Tuesday, October 18, 2005

High volatility as Sensex swings 249 points


Concerns that FII inflow may slowdown due to expectation of increase in US
interest rates and due to falling rupee, pulled the market down further in a
highly volatile trade today. The rupee fell to an 11-month low of 45 against
the dollar.

The 30-share BSE Sensex lost 80.37 points or 98% to 8,122.25 – its lowest
level in more than one month since 9 September 2005. The S&P CNX Nifty shed
16.95 points or 0.68% to 2,468.20

The market witnessed a sell-off towards the last half an hour of trade and
the Sensex plunged as much as 134.71 points to hit a low of 8,067.91 at the
fag end of the trading session.

The market opened on a firm note and the Sensex surged over 100 points at
one point of time in early trade. The Sensex came off the higher later. For
the day, the barometer index swung 249.47 points between a low of 8,067.91
and a high of 8,317.38.

BSE clocked a turnover of Rs 2,761 crore, slightly higher than Monday’s Rs
2,740 crore.

The market breadth turned quite weak in the latter part of the trading
session. 1,621 stocks declined on BSE as compared to 773 stocks that rose.
42 scrips were unchanged. Losers outpaced gainers by a ratio of 2:1.

The latest data released by Sebi showed that FIIs sold shares worth a net Rs
299.10 crore on Monday (17 October 2005) – the day when the Sensex ended
flat amid divergent trend in Sensex constituents. In the month of October
2005, FIIs have sold shares worth a net Rs 1,006.70 crore (till 17 October
2005). Global emerging markets have witnessed outflow of funds in the past
few days on expectation of increase in US interest rates. A lot of money had
flowed to global emerging markets over the past two years or so due to low
yields in US and Europe. Higher US rates means less foreign capital enters
higher-yielding but riskier emerging markets in search of better returns.

On the back of selling by FIIs, Sensex has lost 677.71 points or 7.7% in a
short while from its all time closing peak of 8,799.96 on 4 October 2005.

The overall Q2 results that have come in so far have been very impressive.
Software majors Infosys, and TCS have been impressive. Bajaj Auto, ICICI
Bank and HDFC Bank, too, have come up with robust performances. However, the
results of cement major ACC were in striking contrast (dismal) to the
others.

Pharma stocks witnessed a sell-off today.

Among side counters, stocks like Orchid Chemicals, Alembic, Gujarat Fluro
Chemicals, Wockhard, SRF, Amtek Auto, Clariant, Galaxy Entertainment, Hind
Rectifiers, Hindustan Organic Chemicals, IDBI lost between 4% to 8% for the
day.

A number of side counters surged. Stocks like EIH Associated Hotels, Shanthi
Gears, Vishal Exports Overseas, SIC Agencies Corporation, Avaya
GlobalConnect, PSL, TRF, Zuari Industries, Yes Bank, Geometric Software,
Ginni Filaments, Gateway Distriparks, Tricom India, CCL Products, Atlas
Copco, Minda Industries, Rolta India, Suashish Diamond, Batliboi, Thermax,
Eimco Elecon, Simbhaoli Sugar Mills, PHIL Corporation, Pudumjee Paper,
Pidilite, Finolex Industries, Bajaj Auto Finance, Dishman Pharma, DCM
Shriram Consolidated, Bharat Earth Movers, Balrampur Chini Mills, HMT and
Taj GVK Hotels rose between 3% to 15% for the day.

Stocks like Petronet LNG, Jindal Stainless, McDowell, Thirumalai Chemicals,
Surya Pharma, Varun Shipping, Torrent Cables, Jaiprakash Associates, Gujarat
Alkalies, Tata Metaliks, edged higher.

Ranbaxy plunged 6% to Rs 413. The stock declined on high volume of 7.3 lakh
shares. Dr Reddy’ Laboratories lost 3% to Rs 848.90, Orchid Chemicals
plunged 8.5% to Rs 234.50, Alembic shed 6.8% to Rs 264, Wockhard lost 5.8%
to Rs 449.95, Unichem Laboratories shed 4.5% to Rs 235.45, Glenmark Pharma
shed 2.3% to Rs 310, and Divi’s Laboratories lost 2% to Rs 1,440.

