Sensex tanks over 300 points
The BSE Sensex began on a highly bearish note, as selling pressure spilled over into this week. The horror show started on Friday, when the benchmark Sensex tumbled close to 113 points, as a lot of stop losses were triggered due to highly leveraged positions in the derivatives market.
At 11:36 IST the 30-shares BSE Sensex was down 305.63 points, to 14,233.37 It had slipped to a low of 14,215.80, as selling intensified. Its high for the day is 14,529.28.
The market-breadth was quite weak. There were close to 10 losers for every single gainer on BSE. For 2,148 shares declining on BSE, only 231 rose. Just 29 shares were unchanged.The BSE clocked a turnover of Rs 1293 crore.All members of the Sensex pack were trading in the red.
Small-caps, mid-caps in troubled waters
Small-cap and mid-cap shares declined for the second day in a row today.
Some major losers in this space were Aptech (down 11% to Rs 187), Entertainment Network India (down 10.9% to Rs 306), Peninsula Land (down 9.5% to Rs 415.80), Unitech (down 8% to Rs 429.80), Spanco Telesystems (down 9% to Rs 186), Max India (down 7% to Rs 1101), Mahindra Gesco Developers (down 8% to Rs 591.80), Adani Enterprises (down 7.9% to Rs 208), Srei Infrastructure Finance (down 7.5% to Rs 61), Suzlon Energy (down 7% to Rs 1149), Jyoti Structures (down 6% to Rs 159), India Infoline (down 7% to Rs 332.90), and Escorts (down 6.7% to Rs 131).
The market-breadth was quite. For 2006 shares declining on BSE, 263 rose. Just 24 shares were unchanged. Losers outpaced gainers by a ratio of 7.6:1.
The CNX Nifty Junior Index, which comprises small-cap and mid-cap shares, was down 207.20 points (2.8%), at 7,138.95. It has lost 368.40 points (4.9%) in the past two trading sessions from 7,507.35 on 8 February 2007.
A surge in inflation to its highest level in more than two years, which has raised concerns of a further rise in interest rates, has damaged small-cap and mid-cap shares in the last two days.
There was a solid recovery by small-cap and mid-cap shares since mid-December 2006. From a low of 6,931.25 on 10 January 2007, the CNX Nifty Junior Index surged 578.50 points (8.3%) in about a month, to 7,509.75 by 7 February 2007.
Nifty Junior currently trades at a PE multiple of 20.24 (based on its closing of 7507.35 on 8 February 2007) compared to Nifty’s PE multiple of 20.31.
Zee Telefilms dips as DTH service to demerge soon
Zee Telefilms dropped 27% to Rs 263.25, after the stock went into no-delivery period ahead of the de-merger of Dish TV, its direct-to-home TV service.
The counter clocked 9.30 lakh shares on the BSE.The scrip has seen a bullish trend since late-December 2006. From a low of Rs 263.75 on 21 December 2006, it surged to Rs 361.55 by 9 February 2007. Earlier, the scrip had dropped from a high of Rs 378.30 on 1 December 2006 to Rs 263.75 by 21 December 2006.
At the current market price of Rs 263.25, Zee Telefilms trades at 52.65 times its FY 2006 annualized EPS of Rs 5.
The Bombay High Court had approved the scheme of arrangement to merge Siti Cable Network and New Era Entertainment Network, wholly- owned subsidiaries of Zee Telefilms, with ASC Enterprises. Further, the court has also approved the de-merger of the Direct Consumer Services Business undertaking to ASC Enterprise. The last day before the scheme of arrangement takes effect was 9 February 2007.
ASC Enterprises will be later renamed Dish TV. The company has fixed 20 February 2007 as record date for determination of members of the company eligible for issuing shares by ASC Enterprises.
The company will allot 23 fully paid-up equity shares of Re 1 each of ASC to shareholders owning 10 equity shares of Re 1 each in ZEE.
Zee’s demerger scheme was aimed at unlocking value for shareholders.Zee Group's de-merged entities, Zee News and Wire and Wireless India (WWIL), were listed on BSE on 10 January 2007, at less than expected prices, Rs 50 and Rs 80 respectively.
