Sensex near day's high...Small-Caps, Mid-Caps underperform

BSE Sensex was trading at 19,440, up 150 points over the previous close. It had earlier tocuhed a day's high of 19,443 and opened at the day's low of 19,339.

The Indian stock benchmarks have extended the morning's gains with no let up in fresh buying in the Large-Cap stocks as traders remain upbeat on the final day of the March derivative contracts. The Indian market is actually outperforming the rivals in Asia where the trend is mixed today. Stock indices in Japan, Hong Kong and Australia are just marginally positive while the Chinese market is under pressure. The Shanghai Composite is down over 1%. Stock benchmarks in the US and Europe gained overnight. At 11:04 am (IST), the BSE Sensex was trading at 19,440, up 150 points over the previous close. It had earlier tocuhed a day's high of 19,443 and opened at the day's low of 19,339. NSE Nifty was trading at 5,830, up 42 points over the previous close. It had earlier touched a day's high of 5,830 and opened at the day's low of 5,803. However, the Small-Cap and the Mid-Cap shares seem to have run out of steam and are under-performing the main indices.The BSE Small Cap index and the BSE Mid Cap index were up 0.6% and 0.2% respectively. Most sectoral indices on the BSE are in the positive terrain. Only the Auto index is in the red. Hero Honda, Grasim, TCS, ONGC, Infosys, L&T, Bajaj Auto, Jindal Steel, BHEL, Dr. Reddy's, ITC, ICICI Bank, HDFC Bank, NTPC, GAIL, Tata Power, DLF, HDFC, Cairn India and RIL were among the winners in the main indices. M&M, Cipla, RCOM, Bharti Airtel, HCL Tech, Ambuja Cement, Tata Motors and IDFC were among the losers in the main indices. Andhra Pradesh Paper Mills is locked in 20% upper circuit for the second day running after announcing the sale of majority stake to US-based International Paper. Others like Malu Paper, Star Paper, JK Paper, ABC Paper, Yash Papers, Orient Paper, Ruchira Papers and Kalpataru Papers are also up smartly. The market breadth is positive with 1,390 shares rising and 950 shares falling.

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Closing Bell

BSE's benchmark Sensex on Tuesday closed at provisional 14,333.45, up 46.24 points or 0.32 per cent from the previous close. Intraday, the 30-share index touched a low of 14,161.76 and high of 14,369.59. NSE's 50-stock Nifty ended the day at provisional 4321.80, up by 8.25 points or 0.19 per cent.


3:30 pm: Ferro Alloys Corporation has recommended a final dividend of 35 per cent (Rs 0.35 per equity share of Re 1/- each) for the financial year 2007-08 in addition to interim dividend of 15 per cent declared and paid earlier taking total dividend for the year 2007-08 to 50 per cent. Further, the board have also declared interim dividend of 25 per cent (Re 0.25 per equity share of Re 1/- each) for the financial year 2008-09. The shares were down 8.24 per cent at Rs 27.30 on BSE.


3:15 pm: Skyline Millars has recommended final dividend of 10 per cent per share and also aproved sub-division of shares to Re 1 per shares subject to approval of shareholders. The shares were down 2.13 per cent at Rs 122 on BSE.


3:05 pm: Kesoram Industries has reported net profit of Rs 118.48 crore for the quarter ended Jun 30, 2008, against Rs 80.68 crore for the same quarter last year. For the same quarter net sales stood at Rs 1019.46 crore against Rs. 780.53 crore for the same quarter a year ago.


2:55 pm : Idea Cellular had approved to issue and allot 464,734,670 equity shares of Rs.10 each for cash at a price of Rs.146.96 on preferential basis. The company has now informed that: "Kindly read the Para as follows - issue and allotment of 464,734,670 equity shares of Rs.10 each for cash at a price of Rs.156.96 (including premium of Rs.146.96) on preferential basis.


2:45 pm: BEML has posted a net loss of Rs 17.43 crore for the quarter ended June 30, 2008 as compared to net profit of Rs 23.59 crore for the corresponding quarter previous year, while the total income has decreased to Rs 309.04 crore from Rs 406.96 crore earlier.


2:35 pm: Titan Industries net profit rose 154.90 per cent to Rs 32.22 crore for the quarter ended June 30, 2008 as compared to Rs 12.64 crore for the same quarter last year. Total Income has increased from Rs 658 crore for the June 2007 quarter to Rs 811.14 crore for the same quarter a year ago.


2:25 pm: Tata Communications has introduced two new Ethernet services to extend the company's industry-leading, global Wide Area Network Ethernet portfolio: Dedicated Point to Multipoint Ethernet and Dedicated Multipoint Ethernet Worldwide.


2:15 pm: Nagarjuna Construction Co. Ltd has reported net profit of Rs 37.08 crore for the quarter ended June 30, 2008 against Rs 36.03 crore in the year ago quarter. Net sales stood at Rs 970.94 crore against Rs 762.21 crore in the quarter ended June 30, 2007. Shares of the company were down 0.52 per cent at Rs 133.70 on NSE.


2:10 pm: Network 18 Fincap Ltd has reported net profit of Rs 4.57 crore for the quarter ended June 30, 2008 against a loss of Rs 6.53 crore for the corresponding quarter of 2007. Net sales for the period stood at Rs 23.28 crore against Rs 32.29 crore for the quarter ended June 30, 2007.
Shares of the company were down 0.49 per cent at Rs 171.50 on NSE.


