Sensex Extends 3-day Gains; Pharma, IT Exporters Rise

Devan Biswas
16 Feb, 2011
New York City

Stocks in Mumbai closed higher for the fourth day as investors bid up export sensitive stocks. The Sensex gained 0.1% and the rupee edged lower. India and Japan signed a free trade pact that will eliminate tariffs on 94% of trade and lift trade to $25 billion by 2015.

[R]5:00 PM Mumbai – Stocks in Mumbai closed higher for the fourth day as investors bid up export sensitive stocks. The Sensex gained 0.1% and the rupee edged lower. India and Japan signed a free trade pact that will eliminate tariffs on 94% of trade and lift trade to $25 billion by 2015.[/R]

The Sensex index gained for the fourth day in a row as buyers bid up pharmaceuticals and software services exporters.

The BSE Sensex rose 0.1% or 27.10 to close at 18,300.90 The CNX Nifty on the National Stock Exchange gained 0.70 to close at 5,481.00.

Rupee declined 6 paisa to close at 45.76 to a dollar.

Tata Steel, Jindal Steel and Power and Sterlite Industries were among the leading gainers and resource linked stocks rallied.

Unitech Ltd, the second largest real estate developer rebounded more than 8% after the company’s managing director was questioned by police and regulators for its role in 2G license scheme that favored the company bid.

India Japan Sign Free Trade Agreement

Japan and India sign a free trade agreement that will abolish duties on 94% of traded over ten years. The deal is expected to boost exports form Japan and expand its exports base and help India attract much needed investment in infrastructure.

Last December, India and China agreed to expand their trade ties to $100 billion in the next five years after Prime Minister Manmohan Singh met Chinese Premier Wen Jiabao.

Japan is seeking to diversify its supplier base after China cuts its rare earth minerals exports.

The bilateral traded between two nations declined 5% to $10.4 in the year ending in March 2010, according to the commerce ministry.

Gainers & Losers

Bharat Petroleum Corporation Limited rose 0.1% to Rs 605.05 after the company increased jet fuel prices by 4.12% from February 15.

Hexaware Technologies Limited increased 3% to Rs 110.65 after the outsourcing service provider said it expects at least 25% revenue growth to a minimum of $290 million for the year ending in December.

Jindal Steel & Power Limited gained 3.2% to Rs 670.35 after the steel maker got the approval from environment ministry to build steel plant of Rs 25,000 crore in Orissa.

Jain Irrigation Systems Limited surged 5.8% to Rs 215.25 after the agri-business company inaugurated its second micro-irrigation plant in Gujarat.

Piramal Glass Limited advanced 3.9% to Rs 98.00 after the conglomerate said company is planning to invest Rs 260 crore in the next two years.

Tata Steel Limited gained 3.9% to Rs 641.05 after the steel producer reported third quarter consolidated net profit surged 112.21% to Rs 1,003.02 crore and total income rose 8.91% to Rs 28,985.12 crore.