HCL, ONGC Videsh Acquire

123jump.com Staff
26 Aug, 2008
New York City

Stocks in Mumbai edged higher despite a weakness in global and regional trading. ONGC Videsh is preparing a bid to acquire Imperial Oil for

[R]10:00AM New York, 7:30 PM Mumbai - India’s economy forecasted to grow between 8.1% in April-June period. ONGC Videsh prepared a bid to acquire imperial Oil and HCL acquires Control Point Solutions.[/R]

Market Sentiment

In Mumbai, the BSE 30-share Sensex rose 0.22% or 31.87 to 14,482.22, and the CNX Nifty increased 0.05% or 2.15 to 4337.50. Of the stocks traded on BSE, 1212 gained, 1376 declined and 103 were unchanged. Oil & Natural Gas Corporation gained 1.1% to 1,023.05 rupees on news its unit ONGC Videsh is finalizing a £1.4 billion bid for Imperial Energy.

Trading Statistics

Daily turnover on BSE stood at 3,769 crore rupees compared with 3,255.57 crore rupees yesterday. Mahindra & Mahindra rose 2.05% to 575 rupees and Hindustan Unilever increased 1.89% to 248.50 rupees.

India Economy to Grow 8.1% in April-June Period

Reuters News reported on its Web site today that India''s economy is likely to rise to an annual 8.1% in the three months period ended June on slowing consumer demand.

Service sector, which accounts for close to 50% of GDP, will grow at a rate between 9% and 10% and agriculture sector is expected to increase between 2.5% and 3%.

The Reserve Bank of India, through its tightening monetary policy measures, has increased its cash reserve requirements for banks by 200 basis points in 2007 and an additional 75 basis points to the end of June this year.

Gainers & Losers

Financial stocks rose on easing pressures on the economy as oil prices fell to $113.40 per barrel on a strengthening dollar. HDFC Bank advanced 3.96% to 1,256 rupees, ICICI Bank soared 1.46% to 665.45 rupees and State Bank of India rallied 0.63% to 1,366 rupees.

IT stocks gained on a weakened rupee. Satyam Computer Services edged up 3.36% to 406.50 rupees, Wipro rallied 2.25% to 429.10 rupees, and TCS firmed 1.97% to 834 rupees.

However Infosys Technologies dropped 0.36% to 1,697 rupees after saying it will acquire UK based SAP consulting company Axon Group plc for £407.1 million.

Real estate stocks increased. DLF spiked 0.87% to 499.50 rupees and Unitech advanced 0.62% to 161.30 rupees.


Bharat Heavy Electricals increased 2.04% to 1,723 rupees after winning a contract valued at 140 crore rupees from the United Arab Emirates for two gas turbine generating units of 42 megawatt each.

Telecommunication service providers slumped. Reliance Communications dipped 0.65% to 406.75 rupees and Bharti Airtel fell 0.21% to 812.05 rupees.

Tata Motors lost 0.18% to 433.50 rupees despite assurances by the West Bengal Chief Minister Buddhadeb Bhattacharjee that the government may compensate farmers at Tata Motors'' factory in Singur to resolve a dispute over the Nano car plant.

Sasken Communication Technologies declined 1.27% to 151.15 rupees after the company said it has filed an appeal before the Securities Appellate Tribunal to proceed with its proposed buyback of shares.

TTK Prestige increased 20% to 158.55 rupees after the company said the board will decide next week to consider delisting from the BSE and NSE.

Bosch spiked 13.65% to 4,149 rupees as the company’s board will meet next week to consider a share buyback.

HCL Technologies edged up 2.7% to 229.60 rupees after it reported that the company has purchased Control Point Solutions based in Rutherford, New Jersey.

Ranbaxy Laboratories rose 1.15% to 518 rupees.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 99.95 or 0.78% to 12,778.71, , Hang Seng index in Hong Kong decreased 48.13 or 0.23% closed to 21,056.66.ASX 200 index in Australia decreased 7.40 or 0.15% to close 5,007.50. The KL Composite index in Malaysia decreased 8.23 or 0.76% closed to 1,070.50.

The Kospi Index in South Korea decreased 11.86 or 0.79% to close at 1,490.25, SET index in Thailand closed lower 9.28 or 1.37% to 668.92 and JSE Index in Indonesia decreased 19.68 or 0.92% to 2,107.55. The Sensex index in India increased 31.87 or 0.22% closed to 14,482.22.