Sensex Gains; FDI Drops 45% in June

Chandrasekhar Atreya
09 Aug, 2010
New York City

Sensex index in Mumbai gained 1.4% tracking gains in international markets. Real estate developers led gainers and India Bulls won Mumbai land auction for $330 million price. Life Insurance Corporation plans to invest as much as $5 billion in financial markets.

[R]5:00 PM Mumbai – Sensex index in Mumbai gained 1.4% tracking gains in international markets. Real estate developers led gainers and India Bulls won Mumbai land auction for $330 million price. Life Insurance Corporation plans to invest as much as $5 billion in financial markets.[/R]

Indian stocks gained with the international markets advances led by a gain in real estate developers and financials.

The Sensex gained 0.79% or 143.51 to close at 18,287.50. Of the 30 stocks in the index, 26 closed higher.

The Ruia Group bought the assets of Gumasol-Werke GmBH & Co in Germany which makes solid tires and rubber components. The third acquisition in the automotive sector in Europe by the Ruia includes the purchase of land, plant and patent rights.

At a joint press conference with Martin Weidmann, Gumasol administrator in Kolkata on Friday, Ruia Group Chairman Pawan Ruia said the company is looking to manufacture these tires in India.

The government plans to raise Rs 21,000 crore through the sale of 5% equity of the government in ONGC and 10% in Indian Oil Corporation in the current fiscal year.

Petroleum and Natural Gas Ministry sources said a note was prepared for approval by Petroleum Minister Murli Deora along with a formal note by the Department of Disinvestment for approval by the Cabinet.

Life Insurance Corp of India plans to invest Rs 200,000 crore across asset classes in the current fiscal year, up from Rs 192,000 crore in the last year.

“We have internally targeted to invest Rs 200,000 crore across asset classes by the end of this fiscal and the targeted premium collection for the year was Rs 201,000 crore,” LIC Chairman T.S. Vijayan told reporters in Mumbai on Friday after announcing a “valuation surplus” of over Rs 23,000 crore on investments in the fiscal year ended in March 2010.

BGR Energy Systems signed two agreements with Hitachi of Japan and Hitach Power Europe GmBH, Germany, a Hitachi subsidiary to set up a boiler and a turbine manufacturing facility in Tamil Nadu with an estimated investment of Rs 4,400 crore.

FDI inflows into India declined 45% to $1.41 billion in June from $2.58 billion in the year ago period. FDI in May 2010 was $2.2 billion.

India Bulls won the NTC Bharti Textile Mill’s auction bid for Rs 1,505 crore. The company said it expects Rs 8,000 crore from the sale of eight Mumbai properties.

The National Spot Exchange Ltd, promoted by Financial Technologies India Ltd and National Agricultural Cooperative Marketing Federation of India Ltd, plans to launch copper and nickel contracts by the end of this month. It aims to attract retail investment in commodities trade after launching successfully e-commodities for gold and silver in March.

“We had launched gold and silver contracts under e-commodities and based on the success of the same, we are now planning to add copper and nickel contracts by end of August. By the end of this year, we will add 15 more commodities mainly zinc and steel from ferrous and non-ferrous category, castor and guar seeds from agri commodities having long-perishable shelf life,” said Anjani Sinha, MD-CEO of National Spot Exchange.

Hyderabad-based GVK Power & Infrastructure Ltd plans to invest as much as Rs 5,000 crore to expand the airports at Bangalore and Mumbai, Chairman G.V. Krishna Reddy said.

The builder of airports and power plants also plans to raise as much as Rs 1,500 crore selling securities that can be converted to equity of its energy unit, Reddy said in an interview in Hyderabad on Friday.

Gainers & Losers

AREVA T&D India Limited rose 1.9% to Rs 294.85 after the energy distributor secured a sub-station contract worth Rs 110 crore from Power Grid Corporation.

Bharat Heavy Electricals Limited rose 0.7% to Rs 2,525.10 energy-related infrastructure developer secured an order worth Rs 2,525 crore for a power project from an independent power producer -- Abhijeet Infrastructures.

Britannia Industries Limited dropped 6.1% to Rs 2,130.10 after the bakery products maker said net profit declined 30.69% to Rs 32.83 crore.

B.L. Kashyap and Sons Limited surged 17.1% to Rs 389.30 after the construction & infra structure developer’s board at the time of announcing first quarter June results recommended a 5-for-1 stock split and a 1:1 bonus issue.

Entertainment Network (India) Limited fell 0.3% to Rs 208.00 after the entertainment and media company reported first quarter consolidated net profit of Rs 1.08 crore compared to net loss of Rs 19.41 crore from year ago.

Graphite India Limited rose 4.2% to Rs 102.40 after the company said Reliance Mutual Fund acquired a 3.8% stake in the Kolkata-based graphite electrodes manufacturer via a bulk deal on Friday.

Genus Power Infrastructures Ltd gained 4.6% to Rs 232.15 after the integrated power infrastructure developer said board of directors approved a 10-for-1 stock split.

KSK Energy Ventures Limited rose 0.9% to Rs 163.20 after the power and mining company reported consolidated net profit surged 68.7% to Rs 80.80 crore.

Oil and Natural Gas Corporation Limited rose 0.1% to Rs 1,233.10 after the oil explorer reported the government approved up to 25% higher price for natural gas produced from the new blocks allotted on nomination basis.

Power Grid Corporation of India Limited gained 2.4% to Rs 102.00 after the power transmission company net profit advanced 28.60% to Rs 703.18 crore.

Reliance Capital Limited dropped 1.7% to Rs 768.45 after the investments company consolidated net profit declined 49% to Rs 77 crore.

The Shipping Corporation of India Limited rose 0.7% to Rs 169.55 after the shipping company scheduled a board meeting on August 11 to consider a proposal of follow-on public offer and an offer for sale of shares by the Government of India.

Tata Motors Limited surged 6.7% to Rs 918.9 after the automobile company’s American depository receipt jumped 2.48% to $19.87 on the New York Stock Exchange on Friday.

Tilaknagar Industries Ltd increased 7.2% to Rs 214.05 after the beverage maker said board of directors recommended a 2:1 bonus issue.