Market cedes more ground
The market weakened further in the afternoon, after the finance minister presented the annual economic survey to the Parliament on Tuesday. Weak Asian markets also weighed on the sentiment on domestic bourses. At 13:45 IST the Sensex was down 170 points, at 13,479.
Stocks in China, which topped 3,000 points for the first time on Monday (26 February 2007), plunged almost 9% on Tuesday, their biggest drop in 10 years. China Minsheng Banking Corp led the decline in moneylenders as the central bank raised the reserve ratio this week for the fifth time in eight months, to cut lendable resources for banks.
Stocks in South Korea, Australia and Singapore fell from record highs on concerns about a stronger oil. Shares in Japan also dropped.
The market had bounced back after an initial fall in the morning. 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 (Punjab and Uttarakhand).
Although the market-breadth was positive, it had weakened since earlier in the day. Against 1,338 shares rising on BSE, 1,141 declined. A total of 87 shares did not change. Gainers outpaced losers by a ratio of 1.17:1. The advance-decline ratio was a robust 2.2:1 in mid-morning trade.
India's pace of economic growth is sustainable, inflation remains a challenge, and no scope for faint-heartedness about the rapid rate of expansion, the finance ministry in the annual economic survey presented to Parliament on Tuesday.
The survey comes one day ahead of India's 2007/08 Budget and said fiscal reforms will help rein in federal deficit up to 3.6% of GDP this fiscal year to 31 March 2007, from 4.1% in 2005/06 and lower than a 3.8% target. But it said the government must curb wasteful spending to sustain the process.
The survey said the impact of recent fiscal and monetary measures would be visible in days to come. The government, nervous about rising prices at a time it faces polls in key states, has cut a series of import duties, an the Reserve Bank of India has tightened monetary policy several times in the past three months.
Ahluwalia Contracts plunges as price movement under Sebi scanner
Construction firm Ahluwalia Contracts plunged 9.10% to Rs 436.50, amid reports that Sebi was probing the price movement of the scrip since listing on 22 February 2007.
Ahluwalia Contracts, which was already listed on regional bourses, had a dream start on the BSE, opening at Rs 101.5, and soaring to a high of Rs 611.9, before settling at Rs 577.8. As many as 7.21 lakh shares changed hands on the day of its debut on BSE.On the day of listing, circuit filters are relaxed to allow the market to arrive at what they see as a fair value for the stock.
The Ahluwalia Contracts stock was very volatile on the next day, touched a high of Rs 620, and slipped to Rs 462.2, the lower circuit limit, before closing at Rs 529.55. The market capitalisation of the company, on Friday’s closing price, adds up to Rs 670 crore.
The stock of Ahluwalia Contracts lost more ground on Monday (26 February 2007) to Rs 480.
The market regulator is checking if there was any deliberate attempt by a group of market participants to ramp up the stock price, like in the case of Nissan Copper and Atlanta recently. The regulator is also verifying as to whether the exchange had exercised necessary due diligence.
The equity shares of Ahluwalia Contracts are listed on the Delhi, Kolkata and Jaipur stock exchanges since 1996.
The regulator had recently put in place a new software named Integrated Market Surveillance System, allowing it to integrate at the end of the day market transactions across stock exchanges. With this software, the regulator does not have to depend on the market participants to furnish the data for whatever investigations it chooses to undertake. This software is likely to be used in scrutinising all the bulk and block deals that were struck in the counter on the two days since its listing.
Reports say that Sebi is looking into the prices of several other recent scrips listed recently. Other companies that were listed on smaller/ regional exchanges and have opted for a BSE listing in the recent past include Tanla Solutions and Tantia Construction.
Ahluwalia Contracts offers construction services, and specialises in executing turnkey projects involving civil construction, electrical works, plumbing and fire-fighting. The company was planning a follow-on offer of approximately Rs 120 crore in 2006, but the plan came unstuck.
Ahluwalia Contracts plans to invest Rs 200 crore in the next two years for becoming a standalone real estate sector and infrastructure development player. To begin with, Ahluwalia Contracts will focus on developing high-end real estate projects in north India, besides undertaking build, operate and transfer (BOT) infrastructure projects.
Ahluwalia Contracts has already acquired land in some parts of north India and Kolkata.
The company, with a turnover of Rs 400 crore, expects to generate business worth Rs 100 crore in 2006-07 from real estate, besides taking the total turnover to Rs 600 crore in the next fiscal. It would initially concentrate on B-class cities of north Indian states for developing townships, commercial malls, SEZs, for which Ahluwalia Contracts has identified land as well.
