Monday, April 02, 2007
ZTL, in which RPG Group now holds 70% stake, is all set for robust growth in future. It is likely to end FY 2007 with revenues of Rs. 580 crore (+) and Net profit of Rs. 54-55 crore, as against earlier guidance of Rs. 550 crore sales and PAT of Rs. 50 crore. For FY 2008, company expects Rs. 850-910 crore revenues (minimum Rs. 850 crore) and PAT % of 10% (i.e. PAT of Rs. 85-91 crore). Beyond that, company is placed to give 30-35% growth p.a. for next 2-3 years :-
© Under First Source Strategy, ZTL will be grooming small to medium sized companies (sales <>
© With recent acquisition of ThoughtDigital in USA ZTL has become among the top10 Oracle practicers in world and 6 largest in India. ZTL is now very well placed to leverage ThoughtDigital acquisition with its marquee customers and back-end outsourcing from India. Company’s deep knowledge in Oracle Practices over the years should help in capitalizing tremendous growth opportunities here (generally services around Oracle package is at 2-3 times the original license fee) and launch of global brand – thought Digital in this space. Company intends to increase its head count from present 1,000 to 3,000 over next 2-3 years in Oracle practice. Oracle has selected ZTL as the exclusive partner for 2 manufacturing segments – auto ancillary and Hitech Discrete manufacturing for North America.
Having acquired thorough knowledge in retail vertical thru ERP implementation for RPG Retail, ZTL has built EPR on its own for dairy business (Ist time in India and likely to tie up with Mother Dairy), which has huge potential.
© ZTL’s niche business segment of Innovative Technology Solutions has now reached an inflexion point with major upscaling expected going forward. Company expects revenues of US $ 100 million from this by FY 2010 (US $ 28 million in FY 2007). Reusability of framework tools and components developed here over the years (a type of products) should enhance productivity at ZTL since very little customization is required. These tools can also be effectively used in new clients under global outsourcing, thereby cutting down man power.
© JV with Japanese company EZA, which has presence in the niche areas of Media & Entertainment and SIP providing Zensar opportunity of Technology / Knowledge transfer. EZA has good customer base and ZTL can leverage this for growth in Japan. In fact top 3 gaming companies of the world are ZTL’s clients.
© BPO – Home Depot is the largest customer in BPO segment. In a way, Home Depot is FTO in BPO. ZTL is the only company rendering BPO services to Home Depot and that too in core area of supply chain. In fact FTO to also help in scaling up BPO business in niche areas with basic infrastructure already being there.
© Decline in attrition rate by 3% in FY 2007 with core managerial team continuing to be in place.
Thus, it is set for robust growth with incubation gestation now over in respect of Enterprise Application Practices and Innovation Technology Practices.
At CMP of Rs. 240/-, share is trading at 10.4 times FY 2007 expected EPS of Rs. 22/- and 6.6 times FY 2008 expected EPS of Rs. 37/-. In view of above mentioned factors, we recommend to “BUY” the share at CMP notwithstanding somewhat adverse perception for RPG group in the market with good possibility for re-rating the stock.
02-APR-2007,DCB,Development Credit Bank L,HSBC FINANCIAL SERVICES(MIDDLE EAST) LIMITED,BUY,950000,65.32,-
02-APR-2007,DIVISLAB,Divi's Laboratories Limit,HDFC MUTUAL FUND,BUY,82000,3032.40,-
02-APR-2007,GRANULES,Granules India Limited,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,80000,102.75,-
02-APR-2007,GRANULES,Granules India Limited,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED.,BUY,150000,112.31,-
02-APR-2007,INDIAINFO,India Infoline Limited,UBS SECURITIES ASIA LTD.,BUY,250000,349.52,-
02-APR-2007,SAKHTISUG,Sakthi Sugars Ltd.,MORGAN STANLEY DEAN WITTER MAURITIUS CO. LTD,BUY,392000,102.45,-
02-APR-2007,DCB,Development Credit Bank L,ABN AMRO BANK NV LONDON BRANCH,SELL,943000,64.43,-
02-APR-2007,SAKHTISUG,Sakthi Sugars Ltd.,CARLSON INVESTMENT MANAGERS.,SELL,500000,104.20,-
02-APR-2007,DIVISLAB,Divi's Laboratories Limit,HDFC MUTUAL FUND,SELL,50,3041.00,-
On the first trading day of FY07-08 the market opened with a big gap down on account of the surprise monetary tightening from RBI in the form of CRR and Repo rate hike to control inflation followed by disappointing sales figure of major Auto companies. Heavy selling pressure intensified market and markets surrendered 600 points odd and there is no confidence that this is the end yet. Market had their 2nd biggest fall in absolute terms closing near the day's low. Banking stocks were worst hit by the CRR hike, while Auto followed the roads for down fall. Only Sugar stocks managed to stand out in positive rest of all other sector were under pressure and closed in deep red. However global cues were positively firm but that did not help Indian bourses, European market started in red.
Sensex closed down by 617 points at 12455.37. Weighing on the Sensex were losses in Maruti (753.4,-8 percent), Tata Motors (669.25,-8 percent), Wipro (518.25,-7 percent), Hero Honda (639.35,-7 percent) and SBI (930.25,-6 percent). Interesting to note that there were no components of the Nifty or Sensex in positive at close.
Banking sector was the worst hit. The sector plunged down nearing to 5 % from the starting session of the trade and continued for the whole day. Following to the surprise hike in the short term interest rate and cash reserve ratio by the Reserve Bank of India (RBI) major banks sheds down to negative zone. ICICI Bank fell 5.7 % after it raised its benchmark lending rate by 100 basis points to 15.75 % . A hike in lending rate by banks will raise int erest rates on working loans of corporate. Over the last year, bank-lending rates have risen by about 300 basis points. All the banking stocks closed in red with ICICI Bank, UTI bank, Canara Bank and SBI being the major losers.
Auto sector traded weak as the major disappointing sales figure were out by Bajaj Auto and TVS Motors for the month of March 2007. The Bajaj recorded a slump in its overall sales as the number of units sold registered a 9% YoY decline. The dismal performance in the sales of two wheelers (especially motorcycles) hurt the company's performance as the sales in this segment registered a negative growth of 10%. However, its total sales for FY07 are up 19% YoY (the company sold 2.7 m units during the full year). Bajaj Auto has set itself a sales target of 3 m units for FY08, a growth of 10% YoY. The rise in interest rates and a consequent impact on two-wheeler demand can, however, hurt this growth in the current fiscal.
