Equity Alert: Eicher Motors up 4% as Jun sales rise 9% on year

[K.Karthik Raja]

Equity Alert: Eicher Motors up 4% as Jun sales rise 9% on year
MUMBAI--1PM--Shares of Eicher Motors were up 4% at 251.20 rupees
as the
company's June sales grew 9% from a year ago to 2,677 units. The
commercial
vehicle maker's exports grew 27% on year to 245 units, while domestic
sales
were up 7% at 2,432 vehicles.
"In Apr-Jun, growth in CV sales was 6-7%. However, with fuel
prices,
interest rates, and inflation going up, sales for the auto sector will
be weak
for the next quarter," Piyush Parag, analyst at Religare Research,
said.
Commercial vehicle sales during Apr-Jun had improved a little, as
customers
advanced their purchases in anticipation of a price hike due to rising
costs of
raw materials like steel and aluminium.
Nearly 96% of all commercial vehicle buys are financed.
Banks have hiked their benchmark prime lending rates by 25-100
basis points
after Reserve Bank of India raised its interest rates to suck out
liquidity and
rein in the spiralling inflation.
So far today, 24,782 shares of Eicher Motors have been traded on
BSE and
NSE together.
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NW18 Equity Alert: Nifty July at 49.5-pt discount; open interest up 5%
MUMBAI--12:45PM--Nifty July futures contract was at a 49.5-point
discount to
the spot, while open interest in the contract was up 5% at 42.1 mln as
investors
built short positions.
--Nifty was at 4091.70, up 75.50 points, or 1.9%.
--Nifty July was at 4042.20, up 63.05 points, or 1.6%.
Resistance for Nifty is seen around 4100, and then at 4150, HDFC
Securities
said in a report.
July contracts of Reliance Industries, Reliance Petroleum,
Reliance Capital,
ICICI Bank, Reliance Infrastructure, DLF, Reliance Communications and
Tata Steel
were most actively traded. (Deepika D. Thapliyal)
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NW18 Equity Alert: Pvt oil cos dn on report of likely windfall tax
levy
MUMBAI--12:25PM--Shares of private oil exploration and refining
companies
were down, bucking the positive trend in the broader market on a
report the
companies may have to pay a windfall profit tax to share the subsidy
burden due
to high crude oil prices.
Reliance Industries was down 1% at 2,078 rupees, and Cairn India
was down
2.4% at 246 rupees.
"There is no clarity or bifurcation whether the tax will be on
upstream
companies or refineries. If it is for upstream, Cairn will be more
affected
than
Reliance Industries since it has more explorations projects," said
Rohit Nagraj,
analyst at Angel Broking.
However, Nagraj is unsure of the viability of such a move and sees
today's
fall in oil companies' shares as a knee-jerk reaction. He has a target
of
3,344 rupees for Reliance Industries. (Mayura Mantri)
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NW18 Equity Alert: Siemens up 5% on value buying; support seen 435
rupee
MUMBAI--12:20PM--Shares of Siemens were up 5% at 448 rupees on
value buying,
dealers said.
A technical analyst said the stock is not showing much strength
intraday and
is likely to find support at 435 rupees.
So far on NSE, 678,310 shares of the company have been traded. Its
July
futures contract was at a 4-point discount to the spot, with 1.7% rise
in open
interest.
"The stock has fallen significantly and may be seeing some short
covering
right now. Sentiment for capital goods is also up as the nuclear deal
is likely
to get finalised," said an analyst with Kotak Securities.
He said the company's Apr-Jun earnings "may look good",
considering most of
the write-offs were done in the Jan-Mar quarter.
Last quarter, Siemens shocked investors by posting a net profit of
16.6 mln
rupees, sharply lower than 1.1 bln rupees a year ago, due to
provisioning of
1.1 bln rupees for estimated losses on certain large projects. (Shikha
Lal)
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NW18 Equity Alert: Pyramid Saimira up 3% on reports of stake sale
MUMBAI--12:15AM--Shares of Pyramid Saimira Theatre were up 3.40%
at
182.70 rupees on reports U.S.-based Regal Entertainment Group and
private
equity funds are in talks with the promoters to buy 14% stake in the
company,
dealers said.
Shares touched intraday high of 195 rupees on the reports.
Private equity and funds and Regal Entertainment are in
discussions with
the promoter Nirmal Kotecha, who holds 14% stake, to buy his stake at
a price
of over 350 rupees per share, The Economic Times newspaper reported
today.
The deal is seen in the range of 2.5-3.0 bln rupees, the report
said.
"The key issue is valuation. If the deal goes through at around
350
rupees (per share) it is a significant premium and will generate some
buying
interest," a dealer at a domestic brokerage house said.
He said intraday resistance for the stock is at 198 rupees.
ON NSE, over 1 mln shares of the company have been traded so far
today.
(Savitha K.)