2:00 pm: Shriram Transport Finance Company Ltd has reported 92 per cent jump in profit after tax to Rs 143.61 crore for the quarter ended June 30, 2008 from Rs 47.95 crore year earlier. Total income for the period increased to Rs 835.5 crore compared with Rs 480.41 crore in the quarter ended June 30, 2007. However, shares of the finance company were down 0.86 per cent at Rs 294.50 on BSE.


1:55 pm: Central Bank of India has reported a net profit of Rs 59.32 crore for the quarter ended June 30, 2008, down from Rs 98.35 crore in the same quarter of 2007. Total income has increased to Rs 2572.53 crore from Rs 1874.02 crore in the quarter ended June 30, 2007.

The bank's shares were down 1.51 per cent at Rs 58.80 on BSE.

1:50 pm: Bharat Forge Ltd has posted a profit after tax of Rs 26.56 crore for the quarter ended June 30, 2008, down from Rs 64.81 crore in the same quarter of 2007. This despite rise in total income to Rs 649.45 crore from Rs 516.88 crore in the quarter ended June 30, 2007.

The Group posted profit after tax and exceptional items of Rs 40.91 crore for the quarter ended June 30, 2008 against Rs 80.43 crore for the three months to June 30, 2007. Total income increased to Rs 1323.82 crore from Rs 1081.97 crore year ago.

Shares of the forging company were down 0.60 per cent at Rs 241.90 on BSE.


1:45 pm: Parsvnath Developers Ltd has posted a net profit of Rs 71.29 crore for the quarter ended June 30, 2008 compared to Rs 84.46 crore in the same quarter of 2007. Total income for the period increased to Rs 371.74 crore from Rs 356.85 crore year ago.

The Group posted a net profit of Rs 73.96 crore for the quarter ended June 30, 2008 against Rs 102.17 crore year ago. Total income decreased to Rs 380.74 crore from Rs 414.46 crore in the quarter ended June 30, 2007.

Shares of the real estate company were down 0.58 per cent at Rs 112.10 on BSE, off the high of Rs 114.70.



1:40 pm: Yes Bank Ltd has posted a net profit of Rs 54.33 crore for the quarter ended June 30, 2008, up 51 per cent compared to Rs 36.00 crore for the quarter ended June 30, 2007. Total income for the period increased to Rs 486.19 crore from Rs 348.49 crore year earlier. Shares of the private sector bank were up 1.65 per cent at Rs 129.20 on BSE. The stock had touched a high of 131.90 earlier.


1:35 pm : Victoria Mills has recommended dividend at Rs 50 per share. The company shares were 2.36 per cent to Rs 2867 on BSE.


1:30 pm: Flawless Diamond India' net profit rose 83.03 per cent to Rs 1.60 crore for the quarter ended on Jun 30, 2008 compared with Rs 87.2 lakh for the same quarter ended in 2007. Net sales increased 21.06 per cent to Rs 21.19 crore in Apr-Jun quarter of 2008 against Rs 17.50 crore in the corresponding quarter of previous year.


1:25 pm: ABC Paper has recommended payment of dividend of 7 per cent on the preference shares of Rs 10 each and 25 per cent on the equity shares of Rs 10 each for the year ended March 31, 2008. The company shares were 18.06 per cent to Rs 77.45 on BSE.


1:20 pm: Flawless Diamond India' net profit rose 72.14 per cent to Rs 7.79 crore for the quarter ended on Jun 30, 2008 compared with Rs 4.53 crore for the same quarter ended in 2007. Net sales increased 44.89 per cent to Rs 179.74 crore in Apr-Jun quarter of 2008 against Rs 124.05 crore in the corresponding quarter of previous year.


1:15 pm: Amrit Corp has recommended payment of dividend at the rate of 15 per cent on the equity shares of Rs 10 each (Rs 1.50 per equity share) for the year ended March 31, 2008.


1:10 pm: SREI Infrastructure Finance's net profit rose 38.27 per cent to Rs 32.19 crore for the quarter ended in June 30, 2008 compared with Rs 23.28 crore for the same quarter of 2008. Net sales decreased 16.30 per cent to Rs 101.57 crore in Apr-Jun quarter of 2008 against Rs 121.35 crore in the corresponding quarter of previous year.


01:00 pm: Castrol India has decided to pay an interim dividend at Rs 6 per equity share for the year ended on Dec 31, 2008. The company shares were 0.49 per cent to Rs 286.10 on BSE.


12:50 pm: Federal Bank’s net profit fell 1.81 per cent to Rs 68.15 crore for the quarter ended June 30, 2008 compared with Rs 66.94 crore for the same quarter ended in 2007. Total income increased 27.53 per cent to Rs 841.33 crore in Apr-Jun quarter of 2008 from Rs 659.70 crore in the corresponding quarter of previous year.


12:40 pm: Aishwarya Telecom has recommended 5 per cent dividend for the year 2007-08. The company shares were down 3.16 per cent to Rs 32.15 on BSE.


12:35 pm: BASF India has approved the proposal concerning setting up of compounding plant at Thane site for the engineering plastics business. The plant capacity would be 9000 TPA and the plant is expected to come on stream by the second half of 2009. the cost of the said compounding plant for the KT business is estimated at Euro 2.9 mio (INR 172 mio) and will be financed by internal accruals and borrowings.


