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Showing posts from March 22, 2009

Mid-cap construction companies perform better than large cap

MUMBAI: Out of 35 construction companies, those with a market capitalization of less than Rs 1,000 crore outperformed their larger counterparts in the fortnight to March The total market capitalization of the seven large cap companies—Rs 57,275.52 crore as on March 26—has risen by 17% since March 9. On the other hand, the market cap of mid cap companies—the remaining 28 companies—has grown 21% in the same period to Rs 6391.81 crore. The Sensex rose by 20% in the same period.

Large cap companies include Larsen and Toubro, Punj Lloyd, Jaiprakash Associates, IRB Infrastructure, IVRCL Infrastructure, Nagarjuna Construction and Era Infra Engineering while the rest lie in the mid and small cap categories.

One of the reasons for the outperformance of the mid cap companies, is that most in the list of remaining 28—namely, Hindustan Construction, Patel Engineering, Simplex Infrastructures, Gammon India, Consolidated Construction, Sadbhav Engineering, BL Kashyap & Sons, Ahluwal…

Reliance Mutual buys stake in Financial Tech

Our Bureau Mumbai, March 27 Reliance Mutual Fund has purchased Financial Technologies' shares worth Rs 120.5 crore, according to the bulk deal reports on the BSE. Some FIIs sold the shares of the company. Financial Technologies is promoted by Multi Commodity Exchange (MCX). Reliance Capital Trustee Company Ltd bought 24 lakh shares (or 5.23 per cent stake) of Financial Technologies for Rs 502.50 a share. FID Funds Mauritius Ltd and Fidelity sold 37.5 lakh shares of Financial Technologies worth Rs 188.81 at Rs 501.83 a share. Meanwhile, MCX on Friday ruled out the possible exit of Fidelity and Citigroup as shareholders of MCX. "Fidelity and Citi are shareholders of MCX as permitted under Government policy on Foreign Investment in Commodity," said a statement issued by Financial Technologies to the BSE.MCX's IPO plans have been delayed due to unfavourable market

IOB capitalises on hike in stake by LIC

Indian Overseas Bank rose 1.53% to Rs 46.45 at 10:31 IST on BSE, after the biggest domestic instutional investors Life Insurance Corporation of India hiked its stake in the state-run bank. The bank made this announcement after trading hours on Wednesday, 25 March 2009. Meanwhile, the BSE Sensex was up 126.19 points, or 1.31%, to 9,794.09. On BSE, 31,003 shares were traded in the counter. The stock had an average daily volume of 1.93 lakh shares in the past one quarter. The stock hit a high of Rs 47 and a low of Rs 45.95 so far during the day. The stock hit a 52-week high of Rs 156.80 on 2 May 2008 and a 52-week low of Rs 37.55 on 9 March 2009. The mid-cap bank stock had underperformed the market over the past one month till 25 March 2009, falling 3.17% as compared to the Sensex's 8.60% rise. It had also underperformed the market in the past one quarter, declining 33.94% as compared to the Sensex's 1.04% rise. The bank's current equThe current price of Rs 46.4…

Bongaigaon Refinery merges with IOC

Our Bureau Kolkata, March 25 Assam-based Bongaigaon Refinery and Petrochemicals Ltd (BRPL) has merged with parent IndianOil with effect from today. With this IOC's business consolidation process comes to a near end. The company is now left with the last major subsidiary of Chennai Petroleum Corporation Ltd (CPCL). Having started the consolidation process with the merger of Assam Oil in October 1981, IOC has merged its lube manufacturing facility Indian Oil Blending Ltd (IOBL) and petroleum product retailer IBP Ltd with itself in May 2006 and May 2007 respectively. Though the company has tried in the past to merge CPCL, however, the discussion could not progress much reportedly due to the resistance of its Iranian partner National Iranian Oil Company, which holds a minority 15 per cent stake in the company. When asked whether IOC was still interested in merging CPCL with itself, the IOC Chairman Mr Sarthak Behuria, said the company was not considering any such proposal. …

Mangalam Timber gallops as a promoter hikes stake

Mangalam Timber Products was locked at 20% upper limit at Rs 14.89 at 14:18 IST on BSE, after one of the promoter group companies hiked stake in the firm. The company announced the increase in promoter stake after market hours on Tuesday, 24 March 2009. Meanwhile, the BSE Sensex was up 126.86 points, or 1.34%, to 9,597.90. On BSE, 55,551 shares were traded in the counter. The stock had an average daily volume of 3,184 shares in the past one quarter. The stock hit a high of Rs 14.89 and a low of Rs 13.28 so far during the day. The stock hit a 52-week high of Rs 26 on 22 April 2008 and a 52-week low of Rs 9.70 on 27 October 2008. The small-cap stock had underperformed the market over the past one month till 24 March 2009, falling 8.07% as compared to the Sensex's 7.36% rise. It had also underperformed the market in the past one quarter, declining 22.68% as compared to the Sensex's 1.02% fall. The company's current equity is Rs 18.33 crore. Face value per share …

Energy Development Company charged up after hike in stake by a director

Energy Development Company was frozen at the 10% upper circuit at Rs 47.45 at 14:51 IST after a director in the firm Pankaja Kumari Singh raised her holding in the firm by 0.63% through open market purchases. The company made the announcement of the hike in stake by Pankaja Kumari Singh after market hours on Monday, 23 March 2009. Meanwhile, BSE Sensex was up 89.92 points or 0.95% to 9,513.84. On BSE, 38396 shares were traded in the counter with pending buy orders of 5201 shares at maximum limit. The stock had an average daily volume of 8570 shares in the past one quarter. The stock hit a high of Rs 47.45 and a low of Rs 45.10 so far during the day. The stock had hit a 52-week high of Rs 168.45 on 25 March 2008 and a 52 week low of Rs 31.20 on 3 December 2008. The small-cap scrip had outperformed the market over the past one month till 23 March 2009, galloping 19.36% as compared to the Sensex's 6.57% rise. It also outperformed the market in the past one quarter, gain…

Copper rises to multi-mth highs on US asset plan

Shanghai copper rallies for 7th day, LME jumps
China refined copper imports hit record in February
U.S. Treasury plan to buy toxic assets lifts sentiment
Shanghai zinc, aluminium hit 5 pct daily limitCopper surged to multi-month highs on Monday, supported by hopes China would continue to build stocks and a U.S. plan to help rid banks of up to $1 trillion in toxic assets which should aid recovery in demand for the industrial metal.An official of the Obama administration said the government will put in $75 billion to $100 billion from its bailout fund to partner with private investors and buy troubled assets from banks, a long-awaited bid to tackle the heart of the credit problem."Obviously the contagion is looking to get out of hand so they're trying as much as they can at it, and this might be something that would actually support base metals prices," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney."At the moment it's about pure per…

Punj Lloyd: Hold

Strong order flows and a shift in focus to segments that are less affected by the slowdown would lend visibility to the company's long-term growth story.

The company's order inflows from overseas has remained healthy. Vidya Bala At a time when a number of established infrastructure companies have reported sedate December quarter numbers, due to the macro economic slowdown, Punj Lloyd's order flows and revenue growth have remained relatively healthy. But profits have been under pressure, with internal issues such as cost overruns and revocation of bank guarantee by its foreign subsidiary's client weighing on the company's consolidated profits. For the quarter ended December 2008, the company posted consolidated losses of Rs 225 crore, on revenues of Rs 3,120 crore. This, together with delays in execution of some orders (delay being from the client's end), may depress the near-term earnings picture for the company. Strong order flows, together with a s…