Update 4
Recovery from lower level sustained
The market was weak but range bound in late trading. A host of Sensex constituents were off lower level.At 14:55 IST, Sensex was down 375 points at 13,423.Sensex moved in a range of between 13,412 to 13,454 since 14:14 IST.
Earlier, after a fall of a massive 537.76 points, to 13,261.73 by 12:59 IST, Sensex had recovered from lower level in volatile trade.BSE clocked a turnover of Rs 4182 crore.
Good response was witnessed in the Cairn India IPO which opened for subscription today. By 14:00 IST, the IPO had got bids for 17.71 crore shares compared to the issue size of 32.8 crore shares. Most of the bidding took place at the upper end of the Rs 160 to Rs 190 price band.
European shares opened on a positive note. Key benchmark indices in London, France and Germany were up by between 0.4% to 0.8%. Key benchmark indices in Asia were up by between 0.02% to 1%.
Finance Minister Palaniappan Chidambaram on Monday said an increase in the cash reserve ratio for banks was to moderate credit growth and the government was ready to take further action to curb inflation. RBI’s surprise hike in cash reserve ratio (CRR) by 50 basis points announced after trading hours on Friday, and data showing heavy FII sales in the futures segment on Friday (8 December), weighed on the bourses today.
Banks are likely to take a final view on raising interest rates on loans as well as deposits, by the end of this week, or early next week. Reports suggest that interest rates on home loans are likely to the first casualty.
L&T suffers collateral damage
L&T declined 1.83% to Rs 1,424.10, despite winning a Delhi airport contract worth over Rs 5,400 crore.As many as 1.87 lakh shares were traded in the counter on BSE. The stock surged to a high and a low of Rs 1,461 and Rs 1,406.30 ,respectively, intra-day.
The order involves design and construction of a passenger terminal, and one of Asia's longest runways. L&T will also carry out associated work for the airport, scheduled to be commissioned in 2010 for the Commonwealth Games.
In an analyst meet held recently, L&T said its sales will grow at 20% in October 2006 - March 2007, compared to 12% in the first half of the financial year, as it will execute large part of the orders it had received in the second half of the financial year ended 31 March 2006. The company also said these orders enjoy a margin of 8.5%.
L&T has also decided to go for developing properties at Bangalore and Hyderabad, through Urban Infrastructure, its subsidiary, which had a land value of Rs 2,500 crore as on 1 October 2005. It will not unlock value in subsidiaries but will wait for their performance to improve remarkable, and reach a scale on its own.
The company has had a technological collaboration with Mitsubishi, Japan, a world-leader in super critical boilers. L&T intends to manufacture boilers for more than 600 Mw power plants. A joint venture with an investment of Rs 500 crore (50% each partner) will be formed and further disclosure will be made by January 2007. The company intends to build boiler capacity to the extent of 2,000 Mw per year. Boilers constitute nearly 25% of the total capital cost of installing a power plant, whereas turbines constitute nearly 10% of the total cost. Most turbines are imported from China and Taiwan.
The market was weak but range bound in late trading. A host of Sensex constituents were off lower level.At 14:55 IST, Sensex was down 375 points at 13,423.Sensex moved in a range of between 13,412 to 13,454 since 14:14 IST.
Earlier, after a fall of a massive 537.76 points, to 13,261.73 by 12:59 IST, Sensex had recovered from lower level in volatile trade.BSE clocked a turnover of Rs 4182 crore.
Good response was witnessed in the Cairn India IPO which opened for subscription today. By 14:00 IST, the IPO had got bids for 17.71 crore shares compared to the issue size of 32.8 crore shares. Most of the bidding took place at the upper end of the Rs 160 to Rs 190 price band.
European shares opened on a positive note. Key benchmark indices in London, France and Germany were up by between 0.4% to 0.8%. Key benchmark indices in Asia were up by between 0.02% to 1%.
Finance Minister Palaniappan Chidambaram on Monday said an increase in the cash reserve ratio for banks was to moderate credit growth and the government was ready to take further action to curb inflation. RBI’s surprise hike in cash reserve ratio (CRR) by 50 basis points announced after trading hours on Friday, and data showing heavy FII sales in the futures segment on Friday (8 December), weighed on the bourses today.
Banks are likely to take a final view on raising interest rates on loans as well as deposits, by the end of this week, or early next week. Reports suggest that interest rates on home loans are likely to the first casualty.
L&T suffers collateral damage
L&T declined 1.83% to Rs 1,424.10, despite winning a Delhi airport contract worth over Rs 5,400 crore.As many as 1.87 lakh shares were traded in the counter on BSE. The stock surged to a high and a low of Rs 1,461 and Rs 1,406.30 ,respectively, intra-day.
The order involves design and construction of a passenger terminal, and one of Asia's longest runways. L&T will also carry out associated work for the airport, scheduled to be commissioned in 2010 for the Commonwealth Games.
In an analyst meet held recently, L&T said its sales will grow at 20% in October 2006 - March 2007, compared to 12% in the first half of the financial year, as it will execute large part of the orders it had received in the second half of the financial year ended 31 March 2006. The company also said these orders enjoy a margin of 8.5%.
L&T has also decided to go for developing properties at Bangalore and Hyderabad, through Urban Infrastructure, its subsidiary, which had a land value of Rs 2,500 crore as on 1 October 2005. It will not unlock value in subsidiaries but will wait for their performance to improve remarkable, and reach a scale on its own.
The company has had a technological collaboration with Mitsubishi, Japan, a world-leader in super critical boilers. L&T intends to manufacture boilers for more than 600 Mw power plants. A joint venture with an investment of Rs 500 crore (50% each partner) will be formed and further disclosure will be made by January 2007. The company intends to build boiler capacity to the extent of 2,000 Mw per year. Boilers constitute nearly 25% of the total capital cost of installing a power plant, whereas turbines constitute nearly 10% of the total cost. Most turbines are imported from China and Taiwan.
posted by SY at 3:13 PM
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