Tami Nadu Newsprint & Papers rose 3.80% to Rs 65.50 at 11:22 IST on BSE, as net profit rose 21.1% to Rs 40.27 crore in Q2 September 2008 over Q2 September 2007.
The stock hit a high of Rs 68.25 and a low of Rs 62 so far during the day. The stock has a 52-week high of Rs 147 on 8 January 2008 and a 52-week low of Rs 55.05 on 27 October 2008.
The stock gained 3.53% to Rs 63.10 on 28 October 2008, ahead of the results.
The company’s current equity is Rs 69.21 crore. Face value per share is Rs 10.
The current price of Rs 65.50 discounts the company’s Q2 September 2008 annualized EPS of Rs 23.27, by a PE multiple of 2.81.
Tami Nadu Newsprint & Papers (TNPL)’s net sales rose 20.8% to Rs 288.82 crore in Q2 September 2008 over Q2 September 2007.
The company's principal activity is to produce paper.
Wednesday, October 29, 2008
Gokaldas Exports spurts
Readymade garments maker Gokaldas Exports surged 19.51% to Rs 117 at 10:37 IST on BSE on reports of Anand Jain, a close confidante of Reliance Industries, picking up close to 10% stake in the firm.
The stock hit a high of Rs 117 and a low of Rs 100 so far during the day. The stock had a 52-week high of Rs 299 on 23 January 2008 and a 52-week low of Rs 90 on 13 October 2008.
The company’s current equity is Rs 17.19 crore. Face value per share is Rs 5.
The current price of Rs 117 discounts its Q1 March 2008 annualized EPS of Rs 12.86, by a PE multiple of 9.09.
The acquisition coincides with Reliance Industries (RIL)’s attempt to revive ‘Only Vimal’ and other textile brands. Anand Jain is chairman of Jai Corp
Gokaldas Exports is engaged in designing, manufacturing and selling range of garments for men, women and children and caters to the needs of several international fashion brands and retailers. The company’s products include coats, suits, jackets, parkas, windcheaters, ski wear; warm-ups, surf wear, swim wear; trousers, shorts; casual wear shirts, ladies blouses and dresses for customers in international market.
In 2007, the US-based private equity firm Blackstone had acquired a 50% stake in Gokaldas from its promoters – the Hindujas. The deal was pegged at Rs 275 a share. It was followed by the mandatory open offer to shareholders which increased Blackstone’s stake to 68.27%. Consequently, the Hinduja family’s shareholding came down to 20%.
Gokaldas Exports had reported 4.90% rise in net profit to Rs 11.05 crore on 11.2% growth in net sales to Rs 291.24 crore in Q1 March 2008 over Q1 March 2007.
The stock hit a high of Rs 117 and a low of Rs 100 so far during the day. The stock had a 52-week high of Rs 299 on 23 January 2008 and a 52-week low of Rs 90 on 13 October 2008.
The company’s current equity is Rs 17.19 crore. Face value per share is Rs 5.
The current price of Rs 117 discounts its Q1 March 2008 annualized EPS of Rs 12.86, by a PE multiple of 9.09.
The acquisition coincides with Reliance Industries (RIL)’s attempt to revive ‘Only Vimal’ and other textile brands. Anand Jain is chairman of Jai Corp
Gokaldas Exports is engaged in designing, manufacturing and selling range of garments for men, women and children and caters to the needs of several international fashion brands and retailers. The company’s products include coats, suits, jackets, parkas, windcheaters, ski wear; warm-ups, surf wear, swim wear; trousers, shorts; casual wear shirts, ladies blouses and dresses for customers in international market.
In 2007, the US-based private equity firm Blackstone had acquired a 50% stake in Gokaldas from its promoters – the Hindujas. The deal was pegged at Rs 275 a share. It was followed by the mandatory open offer to shareholders which increased Blackstone’s stake to 68.27%. Consequently, the Hinduja family’s shareholding came down to 20%.
Gokaldas Exports had reported 4.90% rise in net profit to Rs 11.05 crore on 11.2% growth in net sales to Rs 291.24 crore in Q1 March 2008 over Q1 March 2007.
Monday, October 27, 2008
Eight Sensex stocks stoop to their lows
Eight stocks from the BSE 30-share Sensex hit their all-time low today(27th Oct-08) as investors dumped equities on growing concerns of a deep and prolonged global economic slump.
The BSE Sensex lost 191.51 points, or 2.20%, to 8,509.56 after slumping 1,003.68 points to 7,697.39 in afternoon trade, its lowest since 28 October 2005.
Ranbaxy Laboratories (down 4.90% to Rs 179.70), Hindalco Industries (down 6% to Rs 40.75), Wipro (down 5.17% to Rs 223), Jaiprakash Associates (down 8.06% to Rs 54.75), Tata Power Company (down 10.56% to Rs 558.90), and DLF (down 3.63% to Rs 196.50) settled lower.
TCS (up 2.03% to Rs 500.15) and Reliance Communcations (up 6.33% to Rs 205.65) ended higher.
Earlier in intra-day, Ranbaxy Laboratories (Rs 148.60), Hindalco Industries (Rs 38.05), Wipro (Rs 181.70), TCS (Rs 418), Jaiprakash Associates (Rs 47.05), Reliance Communcations (Rs 148.60), Tata Power Company (Rs 531.50), and DLF (Rs 158) registered their all time low.
The BSE Sensex lost 191.51 points, or 2.20%, to 8,509.56 after slumping 1,003.68 points to 7,697.39 in afternoon trade, its lowest since 28 October 2005.
Ranbaxy Laboratories (down 4.90% to Rs 179.70), Hindalco Industries (down 6% to Rs 40.75), Wipro (down 5.17% to Rs 223), Jaiprakash Associates (down 8.06% to Rs 54.75), Tata Power Company (down 10.56% to Rs 558.90), and DLF (down 3.63% to Rs 196.50) settled lower.
TCS (up 2.03% to Rs 500.15) and Reliance Communcations (up 6.33% to Rs 205.65) ended higher.
Earlier in intra-day, Ranbaxy Laboratories (Rs 148.60), Hindalco Industries (Rs 38.05), Wipro (Rs 181.70), TCS (Rs 418), Jaiprakash Associates (Rs 47.05), Reliance Communcations (Rs 148.60), Tata Power Company (Rs 531.50), and DLF (Rs 158) registered their all time low.
Unitech is a rage as it rages against brokers
Unitech surged 37.71% to Rs 41.45 at 10:37 IST on the BSE on filing complaint with the market regulator against some brokers for hammering its shares 51% on 24 October 2008.
The stock had hit a high of Rs 43.70 and a low of Rs 27.20 so far during the day. Its 52-week high of Rs 546.80 was on 2 January 2008 and 52-week low of Rs 26.60 on 24 October 2008.
India’s second largest real estate developer by market capitalisation has an equity capital of Rs 324.68 crore. Face value per share is Rs 2.
The current price of Rs 41.45 discounts its Q1 June 2008 annualised EPS of Rs 7.42, by a PE multiple of 5.58.
Reports quoted Unitech MD Sanjay Chandra as saying that there were certain brokers who have been targeting Unitech and spreading malicious rumours for short-term gains. The company is in the process of filing complaint with Securities & Exchange Board of India (Sebi).
Unitech share price halved on Friday last week following reports that the firm had defaulted Rs 150 crore of payments to Greater Noida Development Authority for a 100 acres of land deal struck in 2006.
Unitech, however, clarified to the stock exchanges during market hours on 24 October 2008, that payment for land in Greater Noida was to be made over five years. The company had made all the initial payments well in time. However, due to issues related to land acquisition by the concerned authority that resulted in agitation by the local farmers, the company could not progress with the construction.
There has been a delay of about 15 months in giving of peaceful possession of land by the authorities. In order not to penalize the developer for reasons not attributable to the developer, the Greater Noida Authority had revised the payment schedule. Unitech was currently not in default and was never in default with regard to payments to the authority, the company further added in the statement.
Unitech’s net profit rose 13.4% to Rs 301.31 crore on a 3.1% fall in sales to Rs 739.82 crore in Q1 June 2008 over Q1 June 2007. The company will declare the Q2 September 2008 results on 31 October 2008.
Unitech develops residential areas, commercial spaces, amusement parks, infrastructure development, thermal power plants, transmission lines, highways, flyovers, industrial facilities, steel plants, and overseas turnkey projects. The company, which diversified in telecom sector has initial spectrum in 13 service areas out of the total 22 service areas.
The stock had hit a high of Rs 43.70 and a low of Rs 27.20 so far during the day. Its 52-week high of Rs 546.80 was on 2 January 2008 and 52-week low of Rs 26.60 on 24 October 2008.
India’s second largest real estate developer by market capitalisation has an equity capital of Rs 324.68 crore. Face value per share is Rs 2.
The current price of Rs 41.45 discounts its Q1 June 2008 annualised EPS of Rs 7.42, by a PE multiple of 5.58.
Reports quoted Unitech MD Sanjay Chandra as saying that there were certain brokers who have been targeting Unitech and spreading malicious rumours for short-term gains. The company is in the process of filing complaint with Securities & Exchange Board of India (Sebi).
Unitech share price halved on Friday last week following reports that the firm had defaulted Rs 150 crore of payments to Greater Noida Development Authority for a 100 acres of land deal struck in 2006.
Unitech, however, clarified to the stock exchanges during market hours on 24 October 2008, that payment for land in Greater Noida was to be made over five years. The company had made all the initial payments well in time. However, due to issues related to land acquisition by the concerned authority that resulted in agitation by the local farmers, the company could not progress with the construction.
There has been a delay of about 15 months in giving of peaceful possession of land by the authorities. In order not to penalize the developer for reasons not attributable to the developer, the Greater Noida Authority had revised the payment schedule. Unitech was currently not in default and was never in default with regard to payments to the authority, the company further added in the statement.
Unitech’s net profit rose 13.4% to Rs 301.31 crore on a 3.1% fall in sales to Rs 739.82 crore in Q1 June 2008 over Q1 June 2007. The company will declare the Q2 September 2008 results on 31 October 2008.
Unitech develops residential areas, commercial spaces, amusement parks, infrastructure development, thermal power plants, transmission lines, highways, flyovers, industrial facilities, steel plants, and overseas turnkey projects. The company, which diversified in telecom sector has initial spectrum in 13 service areas out of the total 22 service areas.
Saturday, October 25, 2008
Greaves Cotton survives market fall on new order win
Greaves Cotton gained 1.76% to Rs 101.40 at 12:37 IST on BSE, as the company singed a pact with Tata Motors for supply of light diesel engines.
The stock hit a high of Rs 102.45 and a low of Rs 99.50 so far during the day. The stock has a 52-week high of Rs 466 on 2 January 2008 and a 52-week low of Rs 95 on 20 October 2008.
The company’s current equity is Rs crore. Face value per share is Rs 10.
The current price of Rs 101.40 discounts the company’s Q4 June 2008 annualized EPS of Rs 21.66, by a PE multiple of 4.68.
Greaves Cotton will declare its Q1 September 2008 results today, 24 October 2008. The company’s net profit fell 22.3% to Rs 26.45 crore on 13.5% increase in net sales to Rs 321.34 crore in Q4 June 2008 over Q4 June 2007.
The company manufactures and distributes diesel engines, power generation equipment and power transmission systems. It also manufactures oil field, construction and materials handling equipment and infrastructure equipments used in construction of roads, bridges, dams, mining and related accessories and spare parts.
The stock hit a high of Rs 102.45 and a low of Rs 99.50 so far during the day. The stock has a 52-week high of Rs 466 on 2 January 2008 and a 52-week low of Rs 95 on 20 October 2008.
The company’s current equity is Rs crore. Face value per share is Rs 10.
The current price of Rs 101.40 discounts the company’s Q4 June 2008 annualized EPS of Rs 21.66, by a PE multiple of 4.68.
Greaves Cotton will declare its Q1 September 2008 results today, 24 October 2008. The company’s net profit fell 22.3% to Rs 26.45 crore on 13.5% increase in net sales to Rs 321.34 crore in Q4 June 2008 over Q4 June 2007.
The company manufactures and distributes diesel engines, power generation equipment and power transmission systems. It also manufactures oil field, construction and materials handling equipment and infrastructure equipments used in construction of roads, bridges, dams, mining and related accessories and spare parts.
HCC Strong Q2 result
Hindustan Construction Company declined 5.57% to Rs 39 at 12:23 IST on BSE, as the company provided Rs 26.03 crore as provision for forex losses in Q2 September 2008.
The stock hit a high of Rs 41.95 so far during the day. The stock hit a low of Rs 38.10 so far during the day, which is a 52-week low for the counter. The stock has a 52-week high of Rs 278.90 on 2 January 2008.
The stock declined 4.73 to Rs 41.30 on 23 October 2008, ahead of the results.
The company’s current equity is Rs 25.62 crore. Face value per share is Rs 1.
The current price of Rs 39 discounts the company’s Q1 June 2008 annualized EPS of Rs 4.81, by a PE multiple of 8.12.
Despite the large forex loss, Hindustan Construction Company (HCC)’s net profit surged 71.40% to Rs 19.94 crore on 20.86% increase in total income to Rs 675.98 crore in Q2 September 2008 over Q2 September 2007.
The company had order backlog of Rs 12,800 crore as on 30 September 2008.
On 17 October 2008, the company won two orders worth Rs 3338 crore from the Andhra Pradesh government in consortium with other firms.
On 15 October 2008, HCC announced that Bank of India has invested Rs 150 crore in its subsidiary Lavasa Corporation, in the form of convertible debentures.
The company is engaged in constructing industrial and commercial building. HCC specializes in large-scale civil constructions. It has been continuously developing new age construction technologies.
The stock hit a high of Rs 41.95 so far during the day. The stock hit a low of Rs 38.10 so far during the day, which is a 52-week low for the counter. The stock has a 52-week high of Rs 278.90 on 2 January 2008.
The stock declined 4.73 to Rs 41.30 on 23 October 2008, ahead of the results.
The company’s current equity is Rs 25.62 crore. Face value per share is Rs 1.
The current price of Rs 39 discounts the company’s Q1 June 2008 annualized EPS of Rs 4.81, by a PE multiple of 8.12.
Despite the large forex loss, Hindustan Construction Company (HCC)’s net profit surged 71.40% to Rs 19.94 crore on 20.86% increase in total income to Rs 675.98 crore in Q2 September 2008 over Q2 September 2007.
The company had order backlog of Rs 12,800 crore as on 30 September 2008.
On 17 October 2008, the company won two orders worth Rs 3338 crore from the Andhra Pradesh government in consortium with other firms.
On 15 October 2008, HCC announced that Bank of India has invested Rs 150 crore in its subsidiary Lavasa Corporation, in the form of convertible debentures.
The company is engaged in constructing industrial and commercial building. HCC specializes in large-scale civil constructions. It has been continuously developing new age construction technologies.
GAIL India at 52-week low
GAIL India tumbled 13.20% to Rs 195 at 10:40 IST on BSE, even as net profit surged 78.76% to Rs 1023.45 crore in Q2 September 2008 over Q2 September 2007.
The stock hit a high of Rs 224 so far during the day. The stock hit a low of Rs 191.25 so far during the day, which is a 52-week low for the counter. The stock has a 52-week high of Rs 370 on 1 January 2008.
The stock gained 0.47% to Rs 224.65 on 23 October 2008, ahead of the results.
The company’s current equity is Rs 1268.48 crore. Face value per share is Rs 10.
The current price of Rs 195 discounts the company’s Q2 September 2008 annualized EPS of Rs 48.41, by a PE multiple of 4.03.
GAIL India’s net sales 36.3% to Rs 6172.61 crore in Q2 September 2008 over Q2 September 2007.
In September 2008, GAIL India’s board approved a 1:2 bonus issue.
The company distributes natural gas and processes petrochemicals.
The stock hit a high of Rs 224 so far during the day. The stock hit a low of Rs 191.25 so far during the day, which is a 52-week low for the counter. The stock has a 52-week high of Rs 370 on 1 January 2008.
The stock gained 0.47% to Rs 224.65 on 23 October 2008, ahead of the results.
The company’s current equity is Rs 1268.48 crore. Face value per share is Rs 10.
The current price of Rs 195 discounts the company’s Q2 September 2008 annualized EPS of Rs 48.41, by a PE multiple of 4.03.
GAIL India’s net sales 36.3% to Rs 6172.61 crore in Q2 September 2008 over Q2 September 2007.
In September 2008, GAIL India’s board approved a 1:2 bonus issue.
The company distributes natural gas and processes petrochemicals.
Market suffers worst fall; Sensex loses 1070 points
24 Oct, 2008, 1903 hrs IST,Mohammed Sabir, ECONOMICTIMES
MUMBAI: Investors will remember October 24, 2008 as the blackest Friday the Indian stock market has seen and would want to put it behind them soo
n as possible.
In one of the worst trading sessions, investors helplessly saw their investments
being wiped out. Those who were praying for a pull-back were left in the lurch as determined bears tore the market apart.
The gains of the four-year bull-run were lost in just eight months. The biggest damage being suffered in last one month, with the indices losing over 36 per cent
For traders, it was a nightmare as red blips flashed on their terminals. The bear onslaught saw their stop-losses getting triggered. The party on the Dalal Street is over, but few would have expected such a savage end where share prices of blue-eyed large cap companies were reduced to that of smallcaps. Reliance Industries and ONGC were down 16.44 per cent and 15.01 per cent respectively.
Indian equities were the worst performers. Bombay Stock Exchange’s Sensex plunged 11 per cent or 1070.63 points to close at 8,701.07. The index touched a low of 8566.82.
National Stock Exchange’s Nifty ended at 2584, down 12.20 per cent or 359.15 points. The broader index touched a low of 2525.05.
DLF (-23.96%), Ranbaxy Laboratories (-17.83%), Hindalco Industries (-17.82%), Tata Motors (-16.54%), Reliance Industries (-16.44%) and Mahindra & Mahindra (-16.04%) were the worst hit.
BSE Midcap closed 8.38 per cent lower and BSE Smallcap Index ended 7.66 per cent down. The BSE Realty Index slumped 24.39 per cent and BSE Oil & Gas Index lost 14.97 per cent.
Market breadth on BSE collapsed with 1835 declines against 247 advances.
“Markets have fallen too much and moving up will take some time. It can’t be said as of now whether the correction is over. Though we are in an oversold zone, news from the US markets and liquidity flows will govern the market,” said Dipen Shah, vice-president, private client group of Kotak Securities.
However, this doesn’t seem to be the end of catastrophic fall on the Indian bourses. US stock futures hit lower circuit Friday an hour and half before the market opens. The Dow Jones Industrial Average futures slipped 550 points, or 6.27 percent and Standard & Poor's 500 futures shed 60 points or 6.56 per cent.
Earlier in the day, Japan’s Nikkei 225 ended -9.60 per cent lower, Kospi fell 10.57 per cent and Hang Seng declined 8.30 per cent.
European markets also witnessed sharp correction. FTSE 100 was down 8.96 per cent, CAC 40 was down 8.90 per cent and DAX plunged 9.58 per cent.
Shah’s advice to investors is to not panic and sell out everything. “There are still fundamentally sound stocks available at attractive levels. Good quality stocks in largecaps should not be sold and must be accumulated with medium to long term view.”
Markets opened with a sharp cut but caved in after the Reserve Bank of India announced its half-yearly economic policy review, wherein it left policy rates and reserve ratios unchanged.
The central bank also revised lower GDP growth target to 7.5-8.0 per cent from 8.0 per cent earlier but maintained the inflation target at 7 per cent for FY09.
The revision in GDP growth forecasts led to panic among investors, already shaken by the relentless sell-off by foreign funds. There were market reports that long only funds and domestic institutions were too on sell-side.
Deven Choksey, MD, K R Choksey, said, “The arbitrage funds became really active today. They were involved in some reverse arbitrage selling in c
ash and buying in the derivatives markets. Secondly, shorting by the FIIs is still rampant and even SEBI's involvement had been in vain. A lot of damage has happened to the markets and it is too late even for the regulators to take some action. Also, RBI lowered the economic growth targets adding fuel to the fire.”
In today’s trade, foreign funds provisionally sold equities worth Rs 1,431 crore while domestic institution bought equities worth Rs 514 crore.
