Breaking News & Stocks

50% malls may shut down by 2010: Experts

Mumbai, Feb 24: Consolidation in the retail industry would result in nearly 50 percent of the malls shutting down by March 2010 and the hoopla surrounding the sector would considerably subside by then, a brand expert has said.

"By march 2010, around 50 percent of malls would close down while retailers focusing on consumers would thrive. Those who focus on investors, however, will not survive," Samsika marketing consultants chairman and managing director Jagdeep Kapoor told agencies here.

Retailers think that consumer demand had increased but they do not realise that consumers had also become more demanding, he said. "Those who will understand both will survive."

Retailers were concentrating more on expansion which was not enough for surviving in a market that was becoming intensely competitive, he said. "They need to look at depth by improving their services and focusing on how to retain the consumer."

By the end of the calendar year, margins of organised retailers were likely to decline, Hypercity CEO Andrew Levermore said. "Retailers, especially in the food and groceries business, would be the worst affected."

"We will see some consolidation and mergers and acquisitions happening in the sector," Levermore said.

However, two categories of retailers would survive in this scenario - the ones with deep pockets who could sustain losses for a long period and the others who had accumulated experience in the sector, he noted.

Levermore highlighted the need for pragmatism among retailers. "Retailers might get carried away by euphoria and make very expensive mistakes. They need to maintain a degree of pragmatism along with the excitement," he suggested.

However, with the Indian economy in a "pretty good state", there was a degree of comfort which would help retailers to survive, he said.

"Unless both mall owner and the brand retailer make profits, the business would not survive and some corrections are likely to happen in the next two-three years," Future Group`s Home Solution Retail India Ltd`s chief executive officer Hemchandra Javeri said.

"Due to shortage of good quality retailing in certain places, corrections have to happen and we will see consolidation happening," he said.

Consolidation will also happen as some retailers would not be performing as they had expected, Reliance Retail Ltd president and chief executive-life style Bijou Kurien said.

Also, correction in retail real estate prices are likely to happen in the next two years, he added.

"People are looking at market shares and valuation games for which they are expanding at a very fast pace. However, only good mall developers will survive," the Bombay Store`s managing director Asim Dalal said.

Bureau Report

Ambuja Cements to buy three cargo ships for Rs 150 cr

New Delhi, Feb 24: To tap the growing demand of cement in the country, Ambuja Cements is expanding its cargo fleet for the internal movement of the construction material and is adding three ships by next year at an investment of Rs 150 crore.

The company currently has a fleet of seven cargo ships for transporting cements for domestic as well as export purpose.

"Seeing the demand in the country and the cost and problems faced in transporting cement through the surface route, we have decided to primarily opt for sea traffic. To consolidate our strength, we will add three cargo ships to our existing fleet by the end of next year," Ambuja Cements Ltd managing director A L Kapur told agencies.

The first of the ships is expected to be delivered during the current year, while the remaining two would be delivered to the company next year, he added.

The ships are being manufactured here by a domestic company, Kapur said adding "... Only engines were imported."

He said two ships would cost Rs 52 crore each, whereas one would be for Rs 44 crore.

"Two ships will have carrying capacity of 4,000 DWT (Deadweight Tonnage) and one will be of 2,800 DWT," Kapur said adding that the ships would primarily cater to cement distribution for the domestic market.

The company currently exports 1.2-1.4 million tonnes of cement annually and plans to cut down it in the future.

"Domestic demand is accelerating. So we plan to cut down gradually and this year we will export only about eight lakh tonnes," he added.

Ambuja Cements currently has three dedicated terminals at Panvel (Mumbai), Surat and Mul Dwarka (Gujarat) ports and plans to add one more at Cochin (Kerala) port.

The Mul Dwarka terminal, which caters to both domestic and international market, has a transportation capacity of 4-5 million tonnes a year, while Panvel and Surat have 1.5 million tonnes and o.8 million tonnes capacities each year respectively.

"We are constructing a new terminal at cochin at an investment of Rs 85 crore with carriage capacity of about one million tonnes a year, which will be meant for domestic distribution. It will be ready for operation by next year," Kapur said.

To meet the domestic cement demand created by the infrastructure boom, Ambuja Cements is embarking on a Rs 3,500 crore capacity expansion drive, which would take its total production to 25 million tonnes in two years.

