Number
hopes help CESC stock go up
Kolkata: With a negative price-earning ratio, the
CESC stock on Wednesday smartly moved up by 10 per cent
on the major bourses, a financial daily has reported.
According to dealers, the stock is being cornered by a
section of market operators. However, brokers are divided
in their opinions regarding the reasons for such accumulation.
"Over the last couple of months the stock has moved
up on various unconfirmed positive news including stake
sale," said a dealer at an institutional brokerage.
"The talk of Reliance being interested in the company
is the latest in the series of unconfirmed news that have
been doing the rounds recently," said Devarsh Vakil
of Anagram Stockbroking. According to him, expectation
of a better result in the second quarter is a more plausible
driver of the stock.
However, analysts feel that at today's closing price of
Rs 82.60 on the BSE, the stock traded beyond its known
fundamentals. On the NSE, the counter finished at Rs 82.40
with a traded quantity of 6.97 lakh shares. Market observers
pointed out that debt restructuring is the key to the
company's future. "Huge debt burden and its servicing
cost have affected its financial health," an analyst
added. The other crucial key to the company's future prospect
was the claim for a tariff revision. However, this politically
sensitive issue, is also mired in a legal tangle. "The
capital cost of the Budge Budge thermal plant for calculating
the capital base has become a controversial subject itself
(which has a bearing on the revision of the tariff). The
West Bengal Electricity Regulatory Commission has provisionally
fixed the capital cost at Rs 2,075 crore for calculation
of the capital base, while the company claimed the cost
of the project at Rs 2,681 crore," Vakil added.
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Tata
Steel, Satyam active
Mumbai: With the market setting into a correction
mode, turnover in derivative segment on the National Stock
Exchange dipped to Rs 10,514.35 crore on Wednesday against
Tuesday's all-time high turnover figure of Rs 12,519.55
crore, say reports. As on October 21, the cumulative FII
positions, as percentage of total gross market position
in the derivative segment was 16.01 per cent. According
to NSE data, FIIs were net sellers to the tune of Rs 25.57
crore on Tuesday. Index futures: It seems like the market
is happy in booking profits ahead of Diwali; the NSE's
S&P CNX Nifty shed 12.4 points or 0.82 per cent to
1,494.10.
The near-month Nifty October futures closed the day at
1,497.65, a premium of over three points to the Nifty
spot close. The October futures had closed at 1,510.70
on Tuesday. Open interest inched up by 1.55 per cent to
26,755 contracts. The unmatched bid-ask data, however,
suggests bullish undertone as bid calls were higher than
sell side. The Nifty November futures closed above the
1,500-mark at 1,500.15 as against Tuesday's close of 1,514.35
and open interest improved to 2,402 contracts. The farther
month December futures closed at 1,505 (1,509.50). Tata
Steel was the most active future contracts on individual
securities with 16,133 contracts and Satyam Computer was
next with 13,045 contracts. Tata Steel closed higher at
Rs 342.15 (Rs 335.30) and in premium to the spot close
of Rs 340.85.
Open interest, however, slipped by six per cent to 5,577
contracts, signalling that investors are closing positions.
The unmatched bid/ask side also indicates a negative signal
for the counter as sell side was higher compared with
buy calls. The near month Satyam October futures crashed
5.45 per cent to Rs 278.70 (Rs 294.75) ahead of the company's
second-quarter results scheduled for Thursday; the underlying
equity on Satyam closed at Rs 277.60. Open interest for
Satyam October futures improved by over eight per cent
to 5,076 contracts. The unmatched bid/ask data, suggests
bearish undertone with sell side calls outmatching the
buy side by 2.26 times.
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Rupee
a bit weak
Mumbai: The rupee on Wednesday closed a paisa weaker
at 45.34/35 in its value against the dollar down from
Tuesday's close. There was the usual supply of greenbacks
from FIIs and NRIs which took the rupee as high as 45.29
intra-day at which the central bank was seen sucking away
dollar liquidity. Soon Delhi-based banks started buying
dollars on behalf of a corporate. The dollar buying took
the rupee to as low as 45.3950 after which it recovered
to close a few paise higher.
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