Indian Oil Corporation (IOC) is eyeing an annual turnover of Rs 20 billion from non-fuel retail in five years, reports Business Standard.
IOC currently has a non-fuel retail turnover of Rs 40 million.
IOC will tie up with major retailers and set up convenience stores, super markets and other formats, depending on the real estate it has at its outlets, and will follow a revenue sharing model. The company is seriously looking at the non-fuel business in a big way. It is talking to some of the leading retailers in the country and the tie-ups will be in place by January 2008.
In the urban areas, the stores will come in two sizes, 300 to 700 sq feet and 700 to 1,000 sq feet. They will be between 1,000 sq feet and 1,500 sq feet on highways. Margins in food and groceries or any other forms of retailing are higher than in fuel retailing, which is why companies are getting into this sector.
Shares of IOC gained Rs 0.70, or 0.18%, to end at Rs 389.8. The total volume of shares traded was 20,689 at the BSE (Tuesday).
Tuesday, September 18, 2007
Bharti airtel on new deal
Bharti Airtel`s subsidiary, Bharti Airtel Lanka, signed a three year USD 150 million deal with Chinese telecom major, Huawei Technologies to manage its networks, reports Business Standard.
Huawei will deploy and manage Airtel`s core network, nodes, cell sites and its 2G and 3G network solutions. It will also provide telecom applications and software to Bharti Airtel.
Huawei`s technology will reduce Bharti Airtel`s total cost of ownership (TCO), enhance its competitive edge and also help the company deploy its network faster and economically.Bharti Airtel was recently awarded the license to commence 2G and 3G mobile services in Sri Lanka.
Shares of Bharti Airtel gained Rs 18.25, or 2.24%, to end at Rs 832.5. The total volume of shares traded was 152,518 at the BSE.(Tuesday)
Huawei will deploy and manage Airtel`s core network, nodes, cell sites and its 2G and 3G network solutions. It will also provide telecom applications and software to Bharti Airtel.
Huawei`s technology will reduce Bharti Airtel`s total cost of ownership (TCO), enhance its competitive edge and also help the company deploy its network faster and economically.Bharti Airtel was recently awarded the license to commence 2G and 3G mobile services in Sri Lanka.
Shares of Bharti Airtel gained Rs 18.25, or 2.24%, to end at Rs 832.5. The total volume of shares traded was 152,518 at the BSE.(Tuesday)
Sunday, September 16, 2007
Gilt yeilds drop on low IIP July numbers
Gilt yields dropped on September 10 on possible Federal Reserve cut, after data on non-farm payroll was released, indicating a slowdown in the US economy. Optimism was seen in the debt market, leading to ample liquidity in the banking system. The central bank received 25 bids and absorbed Rs 279.40 billion via 1-day reverse repos on Sep. 10, 2007. The benchmark yield on the 10-year federal bond ended at 7.83% down from Friday`s close of 7.88%.
Gilt yields reversed its mode on September 11, as traders booked profit with corporates paying for their taxes of Rs 350 billion, leaving the banking system with less liquidity. Demand for gilt was low with yields high on worries about inflation, which may be affected on spiraling crude oil prices trading at USD 78 barrel. The benchmark yield on the 10-year federal bond ended at 7.87%, up from the previous close of 7.83% .
Gilt yields declined on September 12 on slowdown of industrial activity that was low at 7.1% in July 2007 as against 13.2% last year. There was speculation that central bank may unchange or lower the interest rates. Demand of gilt increased with 91-days treasury bill witnessing a low cut-off price at Rs 98.26 (YTM is 7.1027%), marginally lower than Rs 98.27 at the previous auction. The notified amount for the auction was Rs 35 billion out of which Rs 30 billion was market stabilization scheme (MSS) amount. The benchmark 10-year bond yield ended at 7.86%, marginally lower than the previous close of 7.87%.
Gilt yields continued its northward journey on September 13 on concern of liquidity conditions in the debt market after payment of taxes of Rs 350 billion by corporates in the coming weeks. Besides that, apex bank intervened as there was shortage of liquidity in the system. To increase cash in the financial system, central bank bought Dollars. The benchmark gilt yields of 10-year bond ended at 7.87%, up a notch from the previous close of 7.86%.
Gilt yields reversed its mode on September 14, on speculation of Federal Reserve cut on interest rates to help the economy from a slowdown. Low inflation of 3.52% for the week ended September 1 as against 3.79% last week boosted the sentiments of the investors in the debt market. The benchmark yield on the 10-year bond ended at 7.86%, marginally lower than Thursday`s close of 7.87%.
