Economic survey paves way for weakness
The market weakened again in afternoon trade soon after the release of the annual economic survey. Banking, IT and two-wheeler scrips had edged lower.
At 12:31 IST the Sensex was down 105 points, at 13,544. It declined after a solid intra-day rebound in early trade. From 13,538.67, a drop of 110.85 points for the day, the Sensex had surged to 13,689 by 11:20 IST. Early weakness in the market was on early trends in the counting of votes for three state elections, which showed the ruling Congress party trailing in at least two.
India needs to improve its creaky infrastructure, reform labour laws and upgrade skills of workers to sustain a double-digit industrial growth during 2007/12, the finance ministry's annual survey said on Tuesday. The economic survey for 2006/07, presented by Finance Minister P Chidambaram in Parliament, also says more investment was needed to expand factory capacities.
The survey said ensuring high growth, without high inflation, was a priority and capacity addition could avert problems of capacity constraints.A federal compensation package for state governments is critical for phasing out Central Sales Tax (CST) in the next few years, the annual survey said on Tuesday.
Block deal props up Nestle India
Nestle India jumped 4.81% to Rs 980, after a block deal was executed in the counter at Rs 930 per share on BSE.A deal for 4.35 lakh shares was struck in the counter on BSE at Rs 930 per share in opening trade.The Nestle counter notched up cumulative volumes of 4.47 lakh shares on BSE.
The Nestle stock declined sharply from Rs 1243.75 on 11 January 2007 to Rs 935.10 by 26 February 2007. The maxim - buy on rumour, sell on news - appears to have suited Nestle to a tee. The stock climbed sharply from Rs 1042.30 on 18 December 2006 to Rs 1,245 by 12 January 2007 on expectations that the company will return surplus funds to shareholders; the company had called a board meeting on 15 January 2007 to consider the proposal.
However, the actual announcement suggests that the market was a trifle hasty in marking up the stock price. The company has confirmed the move, but placed the surplus funds to be returned to shareholders at about Rs 86 crore.
Based on this number, the quantum of special dividend to be distributed may be no more than Rs 9 per share. This is not extra ordinary, considering that Nestle India has already been paying dividends of about Rs 25 per share over the past couple of years.
With Nestle’s current equity at Rs 96.42 crore, with Swiss food giant Nestle's holding 61% stake in the company, about Rs 52 crore out of the proposed sum to be distributed will go into the parent's kitty. Nestle has, in the past, used the buyback route (through open market share purchases) to return cash to shareholders.
Nestle India posted a moderate set of numbers for the quarter ended September 2006. Net sales of the company grew 16% to Rs 722.66 crore while profit-after-tax (PAT) improved 11% to Rs 82.98 crore. PAT before considering extraordinary items rose 10% to Rs 87.18 crore.
Budget 2006-2007 turned out to be a largesse for Nestle. While the excise duty on ready-to-eat packaged foods was reduced from 16% to 8%, the excise duty on milk products was abolished last year. Earlier, the excise duty on milk products was 16%.
The market is expecting similar sops in this year's budget as well.
Max India upbeat on members consent for stock-split
Max India gained 2.35% to Rs 1070, after its members approved a stock-split proposal on Monday.Max India said that members had consented to breaking up 9.20 crore equity shares, with a face value of Rs 10 each, into 46 crore equity shares of Rs 2 each (5-for-1 split).As many as 7,240 shares were traded in the counter on BSE.
Stock-splits are generally resorted to boost liquidity in the counter. Max India’s average yearly volume is 5,133 shares, when taken on daily basis on BSE.The stock had declined in the past few days; from Rs 1166.65 on 19 February, it had fallen to Rs 1045.40 by 26 February 2007.Recently, Max India’s board approved raising the limit for foreign investment up to 49%. Current FII-holding in the counter is 25%.
In November 2006, Max New York Life Insurance, a joint venture between Max and New York Life, was planning to enter the general insurance market. The joint venture plans to raise the paid-up capital to Rs 1,000 crore in the next year, and by another Rs 500 crore by 2007-08. Max will put in additional capital over the next two-three years. The company is already in talks with a few players for entering the general insurance space.
