Live_wire's Info Thread

[live_wire]

Axis-Enam Deal...Close watch

As part of the deal, Enam Securities will demerge its investment banking, institutional equities, retail equities and related businesses such as distribution of financial products, non-banking financial company (NBFC), etc, to a wholly-owned subsidiary of Axis Bank pursuant to a scheme of arrangement. Axis Bank will also demerge its investment banking business into the wholly-owned subsidiary.

Enam shareholders will receive shares of Axis Bank in the ratio of 5.7 shares of Axis Bank for every one share held in Enam, resulting into about 3.3% equity stake of Axis Bank on the enlarged capital. The proposed scheme is subject to approvals from respective shareholders and approval from the authorities like Reserve Bank of India (RBI), Sebi and the High Courts of Gujarat and Mumbai.

The proposed transaction would create one of India's leading financial services powerhouses combining the investment banking and equities franchise of Enam Securities with the dominant debt capital markets and commercial banking franchise of Axis Bank. The strategic objective is to create a complete bouquet of financial products and services for corporate, institutional and individual clients that will enhance the ability of the combined entity to better serve client needs in a seamless manner across product categories and geographies.

Enam and Axis Bank will continue their respective 'buy side' and investment management businesses separately. These units do not form part of this transaction.

Following this, Enam will become an Axis Bank subsidiary, headed by Enam Director Manish Chokani.

 

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Stocks in news: SCI, Patni Comp systems, Infosys...

State-run Shipping Corporation of India will launch a follow-on public offer (FPO) on 30 November 2010. The offering will close on 3 December 2010 for retail bidders, while the institutional book will close a day earlier. The government will sell a 10% stake in the shipping services firm and the company will issue another 10% of fresh equity.

Banks have reportedly agreed to normalise lending to microfinance institutions (MFIs), but have asked them to be extremely cautious to prevent slippages. MFIs raise 75-80% of their funds via bank borrowings, 15% from equity and another 10% from other sources like cash securities.

Tanglin Retail Reality Developments has made an open offer to the share holders of Sical Logistics to acquire up to 1.17 crore shares, or 20% at Rs 79.50 per share. The offer will open on 8 January 2011 and close on 27 January 2011.

Founders of Patni Computer Systems and PE firm General Atlantic have reportedly revived attempts to sell their over 60% stake in Patni.

Private equity firm Bain Capital, Advent International and Apax Partners are reportedly in the race to buy stakes in units of Gitanjali group, which runs Gitanjali Gems, as the group plans to raise about $100 million to cut debt.

Private equity firm ChrysCapital has reportedly made an exit estimated at close to $400 million from Infosys Technologies in recent weeks. The firm had invested about $175 million in Infosys less than 30 months ago.

 

[live_wire]

Nifty ends above 6000 mark; Sensex misses 20k

At 14:21 IST, the BSE 30-share Sensex was up 347.75 points or 1.78% to 19,933.19. The Sensex advanced 358.14 points at the day's high of 19,943.58 in mid-afternoon trade. The index rose 55.98 points at the day's low of 19,641.42 in morning trade.

The 50-unit S&P CNX Nifty was up 106.50 points or 1.81% at 5,996.80. It hit an intra-day high of 6,005.55 in mid-afternoon trade.

The BSE Mid-Cap index was up 1.11%. The BSE Small-Cap index rose 1.08%. Both these indices underperformed the Sensex.

The market breadth, indicating the health of the market, was strong. On BSE, 1809 shares rose while 1115 shares fell. A total of 85 shares remained unchanged.

From 30-share Sensex pack, 28 gained while only two of them declined.

Top gainers in the BSE's Sensex were, Jaiprakash Associates (up 3.65%), Wipro (up 3.14%), HDFC Bank (up 3.07%) and Bharti Airtel (up 2.78%).

Top losers in the BSE's Sensex were, Sterlite Industries (down 0.94%), NTPC (down 0.54%) and Reliance Infrastructure (down 0.08%).

Index heavyweight Reliance Industries (RIL) rose 1.48% to Rs 1011.60. RIL after market hours on 19 November 2010 said its crude distillation unit number 1 and coker unit at the Jamnagar Refinery complex, which were under planned shutdown for carrying out maintenance activities from last week of October, 2010, have safely restarted on 17 November 2010 and are operating satisfactorily.

Metal stocks rose on bargain hunting after a recent steep slide. India's largest steel maker by sales Tata Steel rose 2.44% to Rs 620.10. Hindalco Industries (up 1.62%), Jindal Steel & Power (up 1.55%), Steel Authority of India (0.75%) and NMDC (up 0.62%), were the other major gainers in the metal sector.

