Sensex in India Rebounds 1% on Industrial Production Surge of 10.8%

Chandrasekhar Atreya
10 Dec, 2010
New York City

Stocks in Mumbai gained more than 1% after industrial production surged 10.8% in October following a 4.4% increase in September. Canada

[R]5:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai gained more than 1% after industrial production surged 10.8% in October following a 4.4% increase in September. Canada’s Bombardier gets order for $446 million from SpiceJet.[/R]

Mumbai stocks pared some of Thursday’s record losses, after better-than-expected October industrial production turned stock markets bullish once again.

The BSE Sensex gained 1.32% or 253.82 to close at 19,496.18. For the week the index lost 2.36% or 470.75 points. The CNX Nifty on the National Stock Exchange gained 91.50 to close at 5,858.00.

The rupee gained 9 paisa to close at 45.93 today.

Industrial production in India grew at the fastest pace in three months, threatening to stoke inflation and straining existing power and transportation capacities.

Output at factories, mines and utilities rose 10.8% in October from a year earlier, after only a 4.4% increase in September, the statistics office said today in its statement in New Delhi.

Reserve Bank of India Governor Duvvuri Subbarao said this week that India’s inflation remains still above “tolerance levels” as the country battled rising prices. The central bank’s goal is to keep the headline wholesale inflation level between 4% and 4.5%. The Commerce Ministry is scheduled to announce inflation data on December 14.

Bombardier based in Canada won an order for 15 Q400 NextGen turboprop aircrafts from SpiceJet Airline worth $446 million.

The Montreal-based company said in a statement that the order is valued at $446 million but could go up to $915 million if all 15 options are converted to firm orders.

International gold prices were steady in choppy trade as a dollar rally took a breather, and uncertainty over Europe’s fiscal health continued to attract investors to bullion.

Oil & Natural Gas Corp, India’s largest explorer, gained in Mumbai trading after the company confirmed bidding for 25% stake in Exxon Mobil Corp’s Angola Block 31.

The offshore Block 31 may start production in 2012 and output may reach 150,000 barrels or more per day, State Minister for Oil Jitin Prasada said in Parliament on Thursday.

Healthcare services provider, Fortis Healthcare said today it has taken over management of the 150-bedded Vivekananda Hospital and Research Center in Uttar Pradesh in northern India.

The company has expanded its network to 51 hospitals in 13 states, in line with its strategy to strengthen its presence in India’s tier-II cities.

Tata Motors announced today it will offer a four-year manufacturer’s warranty on Nano to boost its sales as the sales dropped 85% to 509 in November. The company has been struggling with sales after at least two cars caught fires that the company claims were related to “specific” issues with those vehicles.

Tata extended warranty to four years or 60,000 kilometers, whichever is earlier, to existing and new owners of the Nano, the company said in its statement.