Sensex in 4-Day Gain; Gujarat Pipavav IPO

Chandrasekhar Atreya
09 Sep, 2010
New York City

Stocks in Mumbai gained for the fourth consecutive day to keep the index at a 30-month high. Sale of passenger cars surge 33% in August. India approves stake sale of Manganese Ore (India) Ltd. Tata Power plans to increase power capacity to 25,000 MW by 2017.

[R]5:00 PM Mumbai – Stocks in Mumbai gained for the fourth consecutive day to keep the index at a 30-month high. Sale of passenger cars surge 33% in August. India approves stake sale of Manganese Ore (India) Ltd. Tata Power plans to increase power capacity to 25,000 MW by 2017.[/R]

Indian stocks gained for a fourth straight day and extended the 30-month high, just before the eve of a festive season likely to witness a surge in consumer spending.

The Sensex Index gained 0.71% or 132.95 to close at 18,799.66.

An Index measuring wholesale prices of agriculture products including lentils, rice and vegetables compiled by the Commerce Ministry rose 11.47% in the week ended August 28 from a year earlier after gaining 10.86% in the previous week, according to a statement released in New Delhi today.

The wholesale price index in India increased 0.5% to 314.0 from 312.5 for the previous week. For the year to the week, average inflation surged to 15.50% compared to 8.88% in the same period a year ago.

Passenger car sales in India surged in August from a year earlier, as economic growth and new models boosted demand. Domestic sales of cars rose 33% from a year earlier to 160,794 units, the Society of Indian Automobile Manufacturers said in their statement in New Delhi today.

The industry association estimates that annual vehicle sales may double to 3 million by 2015.

The Indian Cabinet approved the sale of stakes in Manganese Ore (India) Ltd, the Home Minister P. Chidambaram said in New Delhi today.

Lanco Infratech said Thursday that a 1,320 megawatt power plant developed by a group firm in Orissa achieved financial closure with a debt component of Rs 5,544 crore and equity component of Rs 1,386 crore.

A consortium of 14 banks and other lenders led by ICICI have given the loan, the company said in a statement.

Tata Power said it plans to invest Rs 70,000 crore to increase capacity to 25,000 megawatt by 2017, a top company official said.

“The company plans to spend Rs 70,000 crore to increase capacity to 25,000 megawatts by 2017,” Tata Power’s Chairman Ratan Tata told shareholders at the company’s AGM in Mumbai on Wednesday.

NMDC Ltd is keen on acquiring up a 10% stake in Australian mining firm Riversdale Mining, in which Tata Steel also has 19.38% stake holding, a top official of the company said on Wednesday.

Gujarat Pipavav Port Ltd listed at Rs 56.10 on the NSE, a premium of Rs 10.10 or almost 22%.

Gainers & Losers

Atul Auto Limited rose 0.4% to Rs 142.10 after the three-wheel auto maker sales jumped 91.79% to 1,728 units in August from year ago.

Eveready Industries India Limited declined 1.8% to Rs 78.10 after the company turned ex-dividend today for a dividend of 50 paise per share for the year ended March.

Gujarat Pipavav Port Ltd traded at Rs 56.05 on the BSE at 23.70% premium over the initial public offer price of Rs 46 per share.

Hindustan Unilever Limited gained 1.3% to Rs 277.85 after the consumer goods company hiked the price of its detergent brand Rin by 8% in markets of Gujarat and Uttar Pradesh.

Jindal Saw Limited fell 0.8% to Rs 212.45 after the pipe manufacture turned ex-dividend today for a dividend of Rs 1.25 per share for the year ended March.

Kothari Products Limited plunged 5.1% to Rs 547.95 after turning ex-dividend today, for a dividend of Rs 20 per share for the year ended March.

Kale Consultants Limited increased 2.1% to Rs 142.70 after reports the French back office provider Accelya is close to acquiring a controlling stake in the company from one or more of its promoters.

KEC International Limited surged 6.2% to Rs 521.45 after the recent acquisition of SAE Towers Holdings LLC, USA, along with its operating subsidiary companies in Brazil, Mexico and the USA.

Karuturi Global Limited spurted 11% to Rs 24.70 after the rose cultivator said shareholders approved the issue and allotment of 3.63 crore equity shares on preferential basis.

KSK Energy Ventures Limited soared 6.5% to Rs 176.55 after the power and mining company reported that the Malaysian billionaire T Ananda Krishnan''s Usaha Tegas Sdn plans to invest $250 million in the company.

Lanco Infratech Limited gained 1.6% to Rs 70.00 after the Lanco Babandh Power a group company achieved financial closure for a large power project in Orissa.

Oil and Natural Gas Corporation Limited rose 0.2% to Rs 1,355.55 after the oil explorer turned ex-dividend for a dividend of Rs 15 per share for the year ended March.

Royal Orchid Hotels Limited rose 2.4% to Rs 87.85 after the hotels and resorts entered into the Mumbai hospitality market.

Steel Strips Wheels Limited increased 2.6% to Rs 262.75 after the automotive wheel rim company secured an overseas order worth about 120,000 euros from Pneumat Trading a distributor of wheel & tyre assemblies in Eastern Europe.

State Bank of Travancore rose 2% to Rs 881.05 after the bank raised its benchmark prime lending rate by 25 basis points to 12.75% with effect from September 3.

Tata Power Company Limited fell 1% to Rs 1,259.60 after the chairman Ratan Tata told the media that the company plans to invest Rs 70,000 crore to reach its targeted installed capacity of 25,000 megawatt by 2017.

Vindhya Telelinks Limited spurted 10% to Rs 437.20 after the wire products company is expected to win a massive Rs 7,582 crore contract from state-run BSNL to build an optic fiber cable network for Indian armed forces.