Finance Minister P Chidambaram tried to intervene and calm frayed nerves but that helped little and markets plunged even further.
On the RBI’s policy review meet, Chidambaram said the decision to keep rates steady was on expected lines. He added that the central bank
would infuse liquidity and if required, would adopt conventional and unconventional tools.
via:E.T
MUMBAI: Investors will remember October 24, 2008 as the blackest Friday the Indian stock market has seen and would want to put it behind them soo
n as possible.
In one of the worst trading sessions, investors helplessly saw their investments
being wiped out. Those who were praying for a pull-back were left in the lurch as determined bears tore the market apart.
The gains of the four-year bull-run were lost in just eight months. The biggest damage being suffered in last one month, with the indices losing over 36 per cent
For traders, it was a nightmare as red blips flashed on their terminals. The bear onslaught saw their stop-losses getting triggered. The party on the Dalal Street is over, but few would have expected such a savage end where share prices of blue-eyed large cap companies were reduced to that of smallcaps. Reliance Industries and ONGC were down 16.44 per cent and 15.01 per cent respectively.
Indian equities were the worst performers. Bombay Stock Exchange’s Sensex plunged 11 per cent or 1070.63 points to close at 8,701.07. The index touched a low of 8566.82.
National Stock Exchange’s Nifty ended at 2584, down 12.20 per cent or 359.15 points. The broader index touched a low of 2525.05.
DLF (-23.96%), Ranbaxy Laboratories (-17.83%), Hindalco Industries (-17.82%), Tata Motors (-16.54%), Reliance Industries (-16.44%) and Mahindra & Mahindra (-16.04%) were the worst hit.
BSE Midcap closed 8.38 per cent lower and BSE Smallcap Index ended 7.66 per cent down. The BSE Realty Index slumped 24.39 per cent and BSE Oil & Gas Index lost 14.97 per cent.
Market breadth on BSE collapsed with 1835 declines against 247 advances.
“Markets have fallen too much and moving up will take some time. It can’t be said as of now whether the correction is over. Though we are in an oversold zone, news from the US markets and liquidity flows will govern the market,” said Dipen Shah, vice-president, private client group of Kotak Securities.
However, this doesn’t seem to be the end of catastrophic fall on the Indian bourses. US stock futures hit lower circuit Friday an hour and half before the market opens. The Dow Jones Industrial Average futures slipped 550 points, or 6.27 percent and Standard & Poor's 500 futures shed 60 points or 6.56 per cent.
Earlier in the day, Japan’s Nikkei 225 ended -9.60 per cent lower, Kospi fell 10.57 per cent and Hang Seng declined 8.30 per cent.
European markets also witnessed sharp correction. FTSE 100 was down 8.96 per cent, CAC 40 was down 8.90 per cent and DAX plunged 9.58 per cent.
Shah’s advice to investors is to not panic and sell out everything. “There are still fundamentally sound stocks available at attractive levels. Good quality stocks in largecaps should not be sold and must be accumulated with medium to long term view.”
Markets opened with a sharp cut but caved in after the Reserve Bank of India announced its half-yearly economic policy review, wherein it left policy rates and reserve ratios unchanged.
The central bank also revised lower GDP growth target to 7.5-8.0 per cent from 8.0 per cent earlier but maintained the inflation target at 7 per cent for FY09.
The revision in GDP growth forecasts led to panic among investors, already shaken by the relentless sell-off by foreign funds. There were market reports that long only funds and domestic institutions were too on sell-side.
Deven Choksey, MD, K R Choksey, said, “The arbitrage funds became really active today. They were involved in some reverse arbitrage selling in c
ash and buying in the derivatives markets. Secondly, shorting by the FIIs is still rampant and even SEBI's involvement had been in vain. A lot of damage has happened to the markets and it is too late even for the regulators to take some action. Also, RBI lowered the economic growth targets adding fuel to the fire.”
In today’s trade, foreign funds provisionally sold equities worth Rs 1,431 crore while domestic institution bought equities worth Rs 514 crore.
Finance Minister P Chidambaram tried to intervene and calm frayed nerves but that helped little and markets plunged even further.
On the RBI’s policy review meet, Chidambaram said the decision to keep rates steady was on expected lines. He added that the central bank
would infuse liquidity and if required, would adopt conventional and unconventional tools.
via:E.T
Thursday, October 23, 2008
Gold dips below $700 as investors sell to pay stock losses
23 Oct, 2008, 2054 hrs IST, PTI
NEW YORK: Gold on Thursday dipped below $700 an ounce for the first time in over a year as rising dollar and stock markets meltdown forced invest
ors to sell the precious metal to pay losses.
The dollar-denominated gold tumbled by over 37 dollar, or 4.2 per cent at Rs 697.40 dollar an ounce, the lowest since September 6, 2007. The metal traded around 772 dollar some two days ago.
Silver fell 7 cents, or 0.7 per cent, to 9.39 dollar an ounce. Two days ago, its price hovered around 10.87 dollar an ounce.
The euro fell to the lowest level since December 2002 against the Yen and dropped to the weakest in almost two years versus the dollar on speculation that the European Central Bank will cut interest rates.
The 15-nation currency dropped for seventh day against the greenback, its longest stretch since September 8, after ECB Executive Board member Jose Manuel Gonzalez-Paramo signalled lower borrowing costs.
The dollar has risen 4 per cent this week against the basket of currencies.
Asian stocks tumbled on Thursday as concerns about the worsening global economy played on investors, despite continued efforts by governments to ease the financial crisis.
Till yesterday gold slid 12 per cent as dollar gained 11 per cent against a weighted basket of six major currencies, while the Dow Jones Industrial lost 36 per cent.
via:E.T
NEW YORK: Gold on Thursday dipped below $700 an ounce for the first time in over a year as rising dollar and stock markets meltdown forced invest
ors to sell the precious metal to pay losses.
The dollar-denominated gold tumbled by over 37 dollar, or 4.2 per cent at Rs 697.40 dollar an ounce, the lowest since September 6, 2007. The metal traded around 772 dollar some two days ago.
Silver fell 7 cents, or 0.7 per cent, to 9.39 dollar an ounce. Two days ago, its price hovered around 10.87 dollar an ounce.
The euro fell to the lowest level since December 2002 against the Yen and dropped to the weakest in almost two years versus the dollar on speculation that the European Central Bank will cut interest rates.
The 15-nation currency dropped for seventh day against the greenback, its longest stretch since September 8, after ECB Executive Board member Jose Manuel Gonzalez-Paramo signalled lower borrowing costs.
The dollar has risen 4 per cent this week against the basket of currencies.
Asian stocks tumbled on Thursday as concerns about the worsening global economy played on investors, despite continued efforts by governments to ease the financial crisis.
Till yesterday gold slid 12 per cent as dollar gained 11 per cent against a weighted basket of six major currencies, while the Dow Jones Industrial lost 36 per cent.
via:E.T
RIL Q2 net up 7% at Rs 4122 crore
23 Oct, 2008, 1650 hrs IST, Economictimes.com and Agencies
MUMBAI: Reliance Industries posted 7.42 per cent rise in net profit of Rs 4122 crore for the quarter ended September 30, 2008 as compared to Rs 3837 crore in the same quarter previous year.
Total income increased to Rs 44,938 crore in the September quarter from Rs 32,211 crore a year ago.
Analysts had forecast a net profit of Rs 3920 crore. Net revenue at the company, India's most valuable with a market value of $45 billion, grew to Rs 4479 crore from Rs 3204 crore.
Reliance's refining margins for the quarter were $13.4 a barrel television news channels reported, well above the benchmark Asian Dubai crack margin, which averaged about $5.8 a barrel in the period.
On Thursday, Shares of Reliance Industries slumped 7.62 per cent to close at Rs 1215.25 in a weak market.
MUMBAI: Reliance Industries posted 7.42 per cent rise in net profit of Rs 4122 crore for the quarter ended September 30, 2008 as compared to Rs 3837 crore in the same quarter previous year.
Total income increased to Rs 44,938 crore in the September quarter from Rs 32,211 crore a year ago.
Analysts had forecast a net profit of Rs 3920 crore. Net revenue at the company, India's most valuable with a market value of $45 billion, grew to Rs 4479 crore from Rs 3204 crore.
Reliance's refining margins for the quarter were $13.4 a barrel television news channels reported, well above the benchmark Asian Dubai crack margin, which averaged about $5.8 a barrel in the period.
On Thursday, Shares of Reliance Industries slumped 7.62 per cent to close at Rs 1215.25 in a weak market.
Ajanta Pharma Robust Q2 result
Ajanta Pharma rose 0.54% to Rs 55.35 at 13:00 IST on BSE, as net profit surged 53.74% to Rs 4.32 crore in Q2 September 2008 over Q2 September 2007.
The stock hit a high of Rs 57 and a low of Rs 53 so far during the day. The stock has a 52-week high of Rs 125.50 on 8 January 2008 and a 52-week low of Rs 51.50 on 22 October 2008.
The stock had declined sharply ahead of the results, plunging 9.16% to Rs 55.05 on 22 October 2008, from a recent high of Rs 60.60 on 15 October 2008.
The company’s current equity is Rs 11.86 crore. Face value per share is Rs 10.
The current price of Rs 55.35 discounts the company’s Q1 June 2008 annualized EPS of Rs 10.68, by a PE multiple of 5.18.
Ajanta Pharma’s net sales rose 23.16% to Rs 88.38 crore in Q2 September 2008 over Q2 September 2007.
Ajanta Pharma is well established in therapeutic segments like dermatology, cardiology, and ophthalmology.
The stock hit a high of Rs 57 and a low of Rs 53 so far during the day. The stock has a 52-week high of Rs 125.50 on 8 January 2008 and a 52-week low of Rs 51.50 on 22 October 2008.
The stock had declined sharply ahead of the results, plunging 9.16% to Rs 55.05 on 22 October 2008, from a recent high of Rs 60.60 on 15 October 2008.
The company’s current equity is Rs 11.86 crore. Face value per share is Rs 10.
The current price of Rs 55.35 discounts the company’s Q1 June 2008 annualized EPS of Rs 10.68, by a PE multiple of 5.18.
Ajanta Pharma’s net sales rose 23.16% to Rs 88.38 crore in Q2 September 2008 over Q2 September 2007.
Ajanta Pharma is well established in therapeutic segments like dermatology, cardiology, and ophthalmology.
Zen Technologies gains on buyback plan
Zen Technologies cut its initial losses on proposal to consider buyback of own shares.
The stock was up 1.61% to Rs 91.50 at 12:12 IST on BSE, having recovered from the sessions’ low of Rs 85.70.
The stock hit a high of Rs 98.45 and a low of Rs 85.70 so far during the day. The stock has a 52-week high of Rs 197.70 on 21 August 2008 and a 52-week low of Rs 59 on 23 October 2007.
The company’s current equity is Rs 8.55 crore. Face value per share is Rs 10.
The board of directors of Zen Technologies will meet on 30 October 2008 to consider buyback. The company made this announcement during trading hours today, 23 October 2008.
Zen Technologies reported a net loss of Rs 0.31 crore in Q1 June 2008 as compared to net profit of Rs 9.71 crore in Q4 March 2008. Net sales declined 85.08% to Rs 2.91 crore in Q1 June 2008 over Q4 March 2008.
The company is engaged in designing, developing and manufacturing of training simulators for the security forces. It also designs, develops and manufactures driving simulators of two types: driving simulators and driving training simulator.
The stock was up 1.61% to Rs 91.50 at 12:12 IST on BSE, having recovered from the sessions’ low of Rs 85.70.
The stock hit a high of Rs 98.45 and a low of Rs 85.70 so far during the day. The stock has a 52-week high of Rs 197.70 on 21 August 2008 and a 52-week low of Rs 59 on 23 October 2007.
The company’s current equity is Rs 8.55 crore. Face value per share is Rs 10.
The board of directors of Zen Technologies will meet on 30 October 2008 to consider buyback. The company made this announcement during trading hours today, 23 October 2008.
Zen Technologies reported a net loss of Rs 0.31 crore in Q1 June 2008 as compared to net profit of Rs 9.71 crore in Q4 March 2008. Net sales declined 85.08% to Rs 2.91 crore in Q1 June 2008 over Q4 March 2008.
The company is engaged in designing, developing and manufacturing of training simulators for the security forces. It also designs, develops and manufactures driving simulators of two types: driving simulators and driving training simulator.
Sesa Goa tumbles
Sesa Goa tumbled 7.73% to Rs 75.80 at 11:51 IST on BSE, as weak global spot iron ore prices offset strong Q2 results.
The stock hit a high of Rs 81 and a low of Rs 74.80 so far during the day. The stock has a 52-week high of Rs 219.50 on 5 May 2008 and a 52-week low of Rs 73.05 on 16 October 2008.
The stock declined 3.47% to Rs 82.15 on 22 October 207, from a recent high of Rs 85.10 on 21 October 2008, ahead of the results. The stock surged 5.85% to Rs 85.10 on 21 October 2008.
The company’s current equity is Rs 78.72 crore. Face value per share is Rs 1.
Sesa Goa’s net profit surged 272.63% to Rs 306.08 crore on 151.07% increase in total income to Rs 876.76 crore in Q2 September 2008 over Q2 September 2007. The company announced the results after trading hours on Wednesday, 22 October 2008.
Sesa Goa, an iron ore mining company of the Vedanta group, has been involved in iron ore mining, beneficiation and exports besides. It is also into the manufacture of pig iron and metallurgical coke.
The stock hit a high of Rs 81 and a low of Rs 74.80 so far during the day. The stock has a 52-week high of Rs 219.50 on 5 May 2008 and a 52-week low of Rs 73.05 on 16 October 2008.
The stock declined 3.47% to Rs 82.15 on 22 October 207, from a recent high of Rs 85.10 on 21 October 2008, ahead of the results. The stock surged 5.85% to Rs 85.10 on 21 October 2008.
The company’s current equity is Rs 78.72 crore. Face value per share is Rs 1.
Sesa Goa’s net profit surged 272.63% to Rs 306.08 crore on 151.07% increase in total income to Rs 876.76 crore in Q2 September 2008 over Q2 September 2007. The company announced the results after trading hours on Wednesday, 22 October 2008.
Sesa Goa, an iron ore mining company of the Vedanta group, has been involved in iron ore mining, beneficiation and exports besides. It is also into the manufacture of pig iron and metallurgical coke.
Post-Market Commentary, Thursday, October 23, 2008
Auto, metal shares lead 398-point Sensex slide
A strong rebound in mid-afternoon trade on Finance minister P Chidambaram’s comments that the Securities & Exchange Board of India (Sebi) has asked foreign institutional investors (FIIs) to reverse short positions on borrowed shares, proved short-lived. Auto and metal stocks led 398.20 points or 3.92% fall in the BSE Sensex, which ended below the 10,000 mark. Relaxation of the overseas borrowing norms for corporates and softening inflation failed to lift the gloom.
Chidambaram told a television channel that the reversal of FIIs' short postions on borrowed shares, is likely to take place over the next few days. Early this week, Sebi had disapproved overseas lending of shares by foreign funds after data showed that FIIs had lent equities worth Rs 348 crore to overseas entities for the purpose of short selling, during 10 October-14 October 2008. The data had later showed that their FIIs had lent equities worth Rs 1000 crore between 10 October-17 October 2008.
Meanwhile, the liberal overseas borrowing norms will help Indian firms with good credit rating in raising overseas funds once the global credit market crises eases. According to the new rules notified by the Reserve Bank of India, external commercial borrowings up to $500 million per borrower per financial year would be permitted for rupee expenditure or foreign currency expenditure for permissible end uses under the automatic route.
Stocks fell in Europe as bearish updates from engineering group ABB and auto group Daimler added to worries about the global economy that sent banks and commodity shares sharply lower. Key benchmark indices in France, UK and Germany fell by between 2.25% to 3.94%.
Asia markets, which had tumbled earlier in the day on fears of a severe global downturn, however, cut steep intraday losses on news the Federal Deposit Insurance Corp Chairman Sheila Bair is expected to suggest in a Senate Banking Committee on Thursday, that the government give banks incentives to turn troubled loans into more affordable mortgages. Yet, most markets ended in the red. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore, China and Taiwan were down by between 1.07% to 7.48%.
Sensex lost 398.20 points or 3.92% to 9.771.70.
Nifty was down 122 points or 3.98% to 2,943.15.
A strong rebound in mid-afternoon trade on Finance minister P Chidambaram’s comments that the Securities & Exchange Board of India (Sebi) has asked foreign institutional investors (FIIs) to reverse short positions on borrowed shares, proved short-lived. Auto and metal stocks led 398.20 points or 3.92% fall in the BSE Sensex, which ended below the 10,000 mark. Relaxation of the overseas borrowing norms for corporates and softening inflation failed to lift the gloom.
Chidambaram told a television channel that the reversal of FIIs' short postions on borrowed shares, is likely to take place over the next few days. Early this week, Sebi had disapproved overseas lending of shares by foreign funds after data showed that FIIs had lent equities worth Rs 348 crore to overseas entities for the purpose of short selling, during 10 October-14 October 2008. The data had later showed that their FIIs had lent equities worth Rs 1000 crore between 10 October-17 October 2008.
Meanwhile, the liberal overseas borrowing norms will help Indian firms with good credit rating in raising overseas funds once the global credit market crises eases. According to the new rules notified by the Reserve Bank of India, external commercial borrowings up to $500 million per borrower per financial year would be permitted for rupee expenditure or foreign currency expenditure for permissible end uses under the automatic route.
Stocks fell in Europe as bearish updates from engineering group ABB and auto group Daimler added to worries about the global economy that sent banks and commodity shares sharply lower. Key benchmark indices in France, UK and Germany fell by between 2.25% to 3.94%.
Asia markets, which had tumbled earlier in the day on fears of a severe global downturn, however, cut steep intraday losses on news the Federal Deposit Insurance Corp Chairman Sheila Bair is expected to suggest in a Senate Banking Committee on Thursday, that the government give banks incentives to turn troubled loans into more affordable mortgages. Yet, most markets ended in the red. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore, China and Taiwan were down by between 1.07% to 7.48%.
Sensex lost 398.20 points or 3.92% to 9.771.70.
Nifty was down 122 points or 3.98% to 2,943.15.
Wednesday, October 22, 2008
Tata Steel tumbles on Moody's downgrade
Tata Steel slumped 14.18% to Rs 238.85 at 15:32 IST on BSE after Moody's Investors Service lowered outlook on corporate family rating to negative from stable.
The stock hit an intraday low of Rs 238.30, also its 52-week low. It hit an intraday high of Rs 273.45 so far during the day. The stock had a 52-week high of Rs 969.80 on 29 October 2007.
Tata Steel, the world’s sixth largest steel maker, has an equity capital of Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 238.85 discounts its Q1 June 2008 annualised EPS of Rs 81.47, by a PE multiple of 2.93.
The change in outlook reflects the more challenging operating conditions now facing Tata Steel UK (formerly Corus) as a result of the likely deterioration in demand in Europe and the UK in the next 18 months, with declining steel prices and reduced production volumes, Moody's said.
Tata Steel UK is the 100% subsidiary of Tata Steel, and is the holding company for the European steel operations principally consisting of the Corus group.
Moody's added that Tata Steel's Indian operations should remain relatively resilient to the deterioration in the operating environment, due to its significant degree of vertical integration, globally competitive cost position and the growth prospects for the Indian market.
Tata Steel's net profit rose 21.8% to Rs 1,488.40 crore on 46.9% rise in sales to Rs 6,165.03 crore in Q1 June 2008 over Q1 June 2007. Tata Steel will declare Q2 September 2008 results on 24 October 2008.
Tata Steel is an integrated steel producer, which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.
The stock hit an intraday low of Rs 238.30, also its 52-week low. It hit an intraday high of Rs 273.45 so far during the day. The stock had a 52-week high of Rs 969.80 on 29 October 2007.
Tata Steel, the world’s sixth largest steel maker, has an equity capital of Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 238.85 discounts its Q1 June 2008 annualised EPS of Rs 81.47, by a PE multiple of 2.93.
The change in outlook reflects the more challenging operating conditions now facing Tata Steel UK (formerly Corus) as a result of the likely deterioration in demand in Europe and the UK in the next 18 months, with declining steel prices and reduced production volumes, Moody's said.