India's largest truck maker by sales Tata Motors rose 2.10% on reports the company will start selling its small car Nano in six more states across the country from 22 November 2010. Escorts (up 2.92%), Bajaj Auto (up 0.80%), Mahindra & Mahindra (up 0.17%), Hero Honda Motors (up 0.29%) and Maruti Suzuki India (up 0.22%), were the other major gainers in auto sector.

Top gainers in the BSE's Mid-Cap index were, S Kumars Nationwide (up 10.78%), Manappuram General Finance & Leasing (up 7.38%), Gammon Infra (up 5.96%), IndusInd Bank (up 5.12%) and India Infoline (up 4.55%).

Top gainers in the BSE's Small-Cap index were, Murli Industries (up 18.14%), REI Six Ten Retail (up 8.15%), Varun Industries (up 8.09%), Karuturi Global (up 7.46%) and Atlanta (up 7.32%).

 

[live_wire]

Stocks to look at: M&M, Jet Airways, ONGC, IVRCL Infra, Bharati shipyard...

Mahindra & Mahindra (M&M) has signed a deal to buy South Korea's money-losing Ssangyong Motor Company for 522.5 billion won ($464 million).

The government has reportedly approved splitting each share of Oil and Natural Gas Corp (ONGC) into two to make it attractive and affordable ahead of a follow-on public offer (FPO) next year. The government is to divest 5% of its holding in the state-run explorer via FPO.

Indian rating agency CRISIL on Monday, 22 November 2010, put 12 microfinance institutions on a negative ratings watch, saying a recent ordinance in southern India was reducing profits and would make it harder for the firms to attract funds. Andhra Pradesh recently enacted rules against aggressive recovery practices by lenders who make loans that average about $150 to poor customers at interest rates that can top 30%.

Private air carrier Jet Airways India's international passenger traffic in October grew 18%, while its domestic passenger traffic rose 11%. The airline carried 3,82,258 passengers as part of its international operations compared with 3,23,679 in October last year buoyed by the onset of the holiday season and an improving global business scenario.

Jet Airways also posted a 11% rise in domestic passenger revenue, having flown 8,70,406 in October this year compared with 7,85,125 last year, driven by the festival season. Jet Airways, which currently operates a fleet of 91 aircraft, has a market share of 26.2% in India.

Bharati Shipyard is reportedly planning to acquire a majority 51% equity stake and management control in Tebma Shipyards for Rs 75.75 crore. Earlier, Bharati had acquired Great Offshore for Rs 880 crore, after a takeover battle with ABG Shipyard. Bharati Shipyard is infusing fresh equity capital into Tebma Shipyards, at a price of Rs 19.20 per share of face value of 10 each.

Airport operators like GVK Power & Infrastructure and GMR Infrastructure, along with construction firms like Hindustan Construction Co and Essel Infra are reportedly expected to bid for the Rs 9800 crore Navi Mumbai airport. City and Industrial Development Corporation, the project promoter, is likely to call for bids in April-May of 2011.

Cinema chain operators such as Inox Leisure, Cinemax India and PVR are reportedly resuming plans to expand into smaller towns and cities, spending as much as Rs 900 crore over the next year or so, as growth in metropolitan markets saturates.

IVRCL Infrastructures & Projects is reportedly aiming to win about 20-25% of its order book from international projects, though there is no clear timeline visibility. According to reports, the company is working on a strategy to focus on international markets after its recent project wins overseas.

Hyderabad-based Ramky Infrastructure reportedly hopes to wrap up land sale to pharmaceutical firms at its 2,350-acre industrial park in Vishakapatnam within a year.

Diversified Godrej Industries' associate firm Godrej Agrovet is reportedly in talks with two Israeli dairy farm technology providers -- Afikim and SCR Engineers - for its dairy farming foray.

 

[live_wire]

Market opens on a weak note; Nifty below 6,000

At 9:22 IST, the BSE 30-share Sensex was down 208.22 points or 1.04% to 19,749.37. The Sensex fell 217.98 points at the day's low of 19,739.61 in early trade. The Sensex fell 116.17 points at the day's high of 19,841.42 in early trade.

The S&P CNX Nifty was down 64.20 points or 1.07% at 5,945.80.

The BSE Mid-Cap index fell 0.97%. The BSE Small-Cap index fell 0.90%.

The market breadth, indicating the health of the market, was weak. On BSE, 1172 shares fell while 467 shares rose. A total of 50 shares remained unchanged.

All stocks from from 30 share Sensex pack declined.

