Stock market slips in mid-day trading
Mumbai--After opening higher on the back of positive
Nasdaq news the Sensex slipped into the red and now stands 4.21 points lower at 3,279.96.
NIIT advanced 6.13 per cent (Rs 9.65) to Rs 167. Satyam was up 3.43 per cent (Rs 4.70) to
Rs 141.60. Infosys climbed 1.67 per cent (Rs 60.35) to Rs 3,678. Grasim was up 3.33 per
cent (Rs 10.20) higher at Rs 316.05. ACC, Gujarat Ambuja and L&T are also in positive
Zee is down 1.06 per cent (Rs 1.05) at Rs 98.25. Balaji Tele, Mukta Arts and Tips are also
in negative zone while Sri Adhikari is unchanged at Rs 59. Sterlite Optical spurted 7.3
per cent (Rs 13.35) to Rs 196.20. Aksh Optifibre was up 1.67 per cent (Rs 1.50) to Rs
91.55. Britannia fall 1.51 per cent (Rs 8.95) to Rs 585. ITC is 1.72 per cent (Rs 13.55)
lower at Rs 773.15. Nestle, HLL, Nirma and Colgate are also in the red.
At 1100 hrs the Sensex had opened 10 points higher at
3,294, following a two per cent rise on the Nasdaq yesterday, tech counters registered
gains, causing the Sensex to cross the 3,300 mark and touch a high of 3,310.80. However,
with profit booking at higher levels, it has come off its high and is now at 3,286 - a
gain of 2 points. Infosys, Satyam and NIIT are in positive zone while Zee is in the red.
Cement counter gained ground while pharma pivotals displayed divergent trends. Bajaj Auto,
BHEL, HLL, HPCL, ICICI, MTNL, Telco, Tisco, M&M and Castrol are in the green.
Reliance, Reliance Petro, Hindalco, SBI and BSES are lower.
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US-64 redemption pressure on first day
MumbaiOn the first day when the special repurchase window for redemption of
US-64 units opened, the expected rush of investors, intent of redeeming their units in
US-64 scheme, did not happen and at the end of the day, only 3,865 applications were
received covering 56.39 lakh units, the UTI said in a late evening press release.
The window opened today with a special price of Rs 10
per unit. UTI had decided to freeze sales and repurchases in US-64 on July 2. Meanwhile
the US-64 units closed Rs 0.50 higher on the NSE, at Rs 9.25, with traded volumes of
45,710 units. Though the closing price still represents a 7.5 per cent discount over the
official redemption price of Rs 10, dealers said the lack of redemption pressure reflected
in the US-64 price inching up higher.
On August 1 last year, 2,306 requests were received covering 45.66 lakh units. Similarly
on July 3, 2000, 1,571 requests were received covering 22.68 lakh units.
Unit Trust of India chairman M Damodaran said there was no redemption pressure. Earlier
there was fear over the possible surge in redemptions following UTI having paid out Rs
4,151 crore in April and May just prior to the month-long book closure.
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Proposal for 5-year
lock-in period for VSNL strategic partner
New DelhiAccording to the draft shareholders agreement for Videsh Sanchar Nigam
Ltd (VSNL) a five-year lock-in period for the strategic partner has been proposed. During
this period, the partner cannot sell its 25 per cent stake in VSNL.
The partner will have a 25 per cent shareholding and an equal representation on the board
of the company as that of the government, which will have 26 per cent stake in the
The board will have 12 members, of which the government and the strategic partner will
appoint four each.
There will be four independent directors to be nominated by both the government and the
strategic partner. The managing director will be a nominee of the strategic partner, as
long as it has the 25 per cent stake in the company. The board will have at least 10
After the expiry of the five-year lock-in period, the government can sell all or a part of
its stake to the strategic partner at the higher of the fair value or original purchase
price and in case, any equity holder wants to offload his stake, the existing shareholders
will have the first right of refusal. In case of default, the government reserves the
right to buy back shares at 50 per cent of the sale price or at a price specified by law.
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Mauritius firms to pick up
stake in Bharti Tele
New DelhiThe Bharti group promoted by the Mittals is lining up more equity
investors in its holding company, Bharti Televentures.
Two Mauritius-based investment funds Indian Continent Investments and Russel AIF
India are reported to acquire equity investments in Televentures.
Unconfirmed reports say that the Mauritian funds are picking up less than five per cent of
the stake in the company.
Besides these two funds, Seejay Cellular, a partner of Bharti group in its overseas
telecom service providing operations in Mauritius and Seychelles, is also acquiring equity
stake in Bharti Televentures.
Seejay Cellulars stake acquisition is learnt to be in the form of an equity swap
with its original equity holding in Bharti Enterprises Ltd, the earlier group holding
Bharti Televentures is learnt to be issuing fresh shares to Indian Continent Investments,
Russel AIF and Seejay to accommodate them as equity partners in the company.
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