Sensex in 3-day Rally Gains 4.5%, Tata Motors Up

123jump.com Staff
15 Feb, 2011
New York City

Mumbai stocks extended gains for the third day and rebounded 4.5%. The Sensex index has declined 15% form the peak in the first week in January. LIC Housing surged after a government controlled fund resumed investing. Tata Motors global sales rose 16% in January. Reliance MediaWorks loss widens.

[R]5:30 PM Mumbai – Mumbai stocks extended gains for the third day and rebounded 4.5%. The Sensex index has declined 15% form the peak in the first week in January. LIC Housing surged after a government controlled fund resumed investing. Tata Motors global sales rose 16% in January. Reliance MediaWorks loss widens.[/R]

Stocks in Mumbai extended three-day gains to 4.5% recovery after a sharp correction last week. Short covering and buying from foreign investors also contributed to the surge in the index.

The BSE Sensex rose 0.3% or 71.60 to close at 18,273.80 The CNX Nifty on the National Stock Exchange gained 25.00 to close at 5,481.00.

The rupee closed at 45.81 to a dollar and gold closed at 20,509 for ten grams.

Tata Motors gained after global sales increased 16% in January and Tata Power increased after quarterly net increased three-fold.

LIC Housing surged after Central Board of Trustees for Employees’ Provident Fund Organization permitted investing in the company following the meeting on January 28. The investment resumption was announced by CBT member D L Sachdev.

EPFO has invested Rs 454 crore in the company’s bonds and can invest up to Rs 800 crore in the company.

Reliance MediaWorks said quarterly loss increased to Rs 57.04 crore from Rs 27.33 crore a year ago. Net sales in the quarter ending in December rose to Rs 215.30 crore from Rs 204.76 crore.

Fineotex Chemical fixed the offering price range between Rs 60 and Rs 72.

The company plans to raise between Rs 25 crore and Rs 30 crore and use the proceeds to expand special chemicals production capacity to 13,125 tons from the current 5,000 tons a year.

The company generates 25% of revenues through exports.

Stock Movers

Ispat Industries Limited rose 2% to Rs 22.75 after the iron and steel maker reported second quarter net loss of Rs 409.31 crore compared to net profit of Rs 18.87 crore from a year ago

Mahindra Composites Limited soared 11.6% to Rs 64.60 after the polymer composite compounds maker company's board approved rights issue.

LIC Housing Finance Limited surged 10.8% to Rs 190.60 after the Labour ministry controlled Employees' Provident Fund Organization resumed investment in the company.

Tata Power Company Limited soared 5.9% to Rs 1,267.90 after the power utilities company reported consolidated net profit surged 347.8% to Rs 441.37 crore and net sales fell 1.7% to Rs 4,412.91 crore

Tata Motors Limited surged 8.1% to Rs 1,237.85 after the automobile company’s global vehicle sales rose 16% to 98,998 units in January from a year ago month.

Videocon Industries Limited increased 1.2% to Rs 197.95 after the home appliances maker said first quarter net profit increased 23.31% to Rs 162.36 crore and net sales rise 12.28% to Rs 3,151.17 crore.

Unitech Limited rose 0.2% to Rs 34.95 after the real estate developer reported third quarter consolidated net profit slumped 36.9% to Rs 111.36 crore and total income fell 14.8% to Rs 659.79 crore.