Wednesday, October 05, 2005

Weak global markets infect Sensex


Concerns that FII inflow may slow down due to weakness in the Indian rupee
against the US dollar and a subdued to weak trend in global markets
triggered a correction on the bourses today. A host of small- and mid-cap
stocks meandered lower, and some side counters like Voltas and GE Shipping
proved volatile.

Select stocks made headway on renewed buying in an otherwise subdued market.

The 30-share BSE Sensex lost 75.49 points or 0.8% to 8,724.47. The S&P CNX
Nifty shed 18.95 points or 0.71% to settle at 2,644.40.

Asian and European stocks were in decline on Wednesday, aping their US
counterparts following comments from three Fed officials who made it quite
clear that the US central bank will keep raising interest rates to keep
inflation at bay.

Turnover declined on BSE, at Rs 3,336 crore compared to Tuesday’s Rs 3,835
crore.

The weakening of the rupee against the dollar has set off fears that FII
inflows into India may slacken. The rupee struck a fresh 10-month low today
before recovering from the lower level. FII inflows have beem a telling
influence on the how the Indian bourses moved (upward) this year. The
cumulative FII inflow in calendar 2005 has reached $ 8.65 billion (till 4
October 2005), as compared to an inflow of $ 8.51 billion in whole of
calendar 2004.

The Sensex has been mounting up in the past few days on the back of data
indicating strong GDP growth in Q1 June 2005, a heavy monsoon this year,
along with expectations of robust Q2 September 2005 results. From a recent
low of 8,221.64 on 22 September 2005, the Sensex has spiraled up 578.32
points or 7% in a short while to a lifetime closing high of 8,799.96 on 4
October 2005.

ICICI Bank was the subject of a sell-off today after the private sector bank
said it would consider further issue of equity capital in a board meeting on
13 October 2005. Index heavyweight Reliance Industries (RIL) turned out
volatile, oscillating between positive and negative territory.

Software major Infosys managed a rebound from the lower level as the company
is expected to come out with buoyant Q2 results. Refinery stocks moved
upstream following a sharp fall in global crude oil prices. Buying was
conspicuous in bearings manufacturers, in select IT stocks, and some
power-equipment makers.

Three PSUs – HTM, ITI and MTNL - surged. All the three stocks rose on high
volume.

Zee Telefilms spurted on high volume.

Stocks like Mahindra & Mahindra, NIIT, GSFC, Kennametal Widia, Agro Tech
Foods, Amtek Auto, Rallis India, Bharat Gears, Amtek India, iGate Global
Solutions, Sri Adhikari Brothers, Kinetic Engineering, MM Forgings, Shanthi
Gears, FAG Bearings, BASF India, Dabur Pharma, Tamil Nadu Newsprint, Sasken
Communication, Wartsila and Blue Dart Express rose between 3% to 8% for the
day.

ICICI Bank plunged 4.4% to Rs 563.50. 6.7 lakh shares changed hands in the
counter on BSE.

ITC lost 3.5% to Rs 131.75. The stock declined on huge volume of 69.5 lakh
shares.

The launch of its first scooter model failed to boost Hero Honda. The stock
lost 1.4% to Rs 752.05.

Hindalco shed 1.7% to Rs 150 and Tata Steel lost 2% to Rs 423.75.

RIL lost 0.5% to Rs 801.55. 17.4 lakh shares changed hands in the counter on
BSE.

Media major Zee Telefilms jumped 6% to Rs 186.80. The stock rose on high
volume of 36.3 lakh shares. Zee said on Tuesday it has appointed Jagjit
Singh Kohli as the CEO of Siticable Network Ltd, a subsidiary of the
company. Jagjit Singh Kohli is a cable industry veteran with 20 years
experience in various capacities. Kohli founded INCablenet, and pioneered
the corporatisation of the cable industry and the MSO concept.

Software bellwether Infosys rose 0.8% to Rs 2,651.55. The software major
unveils its Q2 results on 11 October 2005.

Ranbaxy gained 2% to Rs 513. 3.7 lakh shares changed hands in the counter on
BSE.