Hindalco Industries (down 2.56%), Bharti Airtel (down 1.96%), DLF (down 1.90%), Larsen & Toubro (down 1.68%), Jaiprakash Associates (down 1.60%) and State Bank of India (down 1.50%), were the major Sensex losers.

Index heavyweight Reliance Industries fell 0.90% to Rs 1003.

Monsanto India clocked a highest turnover of Rs 70.26 crore on BSE. Gravita India (Rs 8.95 crore) and Jai Corp (Rs 5.76 crore), were the other major turnover toppers in that order.

 

[live_wire]

Market slumps on reports of hostility between Koreas

North and South Korea both reportedly fired artillery shells Tuesday at an island near the two nations' western border. Reports from the region said the North launched dozens of rounds at the island, identified by the Associated Press as South Korea's Yeonpyeong island. Several reports cited unnamed South Korean officials as saying Southern forces then fired back. The exchange follows claims by North Korea that it has opened an advanced uranium-enrichment facility

Indian indices slump in early afternoon trade on reports of hostility between Koreas and weak Asian bourses (Hang Seng sheds 2.7%). All the sectoral Indices on BSE are trading in the negative terrain with Metal, Banking & Realty sectors falling over 3%. Jain Irrigation & Mphasis are on the buyers' radar whereas DB Realty & REC fall.

 

[live_wire]

Sensex sheds over 250 pts on hostility between Koreas, European debt woes

At 13:15 IST, the BSE 30-share Sensex was down 542.66 points or 2.72% to 19,414.93. The Sensex lost 614.90 points at the day's low of 19,342.69 in afternoon trade, its lowest level since 15 September 2010. The index fell 116.17 points at the day's high of 19,841.42 in early trade.

The S&P Nifty fell 151.40 points or 2.52% to 5,858.60. The Nifty hit a low of 5824.95, its lowest level since 16 September 2010.

The market breadth, indicating the health of the market, was weak. On BSE, 2490 shares fell while 409 shares rose. A total of 55 shares remained unchanged.

Hindustan Unilever was the lone gainer from the 30-member Sensex pack. India's largest FMCG company by sales rose 0.18% to Rs 299.90 on defensive buying.

Bharti Airtel (down 4.13%), Cipla (down 3.46%), and Tata Motors (down 3.21%), were the major Sensex losers.

Index heavyweight Reliance Industries extending early fall and was now down 3.07% to Rs 980.60. The scrip has 11.57% weightage on the Sensex.

Metal shares declined after LMEX, a gauge of six metals traded on London Metal Exchange, fell 0.87% to $3,700.90 on Monday, 22 October 2010. India's largest private sector aluminium maker by sales Hindalco Industries plunged 4.51% to Rs 205.40 and was the top loser from the Sensex pack.

JSW Steel (down 3.73%), Sterlite Industries (down 3.57%), Steel Authority of India (down 4.40%), Sesa Goa (down 2.55%), Jindal Steel & Power (down 2.94%), Hindustan Zinc (down 1.62%), National Aluminium Company (down 1.90%), and Tata Steel (down 3.14%), edged lower.

Banking shares declined after Monday's gain. India's largest private sector bank by market capitalisation ICICI Bank lost 3.58% to Rs 1137.50. The scrip has 8.60% weightage on the Sensex.

India's largest bank by net profit and branch network State Bank of India lost 4.13% while India's second largest private sector bank by net profit HDFC Bank declined 2.68%.

Realty shares extended recent steep slide. DB Realty (down 9.08%), Indiabulls Real Estate (down 8.02%), HDIL (down 7.46%), Unitech (down 5.66%), Sobha Developers (down 5.68%), and DLF (down 3.99%), declined.

India's largest cigarette maker by sales ITC fell 2.39% to Rs 171.65. The scrip has 6.01% weightage on the Sensex.

State Bank of India was the top traded counter on BSE with turnover of Rs 141.44 crore followed by Gravita India (Rs 141.13 crore), Monsanto (Rs 70.62 crore), Coal India (Rs 57.02 crore), and Tata Steel (Rs 55.03 crore).

Among the side counters, Aarey Drugs (up 13.59%), Sangam India (up 10.41%), Vallabh Steel (up 9.93%), Saksoft (up 7.16%), and KIC Metalics (up 6.79%), surged.

Sah Petroleum (down 13.05%), DCM (down 12.76%), EMA (down 11.69%), kamat Hotels (down 11.46%), and Jai Corp (down 9.63%), declined.

North Korea has reportedly fired artillery shells across its western maritime border, prompting return fire from South Korea. At least four soldiers are said to have been hurt. Meanwhile, South Korea has issued its highest non-wartime alert in response. Reports indicated that today's incident is one of the most serious incidents between the two since the Korean War in the 1950s. The incident comes days after North Korea revealed it had a modern uranium enrichment plant -- potentially giving it a second route to a nuclear weapon.