TVS Motor March two-wheeler sales were down 0.5% to 128,207 units from 128,857 units a year earlier. Motorcycle sales fell 13% to 73,239 units from 83,896 units, while scooterettes rose 17 % to 20,297 units from 17,410 units. Exports rose 41 % to 8,508 units from 6,032. For the fiscal year to end-March, the company sold 1.53 million units up 14 % from 1.34 million units sold the previous year. Automobile stocks ended in the negative territory with Tata Motors, M&M and Maruti (down 9% each). Hero Honda (down 7%) and Bajaj Auto (down 6%) were the losers in the two-wheeler segment .
Sugar sector traded well on board as per a leading business daily reported that 52 companies from nine States have been offered to supply 1,061 mn litres of ethanol to the oil marketing companies (OMC) for 5 % blending with petrol. The oil marketing companies had floated tenders and received offers from companies in Uttar Pradesh, Delhi, Bihar, Jharkhand, Goa, Maharashtra (partial), Tamil Nadu, Andhra Pradesh (partial) and Karnataka. The top suppliers are Shree Renuka Sugars with 217 mn litres (20.84 %), Bajaj Hindustan group 99 mn litres (10 %) and Balrampur Chini Group 44 mn litres (4.5 %). The oil marketing companies require 565 mn litres annually or about 1,700 million litres during the tender period of three years. However, the response meets about 70 % of the required quantity. The rise in crude and reduction in sugar prices benefits sugar companies and that was sweet in the market today. Almost all stocks closed in positive note with Oudh Sugar up by 9%, Dwarikesh Sugars (+5.7%), while Renuka sugars, Bajaj Hind and Balrampur Chini closed with almost good gains.
Technically Speaking: Markets traded in deep red as Sensex touched intraday high of 12811 and low of 12425. Market turnover was low at Rs 2909 cr. Overall breadth was in favor of Decliners, where the Advancers were 708 to Decliners of 11761. Sensex major support coming at 12300 for tomorrow and Resistance lies at 12691- 12944 levels.
FII Gross purchases Rs 2922.80 Cr, Gross Sellers Rs 2082 Cr, Net Buyers Rs 840.88 Cr.
MF Gross Purchases Rs 297.18 Cr, Gross Sellers Rs 380.88 Cr, Net Sellers Rs 83.70 Cr.
Thats a big plus in FII buying.. But that needs to be taken into account with the FII figures in FNO as well.. However with the increase in CRR the equation has changed, and it would be important to note the activity of the FIIs post the CRR hike.
Sensex witnessed the second biggest intra-day fall on Monday. The bears went on a rampage after the RBI tightened monetary policy on Friday by raising short-term lending rates to contain inflation. All sectoral indices were trading in red. Auto stocks plunged over six per cent.
Sensex closed near its intra-day low; at 12,455.37 points, losing 4.72 per cent or 616.73 points through the course of the day. Nifty closed at a loss of 4.92 per cent or 187.95 points, to end at 3,633.60. Earlier, Sensex had fallen by 826 points on May 18,2006, its biggest intra-day fall till date.
A surprise hike in the repo rate and the cash reserve ratio announced by Reserve Bank of India after trading hours on Friday (30 March 2007), spooked the bourses. The RBI raised its short-term lending rate, the repo rate, by 25 basis points to 7.75%. The central bank also raised the cash reserve ratio (CRR) by half a percentage point. The CRR will rise to 6.50% in two tranches, the first on 14 April 2007 and the other on 28 April 2007, and will drain Rs 15500 crore from the banking system.
'Market was expected to react negatively to this news. One is likely to see a sell off on Government securities,' Gordon Rodrigues, Head of Fund Management, Fixed Income, HSBC Asset Management Company.
Midcap and Smallcap stocks followed the broader market. The BSE Smallcap index closed at 6,294 down 2.7 per cent and the BSE Midcap index ended at 5,384.12 down 3.25 per cent.
About 684 shares advanced, 1736 shares declined, and 73 shares remained unchanged. The BSE cash turnover was Rs 2910 crore and the NSE cash turnover was at Rs 6858 crore. The total market wide turnover was at Rs 38644 crore.
'As the market was in a downtrend, the interest rate hike has only accelerated the fall. I think the market will breach the 12,300 level soon,' said Jayant Pai, vice-president of equity sales at Parag Parikh Financial Advisory Services.
Banking stocks lost 5.95% or 389 points ending at 6,152 points. A hike in lending rate by banks will raise interest rates on working loans of corporates. Over the last year, bank-lending rates have risen by about 300 basis points.
ICICI Bank fell 5.70 per cent to Rs 804 after it raised its benchmark lending rate by 100 basis points to 15.75% on Saturday. ICICI Bank also raised its floating reference rate for consumer loans, including home loans, by 100 basis points to 12.75%, effective immediately. Yes Bank raised its prime lending rate by 75 basis points to 14.75%.
Banking stocks may fall in the short term, as a further interest rate hike will be in the anvil,' feels Rashesh Shah, CEO & MD, Edelweiss Capital.
SBI lost 6.31 per cent to end at Rs 930 and HDFC Bank lost 5.03 per cent ending at Rs 901. Oriental Bank of Commerce was the biggest loser on the index; the stock ended 10 per cent lower at Rs 168.
Rate sensitive sector, auto plummeted 299 points on the BSE to close at 4,569 points down 6.15 per cent. Auto shares were hit due to concerns that any rise in lending rates will rein in demand. Sluggish-to-weak March 2007 sales was yet another reason for the fall in two-wheeler scrips. Maruti slid 8.09 per cent to close at Rs 753; Tata Motors lost 8.04 per cent to down to Rs 669 and M&M slipped 8.31 per cent to end at Rs 715.
Sugar was the only sector that was not hammered down on Monday. Several sugar stocks were trading in the green. Balrampur Chini ended up 2.05 per cent at Rs 67.25; Bajaj Hindustan rose 1.36 per cent to Rs 197 and Triveni Engineering added 2.41 per cent to end at Rs 55.
However, Rana Sugars fell 0.4% to Rs 25.05, after the company became eligible for carbon credits as per a registration with the United Nations Framework Convention on Climate Change with retrospective effect, 2003. This will raise the net profit for 2006-07 by Rs 10 crore on the 1.30 lakh units of CERs earned at $17 per unit.
As per provisional data, FIIs were net buyers to the tune of Rs 640 crore on Friday (30 March), the day when the Sensex rose 92 points ahead of RBI's announcement of a hike in repo rate and CRR.
Asian stocks edged higher on Monday (2 April 2007). Key benchmark indices in Hong Kong, South Korea and Taiwan were in the green. Only Japan was down 1.50%.
US stocks ended little changed on Friday (30 March) as word that the United States had imposed duties on some Chinese imports offset strong economic news and a pullback in oil prices. The Dow Jones industrial average finished up 5.60 points or 0.05%, at 12,354.35. The Standard & Poor's 500 Index slipped 1.67 points or 0.12%, to 1,420.86. The Nasdaq Composite Index inched up 3.76 points or 0.16%, to close at 2,421.64
Oil prices eased but held just under $66 a barrel following a near two-week rally on tensions over Iran's capture of British military personnel and worries over US gasoline supplies ahead of the summer driving season.
