Sensex lifeline: high beeps and pratfalls

Sensex lifeline: high beeps and pratfalls

Satyam (10.92% down)

The shares of Satyam Computer Services declined 10.92% after brokerage firm CLSA said that investors should exit this stock immediately. CLSA said there is no fundamental basis to buy Satyam at 12-14 times forward earnings when no formal financials will be known till June.

Astec LifeSciences (2.23% up)

Astec LifeSciences gained 2.23% at Rs84 on the first day of listing, against the issue price of Rs82. The company told CNBC-TV18 that the management expects sales at Rs150 crore for 2010-11 and Rs220 crore for 2011-12. It expects earning per share to be Rs11-12 for fiscal 2011.

Maytas Infra (7% down)

The shares of Maytas Infra declined 7% on market concern that the Central Bureau of Investigation’s evidence of an additional Rs4,739 crore fraud in Satyam Computer Services might affect the company. The shares of Tech Mahindra, which holds 42.7% in Satyam, declined 4.85%.

Areva T&D (5.39% up)

The shares of Areva T&D were up 5.39% on reports that Alstom and Schneider Electric had raised joint bid for Areva SA’s power-grid unit. The group’s offer is valued at around $6 billion. Areva may select a winner this week, which could trigger an open offer in the listed Indian entity.

Bajaj Hindusthan (4.53% up)

Bajaj Hindusthan gained 4.53% after the company’s board approved expansion of power generation capacity by 400MW. The new projects, which will cost around Rs1,600 crore, are expected to be completed within 20 months. With this, the group’s capacity will increase from 430MW to 830MW.

BPCL (6.88% up)

Bharat Petroleum Corp. Ltd (BPCL) gained 6.88% after a subsidiary of the firm discovered oil in a Brazilian block. Kotak Institution maintains buy rating with a target price of Rs675 and expects potential upside to their earnings estimates from a favourable subsidy-sharing scheme.

Balrampur Chini (1.2% up)

The Balrampur Chini Mills stock gained 1.2% after the firm said its September quarter standalone net profit stood at Rs42.7 crore, against Rs14.6 crore a year ago. The company’s board has proposed a dividend of Rs3 per equity share for the year ended 30 September.

MphasiS (4% down)

MphasiS declined 4% after reporting results for the quarter ended October on Tuesday. Morgan Stanley says the information technology firm’s growth rates have been eroding, from a high 15% quarter-on-quarter growth in October 2008 to 2% in October.