Steel sector shines, reflects on the bourses
Mumbai: The steel sector gained on Tuesday with most of the steel stocks shining on the bourses. Dealers were quoted as saying that foreign institutional investors were heavy buyers at the counters of Tata Steel and SAIL. Sustained buying took the Tata group steel-maker to its year-high of Rs 308.95 on the Bombay Stock Exchange. However, it closed lower at Rs 304.10, 4.32 per cent higher than its previous close.

While the volume touched 1.79 crore on the National Stock Exchange, it stood near 85 lakh on the BSE. Similarly the SAIL stock was bid up to Rs 42.60 in intense trading, but closed lower at Rs 41.40 on the NSE. It was still 4.28 per cent higher than its previous close. The volume burgeoned to more than 10 crore shares on the NSE. More than four crore shares were traded on the BSE too.
Back to News Review index page  

Firm freight rates help shipping stocks to sail smoothly
Mumbai: With the global freight market continuing to firm up since the second half of last fiscal, stocks of the shipping companies have been on an upswing on the stock exchanges since April this year, reports suggest. With most of the shipping companies, including Shipping Corporation of India (SCI), Great Eastern Shipping, the largest fleet owner in the private sector, Essar Shipping and Mercator Lines, reporting handsome increases in their net profits in the current fiscal, stocks of these companies have reflected an upswing.

Among the shipping stocks that have provided the best returns is Mercator Lines, which returned over 600 per cent since April. The stock price of the company has increased from Rs 22.35 on 1 April to today's closing price of Rs 166, a gain of 643 per cent. The SCI stock has gained 175 per cent from Rs 51.25 to Rs 140.85; Essar Shipping increased by 235 per cent from Rs 5.05 to Rs 16.95; GE Shipping jumped 129 per cent from Rs 37.80 to Rs 86.60 and Varun Shipping gained from Rs 9.20 to Rs 14.71, a rise of 60 per cent.
Back to News Review index page  

ICICI Bank benefits from FII interest
Kolkata: The ICICI Bank stock shot up on Tuesday on reported FII buying. The stock closed 6.5 per cent up at Rs 227.60 (Rs 212), after touching the day's peak at Rs 231.35, a 52-week high, on the BSE with a traded quantity of 13.86 lakh shares (5.62 lakh shares). On the NSE, it attracted a volume of 30.44 lakh shares (12.68 lakh shares), much higher than the September daily average of 15.46 lakh shares.

Ketan Thacker of Anagram Stockbroking was quoted as saying that the trigger for the stock was yesterday's 9.1 per cent jump in ICICI Bank ADR, a year high at the NYSE. The NYSE spurt followed the hybridinvestor.com President, Scott Bleier's recommendation of the stock on a morning TV show. Merrill Lynch also said that the bank's retail loans could hit 53 per cent of the loans in FY-05. Some US analysts were said to be bullish about its profit margins in the coming quarters.
Back to News Review index page  

SEBI modifies guidelines for MF funds in debt
Kolkata: The Securities and Exchange Board of India (SEBI) has modified the guidelines related to investment in debt securities by mutual funds in order to include instruments issued by public bodies and institutions, ones that are guaranteed by the central or any state government. Investment limits prescribed by SEBI (Mutual Fund) Regulations, 1996 will now apply to debt issued by agencies like electricity boards, municipalities and State transport corporations, provided they carry Government guarantees. Securities issued by the Government or by the Reserve Bank of India (RBI) on its behalf are at any rate exempt from such limits.

The latest SEBI move is in line with clauses 1 and 1A of Schedule VII of the 1996 regulations, which embody the prudential investment norms stipulating limits on investment in securities issued by a single issuer. A P Kurian, who heads the Association of Mutual Funds in India, was quoted as saying that the regulator's stance will help fine-tune a norm that already exists. "In effect, this widens the basket."
Back to News Review index page  

UTI Retirement Benefit Plan offers 1:4 bonus
Mumbai: UTI Retirement Benefit Plan (UTI RBP) has declared its first-ever bonus at 25 per cent, or one unit for every four units of face value Rs 10 held. The record date for the declaration of bonus is 24 October. The plan has, in the past, declared two dividends at 11.5 per cent and 10 per cent in June 2000 and June 2001 respectively. UTI RBP, an open-end pension fund, had an NAV of Rs 20.58 as on 3 October.

It has given a return of 10.56 per cent since inception and 21.23 per cent over the past one year. It invests not less than 60 per cent in debt and not more than 40 per cent of its corpus in equity instruments, it said. The objective of the plan, which is eligible for income tax rebate, is to provide pension to investors particularly self-employed persons after they attain the age of 58 years, in the form of periodical cash flow at regular intervals.
Back to News Review index page  

Rupee clocks smart gains
Mumbai: The rupee gained 11 paise against the dollar on Tuesday to close at 45.32/33. On Monday, the domestic currency closed at 45.4350/4400.
Back to News Review index page