Hectic activity in Cairn India on listing day
Cairn India’s weak listing was the highlight of today’s trade, which traded in discount throughout the day’s trading session. The stock settled at a steep discount, at Rs 137.50, on BSE on high volumes of 3.26 crore shares. Cairn India debuted at Rs 140 on BSE, a discount of 12.50% compared to the IPO price of Rs 160 per share, fluctuating within Rs 155 - Rs 128.65 price-range.
The combined volume on the two bourses was 10 crore. It accounted for 30.4% of 32.88 crore shares offered through the IPO, or 5.6% of Cairn India’s post-issue equity of Rs 1765.31 crore (176.531 crore shares of Rs 10 each).
However, Cairn India did manage to add a feather to its cap. The oil exploration behemoth of British parentage entered the league of top 50 Indian companies in terms of market capitalisation on Day 1. The company’s market capitalisation at end of today’s trading was Rs 24273.01 crore, and is 31st largest in India. Cairn India has a large equity base of Rs 1765.31 crore, with parent Cairn Energy owning 67.6%.
Meanwhile, the market, which had opened positive on back of a recovery in the Asian markets, slipped into the red as profit-booking began. IT stocks led the fall on concerns that an appreciating rupee will impact profitability.
With today’s fall, the markets have extended their losses into the fourth straight day. From an all-time closing high of 14,014.92 on 3 January 2007, the Sensex slipped for the fourth straight day, as wariness crept in ahead of India Inc. results for December quarter.
The 30-shares BSE Sensex lost 85.82 points, to finish at 13,652.15. It had also surged to an intra-day high of 13,748.42, the intra-day low being 13,493.38.
The S&P CNX Nifty lost 22 points, to end at 3,911.40.
The market-breadth, which was strong in the first half of the trading session, turned negative. For 1,274 shares rising on BSE, 1,369 declined. A total of 54 shares were unchanged. The BSE Small-Cap index closed at 7,211.89, down 39 points (0.5%), while the BSE Mid-Cap Index settled 30 points (0.50%) lower, at 5,882.30.
The total turnover on BSE overtook the previous day’s, notching Rs 4698 crore, compared to Rs 3731 crore on Monday. A lot of block deals struck on BSE, as also a debut of Cairn India resulted in the high turnover.Among the 30-Sensex pack, 19 declined while the rest advanced.
Gujarat Ambuja Cements was the top gainer, up 2.45% to Rs 140, after a huge block deal of 2.25 crore shares was executed in the counter at Rs 136.65 per share, in opening trade. The deal constituted around 1.48% of the company's equity share capital of Rs 272.02 crore (face value Rs 2 per share). The details such as buyers and sellers in the deal, were not immediately known. The cumulative volume stands at 2.30 crore shares on BSE.
PSU oil explorer ONGC advanced 1.45% to Rs 924.10, after surging to a high of Rs 935.90. US crude oil fell below $56 a barrel as winter weather remained unusually warm in the United States. The scrip had also slipped to an intra-day low of Rs 908.
Index heavyweight Reliance Industries (RIL) rose 0.46% to Rs 1283, on a volume of 4.71 lakh shares. It had also surged to a high of Rs 1288.
Frontline IT stocks were sold heavily. IT stocks led the fall, on concerns that an appreciating rupee will impact profitability. The BSE IT index lost 0.85%. Satyam Computers was the top loser, down 4.40% to Rs 465. Infosys lost 0.59% to Rs 2193.
Reliance Communications lost 2.10% to Rs 426.20 on a volume of 29.71 lakh shares, following reports that it plans to raise up to $1.2 billion by way of a Global Depositary Receipt issue.
HDFC Bank dropped 1.73% to Rs 1010, after the company-scotched rumours of a bonus issue.
HDFC (down 1.73% to Rs 1565), SBI (down 3.30% to Rs 1172.90) and Tata Motors (down 2.33% to Rs 906) were the other losers.
Ranbaxy Laboratories was down 1.20% to Rs 414. There are reports that it is likely to bid for the generic drug arm of Darmstaadt-based German pharma major Merck. The deal size may be as high as $5 billion, going by the valuation of large generic pharma companies in recent deals.
A lot of block deals were struck on BSE today, the notable ones being Pyramid Saimira (2.65 lakh shares at Rs 198 per share), Federal Bank (3.40 lakh shares at Rs 227 per share), Donear Industries (2.53 lakh shares at Rs 228), MICO (1 lakh shares at Rs 3,522.90 per share) Adhunik Metaliks (10 lakh shares at Rs 37.75 per share) and more.
