India Awaits Production Data; Reliance Comm Finalizes $1.9 Billion Loan

Devan Biswas
09 Mar, 2011
New York City

Stocks in Mumbai closed higher as gold and silver traded near record prices. Market is awaiting industrial production data on Friday. After the close China Development Bank finalized the $1.9 billion loan facility for Reliance Communications.

[R]4:15 PM Mumbai – Stocks in Mumbai closed higher as gold and silver traded near record prices. Market is awaiting industrial production data on Friday. After the close China Development Bank finalized the $1.9 billion loan facility for Reliance Communications.[/R]

Stocks in Mumbai trading edged higher as political concerns eased and oil prices edged lower in international markets.

The regional party, DMK agreed to a seat sharing deal with the Congress Party and continued to provide support to the ruling coalition in New Delhi.

The Sensex index opened higher but dropped in the negative by mid-afternoon and rebounded towards the close. Industrial production data is expected to be released on Friday.

December production increased 1.6% and in January production is expected to increase between 3% and 7%.

The Sensex in Mumbai increased 30.30 or 0.02% to 18,469.95 and Nifty index added 0.05% or 10.20 to 5,531.00.

Of the 30 stocks in the Sensex index, 16 increased and 14 fell.

Rupee closed at 45.79 to a dollar and gold price for ten grams declined 21,118.00.

Stock Movers

Reliance Industries increased 0.9% to Rs 993 after production at its largest oil block Krishna Godavari basin is expected to increase to 67 million standard cubic meters a day from the current 53 million cubic meters a day.

Reliance Communications soared 9% to Rs 98.95 and after the close the media reports suggested that China Development Bank finalized the loan facility of $1.9 billion or Rs 8,700 crore.

Reliance Infrastructure increased 2% and Reliance Capital, 3.7% and Reliance Power gained 1.3%.

Bharti Airtel declined 0.6% after the largest telecom carrier in India launched its 3G services today.

Infosys declined 0.5% and company’s chairman told reporters at a conference that the company is looking for acquisitions in healthcare and government services.

DLF, the largest property developer, increased 1% and the company said it plans to sell property in Indore between Rs 900 and Rs 1,000 a square feet.

Hero Honda in a volatile trading closed up 1.1% to Rs 1,535. Hero Investments controlled by its founder agreed to buy 26% stake in the company from Honda at sharply lower price of Rs 740.