12:30 pm: Indiabulls Real Estate shares were down 5.34 per cent to Rs 283.65 on BSE. Indiabulls Power Services, a 100 per cent subsidiary of the company, has entered into a memorandum of understanding with Madhya Pradesh government for setting up of 2640 MW power project. The Madhya Pradesh government will facilitate and extend all reasonable help and assistance to Indiabulls Power Services for setting up the aforesaid project.


12:25 pm: Shri Bajrang Alloys has recommended dividend at Rs 1 per share. The company shares were up 5.69 per cent to Rs 26.95 on BSE.


12:20 pm: Aarti Industries is a leading manufacturer of basic chemicals, speciality chemicals and pharmaceuticals. During the current year, company’s turnover jumped from Rs 194.3 crore in Q1 2007-08 to Rs 361.7 crore in Q1 2008-09 thereby posting a jump of over 85 per cent Similarly EBIDTA also increased by over 214 per cent, that is from Rs 20 8 crs in Q1 2007-08 to Rs 65 5 crore for Q1 2008-09


12:10 pm: Lupin Pharmaceuticals, Inc, US, a subsidiary Lupin has received final approval for the company’s abbreviated new drug application for divalproex sodium delayed-release tablets, 125 mg, 250 mg and 500 mg from the US Food and Drug Administration. Commercial shipments of the product have already commenced.

Lupin’s Divalproex sodium delayed-release tablets are the AB-rated generic equivalent of Abbott Laboratories’ Depakote tablets. Depakote has annual sales of $803 million for the twelve months ended March 2008, based on IMS Health sales data.


12:00 pm: EL CID Investments shares were currently trading at Rs 12 on BSE. The company has recommended dividend at Rs 10 (Previous year Rs 10) per share on 2,00,000 equity shares of Rs 10 each absorbing Rs 20 lakh


11:55 am: Lanco Infratech has reported a growth of 175.91 per cent to Rs 46.87 crore for the quarter ended June 30, 2008 compared with Rs 16.99 crore for the same quarter ended in 2007. Total income increased 242.47 per cent to Rs 537.17 crore in Apr-Jun quarter of 2008 from Rs 156.84 crore in the corresponding quarter of pervious year.


11:50 am: Facor Alloys shares were down 3.71 per cent to Rs 11.95 on BSE. The company has approved payment of interim dividend for the year 2008-09 on equity shares of Re 1 each a the rate of 15 per cent (Rs 0.15 per equity share.)


11:45 am: Triveni Engineering & Industries shares were 3.20 per cent to Rs 95.25 on BSE. The company has reported a net profit at Rs 24.60 crore for the quarter ended June 30, 2008 compared with net loss of Rs 19.97 crore for the same quarter ended in 2007. Total income increased 27.80 per cent to Rs 441.70 crore in Apr-Jun quarter of 2008 from Rs 345.61 crore in the corresponding quarter of 2008.


11:40 am: TAK Machinery & Leasing has recommended 20 per cent dividend on equity shares for the year ended March 31, 2008. The company shares were down 4.97 per cent to Rs 137.80 on BSE.


11:35 am: Spice Communications shares were down 0.07 per cent to Rs 73.75 on BSE. The company has posted a net loss to Rs 136.47 crore for the quarter ended June 30, 2008 compared with net profit of Rs 41.6 lakh for the same quarter ended in 2007. Total income increased 26.56 per cent to Rs 325.26 crore in Apr-Jun quarter of 2008 from Rs 257 crore in the corresponding quarter of previous year.


11:30 am: Dhandapani Finance shares were up 1.98 per cent to Rs 20.60 on BSE. The company has approved the issue and allotment of redeemable preference shares to Zwirn Pragati Capfin to the extent of 2,22,60,000 of Rs 10 each amounting to Rs 22.26 crore.


11:25 am: Valecha Engineering shares were up 4.59 per cent to Rs 153.80 on BSE. The company has recommended a bonus in the ratio of one share for every two shares held.


11:20 am: Indiabulls Real Estate shares were down 5.77 per cent to Rs 282.35 on BSE. The company’s net profit fell 3.88 per cent to Rs 6.80 crore for the quarter ended June 30, 2008 compared with Rs 7.08 crore for the same quarter ended in 2007. Total income increased 61.70 per cent to Rs 33.46 crore in Apr-Jun quarter of 2008 against Rs 20.69 crore in the corresponding quarter of previous year.


11:15 am: Arshiya International shares were up 4.20 per cent to Rs 174.95 on BSE. The company has approved in principle an investment to Rs 1,600 crore for the pan India Rail business in Arshiya Rail Infrastructure toward acquisition of 75 rakes, break vans, building of rail siding and other necessary infrastructure across the country.


11:10 am: Gujarat Mineral Development Corporation share’s were down 0.12 per cent to Rs 250.15 on BSE. The company's net profit rose 10.90 per cent to Rs 72.34 crore for the quarter ended June 30, 2008 compared with Rs 65.23 crore for the same quarter ended in 2007. Total income increased 24.56 per cent to Rs 286.44 crore in Apr-Jun quarter of 2008 against Rs 229.97 crore in the corresponding quarter of previous year.


11:05 am: Magnum Ventures shares were down 1.54 per cent to Rs 15.35 on BSE. With reference to the board meeting held on July 30, 2008, relating to raising of funds by means of a right issue of shares for the upcoming five star hotel project, Magnum Ventures has reported that the right issue has been decided as 1:2 (one equity share of Rs 10 each for every two equity shares held).


