The Sensex gained 52.35 points last week to end at 5,117.01. Most of the index scrips were among gainers, with only seven out of 30 finishing with losses. | |
| The top gainers included ONGC (up 3.42 per cent at Rs 712.75), HLL (up 3.97 per cent at Rs 111.30) and Reliance Energy (up 7.24 per cent at Rs 643.25). |
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| While ONGC, which has a weightage of 5.31 per cent in the index, contributed 8.97 points to the overall index gains, HLL, with a weightage of 4.26 per cent, added 8.33 points. |
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| Several other scrips with high weightage in the index like HDFC, Infosys, ICICI Bank and ITC were also gainers. |
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| However, the overall additions would have been higher if not for the weakness witnessed in steel and auto scrips. Tata Steel was the biggest drag on the Sensex, declining 6.41 per cent to Rs 243.05. |
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| Reliance Industries, with the biggest weightage of 12.25 per cent in the index, was also among the losers, declining 1.14 per cent to close at Rs 458. Auto scrips, Tata Motors, Hero Honda and Maruti Udyog were also among the notable declines. |
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| Though oil prices have declined, they are still ruling at pretty high levels. Hence, oil counters may continue to be weak. Rising inflation is another cause of worry. |
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| Tata Steel is expected to be weak following the price cuts announced last week. The government's decision to cut the import duty on non-alloy steel is likely to keep sentiment damp for the steel sector. Auto and cement counters - hit by the ongoing truckers' strike - are also likely to witness selling. |
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| TATA STEEL | | Last week's close (Rs) | 243.03 | | Prev. week's close (Rs) | 259.73 | | Week's high (Rs) | 260.40 | | Week's low (Rs) | 241.40 | | Last week's ave. daily turnover (Rs cr) | 243.47 | | Prev. week's ave. daily turnover (Rs cr) | 390.24 | | Futures close September-2004 (Rs) | 244.60 | | Futures close October-2004 (Rs) | 245.85 | | Futures close November-2004 (Rs) | 0.00 | | Number of up/down move | 1/3 |
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| Tata Steel declined 6.42 per cent last week to close at Rs 243.03. The downside followed an announcement by the company at the start of the week that it would reduce prices of its main products to all direct customers by Rs 2,000 per tonne. |
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| Even though steel scrips were under the hammer for most of the week, analysts are of the opinion that the steel sector's long-term growth story is intact. |
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| They also don't expect any major negative impact on the bottomline of steel companies because of the price cuts. Steel prices are on the rise globally due to strong demand, particularly from China. |
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| SAIL | | Last week's close (Rs) | 37.55 | | Prev. week's close (Rs) | 40.35 | | Week's high (Rs) | 40.15 | | Week's low (Rs) | 37.23 | | Last week's ave. daily turnover (Rs cr) | 128.86 | | Prev. week's ave. daily turnover (Rs cr) | 280.73 | | Futures close | NT | | Number of up/down move | 1/4 |
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| SAIL's scrip fell 6.93 per cent last week to close at Rs 37.55. Steel scrips were under pressure throughout the week, following price cuts announced by leading firms. |
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| SAIL announced a Rs 1,000-per-tonne cut in prices. The government has also decided to cut the import duty on non-alloy steel to 5 per cent from 10 per cent to check inflation. |
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| According to some analysts, the government's move would reduce scope for steel firms to hike prices, as it would result in reduction in landed cost of imports. However, most analysts don't expect the price cuts to have any major negative impact on the bottomlines of steel firms. |
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| ZEE TELEFILMS | | Last week's close (Rs) | 151.35 | | Prev. week's close (Rs) | 146.28 | | Week's high (Rs) | 154.69 | | Week's low (Rs) | 144.53 | | Last week's ave. daily turnover (Rs cr) | 35.47 | | Prev. week's ave. daily turnover (Rs cr) | 36.37 | | Futures close | NT | | Number of up/down move | 3/2 |
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| Zee was in the limelight last week amid buying interest which saw it end the week 3.47 per cent higher than its previous weekly close. |
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| The scrip surged on Monday and gained over 4 per cent in the course of the trading session as the company emerged as the highest bidder for telecast rights of international cricket matches to be played in India between September 2004 and August 2007. |
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| The counter witnessed volumes of over 16.7 lakh shares that day as dealers speculated that the group may end up making a profit of over Rs 800 crore from the telecast rights. |
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| This forced ESPN Star-Sports to raise its bid by Rs 330 crore ($73 million) in a last-ditch effort to bag the telecast rights, provided it was given the rights for five years instead of four years as mentioned in the BCCI tender. The sports telecaster had earlier bid $30 million lower for the rights than Zee TV. |
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| TATA TEA | | Last week's close (Rs) | 402.75 | | Prev. week's close (Rs) | 383.58 | | Week's high (Rs) | 405.73 | | Week's low (Rs) | 381.30 | | Last week's ave. daily turnover (Rs cr) | 15.04 | | Prev. week's ave. daily turnover (Rs cr) | 8.92 | | Futures close September-2004 (Rs) | 406.20 | | Futures close October-2004 (Rs) | 403.00 | | Futures close November-2004 (Rs) | 0.00 | | Number of up/down move | 4/1 |
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| Tata Tea witnessed good buying last week, backed by firm tea prices and ended 5 per cent higher than its previous weekly close. Thursday saw across-the-board buying in tea stocks in general, but Tata Tea was an exception though it managed to end higher for the week. |
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| Analysts say the upward movement in tea prices in the last few months should augur well for tea companies. |
