Frenzied buying lifts Sensex 190.24 points
NEW DELHI, May 31 — After a near crash-like situation last week caused by the prevailing tension in the Indo-Pak border in Kashmir, share prices today staged a spectacular recovery with the Sensex gaining 190.24 points over the previous closing on Friday.

Frenzied buying lifts Sensex 190.24 points
Tribune News Service

NEW DELHI, May 31 — After a near crash-like situation last week caused by the prevailing tension in the Indo-Pak border in Kashmir, share prices today staged a spectacular recovery with the Sensex gaining 190.24 points ( 5.04 per cent) over the previous closing on Friday.

The Sensex today stood at 3963.56 points as compared to the Friday’s closing of 3773.31 points- a gain of 5.04 per cent.

Marketmen attributed the revival to the expectations that the prevailing tensions in the Indo-Pak border might ease in a few days.

“The crisis seems to be over”, a Delhi based broker told The Tribune saying that the primary reasons behind the crash like situation last week was the “fear of a war breaking out between the two countries”.

The recovery today, was prompted by frenzied buying by overseas funds and domestic financial institutions.Marketmen said that beginning of fresh settlements also influenced sentiments.

After nearly four weeks of bull run helped by the steady flow of income from Foreign Institutional Investors (FIIs), share prices in India went into a tailspin following the news of IAF strikes in Kargil to flush out Pakistani infiltrators. Prices dipped further in anticipation that of escalation of tension in the Indo-Pak border.

Analysts said that the Foreign Institutional Investors (FIIs), who had adopted a policy of wait and watch, were closely observing the situation the border. “The general feeling within the FIIs is that both India and Pakistan cannot afford a war this point of time”.

Marketmen said that Pakistan’s retaliation last week had propelled the feeling that time would be required to restore normalcy.

“The fall in 87 points on Wednesday was basically seen as a technical correction”, a Delhi based broker told the TNS. However, the Indian government’s silence over the Pak claims the next day sparked of speculative activities.This resulted in panic selling by operators who were trying to lighten their commitments on fears of an Indo-Pak war.

“Marketmen said that the tumble in the stock market last week was largely brought about by panic selling by speculators.”

The hectic FII buying had helped recoup most of the Rs 70,000 crore lost in the month of April due to political uncertainty.

Market observers said that the money flowing into India is essentially a part of the entire allocation of FIIs for the emerging and recovering Asian economies.

“India has become one of the attractive markets for the FIIs as markets in India could not keep pace with the incipient boom in other markets such as Singapore, Thailand and Korea”, a Delhi based analyst told the TNS pointing out that the these markets had outpaced India and hence FIIs are looking towards India to cash in on the opportunities.

The renewed interest in Asia (including India) has also been driven by the lack of opportunities in Europe, Latin America and Russia.

There are also tendencies of the recession bottoming out in the rest of the world which is reflected by the rising demand.

MTNL to review Internet rates

NEW DELHI, May 31 (PTI) —State owned Mahanagar Telephone Nigam (MTNL) is planning to offer a new tariff package for Internet connections in an effort to corner a larger chunk of the burgeoning Internet market.

MTNL which entered the Internet market in early February, is also planning to quadruple its capacity in Delhi and Mumbai to 20,000 each, MTNL Chairman and Managing Director S. Rajagopalan said.

“I have to match my tariff and packages in the new market to remain competitive. But at the same time market reality has to be taken into account”, Rajagopalan told PTI.

He said MTNL, which fixed Internet tariffs for a period of three months initially was due for review. “The board will consider if any modification is required in the present market conditions”, he added.

Without divulging the details of the new package, the MTNL chief said it was difficult to say that whether the rates would be reduced but different kind of packages may be offered.

MTNL has already exhausted the existing capacity of 5,000 in Delhi and Mumbai, Rajagopalan said adding that “We have arranged for immediate expansion of 1,200 lines in each city.”

In Mumbai the arrangement has already been made for additional 1200 lines and the corporation has placed orders for equipment to expand the capacity to 20,000 involving investment of Rs 7 crore, Rajagopalan said.

The corporation is charging Rs 2,550 for 100 hours, Rs 5,525 for 250 hours and Rs 8,500 for 500 hours apart from registration fee of Rs 500 on the public switch telephone network (PSTN) Internet account.