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NW18 Equity Alert: Everonn up 8%; may announce Himachal order win
today
NEW DELHI--12:10PM--Shares of Everonn Systems India were up 7.6%
at
466 rupees after touching a high of 473 rupees in the session so far
today.
The company has got an order for setting up computer laboratories
in
government-run schools in Himachal Pradesh, a company official told
NewsWire18.
The announcement is expected around 1PM. (Dhirendra Tripathi)
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NW18 Equity Alert: Deccan Aviation up on report Kingfisher eyes
Spicejet
MUMBAI--12:09AM--Shares of Deccan Aviation were up 18% at 68.95
rupees on
reports that promoter Kingfisher Airlines was eyeing stake buy in
rival
company Spicejet, dealers said.
Spicejet was also up 18% at 69.20 rupees on BSE.
Dealers said that both Spicejet and Deccan Aviation shares rose on
expectations of another round of consolidation, which would bring more
pricing power and market share to Deccan Aviation.
"Kingfisher's acquisition of a major stake in Spicejet is being
viewed
more as a strategic play for the former, rather than an economically
sound
decision," said an analyst with a domestic brokerage.
He said pricing would be the key-determining factor.
"At current valuations, Kingfisher would get Spicejet really
cheap," said
another analyst at a Mumbai-based international fund house.
However, analysts do not see any the consolidation offering any
synergies
between Kingfisher-Deccan and Spicejet, as Spicejet's fleet comprises
Boeing
aircraft, while Kingfisher and Deccan have ATR turboprops and Airbus
aircraft. (Manuja Pandey)
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NW18 Equity Alert: ADAG cos rise; Reliance Infra up 7%; R-Comm up 3%
MUMBAI--11:40AM--Shares of Anil Dhirubhai Ambani Group companies
rose 3-7%
on speculation of perceived gains from the change in the political
equation,
dealers said.
The Samajwadi Party has entered into an alliance with the Congress
to bail
out the United Progressive Alliance-led government on the India-US
nuclear deal.
Anil Ambani, an ex-member of the Rajya Sabha, was elected on
support from
Samajwadi Party.
Reliance Infrastructure was up 7% at 827 rupees, Reliance
Communications and
Reliance Power gained 3% each, at 448 rupees and 140 rupees,
respectively.
Reliance Capital was up 7% at 1,060 rupees, and Reliance Natural
Resources
was up 4% at 71 rupees.
Technical analysts said the shares were looking good on charts.
"Reliance Infrastructure is looking good, and could up to 920
rupees, while
R-Comm could bounce back to 450-455 rupees after which there could be
profit
booking in the stock," Nitin Kunte, technical analyst, Angel Broking
said.
Reliance Communications has support at 380-390 rupees, and
Reliance
Infrastructure at 660-670 rupees, Kunte said. (Deepika D. Thapliyal)
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NW18 Equity Alert: Capital goods shares up on value buying; BHEL up 3%
MUMBAI--10:52AM--Shares of capital goods companies were up on
value buying,
dealers said.
"The stocks have been beaten down quite severely on rising input
costs
worry. At these levels they are attractive to buy, plus today is a
relief
rally," said a dealer.
Bharat Heavy Electricals was up 3%, helped by reports the company
is set to
win a 25-bln-rupee order for boilers for the 1,600-MW Krishnapatnam
power
project of the Andhra Pradesh Power Generation Corp, dealers said.
The stock is likely to remain in the 1,545-1,585 rupee range
intraday,
while Larsen & Toubro, up 3.5%, shows the potential to rise up to
2,490 rupees,
a dealer said.
ABB should hold onto 860-rupee levels, he said, adding resistance
for the
stock is likely at 882-885 rupees. (Shikha Lal)
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NW18 Equity Alert: Share market up 2%; capital goods, realty cos lead
MUMBAI--10:05AM--Share indices surged 2% in early trade today,
helped by a
recovery in Asian markets, dealers said.
Sensex was at 13695.66, up 241.66 points, or 1.8%. Nifty was at
4085.95,
up 70.95 points, or 1.8%.
Capital goods, real estate, and power shares led gains.
Suzlon Energy, up 7%, was the top gainer on Nifty, while Bharat
Heavy
Electricals and DLF rose around 4% each.
Pyramid Saimira Theatre jumped nearly 9% on a report private
equity funds
are eyeing 14% stake in the company.
Cairn India, down 3% on a report private oil companies may have to
pay a
windfall tax to bear the subsidy burden of the sector, was the worst
hit on
Nifty. (Shikha Lal)
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NW18 Equity Alert: Pvt oil cos seen dn on report govt to levy more tax
MUMBAI--9:30AM--Shares of private oil exploration companies such
as Reliance
Industries, Essar Oil, and Cairn India are seen weak on reports the
government
is considering levying a windfall tax on profits of these companies,
to reduce
the huge subsidy burden shared by public sector companies, dealers
said.