But Cipla moved in contrast to weakness in pharma stocks. The stock rose
2.6% to Rs 396.50.

Tisco lost 5% to Rs 364.70. 17.9 lakh shares changed hands in the counter on
BSE.

Software shares witnessed selling pressure even as the rupee dropped to an
11-month low of 45 against the dollar. Satyam Computer lost nearly 4% to Rs
548.30, Wipro lost 3% to Rs 370.50, and IT bellwether Infosys shed 2.7% to
Rs 2,516.25.

TCS rose 0.6% to Rs 1,443 after the company said it would take over the
claims processing business of Britain's Pearl Group which is expected to
generate revenue of 486 million pounds ($848 million) over 12 years.

Reliance Industries lost 2.7% to Rs 750.35, Gujarat Ambuja Cements shed 2.8%
to Rs 66.10, State Bank of India shed 2.6% to Rs 900 and ICICI Bank lost
1.4% to Rs 493.50.

Hero Honda gained 2% to Rs 710. Robust Q2 results unveiled by Bajaj Auto
late last week has triggered hopes of a good Q2 showing by Hero Honda. Hero
Honda’s board meets on Thursday (20 October 2005) to consider Q2 results.
The bike major posted a 21% growth in motorcycle sales in Q2 September 2005
on the back of strong rural sales and a good response to its newly launched
125cc motorcycles Glamour.

Car major Maruti Udyog rose 1.3% to Rs 552.10 on bargain hunting after a
recent sharp fall in the counter.

Bharti Tele-Ventures (BTL) gained 0.5% to Rs 321. The scrip rose on renewed
buying on expectation of strong Q2 results.

Nestle surged 3.7% to Rs 840.25. 6,974 shares changed hands in the counter
on BSE.

Bharat Earth Movers jumped nearly 4% to Rs 856.25 after the company said on
Monday that it had signed a preliminary agreement with Korea's Rotem to make
aerobridges.

Gateway Distriparks edged up for the second day in a row on the back of
strong Q2 results. The stock gained nearly 4% to Rs 227.50.

Vishal Exports Overseas jumped 10% to Rs 7.34 – the maximum permissible
level of the day on the back of strong Q2 results. Vishal Exports Overseas
(VEOL) reported 67.8% growth in Q2 September 2005 net profit to Rs 14.47
crore compared to Rs 8.62 crore in Q2 September 2004. Top line growth has
driven bottom line growth. Net sales has risen 83.3% to Rs 878.10 crore (Rs
478.81 crore).

TRF rose for the second day in a row on the back strong Q2 results. The
scrip gained 5% to Rs 173.40.

Batliboi jumped 6% to Rs 93 boosted by strong Q2 results. Batliboi’s net
profit jumped 89.8% in Q2 September 2005 to Rs 3.19 crore (Rs 1.68 crore).
Net sales rose 25.8% to Rs 25.48 crore (Rs 20.25 crore).

Bharat Forge lost 0.35% to Rs 316. Bharat Forge has reported a net profit of
Rs 51.77 crore for Q2 September 2005 a growth of 37% compared to a net
profit of Rs 37.83 crore in Q2 September 2005. Net sales has risen 29.7% to
Rs 376.61 crore (Rs 290.15 crore).

Hexaware Technologies lost 2.6% to Rs 105.45. The stock came sharply off the
day’s high of Rs 114.65. Hexware has reported 45% growth in Q3 September
2005 net profit at Rs 24.06 crore (Rs 16.55 crore). Net sales has risen 20%
to Rs 175.56 crore (Rs 146.19 crore).

Hexaware Technologies said it has raised its full-year net profit guidance
to $ 19.5 million from $18-19 million forecast previously.

Transformers maker EMCO gained 1.8% to Rs 399 on the back of robust Q2
results. EMCO’s net profit jumped 102.8% to Rs 5.07 crore in Q2 September
2005 from Rs 2.50 crore in Q2 September 2004. Net sales rose 36% to Rs 76.15
crore (Rs 55.93 crore).

