Sensex Surges 3%, India Lowers Energy Prices

123jump.com Staff
28 Jan, 2009
New York City

The Sensex index added nearly 3% for the second day in a row on short covering ahead of expiry of January derivative contracts. Tata Motors gained after UK offered loan guarantees for its UK luxury car operations Jaguar and Land Rover. India to lower petrol, diesel and gas prices effective tomorrow.

[R]10:00AM New York, 7:30PM Mumbai- The Sensex index added nearly 3% for the second day in a row on short covering ahead of expiry of January derivative contracts. Tata Motors gained after UK offered loan guarantees for its UK luxury car operations Jaguar and Land Rover.[/R]

Indian stocks gained for the second straight trading session on short covering ahead of the expiry of the January 2009 derivative contracts tomorrow.

The surge was also propped by strong global cues on hopes that the U.S. will pass a massive stimulus package and limit the widening global recession brought on by reckless speculation in the U.S. financial system.

In Mumbai, the BSE 30-share Sensex index rose 2.8% or 253.39 to 9,257.47, and the CNX Nifty advanced 2.8% or 78.15 to 2,849.50.

Of the stocks traded on the BSE, 1,412 rose, 1,048 declined, and 64 were unchanged.

Trading Statistics

Daily turnover on the BSE stood rose to 3,593 crore rupees from 3,083.50 crore rupees yesterday.

Indian Finance Minister to Meet Bankers on Stimulus Package

The Indian government reported in a statement today that the finance minister Pranab Mukherjee will chair a meeting with bankers next week to discuss on ways that can be used to ensure the speedy implementation of the government’s stimulus package and improve credit flow.

Reserve Bank of India yesterday left its repo and reverse repo rate unchanged after slashing 350 basis points since October. The central bank lowered its growth target rate to 7% from 7.5% to 8%.

India Approves FDI of 12.77 billion rupees

Economic Times of India reported today that government has approved 31 foreign investment proposals for 12.77 billion rupees, including a 1 billion rupee plan for Morgan Stanley.

However, Japanese mobile operator NTT DoCoMo’s deal to acquire 26% equity in Tata Teleservices was referred to the cabinet committee as its investment at 139.43 billion rupees exceeds the stipulated threshold.

Gainers & Losers

Reliance Industries advanced 3.8% to 1,273.15 rupees and Oil and Natural Gas Corporation rose 3.4% ahead of its third quarter results today. After the close the company reported nearly 43% decline in earnings.

Maruti Suzuki India fell 3.2% after hiking prices between 5,000 and 10,000 rupees for its models.

Tata Motors increased 4.6% after the British government guaranteed £2.3 billion of loans to help troubled U.K. luxury auto operations of Jaguar Land Rover.

Tata Steel rose 2.6% after the company reported today that its net profit fell 56.4% to 466.24 crore rupees in the three months to December from the same period a year earlier.

Financial stocks rose as the Reserve Bank of India left its key rate unchanged. HDFC Bank gained 2.6% and State Bank of India jumped 2% after its net profit advanced 37% to 2,478.42 crore rupees.

ICICI Bank climbed 7.1%.

IT stocks increased. Wipro soared 3.6%, Infosys Technologies gained 2.7%, and HCL Technologies rose 1.2% after its net profit rose 56.8% to 398.01 crore rupees in the second quarter ended December from the previous quarter.

TCS advanced 1.4% and Satyam Computer Services rose 16% after the company appointed Boston Consulting Group as Management Advisors.

Hanung Toys & Textiles rallied 19.3% after the government banned import of cheap toys from China.

Jagran Prakashan declined 1.9% after its net profit declined 40% in the three months to December from the same period a year ago.

United Phosphorous rose 3.5% after its consolidated net profit increased 33% in December quarter from the comparable year ago period.