Update 1
Market-breadth rock solid
The market-breadth was rock solid as a host of small-cap and mid-cap counters rallied on high volumes. For 1,240 shares rising on BSE, 247 declined. Just 34 shares were unchanged. Gainers outpaced losers by a ratio of 5:1.The market also extended its gains on strong buying in blue-chips.
At 11:21 IST the Sensex was up 199.20 points, at 13,380.54. It opened firm, at 13,256.81, as buying continued following a 186-point rally on Wednesday. The BSE benchmark had also spurted to an intra-day high of 13,381.46, a little while ago.
The BSE clocked a turnover of Rs 1741 crore.Among the 30-Sensex pack, 27 advanced while the rest slipped.Private sector lending major HDFC was the top gainer, up 3.33% to Rs 1,550, on 18,834 shares.
MUL revs up on price hike buzz
Maruti Udyog gained 1.4% to Rs 898.75, amid reports that it will usher in the New Year by hiking prices of cars.
The stock witnessed a solid bounce back from the lower level in late-November 2006. However, it had lost steam later in a weak market. From a high of Rs 960.80 on 4 December, it had tumbled to Rs 883.75 on 12 December. It also gained a bit to Rs 885.80 on 13 December 2006.Earlier, the Maruti scrip witnessed a set-back early last month after Nissan Motor Company said it had discontinued talks with Suzuki Motor Corporation for a project in India.
Maruti Udyog will raise prices from January 2007 by as much as Rs 12,000, to help offset higher freight and component costs, newspapers said on Thursday. The company has sent letters to dealers informing them of the increase effective January, papers quoted sources. The company will also shut down its plant near New Delhi for maintenance from Dec. 24-31, papers added. Maruti had raised prices of some of its cars in August by between Rs 500 to Rs 5,000.
Maruti reported selling 55,033 vehicles in November, a 16.1% rise y-o-y. The company’s domestic sales rose an annual 20.7% to 52,574, but exports fell 35.7% to 2,459 units.
ICICI Bank in demand on rate hike
ICICI Bank rose 2% to Rs 848, on hiking lending rates by 50 basis points.As many as 77,687 shares changed hands in the counter on BSE.
The hike in lending rates will help protect margins at a time when deposit rates/cost of funds are also rising. On Wednesday, the ICICI Bank ADR surged 3.6% to $38.34, boosted by the news. ICICI Bank said, the hike in lending rates for both corporate and consumer loans will take effect from 18 December.
The bank raised its benchmark advance rate from 13.25% to 13.75%. Along with lending rate, ICICI Bank has also raised deposit rates by 25 basis points - 75 basis points, for varying maturities, to ensure accretion of deposits.
The credit demand remains strong with banking sector loans rising 30%.
ICICI Bank stock had risen 3% on Wednesday (13 December) to Rs 830.30 before the announcement. Earlier, it had plunged 8.1% in just two trading sessions from Rs 876.70 on 8 December to Rs 805.60 on 12 December in a broad decline in banking stocks, sparked by an RBI move to raise cash reserve ratio.
The RBI had raised the cash reserve ratio, or the percentage of bank's cash deposits kept with the central bank, by 50 basis points to 5.50%. CRR hike will impact profit-margins of banks, as CRR deposits with RBI does not fetch any returns for them.
Central Asian conquest boosts ONGC
ONGC rose 2.2% to Rs 806, on reports that its joint venture with Mittal group, is close to signing an agreement for an oil block in Turkmenistan.As many as 1.3 lakh shares changed hands in the counter on BSE.
Another report that ONGC’s overseas investment arm proposes to undertake joint exploration and production activities in Iraq with Reliance Industries (RIL), too, aided the recovery after a steep decline in the past four days.
From Rs 864.90 on 6 December 2006, the stock had plunged 8.7% in four trading sessions to Rs 789.10 on 13 December.
ONGC Mittal Energy (OMEL), the joint venture between ONGC and Mittal group, is also eyeing opportunities in Kazakhstan, Azerbaijan and Indonesia, reports add. OMEL has also bagged two blocks in Nigeria and the production-sharing contracts are expected to be signed shortly. The joint venture recently bid for an offshore block in Trinidad & Tobago.
Meanwhile, ONGC and RIL are likely to rope in Angolan oil firm Sonatrach to take up joint exploration of a discovered block - touted to have a production capacity of 1,50,000 barrels a day - in south Iraq, reports suggest.
Analysts say, ONGC is one of the less expensive frontliners. The current price of Rs 806 discounts its trailing 12-months September 2006 EPS of Rs 69.40, by a PE multiple of 11.6.The company has also set up a board meeting on 23 December 2006, to consider an interim dividend.
