Sensex in India at 30-month High; Avantha IPO

Chandrasekhar Atreya
19 Aug, 2010
New York City

The Sensex index in Mumbai traded at a 30-month high. SEBI requires higher derivatives disclosures for mutual funds and limits the exposure to the fund asset size. Essar Group finalizes capital plan for 9,500 mw power projects. Avantha Power plans an IPO in October.

[R]5:00 PM Mumbai – The Sensex index in Mumbai traded at a 30-month high. SEBI requires higher derivatives disclosures for mutual funds and limits the exposure to the fund asset size. Essar Group finalizes capital plan for 9,500 mw power projects. Avantha Power plans an IPO in October.[/R]

Indian stocks rallied aided by sustained buying by foreign funds and lower inflation read for the week ended August 7. The rally helped the benchmark index to trade at 30-month high.

The Sensex Index gained 1.08% or 197.82 to close at 18,454.94.

India this week launched a major initiative to expand business presence in China with a large delegation of Indian firms traveling to China’s commercial capital to explore opportunities.

A delegation of 70 companies in sectors ranging from information technology and machinery to pharmaceuticals and agro-products on Thursday hold business-to-business meetings with some of the biggest Chinese firms in culmination of a year-long push to promote Indian enterprise in China and narrow a fast-widening trade imbalance.

Market regulator SEBI Wednesday asked mutual funds to disclose investments in equity derivatives and said the combined exposure in equity, debt and derivatives should not exceed the net asset of each fund.

The rule will be effective from October 1 for all new schemes as well as the existing schemes, the regulator added.

The wholesale price index in India decreased 0.1% to 307.8 from 308.0 for the previous week. For the year ending in the week average inflation surged to 14.85% compared to 7.85% in the same period a year ago.

Reliance Broadcast Network Ltd, part of the Reliance ADAG Group, and CBS Studios International, a division of CBS Corporation, on Wednesday announced their 50-50 joint venture called Big CBS Networks Pvt Ltd.

The joint venture will initially manage three new television channels allowing for programming rights in India and across the Indian subcontinent.

LKP Finance Ltd, an Indian financial services company, sold its entire stake in Thomas Cook (India) Ltd, raising about Rs 8,000 crore for its expansion, the company’s Chairman Mahendra V Doshi said.

Essar Group achieved financial closure for 9,500 megawatt of power projects.

Avantha Power plans to raise Rs 300 crore pre-IPO placement and will raise a further Rs 1,250 crore via its initial public offering scheduled to open from October 11 to October 14.

Sun Phrma received the FDA approval for an ANDA to market a generic version of venlafaxine hydrochloride extended release tablets indicated for the treatment of major depressive disorder, generalized anxiety disorder and panic disorder. The extended release tablets include 37.4 mg, 75 mg and 150 mg base dosages.

Tata Group’s retail arm, Trent Ltd plans to open seven hypermarkets this year as part of its plan to add 50 hypermarkets in the next three years, a top company official said Wednesday.

The expansion of Star Bazaar, the hypermarket format that sells food and grocery will require an investment of Rs 275 crore, P. Venkatesalu, CFO of Trent told reporters after the company annual general meeting in Mumbai.

Gainers & Losers

Aban Offshore Limited soared 7.1% to Rs 837.50 after the offshore exploration and production company signed a contract with Cairn Energy India Pty for the deploying the jack-up rig Aban-II in Ravva block for a 5 firm well plus 2 optional well program.

ABC India Limited gained 4.8% to Rs 130.00 after the logistics solutions company secured logistics orders for infrastructure and industrial projects aggregating Rs 114 crore.

Atlanta Limited surged 6.3% to Rs 362.50 after the infrastructure development company fixed a board meeting on August 28, to consider a 5-for-1 stock split.

Gillette India Limited rose 0.1% to Rs 1,951.00 after the gent toiletries producer said net profit plunged 51.2% to Rs 18.61 crore.

GVK Power & Infrastructure Limited increased 4.6% to Rs 44.00 after the power generator said the company is close to raising $280 million from private equity majors for its power business.

HDFC Bank Limited rose 2.1% to Rs 2,234.70.

Jyoti Structures Limited fell 2% to Rs 142.75 after the company board approved raising Rs 400 crore via share sale to institutional investors.

Kingfisher Airlines Limited soared 12.2% to Rs 61.25 after the domestic airline retained the highest market share, flying 815,000 passengers in July.

MIC Electronics Limited rose 0.2% to Rs 38.95 after the company secured 17 different orders collectively worth Rs 20.64 crore from the Indian Railways in first quarter.

Procter & Gamble Hygiene and Health Care Limited gained 2.4% to Rs 2,268.00 after the consumer goods company reported fourth quarter net profit declined 78.8% to Rs 10.10 crore.

Royal Orchid Hotels Limited rose 0.4% to Rs 82.35 after the hotel manager reported company''s board approved a proposal to raise up to Rs 150 crore.

Srei Infrastructure Finance Limited rose 1.5% to Rs 90.15 after the leasing & finance reports telecom subsidiary, SREI Infocomm Services, is close to buying around 60% stake in Luxembourg-based Millicom''s tower assets in Tanzania for around Rs 400 crore.

Sun Pharmaceutical Industries Ltd rose 1.2% to Rs 1,788.40 after the company received approval from the US drug regulator to sell a generic version of antidepressant Venlafaxine Hydrochloride Extended Release tablets.

Subex Limited gained 1.9% to Rs 53.40 after the telecom applications solutions provider said that a Malaysian communications service provider has renewed its multi-million dollar deal for the deployment of one of the company''s IT products.

Sadbhav Engineering Limited increased 3.7% to Rs 1,582.00 after the engineering infrastructure developer reported its wholly owned subsidiary, got funding worth Rs 400 crore from Norwest Venture Partners and The Xander Group Inc.

Tata Motors Limited increased 3.4% to Rs 1,040.10 after the automobile company plans to raise $700 million through an issue of shares with differential voting rights.

Varun Industries Limited gained 3.7% to Rs 143.70 after the manufacturer and exporter of general merchandise company entered into an agreement with Australia-based Cluff Resources Pacific NL, for exploration and development of a mine.