Gilt yields reversed its mode on September 11, as traders booked profit with corporates paying for their taxes of Rs 350 billion, leaving the banking system with less liquidity. Demand for gilt was low with yields high on worries about inflation, which may be affected on spiraling crude oil prices trading at USD 78 barrel. The benchmark yield on the 10-year federal bond ended at 7.87%, up from the previous close of 7.83% .
Gilt yields declined on September 12 on slowdown of industrial activity that was low at 7.1% in July 2007 as against 13.2% last year. There was speculation that central bank may unchange or lower the interest rates. Demand of gilt increased with 91-days treasury bill witnessing a low cut-off price at Rs 98.26 (YTM is 7.1027%), marginally lower than Rs 98.27 at the previous auction. The notified amount for the auction was Rs 35 billion out of which Rs 30 billion was market stabilization scheme (MSS) amount. The benchmark 10-year bond yield ended at 7.86%, marginally lower than the previous close of 7.87%.
Gilt yields continued its northward journey on September 13 on concern of liquidity conditions in the debt market after payment of taxes of Rs 350 billion by corporates in the coming weeks. Besides that, apex bank intervened as there was shortage of liquidity in the system. To increase cash in the financial system, central bank bought Dollars. The benchmark gilt yields of 10-year bond ended at 7.87%, up a notch from the previous close of 7.86%.
Gilt yields reversed its mode on September 14, on speculation of Federal Reserve cut on interest rates to help the economy from a slowdown. Low inflation of 3.52% for the week ended September 1 as against 3.79% last week boosted the sentiments of the investors in the debt market. The benchmark yield on the 10-year bond ended at 7.86%, marginally lower than Thursday`s close of 7.87%.
Vodafone drags I-T dept. to court over tax claim
Vodafone Essar challenged the right of the income tax authorities to levy a capital gains tax on it by filing a writ petition in the Bombay High Court, reports Economic Times.
The I-T department issued a showcause notice to Vodafone Essar asking an explanation why it (Vodafone Essar) should not be treated as an agent of Hutchison International.
Hutchison International sold majority stake in Hutchison Essar to Vodafone for USD 11.2 billion. Hutchison Essar is now called Vodafone Essar.
The writ is aimed at preventing the income-tax department from taking further action.
The court is likely to hear the petition on September 27 and if the court grants an injunction or stay, to Vodafone Essar, tax authorities may not be able to proceed further.
The transaction value being USD 11.2 billion, the tax liability could be USD 1.7 billion which Hutchison - the seller, would ordinarily have. Since the tax authorities do not have access to Hutchison in Hong Kong, they have issued a notice to Vodafone Essar.
The I-T department issued a showcause notice to Vodafone Essar asking an explanation why it (Vodafone Essar) should not be treated as an agent of Hutchison International.
Hutchison International sold majority stake in Hutchison Essar to Vodafone for USD 11.2 billion. Hutchison Essar is now called Vodafone Essar.
The writ is aimed at preventing the income-tax department from taking further action.
The court is likely to hear the petition on September 27 and if the court grants an injunction or stay, to Vodafone Essar, tax authorities may not be able to proceed further.
The transaction value being USD 11.2 billion, the tax liability could be USD 1.7 billion which Hutchison - the seller, would ordinarily have. Since the tax authorities do not have access to Hutchison in Hong Kong, they have issued a notice to Vodafone Essar.
Thursday, September 13, 2007
Oil embraces a new high
Oil prices on Thursday (September 13), ended above USD 80 a barrel for the first time on Thursday; gasoline prices rose as refiners reported production problems after Hurricane Humberto hit Texas.
Oil had made a new high in an intraday trading session hitting above USD 80 a barrel on Wednesday, but ended the day below the USD 80 mark.
Light, sweet crude for October delivery finished at a record USD 80.09, up 18 cents on the New York Mercantile Exchange (NYMEX).
The October oil contract also set an intraday record of USD 80.20 a barrel on Thursday.
In London, October Brent crude fell 28 cents, to settle at USD 77.40 a barrel on the ICE futures exchange.
In other Nymex trading, heating oil futures lost 0.01 cents, to settle at USD 2.219 a gallon.