11:00 am: Sadhana Nitro Chem shares were up 1.65 per cent to Rs 52.50 on BSE. The company has recommended a dividend at Rs 1 (Previous year Rs 1.50) per equity share of Rs 10 each for the year ended March 31, 2008.


10:55 am: Indiaco Ventures shares were down 2.11 per cent to Rs 395 on BSE. The company has approved to the sale of investments held in the companies such as Verity Technologies and InfoDynamic Telesystems at a mutually agreed transaction price to IndiaCo Telecom , subsidiary of IndiaCo Ventures. The has also recommended for an additional investment of Rs 3.53 crore in InfoDynamic Telesystems through IndiaCo or its subsidiary Company IndiaCo Telecom.


10:50 am: Power Grid Corporation of India shares were down 0.56 per cent to Rs 97.55 on BSE. The company’s net profit fell 32.40 per cent to Rs 305.69 crore for the quarter ended June 30, 2008 as compared with Rs 452.18 crore for the same quarter ended in 2007. Total income increased 33.40 per cent to Rs 1407.91 crore in Apr-Jun quarter of 2008 against Rs 1,055.43 in the corresponding quarter of previous year.


10:45 am: Unity Infraprojects has bagged a contract valued at Rs 92 crore for construction of nine residential high-rise buildings at Hinjewadi, Pune from Flagship Infrastructure to be completed within 42 months.


10:40 am: Nissan Copper shares were up 2.13 per cent to Rs 33.50 on BSE. The company has recommended a dividend at the rate of 5 per cent on the paid-up capital (Rs 0.50 per equity share) for the financial year 2007-08.


10:35 am: Ansal Properties & Infrastructure’s net profit fell 40.47 per cent to Rs 19.40 crore for the quarter ended June 30, 2008 compared with Rs 32.59 crore for the same quarter ended in 2007. Total income increased 11.89 per cent to Rs 175.22 crore in Apr-Jun quarter of 2008 against Rs 156.60 crore in the corresponding quarter of previous year.


10:30 am: With reference to the news item appearing in a leading financial daily titled "Japan Takeda eyes Torrent Pharma".

Torrent Pharmaceuticals has denied that the promoters' intend to sell any stake to Takeda Pharmaceuticals Company, Japan. There is no move on the part of the Company or its promoters to sell stake, in part or in whole, to any player, national or global.


10:25 am: Financial Technologies India has acquired Apian Finance & Investment, a RBI Registered NBFC at a cost of Rs 1.50 crore. The company shares were down 0.29 per cent to Rs 1,482 .85 on BSE.


10:20 am: Suzlon Energy’s net profit fell 1.52 per cent to Rs 88.04 crore for the quarter ended June 30, 2008 compared with Rs 89.40 crore for the same quarter ended in 2007. Total income increased 73.40 per cent to Rs 1,496.28 crore in Apr-Jun quarter of 2008 against Rs 862.90 crore in the corresponding quarter of pervious year.


10:15 am: Avantel Softech has recommended a final dividend at the rate of 15 per cent for the financial year ended March 31, 2008. The company has also approved to change the name as Avantel Ltd. Avantel Softech shares were up 3.80 per cent to Rs 47.80 on BSE.


10:10 am: Suzlon Energy’s order book stands to Rs 16,491 crore comprising of Rs l,449 crore of domestic orders and Rs 15,042 crore of export orders.The aforesaid domestic order book position includes 55 numbers of 1500 kW Wind Turbine Generators aggregating to 82.5 MW capacity yet to be supplied to DLF Home Developers out of the total order size of 71 numbers of 1500 KW Wind Turbine Generators aggregating to 106.5 MW capacity.


10:05 am: Glodyne Technoserve has recommended a final dividend at the rate of 12 per cent on 11,015,243 equity shares of the face value of Rs 10 each. The company has also approved to increase the authorized share capital and borrowing limits. Glodyne Technoserve shares were down 1.16 per cent to Rs 471.20 on BSE.


10:00 am: Companies scheduled to announce earnings for the quarter / year ended March 31, 2008 today are --- Aditya Birla Nuvo, Adlabs Films, Amtek Auto, Apollo Hospitals Enterprise, Arivind, Bajaj Hindusthan, Balrampur Chini Mills, BASF India, BEML, Bharat Forge.


The Bombay Stock Exchange's 30-share Sensex Thursday opened at 14,359.48, up 72.27 points or 0.51 per cent from the previous day's close. The high in the few minutes of trade was 14,360.21, and low 14,205.50. National Stock Exchange's 50-stock Nifty opened at 4314.35, up 0.80 points.
thanks to :- economictimes.indiatimes.com

SEBI settles case against Anagram in IPO scam

MUMBAI: Market regulator SEBI on Monday settled a case against Anagram Securities relating to alleged financing of key operators in the infamous IPO scam after the company paid Rs 10,000.

The case has been settled through a consent order passed by the SEBI, but it does not restrict the market regulator from taking enforcement action like commencing or reopening of the pending proceedings against the firm.

Consent means a settlement between two parties without admitting or denying the guilt.

SEBI can reopen the pending case, if it finds that any representation made by the firm in the consent proceedings are subsequently discovered to be untrue or it has breached any of the clauses of undertakings during the proceedings.

Charge against Anagram Securities was that it acted as a financier to the key operators for making applications for public offers in fictitious and benami names during 2003-05.

The infamous 2003-05 IPO scam relates to corning of shares, meant for retail investors, through fictitious applications by many entities in public offers of firms like IDFC, Jet Airways and Suzlon.