The company`s current production stands at about 18 million tonnes.

It currently has five integrated plants, besides six grinding units at different locations across the country.

The company would expand its capacities in Rauri (Himachal Pradesh) and Bhatapara (Chhattisgarh) by setting up new lines of 7,000 tonnes per day clinker production in each.

The Mumbai-based company is also expecting a 50 percent jump in revenues to up to Rs 9,000 crore on the back of the capacity expansion by 2010. Last year, it had an income of about Rs 6,000 crore.

Bureau Report

AP
Spending, Inflation Data to Hit Wall St.
Sunday February 24, 2:52 pm ET
By Madlen Read, AP Business Writer
Investors Face Data on Spending, Inflation and Housing That Could Shed More Light on Economy


NEW YORK (AP) -- Wall Street will face a slew of data this week: on Americans' spending, inflation at the producer level, home sales and manufacturing.
So far this year, economic data has been mixed, but worrisome overall, and that has made for a turbulent stock market. And investors are bracing for more of the same -- for some time to come.

market going range bound. asia in green.

BSE SENSEX ON MONDAY FEB 25, 12.00 PM

At 12.00 PM, the BSE Sensex was down by 34.82 points, or -0.20 % at 17314.25 points.It opened with an upward gap of 174.74 points at 17523.81, touched an intraday high of 17523.81 & low of 17137.99.


The market breadth was extremely negative on BSE: 742 scrips had advanced, 1713 declined, while 67 remain unchanged.


The equity shares of IRB Infra Develop Ltd. got listed on the BSE, in the B1 Group at Rs.170.05, as against the IPO price of Rs.185 .

The equity shares of Tulsi Extrusions Ltd. got listed on the BSE, in the B Group at Rs.93.45, as against the IPO price of Rs.85


The BSE mid cap Index was lower by 72.14 points, or -0.95 % at 7522.31 . The BSE small cap Index was down by 116.29 points, or -1.21 % at 9479.12 .


The BSE-100 Index (down 31.78 points, or -0.34 % at 9209.13), BSE-200 Index (down 10.00 points, or -0.46 % at 2172.92), BSE-500 Index (down 35.14 points, or -0.50 % at 6962.33).


Top gainers of Sensex were Maruti(up 3.06% at Rs 790.10), Infosys(up 1.80% at 1608.50), Satyam Comp.(up 1.75% at 446.50), Wipro(up 1.73% at 429.70), ONGC(up 1.39% at 1011.90).


Major losers of Sensex were Bajaj Auto(down -4.17% at Rs 2199.95), HDFC Bank(down -3.94% at 1416.90), Mah & Mah(down -2.89% at 610.60), ICICI Bank(down -1.58% at 1082.00), State Bank(down -1.38% at 20


Top gainers from BSE-500 were K.S.Oil(up 6.09% at Rs 91.40), Mah & Mah Financ(up 5.26% at 310.05), Texmaco(up 4.79% at 1606.85), Taneja Aerospac(up 4.26% at 173.90).


Top losers from BSE 500 were Centurion Bank(down -10.64% at Rs 50.40), Entertainment N(down -7.49% at 443.00), McNally Bharat(down -5.03% at 218.00), Essar Ship(down -4.98% at 196.55).


BSE IT Index (up 1.22% at 3966.11) was top gainer in all sectors index. Led by HCL Techno (up 2.81% at Rs 278.00), Infosys (up 1.80% at Rs 1608.50).


BSE Oil & Gas Index (up 0.53% at 10729.21), Led by Indian Oil Corp (up 1.84% at Rs 530.00), Gail (up 1.81% at Rs 396.30).


BSE FMCG Index (up 0.20% at 2235.48), Led by Tata Tea (up 1.86% at Rs 796.10), Marico (up 1.77% at Rs 63.30).


BSE Health Care Index (up 0.07% at 3747.68), Led by Aventis Phrama (up 2.18% at Rs 924.95), Pfizer (up 2.07% at Rs 646.00).


BSE Bank Index (down -1.99% at 9947.92) was top loser in all sectors index. Led by Centurion Bank (down -10.64% at Rs 50.40), Bank Of India (down -4.78% at Rs 330.00).


