Monday, October 24, 2005

Sensex down 148 points; some Auto Scrips move higher


The volatility on the bourses has become immense. A day after it jumped 134
points on Friday (21 October 2005), the barometer BSE Sensex tanked 148
points today.

Today’s fall on the bourses came amid concerns about a widely expected
interest rate increase when RBI reviews policy on Tuesday (25 October 2005).
Higher interest rates will raise the borrowing costs of companies. Market
men expect RBI to raise the short-term reverse repo rate -- the benchmark
for short-term money market rates -- by 25 basis points to 5.25%

Shares of Ranbaxy tanked after the company, on Friday (21 October 2005)
reported a sharp fall in Q3 September 2005 net profit. Sun Pharma and
biotech major Biocon tumbled. Dr Reddy’s Laboratories came under selling
pressure.

Stocks like Tata Power, Tisco, ITC, MTNL, Wipro, ONGC, State Bank of India,
Hero Honda, and Bhel lost between 3% to 5.9% for the day. Stocks like
Hindalco, Zee Telefilms, Bharti Tele-Ventures, Infosys Technologies, ICICI
Bank, and Hindustan Lever declined between 2% to 2.8% for the day.

Index heavyweight Reliance Industries lost 1.3% to Rs 760, and housing
finance major HDFC shed 1.3% to Rs 912.20.

Select side counters edged higher with some of them getting a boost from
strong Q2 results.

In an otherwise weak market, select auto and cement shares edged higher.
Auto shares moved up after Ashok Leyland joined two firms, Bajaj Auto and
Hero Honda, in reporting strong Q2 results.

The 30-share BSE Sensex plunged 148.15 points or 1.8% to 7,920.80 – its
lowest level in the past month-and-a-half (since 2 September 2005).

Market breadth was positive. However, breadth weakened substantially in the
latter part of the trading session. 1,328 stocks advanced on BSE as compared
to 1,112 stocks that declined. 43 scrips were unchanged. Gainers outpaced
losers by a ratio of 1.1:1.

Ranbaxy plunged 9.5% to Rs 352.50. The stock declined on high volume of 24.6
lakh shares on BSE. Ranbaxy’s net profit plunged 91% in Q3 September 2005 to
Rs 18.40 crore (Rs 200 crore). Its revenue fell 3% to Rs 1304 crore.

Sun Pharma lost 7% to Rs 600, Dr Reddy’s Laboratories lost 4% to Rs 804,
Divi’s Laboratories lost 5% to Rs 1,318, and Aurobindo Pharma shed 3.5% to
Rs 312.55.

Biotech major Biocon plunged 9% to Rs 480.55. 4.9 lakh shares changed hands
in the counter on BSE.

Tata Power shed 5.9% to Rs 406.15, Tisco lost 4% to Rs 352, ITC shed 3.7% to
Rs 116.75, MTNL shed 3.5% to Rs 116.50, and Wipro shed 3.5% to Rs 372.

Oil exploration major ONGC lost 3.4% to Rs 921.90. 3.09 lakh shares changed
hands in the counter on BSE.

State Bank of India shed 3.3% to Rs 857.25. 16.55 lakh shares changed hands
in the counter on BSE.

Software major Infosys shed 2.4% to Rs 2,493.15.

Ashok Leyland rose 3.3% to Rs 28.15 on the back of robust Q2 results. The
stock, however, came off the higher level in a weak market. The stock came
off the day’s peak of Rs 29.10. 23 lakh shares changed hands in the counter
on BSE. Ashok Leyland’s net profit jumped 74% in Q2 September 2005 to Rs
75.01 crore (Rs 43.06 crore). Net sales rose 36.6% to Rs 1,250.09 crore (Rs
914.76 crore).

Bajaj Auto rose 3.2% to Rs 1,795, and car major Maruti Udyog gained 2.2% to
Rs 570.05.

source:capitalmarket

Sensex down by more than 100 points


The market weakened in mid-afternoon trade. Ranbaxy plunged and Infosys
weakened. State Bank of India failed to sustain the higher levels. The stock
had bounced back in early afternoon trade. HDFC Bank weakened in
mid-afternoon trade.

Though market breath was strong it weakened when compared to early afternoon
trade. 1,414 stocks advanced on BSE as compared to 983 stocks that declined.
41 scrips were unchanged. Gainers outpaced losers by a ratio of 1.4:1. The
breadth had improved to 1.7:1 at about 13:25 IST from 1.5:1 at about 12:20
IST.

At 14:30 IST, the Sensex was down 113 points at 7,956 – close to the day’s
low of 7,944.59.