Domestic equities tumbled and the Sensex fell below the 12,500 mark today, on heavy selling across all sections. Shares continued to drift downward on the domestic bourses, worried by the Reserve Bank of India's decision to hike cash reserve ratio (CRR) and repo rate last Friday (30 March), after market hours.
Investor ire was so severe that index heavyweights also declined sharply. Banking, auto, construction, steel, and real estate shares were at the forefront of the decline. However, sugar shares stood tall among the ruins.
The Sensex closed at 12,455.37, a fall of 616.73 points for the day. Selling accentuated further towards the end of the trading session. It hit a low of 12,811.93, and a high of 12,425.52.
As per provisional data, FIIs were net sellers to the tune of Rs 509 crore today.
The BSE Mid-Cap Index lost 174.83 points, to close at 5,209.29, while the BSE Small-Cap Index lost 176.45 points, to end at 6,294.06.
The market-breadth was weak. Against 1,771 shares that declined on BSE, just 702 rose. Also, 73 stocks were unchanged. Losers outpaced gainers by a ratio of 2.52:1.
The BSE clocked a turnover of Rs 2910.51 crore compared to Friday’s 3011.09 crore.
Heavy selling happened in the banking sector scrips, expecting a slpwdown in credit offtake as the Reserve Bank of India (RBI) has raised its short-term lending rate, the repo rate, by 25 basis points to 7.75%. The central bank has also raised its cash reserve ratio (CRR) by half a percentage point. ICICI Bank and Yes Bank, both private banks, took the lead in raising lending rates following the RBI move.
Private sector ICICI Bank lost 5.70% to Rs 804.50, on raising its benchmark-lending rate by 100 basis points to 15.75%, effective 1 April 2007. ICICI Bank also raised its floating reference rate for consumer loans, including home loans, by 100 basis points to 12.75%, with immediate effect.
Yes Bank (down 1.99% to Rs 137.90) has also raised its prime lending rate (PLR) by 75 basis points to 14.75%.
The BSE Bankex lost 389.42 points, to end at 6,152.59. The unwinding was led by Oriental Bank (down 10.02% to Rs 168.75) followed by Punjab National Bank (down 9.35% to Rs 427.55), Bank of India (down 8.16% to Rs 154.10), Union Bank (down 7.51% to Rs 96.10), and Indian Overseas (down 6.80% to Rs 96).
The BSE IT Index was down 226.83 points, at 4,672.56. Infosys was down 4.54% to Rs 1921.20, Satyam Computers was down 5.06% to Rs 446.30, TCS had slipped 3.45% to Rs 1188.75, and Wipro ducked 7.18% to Rs 518.25.
Interest rate sensitive auto shares were also hit by concerns that a rise in lending rates will rein in demand. Investors were also dejected by sluggish-to-weak March 2007, sales from Bajaj Auto (down 5.15% to Rs 2300.60), Hero Honda (down 6.68% to Rs 639.55) and TVS Motors (down 4.45% to Rs 56.95). While Hero Honda's sales in March 2007 rose just 2% from a year ago, Bajaj Auto and TVS Motors' sales were down 9% and 0.5%, respectively.
Tata Motors shed 8.04% to Rs 669.25, and Maruti Udyog dropped 8.09% to Rs 753.40. Mahindra & Mahindra lost 8.31% to Rs 715.30.
On Saturday, ICICI Bank raised the floating reference rate for consumer loans by 100 basis points to 12.75%, with immediate effect. ICICI Bank is a major player in the auto finance segment. The move came about as the Reserve Bank of India (RBI) raised the repo rate and the CRR after trading hours on Friday (30 March).
The auto industry derives substantial demand through bank finance. Therefore, the rise in interest rates have sparked worries of a demand slowdown.
Interest rate hike had also caused the realty stocks to crumble. Indiabulls Real Estate, Parsvnath Developers, Sobha Developers, Anant Raj Industries, Unitech, and Mahindra Gesco Developers were the major losers today in this segment.
Reliance Industries (RIL) was down 4.01% to Rs 1313.50, in an overall weak market, despite signing an agreement for transporting natural gas. Reliance Industries (RIL) has signed this agreement with Gujarat State Petronet (GSPL) for transporting 11 MSMCMD from Bhadbhut in Bharuch to the company's refinery in Jamnagar, Gujarat.
Andrew Yule & Company soared 19.91% to Rs 26.80, on reports that it will hive off the electrical and engineering divisions before proceeding with divestment of equity in either. The entites hived off will be known as Yule Engineering and Yule Electrical.
HDFC dropped 5.77% to Rs 1432.70, on concerns about a slowdown in demand for loans after the housing finance behemoth raised its key lending rates 75 bps to 14.25%.
Tata Power Company lost 2.62% to Rs 496.10, up on signing definitive agreements to purchase 30% equity stakes in two major Indonesian thermal coal producers.
On the contrary, sugar shares conquered newer ground. Several sugar producers were up 2 - 3.77%, in an otherwise weak market, as buying continued in such counters. Among those to surge were Bajaj Hindusthan (up 1.36% to Rs 197.60), Sakthi Sugars (up 2.53% to Rs 103.35), Balrampur Chini Mills (up 2.05% to Rs 67.25) and Dharmpur Sugar (up 2.56% to Rs 76.20).
Godawari Power & Ispat lost 3.11% to Rs 105.80, on informing BSE that an additional 2,60,000 TPA capacity sponge iron manufacturing facility had been commissioned at the company's Siltara Industrial Complex (C.G), and production started from 31 March 2007.
Brokerage India Infoline rose 3.43% to Rs 345, amid block deals. Nearly 5 lakh shares changed hands at Rs 350 - Rs 351 each.
Tata Steel lost 4.52% to Rs 42.90. The company has agreed to sell a cold rolling mill in Gujarat to Theis Precision Steel India, for Rs 67 crore.
Mobile services firm, Bharti Airtel, slipped 2.91% to Rs 741. Bharti Airtel has lowered international tariffs by up to 11%, for its mobile customers from 1 April 2007.
Software firm Core Projects & Technologies eased 0.16% to Rs 611. Core Projects acquired US-based information technology services provider, Emacs Technologies, for $3 million. Emacs Technologies has substantial presence in logistics, healthcare, banking and financial services and the acquistion will strengthen Core Projects' practice in each of these segments.
Great Eastern Shipping Company (down 0.42% to Rs 202) has delivered its Suezmax crude carrier ‘Jag Laadki’, to the buyers. The 1992 built, 145242-dwt ship was contracted to be sold in February 2007.
