Sensex Up 1.1%

123jump.com Staff
06 Sep, 2007
New York City

Sensex in India rebounded 1.1% reflecting general trading sentiment. Stocks in Mumbai closed higher in a broad rally in auto, cement, banks, and financial stocks. of the 30 stocks in the index 27 closed higher and 1,700 increased in value in BSE trading. State Bank of India is planning 1,500 crore bond offering in Mumbai. Auto stocks rallied lifted by general sentiment in the market. Refineries are seeking 15% price increase in diesel, 6% in petrol, and 30% in kerosene.

[R]9:30AM New York, 7:00PM Mumbai – Deal making and expectations of strong industrial activities in the current quarter lifted the index.[/R]

Sensex in Mumbai trading closed up 170.16 or 1.1% to 15,616.31. CNX Nifty closed up 42.75 or 0.96% to 4,518.60.

Of the stocks traded on Bombay Stock Exchange, 1,698 closed higher 1,050 declined, and 74 were unchanged. The daily turnover on the exchanges was 4,646 crore rupees compared to 5,167 rupees in the previous session. The turnover on the National Stock Exchange declined to 9,937 crore rupees from 10,939 crore rupees a day ago.

The broad rally in the market was evident in oil and gas, consumer durables, auto, and banking stocks. Of the 30 stocks in the Sensex, 27 closed higher and 3 declined.

State Bank of India increased 2.6% to 1,635 rupees. The bank plans to raise 1,500 crore rupees in a bond issues.

Cement stocks led the rally. Birla Corporation jumped 3.6% to 317 rupees followed by 1.7% rise in ACC to 1,101 rupees, 1.6% gain in Ambuja Cement to 140 rupees, and 4% in India Cements to 274 rupees.

A day after Maruti warned that sales growth may be lower in the rest of the year, investors bid up auto stocks. Maruti Suzuki jumped 0.6% to 878 rupees followed by increases in Tata Motors of 2.1% to 712 rupees, Hero Honda Motors of 2.7% to 652 rupees and Bajaj Auto of 1.5% to 2,340 rupees.

Hindustan Unilever jumped 1.9% to 216 rupees on the news that its Assam personal care products plant has ended seven week long strike. The normal operations are expected beginning next week.

Welspun Gujarat lost 5.8% to 241 rupees and Raymond declined 0.6% to 273 rupees. Raymond is planning to launch women apparel group with a retail chain of 175 stores.

Saregma India soared 10% for the second day to 260 rupees. Yesterday Sonanta Investments purchased 10.6 lakhs or 1.06 million shares. Networth Stock Broking increased 5% for the second day after the company said that it is negotiating with several investors but failed to name them. Traders suggested Hiduja Group is likely to buy a stake in the company.

Hindustan Zinc added 3% to 724 rupees after the company lowered zinc price by 3.7% to 139,200 rupees to a ton and lead price was lowered by 6% to 139,100 rupees to a ton.

Hindoostan Spinning & Weaving Mills added 5% for the second day in a row after the news that the company has sold 8 acre land in Mumbai for 350 crore rupees to Akruti Nirman.

[R]7:00AM New York, 8:00PM Tokyo - Japanese stocks rebound in volatile trading Thursday on weak U.S housing market data. Japan digital camera exports jumped 35% in July. Nippon Steel lifts profit estimates.[/R]

Tokyo finished up 0.61% paring losses of as much as 2% in morning trade. Investors remain uncertain and concerned with the events in the credit markets. The continued volatility in the U.S. and unknown scale of exposure and losses emanating from sub-prime lending in its banking system keeps investors on the sidelines. Yesterday Nikkei 225 fell 1.6%, the heaviest since decline this week.

Of the 225 Tokyo shares, 122 stocks gained, 93 dropped while 10 remained unchanged. Of the index stocks, 32 shares gained over 2%.

Nikkei 225 in Tokyo trading ended up 0.6% or 98.55 at 16,257.00 recovering from early morning losses caused by reports U.S. homes sales plunged 12% in July. Technology shares rebound on higher exports. The yen gained sharply overnight before retreating to 115.3 per dollar from yesterday’s closing rate of 116.1.

The Japan Camera and Imaging Products Association announced Wednesday digital camera exports surged 34.7% to 7.3 million units in July from a year ago, driven by single-lens reflex models. Shipments in value terms rose 24.4% to 153.3 billion yen while exports of digital SLR cameras were up 35% to 580,000 units. Digital camera exports in July expanded 38.2% to 6.45 million units. Exports to Europe grew 39%, North America up 37.8% and rest of Asia soared 31%.

Of the Nikkei 225 stocks, Nippon Oil Corp led gainers rallying 9.1% helped by firmer global oil prices followed trading firm, Itochu Corp up 5.1%. Tosoh Corp finished higher 4.6%, Softbank Corp added 4.51% and Toray Industries rose 4.22%. Technology related stocks Minebea Co Ltd, Trend Micro Inc, KDDI Corp, NTT Data Corp rose 3.31%, 2.8%, 2.5% and 2.1% respectively.

Of the index shares, real estate, financial and industrial stocks dropped. Hitachi Zosen paced decliners slumping 11.5% while giant land developer Sumitomo Realty plunged 4.3% after stronger gains Wednesday. Tokyu Land Corp fell 4.23%, Daiwa Securities Corp down 3.64% and Kayima Corp lost 3.5%.

Steelmaker, Nippon Steel said Thursday it will pay a 5-yen per share dividend in the interim to September, up from 1-yen per share 12 months ago, according to its revised profit estimates. The group predicts net earnings in the half-year will climb to 170 billion yen, from earlier forecasts of 160 billion yen. Nippon Steel targets profit before tax will rise to 280 billion yen from 270 yen, as previously expected. The shares closed up 1.8% in Tokyo.

Marubeni Corp ended higher 1.43% after reporting Wednesday its U.S unit, Marubeni American Corp had acquired shares in Canadian trailer hiring firm, Train Trailer Rentals Ltd. No figures were released. Train Trailer has engaged in leasing business for dry and refrigerated freight trailers and container chassis for 35 years, according to Marubeni.

Nissin Food Products Co said Wednesday it will raise the prices of almost its entire instant noodles in January by between 7% and 11%, for the first time in 17 years, owing to rising international wheat prices. Already, there are concerns that firming world wheat prices will have a direct negative impact on domestic grain products.