Tuesday, October 25, 2005

Range bound market; Tata Motors drops


The market was range bound in morning trade. Auto scrips slipped. Tata
Motors came under selling pressure after the company reported disappointing
Q2 results on Tuesday and warned that profit margins would be under pressure
due to high input costs.

Housing finance major HDFC held firm on the back of a decent 20% growth in
Q2 September 2005 net profit.

Pharma shares were in demand but PSU banks failed to sustain higher level.

Though the market breadth was positive, it weakened when compared to early
trade when it was strong. 1,224 stocks advanced on BSE as compared to 849
stocks that declined. 48 scrips were unchanged. Gainers outpaced losers by a
ratio of 1.4:1.

Select side counter edged higher. Stocks like Amar Remedies, Archies
Greetings, Ansal Buildwell, Coats of India, DIC India, Jay Bharat Maruti,
Aftek Infosys, Hikal, Camlin, Rallis India, Geometric Software, Hind
Rectifiers, Simplex Casting, Hotel Leelaventure, DS Kulkarni Developers,
Birla Kennametal, BOC India, Phoenix Lamps, DCW, Alembic, Alps Industries
edged higher.

Stocks like Indiabulls and Punjab Alkalies plunged.

Zuari Industries spurted on the back of strong Q2 results.

At 11:28 IST, Sensex was up 34 points at 8,026.

Tata Motors dropped nearly 2% to Rs 510. 2.2 lakh shares changed hands in
the counter on BSE. Tata Motors reported a 9.4% growth in Q2 September 2005
net profit to Rs 338 crore (Rs 309 crore). Revenue rose 15.3% to Rs 4,781
crore. The results are not comparable as the Q2 September 2005 results
include the results of Tata Finance Ltd (TFL), Telco Dadajee Dhackjee Ltd
(TDDL) and Suryodaya Capital and Finance (Bombay) Ltd (SCFL) which were
merged with Tata Motors.

Bajaj Auto lost 0.9% to Rs 1,780, Maruti Udyog shed 0.4% to Rs 555 and Hero
Honda lost 0.4% to Rs 711.75.

Battered Ranbaxy recovered. The stock gained 3% to Rs 354.90. The stock rose
on high early volume of 6.4 lakh shares on BSE. The stock had received a
battering in the past few days after it reported a sharp fall in Q3
September 2005 net profit.

Cipla gained 1.8% to Rs 374 and Dr Reddy’s Laboratories rose 1.9% to Rs 860.

HDFC gained 1.2% to Rs 924.50. 9,832 shares changed hands in the counter on
BSE. HDFC’s net profit rose 20% in Q2 September 2005 to Rs 298.98 crore (Rs
248.13 crore). Income from operations rose 24.3% to Rs 1045.20 crore
compared to Rs 840.26 crore

ONGC and Tisco edged higher ahead of the announcement of Q2 September 2005
results later in the day today. ONGC rose 1.1% to Rs 941 and Tisco gained 1%
to Rs 353.75.

Cellular services major Bharti Tele-Venture edged higher for the second day
in a row. The stock gained 1.1% to Rs 333.25.

Index heavyweight Reliance Industries edged higher for the second day in a
row after the company said its shareholders had approved a scheme to hive
off the telecommunications, coal, power and financial businesses into
separate companies. The stock was up 0.7% to Rs 773.50. 3.7 lakh shares
changed hands in the counter on BSE.

Fertilizers major Zuari Industries jumped 15% to Rs 114.60 after the company
reported a sharp surge in Q2 September 2005 net profit. Zuari Industries’
net profit jumped 86% in Q2 September 2005 to Rs 33.70 crore (Rs 18.10
crore). Net sales rose 56% to Rs 644.25 crore

Century Enka dropped 5% to Rs 214.75. Century Enka’s net profit declined 24%
in Q2 September 2005 to Rs 12.19 crore (Rs 16.06 crore). Net sales declined
nearly 9% to Rs 242.39 crore (Rs 266.32 crore

source:capitalmarket

Firm opening; strong market breadth


The market edged higher in early trade as blue chips registered marginal to
small gains. Battered Ranbaxy recovered. ONGC and Tisco edged higher ahead
of the announcement of Q2 September 2005 results later in the day today.

