Monday, January 12, 2009
 Market watch
Movers and shakers - I
Movers and shakers
Price, Market Cap and Volume as on 02 January 2009 with variation over the fortnight*
Company Sector Group Mkt cap
(Rs cr)
Prom Stk (%) Fortnight
Dly Avg Vol
Fortnight Closing H/ L FV (Rs) Price (Rs) Var (%)
GMR Infrastructure Infrastructure Dev & Opera A 15548 73.28 2078318 86/64 2 85 19
Promoter and holding company of the Bangalore-based infrastructure developer GMR Holdings purchased 3.87 lakh equity shares of face value Rs 2 each through open-market purchase in the normal segment on stock exchanges on 24 December 2008. Consequently, the promoter now holds 74% in GMR Infrastructure. Construction stocks were in demand this fortnight on the macro environment showing signs of improvement in the form of falling inflation, cuts in interest rates and cooling of commodity prices.
Reliance Communication Telecomm-Service A 51673 66.12 3793317 254/200 5 250 16
India’s second largest listed telecom services provider by sales spent Rs 10000 crore to expand its GSM services to cover all of India six months ahead of its original plan, and would widen its span in a few months to 24,000 towns from 11,000.
Ranbaxy Laboratories Pharmaceuticals A 10520 34.74 561720.1 256/212 5 250 15
India’s largest drugmaker by sales is planning to sell three plants in China, Malaysia and Vietnam as part of a strategy to rationalise its business portfolio and cut costs. Ranbaxy Laboratories has reportedly begun the process of looking for buyers for the three plants, which could be valued at around US$ 25-US$ 30 million. The three plants contributed a small part of the company, overall US$1.6 billion annual revenue.
Cairn India Crude Oil & Natural Gas A 32661 64.76 1242384 179/149 10 172 13
The Mumbai-based oil explorer made an oil and gas discovery near its existing field in the western Indian state of Rajasthan. Cairn is yet determine the reserves but the well had a flow of 500 barrels of oil per day and 0.4 million standard cubic feet of gas a day during a testing phase. Meanwhile, an uptrend in global crude oil prices also aided shares of oil producing companies such as Cairn India.
Suzlon Energy Capital Goods-Elec Eqpt A 9671 65.83 17789722 71/56 2 65 11
World’s fifth largest wind turbine maker by sales sold a 10% equity stake in gearbox designer Hansen Transmissions to a London-based investment firm Ecofin to fund growth plans. The transaction will bring down Suzlon’s stake in Hansen to about 61.28%. Although, Suzlon did not give the financial details of the stake-sale, some reports suggested the transaction could be worth around Rs 600 crore.
Power Finance Corporation Finance A 15627 89.78 234065.3 138/122 10 136 10
The New Delhi-based state-run power project financer reportedly raised Rs 1585 crore by selling 18-month bonds at a coupon rate of 8.7%. The coupon payments will be half-yearly.
NMDC Mining & Mineral products A 74576 98.38 120135 201/152 1 188 10
The Hyderabad-based state-owned miner reportedly proposing setting up a 10-million-tonne integrated steel plant in Karnataka if the state government provides it with adequate iron ore deposits and infrastructure support.
Nestle India FMCG A 14232 61.85 10300.22 1490/1345 10 1476 9
The New Delhi-based FMCG products maker reportedly planning a new image for its iconic noodle brand, Maggi, to be advertised as a healthy food for the entire family. Nestle may either reposition the 25-year-old product as a food for the entire family or heavily promote its dietary advantages to comply with the parent company’s guidelines.
Satyam Computer Service IT - Software A 11964 8.61 19266300 186/115 2 178 9
Some big corporates including the Anil Dhirubhai Ambani Group, Mahindra British Telecom, Larsen & Toubro and Infotech among others have reportedly teamed up with some leading private equity players like Texas Pacific, General Atlantic Partners and Carlyle for buying a stake in India’s fourth largest software exporter by sales. Given that the Satyam Computer Service stock is trading at an attractive valuation and that the company is sitting on cash reserves of over US$ 1 billion, both private equity firms and information technology majors are keen to pitch for a stake in the firm.
Hindustan Zinc Non Ferrous Metals A 15046 64.92 19163.33 368/321 10 356 7
India’s largest zinc producer by volumes hiked prices of zinc, used in producing galvanised steel, by Rs 1800, or 2.9%, to Rs 63,400 a tonne. Hindustan Zinc, however, kept the lead rates, used in batteries, rubber and paint industries, at the previous fortnight’s level of Rs 70500 per tonne.
