| The trend was set early in the week as the indices snapped their three-session winning streak on the back of profit-booking. |
| However, the markets bounced back on Tuesday as renewed buying perked up the sentiment. Both local and foreign funds led buying on Wednesday, as the Sensex closed at a new peak of 6194.11. |
| However, that was to be the last of bulls' gains for the week as massive profit-taking dragged the markets down on Thursday. Heavy selling continued on the last session of the week, pushing the Sensex below the 6,000 mark. |
| MTNL Last week's close (Rs) 141.20 Prev. week's close (Rs) 145.75 Week's high (Rs) 157.48 Week's low (Rs) 139.65 Last week's ave. daily turnover (Rs cr) 56.76 Prev. week's ave. daily turnover (Rs cr) 70.26 Futures close NT Number of up/down moves 2/3 |
| MTNL was under pressure following the cabinet decision to defer the hike in the foreign investment limit in telecom. |
| Deputy Prime Minister L K Advani directly intervened to defer a decision on raising the ceiling on foreign investment in telecommunications companies from 49 per cent to 74 per cent during a Cabinet session on Friday. |
| This is the third time a decision to hike the foreign investment cap in the sector has been put off over security concerns. |
| However, analysts hope that security-related concerns will be put to rest by a proposal to allow only a hike in the foreign investment cap while keeping the FDI limit at 49 per cent. |
| DIGITAL GLOBALSOFT Last week's close (Rs) 784.80 Prev. week's close (Rs) 764.13 Week's high (Rs) 818.45 Week's low (Rs) 748.03 Last week's ave. daily turnover (Rs cr) 33.38 Prev. week's ave. daily turnover (Rs cr) 22.50 Futures close NT Number of up/down moves 5/0 |
| Digital GlobalSoft was a gainer amid falling stocks all around, driven primarily by its stellar results. The scrip kept itself above the red to end the week with a 2.7 per cent gain over its previous weekly close. |
| The company reported a net profit of Rs 35.55 crore for the quarter ended December 31, 2003, up 31.60 per cent, against Rs 27.01 crore for the same quarter last year. |
| Total income for the quarter under review stood at Rs 165 crore, up 46.03 compared with Rs 113 crore in the same quarter a year earlier. |
| News of Merrill Lynch Capital Markets Espana SA SV acquiring a stake in the company also buoyed the scrip. Merrill Lynch acquired 89,177 shares, or 0.26 per cent stake in the company, on January 7, through an open market operation. |
| Post-acquisition, Merrill Lynch Capital Market Espana holds 17,43,709 shares or 5.22 per cent in Digital GlobalSoft. Analysts expect the company to grant a hike in the buyout price if investors ask for it through the reverse book-building process. |
| HERO HONDA Last week's close (Rs) 462.70 Prev. week's close (Rs) 483.15 Week's high (Rs) 498.50 Week's low (Rs) 450.00 Last week's ave. daily turnover (Rs cr) 99.63 Prev. week's ave. daily turnover (Rs cr) 85.12 Futures close NT Number of up/down moves 3/2 |
| Hero Honda recorded gains on Thursday after the company's December quarter results fell in line with street expectations. |
| However, Friday's downturn affected the scrip which finally ended the week with a 4.23 per cent loss over its previous weekly close. |
| The company posted a net profit of Rs 202.65 crore for the quarter ended December 31, 2003, compared to Rs 152.80 crore for the quarter ended December 31, 2002, an increase of 32.62 per cent. |
| Total income increased from Rs 1397.82 crore in the December quarter of 2002 to Rs 1625.89 crore in the quarter ended December 31, 2003. |
| The company witnessed a 26.6 per cent jump in volumes accruing from the favourable festive season. For the quarter, Hero Honda registered sales of 5,72,196 bikes as compared to 4,52,050 units in the same quarter last year. |
| The company has announced a dividend of Rs 10 per share, which would involve a payout of Rs 225 crore (including dividend tax). |
| MARUTI UDYOG Last week's close (Rs) 400.73 Prev. week's close (Rs) 439.83 Week's high (Rs) 454.13 Week's low (Rs) 396.80 Last week's ave. daily turnover (Rs cr) 298.35 Prev. week's ave. daily turnover (Rs cr) 214.59 Futures close NT Number of up/down moves 2/3 |
