Infrastructure Stocks Rebound in India

123jump.com Staff
07 Jul, 2009
New York City

Infrastructure companies rebounded a day after a sharp sell-off in India. Reliance Industries, Reliance Natural and central government are required to respond to the Supreme Court before July 20. Automakers increased after the government increased road construction budget by 23%.

[R]6:00 PM Mumbai, 8:30 AM New York – Infrastructure companies rebounded a day after a sharp sell-off in India. Reliance Industries, Reliance Natural and central government are required to respond to the Supreme Court before July 20.[/R]

Stocks in Mumbai trading rebounded after losing nearly 6% in the previous session. After close, the Supreme Court rejected Reliance Industries appeal to invalidate or stay the lower court ruling in favor of Reliance Natural.

The Sensex index in India increased 127.05 or 0.90% to 14,170.45 and CNX Nifty index increased 0.9% to 4,230.90. Of the stocks in the Sensex index, 17 increased and 13 declined.

Trading on BSE declined to 5,285 crore rupees from 7,330 crore rupees. Of the shares traded on the exchange, 1,071 increased, 1,461 decreased and 98 were unchanged.

Gainers & Losers

Reliance Industries declined 2% to 1,856 rupees after finance minister Mukherjee increased alternative minimum taxes to 15% from 10%. Reliance in the last fiscal year incurred total tax liability of 3,030 crore rupees of which 900 crore rupees were deferred taxes.

After the close, the Supreme Court rejected Reliance Industries appeal to grant to stay lower court verdict in favor of Reliance Natural Resources. Both companies and the central government are required to send their replies before the hearing on July 20.

Infrastructure stocks closed higher after the government in the latest budget said that India Infrastructure Finance Company will refinance 60% of commercial bank loans to infrastructure projects under Public Private Partnership.

Praj Industries Ltd increased 0.7% to 87.90 rupees, Hindustan Construction Company and Nagarjuna Construction Company added 3.1% to 132.65 rupees and IVRCL Infrastructure surged 9% to 360 rupees.

Government increased highway development budget by 23% to 15,948 crore rupees.

Auto stocks closed higher after the government lowered excise duty. Maruti Suzuki surged 4.4% to 1,079.95 rupees, Mahindra & Mahindra soared 5.6% to 750.45 rupees and Tata Motors decreased 1.2% to 279.85 rupees.

Tata Steel increased 0.4% to 398 rupees after the company said June sales in India increased 19% to 497,000 tons. India division accounts for a quarter of global 30 million ton annual sales.

ITC Limited surged 6.7% to 211.20 rupees after the government left excise duty unchanged in the latest budget.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 33.08 or 0.34% to 9,647.79, Hang Seng index in Hong Kong decreased 117.14 or 0.65% to 17,862.27, CSI 300 index in China lower 34.26 or 1.02% to 3,340.49. ASX 200 index in Australia decreased 16.80 or 0.44% to 3,766.90. The KL Composite index in Malaysia closed higher 0.53 or 0.05% to 1,066.36.

The Kospi Index in South Korea increased 5.26 or 0.37% to close at 1,434.20. JSE Index in Indonesia increased 48.24 or 2.37% to 2,083.25. The Sensex index in India increased 127.05 or 0.90% to 14,170.45. The markets of Thailand were closed today.