PSU banks moved up for the second day in a row. Housing finance major HDFC
advanced after the company, on Tuesday, reported a decent 20% growth in Q2
September 2005 net profit.

Select stocks like Tata Chemicals, CCL Products, Phoenix Lamps and Zuari
Industries edged higher on the back of strong Q2 September 2005 results. The
market breadth was positive. 1,016 stocks advanced on BSE as compared to 551
stocks that declined. 32 scrips were unchanged. Gainers outpaced losers by a
ratio of 1.8:1.

At 10:23 IST, Sensex was up 34 points at 8,025. Sensex hit a high of
8,042.37.

The market sentiment was firm after RBI in its credit policy announced on
Tuesday allowed banks to invest more in equity markets by raising banks’
capital market exposure. RBI allowed banks to have capital market exposure
of up to 20% of their net worth, compared with 5% of previous year loans
now.

Ranbaxy surged 3.2% to Rs 355. The stock rose on high early volume of 3.6
lakh shares on BSE. The stock had received a battering in the past few days
after it reported a sharp fall in Q3 September 2005 net profit.

Cipla rose 1.5% to Rs 372.80.

ONGC gained 1.3% to Rs 942.60. 54,056 shares changed hands in the counter on
BSE.

HDFC gained 1.2% to Rs 924.50. 51,95 shares changed hands in the counter on
BSE. HDFC’s net profit rose 20% in Q2 September 2005 to Rs 298.98 crore (Rs
248.13 crore). Income from operations rose 24.3% to Rs 1045.20 crore
compared to Rs 840.26 crore.

Index heavyweight Reliance Industries edged higher for the second day in a
row after the company said its shareholders had approved a scheme to hive
off the telecommunications, coal, power and financial businesses into
separate companies. The stock was up 0.3% to Rs 770.

Punjab National Bank gained 0.5% to Rs 403, Bank of Baroda rose 1.6% to Rs
227.50, Union Bank of India gained 1.1% to Rs 111.90 and Corporation Bank
gained 0.6% to Rs 349.85.

Fertilizers major Zuari Industries jumped 9.4% to Rs 109 after the company
reported a sharp surge in Q2 September 2005 net profit. Zuari Industries’
net profit jumped 86% in Q2 September 2005 to Rs 33.70 crore (Rs 18.10
crore). Net sales rose 56% to Rs 644.25 crore

RIL, PSU banks lead recovery on bourses


The market staged a recovery today in a volatile trading session after RBI
raised short-term interest rates by a widely expected 25 basis points. The
volatility in the barometer index, the BSE Sensex, was partly due to
volatility in a host of Sensex constituents like Tata Motors, Wipro,
Infosys, ONGC, ITC, Gujarat Ambuja Cements, Hindustan Lever, HDFC and HDFC
Bank.

The market sentiment was boosted after RBI allowed banks to invest more in
equity markets by raising banks’ capital market exposure. RBI allowed banks
to have capital market exposure of up to 20% of their net worth, compared
with 5% of previous year loans now.

RBI raised reverse repo rate by 25 basis points to 5.25% effective from 26
October 2005. RBI also hiked the repo rate by 25 basis points to 6.25%. It
kept the bank rate unchanged at 6%. PSU bank stocks edged higher. Index
heavyweight Reliance Industries moved up after the company said its
shareholders had approved a scheme to hive off the telecommunications, coal,
power and financial businesses into separate companies.

Cellular services major Bharti Tele-Ventures advanced on renewed buying
interest at the lower level.

Tata Motors witnessed high volatility in the latter part of the trading
session after its Q2 results hit the market.

Ranbaxy Laboratories lost further ground extending a setback in the stock in
the past two days caused by the company's reporting to a sharp fall in Q3
September 2005 net profit.

Though market breadth was strong, it weakened in the latter part of trading
when compared to mid-afternoon trade when the breadth was even stronger.
1,385 stocks advanced on BSE as compared to 1,038 stocks that declined. 61
scrips were unchanged. Gainers outpaced losers by a ratio of 1.3:1. In
mid-afternoon trade, the advance decline ratio was over 1.5:1.

