Sensex in India Rises; Educomp, Pearson Deal

Mayank Mehta
24 Jun, 2009
New York City

Stocks in Mumbai gained despite the weakness in commodities prices and worries about the government issuing large amount of debts to fund fiscal deficit. Educomp Solutions surged after it formed a joint venture with UK based Pearson Plc for vocational training. ONGC reported 16% decline in earnings.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai gained despite the weakness in commodities prices and worries about the government issuing large amount of debts to fund fiscal deficit. Educomp Solutions surged after it formed a joint venture with UK based Pearson Plc for vocational training. ONGC reported 16% decline in earnings.[/R]

Stocks in Mumbai closed higher on speculation in infrastructure stocks. The Sensex index in India increased 98.72 or 0.69% to 14,422.73 and CNX Nifty added 45.95 or 1.1% to 4,292.95.

Of the stocks in the Sensex index, 24 increased and 6 decreased.

In trading on the BSE turnover increased to 5,703 crore rupees compared to 5,684.37 crore rupees. In trading on the NSE, turnover declined to 17,946 crore rupees from 18,823 crore rupees.

Gainers & Losers

Educomp Solutions Limited surged 11% to 3,427.25 rupees after the company and UK based Pearson Plc agreed to form a 50:50 joint venture for vocational skill training. Separately, Pearson also took 17.2% stake in online tutoring company TutorVista.com.

ONGC increased 2.4% 1,051 rupees but the after the close it reported 16% decline in profit to 2,206 crore rupees.

Bharat Heavy Electricals Ltd increased 2.7% to 2,193 rupees after it received an order of 105 crore rupees from Indian Oil Corporation at Barauni Refinery location in Patna, Bihar.

Tata Motors increased 7% to 357 rupees after it said that 55,000 customers have agreed to keep their booking for Nano car for the delivery after the first 100,000 people receive their cars. Tata estimated that all deliveries will be completed by the first quarter of 2010.

Hindalco Industries increased 2.8% to 83.80 rupees after the government imposed duty between 12% and 14% on aluminum foils from China and between 25% and 30% on aluminum sheets.

Bajaj Hindustan surged 7.7% to 205.20 rupees and Balrampur Chini Mills increased 6.6% to 106.20 after sugar prices increased in the international markets.

MRF Limited added 4.7% to 3,371 rupees, Ceat Ltd increased 5% to 91.55 rupees and Apollo Tyres Limited added 3.3% to 31.45 rupees.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 40.71 or 0.43% to 9,590.32, Hang Seng index in Hong Kong increased 353.78 or 2.02% to 17,892.15, CSI 300 index in China higher 36.84 or 1.19% to 3,120.73. ASX 200 index in Australia increased 10.10 or 0.27% to 3,807.00. The KL Composite index in Malaysia closed higher 13.37 or 1.28% to 1,057.85.

The Kospi Index in South Korea increased 3.25 or 0.24% to close at 1,363.79.SET index in Thailand closed higher 11.58 or 2.03% to 581.43 and JSE Index in Indonesia increased 81.29 or 4.25% to 1,995.67. The Sensex index in India increased 98.72 or 0.69% to 14,422.73.