Monday, October 03, 2005

Geometric Software tanks on profit warning


Geometric Software Solutions tumbled 9.1% to Rs 98.80, on high volumes of
3.5 lakh shares.

It may be recalled that the stock had tumbled in early June 2005 after the
company had cut its Q1 June 2005 revenue and profit guidance citing delay in
ramp-up by clients. The stock had plunged 9.5% in a single trading session
on 13 June 2005 to Rs 113.21. The stock had seen volatility in the past 3-4
months due to alternate bouts of buying and selling, moving between a low of
Rs 104 to a high of Rs 126.

Geometric Software today said it expects Q2 July-September 2005 quarter on
quarter revenue growth to be in the mid-single digits due to
lower-than-expected ramp-up of projects by customers. It said profit for the
quarter had also been affected by higher staff and facilities costs.

The cumulative effect of two slow quarters may not be overcome in the rest
of the fiscal year, it added.

For the first quarter ended June 2005, Geometric Software’s consolidated
revenue slipped 3% to Rs 48.59 crore on a sequential basis. Net profit
flopped 3% Rs to 7.81 crore.

Geometric's main strengths lie in developing a software product called
lifecycle management (PLM). PLM is used in diverse areas of mechanical
designing covering industries such as transport, engineering, architecture,
electrical and electronics.

Much of the company's revenues emerge from the transport segment for machine
designs (from the automotive, shipping and aerospace industries).
Engineering and electromechanical industries are also subscribers.

GHCL flares up on hike in soda ash prices


GHCL jumped 6% to Rs 107.70 on reports that the company has raised soda ash
prices by Rs 400 per tonne to Rs 9,600 per tonne.

41,783 shares changed hands in the counter on BSE by the first few minutes
of trade.

The stock had experienced a marked rally during the period early August 2005
to early September 2005. It eased later. From a low of Rs 63.30 on 4 August
2005, the stock marched up 93.9% in a brief span to Rs 122.75 on 8 September
2005. The stock moved downward later to finish at Rs 101.60 on 3 October
2005.

Increase in freight costs and increase in power costs triggered hike in soda
ash prices by GHCL. GHCL is one of the largest soda ash makers. The latest
hike in petroleum prices raised transport costs whereas its power costs rose
due to hike in electricity prices by the state government of Gujarat.

The price hike is also in line with the firm global soda ash prices, reports
suggest. However, Tata Chemicals, the largest soda ash maker has not yet
announced hike in prices.

September vehicle sales growth may spur Tata Motors


Tata Motors may edge higher on the back of decent growth in vehicle sales in
September 2005. Tata Motors said on Monday its vehicle sales rose 13% in
September 2005 to 40,095 units from 35,406 units in September 2004. Sales of
commercial vehicles rose 11% to 19,087 units from 17,179 units in September
2004. Sales of cars and utility vehicles rose 1% to 16,078 units. Exports
more than doubled to 4,930 units from 2,301 units.

Bharat Forge may slip after the company on Monday denied media reports that
it had bid for acquisition of the light vehicle aftermarket (LVA) business
of US based Arvin-Meritor.

Cranes Software may edge higher after the company said it has partnered with
MapuSoft Technologies to bring the best to the Indian embedded software
market.

Uniproducts (India) may edge higher after the company said its board will
meet on 7 October 2005 to approve the shareholder’s agreement with the Juken
Technology, Singapore for the formation of a joint venture company for the
production of mould fabrication and plastic injections components. The board
will also consider various options for raising of funds including raising of
additional equity.

Cubex Tubings may be in the thick of the action after the company said the
price for its proposed preferential issue of shares to promoters has been
fixed at Rs 57 (including a premium of Rs 47 per share). Cubex Tubings scrip
ended at Rs 40.10 on BSE ahead of the announcement.

