Live_wire's Info Thread

[live_wire]

HPCL, Castrol India lead gainers in 'A' group

Shares of state-run oil marketing firms (PSU OMCs) rose on report oil companies are planning to raise prices of petrol and diesel by Rs 2 a litre each after crude touched a two-year high of $90 a barrel on Tuesday, 7 December 2010.

HPCL spurted 3.38% to Rs 409.95. It topped the gainers in the BSE's 'A' group. BPCL flared up 2.12% to Rs 677. It was the fourth biggest gainer in 'A' group.

Auto lubricant oil maker Castrol India climbed 3.08% to Rs 464.25. It was the second biggest gainer in 'A' group.

Feminine hygiene care products maker Procter & Gamble Hygiene & Healthcare jumped 2.78% to Rs 1845. It was the third biggest gainer in 'A' group.

Torrent Power, which provides electricity in select places in Gujarat, rose 1.76% to Rs 292.25. It was the fifth biggest gainer in 'A' group.

 

[live_wire]

Stocks to look at: ITC, Hero Honda, RIL, Hanung Toys, Swaraj Mazda

ITC is reportedly eying an acquisition in its paperboards and specialty papers division to add capacity to its paper production. The multi-business conglomerate, which is in talks with several companies in the paper production segment, may clinch a deal in the next six to eight months.

Hero Honda Motors has reportedly announced a hike in the prices of its models between by Rs 500 to Rs 1500 per unit, enabling it to offset the rising input costs.

Reliance Industries is reportedly likely to increase crude imports from Latin America as it seeks better refining margins by processing heavier and cheaper grades of oil.

Hanung Toys & Textiles has scheduled a board meet on 11 December 2010, to consider and approve a proposal for buyback of its equity shares.

Kennametal India has scheduled a board meet on 9 December 2010 to consider and approve delisting of equity shares.

Private equity firm Actis is reportedly in talks with Isuzu Motors for selling its stake in automobile company Swaraj Mazda.

 

[live_wire]

Food inflation rebounds slightly, snapping moderation for last 7 straight weeks

The WPI based inflation for primary articles was steady at 12.7% during the week ended 27 November. Within the primary articles, the inflation for food articles rebounded slightly to 8.7% in the week ended 27 November from 8.6% in the previous week, snapping sequential moderation during last seven straight weeks from 16.4% in the week ended 02 October 2010. Meanwhile, the inflation for non-food articles eased to 23.5% in the week ended 27 November, snapping cumulative 3.6% increase over last three weeks.

The inflation for fuel and power group remained steady at 10.0% during the week ended 27 November 2010.

Based on the weekly data, the inflation for primary articles eased sharply to 13.0% during November 2010 from 16.7% in October 2010. The sharp fall in inflation for primary articles was driven by dip in inflation for food articles to 9.4% in November 2010 from 14.1% during October 2010. The inflation for food articles moved into single digit during November 2010, snapping double-digit rise for last 18 sequential months. However, the inflation for non-food articles increased to 23.2% in November 2010 from 22.2% during October 2010.

The inflation for fuel and power group also eased to 10.3% during November 2010 from 11.0% in October 2010.

The index for primary articles group rose by 0.4% during week ended 27 November for the previous week's level.

The index for 'Food Articles' group rose by 0.5% from the previous week level due to higher prices of fish-inland and condiments & spices (3% each), barley, poultry chicken, jowar, bajra, wheat, mutton and moong (2% each) and ragi, beef & buffalo meat and maize (1% each). However, the prices of urad (4%), masur (2%) and egg and arhar (1% each) declined.

The index for 'Non-Food Articles' group rose 0.5% from the previous week level due to higher prices of sunflower (11%), raw silk (3%), soyabean and copra (2% each) and raw rubber, castor seed, groundnut seed, gingelly seed and flowers (1% each). However, the prices of gaur seed (7%) and raw jute (1%) declined.

The index and annual rate of inflation calculated on point to point basis for fuel and power group remained unchanged at its previous week's level.

 

[live_wire]

S Kumars Nationwide in vogue on subsidiary's IPO plan

S Kumars Nationwide jumped 8.17% to Rs 74.15 at 09:51 IST on BSE, after its subsidiary Reid & Taylor (India) on 9 December 2010 filed Draft Red Herring Prospectus with the Securities and Exchange Board of India for an initial public offer.

S Kumars Nationwide made the announcement after market hours on Thursday, 9 December 2010.

Meanwhile, the BSE Sensex was down 47.19 points, or 0.25%, to 19,195.17 On BSE, 5.32 lakh shares were traded in the counter. The stock had an average daily volume of 6.62 lakh shares in the past one quarter.

The stock hit a high of Rs 74.85 and a low of Rs 68.05 so far during the day. The stock hit a 52-week high of Rs 97.25 on 22 November 2010 and a 52-week low of Rs 38.30 on 16 December 2009.

