Enkei Castalloy advances on stock-split proposal

Enkei Castalloy advanced 3.62% to Rs 330.50, after it scheduled an EGM for 30 October, to consider a stock-split.  Each equity share of face value Rs 10 will be sub-divided into 2 of face value of Rs 5 each.

The counter clocked a volume of 1,540 shares on BSE. Generally, stock-split helps to increase liquidity in the counter. The company's average yearly volume on BSE is a thin 3,876 shares.

The stock was also admitted to trading on National Stock Exchange (NSE) with effect from 3 October 2006.

The stock witnessed a steady rally in the past couple of months on the back of sustained buying. From Rs 285.55 on 24 August 2006, it surged consistently to Rs 321.90, by 6 October 2006. Therafter, it slipped a bit to Rs 318.95, by 9 October 2006, on profit-booking.

The company's foreign collaborator Enkei Corporation holds 38% stake, while promoters and public own 38% and 13.36% respectively, as of March 2006.

Enkei Castalloy posted a net profit of Rs 2.70 crore for the quarter ended 30 June 2006, compared to Rs 1.99 crore for the quarter ended 30 June 2005. Total Income stood at Rs 43.65 crore (Rs 21.74 crore).

Enkei Castalloy is a Pune-based auto-ancillary company. It is one of India's leading manufacturers of aluminium alloy gravity and low-pressure die-castings for automotive manufacturers in India, and exports to US and Europe.

Its domestic customer base includes Bajaj Auto, Hero Honda, Maruti Udyog, Tata Motors, TVS Motors and Yamaha Motor (India) among others.

Source: Capitalmarket

US stocks end stronger on Google-YouTube deal

US stocks end stronger on Google-YouTube deal. North Korea's nuclear test causes concern, trading light. US technology stocks gained on Monday ahead of an announcement by Web search company Google Inc., that it will acquire online video service YouTube Inc., offsetting concerns surrounding North Korea's nuclear test.

Google shares rose to their highest in more than five months ahead of the Internet search company's announcement after the closing bell that it would pay $1.65 billion in stock for YouTube.

The Dow Jones industrial average gained 7.60 points, or 0.06%, to close at 11,857.81, after climbing to an intraday record at 11,872.94 during the session. The Standard & Poor's 500 Index added 1.08 points, or 0.08%, to finish at 1,350.66. The Nasdaq Composite Index rose 11.78 points, or 0.51%, to end at 2,311.77.

Monday's nuclear test by North Korea sharply escalated world concerns over the nation's nuclear programme.

Shares of Google rose 2%, or $8.50, to $429 during the regular session and were the top-weighted gainer in both the S&P 500 and the Nasdaq. In electronic trading after the bell, Google's shares rose to $432, after initially slipping on the announcement.

Besides Google, some of the S&P 500's top-weighted gainers were megacaps such as International Business Machines Corp., up 1%, or 86 cents, at $ $83.92, and Caterpillar Inc., up 1.3%, or 85 cents, at $68.90.

Trading was light on the NYSE, with about 1.27 billion shares changing hands, well below last year's daily average of 1.61 billion, while on Nasdaq, about 1.55 billion shares traded, below last year's daily average of 1.80 billion.

Advancing stocks outnumbered declining ones by a ratio of 5 to 3 on the NYSE and by 3 to 2 on Nasdaq.

Bharti Airtel may gain on strong subscription growth in September 2006

Bharti Airtel added 1.41 million GSM users in September 2006 boosting its customer base to 27.061 million. State-run Bharat Sanchar Nigam's user base grew to 20.936 million as it added more than 8,76,000 million new GSM users in the month just gone by.

Hero Honda on Monday launched an all-new model of its 150-cc motorcycle CBZ, pricing the base variant at Rs 54,500 (ex-showroom Delhi). The company said it would follow the new 'CBZ X-treme' with another offering in the premium segment that could be out somewhere next fiscal.

Bilcare Limited, a pharma company in the drug discovery-to-market value chain, has acquired DHP Limited, a UK-based clinical trials service provider. DHP specializes in the manufacture, import, storage and distribution of phase I-IV Investigational Medicinal Products and named patient/compassionate-use medicinal products. This includes a full range of Qualified Person (QP) services to support product lifecycles, from design through reconciliation and destruction. DHP also provides GMP/GCP compliant services. Its clients include multinational pharmaceutical and biotech companies, leading Contract Research Organizations, publicly funded Medical Research Council (MRC) clinical research teams, plus National Health Service (NHS) trusts and hospitals.

Gati makes its debut on NSE today.