Polaris Software Lab may move strong after the company said on Monday it has
appointed Arup Gupta as president and chief operating officer. Arup Gupta
joins the company with a rich experience of over 25 years at TCS. Arup Gupta
brings to the table the same deep understanding and the dynamism that helped
TCS to scale up to be at the forefront of global offshore delivery
processes, Polaris Software said in a statement on Monday. Following the
announcement, Polaris Software shares rose 3.2% on Monday to Rs 141.20.

Amex Information Technologies may be in the buzz after the company approved
the merger of Vishal Information Technologies – a subsidiary of the company
with the company. As per the swap ratio, one share of Amex Information
Technologies will be issued in exchange for every one equity share held in
Vishal Information Technologies

United Western Bank may move lower after the private sector bank denied
media reports that it might be merged with Corporation Bank.

Gail India may rise after the company said it has signed an agreement in
Seoul for equity participation in the A-3 Block in off-shore Myanmar. The
A-3 block is situated adjacent to the recently discovered A-1 block with
estimated reserves of 5 tcf. (P50 reserves). Gail is a consortium partner in
the A-1 block and is the preferred buyer for the gas produced from the A-1
block. Gail has been considered as the preferential buyer to buy Daewoo's
share of natural gas from the A-3 block. The A-1 block is set to start
commercial production in 3 to 4 years. In the event of gas discoveries in
A-3 block, the combined potential of the region will be immensely enhanced,
a Gail statement said.

Rei Agro may be in the spotlight after the company said its board will meet
on 10 October 2005 to consider acquisition of domestic and international
companies for promoting brands and strengthening the distribution system.
The board will also consider creation of subsidiary as an international arm
of the company.

Car major Maruti Udyog may move onward after the company said on Monday it
may contemplate another price hike at the end of the year. The car major, on
Monday, raised prices of most of its vehicle models by between 0.2% to 1%
due to an increase in freight costs following a rise in oil prices.

Sensex, Nifty at all time highs of 8,697.65 & 2,630.05 respectively


The market staged a rebound today on the back of gains in auto, pharma, IT,
cement and FMCG stocks. Copper and aluminum major Hindalco surged. The
highlight of today’s trading was a rebound in a host of small- and mid-cap
stocks, many of which had flopped in the past few days.

Buying was pronounced in textiles, auto-component, pharma and shipping
stocks. A broad based upsurge was experienced in state-run firms.

Strong vehicle sales figures for September 2005 saw auto stocks rule firm,
whereas expectations of strong Q2 results set off hectic buying in IT
stocks. The economic data released on Friday (30 September 2005), showing
robust GDP growth in Q1 June, saw market sentiment turning very upbeat.

India’s gross domestic product (GDP) leaped up 8.1% in the April-June 2005
quarter, beating forecasts. The growth was led by strong services and
manufacturing output. The expansion was higher than the 7% in the
January-March 2005 quarter and was the fastest rate of annual growth since
the 8.4% achieved in January-March 2004.

Stocks like Tata Chemicals, Titan, IPCL, IDBI, Zuari Industries, Bharat
Forge, KSB Pumps, Cummins, Varun Shipping, Chemfab Alkalies, and Hexaware
moved upstream.

The 30-share BSE Sensex leaped up 63.17 points or 0.73% to a lifetime
closing high of 8,697.65. The Sensex shed weight after it hit a high of
8,725.75 towards the latter part of trading, which is an all time high for
the barometer index. The S&P CNX Nifty climbed 28.65 points or 1.1% to a
lifetime closing high of 2,630.05.

However, turnover declined sharply. BSE clocked a turnover of Rs 3,051
crore, much lower than Friday’s Rs 3,668 crore.

The market breadth was strong. 1,472 stocks advanced on BSE as compared to
1,055 stocks that declined. 30 scrips were unchanged. The advance-decline
ratio was 1.39:1.

The latest data released by Sebi showed that FIIs sold shares worth a net Rs
36.90 crore on Friday (30 September 2005). The latest FII data shows that
there has been a slowdown in FII inflow in the past few days.

