Friday, September 23, 2005

Mcdowell sees spirited rally following nod for consolidation of spirits business

Mcdowell & Company jumped 8% to Rs 433 after the company unveiled the
roadmap for the merger of its spirits business under one company.

2.8 lakh shares changed hands in the counter on BSE.

The stock had plunged 10.3% on Thursday to Rs 399.55 in a weak market. The
stock had declined on huge volume of 31.7 lakh shares on Thursday.

A total of 8 companies including Herbertsons, Shaw Wallace Distilleries,
Trump Distilleries among others will be merged. The new entity called United
Spirits is expected to end the fiscal 2006 with a combined sales of Rs 3,000
crore as compared to Rs 1,700 crore in the previous year. United Spirits
will have 130 brands of which 35 will fetch 90% of revenues.

Mcdowell also set a ratio for merger of Herbertsons in Mcdowell & Company.
As per the ratio of 2 shares of Mcdowell & Company will be issued in
exchange for every three shares held in Herbertsons.

Meanwhile, McDowell has approved demerger of the investment business into
Mcdowell India Sprits Ltd (MISL). In consideration of demerger, the
shareholders of Mcdowell & Company will be issued 1 fully paid up equity
share of MISL of Rs 10/- each for every 5 equity shares of Rs 10/- each held
by them. The shares of MISL will be eventually listed on the stock

The Sensex has managed a recovery from the lower level as fresh buying support emerged in heavyweight counters

The Sensex has managed a recovery from the lower level as fresh buying
support emerged in heavyweight counters. At 12:07 hours, the BSE Sensex was
trading with a loss of 43 points at 8179 points.

The high for the day was 8327.35 while the low was 8121.81 .

The Sensex has recovered close to 60 points from the low of the day amidst a
high degree of volatility.

The total turnover by now amounted to Rs 1788 crore.

The advance decline ratio improved a bit but still weak at 1:5. 426 shares
advanced while 1965 shares declined. 21 shares remained unchanged.

Among the Sensex stocks, 18 stocks were in the red while 12 were in the

Maruti Udyog was up 2.55% to Rs 558 on volumes of 2.49 lakh shares.

HLL followed with a gain of 2.2% to Rs 169 on volumes of 5.78 lakh shares.

HDFC Bank was the biggest loser in the Sensex down 3.3% to Rs 673.

ICICI Bank followed with a fall of 1.7% to Rs 563.

Reliance Capital topped the turnover list with a turnover of Rs 208.97 crore
followed by Reliance Industries with Rs 181.51 crore and newly listed FCS
Software with Rs 140.39 crore.

Marico was down sharply by 5.4% to Rs 275 after its key product Saffola
cholestrol control could face a ban from selling in the market as the
company did not take prior approval from the Maharashtra Food and Drug

Kesoram Industries slipped by 2.32% at Rs after it decided to merge its 100%
subsidiary Assam Cotton Mills with itself.

Sensex sees steep downtrend from higher levels

The Sensex slipped from higher levels on intense selling pressure, as
midcap, small cap and penny stocks were the worst hit, with most of them
frozen at the lower circuit filter limit.

The Sensex opened 33 points higher over its previous close at 8255 points
and then immediately went on to hit a high of 8327.35 points on opening on
buying support in heavyweights.

FIIs and mutual funds have continued their buying support as the data
released by Sebi showed that they were net buyers on Wednesday. This helped
the Sensex open higher.

But intense selling pressure in the key stocks dragged the Sensex lower and,
by 11:05 hours, the Sensex was down sharply by 75 points at 8145 points.

The low for the Sensex by now was at 8147 points. The Sensex is exhibiting
highest degree of volatility since the past few days.

The total turnover by now amounted to Rs 1209 crore.

Among the Sensex stocks, 20 stocks were in the red while 10 were in the

HLL was the biggest gainer in the Sensex, up 2% to Rs 168, on volumes of
4.02 lakh shares.

Maruti Udyog was up 1.15% to Rs 550 on volumes of 1.73 lakh shares.

HDFC Bank was the biggest loser in the Sensex down 4.5% to Rs 665.

ICICI Bank followed with a fall of 3.8% to Rs 551.

The advance-decline ratio was weak at close to 1:6. 317 shares advanced
while 1986 shares declined. 22 shares remained unchanged.

Recently listed HT Media has breached the Rs 400 mark and has hit a new low
of Rs 399.05 on volumes of 56074 shares.

Glenmark Pharmaceuticals edged higher by 1.8% to Rs 319 after the company
announced yesterday that Glenmark Pharmaceuticals S.A of Switzerland, a
wholly owned subsidiary of the company, has filed for Phase I clinical
trials for GRC 8200.

Tata Consultancy Services (TCS) was higher by 1% to Rs 1417 after the
company yesterday informed that its securities' product eClearSettle TM was
selected by The National Depository Center (NDC), Moscow as its solution in
a multi- million-dollar engagement


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