Power Stocks Rally

123jump.com Staff
16 Oct, 2007
New York City

Stocks in Mumba trading edged lower after rising to a record level in the last five session. Sensex fell 0.04% or 6.80 to close at 19,051. Of the 30 stocks in the index, 12 ganied and 18 declined. Stead rise of rupee against dollar is likely to hurt exports from smaller companies. CII, industry organization, cautioned that the export target of $160 billion in the current fiscal year may not be achieved. ICICI Bank led the gainers and Infosys led the decliners in the Sensex index.

[R]10:00AM New York, 7:30PM Mumbai - Sensex retreated on weak global markets. The Bombay High Court gives Reliance companies ultimatum. Exporter hurt by the rising rupee.[/R]

The BSE 30-share Sensex lost 0.04% or 6.8 points to 19.051.9. The CNX Nifty shed 0.04% or 2.4 to 5.668.05. The BSE reported a turnover of 9.768 crore rupees and NSE clocked a turnover of

Of the 30 shares of the Sensex, 12 gained and the remaining declined. Of the shares traded on BSE, 1,183 climbed, 1,538 lost and 367 were unchanged.

The Bombay High Court issued an ultimatum to Reliance Industries and Reliance Natural Resources Ltd of with a time limit of four months to renegotiate a gas supply agreement.

Justice A.V. Mohta said the agreement has to be in-line with the family arrangement between Ambani brothers before the split of Reliance group. In the event that the two parties fail to resolve the dispute, they can go back to the courts.

The Confederation of Indian Industries said that the recent rise in rupee against dollar has hurt the small and medium scale exporters. Rupee has gained 11.5% against dollar while other currencies have risen at a slower pace. In the last year, Chinese yuan gained 3.6%, Pakistani rupee rose 0.3%, but Sri Lankan rupee fell 4.6%. India set export target of $160 billion for the fiscal year ending in March 2008 which may be difficult to achieve in the face of rising rupee.

Bharat Heavy Electricals Limited said it has signed an export contract for two gas turbine power generating units of 42 Megawatts each from the United Arab Emirates worth 150 crore rupees. With this order the company has received order for 15 power projects that in the West Asia region.

Of the 30 stocks in the Sensex index ICICI Bank led the gainers with a rise of 5.5% to 1,156.60 rupees on news that its subsidiary, ICICI Venture Funds Management plans to launch $2 billion real estate fund next month. Infosys shed 3.1% to 1.868.25 rupees leading the decliners in the index stocks.

Other index shares other gainers included Hindalco Industries with a rise of 4.6% to 197.45 rupees, HDFC Bank at 0.95% to 1.504.60 rupees, Tata Power Company at 23.5% to 1,370.90 rupees, Reliance Energy at 3.09% to 1.904.40 rupees, Maruti Suzuki India at 2.28% to 1,186.80 rupees, and Reliance Communications at 1.1% to 760.65 rupees.

Of the Sensex shares other decliners included State Bank of India with a loss of 1.7% to 1,924.35 rupees, Reliance Industries at 0.6% to 2,648.30 rupees, Bharti Airtel at 1.5% to 1,109.80 rupees, Hindustan Unilever at 3.08% to 212.45 rupees, Mahindra & Mahindra at 2.3% to 814.80 rupees, and Larsen & Toubro edged lower at 2% to 3,346.25 rupees.