Bombay Dyeing retreated for the second day in a row today, after the Bombay
High Court on Monday spiked the NTC mill land sale proposal. The stock was
down 4.2% to Rs 318. 1.6 lakh shares changed hands in the counter on BSE.

The Bombay High Court, in a significant decision on Monday, set aside the
sale of 600 acres of surplus textile mill land by the National Textile
Corporation (NTC) in prime locations. The city-based Bombay Environmental
Group had challenged the sale on the ground that development control rules
had been violated in the process.

The order of the high court would drastically reduce the availability of
mill lands for construction-development in Mumbai. Bombay Dyeing had plans
for a major development of its huge real estate property in Mumbai and
therefore the stock tumbled after the court decision.

Tamil Nadu Newsprint & Papers gained 1.5% to Rs 86.55 following an
impressive rise in Q2 September 2005 net profit. Tamil Nadu Newsprint &
Papers (TNPL)’s net profit jumped 98.3% to Rs 18.15 crore (Rs 9.15 crore).
Net sales have risen 12.7% to Rs 203.09 crore from Rs 180.06 crore. The
company has declared an interim dividend of 15% along with Q2 results.

Punjab Tractors lost 2% to Rs 194 as the quantum of special dividend of Rs
4.50 per shares declared by the company failed short of market expectation.
The company reported robust Q2 results. The net profit jumped 55.5% to Rs
16.80 crore in Q2 September 2005 from Rs 10.80 crore in Q2 September 2004.
Net operating revenue rose 11.8% to Rs 212.10 crore from Rs 189.70 crore.

Power equipment makers like Siemens, Thermax, Alstom and Alstom Projects
rose ahead of the listing of Suzlon Energy on Wednesday (18 October 2005).

source:capitalmarket

Vishal Exports Overseas jumped 10% to Rs 7.34 - the maximum permissible level of the day on the back of strong Q2 results


5.6 lakh shares changed hands in the counter on BSE.

Vishal Exports Overseas (VEOL) reported 67.8% growth in Q2 September 2005
net profit to Rs 14.47 crore compared to Rs 8.62 crore in Q2 September 2004.
Top line growth has driven bottom line growth. Net sales has risen 83.3% to
Rs 878.10 crore (Rs 478.81 crore).

As part of its strategy to focus on the renewable energy sector, VEOL has
already commissioned 19 wind turbine generators in Tamil Nadu and Rajasthan,
aggregating to 16.20 Mw, at a total project cost of Rs 69 crore.

Vishal Exports Overseas plans to set up a 100-mega-watt wind power project
at a cost of Rs 550 crore. These wind farms will be set up over a period of
two years and the project would be completed in three modular phases.

Vishal Exports Overseas is a 4-star trading house engaged in export / import
Activities with a core competence in agro-based commodities like in soyabean
extracts, wheat, rice, and sugar.

Major BPO deal spurs TCS


TCS rose nearly 1% to Rs 1,448 after the company said it would take over the
claims processing business of Britain's Pearl Group which is expected to
generate revenue of 486 million pounds ($848 million) over 12 years.

4.1 lakh shares changed hands in the counter on BSE.

TCS will set up a new company in UK which is a subsidiary of the company to
take over the claims processing business of Pearl Group. The new subsidiary
will specialise in BPO for life and pension businesses, starting with Pearl
Group's closed books portfolio, TCS said.

It will also focus on offering similar services to other life companies,
presenting it with an opportunity for significant future growth as Business
Process Outsourcing (BPO) is rolled out across the life assurance industry,
TCS said in a statement

Hero Honda accelerates on expectation of strong Q2 results


Robust Q2 results unveiled by Bajaj Auto late last week has triggered hopes
of a good showing by Hero Honda.

Amid such expectation and on hopes of pick up in sales in the festive season
following a good monsoon this year, Hero Honda shares surged nearly 3% today
to Rs 716. 2.2 lakh shares changed hands in the counter on BSE.

The stock rose for the second day in a row today. On Monday (17 October
2005), the stock rose nearly 1% to Rs 695.75.

Hero Honda’s board meets on Thursday (20 October 2005) to consider Q2
results.