The BSE Capital Goods index was the biggest loser among sectoral indices. It shed 130 points (1.5%). KEC Infrastructure (down 3.4%), Alstom Projects (down 3.3%), Crompton Greaves (down 2.5%), and Siemens India (down 1.8%) declined.
Sadbhav Engineering rose 2.60% to Rs 551, after bagging a highway project worth Rs 510 crore in collaboration with SREI Infrastructure Finance. Sadbhav Engineering, in consortium with SREI Infrastructure Finance, has been awarded a project worth Rs 510 crore for four laning of the National Highway Number 7 between 596/750 km to 653/225 km in Madhya Pradesh on a BOT basis. The company’s share in the consortium is 51%, the rest, 49%, belongs to SREI Infrastructure Finance. The National Highways Authority of India (Ministry of Shipping, Road Transport and Highways), New Delhi, has given the contract to the consortium.
Financial outsourcing firm HOV Services jumped 10% to Rs 198.55, after receiving a mandate to collect accounts receivable worth $700 million in the healthcare sector on Tuesday. HOV Services said with the latest mandate of $700 million, the total debt assigned to the company for collections in the accounts receivable management (ARM) vertical is over $ 3.25 billion.
Punj Lloyd rose 2.10% to Rs 1020, after it secured an offshore platform project worth around $ 290 million from ONGC. Punj Lloyd, along with its offshore engineering arm, PT Sempec Indonesia, a wholly-owned subsidiary, has secured an offshore platform project - Heera Redevelopment Project - on an EPC basis from ONGC. The Heera field is located about 80 km west of Mumbai in the Arabian Sea. The project is scheduled to be completed within 16 months. With this, the order backlog for the group is Rs 11,201.74 crore. This is the total value of unexecuted orders as of 30 September 2006 and new orders received till date.
Praj Industries dropped 2.30% to Rs 225.25, even as the company reported robust Q3 December 2006 results. Praj Industries’ net profit jumped 809% to Rs 33.64 crore for Q3 December 2006 from Rs 3.70 crore in Q3 December 2005. Net sales jumped 231.7% to Rs 177.86 crore (Rs 53.62 crore).
Karur KCP Packagings climbed 4.75% to Rs 68.40, on receiving orders worth Rs 17.82 crore for January 2007. The January 2007 order-book is higher than last month’s total orders, which were worth Rs 16.52 crore.
Dabur Pharma lost 1.62% to Rs 82.15. The company said on Tuesday, it has purchased the anti-cancer sales and distribution business of its Thai partner, Biosciences Company. Dabur Pharma, however, did not disclose the value of the deal.
The Nikkei average rose 0.86% on Tuesday, as shares of Sony Corp jumped after an upgrade by Goldman Sachs, while JFE Holdings and other steel stocks rebounded from their recent falls. The Nikkei climbed 146.18 points, to 17,237.77.
Expectations that the Bank of Japan may raise interest rates at a policy meeting next week also helped shares of banks. The market was closed on Monday for a national holiday, after the Nikkei benchmark booked its largest one-day percentage fall in six weeks on Friday as investors took profits in shares that logged aggressive gains in a year-end rally.
Hang Seng index lost 131.58 points (0.66%), to 19,898.08.
Oil prices declined in Asian trading on Tuesday, as persistent mild weather in the US Northeast weakened demand for heating oil. Expectations that a midweek US government report will show domestic inventories rising, also softened prices.
Light, sweet crude for February delivery dropped 35 cents to $55.74 a barrel in electronic trading on the New York Mercantile Exchange in Singapore. The contract fell 22 cents to settle at $56.09 a barrel Monday on record January winter temperatures in Northeast US.
Meanwhile, in a judgement with far reaching implications, the Authority for Advance Ruling (AAR) said foreign institutional investors (FIIs) investing directly in Indian stocks will have to pay 10% short-term capital gains tax on their portfolio investments.
What this implies is that profits of these funds from investments in securities will be treated as capital gains and not as business income. In short, it can mean that they can only invest in shares and not trade in them.
The latest ruling could mean that foreign portfolio investors may have to pay a 10% capital gains tax, if they off-load shares within one year of holding them. Investments in stocks, if held for a year or more, are exempt from long-term capital gains tax.
US stocks advanced on Monday, led by tech shares, as brokerage upgrades on bellwether companies such as International Business Machines Corp boosted investor optimism.
The Dow Jones industrial average was up 25.48 points, or 0.21%, at 12,423.49. The Standard & Poor's 500 Index was up 3.13 points, or 0.22%, at 1,412.84. The Nasdaq Composite Index was up 3.95 points, or 0.16%, at 2,438.20.
