Sensex Advances; Geithner Visit

Mayank Mehta
05 Apr, 2010
New York City

Stocks in India closed higher as investors took optimistic view on the economic growth and soon to be released earnings. The U.S. Treasury Secretary Timothy F. Geithner is scheduled to meet Prime Minister Manmohan Singh to expand economic partnership between the two countries.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in India closed higher as investors took optimistic view on the economic growth and soon to be released earnings. The U.S. Treasury Secretary Timothy F. Geithner is scheduled to meet Prime Minister Manmohan Singh to expand economic partnership between the two countries.[/R]

Stocks in Mumbai trading closed higher on the optimistic views on the earnings, economic growth and ahead of March auto sales data this week.

U.S. Treasury Secretary Timothy F. Geithner is scheduled to meet Prime Minister Manmohan Singh in New Delhi on April 6 and business leaders in Mumbai on April 7.

Geithner is traveling with Federal Reserve Vice Chairman Donald Kohn to promote opening of more bank branches by the U.S. banks and how to set up a corporate bond market. India is developing 980 miles long Delhi Mumbai highway and industrial corridor. Currently the project is built with the help of Japanese and Korean companies and there are no American companies involved.

Bilateral trade between India and U.S. has surged three-fold in the last ten years but India still ranks 14th on the list below Italy, Brazil and Singapore. Bilateral trade between the two nations is $37.6 billion according to U.S. Treasury substantially lower than the trade of $366 billion with China and $147 billion with Japan.

The Sensex index in India increased 243.06 or 1.37% to 17,935.68 and CNX Nifty index rose 77.90 or 1.47% to 5,368.40. Among the Sensex 30 stocks, 24 rose and 6 fell.

On BSE trading, 2,224 stocks advanced, 642 declined and 59 were unchanged. Auto stocks were in demand on higher than expected March sale. Metal stocks rose. IT stocks declined in volatile trade on a firm rupee. Reliance Industries advanced almost 3%.

Pradip Overseas closed at Rs 111.65 at a premium of 1.50% over the initial public offering price of Rs 110.

Nine cement shares rose as much as 4.7% after March cement shipments increased to meet the requirements of infrastructure and real estate project.

Prime Minister Manmohan Singh recently said that the economy would get back to 9% growth by the end of the eleventh five-year plan period.

Rupee edged higher 3 paisa to 44.43 against one dollar.

Gainers & Losers

Amrutanjan Health Care Limited surged 12.9% to Rs 1,154.00 and the company denied it sold stakes to Emami.

Central Bank of India advanced 1.5% to Rs 147.05 after the government infused capital worth Rs 450 crore in the state-run bank by subscribing to perpetual non-cumulative preference shares.

Cholamandalam DBS Finance Limited surged 9.8% to Rs 100.30 after the company agreed to sell shares to IFC at Rs 92.

Ispat Industries Limited rose 2.2% to Rs 20.35 after the company''s executive director told the media that the firm has raised has prices of its products by Rs 2,500 to Rs 2,700 a ton from April 1 due to higher raw material prices.

JSW Steel Limited rose 2.3% to Rs 1,281.00 after the company increased steel prices to pass on the increase in iron ore prices.

Kabra Extrusion Technik Limited gained 5.0% to Rs 229.00 after the company''s board approved a 2-for-1 stock split.

KSK Energy Ventures Limited gained 4.4% to Rs 196.80 after the power generator plans to begin operation at its 135 megawatt lignite plant in Rajasthan.

McNally Bharat Engineering Co. Limited rose 2.1% to Rs 316.40 after the company secured an order of Rs 827 crore.

Natco Pharma Limited added 3.7% to Rs 141.55 after the company said a promoter has hiked stake in the firm.

Reliance Infrastructure Limited advanced 4.3% to Rs 1,060.10 after the company said on Sunday that its engineering, procurement and construction division has commissioned the first 600 mw unit of the Rajiv Gandhi Khedar thermal power project in Hissar, Haryana.

Steel Strips Wheels Limited surged 19.9% to Rs 151.95 after the maker of automotive wheel rims secured an export order of 19,008 wheels from Renault.

TTK Healthcare gained 4.3% to Rs 277.95 after the company entered into collaboration with an American company to manufacture and market orthopeadic implants.

Valecha Engineering Limited increased 4.6% to Rs 188.00 after the infrastructure developer secured highway project of Rs 200 crore at Madhya Pradesh and piling works of Rs 55 crore at Orissa for Indian Oil Corporation refinery.

Welspun Gujarat Stahl Rohren Limited added 1.3% to Rs 281.00 after the pipe maker is close to buying a majority stake in a Saudi Arabia-based company with an annual manufacturing capacity of 300,000 tons of pipes for the oil & gas industry.