Tata Steel UK is the 100% subsidiary of Tata Steel, and is the holding company for the European steel operations principally consisting of the Corus group.
Moody's added that Tata Steel's Indian operations should remain relatively resilient to the deterioration in the operating environment, due to its significant degree of vertical integration, globally competitive cost position and the growth prospects for the Indian market.
Tata Steel's net profit rose 21.8% to Rs 1,488.40 crore on 46.9% rise in sales to Rs 6,165.03 crore in Q1 June 2008 over Q1 June 2007. Tata Steel will declare Q2 September 2008 results on 24 October 2008.
Tata Steel is an integrated steel producer, which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.
Ashapura Minechem tumbles on $47 million lawsuits
Ashapura Minechem dropped 15.13% to Rs 39 at 11:25 IST on BSE on reports the company faces three lawsuits in New York federal court seeking a total of more than $47 million.
The stock hit a high of Rs 44.50 and a low of Rs 38.55 so far during the day. The stock had a 52-week high of Rs 445 on 2 January 2008 and a 52-week low of Rs 38.65 on 15 October 2008.
The small-cap bulk minerals producer has an equity capital of Rs 15.80 crore. Face value per share is Rs 2.
The current price of Rs 39 discounts its Q1 June 2008 annualised EPS of Rs 11.95, by a PE multiple of 3.26.
The lawsuits are filed by shipping firms Armada Shipping Pte and Eitzen Bulk and maritime insurer British Marine. Reports suggest that one of the three law suits pertained to maritime law. No information was available about the other two.
Ashapura Minechem is into mining of bentonite, bauxite, allied minerals and it exports to over 30 countries in Middle East, Latin America, Europe, Egypt, Japan and South East and Australia.
Ashapura Minechem’s net profit rose 27.5% to Rs 23.60 crore on a 14% rise in sales to Rs 297.72 crore in Q1 June 2008 over Q1 June 2007.
The stock hit a high of Rs 44.50 and a low of Rs 38.55 so far during the day. The stock had a 52-week high of Rs 445 on 2 January 2008 and a 52-week low of Rs 38.65 on 15 October 2008.
The small-cap bulk minerals producer has an equity capital of Rs 15.80 crore. Face value per share is Rs 2.
The current price of Rs 39 discounts its Q1 June 2008 annualised EPS of Rs 11.95, by a PE multiple of 3.26.
The lawsuits are filed by shipping firms Armada Shipping Pte and Eitzen Bulk and maritime insurer British Marine. Reports suggest that one of the three law suits pertained to maritime law. No information was available about the other two.
Ashapura Minechem is into mining of bentonite, bauxite, allied minerals and it exports to over 30 countries in Middle East, Latin America, Europe, Egypt, Japan and South East and Australia.
Ashapura Minechem’s net profit rose 27.5% to Rs 23.60 crore on a 14% rise in sales to Rs 297.72 crore in Q1 June 2008 over Q1 June 2007.
Tech Mahindra good Q2 numbers
Tech Mahindra (CMP=Rs 445.05)net profit rose 16.36% to Rs 295.98 crore in Q2 September 2008 over Q1 June 2008.
The stock had a 52-week high of Rs 1305 on 22 October 2007 and a 52-week low of Rs 336.05 on 17 October 2008.
From a recent low of Rs 344.95 on 17 October 2008, the stock rose 19.75% in two consecutive trading sessions to Rs 413.10 21 October 2008, ahead of the results.
The mid-cap telecom software maker has an equity capital of Rs 121.70 crore. Face value per share is Rs 10.
The current price of Rs 445.05 discounts its Q2 September 2008 annualised EPS of Rs 97.28, by a PE multiple of 4.57.
The jump in profit was partly aided by a tax refund of Rs 60 crore from the UK government. The company’s net sales rose 3.75% to Rs 1142.04 in Q2 September 2008 over Q1 June 2008.
Tech Mahindra provides IT services and solutions to the telecom sector. It provides a variety of services ranging from IT strategy and consulting to system integration, design, application development, implementation, maintenance and product engineering.
The stock had a 52-week high of Rs 1305 on 22 October 2007 and a 52-week low of Rs 336.05 on 17 October 2008.
From a recent low of Rs 344.95 on 17 October 2008, the stock rose 19.75% in two consecutive trading sessions to Rs 413.10 21 October 2008, ahead of the results.
The mid-cap telecom software maker has an equity capital of Rs 121.70 crore. Face value per share is Rs 10.
The current price of Rs 445.05 discounts its Q2 September 2008 annualised EPS of Rs 97.28, by a PE multiple of 4.57.
The jump in profit was partly aided by a tax refund of Rs 60 crore from the UK government. The company’s net sales rose 3.75% to Rs 1142.04 in Q2 September 2008 over Q1 June 2008.
Tech Mahindra provides IT services and solutions to the telecom sector. It provides a variety of services ranging from IT strategy and consulting to system integration, design, application development, implementation, maintenance and product engineering.
Tuesday, October 21, 2008
SAIL Q2 results
Steel Authority of India dropped 1.90% to Rs 105.80 at 15:29 IST on BSE, on profit taking, after net profit surged 18.20% to Rs 2,009.60 crore in Q2 September 2008 over Q2 September 2007.
The stock hit a high of Rs 110 and a low of Rs 101.10 so far during the day. The stock has a 52-week high of Rs 292.50 on 13 December 2007 and a 52-week low of Rs 96.10 on 16 October 2008.
The stock had surged 7.05% to Rs 107.85 on 20 October 2008 ahead of the results.
The company’s current equity is Rs 4130.40 crore. Face value per share is Rs 10.
The current price of Rs 105.80 discounts the company’s Q1 June 2008 annualized EPS of Rs 17.77, by a PE multiple of 5.95.
Steel Authority of India (Sail)’s total income rose 33.73% to Rs 12,660.99 crore in Q2 September 2008 over Q2 September 2007.
On 1 October 2008, the company signed a memorandum of understanding with Larsen & Toubro to jointly set up, develop, manage and own captive/independent power plants at suitable locations to meet future power requirements of the company.
Sail is engaged in manufacturing and marketing iron and steel. The group produces both basic and special steels for domestic construction, engineering, power, railway, automotive and defence industries and for sale in export markets.
The stock hit a high of Rs 110 and a low of Rs 101.10 so far during the day. The stock has a 52-week high of Rs 292.50 on 13 December 2007 and a 52-week low of Rs 96.10 on 16 October 2008.
The stock had surged 7.05% to Rs 107.85 on 20 October 2008 ahead of the results.
The company’s current equity is Rs 4130.40 crore. Face value per share is Rs 10.
The current price of Rs 105.80 discounts the company’s Q1 June 2008 annualized EPS of Rs 17.77, by a PE multiple of 5.95.
Steel Authority of India (Sail)’s total income rose 33.73% to Rs 12,660.99 crore in Q2 September 2008 over Q2 September 2007.
On 1 October 2008, the company signed a memorandum of understanding with Larsen & Toubro to jointly set up, develop, manage and own captive/independent power plants at suitable locations to meet future power requirements of the company.
Sail is engaged in manufacturing and marketing iron and steel. The group produces both basic and special steels for domestic construction, engineering, power, railway, automotive and defence industries and for sale in export markets.
Sah Petroleums Open offer at huge premium
Sah Petroleums was locked at upper limit of 20% to Rs 17.28 at 14:23 IST on BSE, surging for the second day in a row, on open offer at a huge premium to the market price.
The company made the announcement during market hours yesterday, 20 October 2008, when the stock rose 20% to Rs 14.40.
The stock had a 52-week high of Rs 29.30 on 3 January 2008 and a 52-week low of Rs 8 on 10 October 2008.
The small-cap industrial lubricants maker has an equity capital of Rs 16 crore. Face value per share is Rs 5.
The current price of Rs 17.28 discounts its Q1 June 2008 annualised EPS of Rs 4.56, by a PE multiple of 3.78.
NAF India Holdings during trading hours on Monday, 20 October 2008, announced an open offer to acquire 27.5% additional stake at Rs 48.50 per share. The offer price was at a huge 304% premium over Friday's (17 October 2008)'s closing price of Rs 12 on BSE. The offer will remain open between 4 December 2008 and 24 December 2008.
The open offer was triggered after the company's board at the meeting held on 17 October 2008, approving issue of 1.20 crore equity shares of Rs 5 each to NAF India Holdings at a price of Rs 26.65 per equity share on preferential basis.
As per the Sebi takeover code, any acquirer who acquires 15% or more equity shares in a company, has to make a mandatory open offer of 20% of the equity share capital of the target company.
Sah Petroleums’ net profit rose 21.7% to Rs 3.65 crore on a 36.6% rise in sales to Rs 60.31 crore in Q1 June 2008 over Q1 June 2007.
Sah Petroleums manufactures a wide range of specialty industrial lubricants, rubber processing oils, greases, automotive lubes and various grades of other oils.
The company made the announcement during market hours yesterday, 20 October 2008, when the stock rose 20% to Rs 14.40.
The stock had a 52-week high of Rs 29.30 on 3 January 2008 and a 52-week low of Rs 8 on 10 October 2008.
The small-cap industrial lubricants maker has an equity capital of Rs 16 crore. Face value per share is Rs 5.
The current price of Rs 17.28 discounts its Q1 June 2008 annualised EPS of Rs 4.56, by a PE multiple of 3.78.
NAF India Holdings during trading hours on Monday, 20 October 2008, announced an open offer to acquire 27.5% additional stake at Rs 48.50 per share. The offer price was at a huge 304% premium over Friday's (17 October 2008)'s closing price of Rs 12 on BSE. The offer will remain open between 4 December 2008 and 24 December 2008.
The open offer was triggered after the company's board at the meeting held on 17 October 2008, approving issue of 1.20 crore equity shares of Rs 5 each to NAF India Holdings at a price of Rs 26.65 per equity share on preferential basis.
As per the Sebi takeover code, any acquirer who acquires 15% or more equity shares in a company, has to make a mandatory open offer of 20% of the equity share capital of the target company.
Sah Petroleums’ net profit rose 21.7% to Rs 3.65 crore on a 36.6% rise in sales to Rs 60.31 crore in Q1 June 2008 over Q1 June 2007.
Sah Petroleums manufactures a wide range of specialty industrial lubricants, rubber processing oils, greases, automotive lubes and various grades of other oils.
LIC Housing Finance Q2 numbers
LIC Housing Finance spurted 7.34% to Rs 242 at 14:01 IST on BSE, as net profit rose 16.06% to Rs 135.07 crore in Q2 September 2008 over Q2 September 2007.
The stock hit a high of Rs 248 and a low of Rs 224 so far during the day. The stock has a 52-week high of Rs 402.90 on 11 December 2007 and a 52-week low of Rs 192 on 22 January 2008.
The stock declined 16.70% to Rs 225.45 on 20 October 2008, from the recent high of Rs 270.65 on 14 October 2008, ahead of the results.
The financial institution’s current equity is Rs 84.99 crore. Face value per share is Rs 10.
The current price of Rs 242 discounts the company’s Q1 June 2008 annualized EPS of Rs 49.29, by a PE multiple of 4.91.
LIC Housing Finance’s total income rose 34.86% to Rs 707.72 crore in Q2 September 2008 over Q2 September 2007.
The firm provides long-term finance to individuals for purchase/construction/repair and renovation of new/ existing flats/houses. The company also provides finance on existing property for business/personal needs and gives loans to professionals for purchase/construction of clinics/nursing homes/diagnostic centres / office space.
The stock hit a high of Rs 248 and a low of Rs 224 so far during the day. The stock has a 52-week high of Rs 402.90 on 11 December 2007 and a 52-week low of Rs 192 on 22 January 2008.
The stock declined 16.70% to Rs 225.45 on 20 October 2008, from the recent high of Rs 270.65 on 14 October 2008, ahead of the results.
The financial institution’s current equity is Rs 84.99 crore. Face value per share is Rs 10.
The current price of Rs 242 discounts the company’s Q1 June 2008 annualized EPS of Rs 49.29, by a PE multiple of 4.91.
LIC Housing Finance’s total income rose 34.86% to Rs 707.72 crore in Q2 September 2008 over Q2 September 2007.
The firm provides long-term finance to individuals for purchase/construction/repair and renovation of new/ existing flats/houses. The company also provides finance on existing property for business/personal needs and gives loans to professionals for purchase/construction of clinics/nursing homes/diagnostic centres / office space.
Hindustan Construction bagging hydro-electro power project
Hindustan Construction Company rose 5.94% to Rs 47.25 at 12:01 IST on BSE, on bagging hydro-electro power project worth 360.05 crore.
The stock hit a high of Rs 47.90 and a low of Rs 45.10 so far during the day. The stock has a 52-week high of Rs 278.90 on 2 January 2008 and a 52-week low of Rs 40.80 on 16 October 2007.
The company’s current equity is Rs 25.62 crore. Face value per share is Rs 1.
The current price of Rs 47.25 discounts the company’s Q1 June 2008 annualized EPS of Rs 4.81, by a PE multiple of 9.82.
Hindustan Construction Company (HCC) has bagged an order worth Rs 360.05 crore from Lanco Infra Tech for a hydro-electro power project. The project is to be executed within 45 months from the date of letter of intent.
On 17 October 2008, the company won two orders worth Rs 3338 crore from the Andhra Pradesh government in consortium with other firms.
On 15 October 2008, HCC announced that Bank of India has invested Rs 150 crore in its subsidiary Lavasa Corporation, in the form of convertible debentures.
In August 2008, a joint venture of Hindustan Construction bagged an irrigation order worth Rs 1398.50 crore in Andhra Pradesh.
HCC will declare its Q2 September 2008 results on Friday, 24 October 2008. The company’s net profit fell 11.8% to Rs 30.84 crore on 18.8% increase in net sales to Rs 865.89 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in constructing industrial and commercial building. HCC specializes in large-scale civil constructions. It has been continuously developing new age construction technologies.
The stock hit a high of Rs 47.90 and a low of Rs 45.10 so far during the day. The stock has a 52-week high of Rs 278.90 on 2 January 2008 and a 52-week low of Rs 40.80 on 16 October 2007.
The company’s current equity is Rs 25.62 crore. Face value per share is Rs 1.
The current price of Rs 47.25 discounts the company’s Q1 June 2008 annualized EPS of Rs 4.81, by a PE multiple of 9.82.
Hindustan Construction Company (HCC) has bagged an order worth Rs 360.05 crore from Lanco Infra Tech for a hydro-electro power project. The project is to be executed within 45 months from the date of letter of intent.
On 17 October 2008, the company won two orders worth Rs 3338 crore from the Andhra Pradesh government in consortium with other firms.
On 15 October 2008, HCC announced that Bank of India has invested Rs 150 crore in its subsidiary Lavasa Corporation, in the form of convertible debentures.
In August 2008, a joint venture of Hindustan Construction bagged an irrigation order worth Rs 1398.50 crore in Andhra Pradesh.
HCC will declare its Q2 September 2008 results on Friday, 24 October 2008. The company’s net profit fell 11.8% to Rs 30.84 crore on 18.8% increase in net sales to Rs 865.89 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in constructing industrial and commercial building. HCC specializes in large-scale civil constructions. It has been continuously developing new age construction technologies.
EID Parry Buyback plan
EID Parry India moved up 6.83% to Rs 165 at 11:09 IST on BSE, on proposal to consider buy back of own shares.
The stock hit a high of Rs 179.90 and a low of Rs 157 so far during the day. The stock has a 52-week high of Rs 267 on 7 August 2008 and a 52-week low of Rs 130.50 on 22 October 2007.
The company’s current equity is Rs 17.85 crore. Face value per share is Rs 2.
The current price of Rs 165 discounts the company’s Q1 June 2008 annualized EPS of Rs 1.24, by a PE multiple of 133.06.
EID Parry India’s board will meet on 29 October 2008 to consider buy back of equity shares of the company. The company made this announcement during trading hours today, 21 October 2008.
EID Parry India will declare its Q2 September 2008 results on 29 October 2008. The company reported a net profit of Rs 2.77 crore in Q1 June 2008 as compared to net loss of Rs 25.41 crore in Q1 June 2007. Net sales surged 194.8% to Rs 216 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing and marketing a wide-range of products such as sugar, bio-products and others. It also involves in the production of farm inputs and cogeneration of power.
The stock hit a high of Rs 179.90 and a low of Rs 157 so far during the day. The stock has a 52-week high of Rs 267 on 7 August 2008 and a 52-week low of Rs 130.50 on 22 October 2007.
The company’s current equity is Rs 17.85 crore. Face value per share is Rs 2.
The current price of Rs 165 discounts the company’s Q1 June 2008 annualized EPS of Rs 1.24, by a PE multiple of 133.06.
EID Parry India’s board will meet on 29 October 2008 to consider buy back of equity shares of the company. The company made this announcement during trading hours today, 21 October 2008.
EID Parry India will declare its Q2 September 2008 results on 29 October 2008. The company reported a net profit of Rs 2.77 crore in Q1 June 2008 as compared to net loss of Rs 25.41 crore in Q1 June 2007. Net sales surged 194.8% to Rs 216 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing and marketing a wide-range of products such as sugar, bio-products and others. It also involves in the production of farm inputs and cogeneration of power.
Titan Industries shines on strong Q2 results
Titan Industries galloped 7.02% to Rs 909 at 10:07 IST on BSE, as net profit surged 88.2% to Rs 87.14 crore in Q2 September 2008 over Q2 September 2007.
The stock hit a high of Rs 925 and a low of Rs 860.05 so far during the day. The stock has a 52-week high of Rs 1795 on 30 October 2007 and a 52-week low of Rs 710 on 16 October 2008.
The stock gained 5.69% to Rs 849.35 on 20 October 2008, from a recent low of Rs 803.65 on 15 October 2008, ahead of the results.
The company’s current equity is Rs 44.39 crore. Face value per share is Rs 10.
The current price of Rs 909 discounts the company’s Q2 September 2008 annualized EPS of Rs 78.52, by a PE multiple of 11.58.
Titan Industries’ total income rose 53.10% to Rs 1089.77 crore in Q2 September 2008 over Q2 September 2007.
The company is engaged in manufacturing, developing and marketing mechanical, digital and quartz watches, jewellery watches and jewellery pieces. The manufacturing plants are located in Hosur in Tamil Nadu and Dehradun in Uttaranchal and also have operations in Holland, Dubai, the United Kingdom and Singapore.
The stock hit a high of Rs 925 and a low of Rs 860.05 so far during the day. The stock has a 52-week high of Rs 1795 on 30 October 2007 and a 52-week low of Rs 710 on 16 October 2008.
The stock gained 5.69% to Rs 849.35 on 20 October 2008, from a recent low of Rs 803.65 on 15 October 2008, ahead of the results.
The company’s current equity is Rs 44.39 crore. Face value per share is Rs 10.
The current price of Rs 909 discounts the company’s Q2 September 2008 annualized EPS of Rs 78.52, by a PE multiple of 11.58.
Titan Industries’ total income rose 53.10% to Rs 1089.77 crore in Q2 September 2008 over Q2 September 2007.
The company is engaged in manufacturing, developing and marketing mechanical, digital and quartz watches, jewellery watches and jewellery pieces. The manufacturing plants are located in Hosur in Tamil Nadu and Dehradun in Uttaranchal and also have operations in Holland, Dubai, the United Kingdom and Singapore.
Monday, October 20, 2008
Bhel tanks 26% in four days
Bharat Heavy Electricals lost 8.23% to Rs 1096.45 at 15:18 IST on BSE on recent reports that rise in raw material cost may hurt margins in the year ending March 2009.
The stock has lost 26.29% in four trading days from Rs 1487.70 on 14 October 2008 after the company’s Chairman K. Ravi Kumar on 15 October 2008 in an interview to a business news channel told there will be some pressure on margins in the year ended March 2009 as raw material costs are expected to increase by 1%.
The stock hit a 52-week low of Rs 1086.30 in intra-day trade. It hit a high of Rs 1242 so far during the day. The stock has a 52-week high of Rs 2925 on 7 November 2007.
The company’s current equity is Rs 489.52 crore. Face value per share is Rs 10.
The current price of Rs 1096.45 discounts Q1 June 2008 annualized EPS of Rs 31.41, a PE multiple of 34.90.
