Live_wire's Info Thread

[live_wire]

Realty shares slump on fears of a likely cash crunch

Thirteen realty shares lost 2.31% to 20% on concerns property prices may slump as loan scam hits bank funding for the sector.

At 10:50 IST, the BSE Realty index was down a staggering 10.56% to 2,573.55. It underperformed the Sensex, which was down 1.22% to 19,081.59.

Parsvnath Developers (down 20%), Orbit Corporation (down 18.60%), Unitech (down 16.03%), Indiabulls Real Estate (down 12.89%), HDIL (down 11.56%), Phoenix Mills (down 10.26%), DB Realty (down 10%), DLF (down 8.18%), Peninsula Land (down 8.05%), Ackruti City (down 6.41%), Anant Raj Industries (down 4.28%), Sobha Developers (down 4.19%) and Sunteck Realty (down 2.31%), slumped.

Finance minister Pranab Mukherjee's direction to state-run lenders to prevent a recurrence of the loans-for-bribes scandal, and banks' decision to go for a critical appraisal of all real estate loans above Rs 50 crore may stall projects and drive developers to private funds.

Liquidity for the sector may dry up as bankers turn cautious in sanctioning fresh loans, forcing builders to cut prices to improve cash position. Fund shortage also threatens to derail their project execution, which had just started to show signs of recovery after the 2008 credit crisis.

The arrest of a total of 8 finance sector executives for alleged corruption and passing on information on transactions, has shaken the banking sector. Senior officials of Bank of India, Central Bank of India and LIC Housing Finance were arrested by the Central Bureau of Investigation (CBI) on Wednesday, 24 November 2010, in a loan bribery case.

The CBI said in a statement that it has busted a racket wherein a private financial services company was allegedly bribing senior officials of public sector banks and financial institutions for facilitating large scale corporate loans. They were also gathering confidential business information from financial institutions, the CBI statement said.

 

[live_wire]

Investors scramble to exit Money Matters Financial after loan scam probe

Money Matters Financial Services hit a lower circuit limit of 10% at Rs 382.55 on BSE extending recent losses ahead of the company's board meeting today, 26 November 2010.

The board meeting was announced after market hours on Thursday, 25 November 2010. Meanwhile, the BSE Sensex was down 176.41 points, or 0.91%, to 19,141.75. On BSE, 985 shares were traded in the counter as against an average daily volume of 2.35 lakh shares in the past one quarter.

The stock had hit a record high of Rs 787 on 29 October 2010 and a 52-week low of Rs 102.15 on 27 November 2009.

The stock had underperformed the market over the past one month till 24 November 2010, falling 22.44% compared with the Sensex's 3.50% fall. It also underperformed the market in past one quarter, sliding 14.42% as against 6.27% rise in the Sensex.

The financial services provider has an equity capital of Rs 34.87 crore. Face value per share is Rs 10.

The stock is down 44.80% in three sessions from a recent high of Rs 693.10 on 22 November 2010, after the loan bribery scam was unearthed.

The board of Money Matters Financial Services holds a meeting today, 26 November 2010, to decide on the futures course of action after the Central Bureau of Investigation (CBI) on Wednesday, 24 November 2010, arrested the Money Matters' chairman and managing director and two other officials along with the senior executives of three state-run banks and other financial firms in a loan bribery case.

In a statement to the stock exchanges, Money Matters said the board meeting had been called to discuss the matter in detail and decide on the next course of action. The CBI has said that Money Matters acted as a mediator and facilitator of corporate loans and other facilities by bribing bank officials.

Money Matters said the company will like to assure its shareholders, customers and business associates that the company firmly believes in ethical practices in all business dealings. The company is fully co-operating with CBI and in the legal proceedings, it said.

 

[live_wire]

Select stocks slump on reports of insider trading probe

Shares of six stocks fell 7% to 17.62% after reports the Securities & Exchange Board of India is examining the possibility of insider trading in shares of these companies.

Trading in shares of Adani Enterprises (down 17.62%), Central Bank of India (down 10.01%), Money Matters Financial Services (down 10%), DB Realty (down 10%), LIC Housing Finance (down 7.89%) and Pantaloon Retail (down 7%) is under the lens, reports suggest.

