Weekly Report: Sensex up 199.14 points
Mumbai: The benchmark BSE index Sensex closed the week ended 4 February 2005 with an impressive gain of 3.1% or 199.14 points at 6617.23. The National Stock Exchange's 50 stock Nifty index ended the week under review at 2077.95 points, recording a gain of 3.46% or 69.55 points.

Among the factors contributing to the sharp up-move were a series of reforms packages announced by the government, a very strong comeback staged by foreign institutional investors, easing global crude oil prices and a rating upgrade by global rating agency Standard & Poor's on India's foreign currency.

With the Union Government allowing non-government pension funds to invest up to 5 per cent of their fresh inflow in stock markets, it is expected that around Rs20,000 crore would flow into the equity markets. Estimates put non-government pension fund assets at around Rs1.3 trillion. Also, according to a revised government data, India's GDP grew 8.5 per cent in the financial year 2003-2004.

Among heavyweights, Hindustan Lever was in great demand. The FMCG major scored a handsome gain of 8.3%, along with banking sector majors ICICI Bank, HDFC Bank and State Bank of India, closing with gains of 4.9%, 4.8% and 4.1% respectively. PSU oil and gas exploration major ONGC hardened to Rs825.90, recording a gain of over 3.6% while Reliance Industries firmed up 2.6%.

IT bellwether Infosys Technologies posted a gain of 2%. Satyam Computers and Wipro ended 1.6% and 0.5% higher than their previous week's closing levels. Among automobile stocks, Maruti Udyog rallied 3.6%. Bajaj Auto and Hero Honda gained 3% and 2.2% respectively. LML, Kinetic Motors, Ashok Leyland, Escorts, Mahindra & Mahindra, Eicher Motors, FAG Bearings, Ucal Fuels, Bharat Forge, Sundaram Fasteners, Mico, Exide Batteries and SKF Bearings ended sharply higher.

Cement stocks were buoyant with ACC ending 7.1% up, Grasim Industries and Gujarat Ambuja Cement moving up by 3% and 1.8% respectively. Mangalam Cement vaulted nearly 30%. Mysore Cement and Dalmia Cement gained 11.8% and 10.4% respectively. Ultratech Cemco, Prism Cement, Madras Cements, Chettinad Cement and India Cement also ended sharply higher.

Housing finance major HDFC moved up by around 8.3%. Metal stocks Hindalco and Tisco moved up 7.9% and 4.3% respectively. Media stock Zee Telefilms surged 3.2% while construction major Larsen & Toubro edged up 2%. Hindustan Petroleum Corporation scored a gain of 4.3%. Cigarette maker ITC slipped 4.2% following the government passing an ordinance to negate the excise relief awarded to the company earlier.

Telecom major Bharti Tele-Ventures lost 1.2% while automobile major Tata Motors ended marginally lower at Rs490.20.

Nalco, Madras Aluminium, Essar Steel, Sesa Goa, Jindal Stainless, Ispat Industries, SAIL, Saw Pipes, Jindal Iron, Jindal Steel, Gujarat Minerals, Gujarat NRE Coke and Hindustan Zinc were among the prominent gainers in the metal sector. While Gujarat Gas jumped 15.1%, Bharat Petroleum Corporation and Kochi Refineries gained more than 9% each. GAIL India, Indian Oil Corporation, Chennai Petro, IBP, Indraprastha Gas and Castrol India recorded sharp gains. Petronet LNG, Bongaigaon Refinery and Mangalore Refineries ended with moderate gains.

In the banking sector, Kotak Bank turned in a sparkling display as it netted a gain of nearly 11%. Syndicate Bank and UTI Bank moved up by over 10% each. Dena Bank, Union Bank of India, Punjab National Bank, Bank of Baroda, IDBI Bank, J&K Bank, Bank of India, Federal Bank, Bank of Rajasthan, Bank of Mahrarashtra and Andhra Bank moved up to sharply higher levels. Centurion Bank, UCO Bank, Indian Overseas Bank and Allahabad Bank also closed on the positive side, albeit with marginal gains.

FMCG stocks Colgate Palmolive, Nirma, Henkel Spic, Marico Industries, Dabur and Bata India, shipping scrips Bharati Shipyard, Shipping Corporation, Varun Shippig and G.E. Shipping and textile stocks Century Industries, Indo Rama Synthetics, Arvind Mills, Century Enka, Raymond, Bombay Dyeing, Vardhman Spinning, Mahavir Spinning and Welspun India were among the notable gainers last week. A host of stocks from sugar sector attracted sustained buying support and many of them recorded impressive gains.
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Balrampur Chini to raise Rs.113 crore
Kolkata: Balrampur Chini Mills (BCM), the single-largest integrated sugar company in the country, will raise about Rs113 crore by issuing preferential shares to two foreign investors to fund its expansion. The company's board, which met on Saturday, has also decided on a stock split. For each share of Rs10, existing shareholders will get 10 shares with a face value of Re 1.

BCM will issue 17,08,000 shares to Citicorp International Finance Corporation and 2,24,000 shares to New Vernon Bharat Ltd at Rs585 per share, 16 per cent discount to the Friday's closing price of Rs696.

Post dilution of equity, Citicorp and New Vernon will hold 7.37 per cent and 0.97 per cent stake in the company. Promoter's stake would come down to 34.19 per cent from 37.3 per cent, a company official said.

BCM plans to invest Rs400 crore to set up two greenfield sugar complexes. The expansion would be funded by the preferential issue, debt and internal accrual. BCM is setting up a greenfield sugar plant in Uttar Pradesh with capacity of 7,000 tonne crushed per day (TCD). It will also increase the crushing capacities at various existing units by 4,000 TCD. The entire project cost was around Rs200 crore.
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