The Bharat Heavy Electricals (Bhel) chairman, however, said the company is confident of achieving 30% growth in revenues in the current financial year. The company will announce its Q2 September 2008 results on 24 October 2008.
The company had reported 33.1% rise in net profit to Rs 384.41 crore on 33.9% increase in net sales to Rs 4329.24 crore in Q1 June 2008 over Q1 June 2007.
Bhel is engaged in manufacturing and distributing electrical, electronic, and mechanical and nuclear power equipment.
The stock has lost 26.29% in four trading days from Rs 1487.70 on 14 October 2008 after the company’s Chairman K. Ravi Kumar on 15 October 2008 in an interview to a business news channel told there will be some pressure on margins in the year ended March 2009 as raw material costs are expected to increase by 1%.
The stock hit a 52-week low of Rs 1086.30 in intra-day trade. It hit a high of Rs 1242 so far during the day. The stock has a 52-week high of Rs 2925 on 7 November 2007.
The company’s current equity is Rs 489.52 crore. Face value per share is Rs 10.
The current price of Rs 1096.45 discounts Q1 June 2008 annualized EPS of Rs 31.41, a PE multiple of 34.90.
The Bharat Heavy Electricals (Bhel) chairman, however, said the company is confident of achieving 30% growth in revenues in the current financial year. The company will announce its Q2 September 2008 results on 24 October 2008.
The company had reported 33.1% rise in net profit to Rs 384.41 crore on 33.9% increase in net sales to Rs 4329.24 crore in Q1 June 2008 over Q1 June 2007.
Bhel is engaged in manufacturing and distributing electrical, electronic, and mechanical and nuclear power equipment.
Shree Renuka Sugars acquired a Sugar mill @Karnataka
Shree Renuka Sugars tumbled 7.68% to Rs 56.40 at 14:56 IST on BSE, after the company acquired a majority stake in a sugar firm based in Karnataka.
The company made the announcement of the acquisition during trading hours today, 20 October 2008.
The stock hit a high of Rs 63.60 so for during the day. The stock hit a low of Rs 55.50 so far during the day, which is a 52-week low for the counter. The stock has a 52-week high of Rs 142.20 on 6 August 2008.
The company’s current equity is Rs 27.60 crore. Face value per share is Rs 1.
The current price of Rs 56.40 discounts the company’s Q3 June 2008 annualized EPS of Rs 3.41, by a PE multiple of 16.54.
The company has acquired 87% stake in Gokak Sugars of Karnataka for a consideration of Rs 69.30 crore which includes assumption of debt of Rs 65 crore. Gokak Sugars has 2500 tons of cane per day (TCD) sugar manufacturing unit and a 14 megawatt (MW) co-generation power plant at Belgaum in Karnataka.
The company also won a 30-year lease of Raibag Sahakari Sahar Karkhana Niyamit (SSKN) of Karnataka. Raibag SSKN has a sugar manufacturing capacity of 2500 TCD.
Shree Renuka Sugars, net profit fell 27% to Rs 23 crore on 215.3% fall in net sales to Rs 612 crore in Q3 June 2008 over Q3 June 2007.
Shree Renuka Sugars is a fully integrated manufacturer of sugar, power and ethanol.
The company made the announcement of the acquisition during trading hours today, 20 October 2008.
The stock hit a high of Rs 63.60 so for during the day. The stock hit a low of Rs 55.50 so far during the day, which is a 52-week low for the counter. The stock has a 52-week high of Rs 142.20 on 6 August 2008.
The company’s current equity is Rs 27.60 crore. Face value per share is Rs 1.
The current price of Rs 56.40 discounts the company’s Q3 June 2008 annualized EPS of Rs 3.41, by a PE multiple of 16.54.
The company has acquired 87% stake in Gokak Sugars of Karnataka for a consideration of Rs 69.30 crore which includes assumption of debt of Rs 65 crore. Gokak Sugars has 2500 tons of cane per day (TCD) sugar manufacturing unit and a 14 megawatt (MW) co-generation power plant at Belgaum in Karnataka.
The company also won a 30-year lease of Raibag Sahakari Sahar Karkhana Niyamit (SSKN) of Karnataka. Raibag SSKN has a sugar manufacturing capacity of 2500 TCD.
Shree Renuka Sugars, net profit fell 27% to Rs 23 crore on 215.3% fall in net sales to Rs 612 crore in Q3 June 2008 over Q3 June 2007.
Shree Renuka Sugars is a fully integrated manufacturer of sugar, power and ethanol.
Godawari Power & Ispat Buyback plan
Godawari Power & Ispat galloped 6.19% to Rs 97 at 10:09 IST on BSE, after the company decided to consider buyback of equity shares.
The stock hit a high of Rs 105.95 and low of Rs 95.90 so far during the day. The stock has a 52-week high of Rs 376.50 on 1 January 2008 and a 52-week low of Rs 85 on 16 October 2008.
The company’s current equity is Rs 28.07 crore. Face value per share is Rs 10.
The current price of Rs 97 discounts the company’s Q1 June 2008 annualized EPS of Rs 54.22, by a PE multiple of 1.79.
Godawari Power & Ispat’s board will meet on 25 October 2008 to consider buyback of equity shares.
In September 2008, the company signed a memorandum of understanding with the state government of Chhattisgarh for setting-up a 1000-megawatt thermal power project.
In August 2008, the company signed a memorandum of understanding with the government of Chhattisgarh to set up manufacturing facilities for sponge iron, pig iron, steel and a power plan under its expansion programme in the state of Chhattisgarh with proposed investment of Rs 1,570 crore.
Godawari Power & Ispat will declare its Q2 September 2008 results on 25 October 2008. The company reported 81.7% surge in net profit to Rs 38.05 crore on 88.3% rise in sales to Rs 320.44 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing steel intermediate products like sponge iron and ferro alloys and finished long steel products like billets, wire rods and mild steel wires, which find application in the construction and infrastructure sectors. The group operates in three segments namely steel, electricity and others.
The stock hit a high of Rs 105.95 and low of Rs 95.90 so far during the day. The stock has a 52-week high of Rs 376.50 on 1 January 2008 and a 52-week low of Rs 85 on 16 October 2008.
The company’s current equity is Rs 28.07 crore. Face value per share is Rs 10.
The current price of Rs 97 discounts the company’s Q1 June 2008 annualized EPS of Rs 54.22, by a PE multiple of 1.79.
Godawari Power & Ispat’s board will meet on 25 October 2008 to consider buyback of equity shares.
In September 2008, the company signed a memorandum of understanding with the state government of Chhattisgarh for setting-up a 1000-megawatt thermal power project.
In August 2008, the company signed a memorandum of understanding with the government of Chhattisgarh to set up manufacturing facilities for sponge iron, pig iron, steel and a power plan under its expansion programme in the state of Chhattisgarh with proposed investment of Rs 1,570 crore.
Godawari Power & Ispat will declare its Q2 September 2008 results on 25 October 2008. The company reported 81.7% surge in net profit to Rs 38.05 crore on 88.3% rise in sales to Rs 320.44 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing steel intermediate products like sponge iron and ferro alloys and finished long steel products like billets, wire rods and mild steel wires, which find application in the construction and infrastructure sectors. The group operates in three segments namely steel, electricity and others.
Moser Baer on expansion plan
Moser Baer India surged 3.17% to Rs 101 at 9:56 IST on BSE, on reports the company plans invest over $800 million in various businesses in the next 18 months.
The stock hit a high of Rs 103.50 and low of Rs 100 so far during the day. The stock has a 52-week high of Rs 344.80 on 3 January 2008 and a 52-week low of Rs 87.90 on 1 August 2008.
The company’s current equity is Rs 168.30 crore. Face value per share is Rs 10.
The company plans to expand its crystalline silicon cell production capacity from 80 megawatt (MW) to 300 MW and thin film capacity from 40 MW to 600 MW by 2010, reports suggest.
On 15 October 2008, the company set up a state-of-the-art digital video processing facility in Chennai, Tamil Nadu.
On 1 October 2008, Moser Baer India secured an export order worth $500 million for supply of solar modules to a major European solar system integrator.
In September 2008, the company’s wholly owned photovoltaic subsidiary signed a pact with a consortium of global investors to raise Rs 411 crore.
Moser Baer India will declare its Q2 September 2008 results on Friday, 24 October 2008. The company reported a net loss of Rs 103.98 crore in Q1 June 2008 as against net profit of Rs 9.64 crore in Q1 June 2007. Net sales rose 2.1% to Rs 478.93 crore in Q1 June 2008 over Q1 June 2007.
The company manufactures storage media for data applications and audio/video applications. It is India's second largest manufacturer of IT & entertainment peripherals in terms of sales.
The stock hit a high of Rs 103.50 and low of Rs 100 so far during the day. The stock has a 52-week high of Rs 344.80 on 3 January 2008 and a 52-week low of Rs 87.90 on 1 August 2008.
The company’s current equity is Rs 168.30 crore. Face value per share is Rs 10.
The company plans to expand its crystalline silicon cell production capacity from 80 megawatt (MW) to 300 MW and thin film capacity from 40 MW to 600 MW by 2010, reports suggest.
On 15 October 2008, the company set up a state-of-the-art digital video processing facility in Chennai, Tamil Nadu.
On 1 October 2008, Moser Baer India secured an export order worth $500 million for supply of solar modules to a major European solar system integrator.
In September 2008, the company’s wholly owned photovoltaic subsidiary signed a pact with a consortium of global investors to raise Rs 411 crore.
Moser Baer India will declare its Q2 September 2008 results on Friday, 24 October 2008. The company reported a net loss of Rs 103.98 crore in Q1 June 2008 as against net profit of Rs 9.64 crore in Q1 June 2007. Net sales rose 2.1% to Rs 478.93 crore in Q1 June 2008 over Q1 June 2007.
The company manufactures storage media for data applications and audio/video applications. It is India's second largest manufacturer of IT & entertainment peripherals in terms of sales.
Sunday, October 19, 2008
Lust for lucre overrides fear factor as investors turn a blind eye to volatility index
Lust for lucre overrides fear factor as investors turn a blind eye to volatility index
19 Oct, 2008, 0237 hrs IST,Aman Dhall & Shobhana Chadha, ET Bureau
NEW DELHI: Did investors play with their own fate? Check this out. Even though the India Volatility Index (VIX) issued negative forecasts, investo
rs chose to turn a blind eye to the warning signals.
VIX or Fear Index, as it is better known, touched an intra-day high of 67.78 on October 10, an ominous sign that bulls could be further slaughtered over the next 30 days. In fact, in the US, the Chicago Board Options Exchange (CBOE) VIX reached 80 for the first time in its 18-year history on Thursday, signalling that the worst is yet to come for the world markets. Market analysts now unanimously agree that it won’t come as a big shock if Sensex even nosedives below 8,000 levels in the coming days.
For the uninitiated, the VIX measures the amount by which an underlying index is expected to fluctuate over the next 30 calendar days. If the volatility is above 30, then the market is said to be very fragile in nature. When above 40, one can expect uncertain market conditions and if the VIX is above 50, it can be dangerous. Here’s how it’s calculated. From the near and mid month options bid and offer prices of the Nifty 50 index options, it derives the implied or expected volatility over the next 30 calendar days.
A SundayET research reveals that investors could have easily dodged their losses of Rs 5.74 trillion incurred in the first fortnight of October on BSE Sensex and NSE Nifty, had they tracked the VIX journey diligently over the past one and a half month. The analysis (see chart) reveals a high degree of co-relation between major Sensex and Nifty falls this month and the VIX predictions in September.
For instance, when VIX was at its highest intra-day level (till now) of 68.33 on September 18, both Sensex and Nifty fell by over 6% on October 17. Similarly, on September 16, when the VIX recorded an intra-day high of 53.62, the repercussions were felt on the two major indices 30 days later on October 15, as they both dipped over 5%.
“It’s a wonderful attempt to educate investors about the VIX. I fully agree had retail investors tracked the VIX, they could have planned an effective entry and exit in stocks in such turbulent times. It’s high time that awareness about this index increases in India,” said HS Sidhu, executive director of Delhi Stock Exchange (DSE). Already, the market capitalisation of the 30-Sensex companies eroded by as much as Rs 3,10,093 crore in the first 15 days of October. The Nifty 50-companies, on the other hand, saw their wealth diminishing by Rs 2,64,548 crore during the first fortnight of October.
via: E.T
19 Oct, 2008, 0237 hrs IST,Aman Dhall & Shobhana Chadha, ET Bureau
NEW DELHI: Did investors play with their own fate? Check this out. Even though the India Volatility Index (VIX) issued negative forecasts, investo
rs chose to turn a blind eye to the warning signals.
VIX or Fear Index, as it is better known, touched an intra-day high of 67.78 on October 10, an ominous sign that bulls could be further slaughtered over the next 30 days. In fact, in the US, the Chicago Board Options Exchange (CBOE) VIX reached 80 for the first time in its 18-year history on Thursday, signalling that the worst is yet to come for the world markets. Market analysts now unanimously agree that it won’t come as a big shock if Sensex even nosedives below 8,000 levels in the coming days.
For the uninitiated, the VIX measures the amount by which an underlying index is expected to fluctuate over the next 30 calendar days. If the volatility is above 30, then the market is said to be very fragile in nature. When above 40, one can expect uncertain market conditions and if the VIX is above 50, it can be dangerous. Here’s how it’s calculated. From the near and mid month options bid and offer prices of the Nifty 50 index options, it derives the implied or expected volatility over the next 30 calendar days.
A SundayET research reveals that investors could have easily dodged their losses of Rs 5.74 trillion incurred in the first fortnight of October on BSE Sensex and NSE Nifty, had they tracked the VIX journey diligently over the past one and a half month. The analysis (see chart) reveals a high degree of co-relation between major Sensex and Nifty falls this month and the VIX predictions in September.
For instance, when VIX was at its highest intra-day level (till now) of 68.33 on September 18, both Sensex and Nifty fell by over 6% on October 17. Similarly, on September 16, when the VIX recorded an intra-day high of 53.62, the repercussions were felt on the two major indices 30 days later on October 15, as they both dipped over 5%.
“It’s a wonderful attempt to educate investors about the VIX. I fully agree had retail investors tracked the VIX, they could have planned an effective entry and exit in stocks in such turbulent times. It’s high time that awareness about this index increases in India,” said HS Sidhu, executive director of Delhi Stock Exchange (DSE). Already, the market capitalisation of the 30-Sensex companies eroded by as much as Rs 3,10,093 crore in the first 15 days of October. The Nifty 50-companies, on the other hand, saw their wealth diminishing by Rs 2,64,548 crore during the first fortnight of October.
via: E.T
Goa Carbon net profit at Rs 2.81 crore
Goa Carbon, a manufacturer of calcined petroleum coke, has posted a net profit of Rs 2.81 crore for the quarter ended 30 September, 2008-09, against the net loss of Rs 0.45 crore in the corresponding previous quarter. The company's net sales during the period stood at Rs 103.13 crore against Rs 40.16 crore last year, up 156.8 per cent.
"The improvement in figures comes on the back of the overall growth in business owing to increased demand from the domestic market for our products," said Shrinivas Dempo, chairman of the company. Goa Carbon’s domestic customers include Nalco, Hindalco, Indal, Malco and Balco.
"The improvement in figures comes on the back of the overall growth in business owing to increased demand from the domestic market for our products," said Shrinivas Dempo, chairman of the company. Goa Carbon’s domestic customers include Nalco, Hindalco, Indal, Malco and Balco.
Sensex below 10,000 on 17th Oct-08
BSE Sensex lost 606.14 points or 5.73% to 9,975.35, after collapsing to 9,911.32, its lowest level in over two years in intra-day trade.
Reliance Industries slumped 6.58% to Rs 1305.25, extending its two-day fall, on fears of fall in refining margins. The stock hit a 52-week low of Rs 1290 during the day. The stock hit a high of Rs 1438 during the day. The stock has a 52-week high of Rs 3,252.10 on 15 January 2008.
Reliance Industries has 13.64% weightage in Sensex and therefore any sharp fall in the stock may drag the key indices further lower.
Reliance Industries slumped 6.58% to Rs 1305.25, extending its two-day fall, on fears of fall in refining margins. The stock hit a 52-week low of Rs 1290 during the day. The stock hit a high of Rs 1438 during the day. The stock has a 52-week high of Rs 3,252.10 on 15 January 2008.
Reliance Industries has 13.64% weightage in Sensex and therefore any sharp fall in the stock may drag the key indices further lower.
Tata Steel Production cut at UK unit
Tata Steel lost 6.38% to Rs 252.55 at 14:50 IST on BSE after its UK unit Corus decided to cut production.
The company made this announcement after trading hours on Thursday, 16 October 2008.
The stock hit a 52-week low of Rs 250 in intra-day trade. It hit a high of Rs 279.40 so far during the day. The stock has a 52-week high of Rs 969.80 on 29 October 2007.
The company’s current equity is Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 252.55 discounts the company’s Q1 June 2008 annualized EPS of Rs 81.47, by a PE multiple of 3.09.
Corus has decided to cut crude steel production by up to 20% or 1 million tonnes over the next three months, to lessen the impact of slump in steel demand amid the global economic meltdown.
Corus is Europe’s second largest steel producer with annual revenues of more than 12 billion pounds sterling and annual production of about 20 million tonnes.
Tata Steel's net profit rose 21.8% to Rs 1,488.40 crore on 46.9% rise in sales to Rs 6,165.03 crore in Q1 June 2008 over Q1 June 2007.
Tata Steel is an integrated steel producer, which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.
The company made this announcement after trading hours on Thursday, 16 October 2008.
The stock hit a 52-week low of Rs 250 in intra-day trade. It hit a high of Rs 279.40 so far during the day. The stock has a 52-week high of Rs 969.80 on 29 October 2007.
The company’s current equity is Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 252.55 discounts the company’s Q1 June 2008 annualized EPS of Rs 81.47, by a PE multiple of 3.09.
Corus has decided to cut crude steel production by up to 20% or 1 million tonnes over the next three months, to lessen the impact of slump in steel demand amid the global economic meltdown.
Corus is Europe’s second largest steel producer with annual revenues of more than 12 billion pounds sterling and annual production of about 20 million tonnes.
Tata Steel's net profit rose 21.8% to Rs 1,488.40 crore on 46.9% rise in sales to Rs 6,165.03 crore in Q1 June 2008 over Q1 June 2007.
Tata Steel is an integrated steel producer, which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.
Elecon Engineering weak Q2 outcome
Elecon Engineering Company declined 1.19% to Rs 50 at 14:15 IST on BSE, as net profit declined 7.05% to Rs 16.01 crore in Q2 September 2008 over Q2 September 2007.
The stock came sharply off the higher level. It had risen as much as 10% to Rs 55, on a new order win
The company announced the results during trading hours today, 17 October 2008.
The stock hit a high of Rs 55 and low of Rs 49.50 so far during the day. The stock has a 52-week high of Rs 343 on 20 December 2007 and a 52-week low of Rs 46.40 on 16 October 2008.
From a recent high of Rs 78.05 on 6 October 2008, the stock declined 35.17% to Rs 50.60 on 16 October 2007.
The company’s current equity is Rs 18.57 crore. Face value per share is Rs 2.
The current price of Rs 50 discounts the company’s Q1 June 2008 annualized EPS of Rs 5.14, by a PE multiple of 9.73.
Elecon Engineering Company’s net sales rose 37.29% to Rs 252.23 crore in Q2 September 2008 over Q2 September 2007.
Earlier today, 17 October 2008, the company announced that it has secured an order worth Rs 17.75 crore from Techpro Systems, Chennai.
Elecon Engineering Company manufactures all kinds of mechanical handling equipment such as bucket elevators, belt conveyors, gravity roller conveyors, bag-filling machines, bag stacking machines, overhead chair conveyors.
The stock came sharply off the higher level. It had risen as much as 10% to Rs 55, on a new order win
The company announced the results during trading hours today, 17 October 2008.
The stock hit a high of Rs 55 and low of Rs 49.50 so far during the day. The stock has a 52-week high of Rs 343 on 20 December 2007 and a 52-week low of Rs 46.40 on 16 October 2008.
From a recent high of Rs 78.05 on 6 October 2008, the stock declined 35.17% to Rs 50.60 on 16 October 2007.
The company’s current equity is Rs 18.57 crore. Face value per share is Rs 2.
