Profit-booking sets in after a firm start
The BSE Sensex slipped from a high, as profit-booking began immediately after a strong opening. At 10:18 IST the BSE Sensex was up 61.58 points, to 14,417.52. It had opened higher, at 14,436.18, and surged to a high of 14,465.38 as buying continued. From this point, it started falling, and touched a low of 14,385.78
The total turnover on BSE amounted to Rs 561 crore.The market-breadth was strong on BSE, with 1,338 shares advancing compared to 459 that declined.Among the 30-Sensex pack, 22 advanced while the rest declined.Telecom services provider, Bharti Airtel, was the top gainer, up 1.86% to Rs 806.50, on a volume of 51,264 shares.
ABB gains on quarterly outcome
ABB rose 2.7% to Rs 3905, after the company announced 42.6% growth in net profit in the December 2006 quarter along with a 5-for-1 stock-split.A strong 7,775 shares changed hands in the counter on BSE.
The stock had surged in early-February 2007. It had later pared gains in a weak market before firming up again on the eve of the results. The stock had risen nearly 2% on Thursday (15 February 2007) to Rs 3800.95. The results were announced on Friday (16 February 2007), the day when the market was closed for a public holiday.
ABB has reported 42.6% growth in net profit in the December 2006 quarter to Rs 134.95 crore from Rs 94.61 crore in the December 2005 quarter. Income from operations has surged 44.6% to Rs 1426.31 crore (Rs 985.72 crore).
ABB India had a record order intake during the year (year ended 31 December 2006), up 50%, at Rs 5,623.60 crore compared to Rs 3,764.50 crore last year. The record growth in order intake has helped ABB India to increase its order backlog to Rs 3,372.30 crore, nearly 60% more than the order backlog of Rs 2,103.20 crore at the beginning of the year.
ABB India plans to invest Rs 250 crore over the next two years to set up new factories, augment its existing capacities and foray into new areas. The company will set up factories in Delhi, Baroda, Nasik, Mumbai and parts of Karnataka.
The $100 million (nearly Rs 450 crore) investment in India that ABB announced in 2004 will be completed by the end of the first quarter of this year (March 2007), or early second quarter.
Reliance Mutual Fund's stake buy spawns interest in Avaya GlobalConnect
Avaya GlobalConnect, a communication solutions provider, rose 3.6% to Rs 278.40, extending Thursday's rise.As many as 36,642 shares changed hands in the counter on BSE.
Avaya GlobalConnect said on Thursday (15 February 2007), a growth fund of Reliance mutual fund bought a further 3.51% stake in the company, taking the fund's total holding to 6.13%. The stock had risen 3.7% that day, boosted by the announcement, to Rs 268.50. The stock is up 32.1% from a recent low of Rs 210.65 on 10 January 2007.
In January 2007 , Avaya Global Connect reported robust Q3 December 2006 results. The consolidated net profit in Q3 December 2006 jumped 237% to Rs 8.43 crore (Rs 2.50 crore). Net sales for the same quarter rose 31% to Rs 153.96 crore. For April - December 2006, the consolidated net profit declined 32% to Rs 17.22 crore (Rs 25.46 crore), while sales rose 24% to Rs 437.82 crore.
Avaya GlobalConnect, recently, launched its unified communication solutions that will facilitate communication across multiple devices and interfaces such as personal computers (PCs), mobile phones as well as landlines. Avaya will integrate its solutions with existing networks and applications through partnerships with multiple vendors such as Microsoft, IBM, Nokia and Polycom.
FII-holding in the scrip, as at end-December 2006, was 4.37%, lower than the holding of 7.98% at end-September 2006.The current price of Rs 278.40 discounts its FY 2006 EPS of Rs 17.20, by a PE multiple of 16.1.
Telecom pivotals sustain interest; Bharti Airtel climaxes
Cellular service providers extended gains, pinning hopes on sectoral re-rating following Vodafone's deal for Hutchison-Essar.