The Securities & Exchange Board of India (Sebi) has joined the Central Bureau of Investigation (CBI) to probe the possibility of insider trading in shares of these companies, named by the investigator as involved in the loan scandal, reports suggest.

An unnamed senior Sebi official was quoted by the media as saying that Sebi will look into the linkages between the information allegedly exchanged and the actual market movements.

Senior officials of Bank of India, Central Bank of India and LIC Housing Finance were arrested by the Central Bureau of Investigation (CBI) on Wednesday, 24 November 2010, in a loan bribery case. The CBI said in a statement that it has busted a racket wherein a private financial services company was allegedly bribing senior officials of public sector banks and financial institutions for facilitating large scale corporate loans. They were also gathering confidential business information from financial institutions, the CBI statement said.

All those arrested are remanded to custody till Monday, 29 November 2010.

 

[prst]

cant understand why punj lloyd fell today ..

 

[live_wire]

Punj Lloyd (Punj) witnessed another quarter of below-par performance with the major disappointment coming on the top-line front. In 2QFY2011, order backlog stood at Rs 25470 crore (yoy decline of 5%) with order inflow at a mere Rs 1030 crore, driven mainly by the infrastructure segment.

The above mentioned disappointment is the reason for decline...but I believe it has become the victim of this crash...nothing else...Still see a big movement in this stock...Around Rs 120 in a period of 3-6 months..!!

 

[live_wire]

Nifty ends lower 43pts, sheds nearly 4% in a week

At 14:15 IST, the BSE 30-share Sensex was down 36.22 points or 0.19% to 19,281.94. The Sensex rose 99.45 points at the day's high of 19,417.61 in early trade. The index lost 363.34 points at the day's low of 18,954.82 in morning trade, its lowest level since 13 September 2010.

The S&P CNX Nifty was down 3.70 points or 0.06% at 5,798.10. The Nifty hit a low of 5,690.35 in morning trade, its lowest level since 13 September 2010.

The BSE Small-Cap index lost 2.52% and the BSE Small-Cap index declined 3.67%. Both these indices underperformed the Sensex.

The market breadth, indicating the health of the market, was extremely weak. On BSE, 2580 shares declined while 396 shares rose. A total of 63 shares remained unchanged.

Among 30-member Sensex pack, 18 declined while the rest gained.

Cipla (up 2.39%), Larsen & Toubro (up 1.01%), and Tata Power Company (up 1.18%), edged higher from the Sensex pack.

Reliance Infrastructure (down 5.44%), Sterlite Industries (down 3.68%), and Reliance Communications (down 2.68%), edged lower from the Sensex pack.

Frontline banking and financial stocks were mixed after a recent steep slide triggered by the outbreak of the loan scam. India's largest bank by net profit and branch network State Bank of India surged 2.26% to Rs 2890, off sharply from day's low of Rs 2795.10. India's largest private sector bank by net profit ICICI Bank rose 1.59%.

But, India's second largest private sector bank by net profit HDFC Bank shed 1.12%. India's largest mortgage financier by total income HDFC fell 1.49%.

Bank of India (BoI) rose 2.43% to Rs 430.50, off the day's low of Rs 388.35, after the state-run bank clarified it has a proper structure for sanctioning loans, which is duly observed and the asset quality continues to be good.

Index heavyweight Reliance Industries (RIL) fell 0.66% to Rs 973.80, off day's low of Rs 965 and high of Rs 990.50. RIL and NTPC may reportedly settle their five-year-old legal battle over a contract to supply natural gas from RIL's field in the Krishna-Godavari basin to the state-owned power utility.

The RIL-NTPC dispute dates back to 2005 when NTPC dragged RIL to the Bombay High Court, complaining that RIL was not honouring a contract to sell 12 million standard cubic metres a day (mmscmd) of gas to its Kawas and Gandhar expansion projects in Gujarat for 17 years at $2.34 per unit. Shares in NTPC rose 0.31%.

Realty stocks slumped for the third straight day on concerns more of these firms could be named in the probe. The fresh sanctions of loans may take a hit after the outbreak of the scam involving sanctioning of loans in return for bribes. Sale of property is largely driven by financed funds.