The current price of Rs 50 discounts the company’s Q1 June 2008 annualized EPS of Rs 5.14, by a PE multiple of 9.73.
Elecon Engineering Company’s net sales rose 37.29% to Rs 252.23 crore in Q2 September 2008 over Q2 September 2007.
Earlier today, 17 October 2008, the company announced that it has secured an order worth Rs 17.75 crore from Techpro Systems, Chennai.
Elecon Engineering Company manufactures all kinds of mechanical handling equipment such as bucket elevators, belt conveyors, gravity roller conveyors, bag-filling machines, bag stacking machines, overhead chair conveyors.
Chettinad Cement drops on weak Q2 outcome
Chettinad Cement Corporation declined 2.99% to Rs 469.90 at 13:28 IST on BSE, as net profit declined 32.70% to Rs 34.16 crore in Q2 September 2008 over Q2 September 2007.
The stock hit a high of Rs 469.90 and low of Rs 445 so far during the day. The stock has a 52-week high of Rs 525 on 11 August 2008 and a 52-week low of Rs 345.15 on 22 January 2008.
The stock gained 0.92% to Rs 484.40 on 16 October 208, ahead of the results. From a recent high of Rs 484.20 on 6 October 2008, the stock declined 2.95%.
The company’s current equity is Rs 29.50 crore. Face value per share is Rs 10.
The current price of Rs 469.90 discounts the company’s Q2 September 2008 annualized EPS of Rs 46.32, by a PE multiple of 10.14.
Chettinad Cement Corporation’s net sales rose 20.7% to Rs 283.79 crore in Q2 September 2008 over Q2 September 2007.
On 16 October 2008, the company’s board approved issue of equity shares on rights basis in the ratio of 1:6. The company will raise up Rs 250 crore through the rights issue
The company is engaged in manufacturing and marketing cement including ordinary portland cement and clinker. It also generates power from windmill and captive thermal power plants.
The stock hit a high of Rs 469.90 and low of Rs 445 so far during the day. The stock has a 52-week high of Rs 525 on 11 August 2008 and a 52-week low of Rs 345.15 on 22 January 2008.
The stock gained 0.92% to Rs 484.40 on 16 October 208, ahead of the results. From a recent high of Rs 484.20 on 6 October 2008, the stock declined 2.95%.
The company’s current equity is Rs 29.50 crore. Face value per share is Rs 10.
The current price of Rs 469.90 discounts the company’s Q2 September 2008 annualized EPS of Rs 46.32, by a PE multiple of 10.14.
Chettinad Cement Corporation’s net sales rose 20.7% to Rs 283.79 crore in Q2 September 2008 over Q2 September 2007.
On 16 October 2008, the company’s board approved issue of equity shares on rights basis in the ratio of 1:6. The company will raise up Rs 250 crore through the rights issue
The company is engaged in manufacturing and marketing cement including ordinary portland cement and clinker. It also generates power from windmill and captive thermal power plants.
BHEL slumps to 52-week low
Bharat Heavy Electricals lost 4.11% to Rs 1259 at 12:33 IST on BSE, extending two days' fall on reports rise in raw material cost may hurt margins in the year ended March 2009.
The stock lost 11.74% in two trading days to Rs 1313 on 16 October 2008 from Rs 1487.70 on 14 October 2008 after the company’s Chairman K. Ravi Kumar on 15 October 2008 in an interview to a business news channel told there will be some pressure on margins in the year ended March 2009 as raw material costs are expected to increase by 1%.
The stock hit a 52-week low of Rs 1241.55 in intra-day trade. It hit a high of Rs 1360 so far during the day. The stock has a 52-week high of Rs 2925 on 7 November 2007.
The company’s current equity is Rs 489.52 crore. Face value per share is Rs 10.
The current price of Rs 1259 discounts Q1 June 2008 annualized EPS of Rs 31.41, a PE multiple of 40.08.
The Bhel chairman, however, said the company is confident of achieving 30% growth in revenues in the current financial year. The company will announce its Q2 October 2008 results on 24 October 2008.
The company reported 33.1% rise in net profit to Rs 384.41 crore on 33.9% increase in net sales to Rs 4329.24 crore in Q1 June 2008 over Q1 June 2007.
Bharat Heavy Electricals (Bhel) is engaged in manufacturing and distributing electrical, electronic, and mechanical and nuclear power equipment.
The stock lost 11.74% in two trading days to Rs 1313 on 16 October 2008 from Rs 1487.70 on 14 October 2008 after the company’s Chairman K. Ravi Kumar on 15 October 2008 in an interview to a business news channel told there will be some pressure on margins in the year ended March 2009 as raw material costs are expected to increase by 1%.
The stock hit a 52-week low of Rs 1241.55 in intra-day trade. It hit a high of Rs 1360 so far during the day. The stock has a 52-week high of Rs 2925 on 7 November 2007.
The company’s current equity is Rs 489.52 crore. Face value per share is Rs 10.
The current price of Rs 1259 discounts Q1 June 2008 annualized EPS of Rs 31.41, a PE multiple of 40.08.
The Bhel chairman, however, said the company is confident of achieving 30% growth in revenues in the current financial year. The company will announce its Q2 October 2008 results on 24 October 2008.
The company reported 33.1% rise in net profit to Rs 384.41 crore on 33.9% increase in net sales to Rs 4329.24 crore in Q1 June 2008 over Q1 June 2007.
Bharat Heavy Electricals (Bhel) is engaged in manufacturing and distributing electrical, electronic, and mechanical and nuclear power equipment.
Pyramid Saimira Theatre has acquired a direct-to-home services firm in Europe.
Pyramid Saimira Theatre surged 4.87% to Rs 65.70 at 11:18 IST on BSE on reports a group firm has acquired a direct-to-home services firm in Europe.
The stock hit a high of Rs 71.70 and a low of Rs 64.70 so far during the day. The stock has a 52-week high of Rs 551 on 31 December 2007 and hit a 52-week low of Rs 57.30 on 10 October 2008.
The company’s current equity is Rs 28.28 crore. Face value per share is Rs 10.
The current price of Rs 65.70 discounts its Q1 June 2008 annualized EPS of Rs 19.09, by a PE multiple of 3.44.
As per reports, Spize TV in which the Pyramid Saimira Theatre (PSTL) group holds 51% stake has acquired WorldTV Europe, the direct-to-home (DTH) services subsidiary of France Telecom. PSTL would invest $15 million to integrate the operations of Spize TV and WorldTV, reports suggest
PSTL’s associate company Saimira Access Technologies had earlier this year picked up 51% stake in Spize TV. The balance is owned by Global Asia Partners (GAP) Investments. Spize TV, a registered company in Singapore, launched its operations in 2007 and its DTH platform is called RootsGlobal. WorldTV, a subsidiary of content management and delivery company GlobeCast, is the aggregator and distributor of international television and radio programming in America.
Reports on 14 October 2008 said P. S. Saminathan, one of the promoters plans to buy 24.9% stake in the company from the other two promoters N C Ravichandran and Nirmal Kotecha for around Rs 150 crore. The mode of proposed acquisition will be by a way of inter se transfer of shares. However, the deal will not attract any open offer and the Securities and Exchange Board of India has given a nod for the same.
Pyramid Saimira Theatre’s net profit fell 15.7% to Rs 13.50 crore on 103.9% increase in net sales to Rs 250.15 crore in Q1 June 2008 over Q1 June 2007.
Pyramid Saimira Theatre is focused on distribution and exhibition of films. Its objective is to have presence in all categories of theatres including malls, multiplexes, cineplexes and standalones across the country in tier I, II and III locations.
The stock hit a high of Rs 71.70 and a low of Rs 64.70 so far during the day. The stock has a 52-week high of Rs 551 on 31 December 2007 and hit a 52-week low of Rs 57.30 on 10 October 2008.
The company’s current equity is Rs 28.28 crore. Face value per share is Rs 10.
The current price of Rs 65.70 discounts its Q1 June 2008 annualized EPS of Rs 19.09, by a PE multiple of 3.44.
As per reports, Spize TV in which the Pyramid Saimira Theatre (PSTL) group holds 51% stake has acquired WorldTV Europe, the direct-to-home (DTH) services subsidiary of France Telecom. PSTL would invest $15 million to integrate the operations of Spize TV and WorldTV, reports suggest
PSTL’s associate company Saimira Access Technologies had earlier this year picked up 51% stake in Spize TV. The balance is owned by Global Asia Partners (GAP) Investments. Spize TV, a registered company in Singapore, launched its operations in 2007 and its DTH platform is called RootsGlobal. WorldTV, a subsidiary of content management and delivery company GlobeCast, is the aggregator and distributor of international television and radio programming in America.
Reports on 14 October 2008 said P. S. Saminathan, one of the promoters plans to buy 24.9% stake in the company from the other two promoters N C Ravichandran and Nirmal Kotecha for around Rs 150 crore. The mode of proposed acquisition will be by a way of inter se transfer of shares. However, the deal will not attract any open offer and the Securities and Exchange Board of India has given a nod for the same.
Pyramid Saimira Theatre’s net profit fell 15.7% to Rs 13.50 crore on 103.9% increase in net sales to Rs 250.15 crore in Q1 June 2008 over Q1 June 2007.
Pyramid Saimira Theatre is focused on distribution and exhibition of films. Its objective is to have presence in all categories of theatres including malls, multiplexes, cineplexes and standalones across the country in tier I, II and III locations.
MphasiS on strong Q2 mumbers
MphasiS jumped 4.77% to Rs 186.80 at 10:18 IST on BSE, as net profit surged 44.56% to Rs 112.70 crore in Q2 September 2008 over Q1 June 2008.
The stock hit a high of Rs 193 and low of Rs 180.20 so far during the day. The stock has a 52-week high of Rs 321 on 1 November 2007 and a 52-week low of Rs 119.40 on 10 October 2008.
The company’s current equity is Rs 208.96 crore. Face value per share is Rs 10.
The current price of Rs 186.80 discounts the company’s Q2 September 2008 annualized EPS of Rs 21.58, by a PE multiple of 8.66.
MphasiS’ total income rose 18.27% to Rs 653.93 crore in Q2 September 2008 over Q1 June 2008.
MphasiS’ net profit rose 128.7% to Rs 112.70 crore on 54.6% increase in net sales to Rs 639 crore in Q2 September 2008 over Q2 September 2007.
The accounting period of the company has been changed from April to March to November to October, with effective from 1 November 2008. The books of the company will close at 31 October 2008 for a one-month quarter and seven months year.
The company provides application services, business process outsourcing (BPO) services and infrastructure technology outsourcing (ITO) services.
The stock hit a high of Rs 193 and low of Rs 180.20 so far during the day. The stock has a 52-week high of Rs 321 on 1 November 2007 and a 52-week low of Rs 119.40 on 10 October 2008.
The company’s current equity is Rs 208.96 crore. Face value per share is Rs 10.
The current price of Rs 186.80 discounts the company’s Q2 September 2008 annualized EPS of Rs 21.58, by a PE multiple of 8.66.
MphasiS’ total income rose 18.27% to Rs 653.93 crore in Q2 September 2008 over Q1 June 2008.
MphasiS’ net profit rose 128.7% to Rs 112.70 crore on 54.6% increase in net sales to Rs 639 crore in Q2 September 2008 over Q2 September 2007.
The accounting period of the company has been changed from April to March to November to October, with effective from 1 November 2008. The books of the company will close at 31 October 2008 for a one-month quarter and seven months year.
The company provides application services, business process outsourcing (BPO) services and infrastructure technology outsourcing (ITO) services.
Thursday, October 16, 2008
Tata Steel bounces back
Tata Steel bounced back from 52-week low after its UK unit signed pact for procuring iron ore, a key raw material.
The stock was up 3.20% to Rs 282 at 13:57 IST on BSE, having recovered from the 52-week low of Rs 251.10 which was a fall of 10.95%.
The stock hit a high of Rs 283.70 so far during the day. The stock has a 52-week high of Rs 969.80 on 29 October 2007.
The company’s current equity is Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 282 discounts the company’s Q1 June 2008 annualized EPS of Rs 81.47, by a PE multiple of 3.46.
Tata Steel’s UK subsidiary Corus and Companhia Vale do Rio Doce (Vale) signed a contract, under which Vale will supply around 63 million metric tonnes of iron ore to Corus’ Europe plant for over five years. The contract will come into effect in 2009.
Corus is Europe’s second largest steel producer with annual revenues of more than 12 billion pounds sterling and annual production of about 20 million tonnes.
On 1 October 2008, Tata Steel’s Singapore-based unit agreed to buy 19.9% stake in Canadian miner New Millennium Capital Corporation for $22.6 million.
In August 2008 Tata Steel announced that its overseas unit formed a joint venture with Vietnam Steel Corporation and Vietnam Cement Industries Corporation for a steel complex in Ha Tinh province in Vietnam.
Tata Steel's net profit rose 21.8% to Rs 1,488.40 crore on 46.9% rise in sales to Rs 6,165.03 crore in Q1 June 2008 over Q1 June 2007.
Tata Steel is an integrated steel producer, which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.
The stock was up 3.20% to Rs 282 at 13:57 IST on BSE, having recovered from the 52-week low of Rs 251.10 which was a fall of 10.95%.
The stock hit a high of Rs 283.70 so far during the day. The stock has a 52-week high of Rs 969.80 on 29 October 2007.
The company’s current equity is Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 282 discounts the company’s Q1 June 2008 annualized EPS of Rs 81.47, by a PE multiple of 3.46.
Tata Steel’s UK subsidiary Corus and Companhia Vale do Rio Doce (Vale) signed a contract, under which Vale will supply around 63 million metric tonnes of iron ore to Corus’ Europe plant for over five years. The contract will come into effect in 2009.
Corus is Europe’s second largest steel producer with annual revenues of more than 12 billion pounds sterling and annual production of about 20 million tonnes.
On 1 October 2008, Tata Steel’s Singapore-based unit agreed to buy 19.9% stake in Canadian miner New Millennium Capital Corporation for $22.6 million.
In August 2008 Tata Steel announced that its overseas unit formed a joint venture with Vietnam Steel Corporation and Vietnam Cement Industries Corporation for a steel complex in Ha Tinh province in Vietnam.
Tata Steel's net profit rose 21.8% to Rs 1,488.40 crore on 46.9% rise in sales to Rs 6,165.03 crore in Q1 June 2008 over Q1 June 2007.
Tata Steel is an integrated steel producer, which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.
Monnet Ispat Buyback proposal
Monnet Ispat Energy declined 5.35% to Rs 178.70 at 11:00 IST on BSE, even as the company decided to consider a proposed for buyback of its own shares.
The stock hit a high of Rs 185.50 so far during the day. The stock hit a low of Rs 178 so far during the day, which is 52-week low. The stock has a 52-week high of Rs 710 on 1 January 2008.
The company’s current equity is Rs 49.25 crore. Face value per share is Rs 10.
The current price of Rs 178.70 discounts the company’s Q1 June 2008 annualized EPS of Rs 57.12, by a PE multiple of 3.19.
The company’s board will meet on 23 October 2008 to consider buyback of equity shares of the company through open market purchases.
Monnet Ispat Energy’s net profit surged 52.7% to Rs 70.32 crore on 61.5% increase in net sales to Rs 378.81 crore in Q1 June 2008 over Q1 June 2007.
The company has varied interest ranging from steel, ferro alloys, power and mining.
The stock hit a high of Rs 185.50 so far during the day. The stock hit a low of Rs 178 so far during the day, which is 52-week low. The stock has a 52-week high of Rs 710 on 1 January 2008.
The company’s current equity is Rs 49.25 crore. Face value per share is Rs 10.
The current price of Rs 178.70 discounts the company’s Q1 June 2008 annualized EPS of Rs 57.12, by a PE multiple of 3.19.
The company’s board will meet on 23 October 2008 to consider buyback of equity shares of the company through open market purchases.
Monnet Ispat Energy’s net profit surged 52.7% to Rs 70.32 crore on 61.5% increase in net sales to Rs 378.81 crore in Q1 June 2008 over Q1 June 2007.
The company has varied interest ranging from steel, ferro alloys, power and mining.
Financial Technologies overseas acquisition
Financial Technologies India tumbled 6.41% to Rs 740 at 10:34 IST on BSE, after the company announced an overseas acquisition
The stock hit a high of Rs 760 and a low of Rs 715 so far during the day. The stock has a 52-week high of Rs 2780 on 18 October 2007 and a 52-week low of Rs 650 on 10 October 2008.
The company’s current equity is Rs 9.18 crore. Face value per share is Rs 2.
The current price of Rs 740 discounts the company’s Q1 June 2008 annualized EPS of Rs 148.03, by a PE multiple of 5.
Financial Technologies India has entered into an agreement to acquire 90% stake in based ACE Group, a global credit support organization providing third party asset management, quality assurance and inspection services, for $22.5 million.
In April 2008, Financial Technologies acquired 90% stake in ICX Platform, a technology company situated at Johannesburg, South Africa for a consideration of $1.5 million.
Financial Technologies India’s net profit rose 583.58% to Rs 169.87 crore on 12.02% increase in net sales to Rs 44 crore in Q1 June 2008 over Q4 March 2008.
Financial Technologies India develops software solutions used in online trading terminals. Multi Commodity Exchange of India (MCX), IBS Forex and Tickerplant Infovending are the subsidiaries of the company.
The stock hit a high of Rs 760 and a low of Rs 715 so far during the day. The stock has a 52-week high of Rs 2780 on 18 October 2007 and a 52-week low of Rs 650 on 10 October 2008.
The company’s current equity is Rs 9.18 crore. Face value per share is Rs 2.
The current price of Rs 740 discounts the company’s Q1 June 2008 annualized EPS of Rs 148.03, by a PE multiple of 5.
Financial Technologies India has entered into an agreement to acquire 90% stake in based ACE Group, a global credit support organization providing third party asset management, quality assurance and inspection services, for $22.5 million.
In April 2008, Financial Technologies acquired 90% stake in ICX Platform, a technology company situated at Johannesburg, South Africa for a consideration of $1.5 million.
Financial Technologies India’s net profit rose 583.58% to Rs 169.87 crore on 12.02% increase in net sales to Rs 44 crore in Q1 June 2008 over Q4 March 2008.
Financial Technologies India develops software solutions used in online trading terminals. Multi Commodity Exchange of India (MCX), IBS Forex and Tickerplant Infovending are the subsidiaries of the company.
Concor at 52-week trough after Q2 results
Container Corporation of India declined 3.80% to Rs 670 at 9:56 IST on BSE, despite net profit surging 28.48% to Rs 223.68 crore in Q2 September 2008 over Q2 September 2007.
The stock hit a high of Rs 695 so far during the day. The stock hit a low of Rs 670 so far during the day, which is a 52-week low for the counter. The stock has a 52-week high of Rs 1100 on 29 October 2007.
The stock had tumbled ahead of the results in a weak market. From a recent high of Rs 836.95 on 6 October 2008, the stock declined 16.78% to Rs 696.50 on 15 October 2008.
The company’s current equity is Rs 129.98 crore. Face value per share is Rs 10.
The current price of Rs 670 discounts the company’s Q1 June 2008 annualized EPS of Rs 62.11, by a PE multiple of 10.79.
Container Corporation of India (Concor)’s total income rose 11.23% to Rs 951.37 crore in Q2 September 2008 over Q2 September 2007.
Concor, a central government public sector undertaking under Ministry of Railways, is primarily engaged in container rail transportation business, inland container depot (ICD) operations, warehousing and road transportation. Concor also provides transit warehousing for Exim (export and import) cargo, bonded warehousing and provides air cargo facilities.
The stock hit a high of Rs 695 so far during the day. The stock hit a low of Rs 670 so far during the day, which is a 52-week low for the counter. The stock has a 52-week high of Rs 1100 on 29 October 2007.
The stock had tumbled ahead of the results in a weak market. From a recent high of Rs 836.95 on 6 October 2008, the stock declined 16.78% to Rs 696.50 on 15 October 2008.
The company’s current equity is Rs 129.98 crore. Face value per share is Rs 10.
The current price of Rs 670 discounts the company’s Q1 June 2008 annualized EPS of Rs 62.11, by a PE multiple of 10.79.
Container Corporation of India (Concor)’s total income rose 11.23% to Rs 951.37 crore in Q2 September 2008 over Q2 September 2007.
