- Recurring PAT up 18% YoY — NTPC reported its FY07 un-audited results at a press conference today. Recurring PAT at Rs65.6bn up 18% YoY was 5% below our estimate of Rs69.2bn. This was a disappointing given that after growing 19.5% YoY in the first 9mFY07, full-year numbers imply that 4QFY07 recurring PAT grew a tepid a 4–5%. We await the audited FY07 numbers for clarity.
- 5,710MW added in the Xth Plan — NTPC added 5,710MW in the Xth Plan period, acquired the 705MW Badarpur TPS, and took a 28.33% equity stake in Ratnagiri TPS. Slippages into the next plan include the 1,000MW Sipat II and 500MW of Kahalgaon Stage II, which is likely to be added in FY08E along with 660MW of Sipat I and 500MW of the SAIL Bhilai expansion.
- Capacity increasing 2x in 5 years and 3x in 10 years — We would not be unduly concerned with a weak 4QFY07 as NTPC aims to double its capacity by FY12E and triple capacity to 76GW by FY17E. Its capex is well funded with low current gearing of 0.45x, it has high current cash levels of Rs84.7bn, a strong credit rating and a high annual cash flow from operations of Rs175bn for FY07E-15E.
- Our top pick among the Indian electric utilities — NTPC is our top pick in the Indian Electric Utility space for its defensiveness (particularly for investors who are benchmarked against broad market indices), large market capitalization, regulated earnings stream and secular growth.
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Thursday, April 05, 2007
Citigroup - National Thermal Power (NTPC.BO): FY07 - Good Year, But Could Have Been Better
Sensex gains 69 points
A day after the Sensex gained over 160 points on sustained all-round buying, the market witnessed a range-bound trend during intra-day trades. The market opened marginally above yesterday's close, but soon eased on selling pressure in several front-line stocks and touched an intra-day low of 12712. However, buying at lower levels in select stocks lifted the index into positive territory. The mood was cautious, as the Sensex remained subdued in the afternoon. The inflation numbers came in a little higher than expected, although the inflation declined to 6.39% in the week ended March 24 as compared to 6.46% in the previous week. A smart bounce back and buoyancy in heavyweight, metal and banking stocks towards the close saw the index surge to an intra-day high of 12899. The Sensex finally ended the session with gains of 69 points at 12856, while the Nifty added 19 points to close at 3752.
The breadth of the market was overwhelmingly positive. Of the 2,578 stocks traded on the BSE, 1,651 stocks advanced, 856 stocks declined and 71 stocks ended unchanged. Except the BSE Oil & Gas Index the remaining sectoral indices closed higher. The BSE Metal Index rose 3.07% at 8624 followed by the BSE Bankex (up 1.89% at 6372) and the BSE CD Index (up 0.82% at 3604).
Most of the Sensex stocks finished with gains. Tata Steel soared 6.16% at Rs465, Reliance Energy jumped 2.73% at Rs501, Grasim surged 2.38% at Rs2,113, ICICI Bank added 2.19% at Rs839, HDFC advanced 2.18% at Rs1,530, HDFC Bank gained 1.87% at Rs943, Cipla advanced 1.40% at Rs232, Maruti Udyog added 1.38% at Rs756 and Hindalco was up 1.34% at Rs132. However, Dr Reddy's shed 2.19% at Rs729, Hero Honda was down 1.78% at Rs632 and NTPC fell 1.37% at 159. Reliance Industries, ITC, ONGC, TCS, Bharti Airtel, L&T and Bajaj Auto closed with marginal losses.
Steel stocks were in the limelight. Among the metal stocks JSW Steel surged 4.91% at Rs497, Hindustan Zinc spurted 4.70% at Rs648, Jindal Steel jumped 3.87% at Rs2,386, Jindal Stainless added 2.91% at Rs122, SAIL gained 2.23% at Rs115 and Jindal Saw was up 1.12% at Rs470.
