WB Loans $10 B to India; Cipla, Suzlon Offering

Mayank Mehta
23 Sep, 2009
New York City

World Bank provided $10 billion in loans to India to support its infrastructure driven stimulus program and recapitalize public sector banks. Jaiprakash Associates, Suzlon, Cipla and others sell stocks to raise more than $400 million. ONGC plans to spend $10 billion to expand energy exploration.

[R]6:00 PM Mumbai, 8:30 AM New York – World Bank provided $10 billion in loans to India to support its infrastructure driven stimulus program and recapitalize public sector banks. Jaiprakash Associates, Suzlon, Cipla and others sell stocks to raise more than $400 million. The state controlled ONGC plans to spend $10 billion to expand energy exploration.[/R]

Stocks rested after rallying for six days. Infrastructure sector stocks continue to advance as more contracts are awarded by public sector units. Washington based World Bank provided $2.2 billion or 10,000 crore rupees loan to Indian government to fund government stimulus and recapitalize banks.

The leaders of 20 industrialized nations are meeting in Pittsburg for a two-day meeting and are expected to reiterate their support for a global stimulus and strengthening world banking system.

The Sensex index in India decreased 166.93 or 0.9% to 16,719.50 and CNX Nifty index fell 50.25 or 1% to 4,969.95. Among the Sensex 30 stocks, 25 fell and 5 rose.

On BSE trading, 996 stocks advanced, 1,784 declined and 80 were unchanged.

Oil & Natural Gas Corp is planning to invest Rs 50,000 crore ($10 billion) and develop new fields and increase output from existing ones according to Chairman R S Sharma said today.

Private Equity firm Sabre Capital is expanding its healthcare find from Rs 250 crore to Rs 400 crore, which will be invested through its subsidiary Spring Healthcare.

Banks use a part of their liquid funds for lending and state govt auctions. Banks parked less than Rs 1,00,000 crore at the Reserve Bank of India’s reverse repo window after almost five months as they used a part of their liquid funds for lending and state government auctions.

Liquor manufacturer Globus Spirits listed its shares at Rs 110 on the Bombay Stock Exchange, 10% above its issue price.

Gainers & Losers

Axis Bank Limited rose 1.1% to Rs 919.85 after it sold 53.828 lakh shares at Rs 906.70 each and raised 4,880 crore rupees.

Bharti Airtel Limited decreased 3.4% to Rs 413.40 after market regulators asked additional changes to the merger deal.

Bhushan Steel Limited climbed 1.5% to Rs 1,311.55 said which recently acquired Australia''s Bowen Energy, is not ""seriously"" looking to buy mines is Australia.

Cipla Limited fell 1.5% to Rs 259.80 after the pharmaceutical company sold 4% of its equity to institutional investors and raised Rs 700 crore rupees.

Jaiprakash Associates Limited dropped 5.2% to Rs 236.90 after the engineering construction company raised 1,190 crore rupees through a sale of 5 crore shares at 238 rupees.

JSW Steel Limited added 3.0% to Rs 825.75 after company promoters lowered the number shares pledged for loans.

Motherson Sumi Systems Limited the diversified conglomerate with focus on auto parts advanced 3.5% to Rs 110.95.

Piramal Healthcare Limited rose 5.9% to Rs 377.00 on market speculation that UK based GlaxoSmithKline Plc is looking for potential acquisitions in the Indian market and has shortlisted Piramal Healthcare and Dr Reddy''s Labs.

Procter & Gamble Hygiene and Health Care Limited the fast moving consumer goods company fell 4.2% to Rs 1,508.10.

Punj Lloyd Limited the engineering contractor fell 1.4% to Rs 266.20.

Ratnamani Metals and Tubes Limited added 4.2% to Rs 111.65 said that it has received orders aggregating to Rs 152 crores from GAIL for gas transmission and distribution projects.

Sujana Towers Limited added 3.0% to Rs 37.15 after the maker of galvanized steel towers said it has issued global depository receipts of $12 million and foreign currency convertible bonds of $12 million.

Suzlon Energy Limited fell 6.1% to Rs 94.65 after the company and its founders sold shares in the recent run up in the market. According to media reports, Suzlon sold 7 crore shares at 96.80 rupees each.

Ten public sector banks rose by 0.7% to 6.6% after the World Bank sanctioned $2 billion, or nearly Rs 10,000 crore, to the government to recapitalize public sector banks and fund infrastructure projects.

United Phosphorus Limited fell 2.4% to Rs 159.15 after a block deal of five lakh shares was executed on NSE at Rs 159 per share.

Venus Remedies Limited rose 4.8% to Rs 265.00 after the pharmaceutical company sold marketing rights for its antibiotic drug to an unnamed South Korean firm.

Asian Markets Review

Hang Seng index in Hong Kong decreased 105.62 or 0.49% to 21,595.52 and CSI 300 index in China closed lower 70.96 or 2.27% to 3,060.07. ASX 200 index in Australia increased 70.40 or 1.51% to 4,734.10. The FTSE Bursa KL Composite index in Malaysia was lower 2.13 or 0.17% to 1219.07. Tokyo markets were closed today and will reopen tomorrow.

The Kospi Index in South Korea decreased 7.41 or 0.43% to close at 1,711.47. SET index in Thailand closed higher 6.15 or 0.85% to 730.52. The Sensex index in India decreased 166.93 or 0.99% to 16,719.50. Markets in Indonesia were closed today.