Concor, a central government public sector undertaking under Ministry of Railways, is primarily engaged in container rail transportation business, inland container depot (ICD) operations, warehousing and road transportation. Concor also provides transit warehousing for Exim (export and import) cargo, bonded warehousing and provides air cargo facilities.
Wednesday, October 15, 2008
Liquidity crunch: MFs put cap on redemption
16 Oct, 2008, 0030 hrs IST,Pooja Meswani & Reena Zachariah, REUTERS
MUMBAI: The liquidity crunch in money markets is exacting a heavy toll on some small fund houses that have been hit by massive redemption pressures. ABN Amro MF has now put a cap on redemption on its long-term FMP schemes. All investors in these schemes can redeem only Rs 1 lakh per folio per day.
“As a short-term measure, the trustees of the mutual fund, in order to safeguard the interest of the investors who want to remain invested till the maturity of the long-term FMPs, today have decided to limit the redemption to 5% of the size of these schemes per day, with a further limit of Rs 1 lakh per investor, per day,” said ABN Amro India-AMC managing director Nikhil Johri.
What is making matters worse for ABN Amro is that its schemes are in the no-load period for a month, due to the recent change in management control. This makes it all the more easy for investors to pull out their funds.
In the offer document (OD), mutual fund houses mention that the trustees can under unforeseen market circumstances limit redemptions temporarily. According to industry players, trustees of many mutual funds have instructed distributors that redemptions for all fixed income schemes should be paid only within 10 days from the date of redemptions.
Another fund that appears to be under stress, according to market sources, is Edelweiss Mutual. The fund has seen the asset size of its maiden liquid scheme launched last month, shrink from Rs 730 crore to nearly Rs 230 crore.
Mirae Asset Management Company, a fund into its second year of operations in India, failed to report the net asset values (NAV) of its two liquid schemes — Mirae Asset Liquid Fund & Mirae Asset Liquid Plus Fund — on October 14. The company refused to comment on the development.
Due to tightness in the money market, the AMC may have found it difficult to sell securities to raise the required amount. Unable to settle accounts at the end of the day, the AMC would not have reported the NAVs of the two schemes.
Experts say in extreme situations, certain securities like government bonds or corporate debt papers may become illiquid. A fund house may not be able to sell securities immediately, and so, cannot raise money to return to investors in the case of higher than usual redemption requests.
As on 30 September, Mirae’s assets stood at about Rs 2,309.8 crore. Of which, close to Rs 1,864 crore is in liquid and liquid-plus funds. Sources say the size of these assets have plunged in the past 10 days, and the fund is now unable to meet redemption requests. The AMC, however, has reported NAVs of both the schemes for October 15.
MUMBAI: The liquidity crunch in money markets is exacting a heavy toll on some small fund houses that have been hit by massive redemption pressures. ABN Amro MF has now put a cap on redemption on its long-term FMP schemes. All investors in these schemes can redeem only Rs 1 lakh per folio per day.
“As a short-term measure, the trustees of the mutual fund, in order to safeguard the interest of the investors who want to remain invested till the maturity of the long-term FMPs, today have decided to limit the redemption to 5% of the size of these schemes per day, with a further limit of Rs 1 lakh per investor, per day,” said ABN Amro India-AMC managing director Nikhil Johri.
What is making matters worse for ABN Amro is that its schemes are in the no-load period for a month, due to the recent change in management control. This makes it all the more easy for investors to pull out their funds.
In the offer document (OD), mutual fund houses mention that the trustees can under unforeseen market circumstances limit redemptions temporarily. According to industry players, trustees of many mutual funds have instructed distributors that redemptions for all fixed income schemes should be paid only within 10 days from the date of redemptions.
Another fund that appears to be under stress, according to market sources, is Edelweiss Mutual. The fund has seen the asset size of its maiden liquid scheme launched last month, shrink from Rs 730 crore to nearly Rs 230 crore.
Mirae Asset Management Company, a fund into its second year of operations in India, failed to report the net asset values (NAV) of its two liquid schemes — Mirae Asset Liquid Fund & Mirae Asset Liquid Plus Fund — on October 14. The company refused to comment on the development.
Due to tightness in the money market, the AMC may have found it difficult to sell securities to raise the required amount. Unable to settle accounts at the end of the day, the AMC would not have reported the NAVs of the two schemes.
Experts say in extreme situations, certain securities like government bonds or corporate debt papers may become illiquid. A fund house may not be able to sell securities immediately, and so, cannot raise money to return to investors in the case of higher than usual redemption requests.
As on 30 September, Mirae’s assets stood at about Rs 2,309.8 crore. Of which, close to Rs 1,864 crore is in liquid and liquid-plus funds. Sources say the size of these assets have plunged in the past 10 days, and the fund is now unable to meet redemption requests. The AMC, however, has reported NAVs of both the schemes for October 15.
Sanwaria Agro Oils strong Q2 numbers
Sanwaria Agro Oils rose 3.47% to Rs 37.30 at 15:07 IST on BSE, as net profit jumped 56.02% to Rs 22.07 crore in Q2 September 2008 over Q2 September 2007.
The company announced the results during trading hours today, 15 October 2008.
The stock hit a high of Rs 39 and a low of Rs 36 so far during the day. The stock has a 52-week high of Rs 55.50 on 23 May 2008 and a 52-week low of Rs 17.06 on 8 November 2007.
The company’s current equity is Rs 17.40 crore. Face value per share is Rs 1.
The current price of Rs 37.30 discounts the company’s Q1 June 2008 annualized EPS of Rs 9.57, by a PE multiple of 3.90.
Sanwaria Agro Oils’ net sales increased 54.93% to Rs 312.21 crore in Q2 September 2008 over Q2 September 2007.
The company is engaged in extracting, refining and trading of soya oil and soyameal. The products include soyabean crude oil, edible oil, soyameal and soya flour. The company is also exploring diversification into production of pollution free bio-diesel from non-edible oils available in India to strengthen national energy security.
The company announced the results during trading hours today, 15 October 2008.
The stock hit a high of Rs 39 and a low of Rs 36 so far during the day. The stock has a 52-week high of Rs 55.50 on 23 May 2008 and a 52-week low of Rs 17.06 on 8 November 2007.
The company’s current equity is Rs 17.40 crore. Face value per share is Rs 1.
The current price of Rs 37.30 discounts the company’s Q1 June 2008 annualized EPS of Rs 9.57, by a PE multiple of 3.90.
Sanwaria Agro Oils’ net sales increased 54.93% to Rs 312.21 crore in Q2 September 2008 over Q2 September 2007.
The company is engaged in extracting, refining and trading of soya oil and soyameal. The products include soyabean crude oil, edible oil, soyameal and soya flour. The company is also exploring diversification into production of pollution free bio-diesel from non-edible oils available in India to strengthen national energy security.
Chettinad Cement Rights issue
Chettinad Cement Corporation gained 1.04% to Rs 475 at 14:36 IST on BSE, after the company said its board will meet on 16 October 2008 to consider issue of equity shares on rights basis.
The company made this announcement during trading hours today, 15 October 2008.
The stock hit a high of Rs 475 and a low of Rs 475 so far during the day. The stock has a 52-week high of Rs 525 on 11 August 2008 and a 52-week low of Rs 345.15 on 11 January 2008.
The company’s current equity is Rs 29.50 crore. Face value per share is Rs 10.
The current price of Rs 475 discounts the company’s Q1 June 2008 annualized EPS of Rs 59.04, by a PE multiple of 8.05.
Chettinad Cement Corporation’s net profit rose 23.9% to Rs 43.54 crore on 41.3% increase in net sales to Rs 282.33 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing and marketing cement including ordinary portland cement and clinker. It also generates power from windmill and captive thermal power plants.
The company made this announcement during trading hours today, 15 October 2008.
The stock hit a high of Rs 475 and a low of Rs 475 so far during the day. The stock has a 52-week high of Rs 525 on 11 August 2008 and a 52-week low of Rs 345.15 on 11 January 2008.
The company’s current equity is Rs 29.50 crore. Face value per share is Rs 10.
The current price of Rs 475 discounts the company’s Q1 June 2008 annualized EPS of Rs 59.04, by a PE multiple of 8.05.
Chettinad Cement Corporation’s net profit rose 23.9% to Rs 43.54 crore on 41.3% increase in net sales to Rs 282.33 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing and marketing cement including ordinary portland cement and clinker. It also generates power from windmill and captive thermal power plants.
ICI India shines on buyback plan
ICI India galloped 9.39% to Rs 478.05 at 14:21 IST on BSE, after the company said on Wednesday, 15 October 2008, its board will meet on 23 October 2008 to consider buyback of equity shares at a price not exceeding Rs 575 a share.
The stock hit a high of Rs 488.80 and a low of Rs 435 so far during the day. The stock has a 52-week high of Rs 678.90 on 1 April 2008 and a 52-week low of Rs 392.95 on 6 October 2008.
The company’s current equity is Rs 38.22 crore. Face value per share is Rs 10.
The current price of Rs 478.05 discounts the company’s Q1 June 2008 annualized EPS of Rs 74.14, by a PE multiple of 6.44.
ICI India’s net profit surged 209.79% to Rs 70.88 crore on 20.98% growth in total income to Rs 290.19 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing and marketing paints, speciality chemicals, rubber chemicals, adhesives & starch. The group's activities are carried out through three segments: paints, chemicals and flavors and fragrances.
The stock hit a high of Rs 488.80 and a low of Rs 435 so far during the day. The stock has a 52-week high of Rs 678.90 on 1 April 2008 and a 52-week low of Rs 392.95 on 6 October 2008.
The company’s current equity is Rs 38.22 crore. Face value per share is Rs 10.
The current price of Rs 478.05 discounts the company’s Q1 June 2008 annualized EPS of Rs 74.14, by a PE multiple of 6.44.
ICI India’s net profit surged 209.79% to Rs 70.88 crore on 20.98% growth in total income to Rs 290.19 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing and marketing paints, speciality chemicals, rubber chemicals, adhesives & starch. The group's activities are carried out through three segments: paints, chemicals and flavors and fragrances.
GAIL India in demand
GAIL India rose 2.58% to Rs 261.80 at 11:24 IST on BSE after broker Morgan Stanley rated it 'overweight', citing the irreplaceable assets of the virtual monopoly.
The stock hit a high of Rs 262.40 and a low of Rs 247 so far during the day. The stock had a 52-week high of Rs 555 on 1 January 2008 and a 52-week low of Rs 225.10 on 10 October 2008.
The large-cap state-run gas distributor has an equity capital of Rs 1268.48 crore. Face value per share is Rs 10.
The current price of Rs 261.80 discounts its Q1 June 2008 annualised EPS of Rs 28.28, by a PE multiple of 9.25.
According to Morgan Stanley, the company is best positioned to take advantage of higher supply of natural gas, which is expected to increase by 150% over the next four years.
GAIL India’s net profit surged 30.9% to Rs 896.87 on 35% increase in sales to Rs 5730.71 crore in Q1 June 2008 over Q1 June 2007.
The company distributes natural gas and processes petrochemicals.
The stock hit a high of Rs 262.40 and a low of Rs 247 so far during the day. The stock had a 52-week high of Rs 555 on 1 January 2008 and a 52-week low of Rs 225.10 on 10 October 2008.
The large-cap state-run gas distributor has an equity capital of Rs 1268.48 crore. Face value per share is Rs 10.
The current price of Rs 261.80 discounts its Q1 June 2008 annualised EPS of Rs 28.28, by a PE multiple of 9.25.
According to Morgan Stanley, the company is best positioned to take advantage of higher supply of natural gas, which is expected to increase by 150% over the next four years.
GAIL India’s net profit surged 30.9% to Rs 896.87 on 35% increase in sales to Rs 5730.71 crore in Q1 June 2008 over Q1 June 2007.
The company distributes natural gas and processes petrochemicals.
Honeywell Automation spurts on strong Q3 results
Honeywell Automation India surged 8.14% to Rs 970 after the company reported 58.20% spurt in net profit to Rs 28.95 crore on 4.89% rise in net sales to Rs 238.21 crore in Q3 September 2008 over Q3 September 2007.
The results were announced after market hours on Tuesday, 14 October 2008.
Meanwhile, the BSE Sensex was down 384.25 points, or 3.33%, to 11,102.95.
On BSE, 1947 shares were traded in the counter. The stock hit a high of Rs 1001 and a low of Rs 910 so far during the day.
Honeywell Automation India's interest cost decreased 48.57% to Rs 0.36 crore while depreciation cost fell 26.67% to Rs 1.54 crore in Q3 September 2008 over Q3 September 2007.
Honeywell Automation India provides integrated automation and software solutions for improving productivity and comfort as well as for ensuring the safety and security of homes and business premises.
The results were announced after market hours on Tuesday, 14 October 2008.
Meanwhile, the BSE Sensex was down 384.25 points, or 3.33%, to 11,102.95.
On BSE, 1947 shares were traded in the counter. The stock hit a high of Rs 1001 and a low of Rs 910 so far during the day.
Honeywell Automation India's interest cost decreased 48.57% to Rs 0.36 crore while depreciation cost fell 26.67% to Rs 1.54 crore in Q3 September 2008 over Q3 September 2007.
Honeywell Automation India provides integrated automation and software solutions for improving productivity and comfort as well as for ensuring the safety and security of homes and business premises.
JSW Steel melts on price cut buzz
JSW Steel plunged 7.89% to Rs 289.55 at 10:41 IST on BSE on reports the company may cut product prices by end-October 2008 in line with a fall in metal prices globally.
The stock hit a high of Rs 302 and low of Rs 285 so far during the day. The stock hit a 52-week high of Rs 1389.70 on 13 December 2007 and 52-week low of Rs 244 on 10 October 2008
The company’s current equity is Rs 187.05 crore. Face value per share is Rs 10.
The current price of Rs 289.55 discounts the company's Q1 June 2008 annualized EPS of Rs 46.91, by a PE multiple of 6.17.
Global steel prices have corrected around 40% from a record high Concerns of a fall in demand amid fears of a global recession. The global financial sector crises has raised fears of a global recession. It may be recalled that JSW Steel had cut flat product prices by Rs 2,000 a tonne in September 2008.
On 10 October 2008 JSW Steel reported 14% growth in net crude steel production to 10.01 lakh tonne in Q2 September 2008 over Q2 September 2007.
In May 2008, JSW Steel entered into joint venture with Toshiba Corp for manufacturing and marketing steam turbines and generators in India.
JSW Steel’s net profit declined 53.2% to Rs 219.35 crore on a 53.9% increase in net sales to Rs 3671.49 crore in Q1 June 2008 over Q1 June 2007.
JSW Steel is part of the O P Jindal Group with interests in mining, carbon steel, power and oxygen.
The stock hit a high of Rs 302 and low of Rs 285 so far during the day. The stock hit a 52-week high of Rs 1389.70 on 13 December 2007 and 52-week low of Rs 244 on 10 October 2008
The company’s current equity is Rs 187.05 crore. Face value per share is Rs 10.
The current price of Rs 289.55 discounts the company's Q1 June 2008 annualized EPS of Rs 46.91, by a PE multiple of 6.17.
Global steel prices have corrected around 40% from a record high Concerns of a fall in demand amid fears of a global recession. The global financial sector crises has raised fears of a global recession. It may be recalled that JSW Steel had cut flat product prices by Rs 2,000 a tonne in September 2008.
On 10 October 2008 JSW Steel reported 14% growth in net crude steel production to 10.01 lakh tonne in Q2 September 2008 over Q2 September 2007.
In May 2008, JSW Steel entered into joint venture with Toshiba Corp for manufacturing and marketing steam turbines and generators in India.
JSW Steel’s net profit declined 53.2% to Rs 219.35 crore on a 53.9% increase in net sales to Rs 3671.49 crore in Q1 June 2008 over Q1 June 2007.
JSW Steel is part of the O P Jindal Group with interests in mining, carbon steel, power and oxygen.
Tata Motors slips after overseas acquisition
Tata Motors slipped 0.30% to Rs 298 at 9:55 IST on BSE, even as the company said its UK unit has acquired 50.3% stake in Norway-based Miljo Grenland/Innovasjon, which specialises in developing solutions for electric vehicles.
The stock hit a high of Rs 298 and a low of Rs 295 so far during the day. The stock has a 52-week high of Rs 810.04 on 29 October 2007 and a 52-week low of Rs 270 on 10 October 2008.
The company’s current equity is Rs 514.29 crore. Face value per share is Rs 10.
The current price of Rs 298 discounts the company’s Q1 June 2008 annualized EPS of Rs 33.82, by a PE multiple of 8.11.
Tata Motors and Miljo will together launch electric vehicle Indica EV in Europe in 2009.
It may be recalled that Tata Motors recently decided to relocate its small car Nano plant to Gujarat from West Bengal due to controversy over acquisition of farm land for the plant in West Bengal.
Tata Motors' commercial vehicles sales rose 6% to 28,648 units in September 2008 over September 2007. Sales of passenger vehicles declined 2.5% to 16,586 units in September 2008 over September 2007.
Tata Motors' rights issue of ordinary and Class A shares priced at Rs 340 and Rs 305 respectively, opened for subscription on 29 September 2008. The issue will close on 20 October 2008. The rights issue is for part funding its $2.3 billion Jaguar-Land Rover deal.
Tata Motors' net profit fell 30.1% to Rs 326.11 crore on a 14.40% increase in net sales to Rs 6928.44 crore in Q1 June 2008 over Q1 June 2007.
Tata Motors is engaged in manufacturing and marketing heavy, medium and light commercial vehicles, utility vehicles and passenger cars.
The stock hit a high of Rs 298 and a low of Rs 295 so far during the day. The stock has a 52-week high of Rs 810.04 on 29 October 2007 and a 52-week low of Rs 270 on 10 October 2008.
The company’s current equity is Rs 514.29 crore. Face value per share is Rs 10.
The current price of Rs 298 discounts the company’s Q1 June 2008 annualized EPS of Rs 33.82, by a PE multiple of 8.11.
Tata Motors and Miljo will together launch electric vehicle Indica EV in Europe in 2009.
It may be recalled that Tata Motors recently decided to relocate its small car Nano plant to Gujarat from West Bengal due to controversy over acquisition of farm land for the plant in West Bengal.
Tata Motors' commercial vehicles sales rose 6% to 28,648 units in September 2008 over September 2007. Sales of passenger vehicles declined 2.5% to 16,586 units in September 2008 over September 2007.
Tata Motors' rights issue of ordinary and Class A shares priced at Rs 340 and Rs 305 respectively, opened for subscription on 29 September 2008. The issue will close on 20 October 2008. The rights issue is for part funding its $2.3 billion Jaguar-Land Rover deal.
Tata Motors' net profit fell 30.1% to Rs 326.11 crore on a 14.40% increase in net sales to Rs 6928.44 crore in Q1 June 2008 over Q1 June 2007.
Tata Motors is engaged in manufacturing and marketing heavy, medium and light commercial vehicles, utility vehicles and passenger cars.
Monday, October 13, 2008
Nobel Economics prize -- Who is Paul Krugman?
Nobel Economics prize -- Who is Paul Krugman?
Mon, Oct 13 05:33 PM
Reuters - American economist Paul Krugman on Monday won the 2008 Nobel prize for economics for work that helps explain why some countries dominate international trade.
Here are some key facts on the winner and the prize:
* The Royal Swedish Academy of Sciences said the prize recognised Krugman's formulation of a new theory to answer questions such as what is driving worldwide urbanisation.
* Krugman's work has integrated the previously disparate research fields of international trade and economic geography, the prize committee said.
* His new theory sheds light on why global trade is dominated by countries that not only have similar conditions, but also trade in similar products.
* Krugman has criticised the administration of President George W. Bush for policies that he argues led to the current financial crisis.
* Krugman's theories have helped explain how self-reinforcing processes of urbanisation and increased large-scale production, as well as higher real wages and a more diverse supply of goods, can combine to divide regions into a high-technology urbanized core and a less developed periphery.
* Krugman was born in New York City in 1953 and received a PhD at the Massachusetts Institute of Technology.
* He has been professor of economics and international affairs at Princeton University, New Jersey, since 2000.
* Krugman has written for publications such as the New York Times and Foreign Affairs and is the author of 20 books and more than 200 papers in professional journals.
