Thursday, October 13, 2005

Market breadth weakens further


The market proved subdued in morning trade and software majors Infosys and
TCS both pared early gains. Gujarat Ambuja Cements (GACL) was below par and
so was ACC, which is announcing Q2 results today.

Profit taking pulled down ITC, ONGC, Maruti Udyog, Bajaj Auto, L&T, and
Hindalco. HDFC Bank was on the downside, following a fall in its ADR on
Thursday. ICICI Bank pared gains.

Market breadth only worsened as trading progressed. 1,715 stocks declined on
BSE as compared to 400 stocks that rose. 52 scrips were unchanged. Losers
outpaced gainers by a ratio of 4.2:1.

Side counters that rose included Kalindee Rail Niman, Pitti Laminations,
Yuken India, Torrent Gujarat Biotech, Aptech, Wimco, Mastek, Mukand,
MRO-TEK, Balkrishna Industries, Apar Industries, Infotech Enterprises,
Bombay Burmah, Nahar Industrial Enterprises, Dwarikesh Sugar, Praj
Industries, Bhartiya International, and Mphasis BFL.

Steel major Sail recovered after Thursday’s sharp fall.

At 11:10 IST, the Sensex was down 57 points at 8,319.

Gujarat Ambuja Cements (GACL) lost 2.7% to Rs 70.40. ACC shed 0.4% to Rs
464.25. ACC unveils its Q2 results later in the day. Market men expect
strong Q2 results from the cement major on the back of firm cement prices.

Car major Maruti Udyog lost 2.5% to Rs 543.90 extending a recent fall . 1.8
lakh shares changed hands in the counter on BSE.

Copper and aluminium major Hindalco dropped for the second day in a row. The
stock shed nearly 3% to Rs 133.10 in the wake of increasing concern that the
strong upsurge in global commodity prices might be on the verge of slowing
down.

HDFC Bank lost 2% to Rs 664 after its ADR plunged 4.4% on Thursday to $
46.20.

Cigarette major ITC shed 1.7% to Rs 126. 7.2 lakh shares changed hands in
the counter on BSE.

ICICI Bank (down 0.3% to Rs 524) slipped into the red. The stock came off
the day’s high of Rs 535. 2.4 lakh shares changed hands in the counter on
BSE. ICICI Bank’s net profit has risen 31% in Q2 September 2005 to Rs 580
crore from Rs 442 crore in Q2 September 2004. Net interest income has risen
39% to Rs 953 crore.

Sail gained 1.3% to Rs 58.10. 12.9 lakh shares changed hands in the counter
on BSE.

India Cements moved lower by 2.6% to Rs 97.35 following reports that the
cement major has raised $ 100 million by way of a GDR issue.

Tata Sponge Iron flopped 8.6% to Rs 152.50 after it reported dismal Q2
September 2005 results. Tata Sponge Iron’s net profit has fallen steeply by
48.7% to Rs 5.54 crore in Q2 September 2005 from Rs 10.81 crore in Q2
September 2004. Net sales improved by 4.1% to Rs 52.19 crore from Rs 50.12
crore.

source:capitalmarket

Cement major ACC lost 0.8% to Rs 462.50 in a weak market ahead of the announcement of Q2 September 2005 results.


The market extended Thursday’s 164-point fall. The Sensex was down 74 points
at 8,302.

ACC had already cooled off in the past few days ahead of the results
announcement. From a lifetime closing high of Rs 496.05 on 5 October 2005,
the stock declined to Rs 466.45 by 13 October 2005.

ACC is announcing its Q2 results today.

ACC is expected to report strong Q2 results on the back of firm cement
prices. Cement prices held firm this monsoon season mainly on the back of
strong demand from rural housing. The average All-India cement prices during
Q2 September 2005 rose 3-4% when compared to the same period last year. ACC
has high sensitivity to cement prices.