Max India had posted a net profit growth of 59.10% to Rs 3.85 crore (Rs 2.42 crore) in Q3 December 2006. Net sales for the December 2006 quarter rose 14.50% to Rs 40.04 crore from Rs 34.97 crore in the year ago quarter.
Sanghvi Movers advances on spate of orders
Sanghvi Movers gained 3.65% to Rs 753, after it bagged orders aggregating Rs 50 crore.The orders are for hiring 10 new cranes and 10 support cranes from Reliance Industries, Suzlon and Enercon. The contract period ranges from 12 months to 26 months.The Sanghvi Movers counter clocked merely 637 shares on BSE.
The Sanghvi Movers stock had declined sharply in the past few weeks, after it came out with a poor set of results. From Rs 838.90 on 23 January 2007, the stock slipped to Rs 699.85 by 13 February 2007 on heavy selling after the results. The scrip lost 19.85% during this period. Here, Sanghvi Movers recovered to Rs 726.50 by 26 February 2007 on renewed buying.
The trading of Sanghvi Movers' equity shares also began on the National Stock Exchange (NSE) from 24 January 2007.
For Q3 December 2006, Sanghvi Movers reported 30.90% fall in net profit to Rs 8.40 crore (Rs 12.15 crore). Total income for the December 2006 quarter also declined 12.50% to Rs 39.14 crore (Rs 44.74 crore).
Sanghvi Movers allotted 8.80 lakh equity shares to Goldpeak at Rs 825 per share, aggregating Rs 72.60 crore, at the board meeting on 22 January 2007. The funds will be utilised towards capital expenditure, and for other business purposes. The company had completed expansion worth Rs 118.84 crore up to December 2006.
Sanghvi Movers (SML), the flagship of the Sanghvi Group, is one of the largest crane hiring companies in Asia. SML operates a fleet of around 200 medium to large-sized, heavy-duty hydraulic and crawler cranes with a capacity ranging from 20 tonne to 800 tonne.
At 12:31 IST the Sensex was down 105 points, at 13,544. It declined after a solid intra-day rebound in early trade. From 13,538.67, a drop of 110.85 points for the day, the Sensex had surged to 13,689 by 11:20 IST. Early weakness in the market was on early trends in the counting of votes for three state elections, which showed the ruling Congress party trailing in at least two.
India needs to improve its creaky infrastructure, reform labour laws and upgrade skills of workers to sustain a double-digit industrial growth during 2007/12, the finance ministry's annual survey said on Tuesday. The economic survey for 2006/07, presented by Finance Minister P Chidambaram in Parliament, also says more investment was needed to expand factory capacities.
The survey said ensuring high growth, without high inflation, was a priority and capacity addition could avert problems of capacity constraints.A federal compensation package for state governments is critical for phasing out Central Sales Tax (CST) in the next few years, the annual survey said on Tuesday.
Block deal props up Nestle India
Nestle India jumped 4.81% to Rs 980, after a block deal was executed in the counter at Rs 930 per share on BSE.A deal for 4.35 lakh shares was struck in the counter on BSE at Rs 930 per share in opening trade.The Nestle counter notched up cumulative volumes of 4.47 lakh shares on BSE.
The Nestle stock declined sharply from Rs 1243.75 on 11 January 2007 to Rs 935.10 by 26 February 2007. The maxim - buy on rumour, sell on news - appears to have suited Nestle to a tee. The stock climbed sharply from Rs 1042.30 on 18 December 2006 to Rs 1,245 by 12 January 2007 on expectations that the company will return surplus funds to shareholders; the company had called a board meeting on 15 January 2007 to consider the proposal.
However, the actual announcement suggests that the market was a trifle hasty in marking up the stock price. The company has confirmed the move, but placed the surplus funds to be returned to shareholders at about Rs 86 crore.
Based on this number, the quantum of special dividend to be distributed may be no more than Rs 9 per share. This is not extra ordinary, considering that Nestle India has already been paying dividends of about Rs 25 per share over the past couple of years.