BSE Metal Index (down -1.04% at 16198.41), Led by Jindal Saw (down -3.48% at Rs 858.10), Welspun Guj. (down -3.00% at Rs 443.50).


BSE Auto Index (down -0.85% at 4667.88), Led by Bajaj Auto (down -4.17% at Rs 2199.95), Mah & Mah (down -2.89% at Rs 610.60).


BSE Realty Index (down -0.68% at 9595.71), Led by Peninsula Land (down -3.90% at Rs 93.65), Akruti Nirman (down -2.37% at Rs 1111.00).


BSE Power Index (down -0.47% at 3555.74), Led by GVK Power (down -3.50% at Rs 51.00), Crompton Greave (down -3.49% at Rs 287.45).


BSE Capital Goods Index (down -0.30% at 15609.95), Led by Jyoti Struct. (down -3.83% at Rs 204.50), Kirloskar Bro. (down -3.79% at Rs 339.95).

HDFC bank to issue one share for every 29 in CBoP for merger

Mumbai, Feb 25: Board of HDFC Bank on Monday approved issuance of one equity share for every 29 held in Centurion Bank of Punjab for merger of the two financial institutions.

The board has approved the share swap ratio of one share of Rs 10 each of HDFC Bank for every 29 shares of Rs one each held in Centurion Bank of Punjab, HDFC Bank said in a filing to the Bombay Stock Exchange.

The board noted that in the event of the merger, it would consider to its promoter, Housing Development Finance Corporation Ltd, to enable HDFC to maintain its shareholding percentage in the bank.

HDFC Bank's board will meet on February 28 to consider the draft scheme of amalgamation, it said.

With the announcement of share swap ratio, the HDFC Bank scrip surged 3.33 percent to Rs 1,524, while that of CBoP dropped 7.27 percent to Rs 52.30 on d merger would help HDFC Bank o become the largest private sector lender in terms of branch network. The combined branch network would go up to 1,348 as against the existing private sector leader ICICI Bank, which has close to 955 branches.

Country's second-largest lender HDFC Bank has about 754 branches while CBoP is currently having 394 branches across 180 locations.

However in terms of assets, ICICI Bank would be much bigger than the proposed entity. While ICICI bank has Rs 3,76,700 crore worth of assets, the proposed combined entity would have over Rs 1,10,000 crore.

HDFC Bank has a promoter holding of 23.28 percent, held jointly by HDFC Ltd, HDFC Investments and HDFC Holdings. The bank has 26.57 percent FII holding, while local mutual funds and insurance firms own 3.39 percent and 2.81 percent respectively.

The bank has 1.08 percent held by central/state governments, according to shareholding pattern as on December 31, 2007, as filed with the bourses.

Centurion Bank of Punjab, which is the fourth-largest private sector lender, is promoted by Bank of Muscat, HSBC Finance, Sabre Capital. Bank of Muscat holds the maximum equity of 14 percent in the bank.

Following inorganic route of growth, Centurion Bank had in the past acquired Bank of Punjab and Lord Krishna Bank. HDFC Bank had earlier acquired Times Bank.

Bureau Report

BSE PRICE % LOSERS
Symbol Name Last Trade Change Volume Related Info
507410.BO WALCHAND IN 703.50 12:35PM IST 6,036.65 (89.56%) 278,434 More
509220.BO PTL LTD(BSE 28.00 12:08PM IST 109.00 (79.56%) 5,351 More
531319.BO MARUTI SECUT 22.20 10:44AM IST 3.00 (11.90%) 400 More
532273.BO CENTBOP 49.75 12:36PM IST 6.65 (11.79%) 8,241,125 More
524570.BO PODDAR PIGME 31.50 12:24PM IST 3.50 (10.00%) 2,511 More
516108.BO S.I.PAPER 67.00 12:21PM IST 6.95 (9.40%) 1,150 More
532519.BO JK SUGAR LTD 24.60 11:24AM IST 2.30 (8.55%) 646 More
532700.BO ENT NETWORK 438.05 12:36PM IST 40.80 (8.52%) 7,111 More
532469.BO MATHER PUMPS 157.00 12:22PM IST 14.40 (8.40%) 3,645 More
526654.BO THAKKARS DEV 114.50 11:22AM IST 10.45 (8.36%) 100 More
531680.BO MAYUR LEATHR 32.05 12:14PM IST 2.85 (8.17%) 178 More
509567.BO GOA CARBON L 56.25 12:28PM IST 4.75 (7.79%) 1,090 More
961665.BO ORBIT WAR 83.00 12:17PM IST 7.00 (7.78%) 3,850 More
504908.BO SCHRADER DUN 161.45 12:08PM IST 13.20 (7.56%) 894 More
500259.BO LYKA LABS 50.15 12:33PM IST 4.05 (7.47%) 7,766 More
526971.BO DHOOT INDUS. 24.00 12:34PM IST 1.85 (7.16%) 14,370 More
532326.BO INTENS TECH 46.40 12:31PM IST 2.55 (5.21%) 11,997 More
521161.BO SRI LAKS SAR 27.80 12:35PM IST 0.25 (0.91%) 1,466 More
530499.BO A K CAPITAL 386.90 12:34PM IST 10.90 (2.90%) 457 More

