Market Analysis: Weekly roundup till Oct 23

Sensex gained 0.2 per cent and closed at 20,165 during the week, while Nifty ended the week at 6,066 was up by 0.1 pc over its previous weekend"s close.

During the week BSE Mid-cap index gained 1.4 pc and Small-cap index gained 0.9 pc. The BSE Healthcare and Oil & Gas indices were the top gainers among sector indices up by 2.9 pc and 2.7 pc respectively, the top losers during the week were BSE Metal and Realty indices were down by 2.7 pc and 2.2 pc respectively.

Going Forward

Investors and traders may bet on selective stocks rather than benchmark indices this week, as volatility usually increases in the week, as expiry of the October series future and options contracts on Thursday.

Investors watch Jul-Sep 2010 quarter results of the companies such as HUL, ICICI Bank, Grasim Industries, ONGC and Tech Mahindra. Investors will also watch the outcome of the Securities and Exchange Board of India"s (SEBI) board meeting on Monday evening, where the regulatory will unveil new rules on takeover of public listed firms.

The SEBI board is expected to increase the limit for triggering open offers to 25 per cent from 15 per cent, but may not go ahead with an earlier plan that envisages a mandatory offer for 100 per cent of the equity of a company by acquirer.

Corporate

IOC likely to hit street with Rs 19,000 crore FPO in Jan 2010
Indian Oil Corporation is likely to raise about Rs 19,000 crore. Half the proceeds will go to government, which will disinvest 10 per cent of IOC"s shares. In addition, IOC will issue new shares amounting to another 10 per cent of the equity capital to build new refinery units. As per the company sources, IOC is already working on the red herring prospectus internally and once the bankers appointed, they will finalize the prospectus and file it with market regulator Sebi.

Bajaj Auto net soars to Rs.682 crore
Bajaj Auto, posted a 69 pc rise in net profits for the Sep 2011 quarter. It has posted a net profit of Rs 682 crore as compared to Rs.402 crore in the same period last year. On QOQ basis, it has increased by 16 per cent from Rs 590 crore.

The net sales rose by 50 per cent to Rs 4,180 crore during the period as compared to Rs 2,793 crore same period last year. On QOQ basis, it has increased by 6 pc from Rs 3942 crore. The Company has improved the EBITDA margins to 20.7 pc from 20 pc in June quarter, 2011.

Bajaj Auto has sold 10,00,570 units of two and three wheelers in the domestic and export markets during the reporting period, a jump of 46 pc against 6,86,727 units sold in the corresponding period last year.

MOIL mulls Rs.900 capex plan
Public sector mini ratna Company MOIL Ltd. has taken up Rs.900 crore capital expenditure plan over the next 3-4 years. The Company plan to expand value-added production capacity and to enter into joint ventures with SAIL and Rashtriya Ispat Nigam Ltd. (RINL) to set up the ferro alloy plants in Chhattisgarh and Andra Pradesh.

MOIL will invest Rs 100 crore in SAIL JV and Rs.50 crore in RINL JV, apart from Rs 768 crore in mining expansion over the next 3-4 years.

Both 50:50 joint ventures with SAIL at Chhattisgarh and RINL at Andra Pradesh to set up ferro alloy plants will cost Rs 392 crore and Rs 206 crore respectively. Both the plants will produce ferro manganese and silico manganese in order to secure further potential sources of demand for our high grade manganese ore.

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