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Summary
of Contents
PULSE TRACK
-
July 2006 IIP grows
at 12.4% in line with expectations
STOCK UPDATE
Aditya Birla Nuvo
Cluster: Apple
Green
Recommendation: Buy
Price target:
Rs1,031
Current market price: Rs812
ABN to raise Rs780 crore through
rights
Yesterday Aditya Birla Nuvo (ABN) received the
approval from its board of directors to raise up to Rs780.0 crore
through the issue of equity shares to the existing shareholders on a
rights basis. The proceeds of this issue will be used to repay part
of the existing debt and for other corporate purposes. The ratio at
which the shares will be issued to the existing shareholders as well
as the price per share would be decided by the board and announced
at a later date. The promoters (the Aditya Birla group), who hold
around 34.2% of equity, have expressed their full commitment to this
offer, ie the promoters will be fully subscribing to the shares
allotted to them.
Reliance
Industries
Cluster:
Evergreen
Recommendation: Buy
Price target:
Rs1,200
Current market price: Rs1,107
Q2FY2007 earnings to be
volatile
The declining prices of crude as well as
finished products may also increase the inventory losses of RIL. The
price of gasoline is lower by about 4% over the previous quarter
whereas that of diesel has remained flat.
The declining GRMs and plant shutdown, along with
inventory losses would make it difficult to forecast RIL's earnings
for Q2FY2007.
SECTOR
UPDATE
Automobile
Monsoon and floods impact
sales
The monsoons and heavy floods in some parts of
the country resulted in lower automobile sales numbers for August
2006. Though the car segment reported a good performance with a 16%
domestic growth, the two-wheeler sales slowed down with just a 2.9%
growth. The overall automobile sales volume rose by 6.5% with the
domestic and export sales rising by 5.9% and 16.5% respectively.
INDUSTRY UPDATE
Positive market sentiment boosts mutual funds'
AUM
The AUM for equity
funds increased by 7.6% to Rs114,215 crore in August 2006. The rise
was in line with the general upward movement seen in the equity
markets. | 
