Bulls back in action

STOCK MONITOR

Bulls had a good week as smart gains in bluechips lifted the 30-share BSE Sensex above the 6,000 mark once again. The index closed the week at 6011.66, up 225.31 points from the previous week's close.

The broader Nifty ended 29.95 points higher at 1913.60. The trend was visible early in the week as institutional buying in top counters spurred the indices to gains.

The upsides continued on Tuesday even as trading patterns were volatile on Tuesday. Dull sentiments were witnessed during the next two sessions with the markets recording their only loss of the week on Thursday.

However, hopes of string foreign fund inflows and strong economic fundamentals lifted the spirits on the last session of the week.

HERO HONDA
Last week's close (Rs) 500.80
Prev. week's close (Rs) 463.93
Week's high (Rs) 508.33
Week's low (Rs) 464.00
Last week's ave. daily turnover (Rs cr) 82.37
Prev. week's ave. daily turnover (Rs cr) 60.72
Futures close Feb-2004 (Rs) 502.95
Futures close Mar-2004 (Rs) 510.00
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 3/2

Hero Honda was in limelight of the back of rumours that the company is planning a bonus issue. The stock, as a result, witnessed aggressive buying form institutions as well as retail investors.

The counter registered volumes of 82, 300 shares at the BSE with the scrip touching an all-time high of Rs 507 before closing at Rs 505 on Thursday.

The buoyancy in the scrip lifted it to end almost 8 per cent over its previous weekly close. A foreign mutual fund was known to have accumulated the stock in Thursday's trading.

Auto analysts say the stock looks attractive at current levels and with the domestic demand expected to grow, it may attract further buying interest.

Of late, the stock witnessed huge interest among players on expectations that the strong outlook for economic growth and consumer spending in India are expected to see the fortunes of the company rise.

INFOSYS
Last week's close (Rs) 5376.80
Prev. week's close (Rs) 5567.15
Week's high (Rs) 5712.00
Week's low (Rs) 5315.00
Last week's ave. daily turnover (Rs cr) 456.85
Prev. week's ave. daily turnover (Rs cr) 433.23
Futures close Feb-2004 (Rs) 5403.60
Futures close Mar-2004 (Rs) 5410.50
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 2/3

Infosys Technologies witnessed selling pressure on Thursday with a leading FII selling its holding in the morning trade.

Market analysts said the early-morning sell-off lead to panic selling at the counter with total volumes accounting for more than 4.6 lakh shares at the BSE.

The scrip, as a result, slipped by 3.5 per cent over its previous weekly close. Analysts say the huge volatility at the counter also forced investors out of the counter.

According to technology analysts the current quarter results were impressive and the company is expected to continue its momentum in the coming quarters on the back of a solid growth in volumes.

Infosys had announced that it has been ranked number one in the Q303 Professional Services Business Quarterly (PSBQ) benchmark by Technology Business Research Inc.

This is the first quarter Infosys was rated and it has been rated above 15 other companies that are part of the PSBQ benchmark.

MAHINDRA & MAHINDRA
Last week's close (Rs) 463.28
Prev. week's close (Rs) 441.48
Week's high (Rs) 466.05
Week's low (Rs) 432.55
Last week's ave. daily turnover (Rs cr) 194.00
Prev. week's ave. daily turnover (Rs cr) 218.83
Futures close Feb-2004 (Rs) 465.50
Futures close Mar-2004 (Rs) 467.00
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 4/1

Mahindra & Mahindra surged in the early part of the week after the company announced that it has entered into an agreement to buy a majority stake in US software firm Bristlecone Inc.

The company said it will form a joint venture subsidiary by investing cash of up to $7 million in one or more phases and transferring five consulting and inter-trade subsidiary companies to the joint venture.

Buoyant car and commercial vehicle sales kept the scrip afloat to end almost 5 per cent higher than its previous weekly close.

Sales of commercial vehicles were up 35.5 per cent in January at 25,141 units against 18,545 units in the corresponding month last fiscal.

Passenger car sales grew a robust 31 per cent in January 2004 to 71,875 units against 54,813 units in the corresponding month last year.