Two brokerages expect ACC’s stand alone net profit at between Rs 87.50 crore
to Rs 88.80 crore for Q2 September 2005 compared to a net profit of Rs 78.56
crore in Q2 September 2004. Sales are expected at between Rs 967.40 crore to
Rs 1,190.60 crore compared to Rs 885.28 crore in Q2 September 2004.

Tata Sponge Iron slumps on disappointing Q2 outcome


Tata Sponge Iron flopped nearly 8% to Rs 153.80 after the company came out
with dismal Q2 September 2005 results.

46,189 shares changed hands in the counter on BSE by the first few minutes
of trade.

The results hit the market after trading hours on Thursday (13 October
2005).

The stock had retreated from higher level ahead of the results announcement
in weak market. From a high of Rs 186.25 on 19 September 2005, the stock had
declined to Rs 166.85 by 13 October 2005.

Earlier, the stock spurted during early August 2005 to mid-September 2005.
From 151.95 on 3 August 2005, the stock had surged 22.5% to Rs 186.25 on 19
September 2005.

Tata Sponge Iron’s net profit has declined sharply by 48.7% to Rs 5.54 crore
in Q2 September 2005 from Rs 10.81 crore in Q2 September 2004. Net sales
rose 4.1% to Rs 52.19 crore from Rs 50.12 crore.

Tata Sponge makes sponge iron, which is an intermediary product used in the
making of steel. The company is expanding capacity to tap the growing
demand. The company is expanding capacity to 3.90 lakh tonnes per annum from
the current 2.4 lakh tonnes per annum

ICICI Bank inches ahead on strong Q2 results


ICICI Bank gained 0.8% to Rs 529.90 on the back of strong Q2 September 2005
results.

27,910 shares changed hands in the counter on BSE.

The stock came sharply off the higher level since late September 2005 after
the company said that it is considering a fresh equity issue. From a
lifetime closing high of Rs 600.35 on 30 September 2005, the stock plunged
to Rs 525.60 by Thursday 13 October 2005 on the eve of the announcement of
Q2 results. The results hit the market after trading hours on 13 October
2005.

Earlier, the stock had spurted on expectation of strong Q2 results. From a
low of Rs 471.75 on 29 August 2005, the stock had surged to a lifetime
closing high of Rs 600.35 on 30 September 2005.

ICICI Bank’s net profit has risen 31% in Q2 September 2005 to Rs 580 crore
from Rs 442 crore in Q2 September 2004. The net interest income has risen
39% to Rs 953 crore. Net interest income was boosted by corporate and
farm-loan demand as well as by retail lending such as mortgages and personal
loans. Fee income, comprising revenues from advisory services and
consultancy to corporate clients, jumped 31% to Rs 704 crore.

ICICI Bank has also announced a major fund raising programme. The bank will
raise Rs 7,000 crore ($ 1.6 billion) from a public issue and ADR issue with
a further greenshoe option of 15%.

The bank proposes to enhance its equity capital as a proactive move to
leverage business opportunities, maintain appropriate regulatory
capitalisation levels and move towards global benchmarks of scale, ICICI
Bank said in a statement. New regulations have been introduced on the
capital adequacy requirement for banks, requiring additional capital for
credit and market risk. Capital for operational risk will be required from
fiscal 2007 under Reserve Bank of India's roadmap for transition to the
Basel II capital framework.

Sensex plunges 164 points on weak global markets, setback to Indian ADRs


Weakness across global equities and a board-based fall in Indian ADRs on
Wednesday triggered a sell-off on the Indian bourses today. Auto, IT and
metal stocks led the fall. Most blue chips ended in the red and a host of
small-cap, mid-cap and penny stocks lost ground.

