India Stocks Surge in Asian Rally

Mayank Mehta
24 Aug, 2009
New York City

Stocks in Mumbai rallied on the rise in commodities prices and optimistic view on the world economic recovery. Asian markets surged sharply with a rally in Japan and China. Fortis Healthcare acquired 10 hospitals from Wockhardt Hospitals for $188 million.

[R]7:00 PM Mumbai, 9:30 AM New York – Stocks in Mumbai rallied on the rise in commodities prices and optimistic view on the world economic recovery. Asian markets surged sharply with a rally in Japan and China. Fortis Healthcare acquired 10 hospitals from Wockhardt Hospitals for $188 million.[/R]

Stocks in India rose sharply as markets in Asia closed higher. Auto makers, resource stocks and software exporters led the gainers.

The Sensex index in India increased 387.92 or 2.55% to 15,628.75.

Market indexes opened higher and steadily gained on the back of rising markets in Asia. Near the close market advanced as European markets opened higher.

Gainers & Losers

Fortis Healthcare Lt increased 3% to 1,527.05 after it agreed to acquire Wockhardt Hospitals Ltd 10 hospitals for 909 crore rupees ($187 million). The purchase of 1,902 bends will bring Fortis closer to the industry leader Apollo Hospitals. Wockhardt Ltd surged 9% to 176.85 rupees.

The surge in copper, zinc and other base metal prices lifted commodities miners and steelmakers.

Tata Steel increased 3% to 458.15 rupees, Hindalco Industries Ltd jumped 4.2% to 108.50 rupees and Sterlite Industries added 4.1% to 655.30 rupees.

Reliance Industries increased 2.3% to 1,972.80 rupees.

Software exporters inched higher after a rally in the U.S. markets. Infosys Technologies Ltd increased 2.1% to 2,075.90 rupees, Wipro Ltd added 2.2% to 524.35 rupees and Tata Consultancy Services Ltd advanced 2.4% to 521.55 rupees.

Automakers also closed higher in the market rally. Tata Motors soared 6% to 458.85 rupees, Maruti Suzuki India Ltd added 3.1% to 1,431.70 rupees and Mahindra & Mahindra Ltd increased 1.6% to 813.40 rupees.

A sharp rise in international crude oil prices dragged refiners lower. The largest state controlled refiner, Indian Oil Corp decreased 2.6% to 576.45 rupees, Bharat Petroleum Corp edged 2.4% lower to 518 rupees and the third largest refiner Hindustan Petroleum Corp 3.6% to 353.85 rupees.

Jaiprakash Associated surged 6% to 222.50 rupees and led the gainers among 30 stocks in the Sensex index.

Real estate surged after DLF was awarded recreation and leisure development project in Haryana. DLF agreed to pay 1,750 crore for 350 acres of land. Indiabulls Real Estate surged 7.8% on the reports that it has been selected to develop Mantralaya building at Nariman Point area in Mumbai.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 342.85 or 3.35% to 10,581.05, Hang Seng index in Hong Kong increased 336.92 or 1.67% to 20,535.94 and CSI 300 index in China higher 25.98 or 0.81% to 3,229.60. ASX 200 index in Australia increased 135.50 or 3.16% to 4,426.10. The FTSE Bursa KL Composite index in Malaysia closed higher 10.70 or 0.92% to 1,174.49.

The Kospi Index in South Korea increased 31.24 or 1.98% to close at 1,612.22. SET index in Thailand closed higher 8.57 or 1.33% to 653.20 and JSE Index in Indonesia increased 41.98 or 1.80% to 2,375.87. The Sensex index in India increased 387.92 or 2.55% to 15,628.75.