India Stocks Stable; Axis $1 B Offering

Mayank Mehta
05 Aug, 2009
New York City

Mumbai stocks hovered near 14-month highs on earnings momentum. Axis Bank prepared to raise more than $1 billion from international investors. Hindustan Construction increased on a large new order. Reliance Infrastructure led consortium was awarded Mumbai Metro Rail project of $2.2 billion.

[R]6:00 PM Mumbai, 8:30 AM New York – Mumbai stocks hovered near 14-month highs after earnings momentum lifted stocks. Axis Bank prepared to raise more than $1 billion from international investors. Hindustan Construction Company increased on a large new order. Reliance Infrastructure led consortium was awarded Mumbai Metro Rail project of $2.2 billion.[/R]

Stocks in India scaled higher on the back of local earnings momentum and rising global optimism. Rupee advanced for the third week in a row as local market indexes rise and foreign investors return to India.

The Sensex index in India increased 72.85 or 0.46% to 15,903.83 and CNX Nifty index rose 13.65 or 0.29% to 4,694.15. Among the Sensex 30 stocks, 17 declined and 13 increased.

On BSE trading, 1,607 stocks advanced, 1059 declined and 93 were unchanged.

Rupee closed up 0.5% to 47.51 against a dollar.

Gainers & Losers

Axis Bank fell 4.31% to Rs 856.05 after the lender decided to raise funds through global depositary receipts or by placement with institutions and promoters. The third largest private bank is expected to raise 5,000 crore rupees in a public offering.

Bharat Heavy Electricals dropped 1.49% to Rs 2,297.50 extending losses for the second day in a row on profit taking after the stock gained over 6% in three days.

Great Offshore surged 11.34% to Rs 564 after ABG Shipyard hiked the open offer price to Rs 520 a share after making a series of bulk deal purchases of Great Offshore stocks in the last few days.

Hindustan Construction Company rose 1.22% to Rs 116.55 after the company received an order worth Rs 228.79 crore.

ING Vysya Bank declined 3% to Rs 213.15 after ten lakh shares changed hands in two block deals traded on the BSE and NSE.

Kavveri Telecom Products was locked at 5% upper limit to Rs 51.30 extending gains for the third consecutive day on strong first quarter June 2009 results.

NMDC rose 4.17% to Rs 381.95 the steel ministry has approved selling 8.38% in NMDC, which could fetch up to Rs 12,000 crore (Rs 120 arab) for the government.

Orient Abrasives jumped 5.31% to Rs 43.65 after the company fixed 13 August 2009 as the record date to issue one bonus share for every share held.

Reliance Infrastructure rose 2.49% to Rs 1,218.40 after a consortium of the company won Rs 11,000 crore Mumbai metro rail project.

Wipro pared early gains in a falling market but closed up 0.13% to Rs 483 after it entered a five-year contract with US apparel retailer Charming Shoppes Inc. to provide information technology services.

HDFC Bank decreased 1.4% or Rs.21.20 to Rs.1,447.85, ICICI Bank rose 1.2% or Rs.9.75 to Rs.773.35. State Bank of India fell 0.6% or Rs.11.90 to Rs.1,844.70.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 122.48 or 1.18% to 10,252.53, Hang Seng index in Hong Kong decreased 301.66 or 1.45% to 20,494.77 and CSI 300 index in China lower 45.68 or 1.21% to 3,740.94. ASX 200 index in Australia decreased 44.80 or 1.04% to 4,264.50. The FTSE Bursa KL Composite index in Malaysia closed lower 0.39 or 0.03% to 1,179.49.

The Kospi Index in South Korea decreased 6.90 or 0.44% to close at 1,559.47. SET index in Thailand closed lower 1.07 or 0.17% to 640.16 and JSE Index in Indonesia decreased 43.03 or 1.82% to 2,317.06. The Sensex index in India increased 72.85 or 0.46% to 15,903.83.