Markets recover and focus shifts from infotech
Mumbai: The see-saw movement of the indices continued as stock markets staged a recovery after a sharp fall on 6 January from a pivotal position earlier. Sentiment was firm, with institutions lending a supporting hand. Infotech stocks, however, took a backseat for the second day, mainly as a result of profit booking, and their place has been taken by cyclical and FMCG stocks.

The shares of Reliance Industries, Britannia Industries, ITC, Indian Shaving Products and some telecom cable companies were in demand. Britannia, ITC and Indian Shaving hit the upper band, while Reliance made a 52-week high. In an isolated case, Infotech company Digital Equipment reached a new 52-week high, while leader Infosys Technologies remained at the lower end of the price band for the second day.

Market sources said several funds with a concentration of infotech stocks are likely to shed them in order to maintain a balance. They may move into FMCG stocks.

The Sensex of the Bombay Stock Exchange gained 64 points to close at 5421.86. The S&P CNX Nifty also gained 21.80 points to close at 1617.60.
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BSE imposes higher special margins
Mumbai: The Bombay Stock Exchange has increased special margins on infotech and finance stocks to 50 per cent from the earlier 25-30 per cent n an attempt to control the current volatility  in these stocks. BSE president Anand Rathi said this will serve investor interests. The margins will apply to companies whose current share prices are not in conformity with their fundamentals. The special margin will apply on top of the already applicable daily margins and additional volatility margins.

The exchange has imposed a special margin on 229 stocks and additional volatility margins on 363 stocks during the first week of January. The exchange has also reduced the level of circuit breakers to four per cent and lower in the case of 142 stocks.
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Derivative trading from February
Mumbai: The Bombay Stock Exchange will commence derivative-based trading on the popular 30-stock Sensex sometime in mid-February, BSE’s president Anand Rathi said. The exchange has finalised byelaws and regulations for derivatives trading and these have been submitted to the Securities and Exchange Board of India for approval. BSE will set up an executive committee and a clearing council for the purpose.

Mr Rathi also said BSE is in talks with the Singapore Stock Exchange to offer the Sensex to that exchange for listing and trading.
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BSE, Dun & Bradstreet tie-up
Mumbai: The Bombay Stock Exchange has aligned with Dun & Bradstreet Information Services to offer a range of website products called RISC. The first product on offer will be RISC, which will be quarterly results of companies as and when they are made available to the exchange. BSE will give the information to Dun & Bradstreet for a fee. Dun and Bradstreet will add value to this information through analysis and research outputs and offer it on the net.
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No price difference for US-64
Mumbai: Unit Trust of India is doing away with the concept of a separate sale and repurchase price for its US-64 scheme, once it becomes a NAV-based scheme. UTI officials said the gap between the sale and repurchase prices of the US-64 units has been reduced to a great extent. Once it becomes NAV-based, the scheme will have a single sale/repurchase price like other UTI schemes. The difference between the two prices, which is being used to meet selling and administrative expenses, will be replaced by a suitable exit load.
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Cadila plans IPO
Mumbai: Cadila Healthcare is planning an initial public offering through the book building route. The issue size is likely to be of the order of Rs 500 crore. There will be 74.43 lakh equity shares on offer. The issue will increase the equity capital of the company from Rs 22.5 crore to Rs 29.93 crore and will reduce the holding of the promoters, the Patels, from the present 100 per cent to 75 per cent.
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