The mid-cap stock had underperformed the market over the past one month till 9 December 2010, falling 20.66% compared with the Sensex's fall of 8.07%. It had also underperformed the market in past one quarter, declining 18.10% as against 2.35% rise in the Sensex.

The company's current equity is Rs 265.46 crore. Face value per share is Rs 10.

The proposed initial public offer of Reid & Taylor (India) includes an offer for sale portion by S. Kumars Nationwide, the company said in a statement. Reid & Taylor (India) is reportedly looking to raise around Rs 1,000 crore from the initial public offer (IPO) to finance expansion plans. The IPO is likely to hit the market in January-February 2011.

S Kumars Nationwide's consolidated net profit rose 9.30% to Rs 63.87 crore on 26.50% rise in net sales to Rs 1203.40 crore in Q2 September 2010 over Q2 September 2009

 

[live_wire]

K S Oils bounces back after shedding 27% in last three sessions

K S Oils surged 14.89% at Rs 35.10 at 13:27 IST on BSE after the stock slumped 27.52% in the preceding three sessions to Rs 30.55 on 9 December 2010 from a recent high of Rs 42.15 on 6 December 2010.

Meanwhile, the BSE Sensex was up 180.12 points, or 0.94%, to 19,422.48. On BSE, 62.06 lakh shares were traded in the counter as against an average daily volume of 13.07 lakh shares in the past one quarter.

The stock hit a high of Rs 35.45 and a low of Rs 29.05 so far during the day. The stock had hit a 52-week low of Rs 28.55 on Thursday, 9 December 2010. It had hit 52-week high of Rs 77 on 18 January 2010.

The stock had underperformed the market over the past one month till 9 December 2010, tumbling 50.49% compared with the Sensex's 8.07% fall. It also underperformed the market in past one quarter, falling 40.22% as against 2.35% rise in the Sensex.

The mid-cap edible oil maker has an equity capital of Rs 40.90 crore. Face value per share is Rs 1.

On Thursday, 9 December 2010, K S Oils denied media reports of involvement of the company and its executives in price manipulation. According to reports, a report on the Indian stock markets prepared by the Intelligence Bureau (IB) has suspected that a market operator Vimal Rathod was accumulating shares of Ruchi Soya, K S Oils and Karuturi Global on behalf of investor C Shivasankaran based on insider information. The IB has reportedly passed on the information to the Cental Bureau of Investigation (CBI) and the market regulator, the Securities and Exchange Board of India (Sebi) for further action.

The report further said Rathod was active in the K S Oils counter where he accumulated shares not only for himself but also on behalf of Sivasankaran.

The K S Oils stock had tumbled 14.7% on Wednesday, 8 December 2010, after a television channel reported about the IB report. The stock had lost 10.8% at Rs 30.55 on Thursday, 9 December 2010, off the day's low of Rs 28.55 after the company's denial of involvement in price manipulation.

K S Oils said it continues to pursue its business as usual and is focused on delivering the customer with superior products and maintaining its leadership position in the edible oil segment in India.

K S Oils' net profit rose 1.9% to Rs 51.11 crore on 9.4% increase in net sales to Rs 1035.38 crore in Q2 September 2010 over Q2 September 2009.

 

[live_wire]

Sensex closes with 266 pts gain; Nifty ends above 5,850 mark

After a steep decline in previous four days trading, Indian Indices close with over 1% gain, on strong IIP October data and heavy buying by foreign funds. Nifty ends provisionally at 5,857 (up 91 pts) and Sensex above 266 pts, at 19,508 . Except the Auto sector all the sectoral indices on the BSE close in the green with Banking sector surging nearly 3%.

 

[live_wire]

Stocks to look at: Sun Pharma, NTPC, Punj Lloyd, Andhra Bank

Sun Pharmaceuticals is reportedly looking at buyout of a $300 million US-based firm.

National Thermal Power Corporation (NTPC) suffered a notional loss of Rs 40,519 crore because of inadequate planning and delay in the commissioning of projects, reports citing the Comptroller and Auditor General (CAG) of India said.

Punj Lloyd secured two repeat oil and gas orders worth Rs 1461 crore. The company secured the first contract worth Rs 1292 crore in Thailand from PTT Public Company, a Thailand state-owned oil & gas major for onshore gas pipeline project. The other order for mechanical and piping of Indian Oil Corporation's Paradip Refinery, India, amounting Rs 169 crore.

Sri Adhikari Brothers Television Network's board of directors at its meeting held on 11 December 2010 approved raising an amount not exceeding Rs 125 crores, by through issue of securities by way of qualified institutional placement (QIPs)/foreign currency convertible bonds (FCCBs)/American depository receipts (ADRs)/Global depository receipts (GDRs)/any other permissible securities up to an aggregate amount, including premium.

