Sensex

Friday, February 01, 2008

DG - "Nehru Dynasty" - Interesting History

VERY INTERESTING HISTORY!

 

At the very beginning of his book, 'The Nehru Dynasty', astrologer K.N. Rao mentions the names of Jawaharlal's father and grandfather.

Jawaharlal's father was believed to be Motilal and Motilal's father was one Gangadhar Nehru.

 

We all know that Jawaharlal's only daughter was Indira Priyadarshini Nehru; Kamala Nehru was her mother, who died in Switzerland of tuberculosis. She was totally against Indira's proposed marriage with Feroze.  Why? No one tells us that! 

Now, who is this Feroze?  We are told by many that he was the son of the family grocer.  The grocer supplied wines, etc. to Anand Bhavan (previously known as Ishrat Manzil)  

 

What was the family grocer's name?

One frequently hears that Rajiv Gandhi's grandfather was Pandit Nehru. But then we all know that everyone has two grandfathers, the paternal and the maternal grandfathers.

In fact, the paternal grandfather is deemed to be the more important grandfather in most societies. 

 

Why is it then, nowhere, we find Rajiv Gandhi's paternal grandfather's name?  It appears that the reason is simply. Rajiv Gandhi's paternal grandfather was a Muslim gentleman from the Junagadh area of Gujarat.

 

This Muslim grocer by the name of Nawab Khan, had married a Parsi woman after converting her to Islam.

 

This is the source where from the myth of Rajiv being a Parsi was derived. Rajiv's father Feroze, was Feroze Khan before he married Indira, against Kamala Nehru's wishes. 

 

Feroze's mother's family name was Ghandy, often associated with Parsis and this was changed to Gandhi, sometime before his wedding with Indira, by an affidavit.

 

The fact of the matter is that (and this fact can be found in many writings) Indira was very lonely. Chased out of the Shantiniketan University by Guru Dev Rabindranath himself for misdemeanour, the lonely girl was all by herself, while father Jawaharlal was busy with politics, pretty women and illicit sex, the mother was in hospital.

 

Feroze Khan, the grocer's son was then in England and he was quite sympathetic to Indira and soon enough she changed her religion, became a Muslim woman and married Feroze Khan in a London mosque.

 

Nehru was not happy, Kamala was dead already or dying. The news of this marriage eventually reached Mohandas Karamchand Gandhi (better known as Mahatma Gandhi) .

Gandhi urgently called Nehru and practically ordered him to ask the young man to change his name from Khan to Gandhi. It had nothing to do with change of religion, from Islam to Hinduism for instance.  It was just a case of a change of name by an affidavit.  And so Feroze Khan became Feroze Gandhi. 

 

The surprising thing is that the apostle of truth, the old man soon to be declared India's Mahatma and the 'Father of the Nation' didn't mention this game of his in the famous book, 'My Experiments with Truth'.  Why?

  

When they returned to India, amock 'Vedic marriage' was instituted for public consumption.

 

On this subject, writes M.O. Mathai (a long-time Private Secretary of Nehru) in his renowned (but now suppressed by the GOI! ) 'Reminiscences of the Nehru Age' on page 94, second paragraph: ' For some inexplicable reason, Nehru allowed the marriage to be performed according to Vedic rites in 1942.  An inter-religious and inter-caste marriage under Vedic rites at that time was not valid in law. To be legal, it had to be a civil  marriage .' 

 

It's a known fact that after Rajiv's birth Indira and Feroze lived separately, but they were not divorced.  Feroze used to harass Nehru frequently for money and also interfere in Nehru's political activities. Nehru got fed up and left instructions not to allow him into the Prime Minister's residence Trimurthi Bhavan.

Mathai writes that the death of Feroze came as a relief to Nehru and Indira. The death of Feroze in 1960 before he could consolidate his own political forces, is itself a mystery. Feroze had even planned to remarry.

 

Those who try to keep tabs on our leaders in spite of all the suppressions and deliberate misinformation, are aware of the fact that the second son of Indira (or Mrs.Feroze Khan) known as Sanjay Gandhi was not the son of Feroze.  He was the son of another Muslim gentleman, Mohammad Yunus.