India's largest realty player by sales DLF lost 1.69%, extending three-day losses. Ackruti City (down 5.94%), HDIL (down 4.45%), Indiabulls Real Estate (down 10.30%), Parsvnath Developers (down 14.02%), Orbit Corporation (down 9.67%), Unitech (down 3.41%), and DB Realty (down 10%), declined.

Shares of select stocks declined after reports the Securities & Exchange Board of India is examining the possibility of insider trading in shares of these companies. Central Bank of India (down 6.97%), Money Matters Financial Services (down 10%), LIC Housing Finance (down 9.27%) and Pantaloon Retail (down 1.17%) declined.

Shares of tyre makers fell as rubber prices, a key input in making tyres, have risen sharply in recent times. MRF (down 0.89%), Goodyear India (down 2.10%), TVS Srichakra (down 3.82%), J K Tyre & Industries (down 0.23%), CEAT (down 3.22%) and Apollo Tyres (down 3.73%) edged lower.

As per reports, natural rubber price in the country (RSS-4 grade) have shot up sharply beyond the quarter's average price of around Rs 165 per kilogram (kg). By October 2010, the prices jumped to Rs 190 per kg and climbed further to the present level of around Rs 202 per kg. This is around 22% higher than last quarter's average price, reports added. Rubber cost accounts for almost half of the total cost of producing a tyre.

Pratibha Industries slumped 6.32%. The company has raised Rs 50 crore through issue of equity shares to Van Dyck, a unit of ChrysCapital V LLC. The company made this announcement after market hours on Thursday, 25 November 2010.

Jindal Steel and Power lost 3.42% on reports the environment ministry has told the company to provide a reason why it should not cancel a green nod for the firm's 6 million tonnes per year Orissa plant.

 

[live_wire]

Sensex ends lower 181pts, sheds over 3% in a week

Consecutively third week, Sensex crashes and settles at 19,136 (down by 181 pts). Koreas tension, Housing loan scam, 2G Spectrum scam & Insider trading push the market to two month's low. Realty sector sheds roughly 11% during the week & is the top loser. SAIL & Grasim are on the buyers' radar while JP Infra & JP Associates are amongst the major losers.

The BSE 30-share Sensex was down 181.55 points or 0.94% to 19,136.61, its lowest closing since 9 September 2010. The Sensex rose 99.45 points at the day's high of 19,417.61 in early trade. The index lost 363.34 points at the day's low of 18,954.82 in morning trade.

The S&P CNX Nifty was down 47.80 points or 0.82% at 5,751.95, its lowest closing since 9 September 2010. The Nifty hit a low of 5,690.35 in morning trade.

The BSE Small-Cap index lost 3.06% and the BSE Small-Cap index declined 4.49%. Both these indices underperformed the Sensex.

The market breadth, indicating the health of the market, was weak. On BSE, 2552 shares declined while 499 shares rose. A total of 57 shares remained unchanged.

All the 13 sectoral indices on the BSE edged lower.

The BSE Realty index (down 4.68%), the BSE Consumer Durables index (down 3.90%), and the BSE Metal index (down 2.54%), underperformed the Sensex.

The BSE IT index (down 0.02%), Bankex (down 0.03%), and the BSE Healthcare index (down 0.39%), outperformed the Sensex.

Among 30-member Sensex pack, 24 declined while the rest gained.

Cipla (up 1.58%), and Tata Power Company (up 0.55%), edged higher from the Sensex pack.

Reliance Infrastructure (down 7.25%), Bhel (down 2.28%), and Reliance Communications (down 5.84%), edged lower from the Sensex pack.

 

[sudintripathi]

hello Live Wire,
i appreciate your hard working & knowledge of Stock Mkt.

best regards
sudin tripathi

 

[live_wire]

Ranbaxy in the pink of health on US nod for Alzheimer's drug

Ranbaxy Laboratories jumped 4.62% at Rs 570 at 10:27 IST on BSE, on reports the company has got an approval from the US Food and Drug Administration for exclusively selling the generic version of Aricept, an Alzheimer's drug.

Meanwhile, the BSE Sensex was up 129.53 points, or 0.68%, to 19,266.14. On BSE, 1.43 lakh shares were traded in the counter as against an average daily volume of 2.27 lakh shares in the past one quarter.

