Bulls regain edge

STOCK MONITOR

Markets again witnessed volatile action, though bulls managed to make gains by the end of the week. The 30-share BSE Sensex gained 90.68 points last week to close at 5786.35 while the broader Nifty ended 23.09 points higher at 1833.65.

The bourses opened the week on Tuesday with further losses, even as the interim budget announcements failed to lift the spirits.

However, the markets snapped a four-session losing streak on Wednesday as investors jumped in, looking for bargain-hunting opportunities.

Volatility marked Thursday's action with the indices losing much of the gains made on the previous day. The bulls were back in action on Friday as fresh buying in blue-chip stocks lifted the indices to gains. The bourses remained closed on Monday on account of Bakri Eid.

INDIAN HOTELS
Last week's close (Rs) 434.13
Prev. week's close (Rs) 440.55
Week's high (Rs) 447.50
Week's low (Rs) 413.50
Last week's ave. daily turnover (Rs cr) 2.94
Prev. week's ave. daily turnover (Rs cr) 2.24
Futures close NT
Number of up/down moves 2/2

Indian Hotels scrip came down after gains earlier in the week. The scrip had risen last week following a company announcement that it has placed an offer of $50 million foreign currency bonds on Tuesday.

The bonds are expected to be listed on the London Stock Exchange where the company's GDRs are listed. The company's GDS are expected to be issued on February 11.

The Tata group's hospitality company raised the money as part of its expansion plans. The $135-million issue, with a greenshoe option of $15 million, was oversubscribed by over 20 times. The issue mobilised a response of about $3 billion.

DR REDDY'S LABORATORIES
Last week's close (Rs) 1332.63
Prev. week's close (Rs) 1398.83
Week's high (Rs) 1345.50
Week's low (Rs) 1253.65
Last week's ave. daily turnover (Rs cr) 41.33
Prev. week's ave. daily turnover (Rs cr) 45.97
Futures close Feb-2004 (Rs) 1334.65
Futures close Mar-2004 (Rs) 0.00
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 2/2

Dr Reddy's saw heavy selling last week on the back of disappointing third-quarter results. According to market analysts, the stock had witnessed huge build-up in the last few days in anticipation of good numbers and favourable verdict for amlodipine maleate, which is currently facing a lawsuit for patent infringement.

But with disappointing numbers, there was unwinding of positions by local as well as institutional investors. However, analysts think that if the company wins the case it may prove a revenue-driver in the coming quarters.

For the quarter ended December 31, 2003, on a standalone basis, the company reported a 52 per cent fall in net profit to Rs 44.41 crore, against Rs 93.16 crore in the same quarter last year.

BHEL
Last week's close (Rs) 565.05
Prev. week's close (Rs) 513.15
Week's high (Rs) 570.93
Week's low (Rs) 504.15
Last week's ave. daily turnover (Rs cr) 88.44
Prev. week's ave. daily turnover (Rs cr) 47.11
Futures close Feb-2004 (Rs) 566.35
Futures close Mar-2004 (Rs) 0.00
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 4/0

Bhel was in the limelight last week as the stock gained over 10 per cent amidst heavy buying on the bourses.

Volumes on the counter recorded an increase of around 105 per cent as players rushed in. The rally was a result of the Interim Budget that announced tax sops for power companies. Last week's close was the highest price the scrip saw during the week.

According to market sources, along with the tax soaps in the Interim Budget, the strong third-quarter results and healthy book-order resulted in heavy buying at this counter.

In the Interim Budget, the finance minister reduced duties on a number of raw materials, intermediates and components to enable the power equipment sector to compete with imported capital goods.

ICICI BANK
Last week's close (Rs) 321.98
Prev. week's close (Rs) 295.15
Week's high (Rs) 324.63
Week's low (Rs) 282.50
Last week's ave. daily turnover (Rs cr) 76.11
Prev. week's ave. daily turnover (Rs cr) 75.79
Futures close Feb-2004 (Rs) 322.55
Futures close Mar-2004 (Rs) 315.00
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 4/0

ICICI Bank rallied impressively at the bourses last week. The scrip recorded an increase of around 9 per cent and closed at a weekly high. Volumes on the counter, however, dropped 16 per cent.

The banking stocks got hammered after the finance minister's Interim Budget failed to announce any sops for the sector. Instead, he urged the banks to give farmers crop credit at lower rates.

But the counter bounced back smartly after buyers stepped in at lower levels of stock prices. Analysts say lending at lower rates is not expected to have any major impact on the bank's bottomline. Moreover, the government cannot force the banks to lend at rates that are not feasible for them.

