Reliance in India Raises $670 Million

123jump.com Staff
17 Sep, 2009
New York City

Stocks in India traded near their recent highs as infrastructure and banks edged higher. Reliance sold 1% stake in the company to raise $670 million. Bharti-MTN merger talks face dual listing structure. The latest read on wholesale inflation showed an increase of 0.12%.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in India traded near their recent highs as infrastructure and banks edged higher. Reliance sold 1% stake in the company to raise $670 million. Bharti-MTN merger talks face dual listing structure. The latest read on wholesale inflation showed an increase of 0.12%.[/R]

The Sensex index in India increased 34.07 or 0.2% to 16,711.11 and CNX Nifty index rose 7.15 or 0.1% to 4,965.55. Among the Sensex 30 stocks, 22 rose and 8 fell.

On BSE trading, 1,215 stocks advanced, 1,574 declined and 92 were unchanged. IT and auto stocks rose, but realty stocks fell.

The wholesale inflation increased to 0.12% for the week ended on May 9 compared to a decline on 0.12% for the previous week. For the year so far average inflation was 5.86% compared to 6.62% in the period a year ago.

Bharati Shipyard advanced in early trades after increasing its stake in Great Offshore to 22.4%. Great Offshore Limited rose 0.7% to Rs 569.00.

Gainers & Losers

Alstom Projects India increased 2.4% to Rs 536.40 after the company won a contract to supply signaling equipment and services to the Bangalore Metro Rail Corporation for Rs 563.40 crore.

Asian Paints Limited rose 1.7% to Rs 1,396.00.

Bharti Airtel merger with South Africa based MTN faces yet another hurdle and the twice delayed deadline may be extended again after Sept 30. The current Indian corporate law does not allow dual listing but permits international listing only under GDR or ADR regime. The dual listing structure of Bharti-MTN is still not approved by Indian government.

Nagarjuna Construction Company Limited rose 2.0% to Rs 146.95.

Orchid Chemicals & Pharmaceuticals Ltd increased 5.1% to Rs 165.90 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.

Petronet LNG Ltd rose 2.4% to Rs 76.25 after the importer of LNG is working to diversify downstream and set up two power plants and is planning a rights issue to fund the project.

Ranbaxy Laboratories Limited fell 0.3% to Rs 353.60 said it had entered into a licensing agreement with South Korean firm Medy-Tox Inc for selling a cosmetic product in India.

Reliance Industries Limited decreased 3.8% to Rs 2,098.00 after the company controlled trust that holds treasury shares sold 1.5 crore shares. The sale raised 3,100 crore rupees and may be used to fund international expansion in Brazil and Gulf of Mexico. The sale of stocks was arranged by Bank of America and Citigroup to international investors.

Petroleum Trust controlled 10.47 crore shares or 6.65% stake in the company before the offering. The company has 20 crore shares in treasury since the merger of Reliance Petroleum Ltd.

State Bank of India rose 0.8% to Rs 2,106.70 expects and the largest bank Chairman O.P Bhatt said that the bank will maintain its 40% growth at its UK business.

Tata Consultancy Services Limited climbed 2.6% to Rs 585.25 and the company said that it has opened new global delivery center in Buenos Aires, Argentina.

Thermax Limited increased 3.5% to Rs 525.45 after the global solution provider in energy and environment engineering said that its power division has received a power plant order for Rs 1,001 crore to build 270 MW in Andhra Pradesh.

TVS Motor Company Limited advanced 0.08% to Rs 58.85. Zee Entertainment Enterprises Limited decreased 1.2% to Rs 212.00.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 173.03 or 1.68% to 10,443.80, Hang Seng index in Hong Kong increased 365.59 or 1.71% to 21,768.51 and CSI 300 index in China higher 61.86 or 1.90% to 3,320.10. ASX 200 index in Australia increased 64.50 or 1.39% to 4,714.90. The FTSE Bursa KL Composite index in Malaysia closed higher 5.82 or 0.48% to 1,218.80.

The Kospi Index in South Korea increased 12.14 or 0.72% to close at 1,695.47. SET index in Thailand closed lower 1.02 or 0.14% to 709.23 and JSE Index in Indonesia increased 17.63 or 0.72% to 2,456.99. The Sensex index in India increased 34.07 or 0.20% to 16,711.11.