Confident Investors Return to India

123jump.com Staff
03 Jun, 2009
New York City

In hectic trading, investors in Mumbai snapped up industrial, cement and consumer stocks. The optimism about the economy, rising international interest and new infrastructure projects are still contributing to investor enthusiasm. Investor confidence in trading was palpable.

[R]6:00 PM Mumbai, 8:30 AM New York – In hectic trading, investors in Mumbai snapped up industrial, cement and consumer stocks. The optimism about the economy, rising international interest and new infrastructure projects are still contributing to investor enthusiasm. Investor confidence in trading was palpable.[/R]

Trading in Mumbai was hectic and investors jumped to buy stocks in the

In hectic and dynamic trading stocks in Mumbai closed higher, however the benchmark indexes were mixed. Investors participated with vigor and snapped up consumer, industrial and cement stocks as prospect of economic recovery look solid.

The Sensex index in India decreased 4.01 or 0.03% closed to 14,870.90 and CNX Nifty increased 5.45 to 4,530.70. In the last five sessions the Sensex has added 9.5%.

Of the 30 stocks in the Sensex, 17 increased and 13 declined. In trading on the BSE, 2,011 stocks advanced, 808 declined and 51 were unchanged.

Trading turnover increased to 9,415 crore rupees compared to 7,231 crore rupees and on the NSE increased to 26,272 crore rupees from 25,721 crore rupees.

Gainers & Losers

Cement stocks gained after the May shipment increased more than expected.

ACC increased 4.3% to 818.30 rupees after it reported May shipments increased 1.1% to 1.81 million tons. Jaiprakash Associates added 4.1% to 225 crore rupees after shipments surged 25.7% to 800,000 tons. Ambuja Cement edged up 4.2% on shipment increased of 8.3% to 1.64 million tons.

Grasim Industries added 4.1% but Ultra Tech Cement declined 2.6%. The Aditya Birla Group that includes Grasim and Ultra Tech has annual production capacity of 42 million ton.

Essar Oil surged 8.4% to 181.10 rupees on the media reports that the company will raise $500 million through institutional investors and $1.5 billion in secondary offering from retail investors.

Steel stocks closed higher as foreign investors focus on industrial and cyclical stocks Tata Steel increased 2.1% to 484 rupees JWS Steel added 2.8% and Nalco inched up 2.5%.

Tech Mahindra surged 18.2% after SEBI approved the open offer to acquire Satyam Computer Services. Tech Mahindra through the offer plans to acquire 20% additional stake at the 58 rupees, the same price it acquired 31% stake in the company.

Consumer products linked companies surged. Tata Tea added 9.4%, ITC gained 5.8%, Unilever inched up 2.2%, United Spirits closed up 4.5% and Dabur India and Colgate Palmolive increased 2.7%.

Real estate stocks surged on the expectations of higher fund flows from overseas investors. Unitech added 3.1%, Shobha Developers surged 10% and Mahindra Lifespace closed 5%.

Reliance Communications added 4.2% to 332.65 and Bharti Airtel decreased 0.3% to 798 rupees.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 37.36 or 0.38% to 9,741.67, Hang Seng index in Hong Kong increased 187.39 or 1.02% closed to 18,576.47, CSI 300 index in China higher 74.29 or 2.59% closed to 2,939.39. ASX 200 index in Australia increased 61.90 or 1.56% closed to 4,017.20. The KL Composite index in Malaysia lower 8.22 or 0.77% closed to 1,055.40.

The Kospi Index in South Korea increased 2.04 or 0.14% to close at 1,414.89. SET index in Thailand closed higher 7.95 or 1.38% to 582.25 and JSE Index in Indonesia increased 12.27 or 0.61% closed to 2,010.91. The Sensex index in India decreased 4.01 or 0.03% closed to 14,870.90.