India Stocks Rise; Satyam Plunges 11%

Mayank Mehta
25 Nov, 2009
New York City

Stocks in Mumbai traded higher. MphasiS Ltd quarterly net rises 34%. Astec LifeSciences IPO closed up 7% from the offer price. Videocon is in discussions to sell 25% stake in its power division. Indian rupee edged higher to 46.29 against a dollar.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded higher. MphasiS Ltd quarterly net rises 34%. Astec LifeSciences IPO closed up 2.5% from the offer price. Videocon is in discussions to sell 25% stake in its power division. Satyam fraud is estimated to be 40% larger.[/R]

The Sensex index in India increased 67.87 or 0.4% to 17,198.95 and CNX Nifty index rose 17.60 or 0.3% to 5,108.15. Among the Sensex 30 stocks, 17 rose and 13 fell.

On BSE trading, 1,290 stocks advanced, 1,486 declined and 74 were unchanged.

Shares of Astec LifeSciences traded as high as Rs 87.55, a premium of 6.8% from the initial public offer price of Rs 82 and closed at Rs 84.

Reliance Industries rose today after the firm reopened retail fuel outlets. Banking and FMCG stocks gained. But realty stocks fell.

Morgan Stanley expects Indian firms to raise roughly $70 billion through share sales over the next three years, Morgan Stanley''s India country head Narayan Ramachandran said at an investment summit on Wednesday, November 25.

Rupee edged higher 8 paisa to 46.29 against the dollar.

Satyam Computer Services Ltd dropped 11% to Rs 90.75 after the Central Bureau of Investigation said that accounting fraud is larger than previously reported by its Chairman B. Ramalinga Raju.

The CBI estimated additional fraud of 2,809 crore rupees in addition to the fraud reported by Raju of 7,100 crore rupees.

Gainers & Losers

Associated Stone Industries Kotah Limited added 8.0% to Rs 73.50 after the company set December 2 to split its stocks.

Bajaj Hindusthan Ltd increased 4.3% to Rs 222.45 after the sugar and ethanol manufacturer plans to expand power generation capacity by 400 MW.

Bharat Heavy Electricals Limited advanced 1.0% to Rs 2,258.70 said it received an order of Rs 5,600 crore ($1.2 billion) to build a 1,980 megawatts thermal power plant in north India.

Golden Tobacco Ltd increased 4.9% to Rs 114.00 after the company said its board will meet on December 1 to consider a proposal from Pramod Jain to acquire another 25% stake in the company.

J. Kumar Infraprojects Limited rose 0.5% to Rs 184.25 after the contractor secured an order of Rs 8.75 crore from Larsen & Toubro.

JSW Steel Limited increased 0.6% to Rs 1,005.85 said last week it tied up with the Japanese steel giant JFE for technology collaboration and may sell as much as 40% in its upcoming 10 million ton steel unit in West Bengal.

MphasiS Limited decreased 3.6% to Rs 671.70 an IT services provider said fourth quarter sales rose 26.5% to Rs 1,132 crore from Rs 894.7 crore a year ago. Net profit for the quarter rose 33.9% to Rs 245 crore or Rs 11.63 per diluted share compared to net profit of Rs 183.0 crore or Rs 8.73 per share a year ago.

MMTC Limited the international trading company added 5.3% to Rs 35,745.00.

Reliance Industries Limited climbed 1.0% to Rs 2,197.00 after the company reopened 900 fuel stations. The stations were closed when the state controlled petrol retail stations were selling petrol at 10% to 20% below the market price.

State Bank of India rose 0.7% to Rs 2,322.85.

Suzlon Energy Limited fell 1.2% to Rs 70.50 after the wind power company said Wednesday it has secured an order from Australia''s Infigen Energy to supply wind turbine generators. The order, won by its Australian unit Suzlon Energy Australia Pty. Ltd., is to supply 20 units of its S88- 2.1 megawatt wind turbines.

Surana Telecom and Power Limited rose 0.8% to Rs 40.35 has decided to spin-off its solar business into Surana Ventures in order to consolidate company''s solar business.

Valecha Engineering Limited decreased 3.7% to Rs 115.50 after the company said its board will meet on Friday, November 27 to consider raising funds.

Videocon Industries Limited advanced 1.3% to Rs 238.00 and the company is in talks with private equity investors to place 25% stake in its power division by April, Chairman Venugopal Dhoot said on Tuesday.

Welspun Gujarat Stahl Rohren Limited rose 3.0% to Rs 280.95 after the company completed the sale of $250 million of securities.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 40.06 or 0.43% to 9,441.64, and Hang Seng index in Hong Kong increased 188.66 or 0.84% to 22,611.80, and CSI 300 index in China higher 81.55 or 2.30% to 3,629.63. ASX 200 index in Australia increased 37.20 or 0.79% to 4,722.20. The FTSE Bursa KL Composite index in Malaysia was lower 1.09 or 0.09% to 1,271.00.

The Kospi Index in South Korea increased 5.46 or 0.34% to close at 1,611.88. SET index in Thailand closed higher 19.47 or 2.88% to 695.69. JSE Index in Indonesia decreased 10.36 or 0.42% to 2,461.53. The Sensex index in India increased 67.87 or 0.40% to 17,198.95.