Sensex Up 2.3%; Indiabulls Power IPO

123jump.com Staff
12 Oct, 2009
New York City

Stocks in Mumbai advanced after Prime Minister reassured investors that economic stimulus will continue. Indiabulls Power initial public offering was oversubscribed five times. Rupee edged higher as international investors increase net exposure to stocks.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai advanced after Prime Minister reassured investors that economic stimulus will continue. Indiabulls Power initial public offering was oversubscribed five times. Rupee edged higher as international investors increase net exposure to stocks.[/R]

The Sensex index in India increased 384.01 or 2.3% to 17,026.67 and CNX Nifty index rose 109.05 or 2.2% to 5,054.25. Among the Sensex 30 stocks, 3 declined and 27 rose.

On BSE trading, 1,621 stocks advanced, 1,106 declined and 94 were unchanged.

Stocks in Mumbai trading advanced after Prime Minister Manmohan Singh reassured the markets on Sunday that the economic stimulus will continue. IT stocks gained on a weak rupee. Metal, realty, banking stocks and print media stocks also gained.

Indiabulls Power IPO was oversubscribed 5.21 times. The issue has received bids for 1.45 billion shares as against the issue size of 278.64 million shares. Maximum bids are received at the higher end of the price band.

The power generation company with 10.7% stake controlled by a subsidiary of steel magnate Laxmi Mittal expects to price the offering between Rs 40 and Rs 45 a share.

Reliance Natural Resource Limited gained on the back of conciliatory noises in the media by the two estranged Ambani brothers ahead of the October 20 Supreme Court hearing.

Rupee edged lower 20 paisa to 46.60 against one dollar.

Gainers & Losers

Apcotex Industries Limited increased 4.9% to Rs 72.35 after the producer of polymer products said its board will meet on October 15 to consider shares buy back.

Astra Microwave Products Limited rose 1.6% to Rs 81.55 after the manufacturer of radio frequency and microwave components said second quarter revenues fell 50% to Rs 14.2 crore from Rs 28.4 crore a year ago. Net loss for the quarter was Rs 6.1 crore compared to net profit of Rs 3 crore a year ago.

Axis Bank Limited rose 1.5% to Rs 1,011.85 after the private sector bank said second quarter net interest income rose 26% to Rs 1,149.68 crore from Rs 913.47 crore a year ago. Net profit for the quarter rose 32% to Rs 531.64 crore compared to net profit of Rs 402.91 crore a year ago.

Bajaj Auto Limited increased 2.7% to Rs 1,633.00 said on the expectation of better than second quarter consensus earnings.

Bajaj Electricals Limited increased 3.9% to Rs 759.05 after the company''s board approved a 5-for-1 stock split.

BGR Energy Systems Limited climbed 1.2% to Rs 490.10 after the manufacture of industrial machinery and equipments said the company is expected to sign a collaboration agreement with Japan-based Hitachi to set up a manufacturing facility for power projects.

Crompton Greaves Limited advanced 3.8% to Rs 332.75 after the marketing electrical products and services related to power generation said the company is eyeing an acquisition in Latin America between $300 million and 600 million.

EID Parry (India) Limited rose 2.2% to Rs 319.10 after the manufacture of sugar acquired a 76% stake in the Bangalore-based Sadashiva Sugars for about Rs 50 crore.

Exide Industries Limited rose 0.2% to Rs 100.70 after the manufacturer of storage batteries said second quarter revenues rose 5.6% to Rs 950 crore from Rs 900 crore a year ago. Net profit for the quarter rose 92% to Rs 150 crore compared to net profit of Rs 78 crore a year ago.

Housing Development Finance Corporation Limited added 2.4% to Rs 2,758.30 after the mortgage finance company said second quarter total income rose 8.8% to Rs 2,850.23 crore from Rs 2,620.59 crore a year ago. Net profit for the quarter rose 24.3% to Rs 664 crore or Rs 22.79 per diluted share compared to net profit of Rs 534.23 crore or Rs 18.4 per share a year ago.

Jet Airways (India) Limited added 0.9% to Rs 436.55 said The Foreign Investment Promotion Board has approved debt-ridden Jet Airways’ plans to raise $400 million (Rs 2,000 crore) in an offering to qualified foreign institutions.

Kajaria Ceramics Limited added 1.8% to Rs 41.20 after the ceramic floor and wall tile manufacturer said second quarter sales rose 11% to Rs 192.24 crore. Net profit for the quarter rose 51% to Rs 8.77 crore.

Peninsula Land Limited rose 3.3% to Rs 85.45 after the real estate company said second quarter sales rose 52% to Rs 169 crore from Rs 111 crore a year ago. Net profit for the quarter rose 33.5% to Rs 72.87 crore compared to net profit of Rs 54.60 crore a year ago.

Reliance Industries Limited increased 2.0% to Rs 2,143.05 and last week the company reported one bonus share for every share held.

RPG Cables Limited rose 4.8% to Rs 22.55 after the power and telecom cables said that the company has sold and transferred 36,418 square meters of surplus land situated at Pokhran Road No.2, Thane, Maharashtra for an aggregate consideration of Rs 51.50 crores to Windsor Realty Pvt Ltd.

Sintex Industries Limited fell 2.7% to Rs 245.30 after the plastics product maker said second quarter total income fell 4.7% to Rs 720.23 crore form Rs 756.07 crore a year ago. Net profit for the quarter fell 32% to Rs 57.23 crore compared to net profit of Rs 83.78 crore a year ago.

The South Indian Bank Limited added 4.4% to Rs 133.40 after the bank said second quarter net profit rose 40.4% to Rs 72.6 crore or Rs 26.83 per diluted share compared to Rs 51.7 crore or Rs 24.97 per share a year ago.

Tata Motors Limited fell 6.4% to Rs 549.50 after the company raised $750 million through an issue of global depositary receipts and convertible notes.

TTK Prestige Limited advanced 10.4% to Rs 285.25 after the kitchen appliances maker said second quarter revenues rose 28% to Rs 139.3 crore form Rs108.8 crore a year ago. Net profit for the quarter rose 135% to Rs 16.9 crore compared to Rs 7.2 crore a year ago.

Welspun Gujarat Stahl Rohren Limited rose 2.4% to Rs 273.50 after the pipe producing company said that the order book touched Rs.10,000 crore including orders executed during second quarter.

Asian Markets Review

The Hang Seng index in Hong Kong decreased 200.09 or 0.93% to 21,299.35, and CSI 300 index in China lower 12.08 or 0.38% to 3,151.63. ASX 200 index in Australia decreased 13.10 or 0.28% to 4,738.80. The FTSE Bursa KL Composite index in Malaysia was lower 0.49 or 0.04% to 1,233.33. The Nikkei 225 Index in Tokyo was closed today.

The Kospi Index in South Korea decreased 6.98 or 0.42% to close at 1,639.81 SET index in Thailand closed higher 4.99 or 0.67% to 751.86. JSE Index in Indonesia decreased 17.71 or 0.72% to 2,456.69. The Sensex index in India increased 384.01 or 2.31% to 17,026.67.