Over 4.25 crore IFCI shares changed hands on the BSE followed by India Bulls Retail (66.43 lakh shares), Balrampur Chini (39.15 lakh shares), NTPC (28.92 lakh shares) and Tata Steel (24.83 lakh shares).
Tata Steel registered a turnover of Rs114 crore on the BSE followed by Reliance Communication (Rs61 crore), Reliance Capital (Rs48 crore), Reliance Industries (Rs47 crore) and SBI (Rs47 crore).
Sensex sheds 216 points on hike interest rate
The market staged a recovery from Monday’s steep fall that was caused by RBI’s surprise hike in short term interest rate and cash reserve ratio announced after the markets had closed on Friday 30 March 2007. Firm global markets and cooling off oil prices aided the recovery from lower level in the short trading week.
But the market ended the week in the red. The 30-share BSE Sensex lost 216.02 points or 1.6% to 12856.08 in the week ended Thursday 4 April 2007. The S&P CNX Nifty shed 69.55 points or 1.8% to 3752 in the week.
BSE Mid-Cap index lost 64.17 points or 1.1% to 5319.95 whereas BSE Small-Cap index lost 14.14 points or 0.2% to 6456.37 in the week.
A surprise hike in the repo rate and the cash reserve ratio (CRR) announced by the Reserve Bank of India (RBI) after trading hours on Friday (30 March 2007) spooked the bourses on Monday (2 April). The Sensex plunged 616.73 points (4.72%), to settle at 12,455.37. Bank and auto shares led the sharp fall on the day. Sensex’s intra-day fall of 646.58 points on that day was its biggest intra-day point fall since 28 February 2007.
The latest rate hike reignited concerns that economic growth will slowdown due to sustained rate rises. 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.
The market recovered on Tuesday (3 April) taking support from steady to firm Asian and European bourses. Sensex jumped 170 points. All sectoral indices on BSE settled with gains, and shares from the IT sector led the uptrend on that day.
The market extended its recovery on Wednesday (4 April) tracking firm Asian stocks. Sensex added 162 points. Asian stocks extended their rally on Wednesday, with Australia, Singapore and South Korea hitting record highs, inspired by a reassuring US housing data and falling oil prices.
The recovery continued on Friday (5 April) when the barometer index Sensex advanced 69 points. Buying in metal, banking and cement sectors lifted the bourses on that day. The market remains closed on Friday (6 April) on account of Good Friday.
Foreign institutional investors (FIIs) were in selling mode. They pressed sales worth a net Rs 643.40 crore in two trading sessions between Monday and Tuesday. Mutual funds were net buyers to the tune of Rs 63.30 crore on Monday. On Tuesday, they pressed sales worth a net Rs 105 crore.
Shares of two-wheeler makers slipped following disappointing sales for the month just gone by. Hero Honda shed 7.6% to Rs 632.45 in the week.
Cement shares recovered from lower level as cement producers did not cut cement prices despite the government abolishing import duties. The government late on Tuesday (3 April) abolished the 16% countervailing duty (CVD) and an additional 4% customs duty on portland cement. It may be recalled that in late-January 2007, the government had already abolished 12.5% basic import duty on cement.
IT bellwether Infosys witnessed alternate bouts of buying and selling. Infosys’ FY 2008, which it will unveil along with Q4 March 2007 results, on 13 April 2007, is the next major trigger for the market. In a recent pre-guidance report on Infosys, Merrill Lynch placed a short-term 'sell' on the Sensex heavyweight, expecting a conservative guidance from the company due to an uncertain US economic outlook, the appreciation of the rupee versus the dollar and other client-specific issues. Merill Lynch expects Infosys to give an EPS growth guidance in the early 20s.
Bank shares recovered during the latter part of the week after Monday’s steel fall caused by RBI’s surprise rate hike. The rise in lending rates is expected to slowdown loan growth which has been running at about 30%. ICICI Bank raised 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%. Yes Bank raised its prime lending rate by 75 basis points, to 14.75%.