 

Here in passing, we might mention that the second son was originally named Sanjiv. It rhymed with Rajiv, the elder brother's name.  It was changed to Sanjay when he was arrested by the British police in England and his passport impounded, for having stolen a car.

 

Krishna Menon was then India's High Commissioner in London. He offered to issue another passport to the felon who changed his name to Sanjay.   Incidentally, Sanjay's marriage with the Sikh girl Menaka (now they call her Maneka for Indira Gandhi found the name of mythological Lord Indra's Court dancer rather offensive !!) took place quite surprisingly in Mohammad Yunus's house in New Delhi .  

 

The marriage with Menaka who was a model (She had model for Bombay Dyeing wearing just a towel) was not so ordinary either.  Sanjay was notorious in getting unwed young women pregnant.  Menaka too was rendered pregnant by Sanjay.  

It was then that her father, Colonel Anand, threatened Sanjay with dire consequences if he did not marry her daughter and that did the trick.

 

Sanjay married Menaka. It was widely reported in Delhi at the time that Mohammad Yunus was unhappy at the marriage of Sanjay with Menaka.  Apparently he had wanted to get him married with a Muslim girl of his choice.  It was Mohammad Yunus who cried the most when Sanjay died in the plane accident. 

 

In Yunus's book, 'Persons, Passions & Politics' one discovers that baby Sanjay had been circumcised following Islamic custom, although the reason stated was phimosis.  It was always believed that Sanjay used to blackmail Indira Gandhi and due to this she used to turn a blind eye when Sanjay Gandhi started to run the country as though it were his personal freedom.  Was he black mailing her with the secret of who his real father was?  When the news of Sanjay's death reached Indira Gandhi, the first thing she wanted to know was about the bunch of keys which Sanjay had with him. 

 

Nehru was no less a player in producing bastards.  At least one case is very graphically described by M.O. Mathai in his 'Reminiscences of the Nehru Age', page 206.  

 

Mathai writes:

'In the autumn of 1948 a young woman from Benares arrived in New Delhi as a sanyasini named Shraddha Mata (an assumed and not a real name). She was a Sanskrit scholar well versed in the ancient Indian scriptures and mythology.  People, including MPs, thronged to her to hear her discourses. One day S.D. Upadhyaya, Nehru's old employee, brought a letter in Hindi from Shraddha Mata. Nehru gave her an interview in the PM's house.  As she departed, I noticed (Mathai is speaking here) that she was young, shapely and beautiful.  Meetings of Nehru with her became rather frequent, mostly after he finished his work at night.  During one of Nehru's visits to Lucknow, Shraddha Mata turned up there and Upadhyaya brought a letter from her as usual. Nehru sent her the reply and she visited Nehru at  midnight...'  Suddenly Shraddha Mata disappeared. 

  

In November 1949 a convent in Bangalore sent a decent looking person to Delhi with a bundle of letters. He said that a young woman from northern India arrived at the convent a few months ago and gave birth to a baby boy. She refused to divulge her name or give any particulars about herself.  She left the convent as soon as she was well enough to move out but left the child behind.  

 

She however forgot to take with her a small cloth bundle in which, among other things, several letters in Hindi were found. The Mother Superior, who was a foreigner, had the letters examined and was told they were from the Prime Minister.  

The person who brought the letters surrendered them...'I (Mathai) made discreet inquiries repeatedly about the boy but failed to get a clue about his whereabouts. Convents in such matters are extremely tight-lipped and secretive. 

 

Had I succeeded in locating the boy, I would have adopted him. He must have grown up as a Catholic Christian blissfully ignorant of who his father was.'

 

Coming back to Rajiv Gandhi, we all know now that he changed his so called Parsi religion to become a Catholic to marry Sania Maino of Turin, Italy.  Rajiv became Roberto.  His daughter's name is Bianca and son's name is Raul.  Quite cleverly the same names are presented to the people of India as Priyanka and Rahul.

