IPOs, Earnings Power India Stocks

Mayank Mehta
15 Sep, 2009
New York City

Jindal Steel & Power Ltd plans to offer a stake in its power subsidiary that may raise more than $900 million. Stocks surged after Bank of India paid additional advance taxes indicating higher earnings.

[R]6:00 PM Mumbai, 8:30 AM New York – Jindal Steel & Power Ltd plans to offer a stake in its power subsidiary that may raise more than $900 million. Stocks surged after Bank of India paid additional advance taxes indicating higher earnings.[/R]

The Sensex index in India increased 240.26 or 1.4% to 16,454.45 and CNX Nifty index rose 83.90 or 1.7% to 4,892.10. Among the Sensex 30 stocks, 27 rose and 3 fell.

On BSE trading, 1,796 stocks advanced, 993 declined and 79 were unchanged and metals, realty and banking stocks continued to lead the run-up.

The country’s government-run oil explorer will be offering shares to investors at a price of Rs 1,050 per share, petroleum secretary RS Pandey said on Monday. The offering priced at Rs 1,050 is expected to raise Rs 2,772 crore.

Indian Oil Corporation gained in early trades on projects worth Rs 60,000 crore. The company has recommended the issue of one bonus share for every one equity share held by a share holder.

Gainers & Losers

Areva T&D India increased 7.7% to Rs 309.60 after the business of transmission and distribution of energy said that it has received an order of Rs 76 crore from the Haryana Vidyut Prasaran Nigam for design and construction of a 400 kV substation at Nawada, near Faridabad.

Bartronics India Limited increased 0.6% to Rs 172.25 after its Asia subsidiary received an order from Singapore based Avitar.

Bank of India increased 8.8% to Rs 394.80 after the bank made a second advanced installment of tax payment raising expectations of higher earnings.

Bharti Airtel Limited fell 0.8% to Rs 416.05 said that the proposed tie-up between MTN Group Limited and Bharti Airtel Limited needs cabinet level approval in South Africa, a senior official said according to media reports in South Africa.

Cranes Software International Limited rose 3.5% to Rs 41.15 after it released latest engineering design software.

Era Infra Engineering Limited increased 3.2% to Rs 162.95.

Glenmark Pharmaceuticals Limited rose 1.1% to Rs 217.75 after the company raised Rs 413.56 crore through the sale of 1.87 crore shares to institutional buyers on private placement basis at Rs 221 a share.

Gemini Communications Ltd fell 0.8% to Rs 17.10 after the firm said its board will meet on September 21 to consider listing the company''s shares on German stock exchange.

Gayatri Projects Limited added 4.9% to Rs 286.50 after the construction company issued 10 lakh or 1 million shares to a fund managed by Reliance Capital.

Gujarat NRE Coke zoomed nearly 30% after the company announced its plans to issue bonus shares.

Hindustan Zinc Limited added 1.8% to Rs 838.75 after lowered both zinc and lead prices to match global rates.

Jindal Steel & Power Limited rose 7.4% to Rs 618.50 said Jindal Power a unit of the company is planning public offering of Rs 4,000 crore for the 2,400 megawatt superthermal power project in Chattisgarh.

Lakshmi Vilas Bank Ltd surged 14.4% to Rs 123.85.

Mafatlal Industries Limited advanced 4.9% to Rs 53.80 after the textile business has put an 85,000 sq ft property in central Mumbai on the block hoping to generate between Rs 100 crore and Rs 150 crore.

Omaxe Limited rose 0.08% to Rs 121.85 after the real estate developer has entered into an agreement to develop high-tech township in Lucknow, Uttar Pradesh.

Punj Lloyd Limited added 1.4% to Rs 264.10.

Rural Electrification Corporation Limited added 4.3% to Rs 203.50 after the company said it is in negotiation with the US insurer Aflac for a $200 million loan.

Simplex Infrastructures Limited rose 2.6% to Rs 460.00.

Sobha Developers has moved up 3% on plans of land sale in Chennai.

Wipro Limited advanced 0.5% to Rs 560.75 after the company signed three year outsourcing contract with Japan Airlines an All Nippon Airways.

Winsome Textile Industries Ltd rose 2.2% to Rs 58.00 after the company plans to split the equity base from Rs 10 a share to ten shares with Rs 1 each on Sept 25.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 15.56 or 0.15% to 10,217.62, Hang Seng index in Hong Kong decreased 68.83 or 0.31% to 20,866.37 and CSI 300 index in China higher 9.25 or 0.28% to 3,302.64. ASX 200 index in Australia increased 9.20 or 0.20% to 4,540.30. The FTSE Bursa KL Composite index in Malaysia closed higher 4.11 or 0.34% to 1,207.47.

The Kospi Index in South Korea increased 18.49 or 1.13% to close at 1,653.40. SET index in Thailand closed higher 8.84 or 1.27% to 703.16 and JSE Index in Indonesia increased 37.41 or 1.57% to 2,420.11. The Sensex index in India increased 240.26 or 1.48% to 16,454.45.