NTPC rose 1.5% to Rs 107.90. 14.7 lakh shares changed hands in the counter
on BSE.

Expectations of a hike in cement prices boosted cement scrips. Grasim (up
1.4% to Rs 1,360), Gujarat Ambuja Cements (GACL) (up 0.79% to Rs 76.85) and
ACC (up 0.4% to Rs 496.40). ACC staged a solid rebound from the lower level.
It recovered from the day’s low of Rs 485.10.

HMT leaped up 16.6% to Rs 106.30. The stock rose on huge volumes of 66.9
lakh shares. ITI advanced 6% to Rs 72.60. 37.4 lakh shares changed hands in
the counter on BSE.

MTNL climbed 3.7% to Rs 140.60. 16.7 lakh shares changed hands in the
counter on BSE. From a recent low of Rs 127.50 on 30 September, MTNL has
risen 10.2% in the past three trading sessions.

IT education major NIIT spurted 8% to Rs 348.10. 3.7 lakh shares changed
hands in the counter on BSE.

M&M advanced 3% to Rs 405.70. 6.9 lakh shares changed hands in the counter
on BSE. The stock rose for the third day in a row today boosted by strong
September vehicle sales.

Chemfab Alkalis flopped 8% to Rs 177 following the announcement of Q2
September 2005 results. For Q2 September 2005, Chemfab Alkalis reported a
23.2% growth in Q2 September 2005 net profit to Rs 3.50 crore compared to Rs
2.84 crore in Q2 September 2004. A sharp surge in tax provision (including
deferred tax provision of Rs 1.10 crore) restricted the growth in bottom
line. Net sales rose 22.4% to Rs 22.34 crore (Rs 18.24 crore).

source:capitalmarket

Deceleration in FII inflows, subdued global markets prompt 75-point drop in Sensex


Figures indicating a slowdown in FII inflow in the past few days and a
subdued to weak trend in global markets triggered profit taking on the
domestic bourses today. A host of small- and mid-cap stocks moved lower, and
some side counters like Voltas and GE Shipping proved volatile.

Select stocks made headway on renewed buying in an otherwise weak market.

ICICI Bank was the subject of a sell-off after the private sector bank said
it would consider further issue of equity capital in a board meeting on 13
October 2005. Index heavyweight Reliance Industries (RIL) turned out
volatile, oscillating between positive and negative territory.

Software major Infosys managed a rebound from the lower level as the company
is expected to come out with buoyant Q2 results. Refinery stocks moved
upstream following a sharp fall in global crude oil prices. Buying was
conspicuous in bearings manufacturers, in select IT stocks, and some
power-equipment makers.

Three PSUs – HTM, ITI and MTNL - surged. All the three stocks rose on high
volume.

Zee Telefilms spurted on high volume. Stocks like Mahindra & Mahindra, NIIT,
GSFC, Kennametal Widia, Agro Tech Foods, Amtek Auto, Rallis India, Bharat
Gears, Amtek India, iGate Global Solutions, Sri Adhikari Brothers, Kinetic
Engineering, MM Forgings, Shanthi Gears, FAG Bearings, BASF India, Dabur
Pharma, Tamil Nadu Newsprint, Wartsila and Blue Dart Express rose between 3%
to 8% for the day.

The 30-share BSE Sensex lost 75.49 points or 0.8% to 8,724.47.

Asian and European stocks slipped on Wednesday in line with their US peers
after comments from three Fed officials made it clear that the US central
bank will keep raising interest rates to keep inflation at bay.

Turnover declined on BSE. BSE clocked a turnover of Rs 3,336 crore compared
to Tuesday’s Rs 3,835 crore.

ICICI Bank plunged 4.4% to Rs 563.50. 6.7 lakh shares changed hands in the
counter on BSE.

ITC lost 3.5% to Rs 131.75. The stock declined on huge volume of 69.5 lakh
shares.

The launch of its first scooter model failed to boost Hero Honda. The stock
lost 1.4% to Rs 752.05.

Hindalco shed 1.7% to Rs 150 and Tata Steel lost 2% to Rs 423.75.

