Markets end in the red

STOCK MONITOR

Number of up/down move2/3  The pharma scrip declined 6.32 per cent last week to close at Rs 810.67. The stock had touched a high of Rs 881.73 for the week, before coming down on profit-booking.  Dr Reddy's Laboratories, which has a drug manufacturing unit in China, plans to start drug development and research in that country in the next couple years.  Dr Reddy's had in 2000 signed an agreement with the Kunshan Double-Crane Pharmaceutical Company of Jiangsu province, China, and Canada Rotam Enterprises Company to establish a joint venture, Kunshan Rotam Reddy Pharmaceutical Co, in China.  Dr Reddy's has a 51 per cent stake in that company at an investment of $5,610,000. The Chinese venture produces bulk formulations, tablets, capsules, ointments and gels. 
 

TATA STEEL
Last week's close (Rs)	361.25
Prev. week's close (Rs)	385.28
Week's high (Rs)	394.00
Week's low (Rs)	353.58
Last week's ave. daily turnover (Rs cr)	317.06
Prev. week's ave. daily turnover (Rs cr)	400.98
Futures close	NT
Number of up/down move	2/3

 The steel stock declined 6.24 per cent last week to close at Rs 361.25. The scrip had moved up to Rs 394 during the week, before coming off highs.  The company announced last week that no price hikes were in the offing despite the Steel Authority of India (SAIL) and Essar Steel raising their prices.  The ruling price for HR coils is in the region of Rs 28,500 a tonne in the domestic market. Tata Steel had cut prices by Rs 2,000 per tonne in September 2004 and had committed to maintaining the status quo on prices till March 2005.  Despite the company holding on to the reduced pipeline, some other producers, which had reduced prices along with the company earlier, had increased prices twice since then. 
 

ACC
Last week's close (Rs)	350.43
Prev. week's close (Rs)	338.68
Week's high (Rs)	358.90
Week's low (Rs)	332.15
Last week's ave. daily turnover (Rs cr)	111.49
Prev. week's ave. daily turnover (Rs cr)	70.87
Futures close	NT
Number of up/down move	3/2

 The cement major gained 3.47 per cent last week to close at Rs 350.43. Cement stocks moved up on hopes that prices would rise further next week, due to strong demand from the construction sector.  Cement makers in Gujarat and Mumbai had raised prices recently. Cement companies, including ACC, had reported a surge in dispatches for December 2004. ACC's cement dispatches climbed 14.3 per cent in the month to 1.348 million tonnes.  Analysts feel that favourable demand-supply dynamics should support cement prices going ahead. The mood in the cement sector was further buoyed after two foreign brokerages went overweight on the cement sector. 
 

MARUTI UDYOG
Last week's close (Rs)	440.15
Prev. week's close (Rs)	461.58
Week's high (Rs)	476.75
Week's low (Rs)	430.60
Last week's ave. daily turnover (Rs cr)	128.69
Prev. week's ave. daily turnover (Rs cr)	87.75
Futures close	NT
Number of up/down move	2/3

Automobile manufacturing major, Maruti Udyog, slipped on the bourses last week, along with all major scrips as Sensex nosedived after an unprecedented rise in the past few months. The stock saw a price fall of 4.6 per cent as market players rushed in to book profits, unimpressed by good sales figures.  Meanwhile, volumes rose 46.5 per cent at the exchanges. The price of the stock fell despite good sales numbers in December 2004 when the company's sales were up 18 per cent to 43,828 cars against the year-ago period.  Despite the loss of volumes in the A segment, the company made it up with a convincing gain in the B segment.  

Stock to watch 

PANTALOON RETAIL
Last week's close (Rs)	742.08
Prev. week's close (Rs)	731.68
Week's high (Rs)	828.50
Week's low (Rs)	697.50
Last week's ave. daily turnover (Rs cr)	10.41
Prev. week's ave. daily turnover (Rs cr)	6.04
Futures close	NT
Number of up/down move	3/2

The stock is likely to be in focus after the company sold a 4.98 per cent stake (953,000 shares) preferentially to media giant Bennett, Coleman and Company (BCCL) for Rs 70 crore.

According to the company, the deal was just a financing arrangement and Pantaloon had no plans to link itself with BCCL. Pantaloon's retail chain is on an expansion spree and the deal with BCCL is expected to help the company meet its fund requirements.

The company plans to add more than 1.5 million sq ft of retail space over the next 18 months with a capital expenditure of Rs 150 crore.

 

Stock of the week 

GUJARAT AMBUJA CEMENT
Last week's close (Rs)	426.80
Prev. week's close (Rs)	402.28
Week's high (Rs)	440.15
Week's low (Rs)	402.85
Last week's ave. daily turnover (Rs cr)	62.15
Prev. week's ave. daily turnover (Rs cr)	23.91
Futures close	NT
Number of up/down move	4/1

Cement major Gujarat Amuja was one of the few stocks that held ground as the markets went into a tizzy last week. The stock was up 6.1 per cent at the bourses as volumes jumped 46.5 per cent.

Strong cement dispatch numbers for December, 2004, seemed to be a major reason for the performance (cement dispatches rose 9.4 per cent y-o-y during the month).

Better realisations in the domestic market also appear to be a key driver for better earnings growth going forward.

Moreover, lower fuel costs, along with restructuring activities at tsunami-hit areas, will enhance profitability of cement companies.

 

Mid-cap mover 

BALAJI TELEFILMS
Last week's close (Rs)	100.45
Prev. week's close (Rs)	120.85
Week's high (Rs)	129.50
Week's low (Rs)	98.25
Last week's ave. daily turnover (Rs cr)	9.63
Prev. week's ave. daily turnover (Rs cr)	15.45
Futures close	NT
Number of up/down move	2/2

Balaji Tele had a topsy turvy week and oscillated between a weekly high of Rs 129.5 and a low of Rs 98.25. In the early half of the week, the stock was riding high after declaring an interim dividend of Rs 16 per share (800 per cent on an equity share of paid up value of Rs 2), aggregating Rs 82.43 crore.

However, the market fall in the latter part of the week saw the scrip plummet and end the week with a 16.8 per cent decline over its previous weekly close. Weekly average volumes at the counter, too, slipped 33.3 per cent.

 

Small-cap mover 

SHRIRAM INVESTMENTS
Last week's close (Rs)	39.38
Prev. week's close (Rs)	35.60
Week's high (Rs)	44.10
Week's low (Rs)	33.40
Last week's ave. daily turnover (Rs cr)	0.99
Prev. week's ave. daily turnover (Rs cr)	0.19
Futures close	NT
Number of up/down move	3/2

The stock gained 10.62 per cent last week to close at Rs 39.38. The upsides followed reports that ChrysCapital, Mauritius, will pick up 20.6 per cent stake each in the truck financing firm Shriram Investments (SIL) and group companies, Shriram Transport Finance Company (STFC) and Shriram Overseas Finance (SOFL) for about Rs 100 crore through a preferential issue.

The total investment could go up by an additional Rs 20 crore if ChrysCapital exercises its option to subscribe to an additional 4.34 per cent of equity in SIL and STFC. This would be ChrysCapital's largest investment in India.

According to Shriram group chairman R Thyagarajan, the three companies would also be merged in the next two years.