Tuesday, October 04, 2005

Sensex scores new all time high

The Sensex hit a new all time high of 8788.21 points on the back of
sustained buying interest at the higher level. At 13:18 hours, the BSE
Sensex is quoting at 8786.33 points, a gain of 88 points from its previous

The low for the day remains at 8706.70 points.

The Sensex has seen a swing of 82 odd points so far in the day's trading

Among the Sensex stocks, 25 were trading higher while only 5 were lower.

HDFC Bank was the biggest gainer in the Sensex, up 3.5% to Rs 702. Its ADR
closed 5.5% higher overnight.

Dr Reddys followed with a gain of 3.45% to Rs 914.35

Wipro added 3.11% to Rs 392.75

Cipla was the biggest loser, down 1.9% to Rs 383.25.

The total turnover by this point of time amounted to Rs 2199 crore.

The advance-decline ratio was positive at 2.5:1 with 1732 shares moving
higher while 736 shares were trading lower. About 34 shares remained
unchanged by now.

Bharti Televentures was the top traded counter with a turnover of Rs 142.55
crore followed by HLL with Rs 141.02 crore and Reliance Industries with Rs
86.10 crore by now.

Side counters like Lakshmi Cotsyn, Super Tanner, Dynamat Technologies, Virat
Industries, Patel On Board, Dhunseri Tea, Aarvee Denim, Mahindra Gesco,
Alchemist, Sujan Metal, Sumeet Industries, Kalindee Rail Nirman and Kanchan
International among others, all advanced in a range of 20% to 10% each.

IFSL, Swan Mill, Victoria Mills, Geometric Software, Panyam Cements, NEPC
India, Sakthi Finance, Prajay Engineers, Sika International, N K Industries
all lost in a range of 10% to 5% each.

Glenmark Pharma was trading firm by 0.6% to Rs 323.70 after it got the USFDA
nod for its solid-dossage plant in Goa.

Gail was trading higher by 0.75% to Rs 283. It signed an equity
participation agreement for its A-3 block in offshore Myanmar with Daewoo
Corporation and Kogas of Korea. Gail is also looking to buy 5-7 mt per year
LNG from Australia

GHCL jumped 3.5% to Rs 105.20 after media reports that it has hiked soda ash
prices by Rs 400 per tonne

A block deal of 3.47 lakh shares was struck on Ansal Properties counter at
Rs 255 per share.

EIH saw a block deal of 1 lakh share at Rs 500 per share.

HLL counter saw a huge block deal of 72.2 lakh shares at Rs 185.55 per

ITC witnessed a block deal of 15 lakh shares at Rs 136.80 per share.

Zee Telefilms saw a block deal of 10 lakh shares at Rs 176 per share.


September 2005 sales jump drives Tata Motors higher

Tata Motors rose nearly 2% to Rs 563.85 on the back of a surge in sales in
September 2005.

7.2 lakh shares changed hands in the counter on BSE.

The scrip gained 3.5% on Monday (3 October 2005) to Rs 553.25 on the eve of
the announcement.

Expectations of a surge in sales in August 2005 triggered a solid surge in
the counter since late August 2005. From a low of Rs 462.85 on 31 August
2005, the stock surged to Rs 534.45 by 30 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.

On 22 September 2005, Tata Motors said it is studying a possible
co-operation with Italian industrial group Fiat in the auto sector.

In another development, the auto major has reportedly entered a deal with
Thailand's Thai Rung Union Car PCL to set up a manufacturing plant for
pickup trucks in Thailand. Tata Motors is also examining the possibility of
setting up a production base for hybrid and low-cost vehicles in Thailand.
Tata Motors plans to begin production of 140-bhp pickup trucks in 2006 and
expects to sell 5,000 to 10,000 units in the first year of operation.

Patel Engineering builds on major order win

Patel Engineering rose 4.5% to Rs 241.45 after the company said it has
bagged new orders worth Rs 374 crore.

The stock rose on good volume of 4.07 lakh shares on BSE.

The scrip rose 3.5% on Monday (3 October 2005) on the eve of the order
announcement to Rs 230.95.

Earlier, the stock had gained 5% to Rs 236.50 on 19 September 2005 after the
company had announced bagging two orders aggregating Rs 448 crore. The stock
had turned volatile later amid high volatility in some of the small-cap and
mid-cap stocks.

