Stock
markets still confused
Mumbai: Huge volumes coupled with narrow
price movement exemplify the state of confusion in the
major Indian stock markets. The combined turnover on the
National Stock Exchange and the Bombay Stock Exchange
was over Rs.5,500 crore compared to the average Rs.4,500
crore seen during recent times.
The Bombay
Stock Exchange index of 30 shares closed at 4,633, a drop
of 8 points from the previous close of 4,641. The National
Stock Exchange index of 50 shares closed at 1,351
a drop of 7 points.
Around 4.17
lakh shares were traded on the NSE, with the turnover
aggregating Rs.2,980 crore. On the BSE, the turnover was
Rs.2,615 crore, while 2.8 lakh shares were traded.
Bonus issue
rumours helped the Zee Telefilms scrip to shoot up. On
the BSE, Rs.377 crore worth of trading was done on Zee
alone. The stock touched an all-time high of Rs.4,255.
Software stocks such as Infosys, Mastek, NIIT, Wipro and
Satyam also gained. Other stocks to gain were Cipla, Britannia
Industries, Grasim, IPCL, Castrol and Tata Chemicals.
The
combined market capitalisation of Wipro and Infosys has
crossed Rs.50,000 crore. Infosys has a market cap of Rs.25,245
crore while Wipro's is Rs.26,558 crore.
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ABS
MD summoned by Sebi
Mumbai: The Securities and Exchange Board
of India has summoned Rakesh Agarwal, managing director
of ABS Industries, now called ABS Bayer, for a hearing
on 22 September 1999. Mr.Agarwal is accused of insider
trading in the shares of ABS Industries, prior to its
takeover by Bayer. Mr.Agarwals earlier replies
on the same issue, had failed to convince the regulator.
According
to Sebi, Mr Agarwals brother-in-law bought the shares
of ABS Industries from the open market and sold them to
Bayer Industries. Between August and October 1996, the
share price of ABS Industries went up from Rs.48 to Rs.82.
Bayer picked up a 20 per cent stake in ABS at Rs.80 per
share. After this incident, Sebi launched an investigation.
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Birla Mutuals new marketing plans
Mumbai: Birla Mutual fund has devised
a plan to discourage price undercutting by distributors
in its recently launched balanced scheme. This is to be
done by staggering the payment made to the distributor.
The
new plan works this way. The distributor will be given
some (say 0.5 per cent) part of his incentive upfront.
The remaining part (say 0.75 per cent) will be paid to
him once he brings in the funds and will also depend on
the period for which it stays in the scheme. The longer
the funds stay in the scheme, the greater will be the
incentive paid to the distributor.
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ICICI
to debut on the NYSE
Mumbai: IC will be the trading
symbol of ICICI Ltd., which is getting listed on the New
York Stock Exchange today (22 September 1999). ICICI thus
becomes the first Indian company to get listed on the
NYSE.
Trading
on the NYSE floor will begin in ICICI as soon as the final
registration is issued by the Securities and Exchange
Commission of the US. ICICI is floating an American Depository
issue to raise $315 million through the book-building
route.
The
initial price expected per ADRs is around $9.5 to $9.10.
Each ADR will represent five shares of ICICI.
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HCL
Tech may come out with IPO
Mumbai: HCL Technologies may float a
public issue in India. Sebis recent guidelines to
allow companies to divest only 10 per cent of their capital
abroad has forced HCL Technologies to drop its New York
Stock Exchange listing plans. A draft prospectus has been
filed with Sebi. The company has appointed Kotak Mahindra
as its lead manager.
The company
wants to come out with the issue by October-November 1999.
A final decision on the issue will be taken after Sebi
gives permission. The issue will be sold through the book
building route.
HCL Technologies
has an equity capital of Rs.33 crore, 82 per cent of which
is held by Shiv Nadar and other promoters. Post-issue,
the capital is expected to increase to Rs.55.5 crore.
It is headquartered in the US and has subsidiaries in
India and the Europe.
As
of 30 June 1999, HCL Technologies had a turnover of Rs.1,000
crore that includes Rs.350 turnover by HCL Comnet, HCL
James Martin and HCL Perot Systems, which are associate
companies.
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BSE
set to bar trading in 28 companies
Mumbai: Trading on 28 companies listed
on the Bombay Stock Exchange will be suspended since they
have violated the listing agreement of the exchange as
regards announcement and intimation of book closure and
record dates.
The
companies given in the alphabetical order are: Hinduja
Finance Corporation, Innovative Marine Foods, Intensive
Air Systems, Jal Hi Power Petrochem, Kakatiya Textiles,
Kandhari Rubbers, MCC Investment and Leasing, Mayur Leather
Products, Mewar Polytex, NDA Securities, Namtech Electronic
Devices, Paras Petrofils, Photoquip India, Pioneer Overseas
Finance, Primus Chemicals, RTS Power, Rapid Investments,
Rock Copco, Rose Zinc, Santosh Fine-Fab, Shez Cements,
Shiva Fertilisers, Shree Vani Sugars, Simplex Trading
and Agencies, Spartek Ceramics, Tulsyan NEC, Umi Special
Steels and Valley Abresives.
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Zee
Telefilms stock split
Mumbai: Zee Telefilms' board is to meet
on 27 September to consider splitting its shares of Rs
10 into smaller denominations.
The price of Zee Telefilms'
scrip reached an all-time high of Rs 4,255 on 21 September.
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