GRASIM
Last week's close (Rs) 1140.43
Prev. week's close (Rs) 1080.68
Week's high (Rs) 1162.50
Week's low (Rs) 1072.50
Last week's ave. daily turnover (Rs cr) 32.19
Prev. week's ave. daily turnover (Rs cr) 47.75
Futures close Feb-2004 (Rs) 1145.80
Futures close Mar-2004 (Rs) 1147.00
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 3/2

Grasim gained 5.52 per cent last week on the back of upsides in cement stocks. With cement prices coming good across the country, cement stocks have been seeing a cyclical upswing.

Most analysts believe that in terms of prices and demand growth, cement is at the bottom of the cycle and the recent price revisions will hold good at least till the monsoons.

Also the cement sector is abuzz on the possibility of another round of consolidation in the industry with foreign players showing interest in picking stake in big companies. The hike in prices across the board has also helped attract buyers' attention.

TATA STEEL
Last week's close (Rs) 438.88
Prev. week's close (Rs) 413.50
Week's high (Rs) 439.85
Week's low (Rs) 409.00
Last week's ave. daily turnover (Rs cr) 632.29
Prev. week's ave. daily turnover (Rs cr) 793.47
Futures close Feb-2004 (Rs) 440.35
Futures close Mar-2004 (Rs) 443.00
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 3/2

Tata Steel had a highly volatile week as the stock price moved 31 points between its weekly high and low. At the end of the week, the scrip recorded an increase of 6.1 per cent mainly on the back of sector bullishness.

Volumes at the bourses, however, dipped 20.3 per cent. Certain foreign institutional investors accumulated the stock as the markets were abuzz with news of further hike in prices of hot-rolled steel prices.

Analysts seconded the news saying that the sector as a whole is in for good times. Better-than-expected results and an even better outlook are fueling the stock.

HIDALCO
Last week's close (Rs) 1349.93
Prev. week's close (Rs) 1212.43
Week's high (Rs) 1398.50
Week's low (Rs) 1209.50
Last week's ave. daily turnover (Rs cr) 42.84
Prev. week's ave. daily turnover (Rs cr) 36.43
Futures close Feb-2004 (Rs) 1354.40
Futures close Mar-2004 (Rs) 1363.00
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 4/1

Hindalco recorded an awesome increase in its stock price following a buoyant market and a volatile week. The scrip of the aluminium major moved 190 points between its weekly high and low.

It recorded an increase of 11.3 per cent at the bourses amidst buying interest across the counter. Volumes, too, registered a gain of 17.6 per cent at the bourses.

Market players attribute the rise to steady aluminium prices - domestic and international. The stock has registered gains on the back of firm aluminium prices in London Metal Exchange (LME) and expectations that domestic prices will remain steady going forward. Last week, aluminium was trading at a four-year high on the LME at $1688 per tonne.

ICICI BANK
Last week's close (Rs) 311.20
Prev. week's close (Rs) 321.98
Week's high (Rs) 352.13
Week's low (Rs) 308.00
Last week's ave. daily turnover (Rs cr) 325.84
Prev. week's ave. daily turnover (Rs cr) 76.11
Futures close Feb-2004 (Rs) 312.95
Futures close Mar-2004 (Rs) 313.50
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 3/2

ICICI Bank witnessed a volatile week and moved 44 points between its weekly high and low. The stock fell 3.3 per cent while the market settled higher for the week.

Volumes, however, rose 328 per cent at the bourses. The stock hit an all-time high of Rs 352.13 last week when a deal was struck between two domestic mutual funds.

However, the stock fell later after the bank announced that it would approach the market for an equity issuance of Rs 3,500 crore (which will result in equity dilution) sometime in April. The proceeds of the issue will used to fuel their retail and insurance business, said senior officials of the bank.

BHARTI TELE-VENTURES
Last week's close (Rs) 153.25
Prev. week's close (Rs) 139.73
Week's high (Rs) 154.10
Week's low (Rs) 134.15
Last week's ave. daily turnover (Rs cr) 110.74
Prev. week's ave. daily turnover (Rs cr) 71.95
Futures close NT
Number of up/down moves 4/1

Bharti Tele-Ventures witnessed a surge in its stock price at the bourses last week. The stock of one the largest private sector telecom players in the country rose 9.7 per cent along with the market.

Volumes, too, registered a rise of 54 per cent amidst heavy buying. The stock slipped to a weekly low of Rs 134.15 after players rushed in to book profits.

However, there were other buyers who started buying the stock at the weekly low levels. Analysts forecast good financials for the company which will see its first year of profits. Also, with the resurgence of the telecom industry, market players are bullish about the stock.