As per provisional data, FIIs were net sellers to the tune of Rs 788 crore on 8 January. They were net sellers to the tune of Rs 799 crore in index-based futures and Rs 326 crore in individual stock futures on the same day. Net inflow from FIIs was Rs 0.90 crore on Friday (5 January), when the Sensex lost 11 points.
The combined volume on the two bourses was 10 crore. It accounted for 30.4% of 32.88 crore shares offered through the IPO, or 5.6% of Cairn India’s post-issue equity of Rs 1765.31 crore (176.531 crore shares of Rs 10 each).
However, Cairn India did manage to add a feather to its cap. The oil exploration behemoth of British parentage entered the league of top 50 Indian companies in terms of market capitalisation on Day 1. The company’s market capitalisation at end of today’s trading was Rs 24273.01 crore, and is 31st largest in India. Cairn India has a large equity base of Rs 1765.31 crore, with parent Cairn Energy owning 67.6%.
Meanwhile, the market, which had opened positive on back of a recovery in the Asian markets, slipped into the red as profit-booking began. IT stocks led the fall on concerns that an appreciating rupee will impact profitability.
With today’s fall, the markets have extended their losses into the fourth straight day. From an all-time closing high of 14,014.92 on 3 January 2007, the Sensex slipped for the fourth straight day, as wariness crept in ahead of India Inc. results for December quarter.
The 30-shares BSE Sensex lost 85.82 points, to finish at 13,652.15. It had also surged to an intra-day high of 13,748.42, the intra-day low being 13,493.38.
The S&P CNX Nifty lost 22 points, to end at 3,911.40.
The market-breadth, which was strong in the first half of the trading session, turned negative. For 1,274 shares rising on BSE, 1,369 declined. A total of 54 shares were unchanged. The BSE Small-Cap index closed at 7,211.89, down 39 points (0.5%), while the BSE Mid-Cap Index settled 30 points (0.50%) lower, at 5,882.30.
The total turnover on BSE overtook the previous day’s, notching Rs 4698 crore, compared to Rs 3731 crore on Monday. A lot of block deals struck on BSE, as also a debut of Cairn India resulted in the high turnover.Among the 30-Sensex pack, 19 declined while the rest advanced.
Gujarat Ambuja Cements was the top gainer, up 2.45% to Rs 140, after a huge block deal of 2.25 crore shares was executed in the counter at Rs 136.65 per share, in opening trade. The deal constituted around 1.48% of the company's equity share capital of Rs 272.02 crore (face value Rs 2 per share). The details such as buyers and sellers in the deal, were not immediately known. The cumulative volume stands at 2.30 crore shares on BSE.
PSU oil explorer ONGC advanced 1.45% to Rs 924.10, after surging to a high of Rs 935.90. US crude oil fell below $56 a barrel as winter weather remained unusually warm in the United States. The scrip had also slipped to an intra-day low of Rs 908.
Index heavyweight Reliance Industries (RIL) rose 0.46% to Rs 1283, on a volume of 4.71 lakh shares. It had also surged to a high of Rs 1288.
Frontline IT stocks were sold heavily. IT stocks led the fall, on concerns that an appreciating rupee will impact profitability. The BSE IT index lost 0.85%. Satyam Computers was the top loser, down 4.40% to Rs 465. Infosys lost 0.59% to Rs 2193.
Reliance Communications lost 2.10% to Rs 426.20 on a volume of 29.71 lakh shares, following reports that it plans to raise up to $1.2 billion by way of a Global Depositary Receipt issue.
HDFC Bank dropped 1.73% to Rs 1010, after the company-scotched rumours of a bonus issue.
HDFC (down 1.73% to Rs 1565), SBI (down 3.30% to Rs 1172.90) and Tata Motors (down 2.33% to Rs 906) were the other losers.
Ranbaxy Laboratories was down 1.20% to Rs 414. There are reports that it is likely to bid for the generic drug arm of Darmstaadt-based German pharma major Merck. The deal size may be as high as $5 billion, going by the valuation of large generic pharma companies in recent deals.
A lot of block deals were struck on BSE today, the notable ones being Pyramid Saimira (2.65 lakh shares at Rs 198 per share), Federal Bank (3.40 lakh shares at Rs 227 per share), Donear Industries (2.53 lakh shares at Rs 228), MICO (1 lakh shares at Rs 3,522.90 per share) Adhunik Metaliks (10 lakh shares at Rs 37.75 per share) and more.
The BSE Capital Goods index was the biggest loser among sectoral indices. It shed 130 points (1.5%). KEC Infrastructure (down 3.4%), Alstom Projects (down 3.3%), Crompton Greaves (down 2.5%), and Siemens India (down 1.8%) declined.