BSE PRICE % GAINERS
Symbol Name Last Trade Change Volume Related Info
532948.BO N/A 126.60 12:37PM IST 26.70 (26.73%) 15,014,967 More
520066.BO JAY BHAR MAR 58.50 12:33PM IST 7.80 (15.38%) 18,430 More
512587.BO ZODIAC JRDMK 46.00 12:37PM IST 5.85 (14.57%) 72,680 More
513303.BO MODERN STEEL 30.95 12:30PM IST 3.85 (14.21%) 28,362 More
530043.BO ACKNIT IND 41.80 11:26AM IST 4.95 (13.43%) 868 More
531241.BO LINC PEN PLA 38.50 12:33PM IST 3.65 (10.47%) 25,266 More
530365.BO ORIENT CER I 47.60 12:16PM IST 4.50 (10.44%) 300 More
508941.BO PANASON CAR 140.00 12:34PM IST 12.10 (9.46%) 21,333 More
507796.BO JHAV FLEXO 67.75 10:04AM IST 5.75 (9.27%) 1 More
526582.BO TPL PLAST 53.80 11:30AM IST 4.30 (8.69%) 302 More
514140.BO SURYAVANSH(B 26.50 11:24AM IST 2.10 (8.61%) 101 More
532665.BO RAJVIR IND 124.40 12:17PM IST 9.85 (8.60%) 218 More
502271.BO RAASI REFRAC 32.20 11:05AM IST 2.45 (8.24%) 500 More
502455.BO SIRPUR PAP 100.95 12:36PM IST 7.05 (7.51%) 55,303 More
590076.BO CAMSON BIO 130.00 12:31PM IST 9.00 (7.44%) 840 More
511658.BO NETTLINX LTD 23.00 12:37PM IST 1.50 (6.98%) 5,326 More
507446.BO SIMBHAOL SU 45.60 12:11PM IST 2.75 (6.42%) 24,845 More
514138.BO SURYALA SPIN 37.60 11:24AM IST 2.10 (5.92%) 1,415 More
520086.BO SICAL LOG 244.20 11:27AM IST 13.30 (5.76%) 35 More
512634.BO SAVERA IND 88.50 11:18AM IST 4.80 (5.73%) 1 More
532633.BO ALLSEC TECH 95.50 12:37PM IST 4.50 (4.95%) 11,842 More
532332.BO SOFTPRO SYSL 179.00 12:35PM IST 4.00 (2.19%) 251 More
520026.BO JMA INDUSTRI 187.00 12:33PM IST 16.80 (8.24%) 31 More

Monday February 25, 12:48 PM RBI official says inflation still a concern
MUMBAI (Reuters) - Inflation, arising out of food and oil prices, is still a concern and the Reserve Bank of India (RBI) will have to find ways to manage inflationary expectations, a senior official said on Monday.

"The main concern of the RBI is to manage inflationary expectations and we have to find ways to keep inflation under check," R.B. Barman, executive director, told reporters.

Barman, responsible for information technology at the bank, was speaking on the sidelines of a seminar on banking technology.

The widely watched wholesale price index was running at a six-month high of 4.35 percent in early February, not far away from the central bank's comfort zone of 5 percent.

India raised fuel prices between 3.3-4.6 percent this month to bring local prices more in line with global benchmarks, which may add 15-30 basis points to headline inflation, economists said.