Patel Engineering today said it has secured orders worth Rs 374 crore for an
irrigation project and a railway tunnel in Assam. The irrigation project
order is worth Rs 315 crore and the railway tunnel order is valued at Rs 59

Over the past few months, the company was subject to a substantial order
flows. In September 2005 itself, the company bagged a Rs 336-crore order for
an irrigation project and another Rs 110-crore order for a railway tunnel

It may be noteworthy that the company had recently won three contracts from
the National Highways Authority of India (NHAI) worth Rs 361 crore.

The company's net profit zoomed up in Q1 June 2005. Net profit rose 93.6% to
Rs 11.29 crore (Rs 5.83 crore). Net sales rose 77.3% to Rs 189.81 crore

Dr Reddy's Laboratories was up 3.5% on BSE in early afternoon trade today to Rs 914 - at a 52-week high

88,645 shares changed hands in the counter on BSE.

It was the fourth straight session for Dr Reddy’s Laboratories to witness a
rally. From a recent low of Rs 780.30 on 23 September 2005, the stock has
now gained 17.1% in a short while.

Positive news flow has boosted the counter in the past few days.

Earlier, the stock had witnessed a solid surge on the back of strong Q1 June
2005 results. The stock had surged from a low of Rs 766 on 25 July 2005.

On 29 September 2005, Dr Reddy’s Laboratories (DRL) announced a
co-development and commercialisation agreement with Denmark's Rheoscience AG
involving a diabetes drug. The agreement, over balaglitazone, will involve
Rheoscience funding all costs for the Phase III clinical trials, while Dr
Reddy's Laboratories (DRL) will compensate Rheoscience a share of the
development costs. In turn, Rheoscience will obtain the marketing rights to
the EU and China, while Dr Reddy's will garner the marketing rights for
United States and rest of the world. The agreement will cover a period of 10

On 28 September, DRL said it had incorporated a new firm, Perlecan Pharma
Pvt. Ltd, with private equity partners. The firm would be involved in
developing four chemical compounds to help ease pressure on costs. Citigroup
Venture Capital International Growth Partnership Mauritius and ICICI Venture
Funds Management Co., would each contribute $22.5 million to the equity of
Perlecan Pharma Pvt. Ltd., with Dr Reddy's putting in $7.5 million.

DRL’s net profit for the quarter ended 30 June 2005 doubled to Rs 34.7 crore
(Rs 17.3 crore). Net sales during the same period rose 9.6% to Rs 559 crore
(Rs 510 crore). Growth in generic products such as omeprazole and amlodipine
maleate drove DRL’s European finished dosage revenues, causing them to jump
by 98%. Revenues in India rose 19% to Rs 142 crore.

HDFC Bank rose 3.6% to Rs 703 boosted by a rally in its ADR on Monday

70,541 shares changed hands in the counter on BSE by the first two hours of

On Monday, HDFC Bank ADR jumped 5.4% to $ 53.98. It had cooled to $ 53 in
after-hours trade. Each HDFC Bank ADR comprises of three underlying equity
shares of the bank. Based on current prices, the HDFC Bank ADR trades at
about 12.9% premium over the ruling BSE price of the scrip.

Of late, the HDFC Bank witnessed volatility due to alternate bouts of buying
and selling. Consider this. The scrip had jumped 13.7% in a short while to a
lifetime closing high of Rs 729.15 on 20 September 2005 from Rs 640.80 on 6
September 2005. It had cooled off later to settle at Rs 678.30 on 3 October

HDFC Bank has been reporting consistent growth in bottom line over the past
few years. The bank also scores over rivals in terms of strong asset quality
with near zero NPAs.

HDFC Bank reported a net profit of Rs 183.53 crore for Q1 June 2005 – up 31%
compared to Rs 139.97 crore in Q1 June 2004. Net interest income rose 31.3%
to Rs 523.69 crore from Rs 398.79 crore.

FII holding in the scrip as at 30 June 2005 was 31.45%

Car major Maruti Udyog (MUL) surged for the second day, following a hike in car prices and another expected hike at the year-end

The stock was up 3.2% to Rs 596.90. 4.8 lakh shares changed hands in the
counter on BSE by one and half hours of trade on BSE.

The stock currently trades close to its all time high.

On Monday (3 October 2005), the stock jumped 3.5% to Rs 578.35 following the
announcement of price hike.

The MUL scrip witnessed high volatility in the past few days 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.

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

MUL 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 and
increase in input costs. The company did not raise prices of its recently
launched Swift compact.

MUL sold 49,278 vehicles in September 2005, 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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