RIL lost 0.5% to Rs 801.55. 17.4 lakh shares changed hands in the counter on
BSE.

Media major Zee Telefilms jumped 6% to Rs 186.80. The stock rose on high
volume of 36.3 lakh shares. Zee said on Tuesday it has appointed Jagjit
Singh Kohli as the CEO of Siticable Network Ltd, a subsidiary of the
company. Jagjit Singh Kohli is a cable industry veteran with 20 years
experience in various capacities. Kohli founded INCablenet, and pioneered
the corporatisation of the cable industry and the MSO concept.

Software bellwether Infosys rose 0.8% to Rs 2,651.55.

source:capitalmarket

Zee Tele sees intense activity


Zee Telefilms leaped up 7.6% to Rs 189.40, and managed to garner substantial
volumes of 30.94 lakh shares on BSE as well.

The stock has been volatile today, moving in a range of Rs 192.65 and Rs
174.75 so far on the BSE.

The stock slipped form the close of Rs 199 on 15 September 2005 to close at
Rs 172.60 on 3 October 2005. Also the volumes have jumped significantly in
the past couple of sessions.

Zee Telefilms has appointed Jagjit Singh Kohli as the CEO of Siticable
Network Ltd, a subsidiary of the company. Jagjit Singh Kohli is a cable
industry veteran with 20 years of experience in various capacities. Kohli
founded INCablenet and pioneered the corporatisation of the cable industry
and the MSO concept.

Also Zee Telefilms, in response to media reports on the company's plan to
hive off its cable TV unit into a separate company, has said that, as on
date, it has not yet finalised any plans at restructuring the company’s
business. It, therefore, denied the news to that extent.

Last month, Zee Telefilms proposed to transfer the company's news and
current affairs wing to Zee News.

Zee Network also signed a pact with Sydney-based PanGlobal TV for
broadcasting five channels aimed at an estimated 45,000 South Asian families
in Australia and New Zealand. This will be done through PanAmSat's PAS-8
Pacific Ocean Region satellite.

PanGlobal provides DTH multi-ethnic programming. This is a one-year old
marketing alliance between PanAmSat and Globecast Australia. Globecast
offers various transmission services to broadcasters seeking out Australia's
diverse communities.

On a consolidated basis, for the quarter ended September 2005, media major
Zee Telefilms turned out a solid 24.64% jump in sales to Rs 347.09 crore
compared to Rs 278.69 crore in the previous corresponding quarter. Profit
after tax slumped 12.61% to Rs 77.85 crore, against Rs 69.13 crore in the
previous corresponding quarter.

Tata Power gains on power project move


Tata Power firmed up 1.4% to Rs 485.85 on volumes of 2.74 lakh shares.

The high and low for the counter so far was Rs 492.50 and Rs 478.10

The stock has moved higher from the close of Rs 429.85 on 22 September 2005 to close at Rs 483.15 on 30 September 2005 on sustained buying interest.

Tata Power today announced the signing of an MoU with the Government of Jharkhand as a comprehensive measure to evaluate the setting up of generation capacities at various sites with a potential of around 3000 MW along with captive coal mining facilities and associated distribution circles in the state of Jharkhand.

Further, the company will also carry out pre-feasibility studies within three months from the date of the MoU to decide the site/s for the proposed power project/s along with captive coal mines.

Tata Power has an installed power generation capacity of 428 MW in Jharkhand today, comprising three units of 308 MW and the most recent being the Unit 4 of 120 MW synchronized on 23 September 2005.

Tata Power is exploring opportunities in the nuclear power generation segment especially after the recent Indo-US nuclear initiative. Tata Power possesses the engineering expertise with regards to nuclear power generation.

Tata Power is mainly involved in generation, transmission and bulk distribution of power in Mumbai and surrounding areas, but is slowly extending its reach at home and abroad. It is also the largest private sector power producer in India with an installed generation capacity of 2203 MW.

Tata Power is also looking at setting up a 500 MW plant in South Africa at an investment of Rs 2,000 crore, with an international joint venture partner.

