Infrastructure Stocks Gain in India

Mayank Mehta
09 Sep, 2009
New York City

Infrastructure related stocks gained as companies receive more orders. Jet Airways canceled more flights on the second day of pilots strike. Reliance Industries advances after crude oil prices jump.

[R]6:00 PM Mumbai, 8:30 AM New York – Infrastructure related stocks gained as companies receive more orders. Jet Airways canceled more flights on the second day of pilots strike. Reliance Industries advances after crude oil prices jump.[/R]


The late revival of monsoon is likely to help farmers in the grain belt of the northwest of India and central India. However, food and grain prices at record high sparking fears of sustained inflation for the rest of the year.

The Sensex index in India increased 59.88 or 0.3% to 16,183.55 and CNX Nifty index inched higher 9 or 0.1% to 4814.25. Among the Sensex 30 stocks, 18 fell and 12 rose.

On BSE trading, 1,536 stocks declined, 1,299 advanced and 76 were unchanged.

Gainers & Losers

Aban Offshore Ltd fell 2.8% to Rs 1,528.00 after the oil field services for offshore exploration is likely to lose a contract for its drill ship ‘Aban Abraham’ for deployment at an offshore field in Ghana, Africa, for developing the Jubilee Field. The 33-year-old drill ship was contracted to Kosmos Energy for the field’s development from September 1 to October 21 at a rate of $300,000 a day.

The loss of the contract would make a dent of about Rs 743.5 crore in the current financial year’s revenues.

ANG Auto Limited added 1.9% to Rs 51.00 after the company said set up a state of art a new line for fabrication for power plants boiler structure with an installed annual capacity of 25,000 metric ton.

The company has entered into yearly rate contract with BHEL for heavy duty steel fabricated boiler structure and the first order for 1,100 metric ton capacity.

Axis Bank Limited added 0.8% to Rs 913.40 said its asset management unit plans to launch nine mutual funds by March of next year and plans to breakeven within three years according to its chief executive.

Bank of Baroda rose 3.4% to Rs 452.20 has posted a 24% rise in housing loan so far in the current fiscal, a top official said.

Bharat Heavy Electricals Limited rose 0.01% to Rs 2,242.90 said expects to get orders worth at least Rs 10,900 crore from state-owned NTPC Ltd as the utility plans to add generators.

FDC Limited edged higher 8.3% to Rs 51.40 after the pharmaceutical business approves buy back of equity shares up to Rs 60.

IFCI Limited increased 2.7% to Rs 59.25 after the development financing company was reported by the Mint newspaper that the central government has asked the financial institution to find a strategic investor after it failed to sell a 26% stake in 2007.

Impex Ferro Tech Limited increased 4.9% to Rs 11.68 after the company''s board approved issuing shares on rights basis at Rs 16 each in the ratio of 1:1.

Jet Airways (India) Limited declined 2.1% to Rs 256.50 after pilot struck for the second day. The company canceled 206 flights and said that daily domestic reservations are down 40% and international reservations fell 10%. According to an article in the Economic Times, Chairman Naresh Goyal is prepared to shut the airline.


J. Kumar Infraprojects Limited increased 2.3% to Rs 146.55 after the company received construction contracts worth Rs 304.09 crore.

Madras Cements Ltd added 1.7% to Rs 112.15.

Nucleus Software Exports Limited edged higher 2.3% to Rs 118.00 after it announced the launch of the new version of its cash management software product.

Opto Circuits (India) Ltd added 6.1% to Rs 199.00 after the marketer of medical electronic devices and health care products raised Rs 400 crore from qualified institutional buyers.

REI Agro Limited added 0.5% to Rs 51.65 after the company''s board approved raising Rs 1,500 crore through rights issue.

Reliance Industries led the combined most active list on the BSE and NSE with a turnover of Rs 1,216.48 crore followed by DLF with Rs 616.12 crore, IFCI Rs 615.38 crore, Unitech 560.38 crore and Tata Steel Rs 420.02 crore.

Supreme Infrastructure India Limited rose 3.8% to Rs 115.65 after the company was awarded six work orders of Rs 97.39 Crore from Navi Mumbai Municipal Corporation and Mumbai Railway Vikas Corporation Ltd.

Time Technoplast Limited advanced 1.6% to Rs 46.90 after the polymer packaging products maker said that its joint venture with Schoeller Arca Systems has obtained an order worth Rs 20 crore for the supply of “special packaging products.”

Unity Infraprojects Limited increased 3.1% to Rs 382.75 said that a joint venture of and Axelia Utility Management, has been issued letter of intent for two contracts aggregating to Rs 620.76 crore from municipal corporation of Greater Mumbai for supply, installation and maintenance of water meters of various sizes for the Eastern and Western suburbs of Mumbai.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 81.09 or 0.78% to 10,312.14, Hang Seng index in Hong Kong decreased 218.77 or 1.04% to 20,851.04 and CSI 300 index in China higher 23.94 or 0.76% to 3,194.91. ASX 200 index in Australia decreased 1.60 or 0.04% to 4,522.20. The FTSE Bursa KL Composite index in Malaysia closed lower 5.61 or 0.47% to 1,196.46.

The Kospi Index in South Korea decreased 11.92 or 0.74% to close at 1,607.77. SET index in Thailand closed higher 3.86 or 0.56% to 695.59 and JSE Index in Indonesia increased 12.04 or 0.51% to 2,383.34. The Sensex index in India increased 59.88 or 0.37% to 16,183.55.