Higher Rainfall Forecast Lifts India Stocks

Mayank Mehta
25 Aug, 2009
New York City

Stocks in Mumbai edged higher after the higher rainfall forecast. Investors are estimating that poor monsoon season is expected to have less than expected impact on earnings. Department of Posts is likely to spend $1 billion to modernize its operations. L&T receives infrastructure orders.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai edged higher after the higher rainfall forecast. Investors are estimating that poor monsoon season is expected to have less than expected impact on earnings. Department of Posts is likely to spend $1 billion to modernize its operations. L&T receives more power infrastructure orders in the Middle East.[/R]

Indian Meteorological Department forecasted higher rainfalls beginning tomorrow covering the states of Maharashtra, Gujarat and Madhya Pradesh. The expected higher rainfall ease the concerns that poor monsoon season will impact consumer spending.

Finance Minister Pranab Mukherjee at a gathering of leading chief executives said that the government is working to attract more foreign investment and increase job creation.

Department of Posts is working on a modernization program that may require 50,000 crore rupees. The government department is working to select several IT system contractors to integrate several business processes.

NTPC, the government controlled power company will file a special leave petition in the Supreme Court this week for procuring gas from Reliance Industries controlled oil field at the contracted price of $2.34 per mmBtu.

The Sensex index in India increased 59.72 or 0.4% to 15,688.47 and CNX Nifty index rose 16.55 or 0.4% to 4,659.35. Among the Sensex 30 stocks, 16 declined and 14 rose.

On BSE trading, 1,677 stocks advanced, 1,093 declined and 74 were unchanged.

Gainers & Losers

ABB Limited added 1.9% or Rs.13.95 to Rs.730.45 after the automation and power infrastructure provider won an order for Rs.128.30 crore.

Aventis Pharma Limited advanced 2.4% or Rs.33.75 to Rs.1,398.95.

Bhartiya International Ltd surged 19.9% or Rs.7.15 to Rs.42.95 after the leather apparel and clothing accessories said to consider preferential issue on August 28, 2009.

Bharti Airtel Limited fell 1.6% or Rs.6.70 to Rs.407.25.

Deccan Chronicle Holdings Limited, the newspaper and periodicals publisher fell 0.9% or Rs.1.00 to Rs.102.70.

Fortis Healthcare Limited rose 1.1% or Rs.1.35 to Rs.117.30 after the private hospital operator agreed to acquire 8 hospitals and 2 hospitals in construction for 900 crore rupees.

HCL Technologies Limited surged 5.0% or Rs.14.50 to Rs.304.45 after the software services firm said quarterly profits surged.

HDFC Bank Limited rose 0.04% or Rs.0.60 to Rs.1,486.50.

Larsen & Toubro Limited rose 1.4% or Rs.22.95 to Rs.1,573.60 as the company secured engineering and procurement contracts from Qatar, UAE & Oman aggregating $217.45 million or Rs.1,044 crore for the construction of electrical substations.

Maruti Suzuki India Limited fell 0.9% or Rs.13.55 to Rs.1,418.30 after the company launched a new version of its small car Estilo with a fuel efficient engine at an introductory price between Rs 3.12 lakh and Rs 3.95 lakh.

McLeod Russel India Limited fell 0.6% or Rs.1.20 to Rs.179.00 after the tea producer said Borelli Tea Holdings Ltd, UK announces agreement to acquire 75% equity stake of Olyana Holdings LLC, USA.

Piramal Life Sciences Limited gained 4.0% or Rs.3.00 to Rs.76.45 after the biopharmaceutical company completed phase I trials for type II diabetes in Europe.

Pyramid Saimira Theatre Limited the theatre chain company rose 4.9% or Rs.1.15 to Rs.24.55.

Puravankara Projects Limited rose 2.6% or Rs.3.35 to Rs.131.60 after the development and construction of residential and commercial properties is in talks for an alliance with Homex, a Mexico based company that specializes in affordable housing.

Punj Lloyd Ltd gained 0.9% or Rs.2.40 to Rs.256.40 after the company received $35 million pipeline order.

Ranbaxy Laboratories Limited climbed 5.9% or Rs.19.10 to Rs.340.05 after the pharmaceutical industry said it had final approval from the US Food and Drug Administration to make and market generic drug for the treatment of peptic ulcer. The formulation is bioequivalent of drugs made by Sciele Pharma, Inc with total U.S. market of $26 million.

Rolta India Limited the providing computer-aided design and manufacturing rose 5.8% or Rs.10.05 to Rs.178.90.

State Bank of India decreased 2.3% or Rs.42.25 to Rs.1,747.35 Chairman O P Bhatt said today the country needs at least five banks of the size of SBI to service the growing needs of the Indian economy.

Suven Life Sciences Ltd jumped 20.0% or Rs.5.25 to Rs.31.40 after the company is in talks to license Alzheimer’s molecule to ten global pharmaceutical companies.

Tata Motors Limited surged 13.3% or Rs.57.70 to Rs.490.25.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 83.69 or 0.79% to 10,497.36, Hang Seng index in Hong Kong decreased 100.70 or 0.49% to 20,435.24 and CSI 300 index in China lower 119.77 or 3.71% to 3,109.83. ASX 200 index in Australia decreased 20.30 or 0.46% to 4,405.80. The FTSE Bursa KL Composite index in Malaysia closed lower 3.40 or 0.29% to 1,171.09.

The Kospi Index in South Korea decreased 10.84 or 0.67% to close at 1,601.38. SET index in Thailand closed higher 2.26 or 0.35% to 655.46 and JSE Index in Indonesia increased 4.65 or 0.20% to 2,380.52. The Sensex index in India increased 59.72 or 0.38% to 15,688.47.