MMTC Trading A 100732 99.33 1530 23500/18500 10 20146 5
The New Delhi-based state-run miner will seek shareholders’ approval for its proposed equity investment of Rs 85.85 crore in a joint venture company for setting up a multi-services special economic zone with Maytas Properties and Maytas Infra. Further, MMTC seeks shareholder approval to invest Rs 22.50 crore in the United Stock Exchange of India, a special purpose vehicle created by Jaypee Capital Services, for setting up a currency future exchange. MMTC fixed 11 February 2009 as the last date for submission of postal ballots.
Unitech Construction A 7533 74.56 27145157 49/34 2 46 5
The telecom unit of India’s second largest realtor by market capitalisation received start-up spectrum in four more service areas: Assam, Rajasthan, North East and Jammu & Kashmir. Of the total 22 services areas in the country, Unitech has a spectrum in 20 circles to start its services.
Jindal Steel & Power Steel A 14577 58.6 167762.2 970/820 1 942 5
The Haryana-based power producer and provider of iron ore and coal mining services it will invest Rs 10000 crore in four years to set up a thermal power plant in Chhattisgarh. The project, comprising four 600-megawatt units, is being set up by subsidiary Jindal Power.
Tata Power Company Power Genera & Distribu A 17054 33.3 105090.3 792/717 10 770 5
The Mumbai-based private sector electricity generator reportedly chose not to bid for the Rs 16000-crore ultra mega power project in Tilaiya in Jharkhand even as Reliance Power, Lanco Infratech and NTPC submitted their technical bids late December 2008. As per reports, the current economic situation has made it difficult for companies to raise money for large projects and bidding for the Tilaiya project would have strained its balance-sheet.
ABB Capital Goods-Elec Eqpt A 10378 52.11 65049.22 499/420 2 490 4
Life Insurance Corporation of India increased its equity stake in the Bangalore-based engineering firm by about 2.02%. The country’s largest insurer bought 4.27 million equity shares in ABB, raising its total equity stake in ABB to 14.08%, making the insurer one of the largest shareholders in the engineering company.
State Bank of India Banks A 84439 59.41 981530.1 1349/1208 10 1330 3
India’s largest commercial bank reduced its prime lending rate by 75 basis points (bps) to 12.25% from 13%. The bank also reduced its deposit rates by 25 bps to 100 bps across the various maturities. These rate cuts will be from 1 January 2009.
Mundra Port & SEZ Infrastructure Dev & Opera A 13246 81.3 109690.3 345/301 10 331 3
The Adani group to reportedly pump in around Rs 6000 crore over the next five years in the Gujarat-based private sector port.
Canara Bank Banks A 8042 73.17 115352.9 203/178 10 196 2
The Bangalore-based public sector lender announced reduction in its benchmark prime lending rate by 75 basis points (bps) to 12.50% from 1 January 2009 from 13.25%. Rate of interest on auto loans has also been reduced by 50 bps from 12.50% to 12%. One hundred bps is 1%.
Reliance Capital Finance A 13949 53.49 2729160 595/497 10 568 2
The Mumbai-based financial services firm reportedly to join the race to manage the pension fund of the unorganised sector under the new pension system for which the regulator Pension Fund Regulatory and Development Authority (PFRDA) invited applications on 26 December 2008. Meanwhile, Reliance Money, part of Reliance Capital, and Financial Technologies India are reported to be exploring the option of setting up their own equity exchanges in India. If approved, these will be the first stock exchanges after 1994 when the NSE was set up.
Punjab National Bank Banks A 16771 57.8 135631.8 540/478 10 532 2
The New Delhi-based state-run bank reduced its benchmark prime lending rate by 50 basis points (bps) from 12.5% annually to 12% from 1 January 2009. Additionally, Punjab National Bank also reduced interest rates on various retail lending schemes like floating rate housing loans and car and education loans by 50 bps. The interest rates on fixed rate housing loans have been reduced up to 175 bps.
Power Grid Corporation of India Power Genera & Distribu A 35523 86.36 1166218 85/79 10 84 1
The New Delhi-based state-owned power transmission company reportedly set to get part of the additional US$ 3-billion loan the World Bank will provide to India by July 2009.
Maruti Suzuki Automobile A 15688 54.21 334864.2 570/484 5 543 -1
Sales of India’s largest passenger carmaker by sales declined 9.95% to 56,293 units in December 2008 as against 62,515 units in December 2007. Domestic sales were down 10.91% to 52,029 units compared with 58,401 units. Exports, however, grew 3.65% to 4,264 units as against 4,114 units.
* Only for stocks with market cap above Rs 7500 crore. Compiled by Abhishek Panchal

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