Sensex in India Rebounds on Monsoon Hopes

Mayank Mehta
18 Aug, 2009
New York City

Stocks in Mumbai rebounded 1.6% after late monsoon rains in key agriculture states. Foreign investors continue to increase their exposure to India. Bharti Airtel advanced after several banks approached the telecom carrier to fund the MTN Group Ltd.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai rebounded 1.6% after late monsoon rains in key agriculture states. Foreign investors continue to increase their exposure to India. Bharti Airtel advanced after several banks approached the telecom carrier to fund the MTN Group Ltd.[/R]

Stocks in Mumbai traded higher after falling nearly 5% in the last two sessions. The late monsoon rains in Madhya Pradesh, Bihar and Uttar Pradesh is likely to help sugar cane, pulses and rice farmers. The late revival of monsoon may trim the rain deficit of 29% in the current season.

The Sensex index in India increased 250.34 or 1.69% to 15,035.26 and CNX Nifty index rose 71 or 1.6% to 4,458.90. Among the Sensex 30 stocks, 25 stocks rose and 5 fell.

On BSE trading, 1,702 stocks advanced, 909 declined and 79 were unchanged.

Overseas investors are still engaged with Indian stock market. The latest data from the NSE showed a purchase of 1,030 crore rupees ($211 million) of stocks on August 14 and the purchase of 37,600 crore rupees for the year so far. International investors net purchased stocks of 53,000 crore rupees of Indian stocks in 2008.

Gainers & Losers

Ahluwalia Contracts India Ltd the construction services jumped 2.8% or Rs.3.45 to Rs.126.85.

Bank of Baroda rose 0.5% or Rs.2.40 to Rs.420.40 after the public sector lender said that its life insurance venture with the UK-based Legal and General group is likely to start operations in the next seven months as reported in Economic Times.

Berger Paints India Limited the paint manufacturer advanced 6.1% or Rs.2.80 to Rs.48.60.

Bharti Airtel Limited rose 2.6% or Rs.10.60 to Rs.409.75 after the telecom services provider said unveiled its global wholesale service portfolio with a network reaching 50 countries. The company also has received interest from several international banks to finance its merger with MTN Group Ltd as reported in Economic Times.

Bharat Forge Limited surged 4.6% or Rs.9.75 to Rs.221.45 after the forgings and general engineering company plans to raise capital from international investors.

Everonn Systems India Limited the education and training company edged up 0.6% or Rs.2.20 to Rs.351.50.

Four shipping stocks rose between 0.2% and 2.4% after the ocean freight rate index in London increased.

Great Eastern Shipping Company rose 2.38%, Mercator Lines surged 1.75%, Essar Shipping Ports & Logistics climbed 1.11%, and Varun Shipping Company up 0.19%, rose.

Gammon India Limited rose 0.2% or Rs.0.45 to Rs.153.30 after the infrastructure service company is still in the bidding process for the Gurgaon Metro project.

Housing Development Finance Corporation Limited rose 3.0% or Rs.68.85 to Rs.2,231.05 after the provides housing finance to raise over Rs 4,000 crore from international investors.

Kiri Dyes and Chemicals Ltd jumped 6.1% or Rs.23.90 to Rs.411.00 after the manufacture and exporter of reactive dyes and dyes intermediates said it is exploring overseas acquisition.

McNally Bharat Engineering Company Ltd the power sector service provider climbed 2.9% or Rs.4.40 to Rs.155.70.

Moser Baer India Limited the manufacture of optical storage media rose 1.8% or Rs.1.50 to Rs.81.40.

Nava Bharat Ventures Limited surged 8.2% or Rs.28.50 to Rs.376.00.

Numeric Power Systems Limited gained 19.9% or Rs.74.35 to Rs.446.20 after power equipment maker said that it may issue stock bonus.

Shree Renuka Sugars Limited rose 6.7% or Rs.11.60 to Rs.183.50 after the sugar maker received government approval to acquire a stake in the National Derivatives Exchange.

Oil & Natural Gas Corporation rose 1.2% to Rs 1177.90 and Cairn India gained 1.2% to Rs 239.50.

United Spirits Limited the purchase and sale of beverage alcohol rose 4.3% or Rs.35.45 to Rs.877.00.

Vishal Information Technologies Limited fell 1.3% or Rs.0.25 to Rs.18.10.

HDFC Bank Limited rose 2.3% or Rs.33.60 to Rs.1,440.85. ICICI Bank Limited gained 2.1% or Rs.15.10 to Rs.720.05. State Bank of India added 1.2% or Rs.20.75 to Rs.1,733.80.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 16.35 or 0.16% to 10,284.96, Hang Seng index in Hong Kong increased 168.62 or 0.84% to 20,306.27 and CSI 300 index in China higher 31.72 or 1.01% to 3,171.99. ASX 200 index in Australia decreased 6.80 or 0.15% to 4,381.60. The FTSE Bursa KL Composite index in Malaysia closed lower 4.64 or 0.40% to 1,164.41.

The Kospi Index in South Korea increased 3.18 or 0.21% to close at 1,550.24. SET index in Thailand closed higher 8.20 or 1.30% to 640.25 and JSE Index in Indonesia decreased 49.88 or 2.09% to 2,336.99. The Sensex index in India increased 250.34 or 1.69% to 15,035.26.