FII inflow in the past few months was robust as foreign funds shifted money
in favour of emerging markets due to the low yield in the United States and
Europe. The cumulative FII inflow in India in September 2005 reached Rs
4,513.40 crore (till 28 September), on the top of an inflow of Rs 5,051.20
crore in August 2005. The FII inflow for calendar 2005 so far (till 28
September 2005) has reached $ 8.56 billion, which has surpassed the inflow
of $ 8.51 billion recorded in the whole of 2004.

Auto stocks were at the forefront of today’s market rally. Bajaj Auto jumped
5% to Rs 1,779, and TVS Motor rose 8.6% to Rs 100.80. Hero Honda gained 0.5%
to Rs 746.

Bajaj Auto’s bike sales zipped up 43% in September 2005 to 1.8 lakh units
from 1.26 lakh units in September 2004. On a month on month basis, sales
climbed 20.8% from 1.49 lakh units in August 2005. Hero Honda’s bike sales
jumped 22% in September 2005 to 2.66 lakh units compared to 2.17 lakh units
in September 2004. On a month on month basis, sales rose 8.1% from 2.46 lakh
units in August 2005. TVS Motors reported a 27% growth in bike sales in
September 2005 to 75,310 units from 59,172 units in September 2004.

Car major Maruti Udyog (MUL) jumped 3.2% to Rs 576.25 after the car major
said it has raised prices of most of its vehicle models by between 0.2% to
1% due to an increase in freight costs following a rise in oil prices. 14.7
lakh shares changed hands in the counter on BSE. MUL did not raise prices of
its recently launched Swift compact. The car major sold 49,278 vehicles in
September, up 12 percent from 43,949 units a year earlier.

Tata Motors rose 3.2% to Rs 552. 8.4 lakh shares changed hands in the
counter on BSE.

Tractor and utility vehicle major M&M gained 2.6% to Rs 388.40 after it said
that total vehicle sales rose 13% in September 2005 to 20,938 units from
18,537 units a year earlier. M&M said domestic passenger vehicle sales in
September rose 4 percent to 13,300 units from 12,769 units a year earlier.
Its exports rose 66 percent to 539 units from 324 units.

Renewed buying boosted pharma stocks. Dr Reddy’s Laboratories rose 3.8% to
Rs 885, Cipla gained 2.7% to Rs 390.50, Orchid Chemicals rose 5% to Rs
271.95, Divi’s Laboratories gained 4% to Rs 1,585, Pfizer gained 3.7% to Rs
847, Kopran rose 3% to Rs 67, and Wockhardt gained 2.9% to Rs 502.

Ranbaxy rose nearly 2% Rs 500.80 after the company said another Ranbaxy ARV
has been pre-qualified by WHO.

Expectation of strong Q2 results and firmness in ADRs boosted IT pivotals.
Satyam Computer gained 2.8% to Rs 576, Wipro rose 2.4% to Rs 318, Infosys
gained 1.3% to Rs 2,550 and TCS gained 1.1% to Rs 1,498.

Hindalco jumped 3% to Rs 151.60. The stock rose on high volume of 12.5 lakh
shares on BSE.

FMCG major Hindustan Lever gained 1.7% to Rs 184.25 on positive outlook for
the FMCG sector.

A host of PSUs firmed up today. Engineers India spurted 11.8% to Rs 605, HMT
jumped 9% to Rs 91, ITI surged 7.7% to Rs 68.45, Gail India rose 6.2% to Rs
280, Dredging Corporation gained 4.8% to Rs 601.15, MTNL gained 1.8% to Rs
129.85, Hindustan Organic Chemicals rose 2.7% to Rs 41, Nalco rose 3.3% to
Rs 179.75, and National Fertilisers gained 3% to Rs 43.90.

