PM Suggests Sustainable Growth

123jump.com Staff
19 Dec, 2007
New York City

Stocks in India traded in a wide range but changed very little at close. Sensex traded in 600 point range. Prime Minister Singh said that India can sustain 9% economic growth for the next four years. He also said that the growth can also accelerate above 10% but in the near term can not remain immune to the global credit market malaise. Larsen & Toubro received contract to build flyover road leading to Mumbai international airport.

[R]10:00AM New York, 7:30PM Mumbai-Sensex marginally gained, reversing early loses.[/R]

The benchmark index closed flat on Wednesday with a marginal gain of 0.06% or 12 at 19,091, reversing the two day loses. Sensex rallied in a wide range between 19,397 and 18,886 levels in the intra-day trade.

Of the stocks traded on the BSE, 1,849 shares advanced, 1,026 stocks declined, and 26 shares remained unchanged.

Of the Sensex 30 shares, 15 declined. Trading turnover on BSE declined to 8,004 crore rupees compared to Tuesday turnover of 8,052.65 crore rupees while trading revenue on the NSE stood at 18,235 crore rupees.

In the broader markets, Nifty edged higher by 0.15%. The 50-share index closed at 5,751. Metal and IT stocks were on demand while heavy selling was visible in real estate and oil & gas shares.

Reliance Energy, ONGC, Infosys, TCS, ITC, Tata Steel, ICICI Bank and Mahindra & Mahindra led the advancers in the index shares. The shares registered gains of over 0.7% each.

Of the NSE-50 stocks, Suzlon Energy, VSNL, Tata Steel, Nalco and Sun Pharmaceuticals were among the key gainers. They advanced by over 1.04% each. VSNL surged 18.4% leading the gainer in the broader market.

ACC, HDFC, ABB, Dr Reddy''s Laboratories, Grasim Industries and Gail India were some of the losers in the broader index. The stocks fell by over 1.9% each.

In Tokyo Nikkei 225 Index decline 177.35 or 1.17% to close down at 15,030.51, in Hong Kong Hang Seng index closed up 296.39 or 1.11% to 27,029.26, in Australia ASX 200 closed lower by 11.80 or 0.19% to close 6,280.80.

In South Korea Kospi Index increased 21.65 or 1.18% to close at 1,861.47, Thailand closed down 8.92 or 1.10% to 804.98, and Indonesia edged up by 11.75 or 0.44% to 2,657.98. India increased by 12.32 or 0.06% to 19,091.96.

Prime Minister Manmohan Singh said on Wednesday that India would not only be able to maintain the high economic growth momentum in the near future but may also be able to raise growth above 10%. This year, India''s GDP is expected to increase by 9% and sustain this for the next four years.

However, the Prime Minister expressed concern over the current global credit market malaise and emphasized that although the country has not been affected, India will not remain immune from the global events. He said the country needs to create buffer stocks of pulses and edibles oils to improve the country''s food security.

Of the BSE shares, Reliance Industries declined 0.9% to 2,704.75 rupees, Reliance Energy surged 4.1% to 1,882.6 rupees on news that the company is planning to make investment in Africa.

News reports said the company is believed to be in talks with the governments of Botswana, Tanzania and Zambia for setting up generation capacities of over 1,000 megawatt (MW).

Tata Steel gained 1% to 824.2 rupees, National Aluminium gained 3.3% to 428.5. Steel Authority of India retreated 0.6% to 258.3 rupees and Hindalco Industries slid 0.7% to 198.35 rupees.

Titan Industries advanced 2.6% to 1,497.05 rupees, Videocon Industries surged 4.3% to 646 rupees. Gitanjali Gems rose 3.1% to 418.5 rupees on news that the company announced that its subsidiary GLL is signing a memorandum of understanding with Mariella Burani Fashion Group of Italy to form a joint venture in India.

Tata Motors shed 1.6% to 691.10 rupees, Bajaj Auto shed 0.7% to 2,776.8 rupees and Maruti Suzuki India retreated 2.4% to 995.3 rupees. Mahindra & Mahindra rose 0.9% to 777.3 rupees, Hero Honda Motors gained 0.3% to 704 rupees.

ONGC advanced 2.7% to 1,180.5 rupees, ICICI Bank surged 1.8% to 1,161.05 rupees, and Infosys rose 1.09% to 1,638.1 rupees.

HDFC retreated 1.8% to 2,763 rupees, Grasim Industries shed 1.7% to 3,575.2 rupees, State Bank of India slid 2 % to 2,258.3 rupees while ACC traded weaker at 3.4% to 1,030.65 rupees.

Larsen & Toubro rose 0.8% to 3,998.25 rupees on news that the company said it had received a contract worth 287 crore rupees to build an elevated road to Mumbai International Airport.