Tata Steel surged after the company on Monday reported strong sales and production for FY 2007. The scrip rose 3.4% to Rs 465.20 in the week. Tata Steel’s sales in FY 2007 were record-breaking for both flat and long products.
PSU power equipment major Bhel witnessed renewed buying after the company during trading hours on Tuesday reported 42% growth in provisional net profit for FY 2007. Bhel's net profit rose 42% to Rs 2385 crore in FY 2007 (year ended 31 March 2007) from Rs 1679 crore in FY 2006. Turnover rose 28.7% to Rs 18702 crore from Rs 14525 crore in the year ago period.
Metal prices Sterlite Industries, Hindustan Zinc and Hindalco recovered tracking rally in metal prices on the London Metal Exchange (LME).
The market regulator Securities & Exchange Board of India proposed applying circuit filter on the day of relisting in a scrip. Sebi has proposed that 20% price band would be levied on commencement/re-commencement of trading in a scrip which would include all the cases of commencement/ re-commencement of trading due to de-merger, amalgamation, capital reduction, scheme of arrangements, revocation of suspension, etc. as decided by the exchanges from time to time.
On Wednesday, Sebi banned 28 stock broking firms and eight individuals from trading in shares for five years for their role in the Ketan Parekh securities scam. These entities have also been debarred from accessing capital market and associating with any intermediary in capital market for five years.
The empowered group of ministers (GoM) on special economic zones (SEZs) on Thursday cleared 83 proposals, and capped the maximum area of an SEZ at 5,000 hectares. The maximum area is for multi-product zones, and the state governments can prescribe a lower limit if needed. GoM has also decided to lift the freeze on approving new special economic zones. It may be recalled that the GoM at its last meeting in January 2007 put a freeze on fresh notifications and approvals due to widespread protests against land acquisition for SEZs, especially at Nandigram in West Bengal.
China's central bank has ordered commercial banks to set aside money as reserves for the sixth time in 10 months, in an aim to further control liquidity and curb lending. The bank raised the reserve ratio by another 0.5 percentage point to 10.5 percent, effective from April 16, the People's Bank of China said on Thursday.
On the same day, Bank of England held British interest rates steady at 5.25 percent.
Market to consolidate
The market is expected to consolidate at current levels, before making any big move further. IT bellwether Infosys which is set to kickstart the earnings season with Q4 March 2007 results, on 13 April 2007, may provide the trigger for the market. In a recent pre-guidance report on Infosys, Merrill Lynch placed a short-term 'sell' on the Sensex heavyweight, expecting a conservative guidance from the company due to an uncertain US economic outlook, the appreciation of the rupee versus the dollar and other client-specific issues. Merill Lynch expects Infosys to give an EPS growth guidance in the early 20s.
The next major trigger for the domestic bourses is Q4 March 2007 earnings. Analysts expect Q4 results to be strong. The higher advance tax paid by frontline companies support their views. Market men will also closely watching what company managements have to say about the outlook for FY 2008
Inflation has been a cause of concern for quite a while now. Inspite of taking several measures to rein in prices, the government has not been able to bring it down. India's wholesale price index rose 6.39% in the 12 months to 24 March, lower than the previous week's increase of 6.46%, as per latest data released on Thursday (5 April) showed.
Crude oil prices steadied near $64 per barrel mark, drawing support from a big drop in U.S. gasoline inventories ahead of peak summer demand in the world's top consumer. Any sharp upmove from this levels, may trigger fresh selling.
A lot will also depend on how the global markets pan out. Over a past few months, local bourses have been tracking global cues in the similar direction. Any sharp correction will lead to a fall here as well.
Chinese central bank said it would raise the amount that lenders must hold in reserve for the sixth time in 10 months time since last June, in an aim to further control liquidity and curb lending. The 0.5% point increase in the reserve requirement ratio would take effect 16 April, the People's Bank of China added. This may dampen sentiment globally.
