Momentum Lifts India Stocks; Reliance IPO

Mayank Mehta
22 Sep, 2009
New York City

The benchmark index in India advanced as Asia Development Bank lifted its economic growth target for India to 6%. Advance tax collection for the current quarter surged nearly doubled. Reliance Communications plans to list its infrastructure unit and raise as much as $1 billion.

[R]6:00 PM Mumbai, 8:30 AM New York – The benchmark index in India advanced as Asia Development Bank lifted its economic growth target for India to 6%. Advance tax collection for the current quarter surged nearly doubled. Reliance Communications plans to list its infrastructure unit and raise as much as $1 billion.[/R]

Stocks in Mumbai increased for the fifth session in a row after the Asia Development Bank revised fiscal year growth target to 6% from 5%.

The Sensex index in India increased 145.13 or 0.8% to 16,886.43 and CNX Nifty index rose 44.15 or 0.8% to 5,020.20. Among the Sensex 30 stocks, 24 rose and 6 fell.

On BSE trading, 1,599 stocks advanced, 1,176 declined and 80 were unchanged.

The Reserve Bank of India has frowned on the practice of banks slapping penalty charges on pre-payment of loans, saying it does not approve of such charges but the bank did not elaborate on how it plans to enforce the directive.

Advance taxes paid by domestic companies in India increased 14.7% to 44,001 crore rupees for the current quarter and more than double from 20,700 crore rupees in the previous quarter. Bloomberg reported the data without citing anyone.

Gainers & Losers

Allcargo Global Logistics Ltd soared 7.5% to Rs 892 after the company said that the U.S. based private equity manager Blackstone Group LP will raise its stake in the company.

Axis Bank Limited fell 0.4% to Rs 909.75 has raised $720 million through global depository receipts and the private placement.

Ballarpur Industries Limited increased 2.6% to Rs 24.80 after the paper company said full-year revenue was Rs 2,824.7 crore. Net profit for the quarter fell 38% to Rs 187.9 crore or Rs 2.72 per diluted share compared to net profit of Rs 303.6 crore or Rs 4.76 per share a year ago.

Bharti Airtel Limited declined 2.6% to Rs 430.75 after it made another round of last-minute concessions to complete the deal with South Africa based MTN. Bharti agreed to make cash payment to MTN minority share holders according to a report by the Economic Times.

Cipla Ltd, the generic drug maker plans to sell shares in an institutional offering that at 263.75 rupees each.

Diamond Power Infrastructure Ltd added 1.7% to Rs 218.10 after the company received a huge order for supply of cables aggregating 21,415 kilometers.

Gati Limited rose 3.9% to Rs 60.90 after the engaged in express cargo delivery said that the board of directors has approved the sale of 48,72,000 convertible warrants priced at Rs 81 a warrant to promoter Mahendra Investment Advisors Pvt. Ltd.

Gujarat NRE Coke Limited dropped 3.4% to Rs 66.70 said that the company board will meet on Sept 24 to decide issue of 300 crore rupees or $60 million and recommend bonus 10 shares for every share held.

HDFC Bank Limited rose 1.5% to Rs 1,546.45 chief executive Aditya Puri said that the bank is anticipating growth of 20% and demand is improving for its services.

Hindustan Oil Exploration Company Limited rose 1.0% to Rs 355.00 said that its dispute with state-run gas utility GAIL related to sale of natural gas from PY-1 Field has been settled.

IBN18 Broadcast Limited rose 0.9% to Rs 117.60 after the company said its board will meet on this week to consider rights issue.

Jindal Cotex rose Rs 89.75 a textile firm closed first day of its trading at Rs 77 on the National Stock Exchange with a premium of over 2% over its issue price of Rs 75 and raised 93.4 crore rupees. The offering received two times the bids.

Micro Technologies (India) Limited added 7.2% to Rs 160.50 bagged the largest order for its advance version of vehicle security product; Micro VBB Marshall.

Parsvnath Developers Limited rose 3.0% to Rs 126.35 announced the launch of Parsvnath City, Saharanpur.

Dr. Reddy’s Laboratories Limited fell 0.7% to Rs 858.90 after the company received final approval from UK medicine & healthcare products regulatory agency to market Losartan Potassium tablets in multiple strengths.

Reliance Industries Limited added 0.8% to Rs 2,116.70 said is likely to commence its D-3 exploration program in the Krishna Godavari basin by December 2009.

Reliance Communications Limited advanced 1.1% to Rs 310.20 after Anil Ambani said that the company will file the listing prospectus for its infratel unit “shortly.”

Reliance Infratel has annual revenue of 4,800 crore rupees and net income of 1,700 crore rupees and is expected to raise as much as Rs 5,000 crore.

State Bank of India rose 1.4% to Rs 2,172.55 and the bank said The Reserve Bank of India filed a case against the manager of PPN branch in Kanpur after 10 fake notes of Rs.100 denomination were allegedly deposited.

Simbhaoli Sugars Limited increased 3.9% to Rs 58.05 and the company canceled the plan to issue additional foreign currency convertible bonds plan.

Tata Motors Ltd rose 1.3% to Rs 614.50 after the company was sanctioned a £10 million loan for its new electric car project by the UK government.

Tata Consultancy Services Limited added 1.9% to Rs 595.10 has secured deals worth around $25 million for implementing its financial software products in the Asia-Pacific and the US.

Tata Teleservices Maharashtra surged in early trades on addition of 34 lakh new subscribers.

Zee Entertainment Enterprises Limited rose 4.7% to Rs 218.70.

Asian Markets Review

Hang Seng index in Hong Kong increased 228.29 or 1.06% to 21,701.14 and CSI 300 index in China closed lower 77.58 or 2.42% to 3,131.03. ASX 200 index in Australia decreased 13.70 or 0.29% to 4,663.70. The Nikkei 225 Index in Tokyo and The FTSE Bursa KL Composite index in Malaysia were closed today.

The Kospi Index in South Korea increased 23.38 or 1.38% to close at 1,718.88. SET index in Thailand closed higher 11.21 or 1.57% to 724.37. The Sensex index in India increased 145.13 or 0.87% to 16,886.43. JSE Index in Indonesia was closed today.