Vedanta Lifts Asarco Bid 3%; India Stocks Up

Mayank Mehta
11 Sep, 2009
New York City

Mumbai stocks edged higher after the release of industrial production data. Jet Airways is expected to resume normal schedule after the pilots union is expected to call-off strike today. Sterlite Industries revised its offer for the U.S. based copper mine Asarco by 3% to $2.6 billon.

[R]6:00 PM Mumbai, 8:30 AM New York – Mumbai stocks edged higher after the release of industrial production data. Jet Airways is expected to resume normal schedule after the pilots union is expected to call-off strike today. Sterlite Industries revised its offer for the U.S. based copper mine Asarco by 3% to $2.6 billon.[/R]

The Sensex index in India increased 47.44 or 0.2% to 16,264.30 and CNX Nifty index rose 10.15 or 0.2% to 4,829.55. Among the Sensex 30 stocks, 10 rose and 20 fell.

On BSE trading, 1,069 stocks advanced, 1,713 declined and 80 were unchanged. Realty, auto and FMCG stocks fell. Banking and IT stocks rose.

Industrial production increased for the seven month in a row as low interest rate and government spending sustained the economic activities.

Output at factories, utilities and mines increased 6.8% in July this year compared to 6.4% in the same month a year ago. The Central Statistical Organization revised higher the June output to 8.2% from the earlier estimate of 7.8%.

Gainers & Losers

Ambuja Cements Limited advanced 0.1% to Rs 98.55.

Anil Modi Oil Industries Limited rose 4.9% to Rs 29.45 said the board approved bonus one share for each share held and preferential allotment for convertible warrants.

Bharat Heavy Electricals Limited edged lower 0.3% to Rs 2,255.00. The turbine maker is expected to set up a workshop to maintain and repair turbine problems at Dabhol plant.

Biocon Limited added 0.7% to Rs 235.80 said Amylin Pharmaceuticals Inc. has signed an exclusive agreement with the company to jointly develop commercialize peptide therapeutic for the potential treatment of diabetes.

Cholamandalam DBS Finance Limited decreased 4.9% to Rs 76.40 after the founders Murugappa Group is negotiating to sell its equity stake to the partner DBS.

Dabur India Limited dropped 2.5% to Rs 126.65 after the global ayurvedic and natural health care company said its promoters have pledged three crore shares representing 3.47% of the equity capital of the company.

Emco Ltd rose 0.3% to Rs 92.10 after the company secured four orders aggregating to Rs 274 crore for constructing electrical substations on turnkey basis in Haryana, Maharashtra and Rajasthan.

Jet Airways (India) Limited increased 2.0% to Rs 258.55 on expectations that a standoff between the airline and its pilots would end on Friday according to a report from Business Standard.

Kirloskar Electric Company Limited decreased 2.7% to Rs 83.15 after contract employees at Pune resorted to strike.

Mahindra & Mahindra Limited rose 0.3% to Rs 824.55 and the company expects to sell 100,000 two-wheelers in the next eighteen months.

Oracle Financial Services Software Ltd increased 0.1% to Rs 1,755.00.

Oil and Natural Gas Corporation Limited fell 0.4% to Rs 1,175.50 after on turning ex-dividend of Rs 14 per share.

Omaxe Limited edged higher 1.9% to Rs 123.05.

Patni Computer Systems Limited rose 0.7% to Rs 396.25 and Suven Life Sciences Limited decreased 3.1% to Rs 29.50.

Dr. Reddy’s Laboratories Limited decreased 1.1% to Rs 812.00 after the company denied media speculation that company founders are seeking a buyer.

Rural Electrification Corporation Limited fell 3.9% to Rs 195.85 after the company said the board will consider proposal of follow-on public offer on Sept 19.

State Bank of India added 2.1% to Rs 1,918.80.

Sterlite Industries (India) Limited fell 4.2% to Rs 733.80 after the company modified its bid for bankrupt US copper miner Asarco by offering 3% higher to $2.565 billion in cash.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 69.34 or 0.66% to 10,444.33, Hang Seng index in Hong Kong increased 91.86 or 0.44% to 21,161.42 and CSI 300 index in China higher 75.22 or 2.38% to 3,238.13. ASX 200 index in Australia increased 25.30 or 0.55% to 4,596.10. The FTSE Bursa KL Composite index in Malaysia closed higher 7.00 or 0.58% to 1,208.28.

The Kospi Index in South Korea increased 7.02 or 0.43% to close at 1,651.70. SET index in Thailand closed higher 4.72 or 0.67% to 707.81 and JSE Index in Indonesia increased 4.08 or 0.17% to 2,415.95. The Sensex index in India increased 47.44 or 0.29% to 16,264.30.