Pharma stocks in demand
Mumbai: Pharma stocks became most sought-after scrips on the bourses on 20 December. A large number of stocks in this sector hit the upper price band and notable among the gainers were Dr Reddy’s, German Remedies, Nicholas Piramal,. Rhone-Poulenc, E Merck, Burroughs Wellcome and Glaxo. Market players said the renewed interest is on account of the  opening up of the insurance sector, which will have a bearing on most of the high-value drugs manufactured by these companies.

On the BSE, Zee Telefilms was the highest traded security with a turnover of Rs 484 crore.

The market in general witnessed an uptrend with the Sensex of the Bombay Stock Exchange going up by 70.69 points to close at 4746.54. The index touched a high of 4846 during intra-day trading, an increase of 171 points. The S&P CNX Nifty of the National Stock Exchange gained a moderate three points to close at 1422.45. The combined trading turnover of the NSE and BSE stood at Rs 7,699 crore, which w as however, below the average turnover on the bourses in the recent past.
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ACC at record volume
Mumbai: The stock of Associated Cement Companies had record volumes on the exchanges on 20 December. The combined volume on the National Stock Exchange and the Bombay Stock Exchange reached 99 lakh shares. The stock also touched the circuit breaker on both the bourses on speculative purchases. On the BSE, it was traded at Rs 250.75 later closing at Rs 248.05 against the previous close of Rs 232.20.
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Sebi notice to BPL, Sterlite, Videocon
Mumbai: The Securities and Exchange Board of India has issued show cause notices to BPL, Videocon International and Sterlite Industries for their alleged involvement in market manipulation of stocks of the three companies in May-June 1998. Notices have also been issued to Ajit Nambiar, managing director, BPL, Venugopal Dhoot, managing director, Videocon, and Anil Aggarwal, managing director, Sterlite Industries, other directors of these companies, and  Harshad Mehta and six firms that had allegedly acted as a front for Mr Mehta.

Sebi’s senior executive director L.K. Singhvi said the notices were issued based on  prima facie evidence indicating their involvement in market manipulation. Sebi had undertaken an extensive investigation into the price manipulation in which the companies are alleged to have also bailed out brokers who were involved in the manipulation by making funds available to them for purchase of the shares.
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Satyam plans another ADS offer
Mumbai: Satyam Infoway is planning to raise $115 million through a public issue in the US to part-fund its recent acquisition of Internet portal IndiaWorld. The company has filed an application in this regard with the ministry of finance.

Satyam Infoway requires $75 million to purchase the balance 75.5 per cent holding in IndiaWorld Communications, a deal that is required to be completed by 30 June 2000 in terms of the agreement between the two companies. Satyam Infoway had already paid $28 million for a 24.5 per cent stake in IndiaWorld and a non-refundable deposit of $12 million  to acquire the balance 75.5 per cent.

The company has also announced a one-to-four stock split of its existing American depository shares in order to attract more people to participate in the issue. The company’s ADS holders will be offered three additional ADSs for each ADS held. The ADS is trading around $155.
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Kotak Mahindra registers with NASD
Mumbai: Kotak Mahindra Capital Company has got itself registered with the National Association of Securities Dealers in the US. This will enable the company to be a US broker-dealer, which gives the company better access to large institutional business in the US. Kotak Mahindra Capital Company will be the first in India to have this registration.
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Private placement plan from Adhikari Bros
Mumbai: Media and entertainment company Sri Adhikari Brothers is planning private placement of one million equity shares to raise Rs 90 crore to finance its proposed Hindi entertainment channel. This will be roughly 12 per cent of the company’s total equity. The company expects foreign institutional investors and domestic funds to subscribed to the issue at market-related prices. The company is holding an extraordinary general meeting of shareholders on 7 January 2000 to seek approval for the private placement.
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