Sensex Bull Run in India

Chandrasekhar Atreya
14 Sep, 2010
New York City

Stocks in Mumbai gained for a sixth trading day and the index is up 21% in the last four months. India starts reporting inflation series from August. Rupee strengthens for a fourth day in a row. Wind power maker, Suzlon plans expansion in China.

[R]5:00 PM Mumbai – Stocks in Mumbai gained for a sixth trading day and the index is up 21% in the last four months. India starts reporting inflation series from August. Rupee strengthens for a fourth day in a row. Wind power maker, Suzlon plans expansion in China.[/R]

Indian stocks rose for the sixth straight trading day extending its 30-month high reached a few days earlier.

The Sensex added 0.7% or 138.63 to 19,346.96 for its highest closing after January 17, 2008, with two-thirds of its components increasing. The CNX Nifty Index on the NSE advanced 0.5% to close at 5,795.80.

India’s benchmark wholesale price index rose 8.5% in August from a year earlier after rising 9.8% in July, calculated using a new base fiscal year 2004, the Commerce Ministry said in New Delhi today.

Consumer items widely used by middle class like ice-cream, mineral water, microwave ovens, washing machines, gold and silver will be reflected in the new series of WPI inflation to be released today.

The new series of Wholesale Price Index for August will have additional 241 items and change the base year from 1993-94 to 2004-05, a senior Commerce & Industry official said in New Delhi on Monday.

With these items the WPI will measure a total of 676 items against the existing 435, to give a better picture of the price variation.

Suzlon Energy Ltd, India’s biggest maker of wind turbines, plans to expand capacity in China as that market remains the world’s largest.

The China plant will be able to manufacture turbines with a combined generating capacity of 1,000 megawatts each year by 2013, Chairman Tulsi Tanti said in an interview in Tianjin Monday.

S. Kumar’s Nationwide Ltd plans to raise as much as $50 million in a share sale to large investors according to its sale document. The shares will be priced at Rs 79.99 at the least according to the sale document.

Antique Capital Markets Pvt Ltd, JP Morgan India Pvt Ltd, and Edelweiss Capital Ltd will be managing the issue.

Indian rupee strengthened for a fourth day in a row after overseas investors increased their holdings of stocks and bonds to record levels. The rupee increased 0.2% to 46.325 to a dollar.

Gainers & Losers

Arihant Capital Markets Limited increased 1% to Rs 258.45 after the financial services company fixed September 24 as the record date for a 2-for-1 stock-split and 3:5 bonus issue.

ABB Limited rose 0.7% to Rs 789.55 after the board approved acquisition of Bangalore based Metsys Engineering and Consultancy for about Rs 8.50 crore.

Bengal Tea & Fabrics Limited declined 1.6% to Rs 64.00 after fire broke out at the spinning section of the company''s textile unit on September 12.

DQ Entertainment (International) increased 2.2% to Rs 105.35 after the company signed a home video distribution agreement for its 3D animated series ''Iron Man-Armored adventures season 1'', with Thailand-based TIGA Entertainment Co.

First Leasing Company slipped 4.2% to Rs 74.70 after turning ex-dividend for dividend of Rs 1.80 per share for the year ended March.

Godawari Power and Ispat Limited fell 0.8% to Rs 219.95 after the steel intermediate products maker turned ex-dividend of Rs 2.50 per share for the year ended March.

Gujarat Alkalies and Chemicals Limited plunged 3.9% to Rs 121.70 after turning ex-dividend of Rs 3 per share for the year ended March.

Hindustan Construction Company Limited rose 0.4% to Rs 63.50 after the company''s unit Lavasa Corporation filed draft prospectus with the Securities & Exchange Board of India for an initial public offer.

HDFC Bank Limited gained 2.3% to Rs 2,335.25 after its American depository receipt rose 4.38% to $175.94 on the New York Stock Exchange on September 13.

Infosys Technologies Limited rose 1.3% to Rs 2,975.95 after the global technology services’ American depository receipts surged 3.82% to $64.71 on the Nasdaq on September 13.

Ispat Industries Limited declined 3.1% to Rs 21.25 after the steel maker started exploring an option of selling their stake in Ispat to rival steelmakers Tata Steel and the Indian unit of ArcelorMittal.

Madhucon Projects Limited rose 0.8% to Rs 152.00 after the infrastructure company''s unit Simhapuri Energy achieved financial closure of its 300 megawatt Phase II thermal power plant at Krishnapatnam in Andhra Pradesh.

Nitin Fire Protection Industries Limited decreased 3.4% to Rs 314.65 after it turned ex-dividend of Rs 3.50 per share for the year ended March.

Prism Cement Limited rose 0.7% to Rs 60.50 after the company declared a lock out at its tile manufacturing plant situated at Karaikal in Pondicherry, with effect from September 7.

Pioneer Distilleries Limited surged 5% to Rs 72.50 after the promoters of the company agreed to sell 54.69% stake in the company to liquor major United Spirits at Rs 101 each.

Suzlon Energy Limited increased 1.3% to Rs 51.70 after the wind power company''s subsidiary Suzlon Energy (Tianjin) secured a 50 megawatt order from one of China''s largest power producers.

Sonata Software limited plunged 1.3% to Rs 55.55 after the company''s founders are in talks to sell their stake and appointed KPMG to manage the process.

Sterlite Industries (India) Limited rose 2.6% to Rs 170.80.

Tricom India Limited gained 2.5% to Rs 19.80 in early trading after the company entered into a definitive agreement to acquire US based healthcare service provider GTESS Corporation through its US unit -- Tricom Infotech Solutions Inc.

Venus Remedies Limited spurted 3% to Rs 327.30 after the pharmaceutical company received European Union patent for its research anti-infection product Sulbactomax.