* He has also taught at Yale, MIT and Stanford University.
* His current work centres on economic and currency crises.
Sources: Reuters/www.nobel.org/
Core Projects and Technologies slumps 70% in two trading sessions
Core Projects and Technologies slumped 46% to Rs 74 at 14:03 IST on BSE, tumbling for the third session in a row on market talk that shares pledged by some investors were offloaded after margin calls were unmet.
Core Projects had tanked 43.7% to Rs 141 on Friday, 10 October 2008. The stock has corrected 70.38% in two trading sessions from Rs 249.85 on 8 October 2008.
The stock hit a high of Rs 164 and a low of Rs 69.90 so far during the day. The stock had a 52-week high of Rs 464.40 on 28 December 2007 and a 52-week low of Rs 122 on 10 October 2008.
The mid-cap software-solutions provider has an equity capital of Rs 17.25 crore. Face value per share is Rs 2.
The current price of Rs 74 discounts its Q1 June 2008 annualised EPS of Rs 6.42, by a PE multiple of 11.52.
According to a report, some high net worth individuals (HNIs) had borrowed money from a couple of non-banking financial companies (NBFCs) by pledging their shares.
Reports quoted a Core Projects spokesperson as saying that the company was unaware of any margin calls. However, in his opinion, the steep fall in the stock price was perhaps due to liquidation of shares, which rose out of the conversion of foreign currency convertible bond (FCCBs). The company had issued FCCBs worth $80 million in May last year, with a conversion price of Rs 167.
A total of 16.75 lakh shares were converted out of these FCCBs in the past one month, the report added.
Core Projects and Technologies’ net profit fell 4% to Rs 13.32 crore on a 25.70% rise in sales to Rs 64.90 crore in Q1 June 2008 over Q4 March 2008.
Core Projects & Technologies provides information technology products and services. The company provides services including onsite and offsite consulting and knowledge management services, systems integration, global postioning system based vehicle tracking and detection systems, application support for their products, and offshore outsourcing.
Core Projects had tanked 43.7% to Rs 141 on Friday, 10 October 2008. The stock has corrected 70.38% in two trading sessions from Rs 249.85 on 8 October 2008.
The stock hit a high of Rs 164 and a low of Rs 69.90 so far during the day. The stock had a 52-week high of Rs 464.40 on 28 December 2007 and a 52-week low of Rs 122 on 10 October 2008.
The mid-cap software-solutions provider has an equity capital of Rs 17.25 crore. Face value per share is Rs 2.
The current price of Rs 74 discounts its Q1 June 2008 annualised EPS of Rs 6.42, by a PE multiple of 11.52.
According to a report, some high net worth individuals (HNIs) had borrowed money from a couple of non-banking financial companies (NBFCs) by pledging their shares.
Reports quoted a Core Projects spokesperson as saying that the company was unaware of any margin calls. However, in his opinion, the steep fall in the stock price was perhaps due to liquidation of shares, which rose out of the conversion of foreign currency convertible bond (FCCBs). The company had issued FCCBs worth $80 million in May last year, with a conversion price of Rs 167.
A total of 16.75 lakh shares were converted out of these FCCBs in the past one month, the report added.
Core Projects and Technologies’ net profit fell 4% to Rs 13.32 crore on a 25.70% rise in sales to Rs 64.90 crore in Q1 June 2008 over Q4 March 2008.
Core Projects & Technologies provides information technology products and services. The company provides services including onsite and offsite consulting and knowledge management services, systems integration, global postioning system based vehicle tracking and detection systems, application support for their products, and offshore outsourcing.
Mastek on strong revenue guidance for FY 2009
Mastek gained 10.92% to Rs 229 at 10:05 IST on BSE, even as the company posted 17.06% fall in net profit to Rs 26.15 crore in Q1 September 2008 over Q4 June 2008.
The stock hit a high of Rs 229 and a low of Rs 210 so far during the day. The stock has a 52-week high of Rs 419 on 12 October 2007 and a 52-week low of Rs 193 on 10 October 2008.
The company’s current equity is Rs 13.81 crore. Face value per share is Rs 5.
The current price of Rs 229 discounts the company’s Q1 September 2008 annualized EPS of Rs 38.88, by a PE multiple of 5.89.
Mastek’s net sales fell 1.31% to Rs 156.74 crore in Q1 September 2008 over Q4 June 2008.
The company’s net profit surged 54.28% to Rs 26.15 crore on 11.8% increase in net sales to Rs 156.74 crore in Q1 September 2008 over Q1 September 2007.
Mastek said it it expects to deliver 32% to 34% growth in total income in rupee terms in the year ending June 2009. The company also said the impact of the prevailing macroeconomic environment on it is expected to be limited given that it derives most of its revenue from relatively stable verticals.
Mastek said its 12-month order book grew 11% to Rs 505 crore as of 30 September 2008.
On 6 October 2008, Mastek’s overseas unit MajescoMastek implemented STG billing and accounts receivable solution at Farmers Alliance Companies of Kansas in US.
Mastek is an information technology (IT) player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide.
The stock hit a high of Rs 229 and a low of Rs 210 so far during the day. The stock has a 52-week high of Rs 419 on 12 October 2007 and a 52-week low of Rs 193 on 10 October 2008.
The company’s current equity is Rs 13.81 crore. Face value per share is Rs 5.
The current price of Rs 229 discounts the company’s Q1 September 2008 annualized EPS of Rs 38.88, by a PE multiple of 5.89.
Mastek’s net sales fell 1.31% to Rs 156.74 crore in Q1 September 2008 over Q4 June 2008.
The company’s net profit surged 54.28% to Rs 26.15 crore on 11.8% increase in net sales to Rs 156.74 crore in Q1 September 2008 over Q1 September 2007.
Mastek said it it expects to deliver 32% to 34% growth in total income in rupee terms in the year ending June 2009. The company also said the impact of the prevailing macroeconomic environment on it is expected to be limited given that it derives most of its revenue from relatively stable verticals.
Mastek said its 12-month order book grew 11% to Rs 505 crore as of 30 September 2008.
On 6 October 2008, Mastek’s overseas unit MajescoMastek implemented STG billing and accounts receivable solution at Farmers Alliance Companies of Kansas in US.
Mastek is an information technology (IT) player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide.
Post-Market Commentary. Monday, October 13, 2008
Mkt recover on FM comments, positive global cues
The BSE Sensex recovered 781.24 points today. It had tanked 2,527.81 points or 19.36% to 10,527.85 on 10 October 2008 from a recent high of 13,055.67 on 1 October 2008. Finance minister P Chidambaram's statement that the government was working on more measures to infuse liquidity in the banking system and increase the confidence of depositors and investors, aided the rebound in equities today.
The S&P CNX Nifty was up 210.75 points or 6.43% to 3,490.70.
As per the provisional figures on BSE, the foreign intitutional investors (FII)s sold shares worth Rs 1060.60 crore today, 13 October 2008 while domestic funds bought shares worth Rs 582.31 crore.
Finance Minister P Chidambaram today said the Indian economy continues to grow at a satisfactory rate. The finance minister also said the slide in commodity and crude oil prices will have a beneficial impact on inflation. He said the Indian services sector is growing at a brisk rate. He said the ratio of investments to GDP remains high. The ratio was above 35% in Q1 June 2008.
The Reserve Bank of India chief Duvvuri Subbarao on Friday, 10 October 2008 said that India may escape the worst consequences of the global financial crisis due to its strong internal drivers for growth but money, debt and credit markets may be impacted indirectly.
The BSE Sensex recovered 781.24 points today. It had tanked 2,527.81 points or 19.36% to 10,527.85 on 10 October 2008 from a recent high of 13,055.67 on 1 October 2008. Finance minister P Chidambaram's statement that the government was working on more measures to infuse liquidity in the banking system and increase the confidence of depositors and investors, aided the rebound in equities today.
The S&P CNX Nifty was up 210.75 points or 6.43% to 3,490.70.
As per the provisional figures on BSE, the foreign intitutional investors (FII)s sold shares worth Rs 1060.60 crore today, 13 October 2008 while domestic funds bought shares worth Rs 582.31 crore.
Finance Minister P Chidambaram today said the Indian economy continues to grow at a satisfactory rate. The finance minister also said the slide in commodity and crude oil prices will have a beneficial impact on inflation. He said the Indian services sector is growing at a brisk rate. He said the ratio of investments to GDP remains high. The ratio was above 35% in Q1 June 2008.
The Reserve Bank of India chief Duvvuri Subbarao on Friday, 10 October 2008 said that India may escape the worst consequences of the global financial crisis due to its strong internal drivers for growth but money, debt and credit markets may be impacted indirectly.
Sunday, October 12, 2008
MFs turn to central bank amid cash crunch
12 Oct, 2008, 1440 hrs IST, REUTERS
MUMBAI: India's mutual funds have asked the central bank to lend them short-term cash via a repurchase facility after the global financial crisis virtually paralysed the country's money markets, fund executives said.
The Reserve Bank of India is considering the proposal to let mutual funds deposit some of the short-term bank debt they hold with the central bank in exchange for cash, said four senior executives, who are involved in talks with the central bank and declined to be named.
Central bank repurchase facilities are normally only open to banks and primary dealers. The central bank's spokeswoman said she could not immediately comment.
Mutual funds would normally sell bank debt on the money market to raise cash to meet redemptions, which should have risen in September as customers pulled out money for quarterly tax payments.
But Indian money markets have been hit by the global financial crisis, which has wrecked banks across the United States and Europe and made lenders around the world wary of dealing with each other.
The cost of overnight borrowing on the interbank market jumped to a 19-month high of 23 percent on Friday, more than double the central bank's short-term lending rate of 9 percent.
The central bank has tried to ease the liquidity squeeze and the executives said it would only agree to the mutual funds' request if the money markets failed to thaw.
The central bank lowered the proportion of deposits banks must keep in their vaults by 150 basis points from Saturday, adding 600 billion rupees ($12.4 billion) to the amount of cash available for lending.
The stock market regulator, the Securities and Exchange Board of India, has asked mutual funds to give details of their holdings of certificates of deposits (CDs), short-term debt sold by banks. This data would be used by the Reserve Bank of India to assess the request for access to the repo facility, the executives said.
"That seems to be the final objective in mind," one of them, a chief executive of an Indian mutual fund house, said.
Waning appetite
CD issuance has ballooned this year as banks scrambled to raise funds to feed demand for credit. Mutual funds have bought them, attracted by returns. Central bank data shows outstanding CDs at the end of August totalled 1.71 trillion rupees, up nearly 40 percent from the start of the year.
But appetite for CDs is waning and cost of borrowing for three months by selling certificates of deposit has jumped to as high as 14 percent compared with between 10 and 11 percent a month earlier, two money market dealers said on Saturday.
That spells trouble for mutual funds at a time of rising redemptions. Customers pulled a net 43 billion rupees out of liquid mutual funds in August after investing a net 630 million the previous month, according to the Association of Mutual Funds in India. The association has yet to release figures for September, when withdrawals typically rise due to quarterly tax payments.
Foreign funds are bailing out of the tumbling stock market, driving the rupee to a record low against the dollar. The central bank is buying rupees to support the currency, exacerbating the cash shortage.
The government has also yet to disburse cash for planned spending, something which would normally boost cash supply in the banking system. To try to the thaw out the market and prod banks into lending to each other, the central bank injected a record of 920 billion rupees in its repo operation on Friday.
Liquid funds managed 891.2 billion rupees at the end of August and accounted for 16.37 percent of the total industry's holdings, Association of Mutual Funds in India data shows.
MUMBAI: India's mutual funds have asked the central bank to lend them short-term cash via a repurchase facility after the global financial crisis virtually paralysed the country's money markets, fund executives said.
The Reserve Bank of India is considering the proposal to let mutual funds deposit some of the short-term bank debt they hold with the central bank in exchange for cash, said four senior executives, who are involved in talks with the central bank and declined to be named.
Central bank repurchase facilities are normally only open to banks and primary dealers. The central bank's spokeswoman said she could not immediately comment.
Mutual funds would normally sell bank debt on the money market to raise cash to meet redemptions, which should have risen in September as customers pulled out money for quarterly tax payments.
But Indian money markets have been hit by the global financial crisis, which has wrecked banks across the United States and Europe and made lenders around the world wary of dealing with each other.
The cost of overnight borrowing on the interbank market jumped to a 19-month high of 23 percent on Friday, more than double the central bank's short-term lending rate of 9 percent.
The central bank has tried to ease the liquidity squeeze and the executives said it would only agree to the mutual funds' request if the money markets failed to thaw.
The central bank lowered the proportion of deposits banks must keep in their vaults by 150 basis points from Saturday, adding 600 billion rupees ($12.4 billion) to the amount of cash available for lending.
The stock market regulator, the Securities and Exchange Board of India, has asked mutual funds to give details of their holdings of certificates of deposits (CDs), short-term debt sold by banks. This data would be used by the Reserve Bank of India to assess the request for access to the repo facility, the executives said.
"That seems to be the final objective in mind," one of them, a chief executive of an Indian mutual fund house, said.
Waning appetite
CD issuance has ballooned this year as banks scrambled to raise funds to feed demand for credit. Mutual funds have bought them, attracted by returns. Central bank data shows outstanding CDs at the end of August totalled 1.71 trillion rupees, up nearly 40 percent from the start of the year.
But appetite for CDs is waning and cost of borrowing for three months by selling certificates of deposit has jumped to as high as 14 percent compared with between 10 and 11 percent a month earlier, two money market dealers said on Saturday.
That spells trouble for mutual funds at a time of rising redemptions. Customers pulled a net 43 billion rupees out of liquid mutual funds in August after investing a net 630 million the previous month, according to the Association of Mutual Funds in India. The association has yet to release figures for September, when withdrawals typically rise due to quarterly tax payments.
Foreign funds are bailing out of the tumbling stock market, driving the rupee to a record low against the dollar. The central bank is buying rupees to support the currency, exacerbating the cash shortage.
The government has also yet to disburse cash for planned spending, something which would normally boost cash supply in the banking system. To try to the thaw out the market and prod banks into lending to each other, the central bank injected a record of 920 billion rupees in its repo operation on Friday.
Liquid funds managed 891.2 billion rupees at the end of August and accounted for 16.37 percent of the total industry's holdings, Association of Mutual Funds in India data shows.
Satyam banned by world bank
NEW YORK: Software major Satyam Computer Services has reportedly been banned from doing any off-shore work with the World Bank after forensic experts and bank investigators discovered that spy software was covertly installed on workstations inside the bank's Washington headquarters, allegedly by one or more contractors from Satyam Computer Services.
According to a FOX News report, apart from Satyam, two IP intrusions have been reported from China, and there have been six intrusions in all.
Investigators say that the software, which operates through a method known as keystroke logging, enabled every character typed on a keyboard to be transmitted to a still-unknown location via the Internet.
Upon its discovery, bank officials shut off the data link between Washington and Chennai, where Satyam has long operated the bank's sole offshore computer center responsible for all of the bank's financial and human resources information.
"I want them off the premises now," World Bank President Robert Zoellick reportedly told his deputies. But at the urging of CIO De Poerck, Satyam employees remained at the bank as recently as October 1 while it engaged in "knowledge transfer" with two new India-based contractors.
Satyam is publicly listed on the New York Stock Exchange and boasts having two billion dollars in sales and more than 150 Fortune 500 companies as clients.
In 2003, Satyam won a lucrative five-year "sole source" contract to design, write and maintain all of the World Bank's information systems. The contract, which began at $10 million, had grown to over $100 million by 2007. This year, the contract was not renewed. Satyam has declined to comment.
FOX News claims that outsiders have raided the World Bank Group's computer network, one of the largest repositories of sensitive data about the economies of every nation, repeatedly for more than a year.
It is still not known how much information was stolen. But sources inside the bank confirm that servers in the institution's highly restricted treasury unit were deeply penetrated with spy software last April. Invaders also had full access to the rest of the bank's network for nearly a month in June and July.
The crisis comes at an awkward moment for Zoellick, who runs the world's largest and most influential anti-poverty agency, which doles out $25 billion a year, and whose board represents 185 member nations.
This weekend, the bank holds its annual series of meetings in Washington, and just in advance of those sessions, Zoellick called for a radical revamping of multilateral organizations in light of the global economic meltdown.
Zoellick is positioning himself and the bank as an institution that can help chart a new path toward global financial stability. But that reputation, more than ever, depends on the bank's stable information infrastructure.
According to internal memos, "a minimum of 18 servers has been compromised," including some of the bank's most sensitive systems, ranging from the bank's security and password server to a Human Resources server "that contains scanned images of staff documents."
One World Bank director told FOX News that as many as 40 servers have been penetrated, including one that held contract-procurement data. It took ten days for bank officials to detect that they'd been invaded. Once they did, they shut down all external servers, except for e-mail, which it turns out the invaders were already using as their entrance point.
A World Bank spokesman, however, rubbished the Fox News story, saying it is riddled with falsehoods and errors.
http://infotech.indiatimes.com/News/Satyam_banned_from_World_Bank/articleshow/3583701.cms
According to a FOX News report, apart from Satyam, two IP intrusions have been reported from China, and there have been six intrusions in all.
Investigators say that the software, which operates through a method known as keystroke logging, enabled every character typed on a keyboard to be transmitted to a still-unknown location via the Internet.
Upon its discovery, bank officials shut off the data link between Washington and Chennai, where Satyam has long operated the bank's sole offshore computer center responsible for all of the bank's financial and human resources information.
"I want them off the premises now," World Bank President Robert Zoellick reportedly told his deputies. But at the urging of CIO De Poerck, Satyam employees remained at the bank as recently as October 1 while it engaged in "knowledge transfer" with two new India-based contractors.
Satyam is publicly listed on the New York Stock Exchange and boasts having two billion dollars in sales and more than 150 Fortune 500 companies as clients.
In 2003, Satyam won a lucrative five-year "sole source" contract to design, write and maintain all of the World Bank's information systems. The contract, which began at $10 million, had grown to over $100 million by 2007. This year, the contract was not renewed. Satyam has declined to comment.
FOX News claims that outsiders have raided the World Bank Group's computer network, one of the largest repositories of sensitive data about the economies of every nation, repeatedly for more than a year.
It is still not known how much information was stolen. But sources inside the bank confirm that servers in the institution's highly restricted treasury unit were deeply penetrated with spy software last April. Invaders also had full access to the rest of the bank's network for nearly a month in June and July.
The crisis comes at an awkward moment for Zoellick, who runs the world's largest and most influential anti-poverty agency, which doles out $25 billion a year, and whose board represents 185 member nations.
This weekend, the bank holds its annual series of meetings in Washington, and just in advance of those sessions, Zoellick called for a radical revamping of multilateral organizations in light of the global economic meltdown.
Zoellick is positioning himself and the bank as an institution that can help chart a new path toward global financial stability. But that reputation, more than ever, depends on the bank's stable information infrastructure.
According to internal memos, "a minimum of 18 servers has been compromised," including some of the bank's most sensitive systems, ranging from the bank's security and password server to a Human Resources server "that contains scanned images of staff documents."
One World Bank director told FOX News that as many as 40 servers have been penetrated, including one that held contract-procurement data. It took ten days for bank officials to detect that they'd been invaded. Once they did, they shut down all external servers, except for e-mail, which it turns out the invaders were already using as their entrance point.
A World Bank spokesman, however, rubbished the Fox News story, saying it is riddled with falsehoods and errors.
http://infotech.indiatimes.com/News/Satyam_banned_from_World_Bank/articleshow/3583701.cms
Saturday, October 11, 2008
Fixed income MFs witnessing major turmoil
11 Oct, 2008, 2020 hrs IST,Gaurav Pai, ET Bureau
MUMBAI: Fixed income mutual funds, the engine which fuelled the growth of the Indian mutual fund industry for a long time now, are now witnessing their first major turmoil.
Stunned by the turbulence in the global financial markets and with concerns emerging relating to the asset quality on the portfolio of local fund houses, institutional investors are pulling out of their investments from these funds. In fact, broking industry officials said two leading fund houses had to face heavy withdrawals in the past couple of sessions that led to their net asset values slipping into the red.
This development comes in the wake of capital market regulator SEBI directing all fund houses to furnish details about the inflows, outflows, break-up of certain assets among others. Fund houses under the aegis of Amfi, a trade body of all MFs, have now approached SEBI for help in tiding over this grave liquidity crisis. Indications are that banks may be nudged by policy makers to offer credit lines to desperate fund houses.