It kept policy rates unchanged at a review last month, despite growing expectations from some quarters that the central bank may cut rates to shore up softening growth.

"We must not give signals that fuel expectations of higher inflation," he said.

BSE SENSEX ON MONDAY FEB 25, 1.00 PM

At 1.00 PM, the BSE Sensex was down by 5.52 points, or -0.03 % at 17343.55 points.It opened with an upward gap of 174.74 points at 17523.81, touched an intraday high of 17523.81 & low of 17137.99.


The market breadth was extremely negative on BSE: 790 scrips had advanced, 1758 declined, while 59 remain unchanged.


The equity shares of IRB Infra Develop Ltd. got listed on the BSE, in the B1 Group at Rs.170.05, as against the IPO price of Rs.185 .

The equity shares of Tulsi Extrusions Ltd. got listed on the BSE, in the B Group at Rs.93.45, as against the IPO price of Rs.85


The BSE mid cap Index was lower by 60.32 points, or -0.79 % at 7534.13 . The BSE small cap Index was down by 118.45 points, or -1.23 % at 9476.96 .


The BSE-100 Index (down 15.00 points, or -0.16 % at 9225.91), BSE-200 Index (down 6.25 points, or -0.29 % at 2176.67), BSE-500 Index (down 24.40 points, or -0.35 % at 6973.07).


Top gainers of Sensex were Maruti(up 3.47% at Rs 793.25), Rel.Energy(up 2.42% at 1593.50), ACC(up 1.90% at 789.00), Wipro(up 1.80% at 430.00), Ranbaxy(up 1.72% at 417.10).


Major losers of Sensex were HDFC Bank(down -4.40% at Rs 1410.10), Bajaj Auto(down -4.17% at 2199.90), Mah & Mah(down -2.36% at 613.95), State Bank(down -1.88% at 2075.00), Hindalco(down -1.33% at 189.


Top gainers from BSE-500 were K.S.Oil(up 5.51% at Rs 90.90), Mah & Mah Financ(up 5.25% at 310.00), TVS Motor(up 5.19% at 41.55), Usha Martin(up 4.62% at 94.00).


Top losers from BSE 500 were Centurion Bank(down -12.50% at Rs 49.35), Entertainment N(down -8.90% at 436.25), McNally Bharat(down -5.90% at 216.00), Guj.NRE Cok(down -5.57% at 152.55).


BSE IT Index (up 0.81% at 3949.92) was top gainer in all sectors index. Led by HCL Techno (up 2.85% at Rs 278.10), Wipro (up 1.80% at Rs 430.00).


BSE Oil & Gas Index (up 0.79% at 10757.49), Led by Gail (up 1.89% at Rs 396.60), Indian Oil Corp (up 1.46% at Rs 528.00).


BSE Health Care Index (up 0.17% at 3751.33), Led by Pfizer (up 1.88% at Rs 644.80), Ranbaxy (up 1.72% at Rs 417.10).


BSE FMCG Index (up 0.10% at 2233.32), Led by Tata Tea (up 2.00% at Rs 797.15), Marico (up 1.61% at Rs 63.20).


BSE Bank Index (down -1.90% at 9957.12) was top loser in all sectors index. Led by Centurion Bank (down -12.50% at Rs 49.35), Bank Of India (down -3.84% at Rs 333.25).


BSE Metal Index (down -0.92% at 16218.67), Led by Welspun Guj. (down -3.54% at Rs 441.00), Sesa Goa (down -3.35% at Rs 3192.50).


BSE Auto Index (down -0.60% at 4679.43), Led by Bajaj Auto (down -4.17% at Rs 2199.90), Mah & Mah (down -2.36% at Rs 613.95).


BSE Realty Index (down -0.24% at 9637.69), Led by Peninsula Land (down -3.80% at Rs 93.75), Akruti Nirman (down -2.55% at Rs 1109.00).


BSE Capital Goods Index (down -0.10% at 15640.05), Led by Jyoti Struct. (down -3.15% at Rs 205.95), Kirloskar Bro. (down -2.79% at Rs 343.50).


BSE Power Index (down -0.02% at 3571.79), Led by GVK Power (down -4.45% at Rs 50.50), Crompton Greave (down -3.64% at Rs 287.00).