Mahindra & Mahindra (down 7.01% to Rs 725.50) said on Monday vehicle sales in March rose 26% to 20,623 units from 16,400 units a year earlier. The company’s domestic auto sales, including utility vehicles, light commercial vehicles and three-wheelers, rose 27% to 19,869 units from 15,584 units a year earlier. Exports fell 8% to 754 units from 816 units. For FY-2007, Mahindra & Mahindra sold 178,229 vehicles, up 19% from 149,424 units.
Shares of sugar firm Mawana Sugars (up 8.32% to Rs 40.40) and SIEL (up 3.81% to Rs 27.25), currently undergoing a process for merger, were up after Mawana's board approved reducing the paid-up capital of the merged entity to Rs 24.64 crore from the earlier planned Rs 73.95 crore.
Asian stocks edged higher on Monday (2 April 2007). Key benchmark indices in Hong Kong (up 0.04%), South Korea (0.48%), Singapore (0.47%), China (up 2.15%) and Taiwan (0.01%) were in the green. Japan was down 1.50%.
US stocks ended little changed on Friday (30 March) as word that the United States had imposed duties on some Chinese imports offset strong economic news and a pullback in oil prices. The Dow Jones industrial average finished up 5.60 points, or 0.05%, at 12,354.35. The Standard & Poor's 500 Index slipped 1.67 points, or 0.12%, to 1,420.86. The Nasdaq Composite Index inched up 3.76 points, or 0.16%, to close at 2,421.64.
Oil prices eased but held just under $66 a barrel following a near two-week rally on tensions over Iran's capture of British military personnel and worries over US gasoline supplies ahead of the summer driving season.
The stock exchanges have clubbed settlement of Friday (30 March)’s trading with today’s trading. Therefore, brokers have advised clients not to sell shares today, which they had bought on Friday (30 March).
On Friday the Reserve Bank of India hiked the CRR as well as the repo rate in a move to curb inflation. As anticipated the Sensex opened weak with a negative gap of 260 points at 12812. The market plunged 365 points in early trades as banking stocks plummeted on panic selling. The southbound journey continued as shares across sectors witnessed relentless selling pressure. In the afternoon the market slipped below the 12600 mark as the selling intensified in the auto, banking and capital goods stocks. Among the other Asian markets only the Nikkei was down 1.5% while the Straits Times, the Hang Sang and the Jakarta Composite closed with moderate gains. The continuous selling saw the Sensex touch the day's low of 12426, down 646 points from Friday's close. The Sensex ended the session at 12455, down 617 points, while the Nifty shed 188 points and closed at 3634.
All the sectoral indices were hammered and closed with substantial losses except the BSE FMCG Index and the BSE HC Index. The BSE Auto Index dropped 6.15% at 4570, the BSE Bankex lost 5.95% at 6153 and the BSE CG Index shed 5% at 8621.
The broader market was weak. Of the 2,546 stocks traded on the BSE, 1,765 stocks declined, 709 stocks advanced and 72 stocks ended unchanged. All the 30 stocks in the Sensex basket ended in the red. Among the major losers Maruti Udyog tanked 8.09% at Rs753, Tata Motors tumbled 8.04% at Rs669, Hero Honda declined 7.39% at Rs635, Wipro slumped 7.18% at Rs518, SBI fell 6.31% at Rs930, L&T plunged 5.82% at Rs1,525, HDFC dropped 5.77% at Rs1,433, ICICI Bank slipped 5.70% at Rs805, ONGC declined 5.67% at Rs828 and Tata Steel was down 5.67% at Rs424. The other front-line stocks were down 4-5% each.
Auto and auto ancillary stocks dipped sharply. M&M tumbled 8% at Rs715, Exide Industries slumped 8.09% at Rs39, Ashok Leyland dropped 5.59% at Rs36, Bajaj Auto declined 5.15% at Rs2,301, Escorts dipped 4.98% at Rs110, TVS Motors fell 4.45% at Rs57 and Bharat Forge was down 3.89% at Rs303. Banking stocks were also battered. Oriental Bank of Commerce tanked 10.08% at Rs169, Punjab National Bank tumbled 9.35% at Rs428 and Bank Of India slumped 8.16% at Rs154. Union Bank, Indian Overseas Bank, Bank Of Baroda, UTI Bank, Canara Bank and Federal Bank shed 5-7% each.
SAIL witnessed volumes of over 22.93 lakh shares on the BSE followed by IDBI (21.24 lakh shares), Cairn India (18.71 lakh shares), Reliance Communications (17.80 lakh shares) and Reliance Petroleum (16.93 lakh shares).
Value-wise Reliance Industries registered a turnover of Rs164 crore on the BSE followed by Infosys (Rs102 crore), Reliance Communications (Rs71 crore), Tata Motors (Rs67 crore) and Reliance Capital (Rs49 crore).
Continuing its downward slide, the Bombay Stock Exchange benchmark Sensex tanked over 600 points on all-round selling triggered by RBI's move to hike key lending rate to squeeze liquidity.
The Reserve Bank on Friday hiked its short-term lending rate (repo rate) by 25 basis points to 7.75 per cent with immediate effect and cash reserve ratio (CRR) by 50 basis points to 6.50 per cent in two tranches with an aim to tame soaring inflation.
According to market players, the move has a cascading effect on market sentiment as there was panic like situation and investors resorted to heavy selling across-the-board.
Banking shares were at the receiving end while interest rate sensitive sectors like auto, consumer durables and real estate also registered sharp losses, expecting cooling down the demand for loans.
After resuming with a huge downside gap of over 260 points, the Bombay Stock Exchange (BSE) Sensex tumbled to quote at 12,455.37 at close, a sharp fall of 616.73 points over Friday's close of 13,072.10.
The wide-based S&P CNX Nifty of the National Stock Exchange (NSE) also plunged by 187.95 points to 3,633.60 from previous close of 3,821.55.
The selling was so widespread that all other sectoral indices were down by an average of 1 to 5 per cent.