Bharti Airtel was up nearly 2% to Rs 807.25. The stock hit a lifetime high of Rs 810.90. Reliance Communications was up 0.7% to Rs 470. As many as 2.9 lakh shares changed hands in Reliance Communications, while 77,004 shares got traded in Bharti Airtel.
Telecom shares had surged from late-January 2007 to early-February 2007 on expectations of aggressive bidding for Hutch-Essar. The expectations came true, when Vodafone, on 11 February 2007, emerged as a top-bidder for Hutchison's 67% stake in the fourth largest cellular services, at an enterprise value of a stunning $18.8 billion.
From Rs 686.90 on 24 January 2007, Bharti Airtel had surged to Rs 781.25 by 5 February 2007. It had slipped to Rs 728.80 on 12 February 2007 before bouncing back once again.
Reliance Communications (RCL) had surged to Rs 515.10 on 5 February 2007 from Rs 434.95 on 24 January 2007. From this high, the stock had declined to Rs 441.05 by 13 February 2007, partly due to concerns of equity dilution arising from the large $1 billion FCCB issue. The RCL scrip, however, recovered later.
Subscriptions for mobile services are growing at a fast clip in India. The country recorded 6.5 million net new subscribers in January 2007, making it the fastest growing major mobile phone market in the world.
Both Bharti and RCL reported robust Q3 December 2006 results. Bharti Airtel’s consolidated net profit, as per US GAAP, jumped 122.8% to Rs 1215.13 crore (Rs 545.30 crore), beating market expectations. Consolidated revenue for the same quarter rose 62.3% to Rs 4913 crore (Rs 3025.60 crore).
RCL’s consolidated net profit jumped 198 % in the December 2006 quarter to Rs 924.42 crore, on 26% growth in consolidated revenue to Rs 3755.30 crore.
The response to an IPO of the sixth largest cellular operator, Idea cellular, was strong. The IPO was subscribed nearly 50 times, with aggressive bidding by FIIs.
On 2 February 2007, Telecom Regulatory Authority of India (TRAI) decided to lower port charges by up to 29%, allowing cellular operators to connect to BSNL and MTNL lines, a move which is expected to result in tariff cuts.
The total turnover on BSE amounted to Rs 561 crore.The market-breadth was strong on BSE, with 1,338 shares advancing compared to 459 that declined.Among the 30-Sensex pack, 22 advanced while the rest declined.Telecom services provider, Bharti Airtel, was the top gainer, up 1.86% to Rs 806.50, on a volume of 51,264 shares.
ABB gains on quarterly outcome
ABB rose 2.7% to Rs 3905, after the company announced 42.6% growth in net profit in the December 2006 quarter along with a 5-for-1 stock-split.A strong 7,775 shares changed hands in the counter on BSE.
The stock had surged in early-February 2007. It had later pared gains in a weak market before firming up again on the eve of the results. The stock had risen nearly 2% on Thursday (15 February 2007) to Rs 3800.95. The results were announced on Friday (16 February 2007), the day when the market was closed for a public holiday.
ABB has reported 42.6% growth in net profit in the December 2006 quarter to Rs 134.95 crore from Rs 94.61 crore in the December 2005 quarter. Income from operations has surged 44.6% to Rs 1426.31 crore (Rs 985.72 crore).
ABB India had a record order intake during the year (year ended 31 December 2006), up 50%, at Rs 5,623.60 crore compared to Rs 3,764.50 crore last year. The record growth in order intake has helped ABB India to increase its order backlog to Rs 3,372.30 crore, nearly 60% more than the order backlog of Rs 2,103.20 crore at the beginning of the year.
ABB India plans to invest Rs 250 crore over the next two years to set up new factories, augment its existing capacities and foray into new areas. The company will set up factories in Delhi, Baroda, Nasik, Mumbai and parts of Karnataka.
The $100 million (nearly Rs 450 crore) investment in India that ABB announced in 2004 will be completed by the end of the first quarter of this year (March 2007), or early second quarter.
