Avaya GlobalConnect may gain on Australian acquisition

Avaya GlobalConnect on Friday said its Australian unit has agreed to buy the assets, manpower and contracts of the converged solutions division of Australia's Sirius Telecommunications. Avaya's Australian unit GlobalConnect Australia will pay Australian $ 1.2 million plus a 10% goods and services tax for Sirius Converged Solutions Division. Avaya said, it will also invest up to Rs 7.50 crore in its Australian subsidiary.

Radha Madhav Corporation said on Friday its board had approved the issue of 1 million convertible bonds at Rs 100 per share, to India Star (Mauritius). The company said it will also issue 1.8 million shares at Rs 45 per share, to a foreign investor whose name it did not reveal. The funds would be used to expand its pharmaceutical packaging business in Uttaranchal and in Daman.

Graphite electrode maker HEG said on Friday its graphite division's output will decline by 15% in September due to damage to its machinery. It could take 20 days for the machinery to become operational again, the company said in a statement. The machinery was damaged accidentally on 8 September.

Reliance Industries has raised $300 million through private placement of unsecured notes to US insurance companies.

The Wockhardt group has singed a memorandum of understanding with Maharashtra Industrial Development Corporation (MIDC) to establish a special economic zone in Aurangabad.

The board of directors of Gati has approved an allotment of 25 lakh convertible warrants to Mahendra Investment Advisors, convertible into 25 lakh equity shares of Rs 2 each, at a premium of Rs 82.60 per share, at the option of the warrant holder, within 18 months from the date of allotment.

Sensex strikes four-month high

The market recovered from a lower level after paring gains of an over 100-point surge, to above 12,100. Some auto shares pared gains and metal shares slipped into the red. The market-breadth was strong. For 1,340 shares that rose on BSE, just 815 declined. As many as 81 shares were unchanged. Gainers outpaced losers by a ratio of 1.64:1. Select side-counters surged. United Breweries (Holdings), Amex Information Technologies, Fedders Lloyd Corporation, EMA India, National Oxygen, Hercules Hoists, Shakti Pumps, Munjal Showa, ABC Bearings, Shasun Chemicals, Austin Engineering rose between 5 - 19%.

At 11:22 IST the Sensex was up 84.55 points, on 12,094. It had pared gains after an over 100-point surge, to a high of 12,114.95 by 10:32 IST, the most in four months since 18 May 2006. From this high, it had slipped to 12,074 at 11:14.

The BSE clocked a turnover of Rs 948 crore.

Metal producers eased. Hindustan Zinc shed 0.6%, to Rs 590, Nalco shed 0.4%, to Rs 202.30, and Hindalco was down 0.1%, to Rs 169.

Tata Motors shed 0.7%, to Rs 8,630.50. Car major Maruti Udyog was flat at Rs 948.50, and off an early high of Rs 957.

Software major Infosys was up 0.1%, to Rs 1,812.90, off an early high of Rs 1,825.

FMCG pivotals were in demand. FMCG giant Hindustan Lever rose 1.6%, to Rs 247.60 and cigarette major ITC rose 2%, to Rs 186.

Zee Telefilms (up 1.9% to Rs 326) firmed up in morning trade.

Index heavyweight Reliance Industries was up 0.2%, to Rs 1,143, off a level of Rs 1,149, it was hovering at in early trade.

Engineering & construction major L&T (up 1.7% to Rs 2686) advanced for the second day in a row, ahead of the record date for bonus issue. The company has set 29 September as the d-date for a liberal 1:1 bonus.

Suzlon Energy jumped 4% to Rs 1,211 after it secured an order to supply wind turbines with a total capacity of 247 megawatts capacity to Denmark's John Deere Wind Energy.

SpiceJet jumped 4% to Rs 52.30 on high early volume of 22 lakh shares on BSE. The scrip has risen sharply in the past few days following a sharp fall in global crude oil prices. Aviation turbine fuel accounts for a large portion of operating cost of airlines.

IDBI rose 2.3% to Rs 71.70 and the stock rose on high early volume of 12 lakh shares on BSE. Last week, IDBI won the bid to acquire ailing United Western Bank.

Indiabulls Financial Services gained 2.8% to Rs 397. A strong 8.3 lakh shares changed hands in the counter on BSE. Recently, Credit Lyonnais Securities Asia has included Indiabulls Financial Services in its Asia ex-Japan thematic equity portfolio. The stock, which now constitutes 3% of its portfolio, replaces AirAsia (Malaysia).

Fortis Financial Services rose 3.8%, to Rs 61.65, after the firm said it will issue 13.46 million equity shares at par, on rights basis.

Asian markets were steady-to-firm. Key benchmark indices in Hong Kong, Taiwan, South Korea and Singapore were up by between 0.8 - 3%. The Japanese stock market is closed today on account of a public holiday.

The near term major trigger for global markets is US Federal Reserve's meeting on Wednesday. The latest US data has reinforced views that the US Federal Reserve may choose to keep interest rates unchanged at its Wednesday meeting.

 

Source: Capitalmarket