Sectoral indices such as Auto, Banking, Consumer Durable and Metal were traded in negative terrain while 29 out of 30 Sensex-based stocks showed sharp falls
Reliance Industries: Likely conversion of extant refinery to EOU to result in lower taxation
# Refinery converted to EOU but development not confirmed by management
# Raised FY2008E and FY2009E EPS to reflect lower tax
# Not much impact on SOTP valuation; higher cash balance
VSNL: Near term catalysts present a good buying opportunity
# Flag listing will likely establish a valuation benchmark for TGN
# Real estate de-merger timing remains uncertain but some progress apparently
# Retain OP with SOTP-based target price of Rs560
BPCL: Issue of oil bonds of Rs50 bn for 4QFY07 is a positive for earnings and sentiment
# Government to give Rs49.7 bn of oil bonds in 4QFY07; Rs241 bn total for FY2007
# Fine-tuned estimates and gained more confidence in earnings estimates
# Valuations are attractive given certain amount of assurance on earnings
Banks/Financial Institutions: Fear of further CRR/interest rate hikes could lead to fall in banking and finance stocks
# RBI raises CRR, banks will likely increase PLR by 50bps
# Banking valuations are attractive, but stocks unlikely to perform till end of tightening period
# Sensitivity analysis shows some banks already factoring in significant NPLs
Economy: India's interest rate outlook: RBI takes unnecessary risks with the India story
# RBI hikes CRR by 50bps, repo rate by 25bps, cuts interest on CRR by 50bps
# Excessive monetary tightening a risk: CRR last increased by 150bps 20 years ago
# Futile against supply shocks; base effects, rabi crop to cut inflation in 1QFY08E
# Lending rates to increase by 100 bps ' 50 bps earlier ' in FY2008, impact growth
# Retain March 2007 10-year yield forecast at 7.5%; near-term 8.2% (from 8.1%)
# Rupee forecast at Rs44/USD FY2008E: weaker US Dollar vs forex intervention
Economy: India's December 2006 External Debt: Growing interest rate differential, project finance gap
# External debt at US$ 142.7 bn as at end-December 2006; 16.3% of GDP FY2007E
# Indicators of sustainability remain in control
# Interest rate differential, domestic project financing gap enlarging external debt
# 70%+ FII equity investment /foreign exchange reserves
Economy: India's April 2006 - February 2007 fiscal deficit: Well on track
# Center's April 2006 - February 2007 gross fiscal deficit at 80.0 % of budget estimates
# Government well on track to FY2007E 3.7% of GDP fiscal deficit
# Substantial US$ 17.3 bn government surplus with the RBI.
Economy: India's Apr-Dec 2006 balance of payments: On firm footing
# Current account deficit US$11.8 bn; sustainable 1.2% of GDP FY07E, 1% FY08E
# Invisibles strong support, BPO scaling up: US slowdown to impact momentum
# Interest rate differential, domestic project financing gap enlarging ECBs
# Rising FDI; US$ 8 bn FY2008E FII inflow assuming market consolidation
# US$ 20 bn FY08E RBI forex intervention likely to ensure domestic liquidity
# Rupee forecast at Rs44/USD FY2008E: weaker US Dollar vs forex intervention
Property: Rising interest will likely affect housing affordability in our view
# Increase in interest rates to have lesser impact on commercial, retail properties
Yesterday, the market edged higher as buying continued following a smooth rollover of the March 2007 derivative contracts. The Sensex was up 92 points at 13,072 while Nifty settled 23 points up to close at 3821. Domestic mutual funds were seen supporting prices today to prop up their year-end net asset values.
The NSE and BSE cash volumes were lower compared to the previous day at INR 75 and INR 35 bn respectively. The F&O volumes were also lower at INR 233 bn.
The Implied Volatility (IV) across Nifty strikes has increased to 25-26% levels. The WPCR of Nifty Options decreased to 0.62 compared to the previous day while the 5 day average is 0.98.
The markets are expected to open with a negative gap on the back of tightening of monetary policy by the RBI as the repo rate was hiked by 25 basis points to 7.75% and CRR rate hike by 50 basis points. We expect the Nifty may even lose 3 % led by RBI's surprise move.
We expect the FMCG, Telecom and Pharma sectors to outperform and Banking, Auto, Real Estate, Construction to under perform the broader market. One can go long on a basket of ITC, Dabur, RCOM, Ranbaxy, Aurobindo, Matrix, SAIL and short counters like ICICI bank, HDFC bank, Maruti, Tata Motors, Parsvnath, HCC, Sobha.
We believe that the gains in the last two days are just a pull back and we expect the market to fall down further. The important resistance level for Nifty is at 3832. The short term support levels are at 3780, followed by 3725.
Sell ICICI Bank with stop loss of Rs 883 for target of Rs 800. Calls valid for maximum 1 week
Sell State Bank of India with stop loss of Rs 1050 for target of Rs 900. Calls valid for maximum 1 week
Buy Bajaj Hindustan below Rs 198 with stop loss of Rs 193.50. This is a day-trading recommendation
Short sell Prasvnath Developers above Rs 257 with stop loss of Rs 261. This is a day-trading recommendation.
Mahindra & Mahindra (MAHMAH)
Price: Rs 777 Target Price: Rs 990
Mahindra & Mahindra (M&M) is the flagship of the Mahindra Group. It has two main operating divisions. The auto division manufactures utility vehicles (UVs), light commercial vehicles (LCVs) and three-wheelers. The tractor division makes agricultural tractors and related implements. Other entities, spun-off into separate business groups, include hospitality, trade and financial services, auto components, IT, telecom and infrastructure development.
At the current price of Rs 777, the stock is attractively valued at 18.5x FY07E and 16.9x FY08E EPS. With new launches, rapidly growing core business, acquisition synergies and boost from its holdings in subsidiaries, the prospects of the company look promising. We expect the stock to touch around Rs 990, with its holdings in subsidiary companies valued at around Rs 438
Market is likely to resume weak after central bank surprised the market investors by hiking the repo rate and cash reserve ratio on Friday, around three weeks before the annual policy statement. This RBI's move may have a negative impact on the Sensex shares, but banking and real estate shares are expected to hit the most. However, firm Asian markets in current trades and a positive close in the US markets may release some pressure on the domestic indices. Among the local indices Nifty has a resistance within the 3830-3850 range and has a support at 3770 while, the Sensex has a support at 12800 and the resistance at 13100.
Major US indices registered marginal gains on Friday. While the Dow Jones moved up by six points at 12354, the Nasdaq moved up by four points to close at 2422.
Crude oil prices eased, with the Nymex light crude oil for May delivery falling by 16 cents to close at $65.87 a barrel. In the commodity space, the Comex gold for June delivery gained $1.40 to settle at $669 an ounce.
NIFTY (3821) SUP 3808 RES 3845
BUY GDL (165)
SL 161 T 173, 175
BUY CROMGREAV (199.55)
SL 175 T 208, 210
SL 465 T 479, 482
SELL YESBANK (140)
@ 142 SL 145 T 134, 132
SELL LITL (158)
@ 160 SL 164 T 150, 148
Sugar Incentives - positive move in short term
The Government has reportedly announced a series of measures to provide short term support to the sugar industry. These measures include:
1. A subsidy of Rs1.35/kg for coastal states like Maharashtra, Tamil Nadu, Karnataka and Gujarat while a subsidy of Rs1.45/kg for north based mills.
