India Stocks, Rupee Rise; Power Sector Attract Investments

Chandrasekhar Atreya
11 Oct, 2010
New York City

Stocks in Mumbai traded and the rupee closed lower after world leaders failed to build a consensus around the dollar. Rupee and other currencies advanced against the dollar. Engineering exports rise 16% in August on demand mainly from the U.S.

[R]5:00 PM Mumbai – Stocks in Mumbai traded and the rupee closed lower after world leaders failed to build a consensus around the dollar. Rupee and other currencies advanced against the dollar. Engineering exports rise 16% in August on demand mainly from the U.S.[/R]

Stocks in India traded higher after the world financial leaders meeting in Washington failed build a consensus and settle latest currency spat. Investors from U.S., Japan and Europe are directing funds to emerging markets in search of higher returns.

The BSE Sensex gained 0.44% or 89.63 to close at 20,339.89. The CNX Nifty on the National Stock Exchange gained 32.40 points to close at 6,135.85.

The rupee was little changed to trade at Rs 45.14 to a dollar.

Economists are increasingly worried that rising international flows to emerging markets may overheat these economies.

Billions of dollars have been poured into Brazilian bonds, Chinese real estate and Indian equities as interest rates in Japan, U.S. and Europe hover between zero and 1%.

Led by demand from the U.S. market, engineering exports grew by 16% in August from a year earlier to $3.22 billion on increasing demand.

In August 2009, the engineering exports stood at $2.78 billion, according to data by Engineering Export Promotion Council.

The government and the Reserve Bank of India will nudge foreign banks in India to operate in unbanked areas and relatively smaller towns like their local counterparts, in new rules for conversion of their existing branches to fully-owned subsidiaries.

The proposed guidelines expected to be unveiled soon will encourage foreign banks, which wish to commence business here and all those already operating in the country, to open branches in smaller cities.

The power sector may attract as much as a whopping 140,000 crore in the next three years, as the government gears to allot projects of total capacity of 28,000 megawatts.

Power Finance Corp, the state-owned company facilitating the development of ultra mega projects of 4,000 megawatts each has identified seven locations across the country.

China’s Sinochem approached National Mineral Development Corporation for a joint bid to acquire Canada’s PotashCorp, the world’s largest fertilizer company by capacity.

The move by Sinochem to rope in NMDC as a possible partner in what could be one of the largest deals in recent history, is backed by the assumption that an individual bid by a Chinese company could be thwarted by the political establishment in Canada.

Fortis Global Healthcare Holdings said Sunday that it will acquire the healthcare business of Hong Kong-listed Quality Healthcare Asia for an aggregate consideration of around Rs 882 crore.

In a statement on Sunday, the company said the deal marks an important step in achieving the promoter family vision of creating a pan Asia healthcare business.

The Tatas are restructuring the housing business division of the group by shifting a division that builds low-cost houses, to a new subsidiary in a bid to tap a rising demand for more affordable homes.

The new unit of the Tata Housing Development Company will invest over Rs 2,000 crore to construct houses costing between Rs 5,00,000 and Rs 35,00,000. Tata’s first low-cost housing project, widely known as Nano housing, is coming up at the Western Mumbai suburb of Boisar.

Gainers & Losers

Bharat Forge Limited gained 3.1% to Rs 381.00 after the firm''s joint venture with Paris-based Alstom SA has emerged as the lowest bidder for the largest order for supply of power generation equipment in India.

CMC Limited surged 18.8% to Rs 2395.10 after the software company second quarter consolidated net profit soared 25.9% to Rs 43.62 crore.

Cairn India Limited increased 2.1% to Rs 345.00 after the energy explorer said miner Vedanta Resources is likely to raise the open offer price for minority shareholders of Cairn India.

CORE Projects and Technologies Limited increased 1.6% to Rs 291.90 after the software development signed a pact with Gujarat Knowledge Society.

Gallantt Ispat Ltd. closed at Rs 67.40 after a 34.80% premium over the initial public offer price of Rs 50.

Glenmark Pharmaceuticals Limited rose 0.3% to Rs 307.10 after the company''s US unit received final approval from the US drug regulator to market Pramipexole Dihydrochloride tablets in multiple strengths.

Hindustan Motors Limited soared 6.4% to Rs 26.55 after the motor and spare part maker proposed to write down its equity capital by half and write off its securities premium account and adjust the amount against its losses.

Jaihind Projects Limited gained 2.8% to Rs 236.10 after the construction firm secured orders of Rs 94.38 crore from Brahmaputra Cracker & Polymer for piping works at its ethylene cracker units.

Nirma Limited spurted 7.1% to Rs 240.50 after the soaps and pharmaceutical maker said it has received a proposal from the promoters to delist the shares of the company from the stock exchanges.

Prime Focus Limited increased 2.1% to Rs 705.05 after the digital post production company expects a 15% to 20% rise in revenue in the current financial year driven by large 2-D to 3-D film conversion contracts.

Procter & Gamble Hygiene and Health Care Limited gained 2.3% to Rs 2,223.25 after Chairman R A Shah said at a shareholders'' meeting on October 8, that the company will consider stock-split at its upcoming board meet.

Sintex Industries Limited gained 1.3% to Rs 434.00 after the plastics and textile maker second quarter consolidated net profit surged 74.96% to Rs 100.11 crore.

Steel Strips Wheels Limited fell 0.05% to Rs 290.90 after the wheel rims maker secured an overseas order worth about 120,000 euros from a German based company for supply of 10,000 wheels.

Samkrg Pistons and Rings Limited surged 5% to Rs 98.95 after the auto component maker second quarter net profit surged 66% to Rs 2.54 crore.

Supreme Infrastructure India Limited soared 4.1% to Rs 275.35 after the infrastructure company secured two orders aggregating Rs 85.40 crore.

Sparsh BPO Services Ltd spurted 10% to Rs 78.10 after the call centre board will seek shareholders'' approval for delisting the company''s shares from the Bombay Stock Exchange.

Suzlon Energy Limited rose 2% to Rs 58.50 after the board will meet October 11, to consider an issue of about 3.19 crore equity shares to IDFC Private Equity.

Tata Steel Limited rose 2% to Rs 639.85 after the steel maker on London Metal Exchange gained 2.82% to $3,820.80 on October 8.

Vivimed Labs Limited rose 0.7% to Rs 330.85 after the chemicals and pharmaceutical said board approved raising funds through various modes.