Welspun-Gujarat Stahl Rohren jumped 11% to Rs 96.65 after the company said
it has bagged an export order valued at about Rs 500 crore from Indonesia.
The stock rose on huge volume of 40.61 lakh shares.

Federal Bank rose 1.4% to Rs 190.25 on media reports that the bank is in
discussions with privately-owned Lord Krishna Bank for a possible takeover.

Videocon International jumped 8.7% to Rs 98.50 and Videocon Industries rose
7.4% to Rs 473. France's Thomson said on Friday it had finalised the sale of
its television tube operations to Videocon Group completing its exit from
consumer electronics. Thomson sold the tube plants employing 11,500 staff in
China, Mexico and Poland to Videocon Group for 240 million euros ($ 289
million), which it said it would reinvest in two Videocon units.

Munjal Auto Industries rose 6.4% to Rs 199 after the company said it
approved a scheme of arrangement which involved transfer of Binola division
of the company at Dist Gurgaon, Haryana into a separate company. The Binola
division of the company at Dist Gurgaon is engaged in the business of
forging and machining.

Textile shares rose on renewed buying interest. Raymond gained 6% to Rs 415,
Ambika Cotton rose 5.4% to Rs 305.50, Welspun India gained 4% to Rs 130.80,
Pantaloon Industries rose 3.9% to Rs 332.50, Pioneer Embroideries gained
3.8% to Rs 152.35, Arvind Mills rose 3.7% to Rs 138.40, KG Denim gained 3.4%
to Rs 49.50, Abhishek Industries gained 3% to Rs 37.40, Alok Industries rose
1.8% to Rs 79.40 and Zodiac Clothing gained 1.5% to Rs 663.

A host of second line IT stocks surged. Hexaware rose 6.6% to Rs 110.25,
Aztec Software rose 4.8% to Rs 137.35, Infotech Enterprises gained 4.8% to
Rs 386, Polaris Software rose 4% to Rs 142.20, VisualSoft gained 3.6% to Rs
211, iGate Global gained 3% to Rs 241, and Mphasis BFL rose 3% to Rs 257.25.

Shipping scrips surged. Mercator Lines jumped 5.2% to Rs 138.85, and Varun
Shipping rose 7.3% to Rs 61.

source:capitalmarket

Small-cap, mid-cap stocks strike back as Sensex scales all time high


The market bounced back today on the back of gains in auto, pharma, IT,
cement and FMCG stocks. Copper and aluminum major Hindalco surged. The
highlight of today’s trading was a rebound in a host of small-cap and
mid-cap stocks. A host of small-cap and mid-cap stocks had plunged in the
past few days.

Buying was conspicuous in textiles, auto-component and pharma stocks. A
broad based rally was witnessed in state-run firms.

Strong vehicle sales figures for September 2005 boosted auto stocks whereas
expectation of strong Q2 results triggered renewed buying in IT stocks. The
economic data released on Friday (30 September 2005) showing robust GDP
growth in Q1 June boosted market sentiment. India’s gross domestic product
(GDP) jumped 8.1% in the April-June 2005 quarter, beating forecasts. The
growth was led by strong services and manufacturing output. The expansion
was higher than 7% in the January-March 2005 quarter and was the fastest
rate of annual growth since 8.4% achieved in January-March 2004.

Stocks like Tata Chemicals, Titan, IPCL, IDBI, Zuari Industries, Bharat
Forge, KSB Pumps, Cummins, Varun Shipping, Chemfab Alkalies, and Hexaware,
edged higher.

The 30-share BSE Sensex jumped 63.17 points or 0.73% to a lifetime closing
high of 8,697.65. Sensex pared gains after it hit a high of 8,725.75 towards
the latter part of trading which is an all time high for the barometer
index.

However, turnover declined sharply. BSE clocked a turnover of Rs 3,035 crore
much lower than Friday’s Rs 3,668 crore.

Auto stocks were at the forefront of today’s market rally. Bajaj Auto jumped
5% to Rs 1,779, and TVS Motor rose 8.6% to Rs 100.80. Hero Honda gained 0.5%
to Rs 746.