The market regulator passed the order on the recommendations of its High Powered Advisory Committee.

Another 500-point rally for Sensex

The BSE index vaults 523 points or 4% to end at 13,635. This came on top of yesterday`s 536-point gain, marking one of its fastest advance in recent memory.

The bulls continued their turnaround story of this week on Friday, with the benchmark indices notching up strong rally for the second consecutive day. Overnight gains in the US stocks, coupled with sharply lower crude oil prices and stable inflation were the main drivers behind the rally. What's most interesting about today's advance was it came despite weakness across most Asian markets and soft opening in European markets. The US market futures too were down, pointing to lower opening after top companies like Google, Microsoft, AMD and Merrill Lynch came out with less than expected results.

Coming back to our market, the BSE Sensex rallied 523 points or 4% to end at 13,635. This came on top of yesterday's 536-point (4.3%) gain, marking one of its fastest two-day advance in recent memory. The benchmark index recovered from the weekly low of around 12,514, which was struck on July 16. The index rose by 1.15% during the week after last week's modest gains. The NSE Nifty today jumped 3.7% to close at 4092, after gaining 3.4% yesterday. The index was up 1.2% during the week and rebounded from the week's low of 3790. Gains in the Small-Cap and Mid-Cap shares were relatively muted today.

Among the sectoral indices, the BSE Bankex led from the front, surging by 8%. This was followed by Real Estate index (5.5%), Oil & Gas (4.3%), Capital Goods (3.6%), Power (3.4%), FMCG (2.8%) and Auto (1.8%). The BSE IT index was by far the worst performer, tumbling by 2.6%, while the Metal index was down 0.25%.

Within the Sensex, the prominent gainers were ICICI Bank (12%), HDFC (9.5%), HDFC Bank (7.9%), Jaiprakash Associates (7.7%), Bharti Airtel (7.1%), DLF (7%), REL INFRA (6%), SBI (5.9%), BHEL (5.35%), ITC (5.3%) and NTPC (5.2%). Reliance Industries, ONGC, L&T, RCOM and Maruti gained more than 4% each. Tata Motors, TCS, Hindalco and Cipla posted modest gains. Among the top losers were Satyam (7.5%), Wipro (3.75%), Ranbaxy (3.3%), Tata Steel (2.4%) and Infosys (2.2%).

Outside the main indices, the prominent gainers included IDFC (15.5%), Patel Engineering (10.7%), Indian Bank (10%), Essar Shipping (10%), GSS America (10%), Jet Airways (9.4%), Gujarat NRE Coke (9%), Yes Bank (8.9%), Axis Bank (8%), Ansal Infra (7.8%), Indiabulls Realty (7.6%), PNB (7.6%), Balaji Tele (7.5%) and Nagarjuna Construction (7%).

The big losers included Kirloskar Bros (9.5%), Sadbhav Engineering (7.9%), Infotech Enterprises (7.8%), Mphasis (7.3%), Tata Chemicals (6.2%), HCL Tech (5.85%), Dabur Pharma (5.4%), KPIT Cummins (4.4%), Jain Irrigation (4.4%), NIIT Tech (4.3%), Prajay Engineers (4.2%), Bajaj Hindusthan (3.8%), Entertainment Network (3.8%), Astra Micro (3.6%), Shiv-Vani Oil (3.5%), Ratnamani Metals (3.4%) and Piramal Lifescience (3.3%).

Source : India Info Line

BGR Energy hits 20% upper circuit

MUMBAI: BGR Energy Systems hit 20 percent upper circuit on Thursday, a day after it bagged an EPC contract worth Rs 4,900 crore from Rajasthan Rajya Vidyut Utpadan Nigam for 2 x 600 MW Kalisindh Thermal Power Project.

At 3pm, the stock was at Rs 297.35, up Rs 49.55 on volume of 18,53,451 shares. The scrip has advanced 23.30 per cent in the past one week.

In June, the company had secured a similar contract from Tamil Nadu Electricity Board for 1x600 MW project.

The order book of the company now stands over Rs 11,000 crore, which includes BoP contracts of 500 MW and two EPC contracts of 600 MW units and contracts of oil& gas equipment sector projects.

The company had a great listing on the exchange in January this year. The scrip listed at Rs 840 on the NSE, a premium of Rs 360 or 75 per cent to the issue price of Rs 480 per share. But due to steep correction in shares prices of power companies, BGR Energy shares fell to trade at 50 per cent discount to issue price.

SpiceJet falls 15% on BSE

MUMBAI: Shares of private carrier SpiceJet on Monday dropped about 15 per cent after its Executive Chairman and CEO Siddhanta Sharma announced his resignation.


The scrip touched an intra-day low of Rs 27.60, registering a 14.81 per cent fall, over Friday's close of Rs 32.40.

At the end of the day's trade, the scrip settled at Rs 27.95, a 13.73 per cent decline, after touching the day's high of Rs 33.25.

The board of the company has accepted the resignation of Sharma, who would leave SpiceJet for personal reasons effective July 31, the low cost airline said in a statement on Sunday.

Recent reports suggest that the private carrier is in touch with various investors, including billionaire Wilburn Ross, for a possible stake sale.

Earlier, SpiceJet had announced plans to raise 100 million dollars through stake sale. The airline was also linked with Vijay Mallya-promoted Kingfisher Airline for a share swap merger.
thanks to : economictimes.indiatimes.com

DLF buyback may not be good for shareholders

NEW DELHI: DLF, country’s largest real estate developer on Thursday announced share buyback at Rs 600 per share. The company plans to spend around Rs 1,100 crore in the exercise. Given the background of the announcement and company’s financial position, the move seems to be a knee jerk reaction by the company to prop-up its share price.

