Karvy Stock Broking has a target price of Rs 121 for Andhra Bank

Karvy Stock Broking has a target price of Rs 121 for Andhra Bank, reports Zee Business. The stock is currently trading at Rs 81, down 0.12% on the BSE. It has a target price of Rs 85 for Dena Bank which is trading at Rs 59, up 1.11% on the BSE

Tata, Reliance to pay Rs 700 cr to BSNL

The Supreme Court has held Tata Teleservices 'Walky' and Reliance Communication's (formerly Infocom) 'Unlimited Cordless' as limited mobile phones, hence they are liable to pay Access Deficit Charge (ADC) to BSNL for interconnection.

A bench headed by Justice H S Kapadia, while dismissing Tata Teleservices and Reliance Communication's petitions, has upheld telecom tribunal TDSAT's order of September 2005 that held these services are not fixed lines telephones, but limited mobile.

The Supreme Court had earlier reserved its judgement on a petition filed by Tata Teleservices challenging the telecom tribunal's order which classified the company's fixed wireless phone service 'Walky' as limited mobile.

With this, the apex court had also reserved Reliance Communication's plea challenging Telecom Dispute Settlement and Appellate Tribunal's (TDSAT) order which held that its fixed wireless telephone was equivalent to mobile service and thus Reliance was liable to pay ADC of over Rs 400 crore.

The tribunal in September 2005 had rejected the Tata Teleservices's petition and held that 'Walky' was actually a WLL (M) service, with limited mobility, and not a fixed telephone service, contrary to the licence granted to the company.

TDSAT had ruled that 'Walky' service offered by Tatas was a mobile service, thus the private company was liable to pay ADC to state-owned BSNL as per the interconnect order of telecom regulator TRAI.

Thus, Tata would have to pay about Rs 300 crore as levy to BSNL on account of ADC.

Source : The Financial Express

BSE SENSEX % Rate of Change

2 day % rate of change is +2.1% (bullish)
5 day % rate of change is +3.5% (bullish)
10 day % rate of change is +9.9% (bullish)
60 day % rate of change is -3.9% (bearish)
250 day % rate of change is +25.3% (bullish)

FED interest rate

The market is expecting a 25 bps from the US Fed meeting tonight, reports NDTV Profit. Fed statement may prioritise inflation fears and Fed has already cut rates to 2.25%

Markets turn in Red

Markets have shed their early morning gains, with the benchmark indices witnessing a sharp drop into the negative territory during the previous hour of trade. Selling activities are witnessed in select stocks from the energy, banking and construction sectors while buying interest is being garnered in software, auto and telecom sectors. The advance to decline ratio is almost balanced at 1.1:1 on the BSE.

The BSE Sensex is trading at 17,298 (down 81 points) while the NSE Nifty is trading at 5,168 (down 27 points). The rupee is trading at 40.41 to the dollar.

Software sector stocks are currently trading mixed with the gainers led by NIIT Technologies (up 3%) along with Polaris Software and Geometric Software (both up 2%). As per a leading business daily, 3iInfotech acquired US firm, Regulus Group LLC for the amount of US$ 80 m. The latter is present in the business of remittance processing, which is essentially a document processing service (for example utility bills, telecom bills, insurance related documents etc). This acquisition will make 3iInfotech a global player in payment processing solutions by integrating new acquired Regulus with J&B Software and its products. Regulus reported a topline of US$ 148 m in CY07 and has nearly 1,300 employees under it payroll. The company also has nearly 260 global clients present in the finance, insurance, utilities and healthcare sectors. The stock is currently trading marginally lower.

The aluminium sector stocks are currently trading weak lead by Nalco (down 3%) and Hindalco (down 2%). Nalco announced its annual and fourth quarter results yesterday. During FY08, the sales reduced by 16.1% YoY primarily due the rupee appreciation issue and descending international metal prices. It must be noted that nearly 40% revenues of the company are generated through exports, leading to the dollar depreciation hurting the company's rupee realisations per tonne. The drop in the topline and certain input costs has also led to a 15% YoY fall of the company's operating margins. In absolute numbers, the EBIDTA levels fell by almost 38% YoY. Due to the company's poor performance at the sales and operating level, the net profits and the net profit margins witnessed a fall by 32% YoY and 8% YoY respectively in FY08.

Rajesh Exports

Rajesh Exports has bagged an export order worth Rs 534 crore, reports NDTV Profit. The stock is currently trading at Rs 92, up 3.06% on the BSE

Idea Cellular to invest total of $1.4 billion

Idea Cellular to invest total of $1.4 billion for existing 11 circles, reports NDTV Profit. The company plans to invest $400 million for roll out in Tamil Nadu and Orissa. The stock is currently trading at Rs 106, up 1.57% on the BSE