Selling remains in vogue
Selling continued in the afternoon and the market remained weak. At 13:41 IST the BSE Sensex was down 95.88 points, at 14,111.11. It had opened a bit higher, at 14,212.12, but started declining due to heavy selling. The BSE Sensex, however, recovered from a low of 14,082.15, as pivotals found support at this level.
Volatility may remain high on the bourses in the run up to the expiry of January 2007 derivatives contracts on Thursday (25 January 2007).
The market-breadth turned negative as selling began for small-cap and mid-cap stocks. For 1,546 shares that declined, 1020 advanced and 57 scrips remained unchanged on BSE.
Q3 results rub salt into SBI's CRR inflicted wounds
State Bank of India dropped 3.5% to Rs 1181, after the country's largest moneylender posted 4.5% fall in net profit for Dec-2006 quarter, to Rs 1065 crore.As many as 5.9 lakh shares changed hands in the counter on BSE. The results hit the market in early-afternoon trade today.
The stock, which was hovering at an all-time high in early-December 2006, fell after RBI announced a surprise 50 basis points hike in cash reserve ratio (CRR). From Rs 1353.50 on 8 December 2006, the scrip tumbled to Rs 1179.85 by 12 December 2006. The stock fluctuated between Rs 1137 and Rs 1268, from 13 December 2006 to 22 January 2007.
In a desperate attempt to mobilise deposits, State Bank of India hiked rates for 1 year deposits to 8.25%, up 75 basis points from 7.5% was offered earlier. Expecting a credit surge in the last quarter, banks are desparately mobilising deposits.
Earlier, effective 27 December, SBI raised its prime lending rate (PLR) by 50 basis points to to 11.50%, the third increase in its benchmark rate since May 2006. It raised its PLR in May 2006 by 50 basis points to 10.75% and again in August 2006 by 25 basis points to 11%.
With the revision in PLR, all advances linked to it, including working capital loans, will be adjusted with immediate effect. About 70% of SBI's existing loans are on a floating rate basis, which is directly linked to PLR. Any hike in PLR will help improve the bank's interest income.
Since a large number of SBI branches have migrated to the core banking solution, it is rapidly becoming a centralised system. For retail lending, it has set up retail asset centralised processing centres. On 31 March 2006, SBI had more than 5,000 ATMs and over 9,000 branches. The SBI group had more than 8,000 ATMs and around 14,000 branches.
On 18 December 2006, Finance Minister P Chidambaram introduced the State Bank of India (amendment) Bill, 2006, for reduction in the Reserve Bank of India's shareholding (statutory minimum) in SBI from 55% to 51% of the issued equity capital. Currently, RBI holds 59.73% stake in State Bank of India (SBI). The Centre has already agreed in-principle to acquire the RBI's shareholding in SBI, and indicated that it would maintain a minimum 51% in SBI.
The State Bank of India (amendment) Bill 2006 proposes to allow SBI to issue preference and bonus shares, which is forbidden by the law in its present form. Besides increasing the authorised capital of SBI to Rs 5,000 crore, the Bill also proposes enabling SBI to increase issued capital by preferential allotment or private placement of equity shares.
Nalco gets metallic edge after strong Q3 results
National Aluminium Company gained nearly 4% to Rs 221 after it reported 46% growth in net profit in December 2006 quarter.1.1 lakh shares changed hands in the counter on BSE.The stock has been range bound since early December 2006. It moved between Rs 199 to Rs 217 from early December 2006 till 22 January.
National Aluminium Company (Nalco) reported 46% surge in net profit in December 2006 quarter to Rs 572.60 crore (Rs 393.03 crore). Net sales rose 9.3% to Rs 1448.57 crore (Rs 1324.91 crore). Nalco’s results hit the market after trading hours on Monday 22 January 2007.
Along with Q3 results, Nalco’s board also announced an interim dividend of Rs 35% for FY 2007 (year ending 31 March 2007). It has also fixed 7 February 2007 as record date for payment of interim dividend.
Nalco is leading state run aluminium maker. The country's aluminium consumption estimated at around 8 lakh tonnes per annum, is expected to grow by 9-10% in 2006-07, against a growth of 8.3% last year. A focus on infrastructure sector and growing significance as a global manufacturing hub for automobiles is also slated to propel aluminium growth.
Nalco meanwhile is planning to set up a smelter overseas so as to seek an alternative, cheaper source of fuel to convert its surplus alumina into aluminium. Fuel costs account for nearly 60% of the smelting charges and hence, Nalco has been forced to look beyond Indian shores with its plans for setting up a new smelter. Recent reports suggest that Nalco has shortlisted Indonesia as the top country of choice for its maiden overseas venture. If all goes well, the state-owned aluminium major is planning to invest Rs 15,000 crore on setting up a greenfield aluminium smelter and power plant.