 

What is amazing is the extent of our people's ignorance in such matters. The press conference that Rajiv Gandhi gave in London after taking over as Prime minister of India was very informative. In this press conference, Rajiv boasted that he was NOT a Hindu but a Parsi.  Mind you, speaking of the Parsi religion, he had no Parsi ancestor at all.  His grandmother (father's mother) had turned Muslim after having abandoned the Parsi religion to marry Nawab Khan.  

  

It is the western press that waged a blitz of misinformation on behalf of Rajiv. From the New York Times to the Los Angeles Times and the Washington Post, the big guns raised Rajiv to heaven.  The children's encyclopaedias recorded that Rajiv was a qualified Mechanical Engineer from the revered University of Cambridge. No doubt US kids are among the most misinformed in the world today!  The reality is that in all three years of his tenure at  that University Rajiv had not passed a single exam. He had therefore to leave Cambridge without a certificate. 

 

Sonia too had the same benevolent treatment. She was stated to be a student in Cambridge. Such a description is calculated to mislead Indians. She was a student in Cambridge all right, but not of the University of Cambridge, but of one of those fly by night language schools where foreign students come to learn English. Sonia was working as an 'au pair' girl in Cambridge and trying to learn English at the same time.  And surprise of surprises, Rajiv was even cremated as per Vedic rites in full view of India's public. 

 

This is the Nehru dynasty that India worships and now a foreigner leads a prestigious national party because of just one qualification being married into the Nehru family.  Maneka Gandhi, though Indian, herself is being accepted by the non-Congress parties not because she was a former model or an animal lover, but for her links to the Nehru family. 

 

Saying that an Italian (or any foreigner) should not lead India will amount to narrow mindedness, but if Sania Maino (now Sonia) had served India like, say, Mother Teresa or Annie Besant, i.e. in any way on her own rights, then all Indians should be proud of her just as how proud we are of Mother Teresa.   OR

Saying that any other party which comes to rule India is better is again equally worse.   

 

The point is Indians who nominate the people to stand in these elections; and the people who vote their rulers (i.e. the authorities) must know that truth eventually come out some day.   Don’t allow the famous land of India  (our motherland) to be looked down by others.

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DG - Sharekhan Investor's Eye dated February 01, 2008

 

Investor's Eye
[February 01, 2008] Please see the attachment for details

Sharekhan
www.sharekhan.com

Summary of Contents

STOCK UPDATE 

Bank of India                     
Cluster: Apple Green
Recommendation: Buy
Price target: Rs458
Current market price: Rs364

Price target revised to Rs458

Result highlights

  • Bank of India (BoI) reported a profit after tax (PAT) of Rs511.9 crore for Q3FY2008, which was up by a whopping 101.0% year on year (yoy) and 20.4% quarter on quarter (qoq). The PAT beat our and consensus estimates by a significant margin. The strong PAT growth was on the back of robust interest income growth, spike in the non-interest income led by treasury gains and contained operating expenses.
  • The net interest income (NII) during the quarter grew by 25.7% yoy to Rs1,079.5 crore. The NII growth was mainly due to a continued strong growth in the advances and an improvement in the net interest margin (NIM).
  • The reported NIM of 3.14% during the quarter reflects an improvement of 10 basis points yoy from 3.04% for the year-ago period. The NIM improvement was mainly due to improvement in the yields on advances (115 basis points) and the investments (105 basis points), which outweighed the 83 basis points year-on-year (y-o-y) increase in the cost of funds.
  • During the quarter, the advances grew by a strong 30% yoy to Rs 103,657 crore indicating an uptick in the credit off take compared with that of H1FY2008. The growth in the advances was led by a strong growth in the foreign advances (up 32.7%). Meanwhile the deposits grew by 27.4% yoy to Rs135,835 crore on the back of a 36% y-o-y growth in the term deposits and a 32.5% y-o-y growth in the current account deposits. However, due to a higher growth in term deposits, the current account and saving account (CASA) ratio declined to 37% from 40.7% a year ago. 
  • The non-interest income witnessed a huge growth of 72% yoy to Rs554.1 crore. The growth in the non-interest income was primarily due to the spike in the treasury gains, which were up 109% yoy. Meanwhile the fee income grew by a strong 46% yoy and 40.7% qoq.
  • Notably, the operating expenses were up by only 5.5% yoy, whereas it declined by ~2% qoq to Rs662.2 crore, partly because of a higher base for the year ago period. The lower operating expenses growth can be traced to the decline in the other operating expenses (down 13% yoy), while the staff expenses were up 17% yoy. As a result of the lower operating expenses and the strong income growth, the cost-income ratio improved significantly to 40.5% compared with 50.6% for the year-ago period.
  • Asset quality during the quarter continued to improve yoy, with a 10% y-o-y decline in the gross non-performing assets (GNPA) to Rs1,969.3 crore and a 29.5% decline in the net non-performing assets (NNPA) to Rs633.5 crore.
  • Capital adequacy remains healthy with capital adequacy ratio (CAR) at 12.5% at the end of December 2007, compared with 11.7% at the end of December 2006.
  • At the current market price of Rs364, the stock trades at 8.8x its 2009E earnings per share (EPS), 4.4x its 2009E pre-provisioning profit (PPP) and 1.9x its 2009E book value (BV). We maintain our Buy recommendation on the stock with a revised twelve-month price target of Rs458.