DLF has been one of the worst losers in the current market meltdown. The stock has declined by around 60 per cent since the beginning of current calendar year against 32 per cent decline in Sensex during the period. Even after the recent recovery its stock price, DLF is still trading at a 15 per cent discount to its IPO offer price of Rs 525. This put company in an embarrassing situation with regards to retail shareholders.

Though it is debatable as to how much support the buyback will provide to DLF stock price, the move goes against the long-term interest of the company’s shareholders. DLF’s core operations continue to lose cash and company is sustaining its operations though IPO money raised last year, fresh borrowing and raising capital by selling equity in various special purpose vehicles.

During the year ended March 2008, the company had negative cash flow of over Rs 2,000 crore from its operations. The cash shortfall was met through IPO proceeds and raising fresh debt. By the end of FY08, the company has total debt of around Rs 12,600 crore.

This makes case for cash conservation rather than pleasing shareholders with share buyback. More so given the fact that company continues to seek investments from private equity players to funds its various projects. Infact, one of main objectives of the DLF IPO was to fund its various ambitions in real estate space besides allowing it to retire debt and shore up its net worth.

This helped it to reduce its leverage ratio that has touched a high of around 3 by the end of FY07. The cash outflow due to share buy will partly undo this financial turnaround achieved by the company in last one year. This may hurt the company prospects in the medium term given the fact that credit market is tightening the world over and real estate prices are expected to fall.

And its uncertain how much influence can a buyback programme worth 1.5 per cent of DLF current market cap can have on its stock price.

Lotus Eye lists below IPO price on BSE, higher on NSE

MUMBAI: Lotus Eye Care Hospital on Friday listed at Rs 40 on NSE, a premium of 5.26 per cent or Rs 2 against the issue price of Rs 38.

However, with the market moving down, the stock too moved lower to Rs 37.80. It touched a high of Rs 40 and low of 32.50 in trade so far. Around 29,22,041 shares have been traded on the NSE counter.

On BSE, the stock opened at Rs 35. It hit a high of Rs 38.45 and low of Rs 32.05. At 10:12 am, the stock was Rs 37.70 on volume of 35,94,273 shares.

The hospital is based in the south Indian city of Coimbatore. The company has raised 38 crore rupees through its 10-million share issue. The issue was subscribed 1.18 times.

The company will use the proceeds to part-finance expansion of its existing units and to set up new units in Chennai and Bangalore. Lotus' presence is currently concentrated in Coimbatore, Salem and Tirupur, all in Tamil Nadu.

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thankes by :- economictimes.indiatimes.com

Amara Raja gains 3% after BSE block deal

MUMBAI: Auto and industrial battery maker Amara Raja Batteries extended gains after a block deal of about 3 million shares or 5.2 percent of its equity was struck on theBSE, at Rs 132 a share. Amara Raja's shares were up 3 per cent after the deal. At 11:20 am, the shares gave up some gains and were at Rs 135, up 1.28 per cent.

India's days of plus 9% growth over: Citi

NEW DELHI: India's days of more than nine per cent economic growth are over and the country has lost the opportunity to sustain those levels as well, believes global financial services major Citigroup.

"...the days of 9 per cent plus growth are over and we believe that India has lost the opportunity to sustain those levels for now, and we expect growth to come in around 7 per cent plus levels in FY'2009-10," Citigroup, in its latest economic and market analysis report for India, stated.

The report pointed out that further rate hikes do pose downside risks to Citi's FY'09 and FY'10 GDP estimates of 7.7 per cent and 7.9 per cent, respectively.

Country's industrial growth has plunged 3.8 per cent in May, as compared to 10.6 per cent a year-ago, due to a poor show of manufacturing and electricity sector.

According to government data released today, industrial output, as measured by Index of Industrial Production, grew by just five per cent in the first two months of this fiscal, against 10.9 per cent during the same period last year.

However, in the coming years Citigroup does not expect trends to remain as favourable as the impact of monetary tightening kicks in.

"Our FY'09 and FY'10 GDP estimates of 7.7 per cent and 7.9 pert cent incorporate a deceleration in investments to 10.4 per cent and 7.9 per cent, respectively," Citi economist Rohini Malkani said in the report.

However, if the oil prices continue to face upward review, with the ongoing adjustment in other market determined fuels along with the pass through impact on manufactured products, it would result in edging the inflation even higher, the report added.

This would warrant further tightening, which coupled with increasing input costs, would slow down investments further, Malkani added.

thanks by :- economictimes.indiatimes.com

GAIL to expand petrochem business

State-run GAIL will focus on expanding its petrochemicals business and will raise the capacity of its plant in Pata, in the Auraiya district of Uttar Pradesh, Chairman and Managing Director, U.D. Choubey said.


"We have decided to expand the Pata plant capacity to 500,000 tonne per annum by installing a sixth furnace at the gas cracker unit with an estimated investment of around Rs 1 billion," Choubey said in an interview.

After the completion of its 100,000 tonne per year new high-density polyethylene plant late last year, the polymer production capacity of the Pata plant is currently at 410,000 tonne.

The cracker plant's ethylene output is likely to go up to 440,000 tonne in another six months utilising 10 per cent more than the designed capacity due to the installation of the fifth furnace, Choubey said.