Natural gas lost 40.9 cents to settle at USD 6.029 per 1,000 cubic feet after the government reported that inventories had grown by 64 billion cubic feet last week, slightly more than the 62 billion cubic feet analysts had expected.At the pump, meanwhile, gas prices slipped 0.7 cents, overnight to a national average of USD 2.808 a gallon.
Oil had made a new high in an intraday trading session hitting above USD 80 a barrel on Wednesday, but ended the day below the USD 80 mark.
Light, sweet crude for October delivery finished at a record USD 80.09, up 18 cents on the New York Mercantile Exchange (NYMEX).
The October oil contract also set an intraday record of USD 80.20 a barrel on Thursday.
In London, October Brent crude fell 28 cents, to settle at USD 77.40 a barrel on the ICE futures exchange.
In other Nymex trading, heating oil futures lost 0.01 cents, to settle at USD 2.219 a gallon.
Natural gas lost 40.9 cents to settle at USD 6.029 per 1,000 cubic feet after the government reported that inventories had grown by 64 billion cubic feet last week, slightly more than the 62 billion cubic feet analysts had expected.At the pump, meanwhile, gas prices slipped 0.7 cents, overnight to a national average of USD 2.808 a gallon.
Huge Subsripition of Power Grid
Power Grid issue charms USD 30 bn overseas subscriptions
Power Grid Corporation of India`s public issue has attracted USD 30 billion (over Rs 1,200 billion) in overseas subscriptions. The issue itself got subscribed 64 times overall. As margin money alone, the issue will bring in USD 3 billion in forex into the country, reports Business Line.
`We received subscriptions worth over Rs 1,900 billion,` said S. Subramanian, head of investment banking, Enam Securities, one of the managers to the issue. `Institutional buyers subscribed 116 times, bringing in around USD 41 billion. Three-fourths of this institutional subscription came from overseas investors.`
The retail response to the PowerGrid issue was five times, and that of high net worth individual was 40 times. It would have raised Rs 29 billion at the upper end of the price band. As many as 573.9 million shares were offered at a price band of Rs 44-52. As per data available on the NSE site, bids for 37 billion shares were received.
Domestic pension funds and provident funds were also seen to be active, perhaps for the first time in the equities market, said Subramanian. Overseas investors have also put in funds expecting a rupee appreciation, noted an investment banking official.
Reliance Petroleum had fetched around USD 25 billion in subscriptions from the institutional category (including domestic and overseas), pointed out another investment banking official.
Power Grid Corporation of India`s public issue has attracted USD 30 billion (over Rs 1,200 billion) in overseas subscriptions. The issue itself got subscribed 64 times overall. As margin money alone, the issue will bring in USD 3 billion in forex into the country, reports Business Line.
`We received subscriptions worth over Rs 1,900 billion,` said S. Subramanian, head of investment banking, Enam Securities, one of the managers to the issue. `Institutional buyers subscribed 116 times, bringing in around USD 41 billion. Three-fourths of this institutional subscription came from overseas investors.`
The retail response to the PowerGrid issue was five times, and that of high net worth individual was 40 times. It would have raised Rs 29 billion at the upper end of the price band. As many as 573.9 million shares were offered at a price band of Rs 44-52. As per data available on the NSE site, bids for 37 billion shares were received.
Domestic pension funds and provident funds were also seen to be active, perhaps for the first time in the equities market, said Subramanian. Overseas investors have also put in funds expecting a rupee appreciation, noted an investment banking official.
Reliance Petroleum had fetched around USD 25 billion in subscriptions from the institutional category (including domestic and overseas), pointed out another investment banking official.
Monday, September 10, 2007
Live News of Shares
India Infoline grant stock option under ESOP
The compensation committee of the board of directors of India Infoline, on Sep. 7, 2007, granted 140,000 employee stock options under ESOP Plan 2007 to the employees as per ESOP Scheme, 2005 of the company. India Infoline swung to a loss for the quarter ended June 2007. During the quarter, the company saw a loss of Rs 139.48 million as compared with a profit of Rs 117.10 million in the corresponding quarter of the previous year.Sales for the quarter rose 4.07% to Rs 736.55 million compared with the corresponding quarter, a year ago. Shares of the company gained Rs 58.15, or 8.59%, to settle at Rs 734.9. The total volume of shares traded was 599,304 at the BSE. (Monday)
Moser Baer steps into PC peripherals market
Moser Baer India launched its first optical disk drive (ODD) that is combo drive and writer, which also marks the company`s foray into the PC peripherals industry. The company launched this product in partnership with Taiwan based Philips and Lite-On Digitil Solutions tarp, the world`s largest OEM / ODM optical disc drive manufacturer in the name of `Moser Baer-Lite-on`.
