Stocks in Mumbai Sustain Gains

Mayank Mehta, Chandrasekhar Atreya and Sanjay Barot
03 Jun, 2010
New York City

Indian stocks rose to a three week high after demand for raw materials, consumer goods and services supported the market sentiment.

[R]5:00 PM Mumbai, 8:30 AM New York – Stocks in India continued their upward surge on positive outlook. The latest inflation data showed elevated price pressures. The broadband wireless auction is expected to fetch as much as $2 billion in license fees to the government. NTPC Limited to buy stake in Australian coal mine for $1.5 Billion.[/R]

The Sensex index in India increased 280.49 or 1.68% to 17,022.33 and CNX Nifty index rose 89.70 or 1.79% to 5,109.55. Among the Sensex 30 stocks, 16 rose and 14 fell.

Indian stocks rose to a three week high after demand for raw materials, consumer goods and services supported the market sentiment.

On BSE trading, 1,952 stocks advanced, 826 declined and 85 were unchanged.

Rupee edged lower 14 paisa to Rs 46.49 against one dollar.

Essar Steel Ltd, India’s fourth-biggest steel producer plans to build a steel plant in Karnataka with an investment of Rs 22,000 crore.

The plant will have an annual capacity of 6 million tons, Chairman Shashi Ruia said in Bangalore today. The mill is expected to be commissioned by March 2015 and will be located in Bagalkot district.

Yields on India’s bonds rose from a one-week low as the auction of government bonds due in 2016, 2022, and 2027 is scheduled for the morrow. This auction of 13,000 crore rupees may soak more liquidity in the market.

Ernst & Young, a global consultant in a recently released report suggested that India and China has become the leading destinations for foreign investments as the economies of two nations sustain robust growth.

According to Ernst & Young, there is a clear shift in the world’s economic weight eastwards as it ranked China at 66%, India at 61% and Central & Eastern Europe at 59% as the most attractive regions for FDI projects in the next three years.

The Commerce and Industry Ministry has recommended anti-dumping duty on imports of a chemical from China used in household cleaning products.

The Directorate General of Anti Dumping and Allied Duties has recommended a provisional duty of up to $0.671 a kilogram on import of sodium tripolyphosphate from China.

Volkswagen AG invited journalists at its plant in Germany to demonstrate the launch of small car Vento. The small is expected to be released in the few months and will be assembled at its plant in Pune.

The provisional winning price of pan-India broadband wireless access on Wednesday crossed 8,500 crore rupees. At the current price the government should get over 26,000 crore from the broadband wireless auction spectrum.

Gainers & Losers

Bafna Pharmaceuticals Limited rose 4.6% to Rs 43.80 after the company''s product paracetamol 500 mg tablet, paracetamol caplet and loperamide 2 mg capsule got site approval from MHRA UK.

Dynamatic Technology Limited rose 10.2% to Rs 1,019.65 after the company signed an agreement with the government of Karnataka for the establishment of an aerospace manufacturing facility at the Aerospace Park at an industrial park near the International Airport in Bangalore.

eClerx Services Limited rose 12.3% to Rs 566.00 after the company said its board will meet on June 7 to consider issue of bonus shares.

Four Soft Limited rose 11.1% to Rs 27.50 after the company clarified that Kotak Private Equity is not planning to sell stake in the firm.

Godrej Consumer Products Limited rose 2.6% to Rs 335.80 after the company signed a pact to buy Argentina-based hair care company Argencos SA. Argencos owns hair spray brands Roby and 919.

Hindustan Copper Limited rose 2.03% to Rs 481.90 after the company expects the Cabinet to approve its plan for a 20% stake sale by next week.

InfoTech Enterprises Limited rose 2.1% to Rs 378.50 after the company signed a long term master service agreement with Norway-based Seawell AS, a drilling and oil well services contractor to provide engineering support services.

McNally Bharat Engineering Co. Limited rose 4.57% to Rs 311.25 and the company is looking to expand in countries such as Mongolia, South Africa and Indonesia to set up coal washeries and mineral beneficiation plants.

NTPC Limited rose 2.1% to Rs 201.65 after the company is set to buy controlling stake in a coal field in Australia in a deal valued between $1 billion and $1.5 billion, which will enable it to generate about 3,500 megawatt of power.

Reliance Communications Limited rose 6.37% to Rs 164.45 on speculation that the company is looking to merge with MTN Group Limited or find a strategic foreign investor.

Shares of 18 banks rose 0.07% to 5.88% after the latest data showed bank credit growth of banks increased 18% in the one-year period ended May 21 compared with 15.20% increase a year ago.

Shree Renuka Sugars Limited fell 2.1% to Rs 62.30 after the company said it is renegotiating a deal to acquire a 51% stake in Brazil''s Equipav S.A. Acucar e Alcool.

Sterlite Industries (India) Limited rose 2.1% to Rs 647.90 after the company''s listed stock in New York jumped 6.02% to $13.92 on the New York Stock Exchange on June 2.

Tata Motors Limited rose 5.9% to Rs 769.50 after the company''s listed stock in New York climbed 4.67% to $17.27 on the New York Stock Exchange on June 2.

United Phosphorus Limited rose 0.95% to Rs 181.00 after the company acquired global non-mixture mancozeb fungicide business and related assets from DuPont for an undisclosed sum.