Sensex lifeline: high beeps and pratfalls

Sensex lifeline: high beeps and pratfalls
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First Published: Wed, Jun 17 2009. 11 05 PM IST
Updated: Wed, Jun 17 2009. 11 05 PM IST
Jayshree Tea (4.4% up)
Jayshree Tea and Industries Ltd’s shares gained 4.4% as tea prices firmed up by nearly 30% compared with last year (Rs30-40 per kg) due to shortage in March-April. India currently faces a shortage of 25 million kg. Total shortage in January-April was 70 million kg.
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Jindal Steel & Power (4.7% down)
Jindal Steel and Power Ltd was down 4.7% after it replaced Reliance Petroleum Ltd in the Nifty from Wednesday. The stock has gained nearly 25% since the announcement was made in May. Most index fund managers have already rebalanced the stock at Tuesday’s closing and no fillip was expected.
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Tata Steel (7.5% down)
Tata Steel Ltd shares fell 7.5% on the back of weak London Metal Exchange prices and news that European steel company Svenskt Staal AB (SSAB) had declined nearly 10% on forecast for a loss. SSAB fell the most since December after forecasting a operating loss of more than 1 billion kronor (Rs613 crore).
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Idea Cellular Ltd (6.5% down)
Idea Cellular Ltd fell 6.5% on poor advance tax numbers. The firm’s first quarter advance tax is Rs3 crore compared with Rs16 crore a year earlier. Of course, there has been huge speculation regarding Idea’s stake sale in the market to Axiata Group Berhad, which the company has denied.
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IL&FS Investsmart (5% up)
IL&FS Investsmart Ltd shares were up 5% after a delisting offer from HSBC. In May 2008, HSBC bought a 73% stake from E*Trade, SAIF Partners and IL&FS for Rs1,311 crore. HSBC later acquired a 20% stake, increasing its stake to 93.8%, and made an open offer at Rs200 per share.
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Wockhardt Ltd (8.2% down)
Wockhardt Ltd’s shares were down 8.2% after Apollo Hospitals said it had dropped plans to buy the company due to the premium sought by Wockhardt. Apollo Hospitals said talks halted as they did not see a strategic fit with Wockhardt. Apollo did not reach a stage to discuss financial details with Wockhardt.
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Max India Ltd (0.8% up)
Shares of Max India Ltd were up 0.8% with the firm looking to sell 23% stake in Max New York Life Insurance once foreign investment in the insurance sector is raised (Max holds a 74% stake). New York Life Insurance Co. will buy the stake at a 10% discount to fair market value.
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The Indian Hotels (9% down)
The Indian Hotels Co. Ltd’s shares fell 9% on reports that hotel occupancies were down 30% in all major cities, such as Mumbai, Chennai, Pune, Ahmedabad, Gurgaon and Hyderabad, during April and May, and this could result in revenue falling at least 40% in the current quarter.
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First Published: Wed, Jun 17 2009. 11 05 PM IST