Nov industrial data instills greater faith
The market held firm in early afternoon trade after the latest data showed industrial production rising 14.4% in November 2006.
At 12:29 IST the Sensex was up 296 points, at 13,927. It also hit a high of 13,930.29 at 12:30 IST, a gain of 299.58 points for the day.Banks held firm. Bhel firmed up in afternoon trade. IT and auto shares were in demand.The market-breadth was strong. For 1,774 shares rising on BSE, 755 declined. Just 53 shares were unchanged. Gainers outpaced losers by a ratio of 2.3:1.The BSE clocked a turnover of Rs 2235 crore.
Latest data showed the wholesale price index rose 5.58% in the 12 months to 30 Dec 2006, higher than previous week's annual rise of 5.48% due to a rise in food and fuel prices, data showed on Friday. The figures were slightly lower than estimated 5.6%.
Banks surged after the Union Cabinet on Thursday approved change in a banking law, giving RBI more operational flexibility over lowering the statutory liquidity ratio requirement (SLR). At present, the law mandates banks to keep a minimum of 25% funds with the central bank as their SLR requirement.
A reduction in SLR will release more funds to banks for lending. With the growth in banks’ loan portfolios outstripping the growth in their deposit base, several banks have been selling their SLR holdings in excess of the 25 per cent limit and are now close to the stipulated threshold.
Ucal Fuel slumps on stunted growth
Ucal Fuel plunged 4.13% to Rs 125.25, after it reported a paltry 5.20% rise in net profit for Q3 December 2006.A strong 54,076 shares changed hands in the counter on BSE.The stock witnessed a steady pre-result rally anticipating strong results. From Rs 106.90 on 21 December, it surged to Rs 130.65 by 11 January 2007, as buying continued.
Ucal Fuel reported a 5.20% rise in Q3 December 2006 net profit to Rs 5 crore, compared to Rs 4.80 crore in rise in Q3 December 2005. Net sales rose 17.30% to Rs 78.2 crore (Rs 66.6 crore).
In June 2006, Ucal Fuel acquired 100% equity shares of Amtec Precision Products (AMTEC), USA, on June 2005. After Ucal Fuel completed acquistion of AMTEC, the latter, consequently, became a wholly-owned subsidiary of the company. AMTEC, based in Elgin, Illinois, manufactures precision machined and specialised injection moulded products for OEMs such as Siemens, Emerson, Cummins and Parker.
Based at Chennai, Ucal Fuel manufactures carburettors and fuel injection parts in collaboration with Mikuni Corporation of Japan.
Power project pact spells gains for Ispat Ind
Steel maker Ispat Industries rose 3.51% to Rs 12.69, amid reports that it will set up a 600 Mw coal-based power project in Chhatisgarh.The company signed a memorandum of understanding (MoU) with the Chhattisgarh government for the project with an estimated worth of Rs 2,500 crore.
The company may float a special purpose vehicle (SPV) for the purpose. The project, which will come up in Janjgir-Champa district of the state, may be funded in a 70:30 debt-equity ratio. The company intends to use part of the power to run its integrated steel plant at Dolvi, Maharashtra, and the rest will be sold to the state electricity boards.
Last month, the Pramod and Vinod Mittal-controlled steel company signed a Rs 2,000-crore agreement with the Maharashtra Government to augment capacities to 5.4 million tonne at its plant in Dolvi. The company is also contemplating raising $500 million through overseas debt bonds for expansion of its steel plant at Dolvi (Maharashtra) over the next 18 months. The plant is scheduled to commence production in 2011.
As many as 10.44 lakh shares changed hands in the counter on BSE.The stock witnessed a steady rally in the past few weeks, from Rs 10.94 on 28 December to Rs 12.23 on 11 January 2007, as buying continued.
Ispat had also recently announced a 3 million tone pellet plant in Vizag, which is likely to cost around Rs 900 crore. The plant will take two years to go online.
Ispat reported improved financial performance for the quarter ended 30 September 2006 with a net profit of Rs 2.32 crore as against a net loss of Rs 363.01 crore in the corresponding period last year. Net sales jumped 54.3% to Rs 1884.25 crore (Rs 1221.19 crore).