2. Creation of a buffer stock of about 2mn tons.
3. With an estimated sugar inventory of about 8mn tons by September 2007, the buffer stock would lower the cost of holding for the companies which would be borne by the government.
Companies with sizable re-export obligations are expected to take advantage subsidy schemes to partially liquidate their inventories accumulated as a result of bumper cane crop in the current seasons.
For instance, Sakthi Sugars, one of the largest exporters, has an obligation under the Advance License Scheme (ALS) of about 200,000MT to be exported by December 2007. The average import price of raw sugar was about US$200/ton while the company expects export realizations of about US$310/ton which would translate into domestic price of Rs13.2/kg which, coupled with the export subsidy of about Rs1.35/kg, would lead to net export realization of about Rs14.5/kg.
No Impact On Larger PlayersLarger sugar companies like Bajaj Hindustan, Balrampur Chini Mills and Triveni Engineering and Industries do not have any obligation under ALS hence would remain unaffected by any such scheme. These companies may, however, look at fresh exports if domestic prices tumble further since this would help them liquidate mounting stocks albeit at lower international realizations.
Gujarat Ambuja Cement Ltd: Shri A L Kapur, Director has sold in open market 90000 equity shares of Gujarat Ambuja Cement Ltd on 26th March, 2007.
Bilpower Limited: Rajendra Kumar Choudhary, Director has purchased from open market 91000 equity shares of Bilpower Limited on 29th Mach, 2007.
Deepak Fertilizers And Petrochemicals Corporation Limited: Shri Chimanlal K Mehta, Chairman has sold in open market 1000000 equity shares of Deepak Fertilizers And Petrochemicals Corporation Limited on 22nd, 23rd and 26th March, 2007
The turnover on NSE was down by 33% to Rs75.17bn. BSE Pharma index was the major gainer and gained 1.89%. BSE Metal index (up 1.71%), BSE FMCG index (up 1.57%), BSE Auto index (up 1.36%) and BSE Consumer Durable index (up 0.98%) were among the other major gainers.
IFCI, Sakthi Sugar, ITC, SAIL, Ashok Leyland, Balrampur Chini, Bajaj hindusthan, Gujarat NRE, Gujarat Ambuja, Renuka Sugar, NTPC, Tata Steel, R Com, hindalco, IDFC, Satyam Computer and Rana Sugar.
Amara Raja, Flex Industries, Shah Alloys, Alps Industries, McLeod Russel, Nirlon, Swan Mills, DS Kulkarni, Ganesh Housing, Goldiam International, Taneja Aerospace, Tanla and Vakran Software.
Aptech, Bajaj Auto, Bajaj Hindustan, Eveready Industries, HLL, Indiabulls Financial Services, Indian Hotels, Indian Hotels, L&T, Maharashtra Seamless, NTPC, NDTV, Patel Engineering, Ranbaxy Laboratories, Reliance Capital and Sun Pharmaceuticals.
Aurobindo Pharma – Buy from Edelweiss
Long Term investment:
Dr Reddy’s Laboratories
Major News Headlines
Inflation unchanged at 6.46% in week ended March 17
Hero Honda says March sales flat at about 275,000 units
Gail plans to spend Rs180bn on expansion
Patel Eng-Gammon JV bags Rs8.06bn order from Rampur Hydro Electro Project
Tata Power buys 30% in 2 Indonesian coal mines
Moser Baer arm buys 40% in Slovenian Company
Abbott Labs sues Ranbaxy, Teva, Sandoz to block regulatory nod of a generic version of antibiotic Omnicef
That sinking feeling again!
The anchors now made are contrived so as to sink into the ground as soon as they reach it, and to hold a great strain before they can be loosened or dislodged from their station.
The only anchor we seem to be having is that the long term story is intact. We don't think the bulls were Reddy for this when they downed their shutters on Friday. That fresh monetary tightening measures were on the cards was a given, but what was not accounted for by the markets was the timing of it. Though this is not the first time the RBI has decided to tighten up in-between scheduled policy meetings, it is somewhat unusual in terms of its aggressive intent. The Government and the central bank are absolutely adamant on taming inflation and curbing credit growth to sensitive sectors. This is likely to have an impact on the markets, and to a certain extent on economic growth and corporate earnings too.
Without much ado, we would say that notwithstanding a firm trend in Asian markets, the bulls here will simply run for cover as the markets open. Though we expect an overall carnage, Banks, Autos, Real Estate and other rate sensitive sectors will be the worst hit.
IT shares will be in focus due to the rise in the rupee and its impact on earnings. Plus, the fourth quarter results will be out soon. Stock market darling and IT giant Infosys will be among the first one to report. It will also announce its guidance for the next fiscal year. A lot will hinge on what the Infosys management has to say on April 13th.
One thing is sure that the trend in the near term is definitely down, how much is a million dollar question. Staying in cash, if at all one is making profits, will be the most prudent thing to do at thins juncture. One should wait for at least this month before taking a call on the market. Things are not looking healthy, locally or globally.
There is more downside than upside. Earnings going forward could also slowdown due to high commodity prices and hardening interest rates. Though India Inc's report card for Q4 may turn out to be strong, inflation and interest rates will continue to cast their spell on the market. Some softening in these numbers over the next couple of months could happen and may lend support to the market.
FIIs were net buyers of Rs6.4bn (provisional) in the cash segment on Friday. In the F&O segment, they offloaded stocks worth Rs1.29bn. On Thursday, foreign funds were net sellers worth Rs3.59bn in the cash segment. Mutual Funds were net sellers to the tune of Rs600.1mn.
US shares finished mixed on Friday amid high volatility as Washington's fresh trade measures against China overshadowed positive economic news. All the three main stock indices couldn't keep the momentum going on the last day of what was a good month.
The S&P 500 index finished nearly unchanged at 1420.86. The Dow Jones Industrial Average added 5.6 points to 12,354.35. The Nasdaq Composite Index gained 3.76 points, or 0.2%, to 2421.64.
In March, the Dow gained 0.7%, the S&P 500 rose 1% and the Nasdaq added 0.2%. In the January-March quarter, the Dow lost 0.9%, the S&P 500 gained 0.2% and the Nasdaq was up 0.3%. The quarter was the most volatile for US stocks in four years. Also, the Dow posted its first quarterly decline since 2005.
The dollar weakened against the euro and yen and Treasuries ended little changed. Meanwhile, energy shares fell following oil's first decline in nine days. Crude futures slipped 16 cents to US$65.87 a barrel in New York as 15 British naval personnel captured in the Persian Gulf remained in Iranian custody for an eighth day, heightening concern that the standoff could disrupt supply. Oil rallied 6% in the past week and is up 4% for the month. Front-month crude futures was trading flat at $65.88 a barrel in extended trading in Asia.
