Five Day Rally in Mumbai Stocks

Mayank Mehta
10 Sep, 2009
New York City

Stocks in Mumbai trading gain for the fifth day in a row. Varun Industries subsidiary is in a production sharing arrangement with Madagascar based company. Infosys surges after Nomura lifts its view on the outsourcing sector and the company plans to acquire consulting companies.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai trading gain for the fifth day in a row. Varun Industries subsidiary is in a production sharing arrangement with Madagascar based company. Infosys surges after Nomura lifts its view on the outsourcing sector and the company plans to acquire consulting companies.[/R]

The Sensex index in India increased 33.31 or 0.2% to 16,216.86 and CNX Nifty index rose 5.15 or 0.1% to 4,819.40. Among the Sensex 30 stocks, 14 rose and16 fell.

On BSE trading, 1,086 stocks advanced, 1,709 declined and 77 were unchanged.

Late pick up in monsoon rains helped the country to trim its rain deficit to 20% in the current season. According to the latest data from the India Meteorological Department in the week ending Sept 9 rains were above 20% long-term average.

Equities pared some of its early morning gains after traders booked profits at higher levels. Banks and pharma stocks were in the lead while realty sector slipped in the negative terrain.

India's food prices jumped an annual 14.8% by end of August after a dry spell hurted crops adding to concerns inflation could climb above the comfort zone of policy makers and herald an end to a soft monetary stance.

Gainers & Losers

Axis Bank Limited decreased 0.4% to Rs 909.00 after the qualified institutional placement cum global depository receipt issue has opened for subscription today. The bank's QIP and GDR size is around $800 million to $1 billion while the issue is priced at Rs 903 a share.

Bharti Airtel Limited advanced 1.4% to Rs 415.70 has increased its offer for a 49% stake in MTN Group Ltd. by about $900 million in cash to a total of $14 billion in cash and stock. The mobile phone service provider is looking to borrow $5 billion to pay for the stake purchase.

Bharat Petroleum Corporation is expecting to receive oil bonds worth Rs 2,500 crore from the Finance Ministry for selling petrol, diesel, kerosene and LPG at below market rates.

Amtek Auto Limited rose 7.3% to Rs 196.30 and Crompton Greaves Limited declined 1.2% to Rs 309.25.

Bharti Airtel Ltd increased 1.8% to Rs 416.50 after the company was reported to be in the advanced stage to finalize its deal with MTN. Bharti is also seeking to borrow $5 billion to pay for the acquisition.

Gujarat Gas Company Limited added 7.4% to Rs 403.00 said that it will issue bonus to shareholders based on Sep. 19, 2009 in the ratio of 2:1.

Henkel India Limited advanced 5.1% to Rs 30.80 after the detergents and household cleaning products maker has agreed to sell Kolkata factory to VVF.

ICICI Bank Limited rose 3.1% to Rs 815.55 after HSBC Finance Corp raised its rating on the stock to ‘overweight’ from ‘underweight.’

Infosys Technologies Limited edged higher 1.5% to Rs 2,228.00 after Nomura raised its rating on the stock to “neutral” from “reduce” on improving market conditions in Europe and U.S.

IVRCL Infrastructures & Projects Limited added 0.2% to Rs 347.00 said that it has received orders of 557 crore rupees from Government of Maharashtra, NSG Kolkata and others to build water and power projects and toll road construction.

Jet Airways (India) Ltd increased 3.5% to Rs 253.60 after the airline canceled 90 flights on the third day of pilot strike.

Kingfisher Airlines Limited rose 0.6% to Rs 47.15 that the company plans to sell stocks in the local and international markets.

Madhucon Projects Limited increased 5.0% to Rs 233.10 after the highways builder said that the company plans to bring its road, power, and coal special purpose vehicles under a single entity and list it by Feb 2010 to raise between 500 crore and 600 crore rupees.

MVL Limited the real estate developer rose 2.9% to Rs 195.50.

Omaxe Limited increased 2.8% to Rs 120.85 after the real estate developer said that its subsidiary and Bulandshahar, Uttar Pradesh have entered into an agreement to develop residential and commercial complex on 3,600 acres plot.

Reliance Industries rose 0.90% to Rs 2,188.90 after Reliance Natural Resources told the Supreme Court that the government has no role to play in determining the price it pa for the natural gas to Reliance Industries.

Shasun Chemicals & Drugs Limited decreased 0.3% to Rs 27.80 after the company sold its pharmaceutical plant in Scotland.

Tata Steel Limited climbed 1.2% to Rs 465.70 after Steel Minister Virbhadra Singh said domestic consumption of steel could rise 6% this quarter and increase more than 10% in the next year.

Varun Industries Limited advanced 4.9% to Rs 181.05 after the manufacturer and exporter of stainless steel kitchenware maker said that Varun Petroleum SARL, Madagascar, a subsidiary of the company has signed a production sharing contract with OMNIS of Madagascar, for an off-shore gas block covering area of approximately 13,200 square kilometers on the basin of Indian Ocean.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 201.53 or 1.95% to 10,513.67, Hang Seng index in Hong Kong increased 218.52 or 1.05% to 21,069.56 and CSI 300 index in China lower 32.00 or 1.00% to 3,162.91. ASX 200 index in Australia increased 48.60 or 1.07% to 4,570.80. The FTSE Bursa KL Composite index in Malaysia closed higher 4.82 or 0.40% to 1,201.28.

The Kospi Index in South Korea increased 36.91 or 2.30% to close at 1,644.68. SET index in Thailand closed higher 7.50 or 1.08% to 703.09 and JSE Index in Indonesia increased 28.52 or 1.20% to 2,411.86. The Sensex index in India increased 33.31 or 0.21% to 16,216.86.