMT to commence the process of drawing financial
assistance provided by Planning Commission, (Government of India) for
building metro infrastructure in Bangalore. The Planning Commission has
agreed in principle to grant Rs 108 crore of financial assistance for
building metro infrastructure to achieve and attain global competition in
India through transfer of technology from a global leader and to produce
metro coaches with substantial indigenisation, BEML said in a release. The
financial assistance is routed through Ministry of Heavy Industry through
HMT, Bangalore in equity route, a BEML release added.

BEML manufactures a wide range of heavy earthmoving equipment and parts,
catering to the core sector. It also makes defence equipment and railway
rolling stocks for the Indian Railways.

For Q1 June 2005, BEML’s net profit jumped 139% to Rs 12.41 crore (Rs 5.19
crore). Sales rose 9.4% to Rs 403.19 crore

HMT, which is a diversified PSU, achieved a turnaround in FY 2005 mainly on
the back of growth in its machine tools and tractor segments. The company
recently introduced a low-power tractor, priced at around Rs 1.25 lakh,
which has done well in the market so far. The company, incorporated in 1953
by the central government as a machine tool manufacturer, has over the years
diversified into watches, tractors, printing machinery, metal forming
presses, die casting and plastic processing machinery, CNC systems and

UTV Software in the spotlight on animation deal with BKN

UTV Software Communications leaped up 7.4% to Rs 189 after the company said
its animation unit, UTV Toonz, has entered into a $10-million deal with New
York's BKN New Media Inc.

18,667 shares changed hands in the counter on BSE by the first few minutes
of trade.

This is the second major announcement by the company this month. The stock
had surged recently after the company had announced, on 9 September 2005,
that it has formed a joint venture with Astro All Asian Networks Plc of
Malaysia to introduce two children's TV channels in South East Asia. From Rs
157.80 on 9 September 2005, the stock rose 11.4% in a short while to Rs
175.85 by 16 September 2005.

UTV Toonz will make two 26-episode 3D series for BKN initially. UTV Toonz
has also got distribution, licensing and merchandising rights to some of
BKN's animation series.

As per UTV’s recent tie-up with Astro, Astro will make capital investments
for launching two children's TV channels in South East Asia and the foreign
firm will also make capital investments in the project. UTV will provide
content, format and marketing.

UTV has its focus on television content production and movie production. The
company recently executed forward integration into broadcasting, through its
group company, United Home Entertainment, which runs Hungama TV - a 24-hour
kids channel. The channel, which was launched on 26 September 2004, is being
distributed by STAR Network.

For the quarter ended June 2005, UTV posted a net profit of Rs 3.50 crore on
net sales of Rs 42.57 crore

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