Most of the MTNL’s Internet subscribers fall into the category of 100 hours, he said adding that “we are expecting increase in number in other categories of 200 and 500 hours soon.”

The company has also started direct marketing to approach high end users of basic telephone services in Delhi and Mumbai.

Badal lays foundation of Markfed sugar mill
Tribune News Service

MALOUT, May 31 —The Punjab Chief Minister, Mr Parkash Singh Badal, here today laid the foundation stone of a sugar mill having crushing capacity of 2500 MTs per day.

The sugar mill which will be commissioned by November, 2000, is set up by Markfed at a cost of Rs 30 crore. The mill will reduce the demand production gap in Punjab.

Speaking on the occasion, Mr Badal said the need of setting up the sugar mill arose due to the failure of cotton crop. The area was suitable for sugarcane crop and experts had predicted the better per acre yield of sugarcane.He pointed out that about 12,000 hectares in the nearby areas would be brought under the sugarcane crop for ensuring the adequate supply of raw material to the sugar mill. Farmers would got good return of their yield after the mill was commissioned.

Mr Ranjit Singh Brahampura, Cooperation Minister, said after the commissioning of the sugar mill, arrangements would be made to generate electricity from its wastage.

He said the mill management would encourage the farmers to grow sugarcane by getting their agreement signed with Markfed and by supplying good quality inputs. He added that PAU, Ludhiana, Markfed and Cane Commissioner, Punjab had been involved in this project to supply better seeds and plants of sugarcane to the growers.

Markfed is also setting up Modern Rice Mills at Goniana, Jaitu, Tarn Taran and Patti and all these mills will be commissioned within a year.

Maruti allowed to register Esteem

NEW DELHI, May 31 (PTI) — The Delhi Government today permitted Maruti Udyog Ltd (MUL) to register its Euro-I emission norms compliant “Esteem” car model in the national capital region.

Transport Department of the Delhi Government is processing the papers submitted by Maruti Udyog Ltd in support of Maruti 800 and Zen models complying with Euro-I emission standards, special transport commissioner M.P. Tyagi told PTI here.

“We have permitted to register MUL’s Esteem model in the national capital region (NCR) and are processing the papers submitted by MUL on Friday for 800 CC and Zen models. A decision in this regard is likely in a day or two,’’ he said.

Surprisingly, Maruti which has about 75 per cent market share in the passenger car segment and sells around 8000 vehicles per month in the Delhi region alone, has not applied for Omni vans and Gypsy models as the company is still working on them to make it Euro-I compliant.

When contacted, Maruti Chief General Manager (Marketing and Sales) Rohtash Mal said the company had started dispatching Esteem models in the NCR and added that deliveries of other models would start once the state government’s official permission was received.

Mahindra & Mahindra net dips 9.1 per cent

Mahindra & Mahindra (M&M), has registered a 9.1 per cent drop in its net profits for 1998-99 to Rs 228.58 crore even as net income showed a marginal rise of Rs 83.23 crore over the previous year to Rs 3571.35 crore.

The leading manufacturer of utility vehicles posted a higher gross profit of Rs 439.99 crore as against Rs 435.74 crore in the previous accounting period and maintained a dividend of 55 per cent.

“Our grip on the rural market, coupled with the wide range of products had enabled us to arrest the impact of the acute recessionary trend as compared to the rest of the industry”, Managing Director Anand Mahindra said in a statement following the Board meeting here today.

Agro Dutch Foods

The Chandigarh-based Agro Dutch Food Limited, a 100 per cent EOU set up in joint sector with Punjab Agro Industries Corporation, has reported a 852.2 per cent rise in net profit to Rs 8.59 crore for the fiscal year ended March, 1999.

The turnover has risen by 94.38 per cent to Rs 45.34 crore for fiscal year 1999 as compared to Rs 23.32 crore in the previous year. Despite a 36 per cent rise in interest charges at Rs 4.76 crore, gross profit rose to Rs 10.12 crore as against Rs 2.38 crore in the previous year.

Tata Yodogawa

Tata Yodogawa Ltd has reported a net profit of Rs 535 lakhs and recommended 32.5 per cent dividend for the year 1998-99, a company release said here today.

BSES net rises

BSES Limited today said its net profit in financial year 1998-99 went up marginally by 3 per cent at Rs 270 crore from Rs 262 crore in the previous year.