Raj Television Network, Prism Cements, i-Gate Global Solutions, Mastek, Honeywell Automation India, Ballarpur Industries, Infosys Technologies and CMC will be announcing their March 2007 quarterly results.
Third straight day of gains
The markets advanced for the third straight day, backed by firm buying interest for shares from metal, banking and cement sectors.
The 30-shares BSE Sensex settled 69.31 points or 0.54% higher at 12856.08. It opened slightly higher at 12791.60, but immediately began declining until it touched a low of 12,711.50 in opening session itself. However it kept on advancing from this level, as buying emerged, to hit a high of 12899.31. With today’s gains, the market posted gains for the third straight day.
The S&P CNX Nifty closed with a gain of 18.75 points (0.50%), at 3,752. The Nifty April 2007 futures settled at 3,711, a sharp discount of 41 points over the spot closing.
As per provisional data, FIIs were net sellers to the tune of Rs 85.80 crore today.
The BSE cash turnover amounted to Rs 3173.79 crore. Total market wide turnover was at Rs 35074.25 crore. The NSE cash turnover was at Rs 6939.06 crore while the NSE F&O turnover was at Rs 24961.4 crore.
Market breadth was positive on BSE, with over 1.5 gainers for every loser. 1628 shares advanced as compared to 901 that declined, while 71 remained unchanged. The BSE Mid-Cap Index ended at 5,319.95, up 39.88 points or 0.76% while the BSE Small-Cap Index surged 69.89 points or 1.1% to 6,456.37
Among the Sensex pack, 19 advanced while the rest declined.
Tata Steel was the top gainer, up 5.75 % to Rs 463.40 on high volumes of 24.79 lakh shares. Steel companies have reportedly hiked product prices. Late on Monday (2 April), Tata Steel said it had completed its $11.3 billion acquisition of European steel maker Corus Group PLC, a takeover that makes the Indian company the world's fifth-largest steel producer. Tata Steel’s crude steel production for the year 2006-07, crossed 5 million tonnes. The production of hot metal touched 5.55 million tonnes, crude steel at 5.05 million tonnes and saleable steel at 4.93 million tonnes.
Led by Tata Steel, the BSE Metal Index surged 3.1% to 8,623.65, and was the top gainer among the BSE sectoral indices. JSW Steel (up 4.45%), Hindustan Zinc (up 4.95%) and Jindal Steel & Power (up 3.61%), moved higher.
HDFC (up 2.20% to Rs 1529.90), ICICI Bank (up 2.02% to Rs 837.10) and REL (up 2% to Rs 497.10) were the other gainers.
Index heavyweight RIL was down 0.60% to Rs 1355 on 3.50 lakh shares. It moved in a range of Rs 1368.90 –1353.10
State run oil exploration major Oil and Natural Gas Corporation (ONGC) rose 0.10% to Rs 848 after reports that it has entered into service contracts for development of 14 onshore marginal fields with M/s Hydrocarbon Resources Development, M/s Deep Industries, M/s B G Shirke Construction Technology, M/s KEI - RSOS Maritime and M/s Shiv Vani Oil and Gas Exploration. By this process, ONGC has initiated action to put about 96% reserves of marginal fields on production in the XI plan period.
Simultaneously, ONGC is continuing its efforts to develop the new and marginal fields through in-house efforts, both in offshore and onshore, and large number of fields have been put on production / are in the process of being developed and put on production.
Also it plans to set up a new 15 million tonnes per year refinery on the east coast at a cost of 200 billion rupees ($4.65 billion), its chairman said on Thursday.