Bajaj Auto’s bike sales zipped up 43% in September 2005 to 1.8 lakh units
from 1.26 lakh units in September 2004. On a month on month basis, sales
climbed 20.8% from 1.49 lakh units in August 2005. Hero Honda’s bike sales
jumped 22% in September 2005 to 2.66 lakh units compared to 2.17 lakh units
in September 2004. On a month on month basis, sales rose 8.1% from 2.46 lakh
units in August 2005.

Car major Maruti Udyog (MUL) jumped 3.2% to Rs 576.25 after the car major
said it has raised prices of most of its vehicle models by between 0.2% to
1% due to an increase in freight costs following a rise in oil prices. 14.7
lakh shares changed hands in the counter on BSE. MUL did not raise prices of
its recently launched Swift compact. The car major sold 49,278 vehicles in
September, up 12 percent from 43,949 units a year earlier.

Tata Motors rose 3.2% to Rs 552. 8.4 lakh shares changed hands in the
counter on BSE.

Tractor and utility vehicle major M&M gained 2.6% to Rs 388.40 after it said
the total vehicle sales rose 13% in September 2005 to 20,938 units from
18,537 units a year earlier. M&M said domestic passenger vehicle sales in
September rose 4 percent to 13,300 units from 12,769 units a year earlier.
Its exports rose 66 percent to 539 units from 324 units.

Renewed buying boosted pharma stocks. Dr Reddy’s Laboratories rose 3.8% to
Rs 885, Cipla gained 2.7% to Rs 390.50, Orchid Chemicals rose 5% to Rs
271.95, Divi’s Laboratories gained 4% to Rs 1,585, Pfizer gained 3.7% to Rs
847, Kopran rose 3% to Rs 67, and Wockhardt gained 2.9% to Rs 502.

Ranbaxy rose nearly 2% Rs 500.80 after the company said another Ranbaxy ARV
has been pre-qualified by WHO.

Expectation of strong Q2 results and firmness in ADRs boosted IT pivotals.
Satyam Computer gained 2.8% to Rs 576, Wipro rose 2.4% to Rs 318, Infosys
gained 1.3% to Rs 2,550 and TCS gained 1.1% to Rs 1,498.

Hindalco jumped 3% to Rs 151.60. The stock rose on high volume of 12.5 lakh
shares on BSE.

FMCG major Hindustan Lever gained 1.7% to Rs 184.25 on positive outlook for
the FMCG sector.

A host of PSUs firmed up today. Engineers India spurted 11.8% to Rs 605, HMT
jumped 9% to Rs 91, ITI surged 7.7% to Rs 68.45, Gail India rose 6.2% to Rs
280, Dredging Corporation gained 4.8% to Rs 601.15, MTNL gained 1.8% to Rs
129.85, Hindustan Organic Chemicals rose 2.7% to Rs 41, Nalco rose 3.3% to
Rs 179.75, and National Fertilisers gained 3% to Rs 43.90.

Spicejet spirals upward on reaching breakeven point in the first quarter


Spicejet jumped by 5.8% to Rs 81.85 on volumes of 32.05 lakh shares.

The day’s range was Rs 73.10 and Rs 83 so far on BSE.

The stock moved downward from the peak of Rs 110.25 on 2 September 2005 to
Rs 77.35 on 30 September 2005.

Spicejet (formerly Royal Airways) marched up today after the company said it
achieved a breakeven in its first operating quarter. The rumour mill has it
that SpiceJet will now buy out a 74% stake in Sahara Airways.

For the first quarter ended 31 August 2005, the company turned out a net
loss of Rs 10 crore as against a net loss of Rs 23.7 crore for the preceding
quarter. Operating revenues totaled Rs 57.26 crore in comparison to the
operating expenditure of Rs 57.15 crore in the preceding quarter. The
company posted an operating profit of Rs 0.11 crore during its first quarter
of operations.