The 30-share BSE Sensex gained 70.94 points or 0.9% to settle at 7,991.74.
The barometer index came sharply off the higher level after it had surged as
much as 153.28 points in mid-afternoon trade to a high of 8,074.08 after the
credit policy announcement.

Volume was low for the second day in a row today. BSE clocked a turnover of
Rs 2,406 crore compared to Monday’s Rs 2,437.14 crore. The last two days
have seen a drop in volume, which is due to the fall in FII activity. Monday
’s gross FIIs turnover (total of gross purchases and gross sales of the day)
was Rs 1,861 crore compared to turnover of between Rs 2,200 crore to Rs
3,583 crore between 13 October 2005 to 21 October 2005.

On a net basis, FIIs sold shares worth Rs 132.10 crore on Monday. FIIs have
resorted to profit taking in the past few days. In the month of October
2005, FIIs have sold shares worth a net Rs 2,034.80 crore (till 24 October
2005). The heavy FII selling caused a major correction on the bourses with
the Sensex tumbling to a 1-½ month low on Monday.

A host of side counters edged higher today. Stocks like Sasken
Communication, Kinetic Motor, Loyal Textile Mills, Ansal Buildwell, Simplex
Casting, Infomedia India, Essar Steel, Elnet Technologies, HCL Infosystems,
RPG Transmission, JBM Auto, Nucleus Software, ABG Heavy Industries, Zuari
Industries, Kamat Hotels, SREI Infrastructure Finance, Century Textiles,
Yuken India, Greenply Industries, Balrampur Chini Mills, Hindustan Oil
Exploration, Rajesh Exports, Birla Corporation and Jindal Stainless rose
between 5% to 14% for the day.

PSU banks advanced. State Bank of India gained 2.5% to Rs 885.60, Dena Bank
rose 4.7% to Rs 34.10, Syndicate Bank advanced 4.6% to Rs 80.40, Oriental
Bank of Commerce rose 4% to Rs 250, Bank of Baroda gained 3.8% to Rs 225,
Punjab National Bank rose 3% to Rs 399.50, Bank of India rose 2.4% to Rs
106.80, and Union Bank of India advanced 2% to Rs 111.45.

Reliance Industries gained 1.2% to Rs 766. 27.4 lakh shares changed hands in
the counter on BSE.

L&T surged 5% to Rs 1,362, Dr Reddy’s Lab rose 4.7% to Rs 845 and Bhel
advanced 3% to Rs 1,162.

Tata Motors rose 0.6% to Rs 520.95. Tata Motors today reported a 9.4% growth
in Q2 September 2005 net profit to Rs 338 crore (Rs 309 crore). Revenue rose
15.3% to Rs 4,781 crore. The results are not comparable as the Q2 September
2005 results include the results of Tata Finance Ltd (TFL), Telco Dadajee
Dhackjee Ltd (TDDL) and Suryodaya Capital and Finance (Bombay) Ltd (SCFL)
which were merged with Tata Motors.

Housing finance major HDFC gained 0.3% to Rs 916.50 after the company
reported a decent growth in Q2 September 2005 net profit. HDFC’s net profit
rose 20% in Q2 September 2005 to Rs 298.98 crore (Rs 248.13 crore). Income
from operations rose 24.3% to Rs 1045.20 crore compared to Rs 840.26 crore.

HCL Tech jumped 4.6% to Rs 472 after the company reiterated strong growth
forecasts as it chased large deals. HCL Technologies’ Q1 July-September 2005
consolidated net profit excluding other income rose to $ 34.54 million from
$ 19.62 million in the same period last year. Gross revenue for the quarter
rose 30% to $ 220.57 million

HCL Tech said it won three new multi-year contracts worth more than $ 50
million each, including one worth $ 100 million-plus with a global telecom
company.

Ranbaxy lost 3.4% to Rs 343.10. The stock declined on high volume of 18.8
lakh shares on BSE.

Auto shares slipped on profit taking. Car major Maruti Udyog shed 2.3% to Rs
559, Hero Honda lost 1.4% to Rs 715.85 and Bajaj Auto shed 0.6% to Rs 1,787.

