Wednesday, January 6, 2010

Not many worries as yet!

% to rally for a second day and as Barclays gained 6.3%.

Bulls extended gains on Tuesday ending on a new closing high. The rally was led by metals and realty stocks. The Mid-Cap and the Small-Cap stocks also healthy attracted buying. Strong manufacturing data, favorable comments from Fed officials and overnight gains in the US and Asia had an overall positive effect.

The BSE Sensex advanced 128 points to end at 17,686 after touching a high of 17,729 and a low of 17,578. The Nifty advanced 46 points to end at 5,278.

Equity markets in Asia were positive. The Nikkei in Japan was up 0.25%, while Australia's S&P/ASX ended higher by 1%. The Shanghai SE Composite gained 1.25% and Hang Seng index in Hong Kong was up 2%.

In Europe, stocks were trading flat. The DAX in Germany was down 0.2% and the CAC 40 index in France was down 0.2%. The FTSE in the UK was flat.

Coming back to India, among the BSE sectoral indices, the Metals index was the top gainer, adding 4%, followed by the Realty index that was up 1.2% and the BSE Teck index was up 1%. Even the BSE Mid-Cap index gained 1.2% while the BSE Small-Cap index was up 1%.

Among the 30-components of Sensex, 23 stocks ended in the positive terrain and 7 ended in the red. Hindalco, JP Associates, Sterlite Industries, RCom and Grasim were among the top gainers.

On the other hand, among the major losers were Maruti, Tata Motors, ACC, NTPC and Reliance Industries.

Outside the frontline indices, the big gainers in the broader market were MTNL, Gujarat NRE Coke, SCI, CESC and Tata Communication. On the other hand, losers included Videocon Ind, Central Bank, Fortis Health and Indian Hotels.

Bharti Airtel's US$300mn initial investment proposal for acquiring 70% stake in Warid has been approved by the Bangladesh telecom regulator.

Chairman Zia Ahmed of Bangladesh Telecommunication Regulatory Commission (BTRC) was quoted as saying "We have approved Bharti Airtel's plan to buy the Warid stake".

"We hope Airtel investment would cross US$1bn within the next few years," Ahmed said. He further added, "Whatever price Airtel is going to pay for Warid stake, as per law, 5.5% of the deal amount must go to BTRC".

Shares of Bharti Airtel gained by 1.6% to end at Rs330. The scrip opened at Rs325 it touched an intra-day high of Rs332 and a low of Rs325 and recorded volumes of over 1mn shares on BSE.

Maruti Suzuki announced that it plans to create a new segment with the launch of its new 7 seater family car, MD & CEO, Shinzo Nakanishi was quoted as saying. The company showcased its new MPV Multi Purpose Vehicle at the auto show in Delhi.

Nakanishi said that Maruti Suzuki hopes to maintain sales growth in calendar 2010 despite rising raw material costs, inflation and the rise of the yen against the rupee.

"This is not an easy job this year with so many new cars being launched," he said, when asked if Maruti will be able to maintain its 50% market share. "We have to make preparations for this," he added.

Separately, the company’s finance head Ajay Seth was quoted as saying that Maruti Suzuki will decide later this month on a proposal to expand capacity.

The company has cash reserves of Rs50bn and will utilize that for the expansion, he said. Maruti has no plans to take loans, Seth said.

Maruti Suzuki expects sales this fiscal year (FY10) to reach a record 1 million units, Nakanishi said in New Delhi today.

Shares of Dr. Reddy’s Labs surged by over 3% to end at Rs1177 after the company along with Rheoscience announced that their Balaglitazone diabetes drug has met its primary target in the first of its phase 3 clinical trials.

Balaglitazone reduced blood glucose levels over a period of time in the study conducted on 409 patients, D. Reddy’s said in a statement.

Opto Circuits announced that Eurocor GmbH the Company's wholly owned subsidiary has received the CE (Communite European) Mark approval for marketing and sale of its novel Drug Eluting Stent-Taxcor Plus in world markets (sans US and Japan).

Taxcor Plus is on a Cobalt Chromium platform with Stent struts of 0.0025", which is one of the thinnest struts available in the industry. The stent is coated with Paclitaxel (1 pg/mm 2).

The stock shot up by over 4.5% to end at Rs237. The scrip opened at Rs230 it touched an intra-day high of Rs239 and a low of Rs228 and recorded volumes of over 0.46mn shares on BSE.

Shares of Sadbhav Engineering advanced by over 2% to end at Rs1235 after the company announced that it won project worth Rs13.50bn of "4 laning of Rohtak to Panipat Section of NH-71A from km 0.000 (Km 63.30 of NH-10) to km 80.858 (Km 83.50 of NH-1) in the state of Haryana on BOT basis under NHDP Phase-III." from The General Manager (Tech)-P&H, National Highways Authority of India (Ministry of Road Transport and Highways) G-5&6, Sector-10, Dwarka, New Delhi-110075.

The Concession Period of the project is 25 (Twenty Five) years inclusive of construction period of 910 Nine Hundred Ten) days from Appointed Date.

Shares of Viceroy Hotels were locked at 10% upper circuit at Rs54.35 after the company announced that the board of directors will meet on January 07, 2010, to consider and approve the raising of long term resources for the company

through issue of fresh equity shares.

To consider and approve the additional sanctions of Rs1.13bn to part finance the Bangalore Hotel Project from Syndicate Bank, Canara Bank, IDBI Bank, Allahabad bank and Lakshmivilas Bank and authorise the MD to execute the necessary loan agreements and also to consider the proposal to re-structure the Company's hotel assets.

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