Last month, Spicejet came up with a statement that Singapore-based
MacRitchie Investments (a wholly owned subsidiary of Temasek Holdings) and
Istithmar of the UAE, a private equity company, had agreed to infuse US $20
million in the equity capital of the company.

Spicejet currently operates in six markets covering Delhi, Mumbai,
Ahmedabad, Goa, Pune and Bangalore - utilising the Boeing B737-800, a new
generation aircraft with an all economy configuration of 189 seats.

Spicejet recently launched late night flights between Mumbai and Delhi,
thrice a week, with fares starting at Rs 1,599. The low-cost airline plans
to operate such late night flights to more destinations when more aircraft
are added to its fleet.

Essar Oil streaks up following shareholder nod for issue of FCCBs/GDRs/ADR issue


Essar Oil is currently up 4.1% to Rs 40.35 on volumes of 2.86 lakh shares.

The day's trading range so far was between Rs 38.45 and Rs 40.50 so far on
BSE.

The stock has been drifting downward from the close of Rs 45.45 on 06
September 2005 to close at Rs 38.65 on 30 September 2005.

Essar Oil jumped up today after it informed that the members have approved
the issue/allotment of FCCBs/GDRs/ADRs/any other financial instruments,
convertible into equity shares, in the international market to the
promoters/nominees on preferential issue basis for an amount not exceeding
US$ 300 million.

Essar Oil is the first private sector company to venture into petroleum
retailing. The company has set a target of opening 2,500 retail outlets for
petroleum products in the next five years. After making its presence felt in
petroleum product sales in semi-rural areas and towns, Essar Oil is now
opening outlets in major cities and towns across the country. Essar Oil’s
retail outlets are mainly located in the western and north western regions
of the country.

For the quarter ended 30 June 2005, the company reported a net loss of 35.26
crore (net profit of Rs 0.66 crore). Net sales, however, spiraled up 123.91%
to Rs 312.46 crore from Rs 139.55 crore in the same period of the previous
year.

Federal Bank in demand


Federal Bank gained 2.2% to Rs 191.90 on media reports that the bank is in
discussions with privately-owned Lord Krishna Bank for a possible takeover.

94,234 shares changed hands in the counter on BSE by mid-afternoon trade.

The Federal Bank scrip had witnessed a solid surge during early July 2005.
After the sharp surge the stock had turned volatile. The scrip moved between
a low of Rs 173.60 to a high of Rs 201 since 11 July 2005. Earlier, the
stock had spurted 20.4% in a short while to Rs 195.65 on 8 July 2005 from a
low of Rs 162.50 on 5 July 2005.

Federal Bank has already held preliminary talks with Lord Krishna Bank and
it has sought its permission to conduct due diligence for Lord Krishna Bank,
reports suggest. Both Federal Bank and Lord Krishna Bank have majority of
branches in Kerala. However, Lord Krishna Bank has a decent presence in the
north.

Till 1972, Federal Bank had its network of branches only in Kerala, but post
1972, it began to expand further, and established itself in all metropolitan
centres of India. The bank has a huge non-resident Indian client base of
over 4.5 lakh account holders.

Federal Bank’s capital adequacy as of 30 June 2005 was 11.98% while Lord
Krishna Bank (LKB) had a capital adequacy of 13.07%. LKB’s net profit for
the quarter ended 30 June 2005 was at Rs 7.66 crore while its net NPA stood
at 4.12%. Federal Bank, on the other hand, has posted a net profit of Rs
48.68 crore and it had a net NPA of 1.96%.

Recently, Federal Bank’s board decided go for a GDR issue.

Mukand gains on expansion plans


Mukand is currently up 2.7% to Rs 101.35 on volumes of 3.95 lakh shares.
The stock traded in a range of Rs 99.05 and Rs 104.25 so far on the BSE.

