Sensex Rallies 11.3% in September

Chandrasekhar Atreya
30 Sep, 2010
New York City

The benchmark index in Mumbai gained 0.6% and closed up 11.3% in September and soared 14.9% for the year. The index is trailing the record by 4% established on January 11, 2008. Inflation continues to haunt policy makers but sustained foreign fund flows has supported the surge in indexes.

[R]5:00 PM Mumbai – The benchmark index in Mumbai gained 0.6% and closed up 11.3% in September and soared 14.9% for the year. The index is trailing the record by 4% established on January 11, 2008. Inflation continues to haunt policy makers.[/R]

Indian stocks traded higher led by gains in financials and robust foreign portfolio investments.

The BSE Sensex gained 0.57% or 112.78 to close at 20,069. 12. For the month the benchmark index increased 11.3% and for the year so far surged 14.9%.

The index traded at a peak of 20,827 on Jan 11, 2008.

The wholesale price index in India increased 1.2% to 180.9 from 178.7 for the previous week. For the year to the week calculated on point to point basis, inflation surged to 18.31% compared to 16.80% for the previous week.

Overseas fund inflows into Indian equities reached record $18 billion for the year-to-date, surpassing the record $17.9 billion in 2007.

With the Indian economy forecast to grow 8.5% on rising incomes and abundant financing, global investors prefer India as domestic consumption drive the economy unlike China where exports drive nearly one third of the economy.

While, Indonesia saw doubling of inflows to $2.26 billion from a year earlier, investment to India surged 55% from a year earlier.

TCS Ltd said it entered into a pact with British Airways to develop IT software solution for maintenance, repair and overhaul for aviation.

Steel baron Lakshmi N Mittal controlled holding company said it is in the process of completing the sale of its stake in a Kazakh oil firm to China Petroleum and Chemical Corp.

“Mittal investments Sarl is in the process of completing the sale of its 50% stake in Caspian Investment Resources,” a company spokesman said in a statement.

Indian Auto Gas, an energy company engaged in trading of Auto Liquefied Petroleum Gas commissioned its first storage facility in Ratnagiri, Maharashtra.

The storage facility, which is on lease from Finolex Industries, has a capacity to store 10,000 tons with a daily pumping facility of 1,500 tons. The loading bays are fixed with automatic loading arms which the company claims is the first of its kind in India.

Tata Steel said Wednesday it signed an agreement with a consortium of 13 banks, led by State Bank of India, for raising (3.53 billion pounds) Rs 25,000 crore to refinance the loan it took to party fund its European operations.

In its statement, Tata Steel said the new financing structure would be in two parts, a five year loan of about 1.8 billion pound equivalent and a seven year loan of 1 billion pound equivalent. The revolving credit facilities for working capital purposes have been increased to 690 million pounds and will have a tenor of five years.

Asian Development Bank will lend up to $250 million for protection of environment in Goa, Karnataka and Maharashtra.

ADB’s board of directors approved a multi-tranche financing facility of up to $250 million for the Sustainable Coastal Protection and Management Investment program.

Gainers & Losers

Ahluwalia Contracts (India) Limited rose 2.3% to Rs 207.10 after the construction company secured construction orders aggregating Rs 476 crore from various companies.

ADF Foods Limited soared 8.7% to Rs 86.55 after the processed food maker board approved asset purchase pact with Elena''s Food Specialties Inc., USA for an undisclosed sum.

Balrampur Chini Mills Limited gained 2.2% to Rs 92.65 after the sugar maker estimated that central government is expected to lower levy on the sugar industry from 20% to 10% from October in anticipation of a large output.

Cairn India Limited increased 1.5% to Rs 335.75 after the crude oil prices gained more than 2% on the New York Mercantile Exchange on September 29.

DQ Entertainment (International) spurted 3.7% to Rs 116.20 after the company signed licensing and merchandising agreements for `The Jungle Book'' in Israel.

Diamond Power Infrastructure Limited increased 2% to Rs 252.55 after the conductors; cables maker said its transmission tower facility at Vadodara commenced trial production.

Havells India Limited rose 1.4% to Rs 801.65 after the logistics company set October 11, as the record date for a 1:1 bonus.

Indian Oil Corporation Limited declined 2.8% to Rs 418.50 after the crude oil prices gained 2.2% in New York.

Koutons Retail India Limited plunged 19.9% to Rs 172.70 after the apparel retailer reported a credit rating agency suspended its ratings assigned to the retailer citing absence of information.

Kingfisher Airlines Limited increased 1.2% to Rs 74.10 on the reports that the company hired Sanjay Aggarwal as chief executive officer. The second largest domestic airline is struggling with heavy debt load and losses.

LIC Housing Finance Limited declined 1.5% to Rs 1,436.85 on profit booking, after gaining 11.9% in the preceding five trading days.

Maruti Suzuki India Limited fell 1.7% to Rs 1,440.95 after the passenger car maker expects September vehicle sales to rise 32% to 33% from a year ago.

Marsons Limited surged 14.4% to Rs 21.05 after the transformer maker secured an export order worth $20 million from Nigeria for supply of medium power transformer.

MindTree Limited rose 1.2% to Rs 511.80 after the business solution provider looking to launch its 3G smartphone in the United States in the second half of the fiscal year ending March 2011.

Nelcast Limited soared 6.6% to Rs 102.25 after the iron casting company entered into an agreement to sell its investment held in Nelcast Energy Corporation.

Nikhil Adhesives Ltd surged 19.9% to Rs 42.10 after the polymer emulsion maker said Gujarat Industrial Development Corporation allotted five acres plot to the company at Dahej-2 industrial estate to set up a new plant.

Satyam Computer Services Limited declined 8.9% to Rs 90.10 after the information technology said consolidated net loss of Rs 124.60 crore for year ended March.

Somany Ceramics Limited soared 12.3% to Rs 289.70 after the ceramic tile maker scheduled a board meet on October 1, to consider a stock-split proposal.

The Shipping Corporation of India Limited fell 0.8% to Rs 161.90 after the Baltic Dry Index that tracks freight rate declined 1.44% in London yesterday.