As per block deals data on BSE, an FII sub-account sold 1.3 lakh shares of Clutch Auto at Rs 130.18 on Monday (9 October). Foreign fund Macquarie Bank bought 5.3 lakh shares of REI Agro at Rs 123. ICICI Bank bought 8.75 lakh shares of TV Today from Templeton Mutual Fund at Rs 75 per share. On 6 October, Birla Mutual Fund bought 3 lakh shares of RPG Transmission at Rs 149

Shree Cements, Sintex Industries and Tata Sponge, Tinplate Company and Shrenuj & Company will unveil Q2 September 2006 results today.

Quick 15% Profit in this Stock in Short Term

Scrip: McDOWELL
Present Price - Rs.624
Projected Price - Rs.710

McDowell is the flagship company of the UB group's spirit business. The company has an. Buy at current levels and at all advantage of a strong presence in every flavoured segment through its portfolio of over 60 brands sourced through a large and strategically located manufacturing network comprising of own distilleries and contracted sources of supplies. Consolidation of capacity is a big positive for Mcdowell and the UB group, in comparison with its international peers, has emerged as the biggest player in this fast growing market. On the technical front, one can notice in the adajcent daily chart that the stock is in a steady uptrend and is in a consolidation mode before the next strong upmove beginsdeclines. Add aggressively once the stock crosses the level of Rs.650. 

BUY Calls from Ashwani Gujral and Rajat Bose

Ashwani Gujral:

Buy Micro Technology with stop loss of Rs 180 for a target of Rs 230/280
Buy Colgate with stop loss of Rs 360 for a target of Rs 420/465

Rajat Bose:

Buy Dewan Housing (Rs 79.95) with a stop loss below Rs 78.75 for a target of Rs 84 and Rs 88.75
Buy ITI (Rs 62.70) once it crosses Rs 63.45 with a stop loss below Rs 62.40 , keeping a target of Rs 67.40

Asian recovery, Q2 results expectations may lift domestic bourses

Asian recovery, Q2 results expectations may lift domestic bourses. A recovery in Asian markets on Tuesday, a day after their sharp fall on Monday caused by North Korea's nuclear test, will aid recovery on the domestic bourses today. Q2 results expectations will also provide support to bourses. Overall Q2 results are expected to be strong. Besides the numbers, the market will also closely watch what the company managements have to say regarding the outlook for the remaining part of the financial year.

Asian markets rebounded on Tuesday (10 October) after modest gains on Wall Street on Monday helped restore investor confidence shaken by North Korea's statement it had conducted an underground nuclear test. Key benchmark indices in Hong Kong, Japan, South Korea and Taiwan were up by between 0.3% to 0.9%. Markets in Taiwan were closed for a holiday.

US technology stocks gained on Monday ahead of an announcement by Web search company Google that it will acquire online video service YouTube, offsetting concerns surrounding North Korea's nuclear test. The Dow Jones industrial average gained 7.60 points, or 0.06% to close at 11,857.81, after climbing to an intraday record at 11,872.94 during the session. The Standard & Poor's 500 Index added 1.08 points, or 0.08% to finish at 1,350.66. The Nasdaq Composite Index rose 11.78 points, or 0.51% to end at 2,311.77.

Infosys announces Q2 September 2006 results on Wednesday (11 October 2006). Eleven brokerages have forecast between 37.7% to 43.3%, growth in Infosys' Q2 September 2006 net profit to between Rs 834.80 crore and Rs 868.50 crore, compared to Rs 606 crore in Q2 September 2005. Net sales are forecast to expand between 44% and 46.9%, to Rs 3,293.30 crore and Rs 3,370.10 crore, compared to Rs 2,294 crore, in Q2 September 2005. A section of the market also expects a little increase in earnings and revenue guidance from Infosys Technologies.

FIIs have resumed buying in the cash market after recent sales. They bought shares worth a net Rs 71 crore on Friday 6 October, the day when Sensex had lost 17 points. Their net inflow was Rs 124 crore on 5 October. Earlier, they had pulled out a net Rs 714 crore in two trading sessions between 3 October and 4 October.

As per provisional data, FIIs sold shares worth a net Rs 72 crore on Monday 9 October. In the futures & options market, FIIs were net sellers to the tune of Rs 300 crore in individual stock futures and to the tune of Rs 18 crore in index based futures, on 9 October.

Domestic institutional investors including mutual funds are sitting on a decent cash pile. Mutual funds are awaiting correction in share prices to step up buying. Meanwhile, LIC is expected to invest about Rs 10000 crore in equities in this financial year.

Report from Capitalmarket