Number of up/down move | 4/1 |
|
SAIL gained 5.54 per cent last week to close at Rs 47.23. The company signed a pact with Kudremukh Iron Ore (KIOCL) for forming a joint venture company to develop iron ore mines at Barusa, Taldih and Kalta in Orissa.
|
|
The JV will synergise the expertise of the two PSUs and add value to the country's mining operations. SAIL is the country's largest producer of iron ore with an annual production of around 20 million tonnes, while KIOCL operates the single-largest iron ore mine in India.
WIPRO | Last week's close (Rs) | 604.58 | Prev. week's close (Rs) | 582.45 | Week's high (Rs) | 608.50 | Week's low (Rs) | 568.18 | Last week's ave. daily turnover (Rs cr) | 82.78 | Prev. week's ave. daily turnover (Rs cr) | 90.39 | Futures close October-2004 (Rs) | 607.50 | Futures close November-2004 (Rs) | 0.00 | Futures close December-2004 (Rs) | 0.00 | Number of up/down move | 3/2 |
|
|
Wipro gained 3.80 per cent to close at Rs 604.58. The company's wholly owned business process outsourcing (BPO) subsidiary, Wipro Spectramind, plans to target niche BPO operations for acquisitions.
|
|
The operations under evaluation are BPOs specialising in insurance and credit card-related activities that would cater to both the high-end and low-end needs of the company.
|
|
Wipro Spectramind is scheduled to announce its financial results for the second quarter of FY05 on October 15. The acquisitions - if they take place - is expected to add to the momentum of the merger and acquisition activities in the BPO sector.
|
|
Stock to watch
IDBI | Last week's close (Rs) | 89.80 | Prev. week's close (Rs) | 86.30 | Week's high (Rs) | 94.58 | Week's low (Rs) | 87.00 | Last week's ave. daily turnover (Rs cr) | 105.70 | Prev. week's ave. daily turnover (Rs cr) | 108.99 | Futures close |
NT | Number of up/down move | 3/2 |
|
|
IDBI is likely to be in focus following its conversion to a bank. The government has notified last Friday (October 1, 2004) as the day from when the institution would become a commercial bank.
|
|
It is expected that IDBI would become one of the top banks in India, in terms of assets once its conversion into a commercial bank is completed. The merger of IDBI and IDBI Bank is expected to take place on January 1, 2005.
|
|
The government has provided Rs 9,000 crore to the financial institution, in the Budget for 2004-05 through a stressed asset stabilisation fund (SASF) to set right its balance-sheet and bring down NPAs.
|
|
IDBI will transfer its NPAs to SASF. The move by the government is aimed partially at cleaning up IDBI's balance-sheet before its conversion into a bank.
|
|
MARUTI UDYOG The auto stock declined 3.31 per cent last week to close at Rs 356.53.
|
|
Stock of the week
MTNL | Last week's close (Rs) | 142.18 | Prev. week's close (Rs) | 125.90 | Week's high (Rs) | 143.47 | Week's low (Rs) | 124.48 | Last week's ave. daily turnover (Rs cr) | 71.88 | Prev. week's ave. daily turnover (Rs cr) | 39.28 | Futures close October-2004 (Rs) | 141.85 | Futures close November-2004 (Rs) | 139.00 | Futures close December-2004 (Rs) | 0.00 | Number of up/down move | 4/1 |
MTNL posted fantastic gains following a stalwart performance in its results for the year FY04. It was up 12.93 per cent at the bourses as players rushed in to accumulate the stock.
|
|
Consequently, volumes marched up 84 per cent. Analysts also seem to be positive about the scrip as the government has re-opened talks about MTNL's merger with BSNL.
|
|
The company posted a 31.16 per cent increase in net profit to Rs 1150.47 crore. Total income rose 10.84 per cent to Rs 6683.93 crore. The company also declared a dividend of 45 per cent.
|
|
GLENMARK PHARMACEUTICALS The pharma scrip zoomed 26.78 per cent during the week before closing at Rs 298.75.
|
|
Mid-cap mover
CESC | Last week's close (Rs) | 119.25 | Prev. week's close (Rs) | 111.43 | Week's high (Rs) | 121.23 | Week's low (Rs) | 109.65 | Last week's ave. daily turnover (Rs cr) | 3.08 | Prev. week's ave. daily turnover (Rs cr) | 3.20 | Futures close |
NT | Number of up/down move | 2/3 |
|
|
CESC, the RPG Group's power utility company, saw some action at the bourses last week after it tied-up with Power Trading Corp for power purchase to service peak-hour demand.
|
|
The stock saw some buying at its counter on hopes that the agreement would reduce the price of power purchased, in turn adding to the bottomline of the company.
|
|
Sources say the cost of the power supplied to CESC would be around Rs 2.6 per unit during peak hours which is less than that offered by the West Bengal State Electricity Board. With a plant load factor of as high as 97 per cent, CESC is not in a position to meet increased demand during peak times.
|
|
SAMTEL COLOR The stock continued its upward journey, gaining 8.20 per cent last week before closing at Rs 71.28.
|
|
Small-cap mover
SUNDARAM FINANCE | Last week's close (Rs) | 249.50 | Prev. week's close (Rs) | 226.55 | Week's high (Rs) | 268.50 | Week's low (Rs) | 224.95 | Last week's ave. daily turnover (Rs cr) | 0.17 | Prev. week's ave. daily turnover (Rs cr) | 0.03 | Futures close |
NT | Number of up/down move |
0/0 |
|
|
Sundaram Finance gained an impressive 10.13 per cent at the exchanges last week. Reports that Sunadaram Finance is set to merge Lakshmi General with itself seem to have set the stock in action. Consolidation is most welcome in the NBFC sector, say analysts.
|
|
It will help NBFCs face competition from banks better. The merger will bring about economies of scale of operations, giving the two companies strength in terms of assets and customers.
|
|
Analysts say the merger may have been done as an attempt to reduce costs as margins in the industry are continuously slipping.
|
|
VIDEOCON APPLIANCES The scrip declined 4.81 per cent to end at Rs 25.75. |
|