 

Tata Motors                      
Cluster: Apple Green
Recommendation: Hold
Price target: Rs792 
Current market price: Rs755

Results above expectations

Result highlights

  • Tata Motors' performance for Q3FY2008 was above our expectations. The net sales for the quarter grew by 5% to Rs7,252 crore on the back of a 2% growth in volumes and a 3.1% growth in realisations.
  • Increase in costs adversely affected the operating profit margin (OPM) on a year-on-year (y-o-y) basis, which was down 150 basis points to 11.3%. However, the OPM improved on a quarter-on-quarter (q-o-q) basis by 163 basis points due to cost control and increase in prices. On a y-o-y basis, the operating profit declined by 7.1% to Rs819.7 crore.
  • A higher interest and depreciation charge led to a 8% drop in the adjusted net profits for the quarter to Rs406.5 crore. After accounting for the foreign exchange (forex) gain of Rs27.51 crore and the profit on the sale of shares in HV Axles of Rs65 crore, the reported net profits for the quarter declined by 3% to Rs499 crore.
  • The consolidated sales grew by 12.9% to Rs9,238.5 crore and the adjusted net profit prior to the forex gain and non-recurring income rose by 17% to Rs644 crore. Profit after tax (PAT) after extra-ordinaries and forex adjustments grew by 8.9% to Rs671.62 crore. 
  • The commercial vehicle (CV) industry should return to the normal y-o-y growth from FY2009 onwards, as the base of FY2008 has become low. Tata Motors has planned quite a few launches in the CV as well as the passenger vehicle segments in FY2009, which should help in driving the volume growth in FY2009.
  • In view of the better-than-expected profit margins and improved performance of subsidiaries, we upgrade our consolidated earnings estimates for FY2008 by 18% to Rs58.2. At the current levels, the stock trades at 11.9x its FY2009E consolidated earnings and is available at an enterprise value (EV)/earnings before interest, depreciation, tax, and amortisation (EBIDTA) of 5.9x. We maintain our Hold recommendation on the stock with a price target of Rs792.

 

Ceat                     
Cluster: Ugly Duckling
Recommendation: Buy
Price target: Rs250 
Current market price: Rs181

Results in line with expectations

Result highlights

  • Ceat's Q3FY2008 performance was in line with our expectations. 
  • The net sales grew by 5.1% to Rs564.1 crore due to lower production owing to festive holidays during the quarter and a slowdown in original equipment manufacturer (OEM) sales, which declined by 26.6% year on year (yoy). Replacement sales continue to be strong and rose by 21.9% during the quarter.
  • The operating profit margin (OPM) remained stable at 7.4% against 7.3% in the same quarter of the last year but declined significantly on a sequential basis from 9.4% in Q2FY2008 due to lower production and rising raw material prices, particularly rubber prices. Consequently, the operating profit grew by 7.1% to Rs41.8 crore.
  • A higher other income for the quarter at Rs8.3 crore, lower interest cost and stable depreciation charge led to a 63.2% rise in the net profit to Rs19.2 crore.
  • The land sale at its Bhandup plant is expected to be complete by Q4FY2008 and the company would gradually sell the whole plant and shift the operations to Patalganga.
  • Considering the continued buoyancy in the replacement market and strong opportunities in the specialty tyre segment, we maintain our positive outlook on Ceat. On back of very strong performance in the first nine months, strong margins and higher other income, we upgrade our FY2008 earnings estimate by 16.9% to Rs24.3 and expect the company to record a 10.4% top line growth in FY2009.
  • At the current market price of Rs181, the stock is trading at 6.9x its FY2009E earnings and an enterprise value (EV)/earnings before interest, depreciation, tax and amortisation (EBIDTA) of 3.1x. We maintain our Buy recommendation on Ceat with a price target of Rs250.

