Expansion Drives NTPC Higher, Sensex Up

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

At the end of the last week in February, annualized inflation rose to 5.11%, a decline from 6.5% a year ago but an increase from 5.02% at the end of the previous week. The cost of fuel and manufactured items played a key role in the inflation increase. Finance minister P. Chidambaram reiterated that the economy will grow at 8.5% despite global financial markets volatility.

[R]7.30PM Mumbai - India shares gained as investors ignored global markets volatility.[/R]

Market Sentiment

Indian stocks rallied on Friday in the late trade on fresh buying despite the latest data showing an increase in inflation.

The benchmark Sensex index gained 2.6% or 403.17 at 15,760.52 levels. At close of the day of the 30 stocks in Sensex, 24 index shares advanced while 6 shares declined.

In the broader markets, the National Stock Market index Nifty advanced 2.6% or 122.20 at 4,745.80 levels.

On the BSE trading 1,473 shares declined, 1,202 shares advanced and 62 shares remained unchanged.

Real estate shares staged a comeback after declining for the most sessions during the week. IT stocks advanced on fresh buying while metal stocks gained as government approved the new mining policy.

The implementation of National Mineral Policy 2008 is likely to attract foreign direct investment of $250 million per year in the mining sector during the next five years.

Banking shares gained despite the latest data showing an increase in inflation.

Inflation rose to over nine-month high at 5.11% for the week ended March 1, as a result of rise in prices of some manufactured items and aviation turbine fuel, dampening hopes of interest rate cuts by the central bank to boost the declining industrial production.

The wholesale price index-based rate stood at 5.02% in the previous week and 6.51% in the corresponding week a year earlier.

This is the second consecutive week that the inflation rate crossed the 5% mark, the target set by the central bank.

Turnover

Daily turnover on the BSE stood at 5,880 crore rupees and on National Stock Market was at 13,587 crore rupees.

Reliance Natural Resources was the most active stock on the BSE with a turnover of 305.11 crore rupees followed by Reliance Petroleum, Reliance Industries, GSS America Infotech, and Bajaj Holdings & Investment.

Economic News

Finance minister Chidambaram on Friday forecasted the economy will maintain growth levels of above 8.5% in the coming years. The minister also said in parliament that the present volatility in the local stock market reflected global markets conditions.

Reliance Update

Reliance Energy gained 13% to 1,353 rupees and led the advancers in the Sensex index. Reliance Industries rose 4.4% to 2,340.20 rupees.

Gainers and Decliners

Bharti Airtel lost 3.3% to 753 rupees and led the decliners in the Sensex index.

DLF jumped 8.2% to 656.20 rupees. The stock replaced GlaxoSmithkline Pharma in the Nifty index from Friday.

Satyam Computer Services was up 4.6% to 380.85 rupees and Infosys Technologies gained 2.7% to 1,370 rupees.

ICICI Bank surged 4.3% to 873.95 rupees.

Hindalco Industries increased 4.8% to 182 rupees and Tata Steel gained 2.5% to 714.90 rupees.

Jaiprakash Associates gained 7.8% to 236 rupees and it replaced Bajaj Auto in the BSE 30-share Sensex index from Friday.

Bajaj Holdings & Investment settled at 775 rupees. Bajaj Holdings, earlier known as Bajaj Auto, has 30% in Bajaj Auto and Bajaj Finserv, both are expected to be listed separately.

Corporate News

NTPC Ltd on Friday said it will invest 13,000 crore rupees to add 2,700 MW capacity during the next financial year. NTPC, the country''s largest power generation company in terms of sales, surged 4.3% to 194.80 rupees