Stock markets still confused
Mumbai: Huge volumes coupled with narrow price movement exemplify the state of confusion in the major Indian stock markets. The combined turnover on the National Stock Exchange and the Bombay Stock Exchange was over Rs.5,500 crore compared to the average Rs.4,500 crore seen during recent times.

The Bombay Stock Exchange index of 30 shares closed at 4,633, a drop of 8 points from the previous close of 4,641. The National Stock Exchange index of 50 shares closed at 1,351  a drop of 7 points.

Around 4.17 lakh shares were traded on the NSE, with the turnover aggregating Rs.2,980 crore. On the BSE, the turnover was Rs.2,615 crore, while 2.8 lakh shares were traded.

Bonus issue rumours helped the Zee Telefilms scrip to shoot up. On the BSE, Rs.377 crore worth of trading was done on Zee alone. The stock touched an all-time high of Rs.4,255. Software stocks such as Infosys, Mastek, NIIT, Wipro and Satyam also gained. Other stocks to gain were Cipla, Britannia Industries, Grasim, IPCL, Castrol and Tata Chemicals.

The combined market capitalisation of Wipro and Infosys has crossed Rs.50,000 crore. Infosys has a market cap of Rs.25,245 crore while  Wipro's is Rs.26,558 crore.
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ABS MD summoned by Sebi
Mumbai: The Securities and Exchange Board of India has summoned Rakesh Agarwal, managing director of ABS Industries, now called ABS Bayer, for a hearing on 22 September 1999. Mr.Agarwal is accused of insider trading in the shares of ABS Industries, prior to its takeover by Bayer. Mr.Agarwal’s earlier replies  on the same issue, had failed to convince the regulator.

According to Sebi, Mr Agarwal’s brother-in-law bought the shares of ABS Industries from the open market and sold them to Bayer Industries. Between August and October 1996, the share price of ABS Industries went up from Rs.48 to Rs.82. Bayer picked up a 20 per cent stake in ABS at Rs.80 per share. After this incident, Sebi launched an investigation.
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Birla Mutual’s new marketing plans
Mumbai: Birla Mutual fund has devised a plan to discourage price undercutting by distributors in its recently launched balanced scheme. This is to be done by staggering the payment made to the distributor.

The new plan works this way. The distributor will be given some (say 0.5 per cent) part of his incentive upfront. The remaining part (say 0.75 per cent) will be paid to him once he brings in the funds and will also depend on the period for which it stays in the scheme. The longer the funds stay in the scheme, the greater will be the incentive paid to the distributor.
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ICICI to debut on the NYSE
Mumbai: ‘IC’ will be the trading symbol of ICICI Ltd., which is getting listed on the New York Stock Exchange today (22 September 1999). ICICI thus becomes the first Indian company to get listed on the NYSE.

Trading on the NYSE floor will begin in ICICI as soon as the final registration is issued by the Securities and Exchange Commission of the US. ICICI is floating an American Depository issue to raise $315 million through the book-building route.

The initial price expected per ADRs is around $9.5 to $9.10. Each ADR will represent five shares of ICICI.
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HCL Tech may come out with IPO
Mumbai: HCL Technologies may float a public issue in India. Sebi’s recent guidelines to allow companies to divest only 10 per cent of their capital abroad has forced HCL Technologies to drop its New York Stock Exchange listing plans. A draft prospectus has been filed with Sebi. The company has appointed Kotak Mahindra as its lead manager.

The company wants to come out with the issue by October-November 1999. A final decision on the issue will be taken after Sebi gives permission. The issue will be sold through the book building route.

HCL Technologies has an equity capital of Rs.33 crore, 82 per cent of which is held by Shiv Nadar and other promoters. Post-issue, the capital is expected to increase to Rs.55.5 crore. It is headquartered in the US and has subsidiaries in India and the Europe.

As of 30 June 1999, HCL Technologies had a turnover of Rs.1,000 crore that includes Rs.350 turnover by HCL Comnet, HCL James Martin and HCL Perot Systems, which are associate companies.
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BSE set to bar trading in 28 companies
Mumbai: Trading on 28 companies listed on the Bombay Stock Exchange will be suspended since they have violated the listing agreement of the exchange as regards announcement and intimation of book closure and record dates.

The companies given in the alphabetical order are: Hinduja Finance Corporation, Innovative Marine Foods, Intensive Air Systems, Jal Hi Power Petrochem, Kakatiya Textiles, Kandhari Rubbers, MCC Investment and Leasing, Mayur Leather Products, Mewar Polytex, NDA Securities, Namtech Electronic Devices, Paras Petrofils, Photoquip India, Pioneer Overseas Finance, Primus Chemicals, RTS Power, Rapid Investments, Rock Copco, Rose Zinc, Santosh Fine-Fab, Shez Cements, Shiva Fertilisers, Shree Vani Sugars, Simplex Trading and Agencies, Spartek Ceramics, Tulsyan NEC, Umi Special Steels and Valley Abresives.
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Zee Telefilms stock split
Mumbai: Zee Telefilms' board is to meet on 27 September to consider splitting its shares of Rs 10 into smaller denominations.

The price of Zee Telefilms' scrip reached an all-time high of Rs 4,255 on 21 September.
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