Soros Buys Stake in BSE; Sensex Declines

Chandrasekhar Atreya
20 Aug, 2010
New York City

Stocks in Mumbai traded lower but ended little changed. Billionaire investor George Soros controlled fund acquired 4% stake in the BSE from the Dubai sovereign fund. Cabinet approves nuclear liability bill that may haunt India as it limits the nuclear accident liability.

[R]5:00 PM Mumbai – Stocks in Mumbai traded lower but ended little changed. Billionaire investor George Soros controlled fund acquired 4% stake in the BSE from the Dubai sovereign fund. Cabinet approves nuclear liability bill that may haunt India as it limits the nuclear accident liability. ONGC considers buying Cairn India’s stake in Rajasthan block.[/R]

Indian stocks after trading lower in the early trading gained moderately to finish slightly lower tracking Asian markets. The index is still near 30-month high and of the 30 components in the index 20 fell in trade today.

The BSE Sensex Index lost 0.29% or 53.12 to close at 18,401.82.

The Bangalore International Airport Ltd announced Thursday that it was investing Rs 1,000 crore for expanding the terminal at the airport. G.V. Sanjay Reddy Managing Director said after the expansion the airport would be able to handle as many as 17 million passengers in 2012 from the current 11 million.

ONGC may have to pay $13 billion or Rs 57,000 crore if it were to exercise its right of first refusal to buy Cairn India’s stake in the Rajasthan block. ONGC by virtue of holding 30% of the block has till September 7 to exercise its right of first refusal offer.

Cairn India holds 70% operator interest in the 6.5 billion barrels Rajasthan block that is at the center of its parent Cairn Energy’s $8.48 billion deal to sell its majority stake in the company to Vedanta Resources. At Rs 355 a share, Cairn India’s stake in Rajasthan will be valued at around $13 billion, official sources said.

A unit of Bharat Petroleum Corp signed an agreement with Norwest Energy NL to acquire shale gas acreages in Australia, according to a statement today made to the Bombay Stock Exchange.

Gurgaon-based Lanco Infratech entered into a partnership with Indonesian company Bukit Asam to bid for a 600 megawatt power project in Indonesia sources said. Indonesian state-owned electricity firm PT Perusahaan Listrik Negara sought bids to develop the coal-based power project in southern Sumatra on a build-own-and-operate model with a concession period of 25 years.

Indian Cabinet today approved the nuclear liability bill which will now be introduced to the parliament today for discussion and voting.

TVS Motor Co which currently exports its vehicle units only to Brazil is looking to enter the other major markets of Argentina and Mexico in South America.

Coal India said it will import 6 million tons of coal in financial year 2011. The company plans to price its offering between October 18 and 22 and said it will start exploration in Mozambique blocks shortly.

Petronet LNG said it is talks to source LNG from Qatar and Australia and planning a mega power plant near Kochi LNG terminal.

Petronet LNG Ltd has set up the country’s first LNG receiving and re-gasification terminal at Dahej in Gujarat, and is in the process of building another terminal at Kochi, Kerala.

TRAI recommends 10-digit telephone numbers for fixed lines by December 2011 as the current system was designed for 750 million users. TRAI also said mobile users have exceeded current numbering plan.

Soros’ Quantum Hedge Fund acquired 4% stake in Bombay Stock Exchange from Dubai Financial, part of the sovereign fund Dubai Holding for about $35 million according to sources.

Gainers & Losers

Aurobindo Pharma Limited rose 0.8% to Rs 1,080.00 after the pharmaceutical company got final approval from the US Food & Drug Administration to market Ampicillin sodium injection in multiple strengths.

Bharat Petroleum Corporation Limited surged 3.2% to Rs 697.85 after the petroleum company reported a wholly-owned subsidiary of the company entered into an agreement with Norwest Energy, Australia to acquire stake in two shale gas acreages in Australia.

Crest Animation Studios Limited soared 9.9% to Rs 96.15 after the entertainment studio reported board will meet on August 23 to consider a corporate restructuring plan.

Chennai Petroleum Corporation Limited plunged 6.8% to Rs 264.35 after the petroleum company said stock turned ex-dividend for a dividend of Rs 12 per share for the year ended March 2010.

Emami Limited fell 0.2% to Rs 460.10 after the health and beauty care product company said it is looking at acquisitions in the personal and healthcare sector in domestic and international markets.

Financial Technologies (India) Limited increased 3.9% to Rs 1,407.20 after the investment adviser sees positive sentiments after billionaire investor George Soros reportedly bought close to 4% equity stake in the Bombay Stock Exchange from Dubai Financial.

Gillette India Limited slipped 1.9% to Rs 1,900.00 after the razors and consumer products maker reported fourth quarter net profit plunged 51.2% to Rs 18.61 crore

GVK Power & Infrastructure Limited gained 3.5% to Rs 45.55 after the company plans to buy Siemens Project Ventures'' 40% stake in the Bangalore International Airport and take majority control.

Hindustan Construction Company Limited declined 3.9% to Rs 64.35 after the infrastructure company reported that Lavasa hill city project built by a unit of the company in Pune may be investigated by the ministry of environment and forests.

INOX Leisure Limited gained 2.3% to Rs 76.25 after the multiplexes/film operator launched new multiplex cinema theatre at Jaipur.

Jet Airways (India) Limited spurted 4.5% to Rs 814.70 after the airliner sought the Reserve Bank of India''s approval to raise foreign currency loans to repay expensive rupee loans taken from local banks.

MM Forgings Ltd decreased 1.7% to Rs 110.50 after the steel forging company reported stock turned ex-dividend August 20 for a dividend of Rs 1.50 per share for the year ended March 2010.

MIC Electronics Limited increased 2.3% to Rs 39.95 after the telecommunication equipment company secured 17 different orders collectively worth Rs 20.64 crore from the Indian Railways in first quarter.

NTPC Limited fell 0.3% to Rs 193.25 after the thermal power company’s legal dispute with Reliance Industries over D6 gas may reportedly be heading for a truce, with Solicitor General Gopal Subramanium recommending that NTPC be given gas at a concessional rate under a provision of the production sharing contract.

Orient Ceramics and Industries Limited fell 2.7% to Rs 85.65 after the vitrified and ceramic tiles company said stock turned ex-dividend August 20 for a dividend of Rs 2 per share for the year ended March.

Time Technoplast Limited gained 1.3% to Rs 57.20 after the polymer company acquired plastic products division of Solutia Inc. in Europe.