Indian Realty Stocks Surge; Nano Bookings

123jump.com Staff
05 May, 2009
New York City

Stocks in Mumbai trading were unchanged after a rally of 6.4%. DLF surged after it planned to raise capital and sell its non-core assets. Sobha Developers board approved capital increase and sell of the company to foreign institutional investors. Tata Motors reported a surge in Nano bookings.

[R]5:00PM Mumbai, 7:30AM New York – Stocks in Mumbai trading were unchanged after a rally of 6.4%. DLF surged after it planned to raise capital and sell its non-core assets. Sobha Developers board approved capital increase and sell of the company to foreign institutional investors. Tata Motors reported a surge in Nano bookings.[/R]

The trading sentiment in Mumbai focused on domestic stocks; after a surge in yesterday’s trading most investors were on the sidelines.

The Sensex index in India decreased 3.67 or 0.03% closed to 12,131.08 and the CNX Nifty 50 Index increased 7.90 or 0.2% to 3,661.90. The benchmark indexes traded in a tight range but were choppy.

The Sensex index has rebounded 49% from its low in March 9.

Of the stocks traded on BSE, 1,615 increased, 933 declined and 99 were unchanged. Daily turnover on the exchange increased to 5,811 crore rupees from 4,753.56 crore rupees. Of the 30 stocks in the benchmark index, 11 gained and 19 declined.

A private read on manufacturing suggested that the industry is expanding as it processes more orders and better visibility on orders.

Rupee in currency trading advanced to 49.45 a dollar from 49.91 to a dollar.

Gainers & Losers

DLF, the largest real estate developer surged 11.2% to 260.05 rupees after media reports suggested that the company is looking to raise 5,500 crore rupees and sell its non-core assets of hotels and power divisions to repay debts.

Sobha Developers increased 8.8% to 112.15 rupees after the company held a board meeting to raise up to 200 crore rupees and permit 100% investment from foreign institutional investors.

UltraTech increased after cement shipment increased 17.4% in April from a year ago, however, Gujarat Ambuja declined 2.7% to 79.80 after it reported shipment increase of 14.3%.

Tata Motors surged 6% to 272.05 rupees after it reported that the company has received 203,000 bookings and 2,500 crore rupees, nearly twice the estimate of the company.

Maruti Suzuki India declined 1.7% to 825 rupees and company plans to develop a smaller car competing with Tata Motors’ Nano with an engine size of 600 cc. Mahindra & Mahindra declined 2.9% to 534.10 rupees.

HDFC declined 5.2% to 1,856 rupees after vaulting 14%. The lender was the leading decliner in the Sensex, after Deutsche Bank lowered its rating and said the company is “fairly valued.”

Suzlon Energy surged 11% to 73 rupees after it raised its stake to 76% in REpower Systems.

TCS declined 2.6% to 649.80 rupees after analysts estimated that the company may lose its contract with the bankrupt Chrysler LLC as the U.S. administration prepares the company for bankruptcy reorganization.

Jubilant Organosys surged 14% to 133 rupees after the company signed a research collaboration with AstraZeneca.

Reliance Industries declined 1% to 1,867 rupees and Reliance Petroleum lost 0.7% to 116 rupees. The SEBI issued a notice to RPL for an investigation of insider trading and the violation of unfair trade practices.

Reliance Industries has agreed to offer 1 share for every 16 shares of Reliance Petroleum.

Higher crude oil prices dragged state oil marketing companies stocks. HPCL declined 3.4%, Bharat Petroleum dropped 3.2% and Indian Oil Company fell 1.3%.

Asian Markets Review

The Hang Seng index in Hong Kong increased 49.03 or 0.30% closed to 16,430.08, CSI 300 index in China higher 12.71 or 0.47% closed to 2,727.01. ASX 200 index in Australia increased 7.40 or 0.19% closed to 3,890.40. The KL Composite index in Malaysia lower 0.49 or 0.05% closed to 1,008.87.The Markets of Tokyo were closed today.

The JSE Index in Indonesia decreased 16.08 or 0.90% closed to 1,772.07. The Sensex index in India decreased 3.67 or 0.03% closed to 12,131.08. The Markets of South Korea and Thailand were closed today.