The 30-share BSE Sensex plunged 163.66 points or 1.9% to 8,376.90. The S&P
CNX Nifty lost 52.25 points or 2% to 2,537.30

Asian and European stocks stepped lower on Thursday with tech counters
undermined by a fall in their US peers after disappointing results from
Apple Computer Inc. US stocks dropped on Wednesday, with the three major
stock indexes sinking to near 5-month lows after Apple Computer Inc. posted
disappointing revenues, while heightened fears of rising interest rates hurt
investor sentiment.

Back home, volatility was high. The Sensex plunged about 110 points within
minutes of commencement of trading, tracking weak global markets and a
setback in Indian ADRs on Wednesday. The market recovered from the lower
level later but a sell-off gripped the bourses once again in the last 45
minutes or so of trading.

Market breadth was quite weak. 1,742 stocks declined on BSE as compared to
729 stocks that rose. 52 stocks were unchanged. Losers outpaced gainers by a
ratio of 2.3:1. The BSE Small-Cap Index lost 47.16 points or 0.84% to
5,579.18. The BSE Mid-Cap Index lost 29.85 points or 0.72% to 4,113.01.

The BSE clocked a turnover of Rs 2,873 crore compared to Tuesday’s Rs 2,814
crore.

Ranbaxy plunged nearly 7% to Rs 455 after the UK High Court on Wednesday
dismissed Ranbaxy’s legal challenge to the main patent protecting Pfizer’s
Lipitor. The stock declined on huge volume of 31.5 lakh shares.

Metal shares declined amid concern that a strong run for global commodity
prices might be about to slow down. Copper and aluminium major Hindalco lost
3.1% to Rs 136.95. 7.1 lakh shares changed hands in the counter on BSE.
State run aluminium major National Aluminium Company shed 2% to Rs 169.50
and Sterlite Industries lost nearly 2% to Rs 830.

Copper prices on the London Metal Exchange (LME) have come off all-time
highs earlier this week on profit taking and fears of fund liquidation,
although platinum is still gaining, hitting its highest level since March
1980.

Tisco lost 4.5% to Rs 376 and Sail plunged 6.6% to Rs 57.25.

Software shares dipped on profit taking tracking weakness in ADRs of IT
pivotals. Infosys shed 2.5% to Rs 2,615.10, Satyam Computer lost 2.7% to Rs
582.70, Wipro lost 2.4% to Rs 388.40 and TCS shed 2.1% to Rs 1,437.

Index heavyweight Reliance Industries lost 1.7% to Rs 774.15. 28.7 lakh
shares changed hands in the counter on BSE.

source:capitalmarket

Sterling Biotech infused with vigour


Gelatin maker Sterling Biotech rose nearly 2% to Rs 144 after the company
said it had signed a memorandum of understanding to buy Torrent Gujarat
Biotech’s Baroda plant for Rs 55 crore in an all cash deal.

18.5 lakh shares changed hands in the counter on BSE.

There has been a marked increase in trading volumes in the stock since late
August 2005.

Sterling Biotech's stock price witnessed a sharp surge during late August
2005-early September 2005. From a low of Rs 121.30 on 29 August 2005, the
stock jumped 36% in a short while to Rs 165.15 on 13 September 2005. The
stock cooled off later to settle at Rs 141.30 by 11 October 2005 ahead of
the announcement.

Sterling said it would use Torrent Gujarat Biotech’s Baroda plant to make
specialised gelatin derivatives and fermentation-based nutraceuticals

Sterling Biotech is Asia's largest pharmaceutical gelatin manufacturer. It
is a leading player in India with a market share of around 60%. The company’
s products find usage in the making of hard and soft capsules, vitamin
encapsulation, blood plasma expander and tablet binding in the
pharmaceutical industry.

Earlier, the company acquired Rallis India's gelatin business for Rs 47
crore in an all-cash deal.

Sterling Biotech reported a 53.6% growth in net profit for Q1 ended 30 June
2005 to Rs 26.64 crore (Rs 17.34 crore). Net sales during the quarter rose
22.7% to Rs 120.03 crore (Rs 97.80 crore).

