Realty, IT, Capital Goods Stocks Surge

123jump.com Staff
15 May, 2008
New York City

Stocks in Mumbai trading surged higher, led by a sustained gains in capital goods, real estate and software export companies. Rupee continue to hover near 42.60 to a one U.S. dollar level. Rising crude prices and worries related to slower growth in the exports kept the ruppee in check. The Indian rupee has now dropped 10% from its peak in the late December. Larsen Toubro led the gainers in the Sensex with a rise of 5.4% to 2,983 and Reliance Industries added 3.5% to 2,619 rupees.

[R]10:00AM New York, 7:30PM Mumbai - Real Estates, IT and capital goods shares drives the market higher, government rules out reduction in oil import duty.[/R]

Market Sentiment

India stocks rose on Thursday with a rise in real estate, software and capital goods leading the gainers. The decline in crude oil prices from earlier record high of $127 a barrel and firm Asian markets also bolstered confidence.

In Mumbai trading, the 30-share BSE Sensex climbed 2.2% or 375.19 at 17,353.54. On the NSE, S&P CNX Nifty gained 2.1% or 103.50 at 5,115.25 levels.

Of the 30-member Sensex pack, 24 advanced while the rest slipped. Among the BSE traded shares, 1,737 shares gained, 941 shares declined and 78 shares remained unchanged.

Turnover

Daily turnover on the BSE stood at 6,439 crore rupees while daily revenue on the NSE was at 13,843 crore rupees.

Aishwarya Telecom was the most active stock on the BSE with the turnover of 883.06 rupees. Reliance Communications, Reliance Industries, Reliance Petroleum and Satyam Computer Services were the other most active stocks.

Crude oil taxes will not be lowered

Finance Minister P Chidambaram has decided not to lower import duties on crude oil, which has been hovering around $125 a barrel in the international market. The record high prices have led to large losses at state owned oil marketing companies.

The government has not been able to pass on the burden of spurt in crude oil prices because of the resistance from Communist parties that are part of the current ruling government.

Government considering reduction steel export duty

Steel Secretary R.S. Pandey on Thursday that the government is considering the request by the steel industry to reduce export duty. He re-emphasized the point that steel companies are expected to lower prices in the domestic markets regardless of the export price taxation.

Bhushan Steel, National Steel, Surya Steel and Maharashtra seamless are few of the smaller steel companies that have lowered steel prices.

The secretary said that the current government fiscal steps have helped to lower steel prices by 20% across various grades and quality levels.

Gainers and Decliners

Larsen & Toubro gained 5.4% to 2,983.90 rupees and led gainers in the Sensex stocks. Larsen and Toubro on Thursday said it has sold its ready-mix concrete business to Lafarge India for 1,480 crore rupees.

DLF gained 3.2% to 643.10 rupees and Unitech rose 4.6% to 287 rupees.

IT shares gained on fresh buying as the rupee held near 13-month lows against the dollar. Infosys Technologies rose 3.5% to 1,889.40 rupees. Wipro surged 0.9% to 508.20 rupees while TCS rose 2% to 989.55 rupees. Indian rupee has jumped 10% to 42.60 against dollar from 38.70 in the late December of 2007.

ICICI Bank gained 3.9% to 931.50 rupees.

Reliance update

Reliance Industries surged 3.5% to 2,619 rupees on reports that the company plans to convert its fuel retail outlets into malls and multiplexes. Reliance Industries, the largest oil company is holding talks with its dealers in Uttar Pradesh for the same.

Reliance Communications jumped 5.4% to 589.50 rupees on reports its infrastructure arm Reliance Infratel has received Sebi''s approval for public issue.