Dr Reddy’s was the top loser, down 2.43% to Rs 727.50 on 72,319 shares
Hero Honda declined 1.69% to Rs 633 while Bharti Airtel lost 1.15% to Rs 739
State-run power generation firm NTPC was down 1.52% to Rs 158.50 on 28.90 lakh shares, recorded a net profit of Rs 6,726.4 crore in 2006-07 as against Rs 5,820.2 crore in the previous fiscal, translating into an increase of 15.57%. Net sales during the period under review rose 17.20% to Rs 30,638.7 crore compared to Rs 26,142.9 crore in 2005-06. Gross revenue increased 15.81% to Rs 33,299.7 crore in 2006-07 from Rs 28,753 crore in 2005-06.
The company generated 188.67 Billion Units (BUs) of power during the year, showing an increase of 10.41% over the previous year's generation.
With a share of 20.18% in the total installed capacity of the country, NTPC generated 28.50% electricity during 2006-07. Capital expenditure in 2006-07 on various capital schemes increased to Rs 7,820.5 crore as against Rs 7,018.9 crore in the previous year. The company has earmarked capex plans amounting to Rs 12,792 crore for 2007-08.
Meanwhile, shares from cement sector advanced after declining on Wednesday, as buying resumed at lower levels. The fall came after the government announced cut in import duties. Analysts opine that imports would not be feasible due to high transport costs and lack of infrastructure at the port to handle bulk cement.
Grasim Industries (up 2.10% to Rs 2,106), Gujarat Ambuja Cements (up 1.10% to Rs 106.10), ACC (up 1.06% to Rs 722), and UltraTech Cement Company (up 2.26% to Rs 693) advanced.
Bank shares witnessed a broad-based rally today, with the BSE Bankex gaining 1.9% to 6,371.69. State run Union Bank of India gained 6.3% to Rs 102.70. Oriental Bank of Commerce rose 5% to Rs 186.25. Bank shares rose after the latest data showed slight cooling in inflation.
Shares of offshore and onshore exploration services advanced for the second straight day, on expectations of winning orders from exploration firms. Dolphin Offshore (up 6% to Rs 200), Jindal Drilling (up 2.10% to Rs 500), Deep Industries (up 3.11% to Rs 53.10) and South East Asia Marine Engineering & Construction which rose 5% to Rs 194.45.
IFCI jumped nearly 10% to Rs 34.90 after the term lending institution said late on Wednesday that it had received large part of proceeds of sales of its 7% stake in NSE in January 2007. The scrip jumped on heavy volume of 4.24 crore shares on BSE.
Gujarat Ambuja Exports surged 14.62% to Rs 29.80 after the company today issued a public announcement regarding its proposed buy-back programme. The company said it has set aside Rs 26.25 crore for buy-back of its shares through the open market purchases route. The maximum price at which it will buy-back its own shares is set at Rs 38. The buy-back will begin on 16 April 2007.
Bulk drug manufacturer Lupin advanced 2.11% to Rs 630 after it finalised a patent sale agreement with Servier. As per the agreement, Lupin has received Euro 20 million from Laboratories Servier of France for the sale of certain patent applications and other related Intellectual Property for Perindopril for multiple countries.
Television broadcaster Sun TV rose 2.72% to Rs 1540 after the company’s board today approved a 2-for-1 stock split. As a result, the face value of the scrip will become Rs 5 from Rs 10.
Utility vehicle and tractor maker, Mahindra & Mahindra rose 0.21% to Rs 715 on reports that it is open to more alliances, but will avoid tying up with too many partners. Mahindra, which has forayed into cars with a joint venture with France's Renault , also has an alliance with Renault and Nissan Motor Co for a greenfield project in southern India to make 400,000 vehicles in seven years.
Shoppers Stop plunged 4.45% to Rs 590. The retailer said its joint venture with Germany's Nuance Group AG had won a contract to operate retail business at the upcoming Hyderabad international airport. The joint venture is expected to have revenues of $240 million in seven years.
