Equity Alert: Mphasis down 3% as HP not required to make open offer

[K.Karthik Raja]

Equity Alert: Mphasis down 3% as HP not required to make open offer
MUMBAI--12PM--Shares of Mphasis were down 3% at 232 rupees after
its parent
Electronic Data System said Hewlett-Packard was not required to make
an open
offer for Mphasis post HP's merger with EDS. EDS holds 61% stake in
Mphasis.
The stock, however, was off its intraday low of nearly 4% after
Barings Pvt
told CNBC-TV18 it is bullish on MphasiS, and that the company's share
price
does not reflect its growth.
Barings Pvt is the second largest shareholder in Mphasis, holding
8% stake.
Dealers expect the stock to remain weak in coming sessions, with
immediate
support around 221-225 rupees.
The stock has gained 7% since May 13 on prospects of an open offer
after
HP said it is in talks to buy EDS.

[K.Karthik Raja]

---------------------------------------------- Equity Alert: Auto
shares down on fuel cost, interest rate worries
MUMBAI--11:40AM--Automobile shares were weak amid worries about
rising fuel
and metal prices, and inflation rate as international crude oil prices
rose to
a record, dealers said.
Crude for July delivery touched a record high of $135.04 earlier
today.
Due to their inability to hike retail product prices, oil
marketing
companies have begun selling only their premium brands in city petrol
pumps.
In addition to rising interest rates, this move is seen dissuading
some
potential automobile buyers, analysts said.
Also, inflation is likely to escalate from current levels as
prices of
essential raw materials like steel have been on a persistent rise,
putting
tremendous pressure on margins for automobile manufacturers.
Analysts say the next three quarters will be challenging for
automobile
manufacturers as they struggle to maintain margins and volume growth
despite
increasing input costs.
BSE Auto index was down 2%, with Tata Motors down 4% at 661
rupees, Mahindra
& Mahindra down 2.2% at 652 rupees, and Maruti Suzuki down 1.6% at 800
rupees.
Hero Honda Motors was up marginally at 788 rupees, after falling
for the
past five sessions.
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