Nitesh Estates has reportedly launched a Rs 300 crore high-end villa project in Goa to grab a substantial share of the growing luxury real-estate market.

Andhra Bank has increased the Benchmark Prime Lending Rate (BMPLR) by 25 basis points from the existing 12.75% per annum to 13% per annum with effect from 13 December 2010.

Development Credit Bank has hiked its Benchmark Prime Lending Rate by 25 basis points to 15.75% effective from 11 December 2010.

 

[live_wire]

Select shares slide as BSE bars trading for non-compliance with listing agreement

Shares of eleven firms declined 4.91% to 19.86% at 12:21 IST after the Bombay Stock Exchange said it will suspend trading for failure to comply with various clauses of the Listing Agreement.

Vishal Exports Overseas (down 9.26%), Ambalal Sarabhai Enterprises (down 15.36%), Bafna Spinning Mills & Exports (down 4.91%), CMM Broadcasting Network (down 8.75%), Computech International (down 12.32%), Enso Secutrack (down 16.23%), Indage Restaurants and Leisure (down 4.92%), Invicta Meditek (down 19.86%), Linkhouse Industries (down 17.25%), NetVision Web Tech (down 8.33%), and Orind Exports (down 4.11%), declined. But, Indo-Pacific Software & Entertainment gained 5%.

The Bombay Stock Exchange (BSE) in its circular issue after market hours on Tuesday, 14 December 2010 said these 12 companies have failed to comply with various provisions of the Listing Agreement upto quarter ended June 2010. The trading suspension will be effective from 13 January 2011.

The BSE further said if a company complies with all the provisions of the Listing Agreement on or before 3 January 2010, trading in securities of the company will be suspended only for five trading days up to 19 January 2011. In case a company complies with all the provisions of the Listing Agreement on or before 28 January 2011, the trading in securities of the company will be suspended for 30 days up to 11 February 2011.

However, in case the company fails to comply with the provisions of the Listing Agreement to the satisfaction of the Exchange on or before 28 January 2011, the suspension will continue till such time the company complies with the procedure prescribed for revoking suspension in a scrip, the BSE said.

As per the provision of Securities Contracts (Regulation) Rules, 1957 and the Rules, Bye-laws and Regulations of the Exchange, a company listed on BSE is required to comply with various clauses of the Listing Agreement, failing which trading in securities of such defaulting companies is liable for suspension.

 

[live_wire]

Indices settle above the psychological levels

Indian markets continue to rise for the third day on Tuesday, as reports of higher advance tax payment by top Indian firms and firm global stocks boost the markets sentiments. Metal sector take a lead followed by Banking, Realty & Oil sectors while IT sector declines. Ispat Ind is the top loser after shedding 15% on report that it will issue preferential shares to JSW Steel at discount.

 

[live_wire]

Asian Markets edge higher amid thin trades; Nikkei ends higher 1.5%

Asian markets had a very good outing today as investors eyed softening of tensions on the Korean peninsula after the South's live-fire drill passed off without response from the North. Markets had slipped on the previous day as Seoul went ahead with the US-backed exercise on the island of Yeonpyeong, which prompted an emergency session of the UN Security Council.

However, concerns eased as Pyongyang said only that it would show restraint while news that US negotiator Bill Richardson had persuaded the North to permit the return of UN nuclear inspectors also lifted sentiment. The markets had slipped on across the board profit selling as the benchmark indices had stuck two and a half year highs in the last week.

The US dollar gave up some of its recent gains on strong risk appetite. The greenback was also hurt after China said it was happy with measures taken by the European Union and International Monetary Fund to ensure financial stability. Chinese Vice Premier Wang Qishan said Tuesday at the start of Sino-EU trade talks that Beijing would help some EU members combat the sovereign debt crisis, state media and Dow Jones Newswires reported.

The Japanese market closed in green with the stocks hitting a fresh 7-month high on increasing optimism about sustaining global economic recovery and strong US economic data in last few days. This supported the sentiments further and the benchmark Nikkei 225 Index closed at 10,371, up 154.12 points or 1.51%.

The Australian markets soared on gains in the overseas indices and strong commodity prices. The benchmark S&P/ASX 200 closed with a gain of 35.3 points, or 0.8%, at 4771.9 near its day's high.

In China, property stocks bounced sharply to propel the broad markets higher. The key Shanghai Composite Index surged by nearly 2% to end at 2,904.1 points, breaking above the key 2900 levels yet again.

In other markets, South Korea's Seoul Composite surged 0.83%, Hong Kong's Hang Seng spiked 1.83% while Taiwan's Taiex added 0.67%.

Crude oil managed to add further gains to top a high of $89.77 per barrel. Oil has been rising on the back of higher oil prices caused by freezing weather across the northern hemisphere and an expected jump in demand for petrol over Christmas.