Ranbaxy plunged 8.5% to Rs 356. The stock declined on high volume of 16.7
lakh shares on BSE. The stock lost ground for the second day in a row after
the company reported a sharp fall in Q3 September 2005 net profit. Ranbaxy’s
net profit plunged 91% in Q3 September 2005 to Rs 18.40 crore (Rs 200
crore). Its revenue fell 3% to Rs 1304 crore.

Biotech major Biocon plunged 7% to Rs 492. 3.9 lakh shares changed hands in
the counter on BSE.

Infosys shed 1.1% to Rs 2,523, Reliance Industries lost nearly 1% to Rs
763.55 and State Bank of India shed 1.2% to Rs 875.

Tata Power lost 4% to Rs 414, Wirpo shed 3% to Rs 373, ITC shed 2.8% to Rs
117.80, Tisco shed 2.4% to Rs 358, FMCG major Hindustan Lever shed 2.3% to
Rs 167.50 and Bhel lost 2.5% to Rs 1,133.

ONGC shed 2% to Rs 934.50. 1.5 lakh shares changed hands in the counter on
BSE.

HDFC Bank lost 2.3% to Rs 632. 80.916 shares changed hands in the counter on
BSE. ICICI Bank shed 1.8% to Rs 497.70. 2.8 lakh shares changed hands in the
counter on BSE.

source: capital

Carborundum Universal jumped nearly 5% to Rs 115.30 on the back of strong Q2 September 2005 results


The stock jumped 4.5% on Friday (21 October 2005) to Rs 110 in a firm market
on the eve of the results announcement.

Carborundum Universal has reported 60.6% growth in Q2 September 2005 net
profit to Rs 13.49 crore compared to Rs 8.40 crore in Q2 September 2004. Net
sales have risen 24.1% to Rs 93.37 crore (Rs 75.21 crore).

Carborundum Universal caters to a cross-section of industries such as
engineering, construction, automobile and fabrication. The company has a 30%
share in the Rs 200-crore domestic abrasive market.

The company, which exports abrasive products to the US, Australia and Europe
is now eyeing newer markets such as China and West Asia.

The company's ceramics division manufactures wear-resistant and heat-
resistant products in the form of industrial consumables and capital
consumables. This division caters to the power sector, cement industries,
coal washeries and also provides high temperature applications for the
ceramic, non-ferrous, iron and steel, fertiliser, carbon black and chemical
processing industries.

Elecon Engineering jumped 5% to Rs 671.40, the maximum permissible level of the day, on the back of robust Q2 results


The stock had spurted ahead of the results announcement. From a low of Rs
597.35 on 19 October 2005, the stock rose 7% in two trading sessions to Rs
639.45 on Friday 21 October 2005.

Elecon Engineering’s net profit has jumped 418% to Rs 5.75 crore in Q2
September 2005 from Rs 1.46 crore in Q2 September 2004. Top line growth has
led bottom line growth. Net sales have risen 43.3% to Rs 94.67 crore (Rs
66.06 crore).

Elecon Engineering is into the manufacture of bulk material handling
equipment and industrial gears. It is one of the largest industrial gear box
manufacturers in the country, with the widest range of products.

On the material handling front, the company's product range includes design,
engineering manufacture, supply, erection and commissioning of conveying
equipments, wagon tipplers & dust trapping equipment, reduction gears &
geared motors, wagon marshalling equipment, EOT cranes & goliath cranes and
specialised conveying equipment, stacker reclaimers, blender reclaimers,
rotary disc loaders etc.

Tata Coffee jumped 11.3% to Rs 332.50 after the company reported a surge in Q2 September 2005 net profit


The strong Q2 results of Tata Coffee triggered expectation of strong Q2
results from CCL Products, which rose 4.3% to Rs 407.95. 2,204 shares
changed hands in the counter on BSE.

Tata Coffee’s net profit jumped 135.5% in Q2 September 2005 to Rs 6.62 crore
from Rs 2.54 crore in Q2 September 2004. Net sales rose 4.1% to Rs 52.83
crore (Rs 50.71 crore).

A leading exporter of coffee, Tata Coffee has targeted to reach the number
two position in the branded packaged filter coffee business through its
brand Mr Bean. This is to be done by significantly increasing its present
market share of 5% and inching closer to Brooke Bond's Bru Coffee, which
holds 29% of the current market share. Tata Coffee recently launched Tata Mr
Bean Coffee Junction (Coffee Junction), an outlet which blends retailing,
vending, and roasting and grounding of coffee under one roof, in Chennai.
The company hopes to open another 10 outlets in the city by 2005.

Tata Coffee is the largest integrated coffee company in Asia with a
production of 10 million kg of coffee from 7,000 hectares spread over 26
estates across Chickmagalur, Coorg, and Hassan in Karnataka.

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