The stock marched up from the close of Rs 90.55 on 22 September 2005 to
close at Rs 101.90 on 29 September 2005.

Mukand advanced today after it earmarked an investment of Rs 120 crore to
increase alloy steel capacity by 40% and stainless steel by nearly 80%
within a couple of years.

The company plans to increase its alloy steel capacity from the present 3.3
lakh tonne to 4.6 lakh tonne, in the next one year, while its stainless
steel manufacturing capacity at Kalwe to 1 lakh tonne from the 55,000 in two
years. The expansion in both the cases will be effected through
de-bottlenecking and productivity improvement measures.

The expansion is in response to the rising demand posed by automobile, auto
components, consumer appliances and infrastructure sectors. Mukand is one of
the leading alloy steel manufacturers in the country, commanding a market
share of about 40% in segments like special steel bars and special alloy
steels.

In the stainless steel segment, it is a major player particularly in
stainless steel long products, bright bars and wires. For the year ended
March 2005, Mukand had a debt consideration of about Rs 1,100 crore. The
company will be approaching banks and financial institutions for debt
restructuring to minimise the interest consideration.

For the current financial year, Mukand aims to achieve a topline growth of
25% over the previous year. Of this, 75-80% would come from steel, and the
rest from engineering and road construction. The engineering division of the
company has an order book of Rs 200 crore.

Mukand is a Mumbai based Bajaj Group steel company. The main divisions of
the company include steel plant, steel foundry and real estate. Mukand
manufactures cold-headed quality steel, ball-bearing steel, carbon and alloy
steel bars and wire rods, and leaded steel bars.

For the quarter ended 30 June 2005, the company reported turnaround results,
with net profit of Rs 14.87 crore (Rs 17.62 crore). Net sales increased
17.83% to Rs 372.89 crore (Rs 316.47 crore)

Acquisition initiative sets Mahindra & Mahindra accelerating higher


Mahindra & Mahindra is currently up 1.8% to Rs 385 on volumes of 56053
shares.

The day's trading range was Rs 381.60 and Rs 387.90 so far on BSE.

The stock has meandered upward steadily from Rs 346.30 on 22 September 2005
to Rs 378.25 on 30 September 2005 on sustained buying interest.

Mahindra & Mahindra (M&M) proved firm all throughout (so far) today
following the reports that it intends to acquire an engineering service
company within the next four weeks.

M&M is eyeing both overseas and domestic engineering service companies. A
least one company may be acquired in the next four weeks, reports suggest.

This acquisition is part of M&M's plans to take the turnover of its
automotive components and engineering services business to US $1 billion
within the next five years from the current $250 million.

The proposed acquistion should see the turnover of the engineering services
business doubling from the current $15 million. The engineering services
take care of designing of components for automobile manufacturers.

The company has entered into an agreement with US-based International Truck
and Engine Corporation to source components and engineering services and
design services for its global operations. As per the agreement,
International Truck will source components and services worth $60 million in
2006-07.

Also the company will roll out more variants of Scorpio which are in the
pipeline. M&M has been pushing forth the exports of its Scorpio and Bolero
SUVs in markets like South Africa, Malaysia, the Middle East and Latin
America lately.

So far, the Bolero has been quite successful in Latin America, and the
Scorpio has made its ground in Qatar and Oman, apart from South Africa and
Malaysia. The company had earlier announced plans to invest Rs 500 crore
over the next two years to meet the increased demand for the Scorpio.

Mahindra and Mahindra turned out a 39% jump in Q1 ended 30 June 2005 net
profit to Rs 145 crore from Rs 104 crore in Q1 June 2004. Net sales zoomed
up 27% to Rs 1,812 crore.

HEG advances following hike in FII limit


HEG is currently up 1.85% to Rs 173.30 on volumes of 9,627 shares.

The day's trading range so far was Rs 162 and Rs 175.

The stock managed a sharp rise from Rs 155.10 on 22 September 2005 to Rs
170.15 on 30 September 2005.

