IT Stocks Rise, Indian Oil Bonds

123jump.com Staff
03 Apr, 2008
New York City

An advance in IT stocks in India lifted Sensex in the session. Infosys, Wipro, Satyam and Tata Consultancy gained between 3% and 5%. Bharat Heavy fell after it reported net income for the year rose 17% to 2,815 crore rupees. Indian Oil is expected to issue bonds of 31 billion rupees backed by Indian government to fund the losses generated from selling oil below market price. Separately, Reliance Industries plans to close 1,600 petrol stations.

[R]12:00AM New York, 9:30PM Mumbai – Stocks in IT sector advanced after investors warmed to the earnings rise in the sector.[/R]

Market averages in India rose tracking a rise in the U.S. and Asian markets. India, increasingly linked in the global markets has seen Sensex decline nearly 19% in the first quarter, second worst performer in the region, has been a victim of global markets volatility.

Market Sentiment

The 30-share BSE Sensex advanced 0.52% or 82.15 at 15,832.55, while the CNX Nifty gained 0.37% or 17.4 to 4,771.60.

Of the BSE stocks 1215 rose, 1409 declined and 63 were unchanged.

BSE turnover increased to 4,789 crore rupees from 4,955.40 rupees yesterday and on turnover on the NSE was recorded at 12,413 crore rupees.

Indian Oil Corp to sell bonds worth 31 billion rupees

Reuters news reported that Indian Oil Corp. will sell bonds worth 31.05 billion rupees in the corporate bond market tomorrow, adding that the bonds were issued by the government to compensate it for selling fuel at below the market prices.

Gainers

Much of the gains in the market were driven by IT stocks buoyed by expectations that the U.S. recession may not affect the earnings in the sector. Wipro gained 5.04% to 435.30 rupees, Infosys increased 2.68% to 1,521.65 rupees, Tata Consultancy Services edged up 4.13% to 885.95 rupees and Satyam Computer Services jumped 5.11% to 428.05 rupees.

Capital goods stocks however declined. Bharat Heavy Electricals shed 5.27% to 1,754.95 rupees after the company reported today that net profit in the year ended March rose 16.56% to 2,815 crore rupees.

Larsen & Toubro also fell 0.54% to 2,850.05 rupees.

National Thermal Power Corporation rose 0.1% to 194.25 rupees after the company formed a joint venture with Uttar Pradesh Rajya Vidyut Utpadan Nigam called Meja Urja Nigam that will set up a power plant of 1,320 megawatt in Allahabad district in the state of Uttar Pradesh.

While Reliance Power rose 1.06% to 329.60 rupees, Reliance Energy declined 3.32% to 1,189.45 rupees, Power Grid Corporation of India fell 0.8% to 99.20 rupee and Tata Power Company declined 2.34% to 1,159.30 rupees.

Also Reliance Industries rose 2.14% to 2,393.75 rupees.

State Bank of India declined 0.81% to 1,639.10 rupees announcing in a statement to the Bombay Stock Exchange yesterday that it has completed bond issue to raise 12 billion yen that will carry a coupon rate of 3.36% and mature in five years.

Mahindra & Mahindra fell 2.29% to 651 rupees after it signing a private equity firm ICICI Venture Funds to purchase Italian gear manufacturer Metalcastello.