 

Tata Chemicals                     
Cluster: Ugly Duckling
Recommendation: Buy
Price target: Rs535
Current market price: Rs291

Disappointing overseas performance

Result highlights

  • Q3FY2008 results of Tata Chemicals Ltd (TCL) have been quite disappointing. The consolidated revenues during the quarter registered a de-growth of 4.5% year on year (yoy) to Rs1,700.1 crore on account of a lower contribution from the fertiliser segment. The revenues from the fertiliser segment decreased by 13.1% to Rs860 crore, while the same for the chemical division increased by 6.2% to Rs840 crore.
  • The consolidated operating profit during the quarter decreased by 14.5% from Rs292.2 crore to Rs249.8 crore, with the operating profit margin (OPM) declining by 170 basis points to 14.7%. The inability to pass on the increased input costs in overseas operations (due to long-term yearly contracts) led to an overall margin reduction. The segmental profit before interest and tax (PBIT) for the chemical division fell by 27.5% to Rs103 crore with the margins declining from 18% to 12.3%. While the PBIT for the fertiliser division increased by 29% to Rs99 crore with the margins improving by 380 basis points to 11.6%.
  • The consolidated profit after tax (PAT) decreased by 31.9% to Rs106.1 crore with the margins reducing by 260 basis points to 6.2%. A pre-payment penalty of Rs15 crore imposed on the early payment of high-cost debt and higher depreciation costs affected the subsidiaries' as well as the overall performance of the company.
  • On a stand alone basis, the net sales decreased by 6.4% due to lower volume of fertilisers traded, while PAT increased by 7.4% to Rs125 crore. The stand alone performance was little subdued also due to lower foreign exchange gains.
  • After the initial teething troubles, the new plant at Magadi facility is functioning smoothly and is expected to reach around 75% capacity utilisation by the next quarter. As soda ash prices in spot market remain firm at $280-300 per tonne, new long-term contract prices are expected to be much above the last year price of $200 per tonne. This would help the company regain its lost margin in the next two quarters.
  • De-bottlenecking of urea capacity to expand its Babrala capacity to 1.3 million metric tonne per annum (mmtpa) is progressing well and would be operational by September 2008. The company's new business initiatives like Fresh Produce and Biofuel are also shaping well.
  • TCL has recently entered into definitive agreements to acquire US-based General Chemical Industrial Products Inc (GCIP) for US$1,005 million, subject to stockholder and other regulatory approvals. GCIP is among the top five global producers with 2.5mmtpa of natural soda ash capacity, and its estimated recoverable trona ore reserves is approximately 600 million tonne. Prima Facie, this is a positive development in view of the soda ash upcycle remaining firm for the next two years. As the details of the acquisition are not disclosed, we have not updated financials of the company for the development. The company plans to finance this acquisition with a mix of debt-equity funding, which would lead to equity dilution. However it is earnings per share (EPS) accretive.
  • At the current market price of Rs291, the stock is trading at 9.8x its FY2009E diluted earnings and at an enterprise value (EV)/earnings before interest, depreciation, tax and amortisation (EBIDTA) of 5.0x. We maintain our Buy recommendation on the stock with a price target of Rs535.