For the quarter ended 30 June 2005, the company posted a 16.49% rise in net profit to Rs 118.40 crore (Rs 101.64 crore). Net sales increased 1.1% to Rs 1098.75 crore (Rs 1086.85 crore).

Sun Pharma's overseas designs prop up the stock


Sun Pharma is up 0.62% to Rs 665.05 on volumes of 6897 shares.

The stock underwent a steady uptrend from Rs 642.50 on 23 September 2005 to Rs 665.25 on 30 September 2005.

The stock moved higher today following the company's plans for a series of filings involving other international markets, including the US and Europe, for bulk actives as well as formulations from its new facility in Hungary. This facility was recently bought through the company's wholly owned subsidiary from Valeant Pharmaceuticals. Annual sales from this site were about $20mn.

The 170-acre site has facilities spread over 1,75,000 sq ft for the manufacture of bulk actives, with 500 KL capacity and designated areas to make controlled substances. It has a 150,000 sq ft facility for different dosage forms such as film coated and effervescent tablets, capsules, etc. A large 65,000 sq ft research center has labs across synthetic chemistry, instrumentation analytical and structural elucidation.

Product opportunities in the US generic space for creams, ointments and liquids would be addressed out of the facility in Bryan, Ohio. Sun Pharma’s products will be marketed through Caraco in the US.

Sun Pharma expects to make the most of the synergies obtained from the acquisitions through the supply of a large part of some of the products, transferring some manufacturing to India and marketing through Caraco for the US market. For both the acquisitions, while terms have not been disclosed, total deal size, as per sources, is around $ 10 million. The company will undertake capacity upgradation and expansion plans at both plants in due course.

Sun Pharma has a strong presence in niche areas such as psychiatry, neurology, cardiology, diabetology, and gastroenterology.

The company expects 20-30% revenue growth in FY 2006.

The consolidated net profit jumped 54% to Rs 136.34 crore (Rs 88.40 crore). On a consolidated basis, the company came up with a 34% increase in total operating income (including sales and other operating income) to Rs 421.76 crore in the quarter ended June 2005.


Market weakens; ICICI Bank slips


Hindalco and ITC weakened in afternoon trade whereas ICICI Bank declined
sharply. Stocks like Bajaj Auto, Hindustan Lever and State Bank of India
lost ground. Index heavyweight Reliance Industries (RIL) was range bound.

The market breadth weakened further in afternoon trade. 1,707 stocks
declined on BSE as compared to 769 stocks that rose. 45 scrips were
unchanged. Losers outpaced gainers by a ratio of 2.2:1

At 13:24 IST, Sensex was down 37 points at 8,762.

Figures showing a slowdown in FII inflow in the past few days and subdued to
weak trend in global markets triggered profit taking on the domestic bourses
today. Asian and European stocks slipped on Wednesday in line with their US
peers after comments from three Fed officials made it clear the US central
bank will keep raising interest rates to keep inflation at bay.

ICICI Bank lost 1.6% to Rs 579.75. 2.9 lakh shares changed hands in the
counter on BSE. ICICI Bank today said it will consider a proposal for
further issue of equity shares in a board meeting on 13 October 2005.

State Bank of India shed 1% to Rs 947.55 and HDFC Bank shed 1% to Rs 702.40.

Cigarette major ITC lost 2% to Rs 133.95. The stock declined on huge volume
of 30.9 lakh shares on BSE.

Copper and aluminium major Hindalco shed 1.9% to Rs 149.80. 5.4 lakh shares
changed hands in the counter on BSE.

FMCG major Hindustan Lever lost 1.1% to Rs 181.50, Tata Motors shed 1.1% to
Rs 562.80 and Bajaj Auto lost 1% to Rs 1,791

Ranbaxy held firm. The stock was up 2% to Rs 513.50. 2.6 lakh shares changed
hands in the counter on BSE.

NTPC and Tata Power, too, held firm. The stock was up 1.4% to Rs 107.85. 8.2
lakh shares changed hands in the counter on BSE. Tata Power rose 1.8% to Rs
488.

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