At 12:29 IST the Sensex was up 296 points, at 13,927. It also hit a high of 13,930.29 at 12:30 IST, a gain of 299.58 points for the day.Banks held firm. Bhel firmed up in afternoon trade. IT and auto shares were in demand.The market-breadth was strong. For 1,774 shares rising on BSE, 755 declined. Just 53 shares were unchanged. Gainers outpaced losers by a ratio of 2.3:1.The BSE clocked a turnover of Rs 2235 crore.
Latest data showed the wholesale price index rose 5.58% in the 12 months to 30 Dec 2006, higher than previous week's annual rise of 5.48% due to a rise in food and fuel prices, data showed on Friday. The figures were slightly lower than estimated 5.6%.
Banks surged after the Union Cabinet on Thursday approved change in a banking law, giving RBI more operational flexibility over lowering the statutory liquidity ratio requirement (SLR). At present, the law mandates banks to keep a minimum of 25% funds with the central bank as their SLR requirement.
A reduction in SLR will release more funds to banks for lending. With the growth in banks’ loan portfolios outstripping the growth in their deposit base, several banks have been selling their SLR holdings in excess of the 25 per cent limit and are now close to the stipulated threshold.
Ucal Fuel slumps on stunted growth
Ucal Fuel plunged 4.13% to Rs 125.25, after it reported a paltry 5.20% rise in net profit for Q3 December 2006.A strong 54,076 shares changed hands in the counter on BSE.The stock witnessed a steady pre-result rally anticipating strong results. From Rs 106.90 on 21 December, it surged to Rs 130.65 by 11 January 2007, as buying continued.
Ucal Fuel reported a 5.20% rise in Q3 December 2006 net profit to Rs 5 crore, compared to Rs 4.80 crore in rise in Q3 December 2005. Net sales rose 17.30% to Rs 78.2 crore (Rs 66.6 crore).
In June 2006, Ucal Fuel acquired 100% equity shares of Amtec Precision Products (AMTEC), USA, on June 2005. After Ucal Fuel completed acquistion of AMTEC, the latter, consequently, became a wholly-owned subsidiary of the company. AMTEC, based in Elgin, Illinois, manufactures precision machined and specialised injection moulded products for OEMs such as Siemens, Emerson, Cummins and Parker.
Based at Chennai, Ucal Fuel manufactures carburettors and fuel injection parts in collaboration with Mikuni Corporation of Japan.
Power project pact spells gains for Ispat Ind
Steel maker Ispat Industries rose 3.51% to Rs 12.69, amid reports that it will set up a 600 Mw coal-based power project in Chhatisgarh.The company signed a memorandum of understanding (MoU) with the Chhattisgarh government for the project with an estimated worth of Rs 2,500 crore.
The company may float a special purpose vehicle (SPV) for the purpose. The project, which will come up in Janjgir-Champa district of the state, may be funded in a 70:30 debt-equity ratio. The company intends to use part of the power to run its integrated steel plant at Dolvi, Maharashtra, and the rest will be sold to the state electricity boards.
Last month, the Pramod and Vinod Mittal-controlled steel company signed a Rs 2,000-crore agreement with the Maharashtra Government to augment capacities to 5.4 million tonne at its plant in Dolvi. The company is also contemplating raising $500 million through overseas debt bonds for expansion of its steel plant at Dolvi (Maharashtra) over the next 18 months. The plant is scheduled to commence production in 2011.
As many as 10.44 lakh shares changed hands in the counter on BSE.The stock witnessed a steady rally in the past few weeks, from Rs 10.94 on 28 December to Rs 12.23 on 11 January 2007, as buying continued.
Ispat had also recently announced a 3 million tone pellet plant in Vizag, which is likely to cost around Rs 900 crore. The plant will take two years to go online.
Ispat reported improved financial performance for the quarter ended 30 September 2006 with a net profit of Rs 2.32 crore as against a net loss of Rs 363.01 crore in the corresponding period last year. Net sales jumped 54.3% to Rs 1884.25 crore (Rs 1221.19 crore).
posted by SY at 1:06 PM
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