Mastek plunged 6.7% to Rs 487 even as the company announced decent growth in Q1 September 2005 net profit


The results were more or less in line with market expectations.

1.7 lakh shares changed hands in the counter on BSE.

The Mastek scrip had spurted since early September 2005. From a recent low
of Rs 419.65 on 8 September 2005, the stock had spurted to Rs 522.50 by 11
October 2005 on the eve of the results announcement.

Mastek’s consolidated net profit rose 23.5% in Q1 September 2005 to Rs 15.02
crore from Rs 12.16 crore in Q1 September 2004. Total income rose 17.2% to
Rs 153.09 crore (Rs 130.55 crore).

For the October-December 2005 quarter, Mastek expects consolidated net
profit of between Rs. 15.3 to Rs 16.3 crore – a sequential growth of between
1.8% to 8.5%. It expects Q2 income at between Rs 159 crore to Rs 164 crore –
a sequential growth of between 3.8% to 7.1%.

Meanwhile, Mastek said it had acquired U.S.-based company.

Sterling Biotech infused with vigour


Gelatin maker Sterling Biotech rose nearly 2% to Rs 144 after the company
said it had signed a memorandum of understanding to buy Torrent Gujarat
Biotech’s Baroda plant for Rs 55 crore in an all cash deal.

18.5 lakh shares changed hands in the counter on BSE.

There has been a marked increase in trading volumes in the stock since late
August 2005.

Sterling Biotech's stock price witnessed a sharp surge during late August
2005-early September 2005. From a low of Rs 121.30 on 29 August 2005, the
stock jumped 36% in a short while to Rs 165.15 on 13 September 2005. The
stock cooled off later to settle at Rs 141.30 by 11 October 2005 ahead of
the announcement.

Sterling said it would use Torrent Gujarat Biotech’s Baroda plant to make
specialised gelatin derivatives and fermentation-based nutraceuticals

Sterling Biotech is Asia's largest pharmaceutical gelatin manufacturer. It
is a leading player in India with a market share of around 60%. The company’
s products find usage in the making of hard and soft capsules, vitamin
encapsulation, blood plasma expander and tablet binding in the
pharmaceutical industry.

Earlier, the company acquired Rallis India's gelatin business for Rs 47
crore in an all-cash deal.

Sterling Biotech reported a 53.6% growth in net profit for Q1 ended 30 June
2005 to Rs 26.64 crore (Rs 17.34 crore). Net sales during the quarter rose
22.7% to Rs 120.03 crore (Rs 97.80 crore).

Everest Industries builds on strong Q2 results


Everest Industries jumped 5.3% to Rs 177 on the back of strong Q2 September
2005 results.

7,212 shares changed hands in the counter on BSE by afternoon trade.

The stock lost 2% on Tuesday (11 October 2005) to Rs 168.05 after the
results had hit the market after trading hours on 10 October 2005.

Over the past few months, the stock was volatile due to alternate bouts of
buying and selling. The scrip moved between a low of Rs 171 to a high of Rs
193 since late July 2005.

Everest Industries recorded 34% rise in net profit for Q2 September 2005 to
Rs 4.82 crore. Net sales rose 15% to Rs 50.99 crore.

Everest Industries is engaged in the manufacture of fibre based cement
products including sheets for roofing and interiors and non asbestos flat
sheets for varied applications including pre-fab housing.

In June this year, the company had signed up a technological tie up with
Brazil-based Brasilit Ind e Com Ltd, a wholly owned company of Saint Gobain.

Select stocks in the positive


Select stocks did well through to early afternoon trade even as the Sensex
failed to sustain the higher level. Two index heavyweights Reliance
Industries and Infosys could not keep up with the earlier momentum. Stocks
like Dr Reddy’s Laboratories, Tisco, and Hero Honda moved lower.

Cement stocks like ACC and Gujarat Ambuja Cements (GACL) could not hold on
to earlier highs.

