Record High Sensex in India

Elena
04 Apr, 2006
Mumbai

Sensex in India rose 74 points to a new record on strong liquidity and buying in banking stocks. Investors remain optimistic on the earnings for the new fiscal year. VSNL, Ranbaxy, Relaince Industries and ITC rose on news. Stock trading turnover remained at $1billion level in the session.

[R]8:45AM Sensex registers second record in April.[/R]
Sensex in India rose 74 points to 11,638 at close on strong buying from recently launched mutual funds. Banks and select industrial stocks remained in favor. 1,557 stocks advanced and 978 stocks declined with 49 remaining unchanged. At the morning opening Sensex managed to gain 150 points, however settled at a lower level in a volatile trading. In the last six months market has Sensex has advanced 51%.

Reliance Industries raised $550 million in a private placement at $1.55 per share for a 27 million ton refinery project. RIL closed at Rs. 840. Other refineries joined the rally. HCPL and BPCL rose 7% and 4% in the session. VSNL, international telecom and Internet services provider rose 5.5% to Rs. 500 on the recent acquisition news. Tata Motors lost 1% despite the news that March unit sales rose 27% to a record level of 55,400. Mphasis BFL dropped 2% on the news that the acquisition offer from American company EDS is at a discount to the current market price. Mphasis trades at Rs. 211 and the offer is at Rs. 204.50 per share. In other IT news Geometric Software rose 20% in anticipation of Q4 earnings results. In other major movers, Thermax and BOC India jumped 14% and 10% respectively. Apollo Tyres rose 10% on the news that the management is to discuss the various financing options to fund new acquisitions.


[R] 8:15 AM European averages lost ground at mid-day.[/R]
European markets lost ground at mid-day, following a strong trading session Monday. The decline was contributed to a mixed closing of U.S. markets overnight as investors locked in profits, as well as weakness in mining stocks, such as Rio Tinto and BHP Billiton, which failed to sustain recent gains. On the merger-and-acquisition front, Arcelor eased 1.8% after it unveiled a series of takeover defenses, including a special payment of more than $6 billion to shareholders. Automakers brightened the gloomy mood as DaimlerChrysler, Porsche, Volkswagen gained, following the release of U.S. sales data yesterday. The German DAX 30 fell 0.2%, the French CAC 40 lost 0.5%, and London FTSE 100 dropped 0.4%.


[R]7:45AM Asian markets finished largely higher. The Nikkei dropped.[/R]
Asian-Pacific benchmarks finished broadly higher. The Nikkei ended its seven-session winning streak to close in the negative after hitting a six-year high on Monday. The Japanese index fell 0.2% to 17,292.91, dragged by weakness in the tech sector and exporter blue-chip stocks like Kyocera, down 1.7%, Tokyo Electronics 1.6%, Honda Motor and Toyota Motor each falling 0.5%. Data released by BOJ, which showed that Japan’s monetary base declined 1% for the first time in five years, caused weakness among banking and insurance stocks with Mitsubishi UFJ Holding falling 1.6% and Mizuho Financial Group, down 0.3%. Across the region, Hong Kong’s Hang Seng reversed from earlier losses to rise 0.2% to 16,100.09, hitting a five-year high on fresh fund flows. South Korea’s Kospi advanced 0.4%, led by tech and auto stocks. India’s Sensex hit an all-time high of 2.5% at 11,564.36, lifted by foreign fund buying.