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| Industry experts say tea prices in the auction has shown an upward trend and this is likely to continue in the remaining part of the year also. |
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| Export of tea to Pakistan has also led to the rise in tea prices, and the main benefit is likely to accrue to companies which have their own tea gardens. |
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| Stock to watch |
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| ELDER PHARMACEUTICALS | | Last week's close (Rs) | 144.47 | | Prev. week's close (Rs) | 136.94 | | Week's high (Rs) | 153.58 | | Week's low (Rs) | 134.75 | | Last week's ave. daily turnover (Rs cr) | 9.35 | | Prev. week's ave. daily turnover (Rs cr) | 4.85 | | Futures close | NT | | Number of up/down move | 3/2 |
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| Elder Pharmaceuticals is likely to be in focus after the company announced that Aziende Chimiche Riunite Fransesco Angelini SpA (ACRAF), an Italian pharmaceutical firm with sales of euro 1.70 billion, has decided to pick up a 10 per cent stake in the company. |
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| The Italian firm will subscribe to 15.99 lakh fresh equity shares of Elder Pharma, representing a 10 per cent stake in the expanded equity capital of the company, for Rs 160 per share. |
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| ACRAF, which is among the largest wholesaler of medicines in Italy, specialises in analgesics, pain management and cebroneuropsychatery drugs. |
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| Elder is expected to jointly market its products with ACRAF. The companies are also planning to work together to grow contract research business. Elder Pharma's scrip advanced 5.49 per cent last week to close at Rs 144.47. |
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RECAP: JINDAL IRON AND STEEL
The stock edged upwards by 0.08 per cent last week to close at Rs 249.95. |
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| Stock of the week |
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| TCS | | Last week's close (Rs) | 962.50 | | Prev. week's close (Rs) | 0.00 | | Week's high (Rs) | 1,139.35 | | Week's low (Rs) | 958.55 | | Last week's ave. daily turnover (Rs cr) | 1,188.03 | | Prev. week's ave. daily turnover (Rs cr) | 0.00 | | Futures close September-2004 (Rs) | 970.55 | | Futures close October-2004 (Rs) | 976.25 | | Futures close November-2004 (Rs) | 0.00 | | Number of up/down move | 0/2 |
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| Tata Consultancy Services made its debut at the bourses last week. The scrip got listed at Rs 1,050 on Wednesday, a 23.50 per cent premium to the IPO price of Rs 850. |
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| However, the price soon declined as investors booked profits at the counter, post-listing gains. The counter witnessed a big block deal of 8,20,000 shares at Rs 1053.70, soon after listing. The scrip closed the week at 962.50. |
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| With the listing, TCS has emerged as the third-largest company in India in terms of market-cap after ONGC and Reliance Industries. |
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| It also surpassed Infosys Technologies to emerge as the number one Indian technology company in terms of market-cap. The Tata group currently holds 85.42 per cent stake in the company, while FII holdings stand at 5 per cent. |
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RECAP: ZEE TELEFILMS
The media scrip advanced 3.45 per cent last week to close at Rs 151.30. |
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| Mid-cap mover |
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| ITC HOTELS | | Last week's close (Rs) | 120.20 | | Prev. week's close (Rs) | 151.78 | | Week's high (Rs) | 153.63 | | Week's low (Rs) | 117.60 | | Last week's ave. daily turnover (Rs cr) | 0.88 | | Prev. week's ave. daily turnover (Rs cr) | 2.31 | | Futures close | NT | | Number of up/down move | 2/3 |
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| ITC Hotels had a bad outing last week in the course of which its shares ended over 20.8 per cent lower than its previous weekly close. |
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| The week was marked by ITC's decision to merge ITC Hotels (IHL) and Ansal Hotels (AHL) with itself. |
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| Apparently, the IHL stock did not take the news too well. IHL and AHL are subsidiaries of ITC, and both were in the business of owning or operating or managing five-star deluxe hotel properties. |
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| Two sets of share exchange ratios have been worked out for the merger. IHL shareholders will get three shares of ITC for every 25 shares held by them in ITC Hotels. AHL shareholders will get one share of ITC for every 150 shares held by them in AHL. |
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RECAP: RADICO KHAITAN
The stock price advanced 5.02 per cent to close the week at Rs 169.60. |
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| Small-cap mover |
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| WIMCO | | Last week's close (Rs) | 39.98 | | Prev. week's close (Rs) | 35.32 | | Week's high (Rs) | 44.95 | | Week's low (Rs) | 28.33 | | Last week's ave. daily turnover (Rs cr) | 2.57 | | Prev. week's ave. daily turnover (Rs cr) | 0.21 | | Futures close | NT | | Number of up/down move | 2/3 |
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| Wimco saw a spurt in its share price last week on the back of reports about an open offer. The buzz lifted the scrip to close 13.19 per cent higher than its previous weekly close. |
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| The stock hit the 20 per cent upper circuit limit on Thursday after the Supreme Court rejected its Swedish parent's appeal for an exemption in making an offer to the Indian shareholders. Volumes in the counter had been in excess of one lakh shares that day. |
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| On Friday, the company informed the BSE that its board approved the proposal for reduction in nominal and paid-up value of equity shares from Rs 10 to Re 1 per share and to utilise the amount so reduced for setting off the losses to the extent of Rs 46.80 crore out of total accumulated losses of Rs 53.23 crore as on March 31, 2004. |
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RECAP: PATEL ENGINEERING
The scrip advanced 3.28 per cent last week to close at Rs 401. |
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