India Stocks Gain in Asian Rally; Pipavav IPO

Mayank Mehta
16 Sep, 2009
New York City

Mumbai stocks gained as markets in Asia rallied on the back of gains in the US and Europe. Commodities and infrastructure related companies led the gainers. Banks also increased on the expectations of higher earnings. Pipavav Shipyard IPO was oversubscribed in the first hour of subscription period.

[R]6:00 PM Mumbai, 8:30 AM New York – Mumbai stocks gained as markets in Asia rallied on the back of gains in the US and Europe. Commodities and infrastructure related companies led the gainers. Banks also increased on the expectations of higher earnings. Pipavav Shipyard IPO was oversubscribed in the first hour of subscription period.[/R]

The Sensex index in India increased 222.59 or 1.3% to 16,677.04 and CNX Nifty index rose 66.30 or 1.3% to 4,958.40. Among the Sensex 30 stocks, 24 rose and 6 fell.

On BSE trading, 1,566 stocks advanced, 1,246 declined and 64 were unchanged. Rupee in trading edged lower to 48.25 against a dollar from 48.64.

The initial public offer of the private sector shipbuilder, Pipavav Shipyard, today was fully subscribed in the first hour of its first day of subscription. IPO was subscribed 1.94 times. The company also said it has allotted 1.52 crore shares to anchor investors at the top-end of the Rs 55 to Rs 60 price range.

Officials of the Reserve Bank of India and the finance ministry would meet on September 29 to decide on the borrowing calendar for the second half of the current financial year, a senior finance ministry official said today.

Gainers & Losers

Anuh Pharma Ltd surged 10.6% to Rs 349.75 after the company received European manufacturing recognition for some of its generic products.

Cummins India Limited dropped 1.9% to Rs 360.50 after the company may face labor unrest at its plant in Pune.

Electrosteel Castings Limited rose 3.0% to Rs 44.15 after the board approved the placement of Rs 600 crore offering.

Jaiprakash Associates Limited the civil engineering contractor increased 1.0% to Rs 240.00.

LIC Housing Finance Limited added 8.4% to Rs 729.80 priced its share sale to institutions at Rs 658 each according to media reports.

Natco Pharma Limited added 1.0% to Rs 124.75.

National Aluminium Company advanced 2% to Rs 347.75 on the plan to set up Rs 12,000 crore nuclear power plant.

Orchid Chemicals & Pharmaceuticals Ltd surged 17.0% to Rs 148.10 said that it has received approvals from the US Food and Drug Administration for its abbreviated new drug applications for Piperacillin and Tazobactam for injection.

Petron Engineering Construction Limited surged 20% to Rs 169.60 said it won a contract worth Rs 154.42 crore from Powergen Infrastructure based in U.A.E.

Prakash Industries Limited advanced 3.4% to Rs 161.70 after the integrated steel and power company said that it is looking to expand power generation capacity from 100 MW to 725 MW. The company has already been allotted additional Fatehpur coal block for this project.

Reliance Communications Limited rose 2.6% to Rs 308.70 after Reliance Communications, Reliance Capital and Reliance Infrastructure have revoked pledged shares worth Rs 7,500 crore from lenders.

Roman Tarmat Ltd added 2.5% to Rs 58.00 after the company was awarded new work order for resurfacing of main runway including profile correction for Juhu Airport, Mumbai. The contract is valued at Rs 4.31 crore.

State Bank of India increased 4.0% to Rs 2,089.60 after a rally in banking sector on the news that Bank of India paid a second installment of advanced taxes.

Tata Steel gained 5% to Rs 521.60 and the stock is near its 52-week high on the back of its European unit, Corus''s plan of restarting its plant in UK.

Tulsi Extrusions Limited rose 2.9% to Rs 28.15 after the PVC pipe maker reported orders of Rs 11 crores from approximately 325 dealers.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 53.15 or 0.52% to 10,270.77, Hang Seng index in Hong Kong increased 536.55or 2.57% to 21402.92 and CSI 300 index in China lawer 44.41or 1.34% to 3,258.24 ASX 200 index in Australia increased 110.10 or 2.42% to 4,650.40. The FTSE Bursa KL Composite index in Malaysia closed higher 5.51 or 0.46% to 1,212.98.

The Kospi Index in South Korea increased 29.93 or 1.81% to close at 1,683.33. SET index in Thailand closed higher 7.09 or 1.01% to 710.25 and JSE Index in Indonesia increased 19.25 or 0.80% to 2,439.36. The Sensex index in India increased 222.59 or 1.35% to 16,677.04.