ORIENTAL BANK
Last week's close (Rs) 253.48
Prev. week's close (Rs) 231.80
Week's high (Rs) 259.13
Week's low (Rs) 222.50
Last week's ave. daily turnover (Rs cr) 40.44
Prev. week's ave. daily turnover (Rs cr) 32.53
Futures close Feb-2004 (Rs) 253.65
Futures close Mar-2004 (Rs) 251.50
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 3/1

Oriental Bank of Commerce recorded an impressive gain of over 9 per cent at the bourses last week as buyers stepped in at attractive levels of the stock price.

Volumes, too, increased 36 per cent amidst buying interest across the board. The bank's stock took a beating post-Budget in which there were no plausible sops for the banking sector.

The beating, however, attracted buyers and prices and volumes surged and the stock recovered. Banks are to lend crop credits to farmers at lower rates, which brought bank stocks down to attractive levels.

Market players, however, seem to be convinced that this stance will impact bottomlines too hard.

ZEE TELEFILMS
Last week's close (Rs) 144.70
Prev. week's close (Rs) 151.50
Week's high (Rs) 157.48
Week's low (Rs) 131.80
Last week's ave. daily turnover (Rs cr) 81.26
Prev. week's ave. daily turnover (Rs cr) 108.70
Futures close NT
Number of up/down moves 1/3

Zee Telefilms was depressed at the bourses last week and ended almost 4.5 per cent lower than its previous weekly close.

The scrip lost as much as 11.16 per cent on sustained selling after the finance minister failed to announce sops for the entertainment and media sector.

Players had built positions in the counter on hopes that the finance minister would announce sops for the media sector.

As per market talks, players were expecting a cut in import duties as well as some tax exemption for the media sector.

However, when it became clear that no such announcement was forthcoming, players offloaded their holdings.

The company also recently informed the BSE that it would consider raising funds by way of debt whether convertible or non-convertible and/or equity, in domestic or international capital markets. The company's board is scheduled to meet on February 11 for that purpose.

GAIL
Last week's close (Rs) 217.35
Prev. week's close (Rs) 220.53
Week's high (Rs) 222.80
Week's low (Rs) 198.33
Last week's ave. daily turnover (Rs cr) 233.05
Prev. week's ave. daily turnover (Rs cr) 381.10
Futures close Feb-2004 (Rs) 218.05
Futures close Mar-2004 (Rs) 219.95
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 3/1

GAIL ended lower at the bourses on reports that that the disinvestment ministry has decided to defer the public issue of the company by a month. The stock slipped 1.5 per cent over its previous weekly close.

The government had decided to divest 10 per cent equity in GAIL and the issue was slated to hit the market on February 23.

However, the public issue will now take place after the government divest its 10 per cent stake in Oil and Natural Gas Corp in March and residual stakes in IPCL and CMC.

The postponement proved a dampener as market participants who had build up huge positions started offloading their positions, said equity analysts. The GAIL issue, totaling 84,565,160 equity shares, is to be book-built and has already received the Sebi's approval.

There were also recent reports that the company is going to invest Rs 550 crore in the proposed blue sky project which seeks to set up a gas distribution network across Kanpur, Agra, Lucknow, Faridabad and Pune.

MAHINDRA & MAHINDRA
Last week's close (Rs) 441.48
Prev. week's close (Rs) 410.40
Week's high (Rs) 460.35
Week's low (Rs) 407.50
Last week's ave. daily turnover (Rs cr) 218.83
Prev. week's ave. daily turnover (Rs cr) 121.19
Futures close Feb-2004 (Rs) 443.15
Futures close Mar-2004 (Rs) 444.00
Futures close Apr-2004 (Rs) 0.00
Number of up/down moves 3/1

Mahindra & Mahindra was buoyed by hectic institutional buying. The stock rose by a handsome 7.6 per cent over its previous weekly close.

Institutional dealers say fund-based buying was witnessed at the counter after the company announced a 184 per cent jump in net profits.

The company registered a net profit of Rs 87.4 crore in the quarter ended December 31, 2003, against Rs 30.78 crore in the same period last year.

According to market analysts, there has been aggressive buying in most auto stocks and the impressive third-quarter results of M&M helped fuel the buying further.

Auto analysts say the results are impressive as the company managed to improve margins by nearly 5 per cent to 12.66 per cent in the quarter. And with demand expected to grow in the next two quarters, the company is expected to maintain the growth.

