India Stocks Firm; Reliance Bonus Issue

Mayank Mehta
08 Oct, 2009
New York City

Stocks in India continue to hover near their recent highs ahead of strong earnings expectations. Rupee edged higher as foreign investors increase their exposure to Indian equities. Reliance Industries declared a bonus and 13 rupees per share dividend.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in India continue to hover near their recent highs ahead of strong earnings expectations. Rupee edged higher as foreign investors increase their exposure to Indian equities. Reliance Industries declared a bonus and 13 rupees per share dividend.[/R]

Stocks in Mumbai increased after Reliance Industries declared bonus share and Rs 13 per share dividend. The equity expansion suggested that the company is expecting higher earnings.

The Sensex index in India increased 36.88 or 0.2% to 16,843.54 and CNX Nifty index rose 16.50 or 0.3% to 5,002.25. Among the Sensex 30 stocks, 8 declined and 22 rose.

On BSE trading, 1,235 stocks advanced, 1,515 declined and 110 were unchanged.

Rupee edged higher as foreign investors continue to purchase stocks in India and investors expect between 6.5% and 7% economic growth in the current fiscal year. Rupee edged to 46.35 against one dollar and up 5.3% for the year, third best performing currency in Asia.

Gainers & Losers

Advanta India Limited advanced 6.5% to Rs 612.55 an international agronomic seed company said board approved raising up to Rs 750 crore.

Axis Bank Limited increased 3.3% to Rs 1,012.65 after the company selected JPMorgan, Deutsche Bank and Goldman Sachs to arrange a roughly $1.25 billion share sale according to various media reports.

Bajaj Electricals Limited surged 10.3% to Rs 712.00 after the company said its board will meet on October 12 to consider stock split.

Chowgule Steamships Limited rose 4.5% to Rs 49.60 after the ocean carrier said second quarter net profit surged 305% to Rs 40.63 crore a year ago.

EdServ Softsystems Limited increased 4.9% to Rs 166.70 after the education company was selected to train staff of ministry of labor and employment of central government.

Era Infra Engineering Limited rose 3.6% to Rs 175.90 said that the company is awarded two contracts worth Rs 146.79 crores.

Financial Technologies (India) Limited added 4.3% to Rs 1,340, the stock has corrected 7.31% in the preceding four sessions.

Goa Carbon Limited fell 3.8% to Rs 103.15 after the manufacturer of calcined petroleum coke said that the board has approved to raise Rs 100 crore to fund its project in China.

HDFC Bank Limited rose 1.1% to Rs 1,689.50 and Chairman Deepak Parekh said mortgage loan approval has increased 30% in the second quarter from the first quarter.

IRB Infrastructure Developers Ltd rose 0.5% to Rs 238.60.

IVRCL Infrastructures & Projects Limited rose 0.2% to Rs 384.85 said on Thursday it won orders worth Rs 523.31 crore from a government agency in Uttar Pradesh and a Pune-based company.

Larsen & Toubro Limited decreased 1.6% to Rs 1,649.30.

Nu Tek India Limited climbed 2.8% to Rs 103.20 and the telecom infrastructure services company plans to consider dividend on Oct 20 meeting.

Ranbaxy Laboratories Limited added 2.1% to Rs 408.00 after the pharmaceutical industry said its French unit had been raided by European antitrust regulators as part of a probe that may be related to the French government resistance to the generic drugs introduction in the country.

Reliance Industries Limited added 2.1% to Rs 2,144.20 after the board approved one bonus share for every share held.

The private sector company said full-year total income rose 6.3% to Rs 141,847 crore from Rs 133,443 crore a year ago. Net profit for the full-year fell 21.3% to Rs 15,309 crore or Rs 96.8 per diluted share compared to net profit of Rs 19,458 crore or Rs 134.2 per share a year ago.

Dr. Reddy’s Laboratories Limited rose 2.1% to Rs 968.80 after the pharmaceutical company said British-based GlaxoSmithKline has emerged as frontrunner for a phased buy-in to the company.

State Bank of India rose 0.6% to Rs 2,115.00 .

Shiv-Vani Oil & Gas Exploration Services Ltd advanced 1.8% to Rs 345.10 said second quarter consolidated net profit rose 18.5% to Rs 56.39 crore a year ago.

Steel Authority of India rose 1.3% to Rs 173 on news reports that the government is likely to split the Chiria iron ore mine in Jharkhand.

Suryajyoti Spinning Mills Limited rose 4.0% to Rs 19.25 after the cotton yarn maker said the company’s weaving and processing unit in collaboration with Italy based Pangea Srl at Kucherkal village, Andhra Pradesh to manufacture 20 million meters fabric commenced commercial production from October 1.

Valson Industries Limited added 4.9% to Rs 88.40 after the textile processor said that the company is looking to raise additional capital to fund expansion.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 32.87 or 0.34% to 9,832.47, Hang Seng index in Hong Kong increased 251.31 or 1.18% to 21,492.90, ASX 200 index in Australia increased 72.90 or 1.55% to 4,768.60. The FTSE Bursa KL Composite index in Malaysia was higher 11.48 or 0.94% to 1,230.09. CSI 300 index in China were closed today.

The Kospi Index in South Korea increased 17.46 or 1.09% to close at 1,615.46 SET index in Thailand closed higher 2.11 or 0.28% to 744.03. JSE Index in Indonesia decreased 28.89 or 1.15% to 2,484.52. The Sensex index in India increased 36.88 or 0.22% to 16,843.54.