 

[live_wire]

Indices end lower by 1.4%; IOC, Coal India fall

Sensex sheds 600 pts after the reports of North Korea firing artillery shells at South Korea. However, it shows a sharp recovery during the last one hour of trading and closes provisionally at 19,674 (down 283pts). Bajaj Auto, Maruti & Sun Pharma are the major gainers whereas Unitech, Coal India, SAIL fall.


At 14:21 IST, the BSE 30-share Sensex was down 303.71 points or 1.52% to 19,653.88. The Sensex lost 614.90 points at the day's low of 19,342.69 in afternoon trade, its lowest level since 15 September 2010. The index fell 116.17 points at the day's high of 19,841.42 in early trade.

The S&P Nifty fell 91.75 points or 1.53% to 5,918.25. The Nifty hit a low of 5824.95, its lowest level since 16 September 2010.

The BSE Mid-cap index was down 1.58% and the BSE Small-cap index was down 2.32%. Both the index underperformed the Sensex.

The market breadth, indicating the health of the market, was weak. On BSE, 2395 shares fell while 534 shares rose. A total of 66 shares remained unchanged.

From 30 share Sensex pack, 28 stocks fell.

State Bank of India (down 3.30%), Bharti Airtel (down 2.60%), ICICI Bank (down 2.20%), Hindalco Industries (down 2.23%) and Tata Power Company (up 2.52%), were the prominent Sensex losers.

Index heavyweight Reliance Industries extending early fall and was now down 1.99% to Rs 992. The scrip has 11.57% weightage on the Sensex.

FMCG major Hindustan Unilever inched up 0.22% to Rs 300. India's largest car maker by sales Maruti Suzuki India rose 0.23% to Rs 1423.

High beta realty stocks sank. DB Realty (down 11.43%), Indiabulls Real Estate (down 5.96%), HDIL (down 5.94%), Unitech (down 5.16%), Orbit Corporation (down 4.99%), Sobha Developers (4.18%), Anant Raj Industries (down 4.11%), Ackruti City (down 3.61%), Peninsula Land (down 2.96%) and DLF (down 2.26%), slumped.

Top losers in the BSE's Mid-Cap index were, Network18 Media (down 9.95%), Zuari Industries (down 9.14%), Jai Corp (down 7.55%), S Kumar Nationwide (down 6.14%) and Onmobile Global (down 6.04%).

Top losers in the BSE's Small-Cap index were, Splash Media and Infra (down 11.35%), Vindhya Telelink (down 9.94%), Sujana Metal Products (down 8.74%), Marathon Nextgen Realty (down 8.18%) and Hindustan Organic Chemicals (down 8.07%).

 

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Nestle India in demand as Swiss parent hikes stake

Nestle India rose 1.3% to Rs 3,725 at 9:57 IST on BSE, after its Swiss parent Nestle SA, hiked its stake in the company by 0.8% to 62.76% through open market purchases during the quarter ended September 2010.

Meanwhile, the BSE Sensex was up 46.60 points, or 0.24%, to 19,738.44.

On BSE, 799 shares were traded in the counter compared with the average volume of 13,283 shares in past one quarter.

The stock hit a high of Rs 3785 and a low of Rs 3700 so far during the day.

The company has an equity capital of Rs 96.42 crore. Face value per share is Rs 10.

Nestle SA, the world's largest food company, is estimated to have spent close to Rs 340 crore to increase its stake in Nestle India by 0.8% to 62.76%.

Nestle India's net profit rose 19.6% to Rs 218.56 crore on 25.7% increase in net sales to Rs 1637.30 crore in Q3 September 2010 over Q3 September 2009.

 

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Bharti Airtel gains after brokerage upgrade

Bharti Airtel gained 1.06% to Rs 332.65 at 9:21 IST on BSE, after a foreign brokerage upgraded the stock to 'buy' from 'neutral' and raised its target price to Rs 430.

Meanwhile, the BSE Sensex was up 58.98 points, or 0.30%, to 19,750.82.

On BSE, 42,200 shares were traded in the counter compared with the average volume of 6.66 lakh shares in past one quarter.

The stock hit a high of Rs 335 and a low of Rs 330.20 so far during the day.

The company has an equity capital of Rs 1898.76 crore. Face value per share is Rs 5.

Bharti Airtel's consolidated net profit fell 26.6% to Rs 1661.20 crore on 46.6% rise in net sales to Rs 15215 crore in Q2 September 2010 over Q2 September 2009.