Zee Telefilm posted a net profit growth of 168% to Rs 87.53 crore (Rs 32.71 crore) in the Q3 December 2006. Net sales for the quarter rose 53% to Rs 417.67 crore from Rs 272.80 crore.
At 11:36 IST the 30-shares BSE Sensex was down 305.63 points, to 14,233.37 It had slipped to a low of 14,215.80, as selling intensified. Its high for the day is 14,529.28.
The market-breadth was quite weak. There were close to 10 losers for every single gainer on BSE. For 2,148 shares declining on BSE, only 231 rose. Just 29 shares were unchanged.The BSE clocked a turnover of Rs 1293 crore.All members of the Sensex pack were trading in the red.
Small-caps, mid-caps in troubled waters
Small-cap and mid-cap shares declined for the second day in a row today.
Some major losers in this space were Aptech (down 11% to Rs 187), Entertainment Network India (down 10.9% to Rs 306), Peninsula Land (down 9.5% to Rs 415.80), Unitech (down 8% to Rs 429.80), Spanco Telesystems (down 9% to Rs 186), Max India (down 7% to Rs 1101), Mahindra Gesco Developers (down 8% to Rs 591.80), Adani Enterprises (down 7.9% to Rs 208), Srei Infrastructure Finance (down 7.5% to Rs 61), Suzlon Energy (down 7% to Rs 1149), Jyoti Structures (down 6% to Rs 159), India Infoline (down 7% to Rs 332.90), and Escorts (down 6.7% to Rs 131).
The market-breadth was quite. For 2006 shares declining on BSE, 263 rose. Just 24 shares were unchanged. Losers outpaced gainers by a ratio of 7.6:1.
The CNX Nifty Junior Index, which comprises small-cap and mid-cap shares, was down 207.20 points (2.8%), at 7,138.95. It has lost 368.40 points (4.9%) in the past two trading sessions from 7,507.35 on 8 February 2007.
A surge in inflation to its highest level in more than two years, which has raised concerns of a further rise in interest rates, has damaged small-cap and mid-cap shares in the last two days.
There was a solid recovery by small-cap and mid-cap shares since mid-December 2006. From a low of 6,931.25 on 10 January 2007, the CNX Nifty Junior Index surged 578.50 points (8.3%) in about a month, to 7,509.75 by 7 February 2007.
Nifty Junior currently trades at a PE multiple of 20.24 (based on its closing of 7507.35 on 8 February 2007) compared to Nifty’s PE multiple of 20.31.
Zee Telefilms dips as DTH service to demerge soon
Zee Telefilms dropped 27% to Rs 263.25, after the stock went into no-delivery period ahead of the de-merger of Dish TV, its direct-to-home TV service.
The counter clocked 9.30 lakh shares on the BSE.The scrip has seen a bullish trend since late-December 2006. From a low of Rs 263.75 on 21 December 2006, it surged to Rs 361.55 by 9 February 2007. Earlier, the scrip had dropped from a high of Rs 378.30 on 1 December 2006 to Rs 263.75 by 21 December 2006.
At the current market price of Rs 263.25, Zee Telefilms trades at 52.65 times its FY 2006 annualized EPS of Rs 5.
The Bombay High Court had approved the scheme of arrangement to merge Siti Cable Network and New Era Entertainment Network, wholly- owned subsidiaries of Zee Telefilms, with ASC Enterprises. Further, the court has also approved the de-merger of the Direct Consumer Services Business undertaking to ASC Enterprise. The last day before the scheme of arrangement takes effect was 9 February 2007.
ASC Enterprises will be later renamed Dish TV. The company has fixed 20 February 2007 as record date for determination of members of the company eligible for issuing shares by ASC Enterprises.
The company will allot 23 fully paid-up equity shares of Re 1 each of ASC to shareholders owning 10 equity shares of Re 1 each in ZEE.
Zee’s demerger scheme was aimed at unlocking value for shareholders.Zee Group's de-merged entities, Zee News and Wire and Wireless India (WWIL), were listed on BSE on 10 January 2007, at less than expected prices, Rs 50 and Rs 80 respectively.
Zee Telefilm posted a net profit growth of 168% to Rs 87.53 crore (Rs 32.71 crore) in the Q3 December 2006. Net sales for the quarter rose 53% to Rs 417.67 crore from Rs 272.80 crore.
posted by SY at 1:23 PM
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