An important set of data that analysts was unleveled. India's wholesale price index rose 6.39% in the 12 months to 24 March, lower than the previous week's increase of 6.46%, data showed on Thursday. The figure was slightly above a forecast of 6.29% in an analyst poll.
Meanwhile annual inflation for the week ended 27 January was revised to 6.69% from 6.58%. Annual inflation stood at 4.06% in the corresponding week a year ago.
The Nikkei share average slipped 0.30% on Thursday following a two-day rise, with Fast Retailing Co. Ltd. and other recent gainers dropping and lower oil prices weighing on energy stocks such as Nippon Oil Corp. The Nikkei fell 52.67 points to 17,491.42. The benchmark had booked more than 500 points in the last two sessions and saw its highest close since 28 February on Wednesday.
Hong Kong’s Hang Seng index finished 1.03% or 207.01 points higher at 20209.71
Markets will remain closed on Friday (6 April 2007) on account of Good Friday. Low volumes indicate that many market participants are on the sidelines.
The undercurrent remains cautious on concerns that economic growth will slowdown following RBI’s rate hike campaign. With inflation a percentage point above the central bank’s forecast, RBI late last week unexpectedly raised cash reserve ratio along with hike in short term interest rate.
Infosys’ FY 2008, which it will unveil along with Q4 March 2007 results, on 13 April 2007, is the next major trigger for the market. In a recent pre-guidance report on Infosys, Merrill Lynch placed a short-term 'sell' on the Sensex heavyweight, expecting a conservative guidance from the company due to an uncertain US economic outlook, the appreciation of the rupee versus the dollar and other client-specific issues. Merill Lynch expects Infosys to give an EPS growth guidance in the early 20s.
US stocks managed slim gains Wednesday, following the previous session's big rally, as investors eyed lower oil prices and weaker than expected economic reports The Dow Jones industrial average (up 19.75 to 12,530.05) and the broader S&P 500 (up 1.60 to 1,439.37) index both added a few points. The Nasdaq composite added 0.3 percent.
US light crude oil for May delivery fell 26 cents to settle at $64.38 a barrel on the New York Mercantile Exchange on Wednesday after Iran's president pardoned and pledged to release the 15 British sailors and marines being held. Concerns about the standoff between the two nations had driven up the price of oil over the past week. Iran is the No. 4 oil exporter.
Meanwhile, China's central bank said on Thursday that it would raise the amount that lenders must hold in reserve for the sixth time in 10 months time since last June, in an aim to further control liquidity and curb lending. The 0.5% point increase in the reserve requirement ratio would take effect 16 April, the People's Bank of China added.
India's infrastructure sector output grew 7.2% in February from a year earlier, slower than revised 8.2% growth in January, government data showed on Thursday. Output rose an annual 9.1% in February 2006. Infrastructure output in the April-February period rose 8.3% from a year earlier.
The Union trade minister Kamal Nath is scheduled to announce the annual foreign trade policy some time this month. India's export of services is expected to touch $310.9 billion by 2011/12, powered by the booming software, consultancy, engineering and tourism sectors, showed a report. Services exports could even surpass merchandise exports, which are expected to more than double to $305.5 billion in the next five years, said the survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI).
India exported goods worth $112.4 billion during 2005/06 while export of services was $71.6 billion. Services exports are estimated at $91.5 billion this fiscal, and merchandise exports at $132.7 billion.
India's service exports grew at 28% annually for the last five years, faster than the 22% growth in goods exports during the same period.
"With the current rate of growth in services to continue in the medium term, India's exports of services will be close to $311 billion by 2012, overtaking the expected level of merchandise exports of $305.5 billion by that year," said the FICCI survey.
During the first nine months of 2006/07, a buoyant service exports helped India cut current account deficit to $3 billion from $4.8 billion during April-Dec. 2005, the survey said citing government figures.
Software services was the highest foreign exchange earner at $21.8 billion during April-December 2006, followed by business and management consultancy at $16.5 billion and travel services at $6.4 billion, it said.
