For Quick Alerts
For Daily Alerts

Market Analysis: Review on Tuesday, Jan 5


Market Analysis: Review on Tuesday, Jan 5
Mumbai, Jan 5: On Tuesday, Jan 4, Sensex lost 62 points and closed at 20,498, while Nifty lost 11 points and closed at 6,146. BSE FMCG and Oil & Gas indices gained 1.7 percent and 1.2 percent respectively. BSE Bankex and Realty indices lost 2.4 percent and 1.1 percent respectively.


Suzlon may rope in strategic investor


Suzlon Energy, is expected to rope in a strategic investor to reduce its debts. As per the media sources, Suzlon promoters, led by Chairman Tulsi Tanti, may sell their 55 percent holding in the company to Spain's Games as Corporation Technologies for Rs 77 a share along with a non-compete fee of Rs 10 a share.

Suzlon Energy slipped into losses with demand for wind energy declining and interest burden on its huge debt rising. For the first half of 2010-11, the Company had reported a loss of Rs 1,247 crore. Suzlon has managed to cut down its debt from a peak of over Rs 14,000 crore in 2008-09, but the loan burden is still at a high of Rs 12,000 crore.

The Company has refinanced its debt with banks to lower interest rate and get a moratorium on principal repayment till Mar 2012. It also raised Rs 1,188 crore through a rights issue Jul 2010, helping again to reduce its debt-equity ratio to 1.48 from 1.97.

Kotak Realty sells 20-acre Chennai plot for Rs.130 crore to Mexican firm

A real estate private equity arm of Kotak Bank, has sold a 20-acre residential plot in Old Mahabalipuram Road, Chennai to Homex, a Mexican pre-fabricated affordable housing company for Rs 130 crore. The process would be completed in 6-8 months.

Kotak Realty Funds Group wanted to engage with a developer to develop a residential complex. It had acquired the land from Pentamedia Graphics in 2007. The land was acquired under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002.

Homex is a vertically-integrated home development company focused on entry-level and middle-income affordable housing segments. It is also the largest home builder in Mexico.

Dec sales zoom, Maruti tops chart

Retail car sales zoomed to the highest level in December as year-end discounts prodded customers to buy new cars. Maruti Suzuki, the country's largest car maker, topped charts with its retail sales touching record 1.38 lakh mark in Dec 2010, 54 percent higher than the 89,469 cars it dispatched from its factories in the same month.


Honda Siel India sold over 6,200 cars in the same month, where Toyota sold over 7,500 cars. The huge demand this year was backed by a series of new launches such as Ford Figo and Volkswagen Polo. Carmakers believe that dynamics of the Indian car industry has totally changed with the average age of customers purchasing new cars down to 32 years from 39 years in the past decade. The changing demography of customers has helped to sustain the market this year.

RPower targets 1,000 MW renewable capacity

Reliance Power Ltd plans to take its renewable energy (wind and solar) capacity to 1,000 MW in next two-three years. The company has around 94 MW of operational wind energy-based power capacities located in Maharashtra (48 MW), Gujarat (19 MW), Tamil Nadu (18 MW), and Karnataka (9 MW).

It has identified locations for setting up wind and solar-based capacities which would take our total renewable capacities to 1,000 MW. We expect that of the power which we generate, 10 percent will come from the renewable energy capacities. The company is looking at large capacity (100 MW) projects.

Reliance Power has plans to set up 600 MW solar energy (concentrated solar power - CSP and solar photovoltaic plants - SPV) based power capacity in Rajasthan and 400 MW wind power plants in Gujarat and Karnataka. The company proposes to fund these projects from its internal resources.

The company has reserves of Rs 11,669.24 crore in its balance sheet as on Mar 31, 2010. Besides, it recently tied up with Export-Import Bank of US Under the MoU, the bank will make available up to $5 billion in support of purchases of US goods and services over the next three years for Group's various projects including 900 MW of renewable power generating technology.


Read more about: market roundup sensex nifty money
Story first published: Wednesday, January 5, 2011, 11:55 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X