Choubey said the US-based process licensor, Stone & Webster has suggested that installation of a sixth furnace was necessary for debottlenecking the plant capacity to 500,000 tonne.

GAIL also plans to increase its share in the lucrative petrochemical business, which contributed nearly 32 per cent to its bottomline in the financial year ended March, Choubey said. During 2007-2008, GAIL's polymer production rose 9 per cent to 386,000 tonne as against 354,000 tonne in the previous year.

Polymer sales increased 13 per cent to 391,000 tonne from 347,000 tonne year ago. GAIL also plans to set up two mega petrochemical plants, one each in India and overseas.

Choubey said the company has zeroed in on five options for the overseas plant, Qatar, Iran, Algeria, Nigeria and Russia.

Choubey had earlier said the company along with Reliance Industries is pitching for a mega petrochemical plant in Qatar, at an estimated investment of around $1.2 billion.

In India, he said the company is planning a 1-million tonne petrochemical unit at Visakhapatnam through a five-way joint venture. The other joint venture partners in the project are Hindustan Petroleum, Oil India, Mittal Energy and French oil major Total.

He said GAIL was also seeking equity participation in the proposed $7.5 billion Iran-Pakistan-India gas pipeline project, as it will give the company exposure in trans-national pipeline projects.

A special purpose vehicle is likely to be set up for building the gas pipeline from the Iran-Pakistan border to the Pakistan-India border. Iran has already started construction of the pipeline within its territory.

The 2,100 km pipeline tri-nation will originate in Iran's port city of Assaluyeh and pass through that country (1,340 km) and Pakistan before reaching the Indian border.

GAIL's equity participation in the pipeline will bring in transparency in the transportation tariff of the gas and also give the company experience of engagement in trans-national projects, Choubey said.

GAIL is looking to participate in other international pipeline projects like the $13 billion Trans-Saharan gas pipeline which would supply gas from Africa to the European market.

LIC losing ground in overseas market

NEW DELHI: Country's largest life insurer LIC is losing business in the overseas market year after year as it has failed to attract new customers amid stiff competition.

The first premium collection from foreign operations which stood at Rs 123.41 crore in 2004-05 declined to Rs 120.8 crore in the following year and further to Rs 108.67 crore for the year ended March 2007, official sources told media.

Thus, the new business in the overseas market declined by nearly 12 per cent in a span of three years, they said.
The decline in the first premium income in successive years is mainly because of failure of marketing strategies to attract new customers amid stiff competition, the sources said.

The sources also attributed the decline to reduction in sale of single premium policies by LIC Bahrain for 2004-05.
However, on the back of old policies, renewal premium witnessed a growth. During 2004-05, LIC's operations abroad earned renewal premium of Rs 235 crore, which increased to Rs 292 crore the next year. Renewal premium stood at Rs 341 crore in 2006-07.

Despite falling first premium income, LIC has charted aggressive foreign expansion plan with a view to increase bagging of new policies.

The insurer is currently exploring opportunities for expansion in new territories, including Asian countries such as Singapore, the sources said.

Besides, it has formed a new joint venture company Saudi Indian Co for Cooperative Insurance in Saudi Arabia. The venture has already received certificate of registration.

At present, LIC has operation in countries including UAE, Bahrain, Oman, Nepal and USA. In the domestic market it continues to be a market leader with first year premium collection of Rs 59,182 crore in 2007-08.

However, in terms of year-on-year growth, new business grew by just 5.8 per cent in 2007-08, compared to a massive 118 per cent increase in 2006-07. During 2006-07, LIC earned first premium income of Rs 55,934 crore, against Rs 25,645.19 crore in the previous year.

Indian Stocks Gain Most in 3 Months, Led by Infosys, Reliance

By M.C. Govardhana Rangan

July 2 (Bloomberg) -- Indian stocks rose for the first day in four, led by software exporters including Infosys Technologies Ltd. on the expectation a weakening rupee will boost overseas earnings.

The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 702.94, or 5.4 percent, to 13,664.62, the biggest jump since March 25. India's key benchmark has plunged more than 35 percent from its record in January and India's overall market value yesterday slipped below $1 trillion for the first time in a year.

``From a three-year perspective, these levels could give a decent return even if the economy grows at around 6 percent'' a year, said Tridib Pathak, chief investment officer at Lotus India Asset Management Co., which manages assets equivalent to about $1.8 billion.

Infosys Technologies, India's second-largest software exporter, rose 6 percent, the most in more than two months, to 1,820.6. Reliance Industries Ltd., which gets more than half its revenue from overseas markets according to data compiled by Bloomberg, gained 4.9 percent, the most in more than three months, to 2,143.1.

Satyam Computer Services Ltd., the nation's fourth-largest software exporter, rose 7.2 percent to 463.3, the highest since April. 29, after the company said it aims to have $1 billion of sales from Europe.

U.S. Revenue

Indian technology firms such as Infosys get more than 50 percent of their revenue in U.S. dollars. A stronger dollar increases the amount of Indian currency they receive. India's rupee fell 7.3 percent last quarter, the biggest decline in a decade. The currency yesterday fell to the lowest in 15 months as crude imports widened the trade deficit to a record.

India's market value has lost $919 billion from its record on Jan. 7 as overseas equity investors pulled $6.37 billion of funds out of the country so far this year. Net sales accelerated after the central bank raised interest rates twice last month because oil prices pushed inflation to a 13-year high.

