Shippers, Realtors, Bankers Rise in India

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

Stocks in Mumbai trading closed higher led by a rise in metals and energy related companies. Shipping companies surged after China reported a record surge in iron ore exports in April. Realty companies and banks increased on the optimism that banks are willing to increase lending to developers.

[R]7:00PM Mumbai, 5:30AM New York – Stocks in Mumbai trading closed higher led by a rise in metals and energy related companies. Shipping companies surged after China reported a record surge in iron ore exports in April. Realty companies and banks increased on the optimism that banks are willing to increase lending to developers.[/R]

The Sensex index in India increased 164.19 or 1.37% closed to 12,116.94 and the CNX Nifty increased 58.85 or 1.62% to 3,683.90.

Of the stocks traded on the Bombay Stock Exchange, 1,702 increased, 851 declined and 56 were unchanged. Of the 30 stocks in the Sensex, 19 increased and 11 declined.

Rupee edged higher to 49.24 from 49.58 against a dollar as foreign investors return to add more stock holding. International fund managers added net 700 crore rupees or $140 million to their holdings on May 5.

Metals, mining and oil energy linked stocks gained in trading. In London trading, metal prices of six base and precious metals prices increased 4.2%. Copper gained 2% and aluminum increased 1.9%. Shipping companies surged after China reported 25% increase in iron ore imports in April at its ports. Baltic Dry index surged 8.8% in London at close of yesterday.

Sterlite Industries surged 13% to 516.85 rupees and Hindalco increased 11% to 70.25 rupees.

Crude oil prices in international markets jumped 4.6% to $56.34 a barrel, lifting energy related stocks. Reliance Industries increased 1.8% to 1,914 rupees, Cairn India surged 7% to 215.60 rupees and ONGC added 0.3%.

Oil marketing companies declined as higher crude oil prices dampen their profits or increase their losses. Indian Oil, BPCL and HPCL declined more than 1%.

Tata Steel increased 8.7% to 294.35 and Steel Authority of India Ltd increased 7.5% to 125.55 rupees. Tata Steel sales increased 31% in April increased to 452,000 tons and Steel Authority sales increased 29% to 850,000 tons from a year ago.

Bhusan Steel Ltd surged 36% to 601.70 rupees on a sharp rise in trading volume. JSW Steel Ltd increased 12% to 429.40 rupees on positive industry outlook and despite reporting fourth quarter loss of 39.93 crore rupees.

Real estate developers increased on the optimism that banks and other lending companies are showing greater willingness to support higher lending to the sector. Unitech, Indiabuls Real Estate and Housing Development & Infrastructure jumped more than 2.5%.

Banks closed higher on the global optimism with the health of the U.S. banks and the current center of the world financial crisis. ICICI Bank increased 1.5% to 549.10 rupees and State Bank of India added 3.3% to 1,366.95 and HDFC Bank gained 0.4% to 1,176.75 rupees.

State Bank is expected to report its earnings on May 9 and analysts are forecasting earnings declined between 15% and a rise in 39% in the fourth quarter as reported by Capitalmarket.com.

Software exporters traded mixed. TCS declined 0.47% and Wipro increased 5.8%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 408.33 or 4.55% to 9,385.70, Hang Seng index in Hong Kong increased 383.32 or 2.28% closed to 17,217.89, CSI 300 index in China higher 2.10 or 0.08% closed to 2,767.08. ASX 200 index in Australia increased 71.60 or 1.85% closed to 3,938.70. The KL Composite index in Malaysia lower 0.49 or 0.05% closed to 1,023.47.

The Kospi Index in South Korea increased 7.63 or 0.55% to close at 1,401.08. SET index in Thailand closed higher 4.57 or 0.87% to 527.72 and JSE Index in Indonesia increased 30.52 or 1.70% closed to 1,828.85. The Sensex index in India increased 164.19 or 1.37% closed to 12,116.94.