Suzlon Net Drops; Mahindra Holidays IPO

Mayank Mehta
29 Jun, 2009
New York City

Mumbai stocks traded sideways. Tata Motors dropped after it reported annual net loss. Suzlon net declined 10% and plans to raise $1 billion. Mahindra Holidays & Resorts IPO was oversubscribed ten times.

[R]5:00 PM Mumbai, 7:30 AM New York – Mumbai stocks traded sideways. Tata Motors dropped after it reported annual net loss. Suzlon net declined 10% and plans to raise $1 billion. Mahindra Holidays & Resorts IPO was oversubscribed ten times.[/R]

Mumbai stocks traded sideways ahead of central government and railway budgets. The economic survey will be released this week on July 2.

Tata Motors dropped after it reported annual loss. Suzlon Energy net declined 10% and plans to raise 5,000 crore rupees. Mahindra Holidays & Resorts IPO was oversubscribed ten times.

The Sensex index closed up 21.10 to 14,785.74 and CNX Nifty index increased 11.40 or 0.26% to 4,386.90.

The trading turnover increased to 5,940 crore rupees from 5,541 crore rupees on Friday and on the NSE advanced to 18,328 crore rupees from 17,540 crore rupees.

Gainers & Losers

Mahindra & Mahindra increased 1.1% after the company priced Mahindra Holidays & Resorts India shares in initial public offering at 300 rupees a share. The public issue of 92.65 lakh shares closed on Friday and was subscribed ten times the offering.

Unitech closed 3.5% to 85.25 rupees after the company raised $575 million from international investors at 81 rupees a share. DLF added 3.7% to 337.55.

Hero Honda Motors declined 2.2% to 1,382.85 rupees and the company will replace Ranbaxy Laboratories in the widely followed Sensex index of 30 stocks.

The rise in base metal prices lifted stocks of steel, aluminum and zinc processors.

Sterlite Industries surged 8.5% to 664 crore rupees after copper prices increased in London, Shanghai and New York trading.

Tata Steel increased 2.4% to 397.15 rupees, JSW Steel added 1.5% to 633.10 rupees, Hindalco Industries edged up 1.3% 87.80 rupees and Nalco advanced 1.7% to 313.75.

Tata Motors dropped 7.8% to 313.75 rupees after it reported a net loss of 2,505 crore rupees in the fiscal year ended on March 2009. The company also launched Jaguar and Land Rover vehicles in India with a starting price of 61 lakh rupees (or $131,000).

Sun Pharmaceuticals Industries declined 3.5% to 1,100 rupees after it lost more than 10% on Friday after U.S. regulators seized generic drugs at Caraco Pharmaceuticals on manufacturing irregularities. Sun Pharma controls 70% stake in the company.

Suzlon Energy Limited declined 5% to 117.10 rupees after it reported 10% decline in annual earnings of 236 crore rupees ($47 million). The company board also approved 5,000 crore rupees public issue.

Welspun Gujarat Stahl Rohren increased 3.9% to 212.20 rupees after it received orders of 1,000 crore rupees.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 93.92 or 0.95% to 9,783.47, Hang Seng index in Hong Kong decreased 71.75 or 0.39% to 18,528.51, CSI 300 index in China higher 51.55 or 1.65% to 3,179.97. ASX 200 index in Australia decreased 16.90 or 0.43% to 3,886.90. The KL Composite index in Malaysia closed higher 0.07 or 0.01% to 1,075.84.

The Kospi Index in South Korea decreased 6.08 or 0.44% to close at 1,388.45.SET index in Thailand closed higher 5.80 or 0.97% to 601.60 and JSE Index in Indonesia decreased 6.48 or 0.32% to 2,033.72. The Sensex index in India increased 21.10 or 0.14% to 14,785.74.