| Maruti Udyog was depressed last week, ending 8.9 per cent lower than its previous weekly close. The scrip had witnessed a bout of action mid-week on rumours that the government would be offering its remaining stake in the company to the public at a premium to the market price. |
| Volumes at the counter were around 29.7 lakh shares on the BSE on Thursday. After debuting at Rs 157.40 on the exchanges, the scrip has gained over 180 per cent so far. |
| Marketmen are also optimistic on the results front, with the company expected to post its third-quarter results shortly. |
| HDFC BANK Last week's close (Rs) 381.23 Prev. week's close (Rs) 367.75 Week's high (Rs) 403.50 Week's low (Rs) 361.15 Last week's ave. daily turnover (Rs cr) 46.39 Prev. week's ave. daily turnover (Rs cr) 27.71 Futures close NT Number of up/down moves 3/2 |
| HDFC Bank was one of the only few stocks that registered gains despite the whole market falling by the end of last week. |
| The scrip recorded a modest increase in price by 3.7 per cent. Volumes at the bourses surged by 67.41 per cent amidst buying interest. |
| The surge was on the news of the announcement made by the government after it hiked the foreign direct investment (FDI) limit in private sector banks to 74 per cent. |
| However, dealers say that a large portion of the volumes was driven by players who came in to make a quick buck. The scrip has risen by over 31 per cent in the last two months with several sections of players showing interest. |
| RELIANCE INDUSTRIES Last week's close (Rs) 580.93 Prev. week's close (Rs) 577.28 Week's high (Rs) 604.58 Week's low (Rs) 568.25 Last week's ave. daily turnover (Rs cr) 582.88 Prev. week's ave. daily turnover (Rs cr) 579.74 Futures close NT Number of up/down moves 3/2 |
| RIL managed to hold ground in a market that saw a correction in th e last two trading sessions. The stock rose a negligible 0.63 per cent and volumes, too, recorded a marginal increase of 0.54 per cent. |
| Reliance went ahead with its first overseas acquisition. The group has acquired the US-based Flag Telecom for $211 million (about Rs 950 crore). |
| The amalgamation between Reliance subsidiary Reliance Gateway Net and Flag Telecom was approved by Flag Telecom's shareholders. |
| The move has helped Reliance take a step forward in establishing itself as a world-class telecommunications player. |
| The deal will get Reliance more than 180 Flag customers, many of which are among the world's leading telecom and Internet players. |
| ONGC Last week's close (Rs) 815.08 Prev. week's close (Rs) 913.30 Week's high (Rs) 921.25 Week's low (Rs) 801.53 Last week's ave. daily turnover (Rs cr) 182.42 Prev. week's ave. daily turnover (Rs cr) 271.15 Futures close NT Number of up/down moves 0/5 |
| ONGC moved with the market flow, registering a decline in stock price by 10.75 per cent. Volumes, too, saw a dip by 32.72 per cent. The news of sops from the government is said to have had an impact on the stock. |
| With the elections around the corner, the government does not want to increase the price of petroleum products after a series of increases (though the price of crude hit a nine-month high of $31.50). |
| This will have an impact on the earnings of the stock. International crude prices have risen 19 per cent whereas domestic petrol and diesel prices have risen only about 8 per cent. |
| Stock of the week |
| GAIL Last week's close (Rs) 228.93 Prev. week's close (Rs) 270.83 Week's high (Rs) 273.75 Week's low (Rs) 227.10 Last week's ave. daily turnover (Rs cr) 485.82 Prev. week's ave. daily turnover (Rs cr) 440.28 Futures close NT Number of up/down moves 2/3 |
| GAIL crashed 15.47 per cent last week on profit-booking after the recent uptrend at the counter. The stock had moved up in recent weeks after the government announced its decision to sell off 10 per cent equity of the company along with that of ONGC. |