 

Cadila Healthcare                     
Cluster: Emerging Star
Recommendation: Buy
Price target: Rs368
Current market price: Rs255

Price target revised to Rs368

Result highlights

  • Cadila Healthcare (Cadila)'s total operating income (consolidated) grew by a 22.7% year on year (yoy) to Rs579.4 crore in Q3FY2008. The sales were in line with our estimate and were driven by a 14.9% growth in the domestic business and a 40.4% growth in the exports.
  • While the domestic formulation business continued to remain sluggish during the quarter, the improved performance of the French business (a growth of 14.9% yoy) and the US business (a growth of 47.4% yoy) contributed largely to the robust growth in the exports. The company has already garnered ~$45 million in revenues from the US generic business in M9FY2008 and is well placed to exceed its guidance of $50 million for FY2008. We have modeled $55 million in US generic sales in FY2008 and $70 million in FY2009.
  • The prospects of Cadila's joint venture (JV) with Altana have been uncertain, with generic companies entering the market. This is already evident in Q3FY2008 as the revenues and profits of this JV dropped by 32% sequentially in Q2FY2008 and by 43% sequentially in Q3FY2008. The management has indicated that the expected loss of profits due to the generic entry in Pantoprazole would be to the tune of Rs17-18 crore in FY2009. On the other hand, Wyeth's (Altana's partner in the USA) appointment of an authorised generic player increases the JV's prospects, as the JV would be supplying the Pantoprazole active pharmaceutical ingredient (API) to the authorised generic player. We have conservatively modeled revenues of only $28 million in FY2008 and of $20 million in FY2009 for the JV. Any positive outcome from the ongoing talks between Cadila and Altana would be an upside to our estimates. 
  • Cadila's operating profit margin (OPM) expanded by 50 basis points to 17.9% in Q3FY2008. The expansion in the margin was largely due to a 170-basis-point improvement in the raw material cost. Consequently, the operating profit grew by 25.8% to Rs103.5 crore in Q3FY2008.
  • The pre-exceptional net profit grew by 13.2% to Rs52.4 crore due to a 27.4% rise in the depreciation (on account of acquisitions) and a 780-basis-point increase in the tax incidence. The net profit was below our estimate of Rs62 crore. The earnings for the quarter stood at Rs4.2 per share. 
  • Cadila's JV with Hospira for oncology injectables seems to be on track to start contributing from FY2009 onwards. The management has indicated that the JV will generate Rs150 crore in revenues in FY2009. However, we have built in only Rs100 crore into our estimate (of which Cadila's share will be Rs50 crore). 
  • In view of the slower than expected ramp-up in the domestic formulation business and the reduced revenue and profit potential of the Altana JV (due to generic entry), we are downgrading our numbers for Cadila. Further, we are also incorporating the revised guidance provided by the management on the revenue potential of the Cadila-Hospira JV from FY2009 onwards. We have revised downwards our FY2008 and FY2009 earnings estimates by 12.0% and 12.5% respectively to Rs19.7 per share in FY2008 and Rs23.0 per share in FY2009. 
  • Cadila's stock price has seen a significant correction over the past two weeks. We believe the current price more than factors in the genericisation of Pantoprazole. At the current market price of Rs255, the stock is available at attractive valuations of 12.9x our FY2008 and at 11.1x our FY2009 estimated earnings. We reiterate our Buy recommendation on Cadila with a revised price target of Rs368 (16x FY2009E earnings).

SECTOR UPDATE 

Automobiles                     

Low finance availability slows growth
Sales of automobile majors for January 2008 are below our expectations. The sales across segments have been impacted due to non-availability of finance. Financers have withdrawn lending in some of the northern markets due to cases of delinquencies and defaults. Till the financing situation eases out, growth will continue to be slow in the sector. In the case of passenger cars, the high base of last year is restricting the growth rates. 