European stocks finished the first quarter on a mixed note on Friday. The pan-European Dow Jones Stoxx 600 index closed the session down a fraction of a percentage point at 374.22. The index increased 2.4% in the first quarter. On Friday, the French CAC-40 closed 0.1% higher at 5,634.16 and the German DAX Xetra 30 advanced 0.3% at 6,917.03. The UK's FTSE 100 finished down 0.3% at 6,308.00.
Asian stocks rose this morning, led by Honda and Sony, after a survey showed that Japan's largest companies plan to increase capital spending by more than economists estimated. The Morgan Stanley Capital International Asia-Pacific Index climbed 0.5% to 145.38 as of 11:19 a.m. in Tokyo. Japan's Nikkei 225 Stock Average advanced 79 points to 17,367 while the the Hang Seng in Hong Kong jumped 142 points to 19,943. The Kospi in Seoul climbed 9 points to 1462 and the Straits Times index in Singapore was up 26 points at 3257.
Yet another Manic Monday likely
Financial year 2006-07 ended on a firm note as markets managed to close in green. However, week on week the struggle continued for the bulls as benchmark Sensex fell by 1.61% or 214 points and NSE Nifty declined 40 points or 1.02%. The markets opened on a strong and also registered strong closing led by gains in the index heavy weights like Dr Reddy’s Lab, ITC, Tata Steel, Hindalco, Tata Motors and Infosys. All the sectoral indexes ended in green with Pharma, Metal and FMCG leading the pact. The mid-Cap and the small cap indexes also participated in the rally aiding the markets to close on a strong note. Finally, the 30-share benchmark Sensex advanced 92 points to close at 13072. NSE Nifty rose 23 points to close at 3821.
Drug maker Jupiter Bioscience jumped 10% to Rs144.30, on media reports of the company planning to raise Rs100crore through private placement of shares. The scrip touched an intra-day high of Rs144.30 and a low of Rs133 and recorded volumes of over 3,00,000 shares on NSE.
Patel Engineering surged over 2.5% to Rs338 after the company’s Joint Venture won Rs8.06bn order from Rampur Hydro Electro Project. The scrip touched an intra-day high of Rs356 and a low of Rs336 and recorded volumes of over 58,000 shares on NSE.
Gitanjali Gems advanced 3.6% to Rs199 after the company announced that they would foray into Luxury retail market and to spend Rs1bn to establish luxury malls. The scrip touched an intra-day high of Rs202 and a low of Rs194 and recorded volumes of over 3,00,000 shares on NSE.
McDowell advanced 1.3% to Rs832 after government announced that high duties on wine, Spirits to be corrected. The scrip touched an intra-day high of Rs842 and a low of Rs825 and recorded volumes of over 1,00,000 shares on NSE.
Select FMCG stocks bounced back after witnessing profit booking in early trades. Dabur rose 4.8% to Rs95, ITC was up 2.8% to Rs151 and Colgate rose 1.4% to Rs332. However, Marico and Godrej Consumer marginally declined.
Pharma stocks looked to be in pink of health. Glaxo surged by over 3.5% to Rs1120, Sun Pharma was up by over 4% to Rs1056, Dr Reddy’s Lab gained 3% to Rs728 and Cadila added 3% to Rs339.
Technology stocks recorded smart gains. Heavy weight Infosys advanced 1.5% to Rs2018 and Satyam Computer gained 2% to Rs470. Moser Baer, Mastek and Polaris were the major gainer among the Mid-Cap stocks.
Oil & Gas refinery stocks were on the receiving end as crude oil for May delivery rose $1.95 to settle at $66.03 a barrel in New York. BPCL lost by 3.1% to Rs302, HPCL down by 0.7% to Rs247 and IOC declined by 1.4% to Rs399.
The market is likely to slide today following a surprise hike in short term interest rate and CRR announced by RBI after trading hours on Friday 30 March. The RBI move comes at a time when there is already uncertainty about market’s direction.
Soon after the RBI announcement, the top private sector bank ICICI Bank on Saturday 31 March 2007 raised its benchmark lending rate by 100 basis points to 15.75%. A hike in lending rate by banks will raise interest rates on working loans of corporates. Over the last year, Indian bank lending rates have risen by about 300 basis points
Reserve Bank of India (RBI) raised its short-term lending rate, the repo rate, by 25 basis points to 7.75%. It also raised its cash reserve ratio (CRR) by half a percentage point. The CRR will rise to 6.50% in two tranches, the first on 14 April 2007 and the other on 28 April 2007. The CRR hike will drain Rs 15500 crore from the banking system. "In the light of the current macroeconomic, monetary and anticipated liquidity conditions, as well as with a view to containing inflation expectations, it is critical to take demonstrable and determined action on an urgent basis," RBI said in a statement.
The stock exchanges have clubbed settlement of Friday (30 March)’s trading with today’s trading. Therefore, brokers have advised clients not to sell shares today which they had bought on Friday (30 March).
As per provisional data, FIIs were net buyers to the tune of Rs 640 crore on Friday (30 March), the day when Sensex had risen 92 points ahead of RBI’s announcement of hike in repo rate and CRR.
Asian stocks edged higher on Monday (2 April 2007). Key benchmark indices in Hong Kong, Japan, South Korea, Singapore, China and Taiwan were up by between 0.5% to 1.3%.
US stocks ended little changed on Friday (30 March) as word the United States had imposed duties on some Chinese imports offset strong economic news and a pullback in oil prices. The Dow Jones industrial average finished up 5.60 points, or 0.05 percent, at 12,354.35. The Standard & Poor's 500 Index slipped 1.67 points, or 0.12 percent, to 1,420.86. The Nasdaq Composite Index inched up 3.76 points, or 0.16 percent, to close at 2,421.64
Oil prices eased but held just under $66 a barrel following a near two-week rally on tensions over Iran's capture of British military personnel and worries over US gasoline supplies ahead of summer driving season.