Reliance Mutual Fund's stake buy spawns interest in Avaya GlobalConnect
Avaya GlobalConnect, a communication solutions provider, rose 3.6% to Rs 278.40, extending Thursday's rise.As many as 36,642 shares changed hands in the counter on BSE.
Avaya GlobalConnect said on Thursday (15 February 2007), a growth fund of Reliance mutual fund bought a further 3.51% stake in the company, taking the fund's total holding to 6.13%. The stock had risen 3.7% that day, boosted by the announcement, to Rs 268.50. The stock is up 32.1% from a recent low of Rs 210.65 on 10 January 2007.
In January 2007 , Avaya Global Connect reported robust Q3 December 2006 results. The consolidated net profit in Q3 December 2006 jumped 237% to Rs 8.43 crore (Rs 2.50 crore). Net sales for the same quarter rose 31% to Rs 153.96 crore. For April - December 2006, the consolidated net profit declined 32% to Rs 17.22 crore (Rs 25.46 crore), while sales rose 24% to Rs 437.82 crore.
Avaya GlobalConnect, recently, launched its unified communication solutions that will facilitate communication across multiple devices and interfaces such as personal computers (PCs), mobile phones as well as landlines. Avaya will integrate its solutions with existing networks and applications through partnerships with multiple vendors such as Microsoft, IBM, Nokia and Polycom.
FII-holding in the scrip, as at end-December 2006, was 4.37%, lower than the holding of 7.98% at end-September 2006.The current price of Rs 278.40 discounts its FY 2006 EPS of Rs 17.20, by a PE multiple of 16.1.
Telecom pivotals sustain interest; Bharti Airtel climaxes
Cellular service providers extended gains, pinning hopes on sectoral re-rating following Vodafone's deal for Hutchison-Essar.
Bharti Airtel was up nearly 2% to Rs 807.25. The stock hit a lifetime high of Rs 810.90. Reliance Communications was up 0.7% to Rs 470. As many as 2.9 lakh shares changed hands in Reliance Communications, while 77,004 shares got traded in Bharti Airtel.
Telecom shares had surged from late-January 2007 to early-February 2007 on expectations of aggressive bidding for Hutch-Essar. The expectations came true, when Vodafone, on 11 February 2007, emerged as a top-bidder for Hutchison's 67% stake in the fourth largest cellular services, at an enterprise value of a stunning $18.8 billion.
From Rs 686.90 on 24 January 2007, Bharti Airtel had surged to Rs 781.25 by 5 February 2007. It had slipped to Rs 728.80 on 12 February 2007 before bouncing back once again.
Reliance Communications (RCL) had surged to Rs 515.10 on 5 February 2007 from Rs 434.95 on 24 January 2007. From this high, the stock had declined to Rs 441.05 by 13 February 2007, partly due to concerns of equity dilution arising from the large $1 billion FCCB issue. The RCL scrip, however, recovered later.
Subscriptions for mobile services are growing at a fast clip in India. The country recorded 6.5 million net new subscribers in January 2007, making it the fastest growing major mobile phone market in the world.
Both Bharti and RCL reported robust Q3 December 2006 results. Bharti Airtel’s consolidated net profit, as per US GAAP, jumped 122.8% to Rs 1215.13 crore (Rs 545.30 crore), beating market expectations. Consolidated revenue for the same quarter rose 62.3% to Rs 4913 crore (Rs 3025.60 crore).
RCL’s consolidated net profit jumped 198 % in the December 2006 quarter to Rs 924.42 crore, on 26% growth in consolidated revenue to Rs 3755.30 crore.
The response to an IPO of the sixth largest cellular operator, Idea cellular, was strong. The IPO was subscribed nearly 50 times, with aggressive bidding by FIIs.
On 2 February 2007, Telecom Regulatory Authority of India (TRAI) decided to lower port charges by up to 29%, allowing cellular operators to connect to BSNL and MTNL lines, a move which is expected to result in tariff cuts.
Labels: ABB, Bharti Airtel, Reliance Comm
posted by SY at 12:50 PM
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