Market Analysis: Weekly roundup till Oct 2

With the led of foreign fund in the India market, both Sensex and Nifty gained more than 10 percent in the Sep month alone.

Sensex gained 2.0 percent and closed at 20,445 during the week, while Nifty ended at 6143, up by 2.1 percent, over its previous weekend"s close and resulting in huge foreign money in the marker.

The BSE Metal and Realty indices were the top gainers by 5.2 percent and 4.9 percent, and where as the top losers during the week were BSE Oil & Gas, down by 0.4 percent and 0.2 percent.

Going Forward

Benchmark indices that the market may hit record levels this week. As per the industry experts, markets are driven by foreign fund flows and it is quite difficult to guess how markets will be in the near term.

Corporate

BHEL, in expansion mode

In order to enhance the company's capacity, BHEL is open to all possible opportunities such as brown-field, green-field, acquisition and other joint venture.

The Trichy unit, which manufacturer"s boilers, is exploring possibilities to set up a green-field facility in Western India.

This unit presently has Rs 1,300 crore expansion plan and it will be on till 2012.

The proposed investment includes Rs 390 crore green-field facilities at Tirumayam, near Trichy, which is expected to commence production in Nov 2011.

The other possible green field facility is for tubes and pipes.

L&T infra now more in to road projects

Larsen & Toubro will make L&T Infrastructure Development Projects (L&T IDPL), a wholly-owned subsidiary by buying 14 percent stake from IDFC Private Equity and JP Morgan Chase for at least Rs 740 crore.

L&T"s build-operate-transfer (BOT) assets in roads & bridges, railways, airports, and ports are housed under L&T IDPL.

It has combined assets of Rs 33,500 crore, excluding the Seawoods project in Navi Mumbai, which is yet to get all necessary approvals.

Dharma Port, an venture between L&T and Tata Steel, is L&T IDPL"s key asset in the port sector.

L&T IDPL owns 75 percent stake in L&T Urban Infrastructure, which is developing over 30 million square feet of commercial and residential space.

Satyam manages to reduce it losses

Mahindra Satyam which faced a huge loss of 8000 crore in 2008-09, managed to reduce its lose for 2009-10.

In FY 2009-10 revenues down by 40 percent to Rs 5,481 crore and its loss of Rs 124.6 crore for the FY2010.

There is substantial mixed expenditure of Rs 2700 crore in the balance sheet that has not been written off, and about Rs 1200 crore of advance claims from 37 companies.

The company has a enough cash balance to maintain its operations.

(An article by DAS CAPITAL MANAGEMENT & ADVISORS Pvt Ltd)