It was a Good day of strength for Indian markets coupled with favorable cues from the global markets. Following to the Friday?s momentum Indian markets continued with a gap-up and the Sensex mount to gain more than 500+ points. Value buying was seen in sectors like Realty, IT, Capital goods and Metal space. Post opening indices traded extremely strong and stable, gripped to its gains for most of the day. But after mid session profit booking kept the indices down from high level. However the value buying at lows fueled the recovery and ended with a big gain for the day. Mid and Small caps were in focus and the indices ended with good gains of nearly 3% in line with the frontline indices. Oil Marketing Companies buzz the news that cabinet may hike fuel prices, as result of this stock rallied for the day. Asian indices closed in the green with a big gain from Shanghai (+8.13%), Hang Seng (+3.77%) and Nikkei (+2.69%) while the European markets witnessing a positive trade.
Alok Industries (Alok) quarterly numbers for December ended 2007 were in line with the expectations. Topline for the quarter grew by 15% yoy to Rs 551 Cr. Exports sales during the quarter grew by 62% to Rs 251 Cr from Rs 155 Cr during the corresponding quarter last year while sales were comparatively down. Ebidta margins witnessed healthy growth to 24.5%. Increase in export sales of value added products helped out the growth. Going forward margins are expected to grow after new capacities come on stream. Net profit margins grew marginally up by 120 bps for this quarter on YoY basis. The progress on the company's ongoing expansions under Phase-III and Phase - IV are progressing satisfactorily and are likely to be completed as per schedule. Alok is also hiking its holding in Mileta International by acquiring an additional 19.80% stake in Mileta International for 1.75 mn Euro thereby taking its stake in Mileta to 79.80%. Valuations are good for the textile company which is now restructuring itself and focusing more on each segment. Expect a detailed note on the numbers and re-structuring exercises done by the company very soon. Stock ended up by 14%.
Rcom today reported that it will come out with Tower business IPO Reliance Infratel, The issue will constitute 10.05% of the post-issue paid-up capital of Reliance Infratel. At least 30% of the issue shall be available for allocation on a proportionate basis to retail bidders. The company's business is to build, own and operate telecommunication towers and related assets at designated sites and to provide these passive telecommunication infrastructure assets on a shared basis to wireless service providers and other communications service providers under long-term contracts. These customers use the space on the company's telecommunication towers to install their active communication-related equipment to operate their wireless communications networks. The issue proceeds will be utilized to finance the development of passive infrastructure sites and for general corporate purposes. With the valuation on the towering business of new entity Rcom surged higher on the back of same news and ended higher by 14% for the day.
Technically Speaking: Market traded strong with positive market breadth and favorable external cues. Volume was relatively muted today at Rs 5743 Cr. The breadth was in favor of advances as there were 2325 advances against 635 Declines. Sensex seems headed towards our target of 19200. The immediate resistances are at 18850 and 19020. Supports at 18480 and 18230 levels.
Alok Industries (Alok) quarterly numbers for December ended 2007 were in line with the expectations. Topline for the quarter grew by 15% yoy to Rs 551 Cr. Exports sales during the quarter grew by 62% to Rs 251 Cr from Rs 155 Cr during the corresponding quarter last year while sales were comparatively down. Ebidta margins witnessed healthy growth to 24.5%. Increase in export sales of value added products helped out the growth. Going forward margins are expected to grow after new capacities come on stream. Net profit margins grew marginally up by 120 bps for this quarter on YoY basis. The progress on the company's ongoing expansions under Phase-III and Phase - IV are progressing satisfactorily and are likely to be completed as per schedule. Alok is also hiking its holding in Mileta International by acquiring an additional 19.80% stake in Mileta International for 1.75 mn Euro thereby taking its stake in Mileta to 79.80%. Valuations are good for the textile company which is now restructuring itself and focusing more on each segment. Expect a detailed note on the numbers and re-structuring exercises done by the company very soon. Stock ended up by 14%.
Rcom today reported that it will come out with Tower business IPO Reliance Infratel, The issue will constitute 10.05% of the post-issue paid-up capital of Reliance Infratel. At least 30% of the issue shall be available for allocation on a proportionate basis to retail bidders. The company's business is to build, own and operate telecommunication towers and related assets at designated sites and to provide these passive telecommunication infrastructure assets on a shared basis to wireless service providers and other communications service providers under long-term contracts. These customers use the space on the company's telecommunication towers to install their active communication-related equipment to operate their wireless communications networks. The issue proceeds will be utilized to finance the development of passive infrastructure sites and for general corporate purposes. With the valuation on the towering business of new entity Rcom surged higher on the back of same news and ended higher by 14% for the day.
Technically Speaking: Market traded strong with positive market breadth and favorable external cues. Volume was relatively muted today at Rs 5743 Cr. The breadth was in favor of advances as there were 2325 advances against 635 Declines. Sensex seems headed towards our target of 19200. The immediate resistances are at 18850 and 19020. Supports at 18480 and 18230 levels.
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