With Nestle’s current equity at Rs 96.42 crore, with Swiss food giant Nestle's holding 61% stake in the company, about Rs 52 crore out of the proposed sum to be distributed will go into the parent's kitty. Nestle has, in the past, used the buyback route (through open market share purchases) to return cash to shareholders.
Nestle India posted a moderate set of numbers for the quarter ended September 2006. Net sales of the company grew 16% to Rs 722.66 crore while profit-after-tax (PAT) improved 11% to Rs 82.98 crore. PAT before considering extraordinary items rose 10% to Rs 87.18 crore.
Budget 2006-2007 turned out to be a largesse for Nestle. While the excise duty on ready-to-eat packaged foods was reduced from 16% to 8%, the excise duty on milk products was abolished last year. Earlier, the excise duty on milk products was 16%.
The market is expecting similar sops in this year's budget as well.
Max India upbeat on members consent for stock-split
Max India gained 2.35% to Rs 1070, after its members approved a stock-split proposal on Monday.Max India said that members had consented to breaking up 9.20 crore equity shares, with a face value of Rs 10 each, into 46 crore equity shares of Rs 2 each (5-for-1 split).As many as 7,240 shares were traded in the counter on BSE.
Stock-splits are generally resorted to boost liquidity in the counter. Max India’s average yearly volume is 5,133 shares, when taken on daily basis on BSE.The stock had declined in the past few days; from Rs 1166.65 on 19 February, it had fallen to Rs 1045.40 by 26 February 2007.Recently, Max India’s board approved raising the limit for foreign investment up to 49%. Current FII-holding in the counter is 25%.
In November 2006, Max New York Life Insurance, a joint venture between Max and New York Life, was planning to enter the general insurance market. The joint venture plans to raise the paid-up capital to Rs 1,000 crore in the next year, and by another Rs 500 crore by 2007-08. Max will put in additional capital over the next two-three years. The company is already in talks with a few players for entering the general insurance space.
Max India had posted a net profit growth of 59.10% to Rs 3.85 crore (Rs 2.42 crore) in Q3 December 2006. Net sales for the December 2006 quarter rose 14.50% to Rs 40.04 crore from Rs 34.97 crore in the year ago quarter.
Sanghvi Movers advances on spate of orders
Sanghvi Movers gained 3.65% to Rs 753, after it bagged orders aggregating Rs 50 crore.The orders are for hiring 10 new cranes and 10 support cranes from Reliance Industries, Suzlon and Enercon. The contract period ranges from 12 months to 26 months.The Sanghvi Movers counter clocked merely 637 shares on BSE.
The Sanghvi Movers stock had declined sharply in the past few weeks, after it came out with a poor set of results. From Rs 838.90 on 23 January 2007, the stock slipped to Rs 699.85 by 13 February 2007 on heavy selling after the results. The scrip lost 19.85% during this period. Here, Sanghvi Movers recovered to Rs 726.50 by 26 February 2007 on renewed buying.
The trading of Sanghvi Movers' equity shares also began on the National Stock Exchange (NSE) from 24 January 2007.
For Q3 December 2006, Sanghvi Movers reported 30.90% fall in net profit to Rs 8.40 crore (Rs 12.15 crore). Total income for the December 2006 quarter also declined 12.50% to Rs 39.14 crore (Rs 44.74 crore).
Sanghvi Movers allotted 8.80 lakh equity shares to Goldpeak at Rs 825 per share, aggregating Rs 72.60 crore, at the board meeting on 22 January 2007. The funds will be utilised towards capital expenditure, and for other business purposes. The company had completed expansion worth Rs 118.84 crore up to December 2006.
Sanghvi Movers (SML), the flagship of the Sanghvi Group, is one of the largest crane hiring companies in Asia. SML operates a fleet of around 200 medium to large-sized, heavy-duty hydraulic and crawler cranes with a capacity ranging from 20 tonne to 800 tonne.
Labels: Economic survey, Max India, Nestle India, Sanghvi Movers
posted by SY at 12:53 PM
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