Markets: Q2 results of Index heavyweights next week
Mumbai: At least six index heavyweights are expected to announce earnings for the quarter ending September. These companies, from various sectors, are Tata Steel, HDFC, Reliance Industries, Hindustan Lever, ONGC, Tata Motors.

Tata Steel is expected to record a massive rise in its net profit, on the back of firm steel prices in the domestic as well as export markets, a robust core business growth, improvement in margins and the quality of assets. The company is also expected to report an increase in sales volume. The company is scheduled to announce its second-quarter 2003 results on October 29, 2004.

India's largest oil and natural gas explorer ONGC is expected to record a decent rise in its net profit, with crude prices hitting historic highs. There could be some downside, depending on whether the company would have to take a higher share of LPG/kerosene losses, since the sharing formula is yet to be decided (i.e. whether upstream will take 33% of 50% of the total industry loss). The company is scheduled to announce its second quarter 2004 results on October 28, 2004.

Reliance Industries, India's largest refining and petrochemical company in private sector, is expected to record a massive rise in its net profit, driven by strong refining as well as petrochemical margins. The company is scheduled to announce its SQ 2004 results on October 25, 2004.

Tata Motors, India's largest truck manufacturer, is likely to record an impressive rise in net profit aided by strong volume expansion. The company's M&HCV volumes have continued to witness strong growth in 2QFY05.

HDFC, India's leading housing finance company in terms of market capitalization, is likely to post a decent growth in its net profit, driven by stable margins and good business growth. The company is scheduled to announce its SQ 2004 results on October 25, 2004.

Hindustan Lever Ltd, India's leading fast moving consumer goods (FMCG) company is again likely to disappoint the market by posting lower profits, led by poor demand in the consumer sector and continuing margin pressure on HLL, through price cuts in detergents. The company is scheduled to announce its Q2 2003 results on 28 October.
Back to News Review index page  

SAT upholds Sebi order barring Hinduja TMT
Mumbai: The Securities Appellate Tribunal (SAT) has upheld an important order passed by capital market regulator Securities and Exchange Board of India (Sebi) barring Hinduja TMT from acting as intermediary.

Sebi had charged Hinduja TMT with helping its client Subhash Project and Marketing Ltd (SPML) illegally subscribe to its rights issues, and ordered it not to deal in securities as an intermediary for two years.

SPML had made two simultaneous, but not linked, rights issues. The issue opened for subscription on October 6, 1995 and closed on November 6, 1995. Hinduja Finance Corporation Ltd (HFCL), now renamed Hinduja TMT, was the lead manager to the rights issues with pre-issue responsibility, which included capital structuring, drafting of the offer document, marketing of the issue, etc. HFCL had also given a standby underwriting commitment to SPML for 8,00,000 equity shares.

Sebi in its order said that there were serious complaints against HFCL which did not act with responsibility as a lead manager.

Some of the allegations were: HFCL submitted applications after the closure date and withdrew them thereafter, and it charged underwriting commission of Rs2.24 crore for procurement of 8,00,000 shares which is higher than the permissible limit.

There was also a reference from Income Tax Authority (ITA) on the issue, after which Sebi initiated investigations in the scrip of SPML.

Sebi said that HFCL had given applications to the tune of Rs 4 crores to the company, which was deposited with the bankers to the issue only after the closure of issue. This was aimed at meeting the shortfall in subscription and to allow SPML time to procure subscription from other sources.

Once SPML managed to fill the shortfall in subscription by bringing in applications after closure date from its associates and family members, the appellant withdrew the applications. On these allegations, a show-cause notice was issued.
Back to News Review index page  

FIIs zeroing in on mid-caps
Mumbai: Foreign institutional investors (FIIs) are increasingly expanding the list of investible scrips to include mid-cap stocks as they find value plays in this segment. FII investments in mid-cap stocks have increased significantly in the last three months.

FIIs are also significantly getting into the IT sector - the sector has remained relatively unaffected by the increase in oil prices.

Analysts say India has also been less impacted than most other countries by the rise in crude prices since the country sources most of its requirements from Dubai, where the increase in prices has been lesser than in the US. Arab crude is still ruling at $37 per barrel against Brent crude, which peaked at $55.35 per barrel last week.

Cement is another sector where FIIs are betting on - again they have largely ignored the blue-chips among them and a significant portion of their allocations has gone into the second-rung stocks.
Back to News Review index page