Wednesday February 20, 01:00 PM
Weakness intensifies |
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By Equitymaster.com
Markets made further inroads into the negative territory during the previous two hours of trade as selling pressure intensified amongst index heavyweights. While selling is being witnessed across sectors, software stocks are garnering investors' interests. Selective stocks from the auto and power sectors are also witnessing buying interest. The overall market breadth is negative with losers outnumbering gainers by a ratio of 4.8 to 1 on the NSE.
The BSE Sensex is trading at 17,645 (down 430 points) while the NSE Nifty is trading at 5,148 (down 132 points). The rupee is trading at 40.00 to the dollar.
ABB announced 4QCY07 results yesterday. The company has reported 29% YoY growth in topline during 4QCY07, 39% YoY during the full year (December ending fiscal). The robust growth has been mainly led by power systems and automation products division. The EBITDA margins expanded by 0.5% in 4QCY07 and 1% during CY07 owing to lower raw material and staff costs (both as percentage of sales). The net profits grew by 45% YoY in CY07, largely aided by expansion in operating margins as other income records a decline. The board has recommended a dividend of Rs 2.2 per share for CY07 (dividend yield of 0.2%). The stock (down 5%), along with its peers BHEL (down 5%), L&T (down 3%), Siemens (SIEM.BO, news) and Voltas (each down 2%), is trading firm.
Sintex Industries is planning to invest about Rs 18 bn over the next three years for expansion of its various units. The company has acquired Zeppelin Mobile System India in 2005 and now has also chalked out plans to set up two greenfield projects in Madhya Pradesh and Himachal Pradesh for manufacturing telecom shelters, which are installed at the base of telecom towers. It plans to invest Rs 750 m in these two projects. The move is in line with the company's plans to generate Rs 2 bn from the telecom sector alone. The company for its various plans has already raised US$ 300 m through private placement and QIBs and plans to raise another US$ 300 m by way of foreign currency convertible bonds (FCCBs). Sintex is also planning to enhance the capacity of its textile division, Bharat Vijay Mills from existing 21 m metres to 29 m metres, for an estimated investment of Rs 1.3 to 1.8 bn. The company is also planning to enter high-end women shirting and upholstery and has introduced over 3,000 designs in Europe. The moves are in line with the company's objective to be a US$ 3 bn company by 2012. The stock is trading marginally higher.
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