The company plans to enter into the PC peripherals market by launching its products in five metros and create a niche for itself. At present, the PC peripheral industry in India is worth Rs 120 billion. The company with its entry into the ODD Market, plans to capture 20% market share of present market size of five lakh units per month, the company said.
Moser Bear is already a major player in the USB Drives and memory cards market. Its latest entry into PC peripherals in the form of ODDs will further help in strengthening its position in the industry. Shares of the company declined Rs 3.95, or 1.28%, to settle at Rs 304.4. The total volume of shares traded was 44,756 at the BSE. (Monday)
Gujarat NRE allotment shares on FCCB conversion
The committee of the board of directors of Gujarat NRE Coke, at its meeting held on Sep. 10, 2007, issued and allotted 3,001,186 equity shares of Rs 10 each of the company at a premium of Rs 38.04 a share pursuant to conversion option excersie by the FCCBs holders.Gujarat NRE Coke announced that it has swung to a profit for the quarter ended in June 2007. During the quarter, the company saw rise in profit to Rs 428.20 million from a loss of Rs 96.9 million.Sales for the quarter rose 2.30 to Rs 1,488.90 million compared with the corresponding quarter, a year ago. Shares of the company gained Rs 1.55, or 2.25%, to settle at Rs 70.4. The total volume of shares traded was 908,533 at the BSE.(Monday)
The compensation committee of the board of directors of India Infoline, on Sep. 7, 2007, granted 140,000 employee stock options under ESOP Plan 2007 to the employees as per ESOP Scheme, 2005 of the company. India Infoline swung to a loss for the quarter ended June 2007. During the quarter, the company saw a loss of Rs 139.48 million as compared with a profit of Rs 117.10 million in the corresponding quarter of the previous year.Sales for the quarter rose 4.07% to Rs 736.55 million compared with the corresponding quarter, a year ago. Shares of the company gained Rs 58.15, or 8.59%, to settle at Rs 734.9. The total volume of shares traded was 599,304 at the BSE. (Monday)
Moser Baer steps into PC peripherals market
Moser Baer India launched its first optical disk drive (ODD) that is combo drive and writer, which also marks the company`s foray into the PC peripherals industry. The company launched this product in partnership with Taiwan based Philips and Lite-On Digitil Solutions tarp, the world`s largest OEM / ODM optical disc drive manufacturer in the name of `Moser Baer-Lite-on`.
The company plans to enter into the PC peripherals market by launching its products in five metros and create a niche for itself. At present, the PC peripheral industry in India is worth Rs 120 billion. The company with its entry into the ODD Market, plans to capture 20% market share of present market size of five lakh units per month, the company said.
Moser Bear is already a major player in the USB Drives and memory cards market. Its latest entry into PC peripherals in the form of ODDs will further help in strengthening its position in the industry. Shares of the company declined Rs 3.95, or 1.28%, to settle at Rs 304.4. The total volume of shares traded was 44,756 at the BSE. (Monday)
Gujarat NRE allotment shares on FCCB conversion
The committee of the board of directors of Gujarat NRE Coke, at its meeting held on Sep. 10, 2007, issued and allotted 3,001,186 equity shares of Rs 10 each of the company at a premium of Rs 38.04 a share pursuant to conversion option excersie by the FCCBs holders.Gujarat NRE Coke announced that it has swung to a profit for the quarter ended in June 2007. During the quarter, the company saw rise in profit to Rs 428.20 million from a loss of Rs 96.9 million.Sales for the quarter rose 2.30 to Rs 1,488.90 million compared with the corresponding quarter, a year ago. Shares of the company gained Rs 1.55, or 2.25%, to settle at Rs 70.4. The total volume of shares traded was 908,533 at the BSE.(Monday)
Sunday, September 9, 2007
Indian stocks climb for third week
Indian stocks climbed for the third consecutive week paced by power, cement, pharma and realty stocks. Continued inflow of funds by overseas and domestic investors also fuelled this rally.
India`s second largest power producer by market value, Reliance Energy jumped 9.11% during the week to Rs 850.4 on media reports that claimed the company is planning to hive off its engineering procurement and construction division into a new company.
NTPC (National Thermal Power Corporation), India`s biggest power producer, gained 7.90% to Rs 187.05 in the week after the company inked memorandum of understanding (MoU) to form special purpose vehicle (SPV) to secure thermal coal from outside India.