Over the past few years, fixed income funds have come to account for more than two-thirds of the industry’s assets, aggregating close to Rs 5.5-lakh crore. These mainly consist of liquid funds (shortest duration and supposedly highest liquidity), liquid-plus funds (slightly longer duration) and fixed maturity plans (closed-ended funds of pre-announced tenure).
But with credit derivatives market in America in a mess, investors have increasingly become sceptical about the credit quality of assets in fixed income funds. So, while fund managers have been trying to calm tempers saying the portfolio of Indian MFs remains satisfactory, investors have been rushing to reclaim their monies. With the tightening of liquidity, this redemption process has become a real challenge for fund managers.
According to data obtained from independent research sources (Kotak Mahindra bank, Reliance Money, Yes Bank) the NAV of the liquid-plus scheme of Franklin Templeton fell by 26% on Wednesday. Broking officials said this could have been due to redemptions, prompting the fund house to sell its investments at a discount in the market. But Templeton denied this claim. “The NAV of a liquid fund is dependent on the movement in bond market yields. The recent sharp tightness in systemic liquidity has pushed short-term yields up sharply,” Franklin Templeton Investments CIO (Fixed Income) Santosh Kamath said while explaining the negative movement in its NAVs.
One of DSP Merrill’s liquid-plus schemes also shed 5% of its NAV on Wednesday. In the race to spruce up their returns, fund houses have increasingly taken recourse to investing in illiquid papers and securities of longer duration (something that liquid funds are not supposed to invest in.) When redemptions set in, exiting either of these will become an issue and they will have to sell assets at a discount, thus starting a vicious cycle.
Via:E.T
MUMBAI: Fixed income mutual funds, the engine which fuelled the growth of the Indian mutual fund industry for a long time now, are now witnessing their first major turmoil.
Stunned by the turbulence in the global financial markets and with concerns emerging relating to the asset quality on the portfolio of local fund houses, institutional investors are pulling out of their investments from these funds. In fact, broking industry officials said two leading fund houses had to face heavy withdrawals in the past couple of sessions that led to their net asset values slipping into the red.
This development comes in the wake of capital market regulator SEBI directing all fund houses to furnish details about the inflows, outflows, break-up of certain assets among others. Fund houses under the aegis of Amfi, a trade body of all MFs, have now approached SEBI for help in tiding over this grave liquidity crisis. Indications are that banks may be nudged by policy makers to offer credit lines to desperate fund houses.
Over the past few years, fixed income funds have come to account for more than two-thirds of the industry’s assets, aggregating close to Rs 5.5-lakh crore. These mainly consist of liquid funds (shortest duration and supposedly highest liquidity), liquid-plus funds (slightly longer duration) and fixed maturity plans (closed-ended funds of pre-announced tenure).
But with credit derivatives market in America in a mess, investors have increasingly become sceptical about the credit quality of assets in fixed income funds. So, while fund managers have been trying to calm tempers saying the portfolio of Indian MFs remains satisfactory, investors have been rushing to reclaim their monies. With the tightening of liquidity, this redemption process has become a real challenge for fund managers.
According to data obtained from independent research sources (Kotak Mahindra bank, Reliance Money, Yes Bank) the NAV of the liquid-plus scheme of Franklin Templeton fell by 26% on Wednesday. Broking officials said this could have been due to redemptions, prompting the fund house to sell its investments at a discount in the market. But Templeton denied this claim. “The NAV of a liquid fund is dependent on the movement in bond market yields. The recent sharp tightness in systemic liquidity has pushed short-term yields up sharply,” Franklin Templeton Investments CIO (Fixed Income) Santosh Kamath said while explaining the negative movement in its NAVs.
One of DSP Merrill’s liquid-plus schemes also shed 5% of its NAV on Wednesday. In the race to spruce up their returns, fund houses have increasingly taken recourse to investing in illiquid papers and securities of longer duration (something that liquid funds are not supposed to invest in.) When redemptions set in, exiting either of these will become an issue and they will have to sell assets at a discount, thus starting a vicious cycle.
Via:E.T
Forex reserves fall; bank credit rises
The country’s forex kitty got lighter by nearly $8 billion in a single week.
The reserves have been dwindling for the past few weeks following sustained FII outflows from the domestic equity market. This coupled with selling of dollars by the Reserve Bank of India, took the forex reserves down by more than $1 billion in the last one month.
According to figures released by the RBI on Friday, forex reserves plunged by $7.87 billion to touch $283.941 billion for the week ended October 3.
The fall could be partly attributed to dollar selling by the RBI in the forex markets to stabilise the rupee, said Mr Ashish Parthasarathy, Deputy treasurer, HDFC.
In the previous week, reserves had decreased by $153 million to touch $291.819 billion.
According to the figures released by the Securities and Exchange Board of India, foreign institutional investors have been net sellers in the equity markets to the tune of Rs 416.80 crore for the week ended October 3, which also led to the decline in forex reserves, said dealers.
Foreign currency assets decreased by $7.741 billion to $274.911 billion. Gold reserves decreased by $127 million to $8.565 billion, while SDRs were unchanged at $4 million.
Credit growth
Despite the talk of the fund crunch , total bank credit for the fortnight ended September 26 grew by Rs 51,219 crore, to touch Rs 25,42,467 crore, according to the RBI figures.
Of this, non-food credit grew by Rs 51,234 crore to Rs 24,97,292 crore, while food credit fell by Rs 15 crore to Rs 45,175 crore.
Bank credit grew by 24 per over the previous year, which is above the RBI’s target of 20 per cent.
For the same fortnight, aggregate deposits grew by Rs 36,761 crore to touch Rs 34,42,138 crore. The growth in deposits is 19.8 per cent over the previous year.
According to a senior official from a leading public sector bank, the increase in credit could be attributed to the fertiliser subside disbursal, which was committed earlier. Oil companies were also borrowing from banks and rolling over the money, he said.
via:B.L
The reserves have been dwindling for the past few weeks following sustained FII outflows from the domestic equity market. This coupled with selling of dollars by the Reserve Bank of India, took the forex reserves down by more than $1 billion in the last one month.
According to figures released by the RBI on Friday, forex reserves plunged by $7.87 billion to touch $283.941 billion for the week ended October 3.
The fall could be partly attributed to dollar selling by the RBI in the forex markets to stabilise the rupee, said Mr Ashish Parthasarathy, Deputy treasurer, HDFC.
In the previous week, reserves had decreased by $153 million to touch $291.819 billion.
According to the figures released by the Securities and Exchange Board of India, foreign institutional investors have been net sellers in the equity markets to the tune of Rs 416.80 crore for the week ended October 3, which also led to the decline in forex reserves, said dealers.
Foreign currency assets decreased by $7.741 billion to $274.911 billion. Gold reserves decreased by $127 million to $8.565 billion, while SDRs were unchanged at $4 million.
Credit growth
Despite the talk of the fund crunch , total bank credit for the fortnight ended September 26 grew by Rs 51,219 crore, to touch Rs 25,42,467 crore, according to the RBI figures.
Of this, non-food credit grew by Rs 51,234 crore to Rs 24,97,292 crore, while food credit fell by Rs 15 crore to Rs 45,175 crore.
Bank credit grew by 24 per over the previous year, which is above the RBI’s target of 20 per cent.
For the same fortnight, aggregate deposits grew by Rs 36,761 crore to touch Rs 34,42,138 crore. The growth in deposits is 19.8 per cent over the previous year.
According to a senior official from a leading public sector bank, the increase in credit could be attributed to the fertiliser subside disbursal, which was committed earlier. Oil companies were also borrowing from banks and rolling over the money, he said.
via:B.L
How much more can FIIs sell
Largest inflow of $36 b came in 2004-05.
Mumbai, Oct. 10 FII investments in Indian equities, from the time they commenced buying in India, has amounted to $56 billion as on Friday, SEBI data showed.
The value of this investment on Friday would not be $56 billion, of course, but how much of this is likely to be sold, marketmen were wondering. On this hinges the fate of Indian stocks in the near future.
More on cards?
Going by the FII investment figures (see table) it is possible that another $7 billion to $8 billion in equities could be shed by them, estimate analysts. FIIs have already sold equities worth more than $10 billion in 2008.
Taking October as the base month, the largest increase in FII investment was between 2004 and 2005, when net buys by FIIs rose by $36 billion. But the Sensex was at 8,483 in October 2005 and FIIs are likely to hold on to those investments, said an analyst. Of course, this is a crude way of calculating as one does not know how much of those investments they have sold to re-enter the market, but it is a rough indication on what is to come, said one analyst.
The next large chunk of investments came in 2006-2007 (October) amounting to nearly $18 billion. In October 2007 the Sensex was above 18,800, much higher than now.
It is this $18 billion of investments that FIIs they are likely to offload first to cut losses, said the analyst.
“They would calculate on a last-in, first-out basis. What they had invested in 2004-05 has still gained enormously from what the Sensex levels were then.”
By this estimation, at least another $8 billion can be sold by FIIs, he said.
Uncertainty
Mr Motilal Oswal, Chairman & Managing Director, Motilal Oswal Financial Services, was of the opinion that little can be said when one could not predict what would happen overseas. “But there are some long-term investors among FIIs too, entities like pension funds and so on who are not likely to sell too quickly.”
Thursday, October 9, 2008
U.S. National Debt Clock runs out of digits
NEW YORK: Such is the surge in America’s debt that even technology is finding it difficult to measure its level as a clock earmarked for keeping a tab on the country’s national debt has run out of digits.
The operator of the National Debt Clock, installed at Times Square in New York, has now dropped the dollar sign in the total figure to accommodate a ten trillion dollar figure.
A replacement for the clock with two additional digits that would be able to account for up to a quadrillion (million billion) dollars of debt is expected only by the next year.
The existing clock can accommodate up to 9,999,999,999,999 dollars (just one dollar short of $10-trillion) of debt with a dollar sign ($) preceding it, but the clock has started showing the figure without the dollar sign after the debt level recently reached the 10-trillion dollar level.
At the last check, the clock showed the United States’ total national debt at about 10,250,000,000,000 dollars ($10.25 trillion). With an estimated population of about 305 million, this results into an average debt of close to $34,000 for every U.S. citizen.
The clock is said to have been first installed in 1989 when the national debt stood at about $2.7 trillion.
The clock shows the total amount of debt owed by the U.S. government and was first installed by real estate developer Seymour Durst. The Durst Organization now plans to replace this clock with a newer 15-digit version, as against its current capability of showing 13 digits, in addition to a dollar sign.
The financial rescue packages totalling over a trillion dollar, including the latest $700-billion plan, and the government’s expected move to buy shares in some banks, are expected to further inflate the country’s debt levels. — PTI
Via:Hindu
Japan's Yamato Life Insurance goes bankrupt: Official
10 Oct, 2008, 0705 hrs IST, AGENCIES
TOKYO: Japan's Yamato Life Insurance will file for bankruptcy protection, becoming the first Japanese insurer to fail amid the global credit crisi
s, the financial watchdog said on Friday.
The Tokyo-based company will take necessary legal steps based on insurance law and will seek approval for rehabilitation, the news agency and other media said, quoting informed sources.
The medium-size insurer's debts amount to 269.5 billion yen (2.73 billion dollars), Jiji said.
Telephone calls to Yamato went unanswered, but the company has scheduled a press conference later in the day, Dow Jones Newswires said.
TOKYO: Japan's Yamato Life Insurance will file for bankruptcy protection, becoming the first Japanese insurer to fail amid the global credit crisi
s, the financial watchdog said on Friday.
The Tokyo-based company will take necessary legal steps based on insurance law and will seek approval for rehabilitation, the news agency and other media said, quoting informed sources.
The medium-size insurer's debts amount to 269.5 billion yen (2.73 billion dollars), Jiji said.
Telephone calls to Yamato went unanswered, but the company has scheduled a press conference later in the day, Dow Jones Newswires said.
Hindalco rights issue may devolve
MUMBAI: The Rs 5,047-crore rights issue of Hindalco Industries is set to devolve on the underwriters, thanks to the financial crisis gripping much
of the world. Although the quantum of the devolvement will be clear on Friday after the closure of the issue, sources close to the offer said that the figure is expected to be in the range of at least 15-20%. The five underwriter banks are ABN Amro, Citigroup, Deutsche Bank, DSP Merrill Lynch and State Bank of India. They may have to acquire the remaining 15-20%.
A source said the offer has managed to attract subscription of only 45% (this may include a large chunk subscribed by the promoters) till Wednesday, one working day before the closure (Thursday was a holiday). This includes GDR holders’ application to buy their entire entitlement of nearly 11%.
The Aditya Birla group, the promoters, has promised to subscribe to 50% of the issue, against its entitlement of 31.43%. It is understood that domestic financial institutions, who have a combined 15% stake, may opt for the issue unless there is no dramatic crash in the stock markets, a banking source said.
A source close to Hindalco said the company would manage to sail through the issue. “The Hindalco stock fell less than its peers in the current meltdown. It has a book value of Rs 140 and treasury of Rs 9,000 crore. It’s a long-term growth story.” When contacted, the Birla group spokesperson declined to comment.
Hindalco’s rights issue has been hit by the crash in the global financial markets. Its share price has fallen below the rights offer price of Rs 96. The company’s shares closed at Rs 90 on Wednesday on the Bombay Stock Exchange.
It is learnt that the Birlas would directly pick up 41% of the issue and would nominate investors for another 9%. With this, the rights issue will get a 90% response including the devolvement to the underwriters. Post-rights, the Birlas stake may go up to 47-48% on the expanded capital.
Hindalco launched the rights issue to part-finance the acquisition of Canadian aluminium company Novelis, which it bought for an enterprise value of $6 billion last year. The company had taken a bridge loan of $3.03 billion for the takeover, which expires next month.
In addition to this issue, Hindalco has stitched together a $1-billion loan from a consortium of 11 international banks to finance the Novelis acquisition. The term for the loan is nearly five years. The loan will be raised at a rate of LIBOR plus 280 basis points. The Libor, or the London interbank rate, is the rate at which banks lend money to each other. Hindalco had raised bridge loans at Libor plus 80 basis points last year.
Via:E.T
10 Oct, 2008, 0226 hrs IST,Dev Chatterjee & Kausik Datta, ET Bureau
of the world. Although the quantum of the devolvement will be clear on Friday after the closure of the issue, sources close to the offer said that the figure is expected to be in the range of at least 15-20%. The five underwriter banks are ABN Amro, Citigroup, Deutsche Bank, DSP Merrill Lynch and State Bank of India. They may have to acquire the remaining 15-20%.
A source said the offer has managed to attract subscription of only 45% (this may include a large chunk subscribed by the promoters) till Wednesday, one working day before the closure (Thursday was a holiday). This includes GDR holders’ application to buy their entire entitlement of nearly 11%.
The Aditya Birla group, the promoters, has promised to subscribe to 50% of the issue, against its entitlement of 31.43%. It is understood that domestic financial institutions, who have a combined 15% stake, may opt for the issue unless there is no dramatic crash in the stock markets, a banking source said.
A source close to Hindalco said the company would manage to sail through the issue. “The Hindalco stock fell less than its peers in the current meltdown. It has a book value of Rs 140 and treasury of Rs 9,000 crore. It’s a long-term growth story.” When contacted, the Birla group spokesperson declined to comment.
Hindalco’s rights issue has been hit by the crash in the global financial markets. Its share price has fallen below the rights offer price of Rs 96. The company’s shares closed at Rs 90 on Wednesday on the Bombay Stock Exchange.
It is learnt that the Birlas would directly pick up 41% of the issue and would nominate investors for another 9%. With this, the rights issue will get a 90% response including the devolvement to the underwriters. Post-rights, the Birlas stake may go up to 47-48% on the expanded capital.
Hindalco launched the rights issue to part-finance the acquisition of Canadian aluminium company Novelis, which it bought for an enterprise value of $6 billion last year. The company had taken a bridge loan of $3.03 billion for the takeover, which expires next month.
In addition to this issue, Hindalco has stitched together a $1-billion loan from a consortium of 11 international banks to finance the Novelis acquisition. The term for the loan is nearly five years. The loan will be raised at a rate of LIBOR plus 280 basis points. The Libor, or the London interbank rate, is the rate at which banks lend money to each other. Hindalco had raised bridge loans at Libor plus 80 basis points last year.
Via:E.T
10 Oct, 2008, 0226 hrs IST,Dev Chatterjee & Kausik Datta, ET Bureau
Dollar may touch Rs 50 in two months, feel experts
9 Oct, 2008, 1700 hrs IST, PTI
NEW DELHI: Indian currency may lose further ground and dollar is likely to touch Rs 50 in the next two months in the wake of global financial crisis, say exporters and economists.
With foreign institutional investors (FIIs) pulling out of the equity markets in the emerging economies, rupee touched a six-year low of 48.47 against dollar yesterday.
If the prevailing sentiment for withdrawal of portfolio funds continues and RBI does not intervene, the dollar can touch Rs 50 in the next 2-3 months, ICRIER Director Rajive Kumar said.
The FIIs have net sold USD 120 million from India in the last three months with the global equity markets receiving a thrashing after collapse of several banks in the US and Europe.
With erosion of over 20 per cent rupee value since April this year, exporters are laughing their way to bank on increased realisations, though some of them got trapped in the exotic derivative contracts of the previous year.
While they want stability in the foreign exchange market, exporters seem to nurse a desire of the rupee touching 50.
"If this trend continues, the domestic currency will touch 50 against dollar in the next two months," Federation of Indian Export Organisations Director General Ajay Sahai said.
On the back of windfall resulting from currency depreciation, India's exports surged by 35.1 per cent between April and August this fiscal.
However, import increase of 37.7 per cent has left a big trade gap of USD 49 billion in the five months of the current fiscal. The trade gap could exert further pressure on the overall current account situation of the country.
The demand for dollar is still high from the oil industry despite a sharp fall in the crude oil prices.
"The scenario is volatile. The rupee would be under pressure but it will remain within 50 mark," CRISIL Principal Economist D K Joshi said.
Notwithstanding the fact that India is sitting on a foreign exchange reserve of USD 292 billion, the FIIs are fleeing the equity markets impacting the overall sentiment.
"Though it is difficult to pinpoint the number, it can touch Rs 50 if the current depreciation trend continues," Punjab National Bank General Manager, Treasury Arun Kaul said.
Via:E.T
NEW DELHI: Indian currency may lose further ground and dollar is likely to touch Rs 50 in the next two months in the wake of global financial crisis, say exporters and economists.
With foreign institutional investors (FIIs) pulling out of the equity markets in the emerging economies, rupee touched a six-year low of 48.47 against dollar yesterday.
If the prevailing sentiment for withdrawal of portfolio funds continues and RBI does not intervene, the dollar can touch Rs 50 in the next 2-3 months, ICRIER Director Rajive Kumar said.
The FIIs have net sold USD 120 million from India in the last three months with the global equity markets receiving a thrashing after collapse of several banks in the US and Europe.
With erosion of over 20 per cent rupee value since April this year, exporters are laughing their way to bank on increased realisations, though some of them got trapped in the exotic derivative contracts of the previous year.
While they want stability in the foreign exchange market, exporters seem to nurse a desire of the rupee touching 50.
"If this trend continues, the domestic currency will touch 50 against dollar in the next two months," Federation of Indian Export Organisations Director General Ajay Sahai said.
On the back of windfall resulting from currency depreciation, India's exports surged by 35.1 per cent between April and August this fiscal.
However, import increase of 37.7 per cent has left a big trade gap of USD 49 billion in the five months of the current fiscal. The trade gap could exert further pressure on the overall current account situation of the country.
The demand for dollar is still high from the oil industry despite a sharp fall in the crude oil prices.
"The scenario is volatile. The rupee would be under pressure but it will remain within 50 mark," CRISIL Principal Economist D K Joshi said.
Notwithstanding the fact that India is sitting on a foreign exchange reserve of USD 292 billion, the FIIs are fleeing the equity markets impacting the overall sentiment.
"Though it is difficult to pinpoint the number, it can touch Rs 50 if the current depreciation trend continues," Punjab National Bank General Manager, Treasury Arun Kaul said.
Via:E.T
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