| The sale is expected to be completed by March 31, 2004. The government has a 67 per cent stake in GAIL. Investors are said to be encashing their holdings in the company for building up funds to participate when the government sells its holdings. |
| Meanwhile, an Indo-Korean consortium comprising ONGC Videsh (OVL), GAIL, Daewoo International Corp and Korea Gas Corp announced the discovery of a giant gas field in an exploration block in Myanmar. |
| RECAP: MARUTI UDYOG Profit booking led to declines at the counter, as the scrip closed 9.01 per cent lower at Rs 400.30 |
| Stock to watch |
| ESCORTS Last week's close (Rs) 96.98 Prev. week's close (Rs) 109.25 Week's high (Rs) 113.33 Week's low (Rs) 93.75 Last week's ave. daily turnover (Rs cr) 29.10 Prev. week's ave. daily turnover (Rs cr) 45.98 Futures close NT Number of up/down moves 2/3 |
| Escorts is expected to be in focus after the company sold its mobile business units - Escotel Mobile and Escorts Telecom - to Idea Cellular. |
| The all-cash deal is worth Rs 300-500 crore and is one of the biggest acquisitions in the telecom sector. |
| The transaction includes six telecom circles and more than 825,000 subscribers, which will catapult Idea Cellular's subscriber base to over 3 million across 11 circles from 2.24 million in five circles now. |
| Of the two companies bought by Idea Cellular, Escotel Mobile is a 51:49 joint venture between Escorts group and the Hong Kong-based First Pacific. |
| Escotel Telecom is a 100 per cent subsidiary of Escorts. With this divestment, the Escorts group has now exited from cellular mobile business. |
| RECAP: ONGC The ONGC scrip crashed 10.47 per cent last week to close at Rs 816.15 |
| Mid-cap mover |
| AZTEC SOFTWARE Last week's close (Rs) 31.33 Prev. week's close (Rs) 33.60 Week's high (Rs) 35.00 Week's low (Rs) 31.08 Last week's ave. daily turnover (Rs cr) 0.80 Prev. week's ave. daily turnover (Rs cr) 1.13 Futures close NT Number of up/down moves 2/3 |
| Aztec Software was a loser last week on dismal quarterly results. Shares of the company ended with a 6.8 per cent loss over its previous weekly close. |
| The company had reported a consolidated net profit of Rs 65 lakh for the quarter ended September 30, 2003, compared to a net profit of Rs 1.69 crore for the same quarter last year, down 61.5 per cent. |
| On a consolidated basis, the company has posted a turnover of Rs 9.81 core for the September quarter this fiscal against Rs 13.2 crore for the corresponding period in 2002, down 25.68 per cent. |
| However, on a sequential basis, it witnessed a 141 per cent rise in net. In the quarter ended June 30, 2003, Aztec Software had posted a consolidated net profit of Rs 27 lakh. |
| RECAP: CRANES SOFTWARE The stock was on a high last week, gaining 10.38 per cent to close at Rs 431.15. |
| Small-cap mover |
| DIAMOND CABLES Last week's close (Rs) 14.56 Prev. week's close (Rs) 16.10 Week's high (Rs) 16.85 Week's low (Rs) 14.56 Last week's ave. daily turnover (Rs cr) 0.20 Prev. week's ave. daily turnover (Rs cr) 0.69 Futures close NT Number of up/down moves 1/3 |
| Diamond Cables saw hectic activity last week. The company has planned a Rs 29-crore expansion to manufacture FRLS/FR/halogen-free and instrumentation cables. |
| To part-finance the expansion, the company plans to enter the capital markets with a public/rights issue at a premium. The company's board has approved raising an amount of Rs 29 crore through a public and/or rights issue of equity shares of Rs 10 each. |
| The board recommended a preferential allotment of equity shares not exceeding 20 per cent of the increased capital of the company at a par value of Rs 10 per share and a premium not less than Rs 16 per share. |
| RECAP: HARIA EXPORTS The scrip ended 10.89 per cent lower to close at Rs 31.90. |
| Week's closing is the average closing price on NSE and BSE on Friday. Weekly high is the average higher of NSE and BSE prices during the week. Week's low is the average lower of NSE and BSE prices. Turnover is based on volumes in both BSE and NSE. NT: Not traded. NA: Not applicable. |
| (Data compiled by BS Research Bureau) |
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