Fast track
Pharma: Antidote for tech scrips
THE stock market indices plunged in the beginning of the new settlement period at Bombay Stock Exchange (BSE) on the heels of a sharp downturn in the US and European equity market indices.
Impact
Nagarjuna Fert: Unlikely to enthuse
THE proposed capital restructuring by Nagarjuna Fertilizers may not enthuse market sentiment in the stock. The company has planned to effect a 50 per cent reduction in its capital from Rs. 417 crores to Rs. 208 crores. Its shareholders would be allotted
two shares of Rs. 10 each in Nagarjuna Oil Corporation for every share held in Nagarjuna Fertilizers. The restructuring would be effective from April 1, 2000. Nagarjuna Oil is setting up a six-million-tonne refinery at Cuddalore, Tamil Nadu at a cost of
Rs. 3,840 crores. Its shares are to be listed by September. But given the fact that the company is on the starting blocks, there may not be much in the exercise to improve the valuation of the Nagarjuna Fertilizers' stock. The share trades around Rs.
14.--BL Research Bureau.
Framatome Connectors OEN: Big plans
THE stock of Framatome Connectors OEN which has recently reported good earnings for the January-March quarter may show firm trends in the wake of a merger proposal. The company has proposed to merge Framatome Connectors Berg Ltd (formerly T
VS Berg) and Framatome Connectors OEN Ltd. At the board meeting, valuers have been appointed to frame a scheme of arrangement. As both the companies are in related businesses, the consolidation may be viewed favourably. In this backdrop, th
e Framatome Connectors OEN stock may show a firm undertone in the short-term. The sustainability of the valuation would hinge on specifics such as the swap ratio which would be known only at a later stage. -- BL Research Bureau.
MTNL: Cash outflow looms?
THE rejection of Mahanagar Telecom Nigam Ltd (MTNL)'s proposal to appeal to higher authorities on the Rs. 209-crore tax claim made by the income tax authorities may dampen market sentiment in the stock. The company has abided by the Delhi High Court's (w
here it has challenged the claim) ruling to pay Rs. 200 crores. But it has not been allowed to approach the Income Tax Appellate Tribunal in appeal by the Committee of Disputes. In the wake of this development, the prospect of a sizeable one time charge
on earnings and cash flows cannot be ruled out. The stock may at best be range-bound around the current price levels. -- BL Research Bureau.
Stocks
US market recovery fails to cheer
RECOVERY in the American markets (both Dow Jones and Nasdaq) failed to create positive sentiment in the domestic bourses. With the exception of the Nikkei, most of the other major Asian markets managed to post gains. On Monday, the Nasdaq climbed 217.87
points to close at 3539.16.
Weak price trend
EVEN though technology shares opened strong as brokers took cue from Nasdaq, weakness crept in the price trend at the Calcutta Stock Exchange on Tuesday, since many of the mutual funds faced strong redemption pressure during the day.