Stock of the week

ALEMBIC
Last week's close (Rs) 489.88
Prev. week's close (Rs) 289.35
Week's high (Rs) 489.88
Week's low (Rs) 288.05
Last week's ave. daily turnover (Rs cr) 13.66
Prev. week's ave. daily turnover (Rs cr) 0.29
Futures close NT
Number of up/down moves 4/1

Alembic was among the biggest gainers last week, climbing 69.30 per cent to close at Rs 489.88. The stock hit a 20 per cent upper circuit on Monday after the company announced a bonus issue in the ratio of 2:1 to its shareholders.

The bonus shares will also be issued in the same proportion on the shares to the allotted of recent rights issue, provided they pay full amount called up on or before the record date.

The company has convened an EGM on March 12, 2004 to approve issue of the bonus shares. As on December 31, 2003, promoters hold 58.06 per cent stake while the public, institutions and foreign bodies held 27.10 per cent, 3.95 per cent and 7.83 per cent stake respectively.

RECAP: JAMMU & KASHMIR BANK
The counter continued to witness upsides, gaining 7.55 per cent to close last week at Rs 485.

Stock to watch

RALLIS INDIA
Last week's close (Rs) 107.33
Prev. week's close (Rs) 100.03
Week's high (Rs) 111.75
Week's low (Rs) 96.05
Last week's ave. daily turnover (Rs cr) 0.43
Prev. week's ave. daily turnover (Rs cr) 0.50
Futures close NT
Number of up/down moves 2/3

Rallis India is expected to be in focus with the company planning a fresh restructuring plan under a new managing director. The scrip was up 7.27 per cent last week before closing at Rs 107.33.

The company has decided to focus only on pesticides business, as opposed to the earlier focus on its existing seeds and chemicals businesses.

Even in the pesticides business, Rallis will discontinue some of its low-margin products. It is also planning to enter into manufacturing or marketing alliances with leading multinationals for pesticides.

The company's seeds division has already discontinued its marketing alliance with Monsanto. Rallis has also scrapped its earlier plan of getting into biotechnology.

RECAP: MATRIX LABORATORIES
The scrip zoomed 10.39 per cent last week to end at Rs 1,404.

Mid-cap mover

IFCI
Last week's close (Rs) 12.43
Prev. week's close (Rs) 16.45
Week's high (Rs) 16.80
Week's low (Rs) 12.23
Last week's ave. daily turnover (Rs cr) 14.11
Prev. week's ave. daily turnover (Rs cr) 24.36
Futures close NT
Number of up/down moves 1/4

IFCI was down 24.43 per cent last week to close at Rs 12.43. Reports of a 30:1 reverse ratio for its proposed merger with Punjab National Bank resulted in IFCI slumping to the lower circuit on Wednesday. The ratio is thought to be adverse for the IFCI shareholders.

However, PNB clarified later that it has not yet worked out the merger ratio. IFCI is slated to be merged with PNB. The take-over will be subject to due diligence and other conditions as may be stipulated by the bank's board besides obtaining the requisite approvals.

RECAP: CMC
The stock ended 0.67 per cent lower at Rs 542.40, continuing its downward journey.

Small-cap mover

MANGALAM CEMENT
Last week's close (Rs) 12.43
Last week's close (Rs) 17.04
Prev. week's close (Rs) 13.03
Week's high (Rs) 17.88
Week's low (Rs) 13.20
Last week's ave. daily turnover (Rs cr) 0.15
Prev. week's ave. daily turnover (Rs cr) 0.04
Futures close NT
Number of up/down moves 5/0

Mangalam Cement jumped 6.14 per cent on Tuesday at the BSE on a media report that the BK Birla group is in advanced stages of negotiations with four companies - Lafarge and three Thai cement companies - to buy out its stake in the company.

Shares of the company remained upbeat and surged by a whopping 30.8 per cent over its previous weekly close. There were also reports that Mexican cement major Cemex was in fresh negotiations with the BK Birla group to acquire Mangalam Cement at around Rs 200-300 crore.

The company later informed the BSE that the representatives of a Bangkok-based broker have shown some interest in the plant and visited the same.

RECAP: BIHAR CAUSTIC
The scrip surged 17.63 per cent last week to close at Rs 32.70.

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.