Sensex in India Surges 3%, Infosys, Satyam Rise

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

Stocks in Mumbai trading rebounded after Prime Minister said economy is likely to grow at 7% in the current fiscal year. Satyam Computer Services surged after it reported net income in the third quarter. Tech Mahindra surged 25%. Infosys along with EDS and IBM were selected for A$450 million deal.

[R]10:00AM New York, 7:30 PM Mumbai – Stocks in Mumbai trading rebounded after Prime Minister said economy is likely to grow at 7% in the current fiscal year. Satyam Computer Services surged after it reported net income in the third quarter. Tech Mahindra surged 25%. Infosys along with EDS and IBM were selected for A$450 million deal in Australia.[/R]

Stocks in Mumbai trading rebounded after Prime Minister estimated 7% economic growth in the current fiscal year and added that Indian is capable of achieving rate as high as 9%.

In Mumbai, the Sensex Index rose 3.1% or 461.08 to 15,127, and the CNX Nifty soared 2.7% or 121.05 to 4,550.95.

Of the stocks traded on the BSE, 1,449 increased, 1,312 declined, and 42 were unchanged.

Daily turnover on the BSE increased to 7,975 crore rupees from 7,357.83 crore rupees yesterday. On the trading on the NSE, turnover increased to 13,601 crore rupees from 13,094 crore rupees.

India Growth of 7% Likely

Prime Minister Manmohan Singh in an address to Lok Sabha reiterated that Indian economy will grow at 7% in the current fiscal year and is capable of reaching 9% rate as savings rate in the country is high.

Singh added, “Since our savings rate is as high as 35 per cent” and urged the country to work together to achieve a growth rate of 8% to 9% “even if the world economy does not improve.""

India’s Budget Presentation on July 3

The finance minister Pranab Mukherjee is expected to present the fiscal 2010 budget on July 3, and the Economic Survey on the state of the economy is likely to be presented on July 2.

The railways’ budget is expected on July 1 subject to approval by the Cabinet and notification by the President’s office.

Gainers & Losers

Reliance Industries gained 3.8% to 2,271.90 rupees ahead of the Bombay High Court judgment on natural gas sharing arrangement between Reliance Industries and Reliance Natural Resources.

Infosys Technologies advanced 3.6% to 1,795 rupees after announcing that it is member of a group that has been selected for A$450 million contract from Australian company Telstra Corp. EDS and IBM are other two members in the group.

TCS rose 6% to 782 rupees, Wipro edged up 4.4% to 423.75 rupees and Satyam Computer Services advanced 10% to 66.85 rupees.

Tech Mahindra surged 25.5% to 744.20 rupees after Satyam reported net income of 181 crore rupees in the quarter ending in December on revenues of 2,290 crore rupees. Satyam also confirmed its bank balance of 373 crore rupees.

Realty stocks increased. Indiabulls Real Estate added 2.6% to 213.55 rupees.

Tata Steel rose 5.3% to 438.55 rupees despite a downgrade of the stock by a notch by Moody''s Investors Service.

Reliance Communications jumped 7.4% to 332.25 rupees on the news it is close to awarding a $500 million operations and maintenance contract to telecom infrastructure provider Alcatel-Lucent.

Financial stocks gained on expectations Reserve Bank of India will standardize the way banks calculate their prime lending rates. ICICI Bank rose 1.6% to 735.55 rupees, HDFC Bank increased 1.2% and State Bank of India gained 4% to 1,763.30 rupees.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 78.81 or 0.80% to 9,786.82, Hang Seng index in Hong Kong decreased 194.90 or 1.07% closed to 18,058.49, CSI 300 index in China higher 12.08 or 0.41% closed to 2,960.56. ASX 200 index in Australia decreased 36.30 or 0.91% closed to 3,934.90. The KL Composite index in Malaysia lower 1.06 or 0.10% closed to 1,071.79.

The Kospi Index in South Korea decreased 21.46 or 1.54% to close at 1,371.84.SET index in Thailand closed higher 7.70 or 1.28% to 607.73 and JSE Index in Indonesia increased 36.65 or 1.78% closed to 2,093.29. The Sensex index in India increased 461.08 or 3.14% closed to 15,127.00.