Sunday, August 08, 2010
Shares of Jagran Prakashan Ltd. fell after Independent News & Media Plc. sold its entire stake in the Indian newspaper publisher. According to reports, Independent News & Media Investments Ltd. sold about 5.7% stake in Jagran Prakashan for over Rs2bn. The 100% subsidiary of UK-based media company sold shares in Jagran at Rs118 apiece. ICICI Securities was the sole advisor to Independent News & Media on this transaction, according to reports. Independent News & Media had acquired a 26% stake in Jagran in 2005 at Rs467 per share from Jagran's promoters. But it has been selling its stake in Jagran since July 2009 as a part of its strategy to exit non-core assets. In March 2010, Independent News & Media sold 7.5% equity in Jagran for Rs2.55bn to pay off its debt.
Maruti Suzuki launched Alto with ex showroom Mumbai price of non metalic Alto K 10 Lxi- Rs3.19 Lakh and Alto K 10 Vxi - Rs3.32 Lakh. This version, called 'Alto-K10' comes with improved suspension, new cable-type transmission, superior brake system and more Knee-room for rear seat passengers. The existing Alto clocks average sales of around 20,000 units a month, Maruti said. With the launch of the new version, the company expects Alto's overall sales to increase. While the existing Alto will continue to be on sale, the new Alto-K10 is targeted at customers who desire more features and performance at an economical cost. The existing Alto holds the record of selling the highest number of units in a month. It sold a staggering 25,340 units in May this year.
Shares of Hathway Cable, Den Networks and WWIL jumped after telecom cum broadcasting regulator TRAI said that all cable operators in the country should switch to digital cable television systems by December 2013. Shares of DTH operators Dish TV and Sun TV also gained amid optimism that the TRAI ruling may prompt many consumers to opt for DTH services.
India's food price inflation eased for the second consecutive week in July even as inflation in Primary Articles and Fuel groups remained nearly unchanged at an elevated level, data released by the Government showed. Inflation in the Non-Food space climbed but prices in the Minerals group declined, the data showed. According to the Commerce Ministry data, inflation in the Food Articles group stood at 9.53% in the week ended July 24 as against 9.67% in the previous week. Inflation in this group was at 14.58% in the week ended July 25, 2009.
The struggle continues for the bulls, with the NSE Nifty once again failing to surpass the 5500 mark after being within striking distance of the milestone. Weak trading volume this week underscores the fatigue factor though select Small-Caps and Mid-Caps continued to reign supreme. Globally the situation is far from comforting with questions now being raised about the strength of the US recovery. In fact, there is speculation that the Fed could have to unveil a fresh round of stimulus to kick-start the economy. Surprisingly, Europe appears to be holding up quite well though it also is not completely out of the woods. Uncertainty also continues over China's growth prospects.
The premium BlackBerry mobile service by Research In Motion's (RIM) came under attack from a few countries as it doesn't give access to security agencies wary of its misuse by miscreants. India, Saudi Arabia, UAE, Indonesia, Lebanon and Algeria all voiced concerns over lack of access to communications sent through the popular smartphone device.
The finance ministers of state governments rejected a draft bill to amend the Constitution for introducing a pan-India goods and services tax (GST) regime from the next fiscal year. The reason for this deadlock is not the GST rates but the role of the Union Finance Minister on the general council body.
Investors could consider giving the Prakash Steelage IPO a miss considering the company's limited product profile and susceptibility to pressure on realisations due to volatile stainless steel prices. The issue is priced between Rs 100 and Rs 110, which translates into a post-issue P/E of 9.8 to 10.8 times 2009-10 earnings compared to seven times earnings for the more diversified, less-leveraged and larger Ratnamani Metals. Investors may find better hedged bets in the sector in the form of diversified pipe producers that have a wider product line to tide over blips in demand and superior margins.
Investors with a medium-term horizon may buy the stock of Gitanjali Gems on the strength of its brands, retail reach in domestic markets and an expanding overseas retail presence. Growth prospects hinge on exploiting the relatively untapped domestic branded jewellery market, besides facing a lower degree of competition in this space.
Despite its June quarter results being in line with expectations, the stock of Reliance Industries Ltd (RIL), India's largest private sector company, saw no respite from its weak run. The markets seem to be have been spooked by the temporary cap on gas output from the KG-D6 basin. This, combined with concerns over overcapacity in the petrochemicals business has resulted in RIL's lacklustre run at the bourses.
Healthy auto sales, strong manufacturing and services sector data, revival of the monsoon rains in the crucial sowing month of July, sustained buying by foreign funds and firm global equities, boosted the domestic bourses as the barometer index BSE Sensex moved past the psychological 18,000 level. The Sensex and the 50-unit S&P CNX Nifty scaled 2-1/2-year highs on Thursday, 5 August 2010.