Over the week, Sensex gained 271.82 points, or 1.77%, to 15,590.42, while Nifty climbed 45.5 points, or 1.02%, to 4,464. However, on Friday the markets fell marginally. Market expert, K. Seshadri said, On Friday markets have closed without much damage to the steady rise of the Sensex from 15319 levels of the previous week to 15,590. That said the technical formation suggests the possibility of a decline, possibility with a lower opening on Monday. In fact the index has established a base at 15,370, which could serve as a launching pad for a further rise upwards.
Overseas investors were net buyers in equities worth Rs 21,914 million during the period of Sep 3 to Sep 6. As per the provisional figures overseas investors were net buyers in equities worth Rs 3,846.8 million on Sep 7. On the other hand, Indian mutual funds were also net buyers in equities to the tune of Rs 7,076 million during the same period.Inflation in India has declined to about 16-month low at 3.79% for the week ended August 25, compared to 3.94% in the previous week.
UltraTech Cements and Grasim Industries led the advances among cement makers during the week. India`s second-largest cement maker, UltraTech Cement surged by 8.38% to Rs 997.5 over the week after the company reported rise in of 12% in sales in the month of August compared with previous year.
Grasim Industries, the nation`s third biggest cement maker, jumped 7.87% during the week to Rs 232.05. Ambuja Cements, the fourth biggest, gained 4.83% to Rs 139.9 in the week, while the largest cement maker, ACC rose 2.01% to Rs 1,088.95.
India`s third largest drug makers, Cipla pushed pharma stocks higher during the week. Cipla gained 8.34% over the week to Rs 180.6, after investors felt that drop in share price of the company during year was excessive to its earnings potential.
Another leading drug maker, Sun Pharmaceuticals jumped 8.76% to Rs 1,010.85 during the same period.
Among the other gainers, DLF, India`s largest real estate developer, which gained 5.10% in the week to Rs 620.1, while another major player, Unitech rose 4.61% to Rs 248.65.
India`s second largest power producer by market value, Reliance Energy jumped 9.11% during the week to Rs 850.4 on media reports that claimed the company is planning to hive off its engineering procurement and construction division into a new company.
NTPC (National Thermal Power Corporation), India`s biggest power producer, gained 7.90% to Rs 187.05 in the week after the company inked memorandum of understanding (MoU) to form special purpose vehicle (SPV) to secure thermal coal from outside India.
Over the week, Sensex gained 271.82 points, or 1.77%, to 15,590.42, while Nifty climbed 45.5 points, or 1.02%, to 4,464. However, on Friday the markets fell marginally. Market expert, K. Seshadri said, On Friday markets have closed without much damage to the steady rise of the Sensex from 15319 levels of the previous week to 15,590. That said the technical formation suggests the possibility of a decline, possibility with a lower opening on Monday. In fact the index has established a base at 15,370, which could serve as a launching pad for a further rise upwards.
Overseas investors were net buyers in equities worth Rs 21,914 million during the period of Sep 3 to Sep 6. As per the provisional figures overseas investors were net buyers in equities worth Rs 3,846.8 million on Sep 7. On the other hand, Indian mutual funds were also net buyers in equities to the tune of Rs 7,076 million during the same period.Inflation in India has declined to about 16-month low at 3.79% for the week ended August 25, compared to 3.94% in the previous week.
UltraTech Cements and Grasim Industries led the advances among cement makers during the week. India`s second-largest cement maker, UltraTech Cement surged by 8.38% to Rs 997.5 over the week after the company reported rise in of 12% in sales in the month of August compared with previous year.
Grasim Industries, the nation`s third biggest cement maker, jumped 7.87% during the week to Rs 232.05. Ambuja Cements, the fourth biggest, gained 4.83% to Rs 139.9 in the week, while the largest cement maker, ACC rose 2.01% to Rs 1,088.95.
India`s third largest drug makers, Cipla pushed pharma stocks higher during the week. Cipla gained 8.34% over the week to Rs 180.6, after investors felt that drop in share price of the company during year was excessive to its earnings potential.
Another leading drug maker, Sun Pharmaceuticals jumped 8.76% to Rs 1,010.85 during the same period.
Among the other gainers, DLF, India`s largest real estate developer, which gained 5.10% in the week to Rs 620.1, while another major player, Unitech rose 4.61% to Rs 248.65.
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