Rally in Indian Stocks for 13-Week Long

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

Stocks in India closed higher for the thirteenth week in a row. The global rally in stocks and commodities and Parliament election results sustained investor enthusiasm. Businesses and investors are hoping that the government budget will focus on infrastructure spending.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in India closed higher for the thirteenth week in a row. The global rally in stocks and commodities and Parliament election results sustained investor enthusiasm. Businesses and investors are hoping that the government budget will focus on infrastructure spending and investments in power generation projects.[/R]

Stocks in India closed higher for the thirteenth week in a row. The global markets rally and UPA coalition election advances have sustained investor enthusiasm.

Investors expect that the government budget to be released in less than a month will encourage investment in banks and insurance companies, provide additional financing for infrastructure developments and sustain expansion of power generation capabilities.

The Sensex index in India increased 94.87 or 0.63% closed to 15,103.55 and CNX Nifty increased 137.95 or 3.1% to 4,586.90.

Daily turnover on the BSE decreased to 8,934 crore rupees from 9,175 crore rupees and on the NSE increased to 26,776.46 crore rupees.

Of the stocks in the Sensex index, 20 stocks increased and 10 declined. In trading on BSE, 1,514 stocks closed higher, 1,315 declined and 54 were unchanged.

Gainers & Losers

The base and precious metals surged to a seven-month high in London and New York trading. Sterlite Industries surged 2.1% to 672.35 rupees, Hindustan Zinc added 0.30 rupees to 637.70 rupees and Steel Authority of India added 1.55 rupees to 175.80. Tata Steel declined 1.4% to 463.90 rupees.

Hindalco added 3.5% and Nalco increased 1.3%.

Tata Motors surged 7.5% to 389.05 rupees and Maruti Suzuki added 0.7% to 1,082.25 rupees.

Reliance Industries declined 2.3% to 2,211.85 after its German unit Trevira, the polyester maker filed for bankruptcy protection. Reliance acquired Trevira at 440 crore rupees in 2004.

Larsen & Toubro Ltd increased 4.6% to 1,522.60 rupees after the company plans to sell its 11.4% holding in Ultratech Cement which holds less than 3% stake in the engineering company.

Aditya Birla Group company Grasim Industries Ltd increased 5.7% to 2,513.35 rupees.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 99.05 or 1.02% to 9,768.01, Hang Seng index in Hong Kong increased 176.76 or 0.96% closed to 18,679.53, CSI 300 index in China lower 14.44 or 0.49% closed to 2,939.31. ASX 200 index in Australia increased 36.60 or 0.93% closed to 3,971.20. The KL Composite index in Malaysia higher 11.53 or 1.08% closed to 1,075.50.

The Kospi Index in South Korea increased 16.57 or 1.20% to close at 1,394.71. SET index in Thailand closed higher 10.97 or 1.85% to 604.57 and JSE Index in Indonesia increased 46.22 or 2.27% closed to 2,078.93. The Sensex index in India increased 94.87 or 0.63% closed to 15,103.55.