Stock of the week

JAMMU & KASHMIR BANK
Last week's close (Rs) 450.35
Prev. week's close (Rs) 395.33
Week's high (Rs) 487.00
Week's low (Rs) 386.88
Last week's ave. daily turnover (Rs cr) 26.69
Prev. week's ave. daily turnover (Rs cr) 3.48
Futures close NT
Number of up/down moves 3/1

Jammu & Kashmir Bank, backed with its sound financials, was one of the biggest gainers in the banking fraternity last week.

The stock recorded a dazzling increase in its price by 14 per cent in an extremely volatile session. The scrip touched highs of Rs 487 and moved over 100 points.

Volumes recorded an impressive 760 per cent rise at the bourses amidst heavy buying interests. Markets are abuzz with news that the bank is looking at placement to a strategic foreign institutional investor at Rs 500 per share.

Another factor that provided the boost was the hike in foreign direct investment limit in private banks to 74 per cent. News that the scrip will be included in the banking index further fueled buying.

RECAP: SHIPPING CORP
The stock continued to sail high, adding 6.10 per cent last week to close at Rs 160.85.

Stock to watch

MATRIX LABORATORIES
Last week's close (Rs) 1271.80
Prev. week's close (Rs) 1378.75
Week's high (Rs) 1351.20
Week's low (Rs) 1271.80
Last week's ave. daily turnover (Rs cr) 5.15
Prev. week's ave. daily turnover (Rs cr) 4.36
Futures close NT
Number of up/down moves 0/4

Matrix Laboratories is expected to be in focus this week after the company announced that Danish pharma company Lundbeck, innovator of anti-depressant blockbuster drug Citalopram, has withdrawn patent infringement cases against Ratiopharm and Destin Pharma in the European courts.

Ratiopharm and Destin Pharma are among the major generic customers of Matrix in Europe for Citalopram active pharmaceutical ingredient (API).

The withdrawal is expected to result in significant increase in Citalopram exports to Europe by Matrix.

The company has already captured more than 50 per cent market-share for the bulk active in Europe. Citalopram contributed about 50 per cent to Matrix's sales in the last fiscal.

RECAP: PUNJAB NATIONAL BANK
The scrip remained flat last week, closing at Rs 259.15, up 0.72 per cent

Mid-cap mover

CMC
Last week's close (Rs) 548.40
Prev. week's close (Rs) 566.60
Week's high (Rs) 594.50
Week's low (Rs) 519.08
Last week's ave. daily turnover (Rs cr) 0.64
Prev. week's ave. daily turnover (Rs cr) 0.92
Futures close NT
Number of up/down moves 3/1

CMC had a roller-coaster ride at the bourses last week before profit-booking pulled the scrip down, closing 2.7 per cent lower than its previous weekly close.

The Sebi is expected to issue a guidance letter to the government to go ahead with the book-built offer for the sale of 26.25 per cent of its residual stake in the company over the next week.

The company was also concerned about increasing attrition rates which had risen to 11.5 per cent on an annualised basis in the nine-month period ended December 31, 2003.

The company had posted a net profit of Rs 10.88 crore for the quarter ended December 31, 2003, compared to Rs 10.13 crore for the same quarter last year.

RECAP: BAYER INDIA
The stock continued its downward journey, shedding 1.45 per cent last week to close at Rs 224.

Small-cap mover

BIHAR CAUSTIC & CHEMICALS
Last week's close (Rs) 27.80
Prev. week's close (Rs) 29.90
Week's high (Rs) 33.00
Week's low (Rs) 26.05
Last week's ave. daily turnover (Rs cr) 0.04
Prev. week's ave. daily turnover (Rs cr) 0.08
Futures close NT
Number of up/down moves 1/3

Bihar Caustic & Chemicals witnessed volatile trading last week. The scrip rose to Rs 33 following good quarterly numbers.

The company, a subsidiary of Hindalco, reported a 95.4 per cent jump in net profit to Rs 3.84 crore during the December quarter, compared with Rs 1.96 crore in the year-ago period.

It recorded a 5.72 per cent rise in net sales to Rs 23.64 crore in the December quarter compared with Rs 22.36 crore in the year-ago quarter.

Bihar Caustic is a joint venture between the Bihar State Industrial Development Corporation (BSIDC) and Hindalco. Hindalco had hiked its stake in Bihar Caustic last year to 50 per cent, from 20 per cent.

RECAP: MAX INDIA
Sellers were active at the counter dragging the scrip 3.76 per cent last week to Rs 145.80.

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)