The near term major trigger for the market is Infosys’ guidance for FY 2008 (year ending 31 March 2008). Infosys will unveil its FY 2008 guidance along with its Q4 March 2007 results on 13 April 2007. In a recent pre-guidance report on Infosys, Merrill Lynch has given short term sell on Infosys as its expects a conservative guidance by Infosys due to uncertain US economic outlook, rupee appreciation versus dollar and client specific issues. It expects Infosys to give EPS growth guidance in early 20s
|Apr 2 2007||BPL Ltd||BPL Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 02, 2007, to consider lease and / or transfer of Printed Circuit Board (PCB) Business to a proposed Joint Venture of the Company and to invest in the Equity Share Capital of that Joint Venture Company subject to necessary approvals and authorise the execution of appropriate agreement(s) in that regard. The Board would also be considering a proposal to issue Securities on Preferential basis.|
|Apr 2 2007||Dollex Industries Ltd||Dollex Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 02, 2007, inter alia, to approve the following business:1. To Authorise one of the director to participate, file and execute the tender for lease of Sugar Factory _ Raibaug S.S.K. in Karnataka.2. To Appoint Mr. Dhyaneshwar J Salunkhe as an Executive Director.|
|Apr 2 2007||Flawless Diamond (India) Ltd||Flawless Diamond India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 02, 2007, inter alia, to consider the preferential allotment of shares to Bennett Coleman & Co Ltd.|
|Apr 2 2007||S & Y Mills Ltd||S&Y Mills Ltd has informed BSE that the meeting of the Board of Directors of the Company will be held on April 02, 2007, inter alia, to take on record the change of the name of the Company and to discuss the creation of a subsidiary Company proposed to be named as Pittsburgh Infrastructure Ltd.|
|Apr 2 2007||Superhouse Ltd||The Board of Directors of the Company will be held on March 31, 2007 and April 02, 2007, to allot the 7,00,000 Equity Shares to the Promoters / Promoter Group in lieu of warrants alloted to them on preferential basis.|
|Apr 3 2007||Granules India Ltd||Granules India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 03, 2007, inter alia, to consider the "Issue of equity shares to ISP Investo LLC on preferential basis" subject to the approval of the shareholders of the Company.|
|Apr 3 2007||N.R International Ltd||NR International Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 03, 2007, inter alia, to fix the Record Date for determining the entitlement of Bonus Shares.|
|Apr 3 2007||Shiva Cement Ltd||Shiva Cement Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 03, 2007, to consider the allotment of Equity Shares upon conversion of equity share warrants|
|Apr 4 2007||S S Organics Ltd||Quarterly Results|
|Apr 4 2007||SB & T International Ltd||SB&T International Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 04, 2007, to consider the Scheme of Amalgamation between Mimansa Jewellery Pvt Ltd and its Members and the Company and its Members for the Amalgamation of Mimansa Jewellery Pvt Ltd with the Company.|
|Apr 5 2007||G M Breweries Ltd||GM Breweries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 05, 2007, inter alia, to consider the following:1. To approve and take on record the Audited Accounts for the year ended March 31, 2007.2. To consider and recommend dividend on Equity Shares.|
|Apr 5 2007||Kamadgiri Synthetics Ltd||Kamadgiri Synthetics Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 05, 2007, inter alia, to consider, on expansion of the Company by way of acquisition, merger, amalgamation or otherwise.|
|Apr 5 2007||R Systems International Ltd||R Systems International Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 05, 2007, inter alia, to adopt & approve the annual report and authorize the calling of the annual general meeting for the financial year ended December 31, 2006.|
|Apr 5 2007||Responsive Industries Ltd||Responsive Polymers Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 05, 2007, inter alia, to consider, to allot Bonus Shares in the ratio of 3 equity shares of Rs 10/- each for every equity shares of Rs 10 each held (3:1) to the Members of the Company.|
|Apr 5 2007||Simplex Realty Ltd||Simplex Realty Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 05, 2007, to consider the following:1. Preferential Issue of warrants to promoters.2. Preferential Issue of Equity shares on private placement basis to QIBs under QIP.3. Delegations of Powers to committee and determination of the terms and conditions of proposed issues.|
|Apr 5 2007||Software Technology Group International Ltd||Software Technology Group International Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 05, 2007, inter alia, for the issuance of convertible warrants to Non-Promoters strategic investors on preferential basis.|
|Apr 5 2007||Sun TV Ltd||Sun TV Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 05, 2007, to consider and approve the following:1. Sub-division of shares of the Company.2. Increasing the authorised share capital of the Company.3. Increasing the limit to invest funds of the Company.4. Increasing the limit to borrow funds and mortgage / hypothecate properties / assets of the Company.5. Change of Object Clause of Memorandum of Association of the Company.|
A Volatile US Market ends first quarter on a mixed note
Wall Street experiences its worst quarterly performance since past couple of years
It was a volatile market day on Friday but ultimately US Market ended the day in a mixed note after Dow traded in a 174 point range for the day. While the day’s trading marked the end of first quarter of 2007, it was Dow’s worst quarterly performance since Q2 2005. For Nasdaq and S&P 500, it was the worst quarterly performance since Q2 2006. Dow ended the quarter down by 0.9%. Nasdaq and S&P 500 ended the quarter up by 0.3% and 0.2% respectively.
On Friday, after opening on a good note following a couple of good economic reports, the market initially took a sharp downturn after news that the U.S. has imposed trade sanctions on China and as tensions over a stand-off between Iran and the UK kept oil prices near $66 a barrel. But stocks recovered some ground in the final hour of trading as oil fell.
For the day (30 March, Friday) the Dow Jones Industrial Average closed higher by 5.6 points at 12354.35, Nasdaq higher by 3.76 points at 2421.64 but S&P 500 lower by 1.67 points at 1420.86. Caterpillar, Altria, Verizon, 3M and AT&T were the main Dow winners while Boeing, Exxon Mobil, General Motors and GE were the major Dow laggards.
For the quarter, the sectors that performed well were utilities, energy, cyclical and materials. On the flip side were homebuilders, airliners and Financials.
Market overlooks inflation report; pays more heed to Chicago Index and oil
The stock market started the day on a positive note following news that the Chicago Purchasing Managers Index, a regional manufacturing report, was a much stronger than expected 61.7% in March as against Wall Street economists ‘expectation of 50%. There was also a boost from key inflation data for February. February income and spending were both up 0.6% versus the market's expectations for a gain of 0.3% in each. Core inflation matched economists' expectations.
But the core-PCE component of the Personal Income and Spending report, which is the Fed's favorite inflation gauge was up 0.3% (consensus 0.2%) which pushed the annual rate up to 2.4% from 2.2% in January. The Fed's target range for core-PCE is 1% to 2%. Market overlooked this report.
Telecom services were the only economic sector showing a gain during the first half of the day. Utilities and Energy were the loss leaders, but the lack of participation from the financial and technology sectors were also weighing heavily on the broader market.
For the day and week ending 30 March, Friday, crude-oil futures for light sweet crude for May delivery closed at $65.87/barrel (lower by $ 0.16/barrel or 0.24%) on the New York Mercantile Exchange. Crude prices fell today after rising for 8 straight sessions amid tensions between Iran and UK. The benchmark May crude contract finished nearly 5.7% higher for the week and 4% higher for the month. Prices are down 1.8% from a year ago.
Trading volumes picked up, with 1.6 billion shares exchanging hands on the New York Stock Exchange and 2.1 billion trading on the Nasdaq stock market. Rising shares outpaced decliners by 9 to 7 on the NYSE and by 4 to 3 on the Nasdaq.