Sensex Rises Marginally; Gold in India Soars

Chandrasekhar Atreya
08 Sep, 2010
New York City

Stocks in Mumbai fluctuated but closed higher at the end of the day. Basmati exports expected to go up due to floods in Pakistan. Gold price in Mumbai traded above record at Rs 19,000 for ten gram. Ohio State in the U.S. bans outsourcing of IT and back-office projects.

[R]5:00 PM Mumbai – Stocks in Mumbai fluctuated but closed higher at the end of the day. Basmati exports expected to go up due to floods in Pakistan. Gold price in Mumbai traded above record at Rs 19,000 for ten gram. Ohio State in the U.S. bans outsourcing of IT and back-office projects.[/R]

India stocks fluctuated several times but closed higher at the end of trading.

The Sensex Index gained 0.12% or 21.65 to close at 18,666.71. The CNX Nifty Index on the National Stock Exchange was little changed at 5,602.75.

Basmati rice shipments from India may go up by about 22% after unprecedented floods in Pakistan destroyed crops, cutting supplies, according to India’s biggest exporter.

India’s overseas sales may go up by about 500,000 tons in the year from October 1, from this year’s estimated export of 2.3 million tons, KRBL Ltd Chairman Anil Mittal said. He also expected India to lift a ban imposed in 2008 on varieties other than Basmati.

Sun Pharmaceuticals Industries said it may need to pay as much as $37 million to increase its stake in Taro Pharmaceutical Industries Ltd, after Israel’s highest court ruled that Sun could proceed with its offer for takeover of Taro.

Gold futures struck a new high of Rs 19,211 per 10 grams on Tuesday, tracking strong overseas markets, breaching the earlier peak of Rs 19,198 set on June 8.

Ohio State of the U.S. banned Tuesday outsourcing of government IT and back-office projects to offshore locations such as India, raising fears that similar moves by other American states could come as they are struggling to cope with high unemployment rates.

The world’s largest companies are planning to boost their international investment over the next two to three years, with most of the investment planned in major emerging economies, according to a United Nations study.

China, India, Brazil are the top three target countries for foreign direct investment until the end of 2012, with the United States, for years the number one, now in the fourth place, the U.N. trade and development agency UNCTAD said.

Declared sick and closed down in 2001, Kolar mines may glitter again, after three parliamentary committees constituted in 1994, 1997 and 2000 to explore gold deposits in Kolar have now submitted a report stating that at least 3,000,000 tons of gold reserves lie unexploited.

Last week the Union Cabinet cleared a proposal to revive the mines that have been shut down for nine years now.

Telecom operators in India added 17 million subscribers in July taking the total number of mobile users in the country to 652.42 million, the Telecom Regulatory Authority of India said Wednesday.

According to data provided by the regulator, the wireless subscriber base increased from 635.51 million in June to 652.42 million in July registering a growth of 2.66%.

Global telecom equipment vendors are expected to garner around $3 billion in the first wave of 3G rollouts in India, making it the largest global telecom contract in 2010.

The six winners of 3G airwaves in India, Vodafone Essar, Bharti Airtel, Reliance Communications, Idea Cellular, Aircel, and Tata Teleservices, are poised to place equipment contracts collectively worth $3 billion in the next 30 days, executives with these companies say.

Mining Global Aerospace bagged an outsourcing contract worth up to $10 million to make structural components for the extended range fuel cells of the Boeing P-8A Poseidon multi-mission maritime aircraft.

India’s merger and acquisition activity seems to be fading as August was the leanest since September 2009 with total deal volume of $4.2 billion, according to research form VCCEdge.

Gainers & Losers

Amines & Plasticizers Limited gained 4.1% to Rs 53.00 after the ethanolamines and morpholine maker turned ex-dividend today for dividend of Rs 1 per share for the year ended March.

Bartronics India Limited spurted 14.5% to Rs 116.90 after the data capture solutions provider gained amid high volumes on bargain hunting after a recent steep slide.

Binani Cement Limited fell 1.5% to Rs 83.75 following profit booking after sharp rally on September 7.

Garware-Wall Ropes Limited declined 1.7% to Rs 79.60 after the comapny turned ex-dividend today for a dividend of Rs 2.50 per share for the year ended March.

Gammon Infrastructure Projects Limited surged 6.6% to Rs 25.80 after the Patna Highway Projects, a special purpose vehicle of the company for implementing a highway project, achieved financial closure for an aggregate loan amount of up to Rs 846 crore.

Goodricke Group Limited gained 4.9% to Rs 144.10 after the tea cultivator reports tea prices may rise after pest damaged crops in the main growing area of the northern region.

HEG Limited decreased 3.4% to Rs 324.00 after the manufacturer of graphite electrodes turned ex-dividend today for a dividend of Rs 10 per share for the year ended March.

Indian Oil Corporation Limited slipped 2.6% to Rs 414.00 after the refiner turned ex-dividend today for a dividend of Rs 13 per share for the year ended March.

Man Industries (India) Limited fell 0.2% to Rs 105.25 after the carbon steel pipe maker secured orders worth Rs 1,200 crore from international & domestic customers for supply of two lakh tons of large diameter pipes.

Mercator Lines Limited soared 7.4% to Rs 56.05 after the logistic and mining chalked out a $500-million capital expenditure plan for expansion of coal mines and offshore activities.

Maruti Suzuki India Limited fell 0.6% to Rs 1,308.35.

Mercator Lines Limited soared 7.4% to Rs 56.05 after freight rate index gained 1.3% to 2,918 in London on September 7.

Neyveli Lignite Corporation Limited gained 1.1% to Rs 162.50 after the lignite mine reports the company expect to take part in an ultra mega power project that is planned at Cheyyur in Tamil Nadu.

Piramal Healthcare Limited increased 2.2% to Rs 521.85.

Suven Life Sciences Limited soared 9.5% to Rs 32.10 after the drug intermediates and fine chemical secured two products patents, one each in Australia and in Mexico for a new chemical entity for treating disorders associated with neurodegenerative diseases.

Spicejet Limited rose 1.7% to Rs 77.45 after the airline company will fly to international destinations from October.

Simplex Castings Limited fell 1.5% to Rs 102.00 after the fabricated equipments maker turned ex-dividend today for a dividend of Rs 2.25 per share for the year ended March.

Shree Renuka Sugars Limited increased 2.4% to Rs 74.20 after the reports the company is looking to set up an integrated sugar-cum-ethanol plant in a joint venture with state-run HPCL.

Sun Pharmaceutical Industries Ltd. gained 2% to Rs 1,756.25 after the pharmaceutical reports Supreme Court of Israel ruled in favor of the company and paved the way for closing of its offer for Taro Pharmaceutical Industries.

Steel Authority of India Limited rose 0.5% to Rs 198.15 after the steel maker increased product prices early this month.

Tata Steel Limited rose 0.5% to Rs 579.40 after the diversified steel producer talks with banks to raise up to $5.5 billion loan to refinance debt at its UK unit Corus.