Sensex in 6-day Rally Surges 6%; Hero Honda Wins Investment Approval

Devan Biswas
29 Mar, 2011
New York City

Stocks in Mumbai traded higher for the sixth day in a row after crude oil prices eased. The index has soared 6% since the low on March 21. Hero Honda won a government approval for foreign investment. Punjab National Bank and Corporation Bank sold stocks to the government of India at a premium.

[R]4:15 PM Mumbai – Stocks in Mumbai traded higher for the sixth day in a row after crude oil prices eased. The index has soared 6% since the low on March 21. Hero Honda Motors won a government approval for foreign investment. Punjab National Bank and Corporation Bank sold stocks to the government of India at a premium.[/R]

Stocks in Mumbai traded higher for the sixth day in a row after crude oil eased. The benchmark index opened higher and traded in the positive zone in the session and built on the early gains in the afternoon trading.

The Sensex index in Mumbai closed higher 177.66 or 0.9% to 19,120.80 and the Nifty index increased 49.10 to 5,736.35.

In Asia, Japanese investors sold stocks on lingering worries related to radiation leak near the troubled Fukushima power plant. Tokyo Electric Power found toxic plutonium near the plant and government denied the reports that radioactive water is spilling over to Pacific Ocean.

The rupee in trading strengthened to Rs 45.55 to a dollar. Price of gold for ten grams fell to Rs 20,669 and for silver dropped to Rs 54,800 for one kilo.

Gold and silver prices are trading near 3-decade high and imports of silver in India is expected to decline more than 30%. The price of silver has hovered above Rs 50,000 a kilo for more than two months.

Stock Movers

Hero Honda Motors increased 3.8% to Rs 1,557.95 after the Cabinet Committee on Economic Affairs approved the company proposal to receive foreign direct investment of Rs 4,500 crore.

McNally Bharat Engineering Company increased 1.1% to Rs 221.90 after the company won an order of Rs 115 crore from Neyvelie Lignite Corporation.

Punjab National Bank increased 1.8% to Rs 1,171.70 after the state controlled bank raised Rs 184 crore after it sold shares to Government of India 15.09 lakh (1.509 million) shares on a preferential basis.

Puravankara Projects surged 12.2% to Rs 115.15 after the real estate developer said it is in the process of starting a Rs 1,700 crore project in Chennai.

Usha Martin declined 3.5% to Rs 57.90 after the company said a fire broke out at its steel plant in Jamshedpur.

Corporation Bank increased 1.6% to Rs 582 after the company sold on a preferential basis stock to the Government of India and raised Rs 308.99 crore. The company sold 46.92 lakh shares or 4.69 million shares each at Rs 648.49 premium.

Dewan Housing Finance Corp increased 11.2% to Rs 249.10 after it completed the purchase of Deutsche Postbank Home Finance in partnership with Wadhawan Housing and Caledonia Investments Plc.

Aban Offshore increased 1.5% to Rs 623 after the company said its subsidiary agreed to sell its 50% stake in Venture Drilling AS to Norway based Petrolia ASA.

FAG Bearings India increased 2.2% to Rs 808.90 on a heavy trading volume.

Airlines stocks traded higher after crude oil prices declined in New York and London trading.

Jet Airways increased 2.2%, Spice Jet gained 1.2% and Kingfisher Airlines added 1.1%.