Sensex Gains; India to Form Infrastructure Fund

Chandrasekhar Atreya
26 Aug, 2010
New York City

India control oil companies will not bid for Cairn India stake. India will float $11 billion fund by the next fiscal year to finance large infrastructure projects. A modest decline in inflation was recorded in the latest read.

[R]5:00 PM Mumbai – India control oil companies will not bid for Cairn India stake. India will float $11 billion fund by the next fiscal year to finance large infrastructure projects. A modest decline in inflation was recorded in the latest read.][/R]

Stocks in Mumbai fluctuated several times and turned negative in choppy trading in the afternoon and rebounded to close higher ahead of derivatives contracts expiry.

The Sensex Index gained 0.26% or 46.71 to close at 18,226.35.

The wholesale price index in India increased 0.1% to 308.1 from 307.8 for the previous week. For the year to the week, average inflation surged 14.75% compared to 7.74% in the year ago period.

An index measuring wholesale prices of agricultural commodities compiled by the commerce ministry rose 10.05% in the week ended August 14 from a year earlier after gaining 10.35% in the previous week, according to statement released in New Delhi today.

Commercial paper debt issues have sharply increased drawing attention from the Reserve Bank. The central bank said it will issue revised guidelines to make sure that investors’ interests are protected.

Speaking during an event to launch RBI’s annual report on Wednesday, Shyamala Gopinath, Deputy Governor, RBI said, “We are in the process of revising the guidelines on CP issues. We would want only rated CPs to be issued. We would discuss the issue with market participants.”

Bangalore-based ING Vysya Life Insurance Company said it will increase its equity base by Rs 227 crore from Rs 1,200 crore this fiscal year and the company is awaiting the regulator’s approval for four new products, a company official said Tuesday.

National Textile Corp, which is selling its mill lands across the country, fixed reserve prices for its properties in Bangalore and Indore and hopes to begin auctions in two months, a top official said.

The state-owned firm fixed a reserve price of Rs 6,000 crore for Indore plot and Rs 5,000 crore for its Bangalore property, Chairman K. Ramachandran Pillai said Tuesday. The company is auctioning 16 acres at its Indore Malwa mill and 1.73 acres at the Minerva Mills in Bangalore.

BHEL said Wednesday it commissioned a 26-megawatt captive gas-based power plant at a refinery in Oman. This is the second unit commissioned by the company at the refinery. Another unit of similar rating was commissioned at the same project in May.

United States offered India and China its full expertise and technical know-how to exploit the full potential of shale gas to reduce dependence on imported oil and move towards its goal of energy independence.

“What we have offered to India is to bring our best knowledge about how you may make that estimate, how you make that resource evaluation and to bring our scientists to them to talk about it,” U.S. Coordinator for International Energy Affairs said in Washington Wednesday.

Representatives from 17 countries including India and China are participating in the two-day international Global Shale Gas Initiative Conference hosted by the U.S. State Department as part of its aim to help nations around the world to reduce dependence on oil.

A herbal drink that tastes like beer, a bio-insecticide product that attracts and kills mosquitoes using bird feather, a transdermal patch for contraceptives drug delivery, and a technology that can make a snake venom into an analgesic that can help cure neuropathic pain are some of the patented technologies that will go on auction in India’s first-ever Tech Transfer 2010 showcase, exclusively for patented pharma products in Ahmedabad.

The one-day patent technologies showcase has been organized by Foundation for MSME Cluster in alliance with Skyquest Technology Consulting, a private company engaged in facilitating buying and selling of patents in India.

Japanese automaker Suzuki Wednesday announced an investment of Rs 500 crore to more than double its production capacity in India to 5.4 lakh units per annum by 2012. The company’s wholly-owned subsidiary Suzuki Motorcycles India Pvt Ltd launched a new 125 cc motorcycle.

“We are aggressively expanding our production capacity to 5.4 lakh units from 2.5 lakh units by 2012,” SMIPL Chairman Katsumi Takata told reporters in New Delhi Wednesday.

Mukesh Ambani, Chairman and promoter of Reliance Industries Ltd, restructured his shareholding in the company by transferring 34% stake to a set of investment firms, which include a large number of limited liability partnerships, according to details filed with the Bombay Stock Exchange.

ONGC, GAIL India and OIL India Ltd will not counter Vedanta Resources bid for a stake in Cairn India, a top official in the Indian Oil Ministry told Reuters Wednesday.

The Planning Commission said Thursday a Rs 50,000 crore Infra Debt Fund for financing infrastructure projects will become operational by beginning of next fiscal year. A panel organized by the Commission to look into the changes required in the regulatory framework for facilitating the setting up of the Infra Debt Fund, is expected to give its report by next week.

Gainers & Losers

Aegis Logistics Limited gained 2.2% to Rs 311.65 after the company said its board will meet on September 1 to consider stock-split and fund raising.

Bajaj Holdings & Investment Limited rose 2% to Rs 768.40 after the investment company said first quarter net profit rose 18.2% to Rs 22.70 crore.

Cera Sanitaryware Limited increased 3.7% to Rs 355.40 after traders and investors accumulated the stock ahead of the record date for a 1:1 bonus issue.

Entertainment Network (India) Limited soared 9.3% to Rs 260.10 after the radio broadcasting Copyright Board approved a revenue sharing arrangement which will lead to significant savings in royalty costs for private FM radio players.

JSW Steel Limited plunged 1.6% to Rs 1,127.40 after the company expects to commission the first unit at its new plant in Karnataka in September 2010.

Maruti Suzuki India Limited gained 0.5% to Rs 1,226.85 after the auto maker’s marketing and sales chief Mayank Pareek said the company is enjoying “good sales this month.”

MphasiS Limited rose 2.2% to Rs 622.90 after the information technology solution provider said third quarter consolidated net profit rose 1.5% to Rs 271 crore.

Oil India Limited increased 1.3% to Rs 1,442.50 after the company’s chairman told the media that the firm is looking for shale gas opportunities in overseas markets.

Patni Computer Systems Limited gained 1.3% to Rs 547.05 after the information technology services company''s American depository receipt increased 3.2% to $23.09 on the New York Stock Exchange on Wednesday.

State Bank of Mysore plunged 9.9% to Rs 1,172.10 after the stock surged 77% in the preceding ten trading sessions.

Tilaknagar Industries Ltd. soared 4.8% to Rs 218.30 after the alcoholic beverage industry reported company''s board approved issuing up to 27.67 lakh convertible warrants on a preferential basis to a promoter group company.

Tata Motors Limited declined 1.2% to Rs 997.65 after the automobile company''s American depository receipt fell 3.62% to $21.30 on the New York Stock Exchange on August 25.