Regards,
The Sharekhan Research Team

myaccount@sharekhan.com 

 

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DG - FW: Sharekhan Post-Market Report dated February 01, 2008

 

 

From: The Sharekhan Research Team [mailto:marketwatch@research.sharekhan.com]
Sent: 01 February 2008 19:49
To: The Sharekhan Research Team
Subject: Sharekhan Post-Market Report dated February 01, 2008

 

 

 

 Sharekhan's daily newsletter

Visit us at www.sharekhan.com

 

February 01, 2008

 

Index Performance

Index

Sensex

Nifty

Open

17,820.67

5,140.60

High

18,312.40

5,339.95

Low

17,534.96

5,090.75

Today's Cls

18,233.42

5,317.25

Prev Cls

17,648.71

5,137.45

Change

584.71

179.80

% Change

3.31

3.50

 

Market Indicators

Top Movers (Group A)

Company

Price 
(Rs)

%
chg

Gainers

Mphasis

248.00

10.03

i-flex

1,065.15

9.92

Sterlite Industries

815.50

8.60

Rolta India

252.50

8.21

Satyam Computer

421.05

8.18

Losers

Punj Lloyd

401.05

-9.31

Asian Paints

1,155.55

-7.24

Kotak Bank

958.70

-7.17

Moser Bear

202.75

-5.50

Birla Corporation

217.60

-5.12

Market Statistics

-

BSE

NSE

Advances

1,113

563

Declines

1,606

622

Unchanged

76

13

Volume(Nos)

26.62cr

46.60cr

 Market Commentary 

Market ends firm as IT stocks rally

The rally in IT stocks followed by firm open in European markets saw the Sensex gain 585 points at close

The rise in the inflation rate could not dampen the market spirits as the Sensex staged gains of around 600 points at close. 

 

The market reported a solid performance on the back of strong all-round buying even though other major Asian indices exhibited a subdued trend in the morning trades. The market opened with a gap of 172 points at 17,821, but slipped immediately on selling in heavyweight, realty, and power stocks and touched the day's low of 17,535. However, buying at lower levels in technology, metal, auto and oil stocks saw the Sensex shed all of its losses and enter into the green again. Sustained buying thereafter helped the Sensex to regain the 18,000 mark and touch the intra-day high of 18,312. The Sensex finally closed the session at 18,233, up 585 points. The Nifty ended the session up 180 points at 5,317.

The market breadth was negative, with the losers outpacing the gainers in the ratio of 1.43:1. Of the 2,795 stocks traded on the Bombay Stock Exchange (BSE), 1,113 stocks advanced, 1,606 stocks declined and 76 stocks ended unchanged. Among the sectoral indices, the BSE IT index moved up by 5.77% followed by the BSE Teck index (up 3.94%), the BSE Metal index (up 3.63%) and the BSE Auto index (up 3.54%). However, the BSE CD index and the BSE Realty index closed in the negative territory and shed 0.05% each.

Among the tech stocks Satyam Computer shot up 8.18% at Rs421, TCS soared 6.17% at Rs929, Infosys surged 5.80% at Rs1,591 and Wipro jumped 5.79% at Rs437. Among the other gainers Tata Motors moved up by 6.82% at Rs754, Hindalco scaled up 6.73% at Rs177, Maruti Suzuki was up 6.60% at Rs905, Tata Steel advanced by 5.86% at Rs776, ONGC gained 5.68% at Rs1,045 and HDFC advanced by 5.44% at Rs2,998. However, ACC slipped 3.72% at Rs754, followed by Ambuja Cement and HDFC Bank, which were down 0.79% and 0.05% respectively. 

Over 1.47 crore Ispat Industries shares changed hands on the BSE followed by RNRL (1.28 crore shares), Reliance Petroleum (1.07 crore shares), Hindustan Futuristic Communication (93.67 lakh shares) and Future Capital (88.84 lakh shares).

Valuewise, Future Capital registered a turnover of Rs784 crore on the BSE followed by Reliance Energy (Rs246 crore), Reliance Petroleum (Rs178 crore), RNRL (Rs177 crore) and Reliance Industries (Rs162 crore).

European Indices at 16:20 IST on 01-02-2008

Index

Level

Change (pts)

Change (%)

FTSE 100

5960.60

80.80

1.37

CAC 40 Index

4951.29

81.50

1.67

Dax Index

6920.92

69.17

1.01

Asian Indices at close on 01-02-2008

Index

Level

Change (pts)

Change (%)

Nikkei

13497.16

-95.31

-0.70

Hang Seng

24123.58

667.84

2.85

Kospi Composite

1634.53

9.85

0.61

Straits Times

3007.80

26.05

0.87

Jakarta Composite

2646.82

19.57

0.74

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