ASK RJ - Tech Mahindra
We have given TechM a target PE multiple of 21x (5% premium to Satyam and 11% to HCL Tech) mainly on account of better revenue visibility, superior
management quality and higher return ratios. On FY09E fully diluted earnings of Rs86.4, the target price works out to Rs1,815 implying an upside of 27% from the current levels. We initiate coverage on TechM with a Buy recommendation.
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IFSL - Autoline Industries Visit Note
Autoline Industries Ltd. (AIL), a Pune-based fast growing supplier of sheet
metal components and assemblies has been growing at CAGR 65% over the last
four years. We expect the company to grow at a CAGR of 55% in the next two
years, on the back of strong order book and export potential. Presently,
the stock quotes at a PER of 11.7x FYo8E. We believe that at the current
price, the stock is fairly valued.
Though the company has shown robust growth and the management is confident
of growing at the same pace going forward, we are slightly cautious on
growth prospects on back of rising interest rates & softening of demand in
the overall auto sector compared to what was seen in FY07. At CMP of Rs210
the stock is fairly valued as it is trading at 11.7x FY08E earning. At
present we do not have a rating on this stock.
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Market may remain volatile
Market may open on a weak note as Asian indices are trading in the mix in morning trades followed by overnight gains in the US markets may keep the market volatile. Pressure on the liquidity front due to institutional investors are net sellers of equity could make the investors jittery. On the upside, the Nifty could test the recent high around the 3750 level and may witness support around the 3600 level. The Sensex has a likely support at 12500 and may test higher levels of 12800.
US indices edged up on Wednesday as Iran's plans to release captured British troops which led to a decline in oil prices, with the Dow Jones adding 20 points to close at 12530 while the Nasdaq gaining by 8 points at 22459.
Losers outpaced the gainers among the Indian stocks trading on the US bourses. Among the major losers Wipro, Dr Reddy's, Tata Motors, HDFC Bank, MTNL and VSNL fell around 1% each, while Infosys, ICICI Bank, Rediff and Patni Computers were marginally up.
Crude oil prices in the global market declined yesterday. The Nymex light crude oil for May series slipped by 26 cents at $64.38 per barrel. In the commodity segment, the Comex gold for June delivery rose by $7.70 to settle at $677.40 an ounce.
Anand Rathi - Daily Fundamental Snippets
Wipro Technologies, a subsidiary of Wipro Limited, has merged its telecom service provider and product engineering services divisions. The new entity, to be known as Telecom & Product Engineering Solution (TPE), will contribute $1 billion to Wipro's $3.2 billion top line.
Hexaware Technologies is planning to acquire an IT company in the US or Europe for $20-40 million (around Rs 85-170 crore). They intend to penetrate the European markets quickly and are are looking for a suitable fit in the enterprise resource planning (ERP) space for verticals such as banking and financial services or transportation domains.
Steel Authority of India (SAIL) has approved a major modernisation and expansion programme for its Bhilai Steel Plant (BSP).
Cagiva has reached an agreement with Kinetic Engineering where the latter is likely to start manufacturing single-cylinder Cagiva models developed in Italy.
Mahindra-Renault, a 51:49 joint venture between Mahindra & Mahindra (M&M) and French carmaker Renault, commissioned its Logan manufacturing plant, adjacent to its state-of-the-art facility in Nashik.
Shakti Pumps (India) Ltd is planning to set up a four-lakh submersible pumps and motors manufacturing facility near its existing plant at Pithampur.
Bharat Heavy Electricals Limited (BHEL), Trichy, garnered a record turnover of Rs 4,575 crore during the year ended on March 31, 2007, registering 30 per cent growth over the last year.
Chhattisgarh Mineral Development Corporation (CMDC) and National Mineral Development Corporation (NMDC)-will form a joint venture company (JVC) for supplying raw material to the local steel industries in the state.
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