The market-breadth was rock solid as a host of small-cap and mid-cap counters rallied on high volumes. For 1,240 shares rising on BSE, 247 declined. Just 34 shares were unchanged. Gainers outpaced losers by a ratio of 5:1.The market also extended its gains on strong buying in blue-chips.
At 11:21 IST the Sensex was up 199.20 points, at 13,380.54. It opened firm, at 13,256.81, as buying continued following a 186-point rally on Wednesday. The BSE benchmark had also spurted to an intra-day high of 13,381.46, a little while ago.
The BSE clocked a turnover of Rs 1741 crore.Among the 30-Sensex pack, 27 advanced while the rest slipped.Private sector lending major HDFC was the top gainer, up 3.33% to Rs 1,550, on 18,834 shares.
MUL revs up on price hike buzz
Maruti Udyog gained 1.4% to Rs 898.75, amid reports that it will usher in the New Year by hiking prices of cars.
The stock witnessed a solid bounce back from the lower level in late-November 2006. However, it had lost steam later in a weak market. From a high of Rs 960.80 on 4 December, it had tumbled to Rs 883.75 on 12 December. It also gained a bit to Rs 885.80 on 13 December 2006.Earlier, the Maruti scrip witnessed a set-back early last month after Nissan Motor Company said it had discontinued talks with Suzuki Motor Corporation for a project in India.
Maruti Udyog will raise prices from January 2007 by as much as Rs 12,000, to help offset higher freight and component costs, newspapers said on Thursday. The company has sent letters to dealers informing them of the increase effective January, papers quoted sources. The company will also shut down its plant near New Delhi for maintenance from Dec. 24-31, papers added. Maruti had raised prices of some of its cars in August by between Rs 500 to Rs 5,000.
Maruti reported selling 55,033 vehicles in November, a 16.1% rise y-o-y. The company’s domestic sales rose an annual 20.7% to 52,574, but exports fell 35.7% to 2,459 units.
ICICI Bank in demand on rate hike
ICICI Bank rose 2% to Rs 848, on hiking lending rates by 50 basis points.As many as 77,687 shares changed hands in the counter on BSE.
The hike in lending rates will help protect margins at a time when deposit rates/cost of funds are also rising. On Wednesday, the ICICI Bank ADR surged 3.6% to $38.34, boosted by the news. ICICI Bank said, the hike in lending rates for both corporate and consumer loans will take effect from 18 December.
The bank raised its benchmark advance rate from 13.25% to 13.75%. Along with lending rate, ICICI Bank has also raised deposit rates by 25 basis points - 75 basis points, for varying maturities, to ensure accretion of deposits.
The credit demand remains strong with banking sector loans rising 30%.
ICICI Bank stock had risen 3% on Wednesday (13 December) to Rs 830.30 before the announcement. Earlier, it had plunged 8.1% in just two trading sessions from Rs 876.70 on 8 December to Rs 805.60 on 12 December in a broad decline in banking stocks, sparked by an RBI move to raise cash reserve ratio.
The RBI had raised the cash reserve ratio, or the percentage of bank's cash deposits kept with the central bank, by 50 basis points to 5.50%. CRR hike will impact profit-margins of banks, as CRR deposits with RBI does not fetch any returns for them.
Central Asian conquest boosts ONGC
ONGC rose 2.2% to Rs 806, on reports that its joint venture with Mittal group, is close to signing an agreement for an oil block in Turkmenistan.As many as 1.3 lakh shares changed hands in the counter on BSE.
Another report that ONGC’s overseas investment arm proposes to undertake joint exploration and production activities in Iraq with Reliance Industries (RIL), too, aided the recovery after a steep decline in the past four days.
From Rs 864.90 on 6 December 2006, the stock had plunged 8.7% in four trading sessions to Rs 789.10 on 13 December.
ONGC Mittal Energy (OMEL), the joint venture between ONGC and Mittal group, is also eyeing opportunities in Kazakhstan, Azerbaijan and Indonesia, reports add. OMEL has also bagged two blocks in Nigeria and the production-sharing contracts are expected to be signed shortly. The joint venture recently bid for an offshore block in Trinidad & Tobago.
Meanwhile, ONGC and RIL are likely to rope in Angolan oil firm Sonatrach to take up joint exploration of a discovered block - touted to have a production capacity of 1,50,000 barrels a day - in south Iraq, reports suggest.
Analysts say, ONGC is one of the less expensive frontliners. The current price of Rs 806 discounts its trailing 12-months September 2006 EPS of Rs 69.40, by a PE multiple of 11.6.The company has also set up a board meeting on 23 December 2006, to consider an interim dividend.
posted by SY at 12:16 PM
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