Hero Honda posted a 21% growth in motorcycle sales in Q2 September 2005 on
the back of strong rural sales and a good response to its newly launched
125cc motorcycles Glamour.

On Saturday (15 October 2005), Bajaj Auto reported robust Q2 results. Bajaj
Auto reported a net profit of Rs 289.36 crore – a growth of 61% compared to
a net profit of Rs 179.45 crore for Q2 September 2004. Total income (net of
excise) rose 30.3% to Rs 2003.15 crore from Rs 1536.52 crore. One key
highlight of the Q2 results was a slight increase in core operating profit
margin.

Market proves range bound


The market came further off the higher level in early afternoon trade. After
surging over 100 points at one point of time in morning trade, the Sensex
had come off the higher level shortly later.

Cement major Gujarat Ambuja Cements slipped into the red by early afternoon
trade. Tisco, Reliance Industries, Ranbaxy Laboratories, Wipro, Tata Motors,
and Infosys Technologies were all off highs. In contrast, L&T, and Hero
Honda firmed up. Bharti Tele-Ventures (BTL) held firm.

Refinery shares lost ground after a fresh upward spike in global crude oil
prices.

Though market breadth was positive, it weakened when compared to mid-morning
trade when the breadth was much stronger. 1,357 stocks advanced on BSE as
compared to 917 stocks that declined. 65 scrips were unchanged. Gainers
outpaced losers by a ratio of 1.4:1. The ratio was much stronger at 1.9:1 in
mid-morning trade.

Stocks like IPCL, GE Shipping, Bharat Forge, Zuari Industries, Aarti
Industries, Financial Technologies, Aegis Logistics, Gabriel India, Century
Enka, Godavari Fertilisers, Jaiprakash Associates, DCW, Atlas Copco, Avaya
GlobalConnect, SIC Agencies Corporation, Birla Kennametal, Ginni Filaments,
PSL, Tricom India, and Gujarat Gas edged higher.

At 12:10 IST, the Sensex was up 57 points at 8,260. The barometer index came
off the day’s high of 8,317.38.

L&T jumped 3.2% to Rs 1,455. 35,024 shares changed hands in the counter on
BSE.

Hero Honda gained 2.7% to Rs 715. The stock gained on expectation of strong
Q2 results, and on hopes of strong demand in the festive season following a
good monsoon this year.

BTL gained 2.3% to Rs 326.65. The scrip rose on expectation of strong Q2
results.

Cipla rose 2% to Rs 394.20. The stock surged for the second day in a row
today after the company said it is making a generic version of Roche’s
Tamiflu – an anti-influenza drug

Cement major Gujarat Ambuja Cements lost 0.8% to Rs 67.50. 5.5 lakh shares
changed hands in the counter on BSE.

Steel major Tisco shed 0.3% to Rs 382.60. 6 lakh shares changed hands in the
counter on BSE.

Infosys shed 0.1% to Rs 2,582. 2.4 lakh shares changed hands in the counter
on BSE.

Grasim inched up 0.1% to Rs 1,193.80. Grasim today said the workers of one
of the company's Viscose Staple Fibre (VSF) plants at Harihar in Karnataka
(called the Grasilene Division) have gone on strike from October 17, 2005.
Consequently, manufacturing activities at the above plant have come to a
stand still. The company is seeking the intervention of the state government
and the labour department as per the due process of law.

Batliboi spurted 6.4% to Rs 93.30 on the back of the just announced
impressive Q2 results. Batliboi’s net profit spiraled up 89.8% in Q2
September 2005 to Rs 3.19 crore (Rs 1.68 crore). Net sales grew 25.8% to Rs
25.48 crore (Rs 20.25 crore).

Bharat Forge climbed 3.4% to Rs 338 on expectation of strong Q2 results. The
company announces Q2 results today.

EMCO gained 3% to Rs 403.50 on the back of strong Q2 results.

Gateway Distriparks rose 2% to Rs 223.45 on the back of strong Q2 results.

IPCL gained 2.2% to Rs 233.25. The stock rose for the second day in a row.
11.6 lakh shares changed hands in the counter on BSE.