Analysts said exploration companies such as Cairn India, which
benefit from
rising crude oil prices, will have to pay a portion of their profit in
taxes if
the tax is levied.
"The proposal of tax on profit has been there for quite sometime
now. It
was pushed to backburner, as the government did not seriously consider
it then.
The shares may react negatively as global cues are also weak," a
senior dealer
at a domestic brokerage house said.
Friday, shares of Cairn India ended down 2.2% at 251.65 rupees,
while RIL
rose 1.3% to 2,097.90 rupees, and Essar Oil surged 6.7% to end at
180.05 rupees.
(Savitha K.)
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NW18 Equity Alert: SpiceJet seen in focus on stake sale reports
MUMBAI--9:35AM--Shares of SpiceJet are seen in focus today
following reports
that two major shareholders of the airline are planning to sell stake,
dealers
said.
According to media reports, UB Group Chairman Vijay Mallya and
American turn
around investor Wilbur Ross Junior are in the race to bail out the
airline from
its current crisis.
While SpiceJet promoters have clarified that they have no plans to
exit and
would stay invested in the airline, the weak outlook on the aviation
business
dragged the stock to its 52-week low of 20.50 rupees last week.
Friday, SpiceJet shares ended at 25 rupees on BSE, up 7.8% from
the previous
close. Hence, the stock could see some profit booking if there is no
further
news flow on the stake sale, dealers said. (Kailash Rajwadkar)
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NW18 Equity Alert: Shr indices seen choppy; political developments
eyed
MUMBAI--9:25AM--Share indices are likely to remain choppy today on
mixed
cues from Asian markets and amid caution about developments on the
political
front, dealers said.
The Left has set today as the deadline for the United Progressive
Alliance
government to respond to its queries regarding the India-US nuclear
deal.
Any decision on withdrawal of support is likely to be taken after
the
government's response.
"The question remains that of when Left will withdraw support. It
is the
timing that will be important. Nifty support is at 3900 and then at
3850," said
a dealer.
Shares of private players like Reliance Industries, Cairn India,
and Essar
Oil may see some downside on a newspaper report they may have to pay a
windfall
profit tax.
Friday, Sensex closed at 13454.00, up 359.89 points, or 2.8%, from
the
previous session. Nifty ended at 4016.00, up 90.25 points, or 2.3%.
(Shikha
Lal)
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NW18 Equity Alert: FIIs net sell index futures worth 2.15 bln rupees
Fri
MUMBAI--8:25AM--On NSE, foreign institutional investors Friday net
bought
stock futures worth 2.21 bln rupees and net sold index futures worth
2.15 bln
rupees.
Foreign funds net bought Indian shares worth 3.72 bln rupees on
BSE and NSE
combined Friday, according to provisional data on NSE Web site.
Nifty July ended at a 37-point discount to the spot index, with
2.4% rise in
open interest to 40.21 mln.
--Nifty closed at 4016.00, up 90.25 points, or 2.3%, from
Thursday.
--Nifty July ended at 3979.05, up 99.45 points, or 2.6%. (Shikha
Lal)
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NW18 Equity Alert: SGX CNX Nifty July down nearly 1%; key Asian mkts
weak
MUMBAI--8:12AM--SGX CNX Nifty July was down nearly 1% today in
line with the
fall in most Asian markets on worries of a slowdown in global
economies.
--SGX CNX Nifty July was at 3935.00, down 30 points, or 0.75% from
Friday.
On Friday:
--S&P CNX Nifty ended at 4016.00, up 90.25 points, or 2.3%, from
Thursday.
--S&P CNX Nifty July settled at 3979.05, up 99.45 points. (Shikha
Lal)
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NW18 Equity Alert: Key Asian markets mixed; auto, airline shares fall
MUMBAI--8AM--Key Asian indices were mixed in choppy trade today,
with shares
of exporters taking a hit on worries a slowdown in global economies
would hurt
demand for products.
Toyota Motor Corp fell 0.4%, while shares of Samsung Electronics
Co declined
after UBS recommended selling the company's shares due to a slowing
consumer
spending in Europe.
Airline shares fell on concerns over rising crude oil prices.
Japan Airlines
and Korean Air Co slid 2% and 4%, respectively.
The US stock market was closed Friday on account of Independence
Day.
.
Index Last level Change in %
Japan's Nikkei 13229.46 (-)0.1
South Korea's Kospi 1565.32 (-)0.8
Singapore's Straits Times 2895.89 0.1
Taiwan's Taiex 7245.42 0.2
Hong Kong's Hang Seng 21490.72 0.3
(Shikha Lal)
.
All prices from National Stock Exchange, unless otherwise specified.
All times are Indian Standard Time.
BSE: Bombay Stock Exchange
NSE: National Stock Exchange
NYSE: New York Stock Exchange
NYMEX: New York Mercantile Exchange
SEBI: Securities & Exchange Board of India
End
.-datetime = 7/7/2008 1:40:27 PM
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