Select stocks, however, impressed. EIH, Arvind Mills, GHCL, Centurion Bank,
Escorts, IDBI, Jindal Stainless, Insilco, Pfizer, Wartsila India, Financial
Technologies, Aegis Logistics, Elecon Engineering, Everest Industries and
Mahindra & Mahindra moved strong.

Though the market breadth was positive, it weakened when compared to morning
trade. 1,140 stocks advanced on BSE as compared to 1,135 stocks that
declined. 67 scrips were unchanged. The advance decline ratio was a stable
around 1:1. However, morning trades saw a much better ratio, of 1.2:1.

By 12:28 IST, the Sensex had fallen 40 points to 8,499.89. The Sensex
plunged over 100 points within minutes of commencement of trading, tracking
weak global markets and a setback in Indian ADRs on Wednesday. The market
recovered from the lower level later.

Reliance Industries dipped 0.7% to Rs 782.50. 14.1 lakh shares changed hands
in the counter on BSE.

Infosys weakened by 1.2% to Rs 2,651. A sharp fall in the ADR on Wednesday
weighed on the counter. The Infy ADR had flopped 4.4% on Wednesday to $
71.46.

Saytam Computer (down 0.7% to Rs 594.50) failed to keep up with the earlier
momentum. A sharp fall in its ADR on Wednesday hurt the stock. Satyam
Computer ADR dropped 4% on Wednesday to $ 29.39.

TCS inched lower by 0.25% to Rs 1,464 on profit taking despite the company
reporting strong Q2 results. TCS, on Tuesday, reported strong Q2 results - a
net profit of Rs 694 crore for Q2 September 2005 (up 20.5%) compared to a
net profit of Rs 576 crore in Q2 September 2004. On a sequential basis, net
profit advanced over 10%. Revenues marched up 23% to Rs 2,982 crore.
Sequentially, on a quarter-on-quarter basis, revenue climbed 10.2%.

ICICI Bank edged up just 1% to Rs 543.90 ahead of its Q2 results and in
advance of that board meeting that will decide on a fresh issue of equity
capital. The stock nudged up 1% to Rs 543.90. 4.2 lakh shares chagned hands
in the counter on BSE.

Ranbaxy (down 7.5% to Rs 452) moved downward after the UK High Court on
Wednesday dismissed Ranbaxy’s legal challenge to the main patent protecting
Pfizer’s Lipitor. The stock declined on high early volume of over 15.5 lakh
shares.

Dr Reddy’s Laboratories dropped 4% to Rs 899.

Cigarette major ITC climbed 2.1% to Rs 130.40 on expectation of strong Q2
results. The stock rose on high volume of 12.5 lakh shares.

Siemens made headway by 2% to Rs 2,540 after the company said it has bagged
a large overseas order

Mphasis BFL moved upstream by 1.5% to Rs 263.90 on strong Q2 results and the
fixing of bonus record date.

Biotech major Biocon spurted 5% to Rs 511. 3.9 lakh shares changed hands in
the counter on BSE

Mahindra & Mahindra nudged up 0.8% to Rs 384. 76.026 shares changed hands in
the counter on BSE.

source: capitalmarket

Tata Tea gains on acquisition of a US specialty tea brand


Tata Tea rose 1.2% to Rs 823 after the company said it would acquire US
specialty tea brand Good Earth Teas.

12,770 shares changed hands in the counter on BSE.

Ahead of the announcement, Tata Tea shares lost 1.2% on Tuesday (11 October
2005) to Rs 812.75. From a lifetime closing high of Rs 865.55 on 26
September 2005, the stock had slipped to Rs 812.75 by 11 October 2005.

Earlier, the stock spurted during mid-May 2005 to mid-August 2005.

Good Earth is one of the fastest growing specialist tea brands in the US,
with particular strength on the West Coast. It has a 3.7% share of the US
specialty tea market. Good Earth sells herbal, fruit-flavoured, medicinal
and traditional teas.

