Sensex Rebounds, GAIL Bonus

123jump.com Staff
11 Mar, 2008
New York City

Stocks in India rebounded ahead of U.S. Fed and European central banks plan to add liquidity to the credit markets. DLF led the surge in realty stocks. GAIL India surged 7% after it increased spending on pipeline projects and it said it plans to issue bonus shares. ACC jumped 6% on the sale of a unit to HNG Group for 400 crore rupees. Tata Motors plan to raise $1 billion in international markets to pay for the Jaguar and Land Rover from Ford.

[R]10:00AM New York, 7:30PM Mumbai - Sensex gained, led by realty, banks, and industrial companies.[/R]

Market Sentiment

Indian markets gains on Tuesday on late steady buying in real estate and large cap stocks. The 30-share BSE Sensex gained 1.3% or 199.43 to 16,123.15. Of the Sensex share, 17 stocks gained and 13 dropped.

The National Stock Market index, Nifty climbed 1.4% or 65.50. The NSE-50 index closed at 4,865.90 levels.

Capital goods and oil and gas shares rallied on fresh buying.

HDIL, Indiabulls Real Estate, and Unitech were among retail stocks that lifted the markets. Bharat Heavy Electricals, Bajaj Auto, Reliance Industries, ACC, NTPC Ranbaxy Laboratories also advanced.

Of the BSE traded shares, 2,070 shares advanced, 634 declined while 37 shares remained unchanged.

Turnover

Daily turnover on the BSE reached 7,253 crore rupees, higher than 6,896 crore trading volume on Monday while daily revenue on the National Stock Market stood at 15,732 crore rupees.

Reliance Energy was the most active on the BSE with a turnover of 596.69 crore rupees. Reliance Natural Resources Ltd, GSS America Infotech, Reliance Petroleum and Reliance Industries were also among the most active stocks.

Economic News

A recent study by the Confederation and India has projected that bilateral trade between India and Japan can double $15 billion during the next two months on higher trade in products in agriculture and technology.

Japan imports 60% of its food needs but its agricultural imports from India has declined 22% in the last decade from India. Processed food products import in the period has increased only 4%.

The study noted that investment flows from Japan would tremendously grow once the proposed Comprehensive Economic Partnership Agreement is fully implemented. India-Japan CEPA negotiations began in January last year and five rounds of discussions have already been held with the next round scheduled for later this month in Tokyo.

Gainers and Decliners

DLF surged 10.5% to 752 rupees, leading the gainers among the Sensex stocks and Maruti Suzuki India led the decliners in the index with a loss of 3.7%.

Among the real estate shares, HDIL gained 6.7% to 681 rupees, Indiabulls Real Estate advanced 6.6% to 516.50 rupees and Unitech was up 3.8% to 283.30 rupees.

Bharat Heavy Electricals gained 4.7% to 2.001 rupees.

Bajaj Auto climbed 4.8% to 2,078 rupees. The stock surged ahead of March 25 on the shareholder scheme approved by the court.

Reliance Industries rebounded from early losses and settled higher at 3.2% to 2,345.05 rupees.

Cement maker, ACC jumped 5.6% to 809 rupees, NPTC gained 4.4% to 193.25 rupees and Ranbaxy Laboratories ended firm at 4.7% to 453.90 rupees.

Technology shares declined led by Satyam Computer Services and Wipro. Satyam fell 2.9% to 396 rupees and Wipro declined 3% to 390.10 rupees.

Tata Motors lost 2.4% to 658 rupees after the company''s board approved raising additional long-term funds of up to 4,000 crore rupees.