Momentum in Corporate Financing Lifts Market Outlook in India

Mukesh Buch
09 Apr, 2015
New York City

Wireless telecom stocks declined after the regulatory agency lowered the upper limit on the roaming charges. Reliance Industries extended 2-day rally to 7% after the company is said to have discovered new natural gas field at its KG D6 basin. Vertex plans to increase its stake in GVK Power to 15.24%

[R]6:00 PM Mumbai – Wireless telecom stocks declined after the regulatory agency lowered the upper limit on the roaming charges. Reliance Industries extended 2-day rally to 7% after the company is said to have discovered new natural gas field at its KG D6 basin. Vertex plans to increase its stake in GVK Power to 15.24%.[/R]

Market indexes in Mumbai opened higher and rupee firmed and investors reviewed the latest outlook for debt rating from Moody’s.

The U.S. based credit rating services provider, Moody’s reaffirmed India’s sovereign debt rating at Baa3, the lowest investment grade debt rating and revised the outlook to “positive” from “stable” and noted improving economic prospects.

The U.S. debt rating company, Moody’s, rating views are a suspect when it comes to emerging markets. The inflated and misleading debt rating issued by Moody’s played a key role in the U.S. financial market crisis that led to worldwide recession and more than 10 million people lost jobs.

Rupee closed unchanged at 62.24 against one dollar.

The Sensex Index climbed 177.46 or 0.6% to close at 28,885.21. The CNX Nifty gained 63.90 or 0.7% to 8,778.30.

Gainers & Losers

Adani Power Ltd increased 2.5% to ₹49.85 after a news report suggested that State Bank of India is nearing an agreement with the company to finalize the ₹15,000 crore term loan refinancing proposal for two subsidiaries in Maharashtra and Rajasthan.

Bajaj Corp Limited fell 0.6% to ₹473.80 after net income in the fourth-quarter surged 42% to ₹54.42 crore.

Net revenues in the quarter climbed 28% to ₹236.17 crore.

Cipla Limited dropped 2.3% to ₹719.15 after the company’s U.K.-based subsidiary plans to acquire Brazil-based Duomed Produtos Farmaceuticos Ltd for about ₹2.6 crore or $418,000.

The deal is expected to be completed by the end of next month.

Cadila Healthcare Limited declined 3.2% to ₹1,840.70 after the largest generic drug maker to raise up to ₹10,000 crore through public offering of various securities.

GVK Power & Infrastructure Ltd rose 0.5% to ₹9.39 after Vertex Projects Ltd, one of the company promoters, plans to raise its stake to 15.24% in the company.

Rane Holdings Limited dropped 3.8% to ₹670.50 after the automobile components maker plans to sell its Chennai-based land for about ₹27.75 crore.

Reliance Industries Ltd increased 3% to ₹894.56 and extended 2-day rally to 7% on an unconfirmed news report that the company has discovered a large gas field at MJ1 block in the KG-D6 basin.

Skipper Ltd soared 5.3% to ₹175.60 after the company secured an export order worth ₹400 crore from Colombia.