Stocks in China, which topped 3,000 points for the first time on Monday (26 February 2007), plunged almost 9% on Tuesday, their biggest drop in 10 years. China Minsheng Banking Corp led the decline in moneylenders as the central bank raised the reserve ratio this week for the fifth time in eight months, to cut lendable resources for banks.
Stocks in South Korea, Australia and Singapore fell from record highs on concerns about a stronger oil. Shares in Japan also dropped.
The market had bounced back after an initial fall in the morning. 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 (Punjab and Uttarakhand).
Although the market-breadth was positive, it had weakened since earlier in the day. Against 1,338 shares rising on BSE, 1,141 declined. A total of 87 shares did not change. Gainers outpaced losers by a ratio of 1.17:1. The advance-decline ratio was a robust 2.2:1 in mid-morning trade.
India's pace of economic growth is sustainable, inflation remains a challenge, and no scope for faint-heartedness about the rapid rate of expansion, the finance ministry in the annual economic survey presented to Parliament on Tuesday.
The survey comes one day ahead of India's 2007/08 Budget and said fiscal reforms will help rein in federal deficit up to 3.6% of GDP this fiscal year to 31 March 2007, from 4.1% in 2005/06 and lower than a 3.8% target. But it said the government must curb wasteful spending to sustain the process.
The survey said the impact of recent fiscal and monetary measures would be visible in days to come. The government, nervous about rising prices at a time it faces polls in key states, has cut a series of import duties, an the Reserve Bank of India has tightened monetary policy several times in the past three months.
Ahluwalia Contracts plunges as price movement under Sebi scanner
Construction firm Ahluwalia Contracts plunged 9.10% to Rs 436.50, amid reports that Sebi was probing the price movement of the scrip since listing on 22 February 2007.
Ahluwalia Contracts, which was already listed on regional bourses, had a dream start on the BSE, opening at Rs 101.5, and soaring to a high of Rs 611.9, before settling at Rs 577.8. As many as 7.21 lakh shares changed hands on the day of its debut on BSE.On the day of listing, circuit filters are relaxed to allow the market to arrive at what they see as a fair value for the stock.
The Ahluwalia Contracts stock was very volatile on the next day, touched a high of Rs 620, and slipped to Rs 462.2, the lower circuit limit, before closing at Rs 529.55. The market capitalisation of the company, on Friday’s closing price, adds up to Rs 670 crore.
The stock of Ahluwalia Contracts lost more ground on Monday (26 February 2007) to Rs 480.
The market regulator is checking if there was any deliberate attempt by a group of market participants to ramp up the stock price, like in the case of Nissan Copper and Atlanta recently. The regulator is also verifying as to whether the exchange had exercised necessary due diligence.
The equity shares of Ahluwalia Contracts are listed on the Delhi, Kolkata and Jaipur stock exchanges since 1996.
The regulator had recently put in place a new software named Integrated Market Surveillance System, allowing it to integrate at the end of the day market transactions across stock exchanges. With this software, the regulator does not have to depend on the market participants to furnish the data for whatever investigations it chooses to undertake. This software is likely to be used in scrutinising all the bulk and block deals that were struck in the counter on the two days since its listing.
Reports say that Sebi is looking into the prices of several other recent scrips listed recently. Other companies that were listed on smaller/ regional exchanges and have opted for a BSE listing in the recent past include Tanla Solutions and Tantia Construction.
Ahluwalia Contracts offers construction services, and specialises in executing turnkey projects involving civil construction, electrical works, plumbing and fire-fighting. The company was planning a follow-on offer of approximately Rs 120 crore in 2006, but the plan came unstuck.
Ahluwalia Contracts plans to invest Rs 200 crore in the next two years for becoming a standalone real estate sector and infrastructure development player. To begin with, Ahluwalia Contracts will focus on developing high-end real estate projects in north India, besides undertaking build, operate and transfer (BOT) infrastructure projects.
Ahluwalia Contracts has already acquired land in some parts of north India and Kolkata.
The company, with a turnover of Rs 400 crore, expects to generate business worth Rs 100 crore in 2006-07 from real estate, besides taking the total turnover to Rs 600 crore in the next fiscal. It would initially concentrate on B-class cities of north Indian states for developing townships, commercial malls, SEZs, for which Ahluwalia Contracts has identified land as well.
Labels: Ahluwalia Contracts
posted by SY at 2:36 PM
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