Volatility may remain high on the bourses in the run up to the expiry of January 2007 derivatives contracts on Thursday (25 January 2007).
The market-breadth turned negative as selling began for small-cap and mid-cap stocks. For 1,546 shares that declined, 1020 advanced and 57 scrips remained unchanged on BSE.
Q3 results rub salt into SBI's CRR inflicted wounds
State Bank of India dropped 3.5% to Rs 1181, after the country's largest moneylender posted 4.5% fall in net profit for Dec-2006 quarter, to Rs 1065 crore.As many as 5.9 lakh shares changed hands in the counter on BSE. The results hit the market in early-afternoon trade today.
The stock, which was hovering at an all-time high in early-December 2006, fell after RBI announced a surprise 50 basis points hike in cash reserve ratio (CRR). From Rs 1353.50 on 8 December 2006, the scrip tumbled to Rs 1179.85 by 12 December 2006. The stock fluctuated between Rs 1137 and Rs 1268, from 13 December 2006 to 22 January 2007.
In a desperate attempt to mobilise deposits, State Bank of India hiked rates for 1 year deposits to 8.25%, up 75 basis points from 7.5% was offered earlier. Expecting a credit surge in the last quarter, banks are desparately mobilising deposits.
Earlier, effective 27 December, SBI raised its prime lending rate (PLR) by 50 basis points to to 11.50%, the third increase in its benchmark rate since May 2006. It raised its PLR in May 2006 by 50 basis points to 10.75% and again in August 2006 by 25 basis points to 11%.
With the revision in PLR, all advances linked to it, including working capital loans, will be adjusted with immediate effect. About 70% of SBI's existing loans are on a floating rate basis, which is directly linked to PLR. Any hike in PLR will help improve the bank's interest income.
Since a large number of SBI branches have migrated to the core banking solution, it is rapidly becoming a centralised system. For retail lending, it has set up retail asset centralised processing centres. On 31 March 2006, SBI had more than 5,000 ATMs and over 9,000 branches. The SBI group had more than 8,000 ATMs and around 14,000 branches.
On 18 December 2006, Finance Minister P Chidambaram introduced the State Bank of India (amendment) Bill, 2006, for reduction in the Reserve Bank of India's shareholding (statutory minimum) in SBI from 55% to 51% of the issued equity capital. Currently, RBI holds 59.73% stake in State Bank of India (SBI). The Centre has already agreed in-principle to acquire the RBI's shareholding in SBI, and indicated that it would maintain a minimum 51% in SBI.
The State Bank of India (amendment) Bill 2006 proposes to allow SBI to issue preference and bonus shares, which is forbidden by the law in its present form. Besides increasing the authorised capital of SBI to Rs 5,000 crore, the Bill also proposes enabling SBI to increase issued capital by preferential allotment or private placement of equity shares.
Nalco gets metallic edge after strong Q3 results
National Aluminium Company gained nearly 4% to Rs 221 after it reported 46% growth in net profit in December 2006 quarter.1.1 lakh shares changed hands in the counter on BSE.The stock has been range bound since early December 2006. It moved between Rs 199 to Rs 217 from early December 2006 till 22 January.
National Aluminium Company (Nalco) reported 46% surge in net profit in December 2006 quarter to Rs 572.60 crore (Rs 393.03 crore). Net sales rose 9.3% to Rs 1448.57 crore (Rs 1324.91 crore). Nalco’s results hit the market after trading hours on Monday 22 January 2007.
Along with Q3 results, Nalco’s board also announced an interim dividend of Rs 35% for FY 2007 (year ending 31 March 2007). It has also fixed 7 February 2007 as record date for payment of interim dividend.
Nalco is leading state run aluminium maker. The country's aluminium consumption estimated at around 8 lakh tonnes per annum, is expected to grow by 9-10% in 2006-07, against a growth of 8.3% last year. A focus on infrastructure sector and growing significance as a global manufacturing hub for automobiles is also slated to propel aluminium growth.
Nalco meanwhile is planning to set up a smelter overseas so as to seek an alternative, cheaper source of fuel to convert its surplus alumina into aluminium. Fuel costs account for nearly 60% of the smelting charges and hence, Nalco has been forced to look beyond Indian shores with its plans for setting up a new smelter. Recent reports suggest that Nalco has shortlisted Indonesia as the top country of choice for its maiden overseas venture. If all goes well, the state-owned aluminium major is planning to invest Rs 15,000 crore on setting up a greenfield aluminium smelter and power plant.
posted by SY at 2:04 PM
0 Comments:
Post a Comment
<< Home