HEG made headway today after its board approved a hike in FII limit from 24%
to 40% of the company's equity.

The latest paid-up equity share capital of the company is Rs 40.31 crore,
and the promoters' stake in the equity is 56.99%.

HEG, part of the LNJ Bhilwara group, is Asia's leading graphite electrodes
manufacturer and India's largest graphite electrodes exporter.

The steel industry is a major customer for graphite electrodes. In June
2005, the company mopped up funds through the issue of Foreign Currency
Convertible Bonds (FCCBs) of the principal amount of US$ 25 million with a
greenshoe option of US$ 3.75 million.

For the quarter ended 30 June 2005, the company turned out a 19.5% fall in
net profit to Rs 6.49 crore (Rs 8.06 crore). Net sales also dropped, by 7.9%
to Rs 101.23 crore (Rs 109.94 crore).

Acquisition proposal has Jindal Stainless glinting with gains


Jindal Stainless is currently up 2.4% to Rs 149.45 on volumes of 1.82 lakh
shares.

The day's trading range in the stock so far stretched between Rs 146 and Rs
152.30 .

The stock has declined from the peak of Rs 160.95 on 16 September 2005 to
close at Rs 127.20 on 22 September 2005 on profit taking.

Jindal Stainless advanced today on reports that the company is in advanced
stages of acquiring coal mines in Australia, the Middle East and Indonesia.
Jindal Stainless plans to invest $50-75 million in these acquisitions, and
is also scouting for iron ore mines in South Africa.

Reports add that negotiations are in progress to arrive at the right
valuations. The acquisition would be done either by the company alone or
through a joint venture.

Earlier this year, Jindal Stainless signed an MoU with the Orissa government
to set up a 1.6 million tonne integrated stainless steel plant and a 500
megawatt captive power plant at Kalinga Nagar in the Jajpur district for Rs
6,628 crore

The first phase of the project is expected to see the construction of a 0.6
million tonne plant in 30-32 months, while the entire project is scheduled
for completion by 2011.

In April this year, Jindal Stainless reached a joint venture agreement with
Italy's Steelway and L.G. Italia to set up a service centre in the northern
state of Haryana. The company holds 80% stake in the joint venture company.

For the quarter ended 30 June 2005, the company's net profit leaped up
31.88% to Rs 66.10 crore (Rs 50.12 crore) and net sales improved 32.44% to
Rs 856.66 crore (Rs 646.85 crore).

Car major Maruti Udyog (MUL) rose 1.8% to Rs 568.50 on the back of encouraging sales in the month just gone by.


1.11 lakh shares changed hands in the counter on BSE by mid-morning trade.

The stock lost 1% on Friday (30 September 2005) on the eve of the
announcement.

The last few days saw the stock witness high volatility after a solid surge
during the period from 1 September 2005 to 19 September 2005 on the back of
improved sales in August 2005. The stock moved between a low of Rs 544 and a
high of Rs 573 since 20 September 2005.

Earlier, the stock zipped up 25.4% in a short while to Rs 590.65 from Rs 471
on 31 August 2005. Apart from the improvement in domestic sales, hopes of
cuts in excise duty on small cars had set the stock ticking. Further, the
government’s decision to sell 8% of its equity in Maruti Udyog to public
sector banks and financial institutions set of a wholesome rally in the
counter. It may be recalled that on 2 September 2005, the Union Cabinet had
given its nod for the sale of 8% stake in MUL. The disinvestment will be
conducted through the process of competitive bidding with the market price
as the benchmark, reports suggest. The government holding will fall to
10.28% after the disinvestment.

Maruti Udyog sold 49,278 vehicles in September, up 12% from 43,949 units in
September 2004. The company sold 46,393 units in the domestic market, up 15%
from 40,322 units in September 2004. However, exports declined 20.5% to
2,885 units from 3,627 units a year earlier.

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