Govt Stake Sale Talks Lift India Indexes

Mayank Mehta
13 Nov, 2009
New York City

Mumbai stocks gained after the finance ministry enlisted sixty companies for a stake sale. Ranbaxy strengthens after the World Health Organization approves its AIDS drug. Usha Martin plans to raise Rs 500 crore. TCS plan to build a software service center in Michigan for Dow Chemical.

[R]6:00 PM Mumbai, 8:30 AM New York – Mumbai stocks gained after the finance ministry enlisted sixty companies for a stake sale. Ranbaxy strengthens after the World Health Organization approves its AIDS drug. Usha Martin plans to raise Rs 500 crore. TCS plan to build a software service center in Michigan for Dow Chemical.[/R]

Stocks in Mumbai gained after the finance ministry said that the government could sell shares in sixty companies. The talks of the stake sale was welcomed by the market as the government stays focused on reforming the economy and continue to invest in infrastructure.

The Sensex index in India increased 152.80 or 0.9% to 16,848.83 and CNX Nifty index rose 46.30 or 0.9% to 4,998.95. Among the Sensex 30 stocks, 25 rose and 5 fell.

On BSE trading, 1,361 stocks advanced, 1,355 declined and 100 were unchanged.

The Center for Monitoring Indian Economy lifted its economic growth outlook to 6.2% from its forecast in October of 6%. Former central bank governor Rangarajan said the economy could grow between 7% and 8% in the fiscal year ending in March 2011and Finance Secretary Ashok Chawla said that unless exports revive the economic growth cannot reach 8%.

Rupee edged lower 4 paisa to 46.69 against one dollar.

Gainers & Losers

BGR Energy Systems Limited advanced 4.9% to Rs 492.00 after the manufacture of industrial machinery and equipments said that it has secured contracts for supply of 72 bundles of air heaters for receiving and re-gasification terminal of Petronet LNG Limited, for supply of 46 numbers of air cooled heat exchanges for Naptha Hydro Treating Unit and Vacumm Gas Oil Hydro Treating Unit from HPCL, Mittal Energy Limited and for the supply of 30 numbers of ACHE for its refinery expansion project at Vadinar, Gujarat.

Golden Tobacco Ltd added 4.9% to Rs 114.85 after the cigarettes maker said after an investor Pramod Jain launched a hostile takeover according to Economic Times.

ICICI Bank Limited rose 1.6% to Rs 909.40 and the lender signed an agreement with Singapore Mercantile Exchange to provide clearing and settlement processing services to traders.

Indiabulls Real Estate slipped 0.7% to Rs 237.35.

JK Paper Limited climbed 4.6% to Rs 40.60 after the manufacturer of integrated paper and board said the company plans to double its Orissa plant capacity to 2.5 lakh metric ton per annum and invest Rs 1,500 crore.

Jubilant Organosys Limited the life sciences company declined 2.3% to Rs 282.00.

Larsen & Toubro Limited added 0.2% to Rs 1,647.00 and the engineering company inaugurated its largest transmission line research and testing station at Ethanoor in Kancheepuram district of Tamil Nadu at an investment of Rs.25 crore over an area of 25 acres, says media reports.

Mukand Limited the manufacturer of alloy and stainless steel long products surged 10.7% to Rs 54.55.

NTPC Limited added 0.3% to Rs 214.95 after thermal power generator plans to invest about Rs 8,100 crore for setting up over 1,000 MW renewable energy projects in the country by 2017.

Oil and Natural Gas Corporation Limited rose 3.0% to Rs 1,183.50 said the government of India has proposed a 31% hike in administered gas prices.

Pyramid Saimira Theatre Limited plunged 9.8% to Rs 15.95.

Ranbaxy Laboratories Limited decreased 0.4% to Rs 410.40 after the pharmaceutical industry said the company''s anti-retroviral AIDS drug Indinavir was approved from the World Health Organization.

Shoppers Stop Limited fell 0.7% to Rs 375.65 and the retailer board is scheduled to meet on Sunday and may discuss new offerings to raise capital.

Steel Strips Wheels Limited the maker of automotive wheel rims rose 4.9% to Rs 101.55.

Usha Martin Limited rose 2.1% to Rs 74.50 after the steel, wire and wire ropes maker board approved Rs 500 crore equity offering.

Zuari Industries Limited gained 3.7% to Rs 397.05 after the company entered into a gas supply agreement with GAIL India for supply of re-liquefied natural gas to its fertilizer plant.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 34.18 or 0.35% to 9,770.31, and Hang Seng index in Hong Kong increased 156.06 or 0.70% to 22,553.63, and CSI 300 index in China higher 18.73 or 0.54% to 3,518.72. ASX 200 index in Australia decreased 41.50 or 0.87% to 4,706.40. The FTSE Bursa KL Composite index in Malaysia was higher 0.79 or 0.06% to 1,270.96.

The Kospi Index in South Korea decreased 0.74 or 0.05% to close at 1,571.99. SET index in Thailand closed higher 1.61 or 0.23% to 698.33. JSE Index in Indonesia increased 6.52 or 0.27% to 2,426.80. The Sensex index in India increased 152.80 or 0.92% to 16,848.83.