The overall Q2 results that have come in so far have been very impressive.
Software majors Infosys, and TCS have done exceedingly well. Bajaj Auto,
ICICI Bank and HDFC Bank, too, have come up with robust performances.
However, the results of cement major ACC were in striking contrast (dismal)
to the others.

source:capitalmarket

Bharat Forge held firm after the company reported strong Q2 results


The stock was up nearly 3% to Rs 336.70. 3.2 lakh shares changed hands in
the counter. The results hit the market just a few minutes back.

The stock rose in early trade today ahead of the results announcement. The
stock rose as much as 4.5% to a high of Rs 342. It had pared gains following
the results announcement.

Bharat Forge has reported a net profit of Rs 51.77 crore for Q2 September
2005 a growth of 37% compared to a net profit of Rs 37.83 crore in Q2
September 2005. Net sales has risen 29.7% to Rs 376.61 crore (Rs 290.15
crore).

Transformers maker EMCO gained 2.4% to Rs 401.25 on the back of robust Q2 results


Net profit jumped 102.8% to Rs 5.07 crore in Q2 September 2005 from Rs 2.50
crore in Q2 September 2004. Net sales rose 36% to Rs 76.15 crore (Rs 55.93
crore).

EMCO manufactures all kind of transformers, including power transformers,
distribution transformers, furnace transformers, and rectifier transformers.
The company has a strong presence in medium capacity transformers like 132
kV among others. EMCO also has a projects division which focuses on power
transmission and distribution segment contracts. The project division enjoys
better margins.

A few months back, EMCO completed its maiden international offering and
raised Rs 45.53 crore, including premium of Rs 42.28 crore. The issue came
in the form of 1,250,000 GDR’s representing 1,250,000 equity shares of Rs 10
each at price of $ 8 per GDR.

Further, the company also allotted to one of its promoter director 300,000
warrants having an option to subscribe to 300,000 equity shares of Rs 10
each at future date, not exceeding 18 months from the date of allotment of
warrant, at a price of Rs 285 per share.

Batliboi jumped 7% to Rs 93.95 after the company reported a surge in Q2 September 2005 net profit


The stock plunged 6.9% on Monday (17 October 2005) to Rs 87.65 on the eve of
the results announcement. The results hit the market after trading hours on
17 October 2005.

Batliboi has reported robust Q2 September 2005 results. Batliboi’s net
profit jumped 89.8% in Q2 September 2005 to Rs 3.19 crore (Rs 1.68 crore).
Net sales rose 25.8% to Rs 25.48 crore (Rs 20.25 crore).

Batliboi operates in four business segments: textile engineering, machine
tools, air-conditioning and refrigeration, and others. The rising demand for
its products in the domestic as well as international markets and its thrust
on continuous improvement in productivity together with various strategic
initiatives undertaken have resulted in an improved performance by the
company over the last one year or so.

Further, due to the increasing investment in the Indian economy, the capital
goods industry, to which the company belongs, is enjoying a good growth.

A leader in textile engineering systems, Batliboi boasts of a diversified
product basket in this area of operations. In the machine tools division,
the company acts as an agent for leading international manufacturers and
also some Indian machine tool builders for machine tool trading.

Bombay High Court decision on NTC mill land sale hits Bombay Dyeing


Bombay Dyeing retreated for the second day in a row today, after the Bombay
High Court on Monday spiked the NTC mill land sale proposal.

The stock was down 4.2% to Rs 318. 36,475 shares changed hands in the
counter on BSE.

The stock plunged 6.4% on Monday (17 October 2005) to Rs 331.15 hit by the
high court decision.

The Bombay High Court, in a significant decision on Monday, set aside the
sale of 600 acres of surplus textile mill land by the National Textile
Corporation (NTC) in prime locations. The city-based Bombay Environmental
Group had challenged the sale on the ground that development control rules
had been violated in the process.

The order of the high court would drastically reduce the availability of
mill lands for construction-development in Mumbai.

Bombay Dyeing had plans for a major development of its huge real estate
property in Mumbai and therefore the stock tumbled after the court decision.

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