Good Earth will continue to blend and pack teas at its base in Santa Cruz,
California and Good Earth teas will continue to trade under the Good Earth
brand name, Tata Tea said.

In its strategic move to focus on branded tea, Tata Tea recently transferred
its 16 estates in south India to a newly formed company. Further, the
company’s board has approved the merger of Tata Tetley, which is a 100%
subsidiary of the company, with the company.

Mphasis BFL rose 2.1% to Rs 265.35 on solid Q2 results and the fixing of bonus record date


The stock bounced back from the lower level since late September 2005. From
a low of Rs 241.95 on 22 September 2005, the stock surged 7.3% to Rs 259.80
by 11 October 2005 on the eve of the results announcement. The results were
announced after trading hours on 11 October 2005. The market was closed on
12 October 2005 on account of Dasera.

Earlier, the stock had plunged 5.6% in a single trading session on 22
September 2005 to Rs 241.95 in a weak market.

Mphasis has reported a 28% year on year growth in Q2 September 2005
consolidated net profit to Rs 40.16 crore from Rs 31.51 crore in Q2 Septembe
2004. Revenue rose 18% to Rs 228 crore.

Mphasis, whose clients include Citigroup, left its earlier declared
full-year guidance (for the fiscal year to March 2006) unchanged. 15 new
entities were added to the company's client list, with 12 coming to the
software segment and three added to the back-office services segment.

The company said its back-office business showed flat revenue and profit
growth over the previous quarter while software revenue was up 5.5 percent
on a quarter-on-quarter basis.

Meanwhile, Mphasis has fixed 14 November 2005 as record date for issue of
1:1 bonus shares.

Large export order win powers Siemens higher


Siemens gained 2.1% to Rs 2,543 after the company said it has bagged a large
overseas order.

7,244 shares changed hands in the stock on BSE by early afternoon trade.

The stock lost 1.3% on Tuesday (11 October 2005) on the eve of the
announcement to Rs 2,490.05.

The last few months saw the stock gallop on the back of strong order flow
and a healthy order book position. From a recent low of Rs 1,946.65 on 30
June 2005, the stock spurted to Rs 2,490.05 by 11 October 2005.

Siemens on Tuesday said it has bagged a turnkey export order from Qatar
General Electricity and Water Corporation (KAHRAMAA). The contract is for
the development of Power Transmission Network in Qatar. The scope of
supplies and services of the company is approximately Rs 1,390 crore,
Siemens said. The scope of the order covers setting up of new 16 High
Voltage Substations and laying of approximately 600 kms of high voltage
cables. The order is required to be executed within a period of 22 months,
it said.

At the end of Q3 June 2005, Siemens’ unexecuted order value as of June 30,
2005 stood at a robust Rs 3446.30 crore compared to Rs 1926.70 crore as on
June 30, 2004.

For Q3 June 2005, Siemens reported 11% growth in net profit to Rs 39.54
crore, on 34% growth in sales to Rs 597.44 crore.

Siemens AG holds 54.63% stake in Siemens, which supplies equipment and
solutions to power generation, transmission and distribution companies.

Orchid Chemicals gains on robust Q2 results


Orchid Chemicals & Pharmaceuticals rose 2% to Rs 286.40 on the back of
heartwarming Q2 September 2005 results.

The stock rose on high volume of 5.4 lakh shares on BSE.

The market had probably got an inkling of the strong Q2 results as the stock
spurted in the run up to the announcement. From a low of Rs 229.50 on 22
September 2005, the stock jumped 22.2% to a multi-year closing high of Rs
280.65.

Orchid’s Q2 net profit has jumped 588% to Rs 27.21 crore (Rs 3.95 crore).
The top line growth has led the bottom line growth. Total income has risen
46% to Rs 240.42 crore (Rs 164.37 crore).

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