The S&P CNX Nifty Index on the National Stock Exchange today gained 196.60, or 5.1 percent, to 4,093.35.

DLF Ltd., the nation's biggest real estate developer, jumped 15 percent, the most in nine months, to 423.95 after the company said it planned to consider a share buyback on July 10.

Banks Rebound

Bank shares led by ICICI Bank Ltd. and State Bank of India, which have lost more than half their value since peaking in January, gained after early losses on speculation the fall was overdone. ICICI Bank, the second largest, advanced 5.4 percent at 621.05 rupees, and State Bank, the largest, rose 5.2 percent to 1,078.35 rupees.

The following were among India's most active stocks. Tickers are in brackets behind company names.

Mundra Port & Special Economic Zone Ltd. (MSEZ IN): The operator of the largest cargo terminal outside state control, rose 3.15 rupees, or 0.7 percent to 481.3, after falling 19 percent following a Press Trust of India report that the Supreme Court had barred development of its land.

Ashapura Minechem Ltd. (ASMN): The miner fell 10.4 rupees, or 7.6 percent, to 126.75, sliding for the fifth straight day, after it said there were administrative delays in getting permission to export and that bauxite volumes may decline.

To contact the reporters on this story: M.C. Govardhana Rangan in Mumbai at grangan@bloomberg.net

India’s Sensex drops 1,408 points on session

As financial markets in the United States took the day off to celebrate the birthday of Rev. Martin Luther King Jr., equities markets in the Asia-Pacific region plunged on growing worries that the US economy is either already in or will soon enter a recession. Markets in Hong Kong and in India dropped more than 1,000 points each. The Hang Seng fell 1,383 points, or 5.49 percent to 23,818.86, its biggest decline since the September 11, 2001 terrorist attacks in the US. The Sensex was down 7.41 percent, losing 1,408 points to 17,605.35. Elsewhere in the region, Taiwan’s Taiex saw the least of the losses with a decline of 0.91 percent to 8,110.2. Australia’s markets extended their losses to an eleventh consecutive session when the S&P/ASX200 fell 2.9 percent to 5,580.4 and the Sydney Ordinaries dropped 2.91 percent to 5,630.9. In South Korea, the Kopsi index was 2.95 percent lower to 1,683.56. The Shanghai Composite was down 5.14 percent to 4,914.44 as it fell by 266 points while the FTSE Straits Times Index fell 6.03 percent to 2,917.15.

Tokyo’s markets also saw steep declines. The Nikkei 225 lost 535 points in a 3.86 percent loss to 13,325.94 while the Topix index was down 3.56 percent to 1,293.74 and the Mothers market of small and mid-caps dropped 3.47 percent to 656.77. Not only were investors worried about the prospect of a recession in the United States, but government reports showed that the economy had declined in several of Japan’s regions and that condominium sales in the Tokyo area were down by 20 percent in December from the previous year at the same time. In this environment, the real estate sector was lower, with Mitsubishi Estate (TYO: 8802) down 3.9 percent to ¥2,445 while Mitsui Fudosan (TYO: 8801; NAS: MDSFF) fell 4 percent to ¥2,165. Banks also saw losses on the session. Sumitomo Mitsui Financial Group (TYO: 8316) was 5.2 percent lower to ¥759,000 and Mitsubishi UFJ (TYO: 8306; NYSE: MTU) dropped 6.2 percent to ¥915.

Europe’s markets were significantly lower as well, with the FTSE Eurofirst 300 down 5.33 percent to 1,286.14. The Paris CAC-40 fell 6.83 percent to 4,744.45 and the Dax was 7.16 percent lower to 6,790.19 while the IBEX dropped 7.36 percent to 12,650.5. The Dax and the CAC-40 each had only one winner on the day. In Frankfurt, drug maker Schering (FWB: SCH) added 0.13 percent to €103.37, while in Paris Peugeot (Euronext: UG; OTC: PEUGY) was 2,69 higher to €48.82. The Steel sector saw declines. ThyssenKrupp (FWB: TKA; LSE: THK) was down 8.91 percent lower to €32.62 while Mittal Steel (Euronext: MT; NYSE: MT) fell 11.30 percent to €37.93 for the worst performance of the day on the CAC-40. Among insurers, Allianz (FWB: ALV; NYSE: AZ) was 9.99 percent lower to €37.93 and Axa (Euronext: CS; NYSE: AXA) dropped 10.08 percent to €22.12.

London’s markets also lost ground. The FTSE 100 fell 323 points for a 5.48 percent loss to 5,578.2 while the FTSE 250 dropped 419 points on the way to a 4.33 percent decline to 9,260.6. Despite the general losses, Northern Rock managed a 46.12 percent gain to 94.25p on the news that the UK government will guarantee a sale of bonds to try to attract bidders for the bank. Other gainers on the day included house builder Taylor Wimpey (LSE: TW), which added 1.44 percent to 183.7p and property developer and investor Hammerson (LSE: HMSO), which was up 0.19 percent to £10.56. Miners were lower after BHP Billiton (LSE: BLT; ASX: BHP; NYSE: BHP) declined to make another bid for Rio Tinto (LSE: RIO). BHP had the worst day on the 100 as it fell 10.38 percent to £12.35 while Rio Tinto was down 10.04 percent to £42.28. Kazakhmys (LSE: KAZ) was 9.87 percent lower to £10.41 and Anglo American (LSE: AAL) dropped 9.19 percent to £23.53.