Century Textiles jumped 6% to Rs 284.95. The stock rose on high volume of
16.5 lakh shares. Century Textiles reported a 49.5% fall in Q2 September
2005 net profit to Rs 7.41 crore from Rs 14.68 crore in Q2 September 2004.
Net sales declined to Rs 582.95 crore (Rs 591.09 crore)

The floods resulted in loss of production and also expenditure for repairs
and re-commissioning of plants in Mumbai, which impacted the Q2 results,
Century Textiles said. The working of Rayon Tyre Cord (textiles segment) and
chemical plants was adversely affected due to the floods in Mumbai, it said.

VSNL gained 1.1% to Rs 320.55. The stock rose on high volume of 21 lakh
shares on BSE. VSNL’s net profit rose 3.3% in Q2 September 2005 to Rs 91
crore (Rs 88.10 crore). Total income rose 18.9% to Rs 961.20 crore (Rs
807.90 crore).

IPCL was highly volatile following the announcement of Q2 results. The stock
ended flat at Rs 222.50. The scrip moved between a low of Rs 219.55 and a
high of Rs 231.10. Volumes in the stock were a huge 39.8 lakh shares on BSE.

Praj Industries jumped 5% to Rs 90.25 after the company said it has
contracted projects worth over Rs 100 crore. Among these, major orders came
from Balarampur Chini Mills, a distillery expansion project in Swaziland
from a South African Company and many grain based distillery projects, Praj
Industries said.

HCL Infosystems leaped up 7.5% to Rs 256 on reports that it has entered into
a strategic alliance with Bull of France to provide open source software.

Nirma spurted nearly 5% to Rs 454 boosted by strong Q2 September 2005
results. Nirma reported a net profit of Rs 99.20 crore for Q2 September 2005
as compared to a net profit of Rs 45.46 crore for Q2 September 2004. Net
sales rose 10.9% to Rs 485.74 crore (Rs 437.91 crore).

ABB moved higher by 1% to Rs 1,688 on the back of impressive Q3 outcome. ABB
’s net profit jumped 47% in Q3 September 2005 to Rs 52.94 crore (Rs 35.97
crore). Total income rose 25% to Rs 719.92 crore (Rs 575.47 crore).

Finolex Cables flopped 4.7% to Rs 237.05. Finolex Cables today reported a
14% growth in Q2 September 2005 net profit to Rs 5.71 crore (Rs 5 crore).
Total income declined 7% to Rs 149.30 crore (Rs 160.60 crore).

Crew BOS Products made headway by 1.6% to Rs 166. The company today reported
a sharp surge in Q2 September 2005 net profit. Crew BOS Products reported a
net profit of Rs 4.01 crore as compared to Rs 2 crore in Q2 September 2004.
Net sales rose 71% to Rs 33.59 crore (Rs 19.62 crore).

Sterlite Optical Technologies slumped 7% to Rs 83.05 after the company
reported a sharp fall in Q2 September 2005 net profit. The company reported
a 76.7% fall in Q2 September 2005 net profit to Rs 1.17 crore (Rs 5.03
crore). Net sales surged 46.5% to Rs 137.68 crore (Rs 93.93 crore).

Kinetic Engineering marched up 5% to Rs 193.55 – the maximum permissible
level of the day. Reliance Capital said on Monday that it would buy 15% of
Kinetic Engineering and be in line for more equity as part of a Rs 38.40
crore ($8.5 million) investment in the two-wheeler maker. Kinetic
Engineering will issue 715,000 new shares, or 14.96 percent of the expanded
equity on a preferential issue basis, to Reliance Capital's private equity
arm at Rs 178 per share, a 3.6 percent discount to the closing price of Rs
184.35 on Monday (24 October 2005).

The news boosted another Kinetic group company Kinetic Motor, which spiraled
up 14% to Rs 67.

Birla Corporation moved upstream for the second day in a row on the back of
strong Q2 results. The stock gained 5% to Rs 235. Birla Corporation’s net
profit rose 36% in Q2 September 2005 to Rs 18.16 crore (Rs 13.38 crore). Net
sales declined 1.1% to Rs 264.53 crore (Rs 267.60 crore)

source:capitalmarket

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