The stock hit a high of Rs 574 and a low of Rs 561 so far during the day. The stock had hit a 52-week high of Rs 624.90 on 11 November 2010 and a 52-week low of Rs 364.20 on 4 May 2010.

The stock had underperformed the market over the past one month till 26 November 2010, falling 9.21% compared with the Sensex's 5.36% fall. The scrip outperformed the market in past one quarter, gaining 13.30% as against 4.99% rise in the Sensex.

India's largest drug maker by sales has an equity capital of Rs 210.52 crore. Face value per share is Rs 5.

According to reports, Aricept has estimated annual sales of about $1.6 billion (Rs 7,312 crore) in the US. The patent on the drug expired on 25 November 2010. In September 2010, the US Food and Drug Administration (FDA) informed Ranbaxy that it had first-to-file status for Aricept in the US. This gives Ranbaxy 180 days of marketing exclusivity for the drug.

According to reports, Ranbaxy will manufacture and distribute Aricept from its US facility, Ohm Laboratories. In a note, a well-known foreign brokerage said the development is another positive outcome in the company's efforts to regain lost ground in the US. The brokerage believes generic Aricept could potentially add close to Rs 16 per share (to earnings per share) during the exclusivity period, depending on how much market share it is able to achieve, and that it should remain an important product beyond as well.

On a consolidated basis, Ranbaxy Laboratories' net profit rose 168.9% to Rs 307.94 crore on 9.8% increase in net sales to Rs 1883.78 crore in Q3 September 2010 over Q3 September 2009.

 

[live_wire]

Bank of India recovers after brokerage upgrade

Bank of India jumped 3.27% at Rs 443.35 at 12:08 IST on BSE after a foreign brokerage upgraded the stock to 'buy' from 'neutral' on valuations.

Meanwhile, the BSE Sensex was up 187.70 points, or 0.98%, to 19324.31. On BSE, 3.17 lakh shares were traded in the counter as against an average daily volume of 2.16 lakh shares in the past one quarter.

The stock hit a high of Rs 449.75 and a low of Rs 430 so far during the day. The stock had hit a record high of Rs 588 on 7 October 2010 and a 52-week low of Rs 308.85 on 23 March 2010.

The stock had underperformed the market over the past one month till 26 November 2010, falling 18.01% compared with the Sensex's 5.36% fall. It also underperformed the market in past one quarter, sliding 7.31% as against 4.99% rise in the Sensex.

The large-cap state-run lender has an equity capital of Rs 525.17 crore. Face value per share is Rs 10.

The recent loans bribery scam has led the stock to correct by 25% from recent peaks giving a good entry point, the brokerage said in a note even as it reduced the target price to Rs 550 from Rs 580. The brokerage expects a 49% growth in the bank's earnings for financial year 2011-12.

Senior officials of Bank of India, Central Bank of India and LIC Housing Finance were arrested by the Central Bureau of Investigation (CBI) on Wednesday, 24 November 2010, in a loan bribery case. The CBI said in a statement that it has busted a racket wherein a private financial services company was allegedly bribing senior officials of public sector banks and financial institutions for facilitating large scale corporate loans. They were also gathering confidential business information from financial institutions, the CBI statement said.

Bank of India, last week, said it has a proper structure for sanctioning loans, which is duly observed and that the asset quality continues to be good. The bank made this clarification during trading hours on Friday, 26 November 2010. In a statement to BSE, Bank of India said the it has noted that CBI has arrested certain bank executives including R.N. Tayal, general manager of Bank of India, in connection with loans extended by banks. This incident involves an alleged misconduct of an individual, Bank of India said.

"Three of our accounts viz. BGR Energy Systems, OPG Power and Ashapura Minechem, have been mentioned', Bank of India said in a statement. "The accounts of BGR Energy is conducted satisfactorily, OPG Power though sanctioned, is yet to be disbursed and Ashapura Minechem is an account of over 40 years with the bank", the statement added.

Bank of India's net profit rose 90.8% to Rs 616.78 crore on 11.1% increase in operating income to Rs 5740.05 crore in Q2 September 2010 over Q2 September 2009.