The company said it proposes to pay its shareholders a dividend of Rs 3.4 per Rs 10 face value share, up from the Rs 3.20 dividend paid in 1997-98.

Eicher net surges 19.3 pc

The Board of Directors of Eicher Limited (EL) today announced a 35 per cent dividend for 1998-99 having registered a 19.3 per cent surge in net profit during the year.

Its net profit for the year stood at Rs 29.16 crore as compared to Rs 24.45 crore in the same period last year, Eicher group Chairman Subodh K. Bhargava told newspersons here the company has posted 10.7 per cent jump in sales to Rs 657 crore for the fiscal as compared to Rs 593 crore in the previous year. The profit before interest and depreciation for Eicher Limited stands at Rs 56.13 crore.

Godrej Soaps slips into red

Godrej Soaps Limited slipped into the red during the 1998-99 fiscal, recording a net loss of Rs 29.93 crore compared to a net profit of Rs 8.53 crore in the previous year.

Godrej Soaps’ sales in 1998-99 were, however, higher at Rs 918 crore, up 18.8 per cent from Rs 768 crore in the previous year.

Himachal Futuristic

Himachal Futuristic Communications Limited (HFCL) today announced a 10 per cent dividend for 1998-99 having registered a 155 per cent surge in net profit during the period. Its net profit in the financial year stood at Rs 35.9 crore as against Rs 14.1 crore a year ago.

Sales in 1998-99 were at Rs 392 crore, up 117 per cent from Rs 181 crore a year ago.

Sundaram Fasteners

Sundram Fasteners Limited said its net profit for the financial year 1998-99 was Rs 29.5 crore, up 15.7 per cent from Rs 25.5 crore in the previous year. The company’s Board of Directors, recommended a dividend of Rs 7 per Rs 10 face value share.

Apollo Tyres net down 23.6 pc

Apollo Tyres recommended a 40 per cent dividend for the 1998-99 fiscal despite a 23.60 per cent drop in net profit during the year.

Net profit for the financial year stood at Rs 31.08 crore as against Rs 40.68 crore a year earlier.

Uniflex Cables

Mumbai-based Uniflex Cables Limited has recorded a 110.7 per cent surge in net profit during 1998-99 at Rs 4.53 crore.

The company has recommended a dividend of 15 per cent as against 10 per cent last year. Net sales have gone up to Rs 136.48 crore from Rs 120.9 crore showing a jump of 12.9 per cent.

Hindustan Sanitaryware

Hindustan Sanitaryware, makers of Hindware range of fitting, has reported 13.35 per cent increase in net profit at Rs 13.58 crore during the financial year ended March 31, 1999 against Rs 11.98 per cent in 1997-98. The company recommended 45 per cent dividend against 40 per cent in the previous fiscal. Gross sales of the company increased to Rs 163.88 crore from Rs 131.72 crore whereas other came down to Rs 2.24 crore from Rs 3.04 crore in the 1997-98.

Tata Timken

Tata Timken Limited has registered 45.76 per cent fall in net profit during 1998-99 at Rs 7.28 crore against Rs 13.43 crore in the previous fiscal. He announced that net sales declined by about 3.5 per cent to Rs 128.38 crore from Rs 133 crore in 1997-98.

GAIL to pay 35 pc

Gas Authority of India Ltd (GAIL) announced a 75 per cent increase in the dividend for 1998-99 as compared to the previous year. The Navaratna Board of Directors has recommended a dividend of 35 per cent against 20 per cent in the previous year. The total payout on this account for 1998-99 would be Rs 329 crore as against Rs 186 crore the previous year. — TNS & agencies

Forex
US $ Rs 42.84/85
Stg £ Rs 68.64/66
Euro Rs 45.79/82
Jap yen (100) Rs 35.25/28

Price index
SHIMLA, May 31 (UNI) — The All India consumer price index number for industrial workers on base 1982-100 for the month of April, 1999 has increased by one point to stand at 415 points, according to the Labour Bureau here today.

IFFCO
NEW DELHI, May 31 (TNS) — IFFCO plans to produce 20 lakh tonnes of phospatic and potassic fertilisers during 1999-2000 as against the budgeted amount of 16.30 lakh tonnes. IFFCO produced over 13 lakh tonnes of NPK DAP during 1998-99 which was about 17 per cent of the total production of phospatic and potassic fertilisers.