Sadbhav Engineering rose 2.60% to Rs 551, after bagging a highway project worth Rs 510 crore in collaboration with SREI Infrastructure Finance. Sadbhav Engineering, in consortium with SREI Infrastructure Finance, has been awarded a project worth Rs 510 crore for four laning of the National Highway Number 7 between 596/750 km to 653/225 km in Madhya Pradesh on a BOT basis. The company’s share in the consortium is 51%, the rest, 49%, belongs to SREI Infrastructure Finance. The National Highways Authority of India (Ministry of Shipping, Road Transport and Highways), New Delhi, has given the contract to the consortium.
Financial outsourcing firm HOV Services jumped 10% to Rs 198.55, after receiving a mandate to collect accounts receivable worth $700 million in the healthcare sector on Tuesday. HOV Services said with the latest mandate of $700 million, the total debt assigned to the company for collections in the accounts receivable management (ARM) vertical is over $ 3.25 billion.
Punj Lloyd rose 2.10% to Rs 1020, after it secured an offshore platform project worth around $ 290 million from ONGC. Punj Lloyd, along with its offshore engineering arm, PT Sempec Indonesia, a wholly-owned subsidiary, has secured an offshore platform project - Heera Redevelopment Project - on an EPC basis from ONGC. The Heera field is located about 80 km west of Mumbai in the Arabian Sea. The project is scheduled to be completed within 16 months. With this, the order backlog for the group is Rs 11,201.74 crore. This is the total value of unexecuted orders as of 30 September 2006 and new orders received till date.
Praj Industries dropped 2.30% to Rs 225.25, even as the company reported robust Q3 December 2006 results. Praj Industries’ net profit jumped 809% to Rs 33.64 crore for Q3 December 2006 from Rs 3.70 crore in Q3 December 2005. Net sales jumped 231.7% to Rs 177.86 crore (Rs 53.62 crore).
Karur KCP Packagings climbed 4.75% to Rs 68.40, on receiving orders worth Rs 17.82 crore for January 2007. The January 2007 order-book is higher than last month’s total orders, which were worth Rs 16.52 crore.
Dabur Pharma lost 1.62% to Rs 82.15. The company said on Tuesday, it has purchased the anti-cancer sales and distribution business of its Thai partner, Biosciences Company. Dabur Pharma, however, did not disclose the value of the deal.
The Nikkei average rose 0.86% on Tuesday, as shares of Sony Corp jumped after an upgrade by Goldman Sachs, while JFE Holdings and other steel stocks rebounded from their recent falls. The Nikkei climbed 146.18 points, to 17,237.77.
Expectations that the Bank of Japan may raise interest rates at a policy meeting next week also helped shares of banks. The market was closed on Monday for a national holiday, after the Nikkei benchmark booked its largest one-day percentage fall in six weeks on Friday as investors took profits in shares that logged aggressive gains in a year-end rally.
Hang Seng index lost 131.58 points (0.66%), to 19,898.08.
Oil prices declined in Asian trading on Tuesday, as persistent mild weather in the US Northeast weakened demand for heating oil. Expectations that a midweek US government report will show domestic inventories rising, also softened prices.
Light, sweet crude for February delivery dropped 35 cents to $55.74 a barrel in electronic trading on the New York Mercantile Exchange in Singapore. The contract fell 22 cents to settle at $56.09 a barrel Monday on record January winter temperatures in Northeast US.
Meanwhile, in a judgement with far reaching implications, the Authority for Advance Ruling (AAR) said foreign institutional investors (FIIs) investing directly in Indian stocks will have to pay 10% short-term capital gains tax on their portfolio investments.
What this implies is that profits of these funds from investments in securities will be treated as capital gains and not as business income. In short, it can mean that they can only invest in shares and not trade in them.
The latest ruling could mean that foreign portfolio investors may have to pay a 10% capital gains tax, if they off-load shares within one year of holding them. Investments in stocks, if held for a year or more, are exempt from long-term capital gains tax.
US stocks advanced on Monday, led by tech shares, as brokerage upgrades on bellwether companies such as International Business Machines Corp boosted investor optimism.
The Dow Jones industrial average was up 25.48 points, or 0.21%, at 12,423.49. The Standard & Poor's 500 Index was up 3.13 points, or 0.22%, at 1,412.84. The Nasdaq Composite Index was up 3.95 points, or 0.16%, at 2,438.20.
As per provisional data, FIIs were net sellers to the tune of Rs 788 crore on 8 January. They were net sellers to the tune of Rs 799 crore in index-based futures and Rs 326 crore in individual stock futures on the same day. Net inflow from FIIs was Rs 0.90 crore on Friday (5 January), when the Sensex lost 11 points.
posted by SY at 6:22 PM
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