India Plans to Raise $3 Billion; Auto Sales Rise

Mayank Mehta
02 Dec, 2009
New York City

Stocks in India traded lower and global markets edged higher as confidence returns in the emerging markets. Auto sales in November surged from a year ago. Tata Motors, Maruti Suzuki India Ltd and Bajaj Auto gained. India plans to sell stakes in three power companies to raise as much as $3 billion.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in India traded lower and global markets edged higher as confidence returns in the emerging markets. Auto sales in November surged from a year ago. Tata Motors, Maruti Suzuki India Ltd and Bajaj Auto gained. India plans to sell stakes in three power companies to raise as much as $3 billion.[/R]

The Sensex index in India decreased 28.36 or 0.1% to 17,169.91 and CNX Nifty index rose 1.25 or 0.02% to 5,123.25. Among the Sensex 30 stocks, 10 rose and 20 fell.

On BSE trading, 1,551 stocks advanced, 1,284 declined and 99 were unchanged.

Direct tax receipts for April to November period rose 3.7% from a year earlier at Rs 1.84 lakh crore, the finance ministry said in a statement on Wednesday.

The government is looking to sell stakes in 25 companies controlled by the state. Power Ministry Secretary H.S. Brahma the government plans to sell a stake in NTPC Ltd to raise 6,000 crore rupees and equal amount from a stake sale in Rural Electrification Corp.

The power ministry is also looking to raise 3,000 crore rupees through a stake sale in Satluj Jal vidyut Nigam Ltd.

Rupee edged higher 17 paisa to 46.14 against one dollar.

Gainers & Losers

ABG Shipyard Limited surged 10.2% to Rs 208.00 said that the company and Eleventh Land Developers Pvt Ltd on December 2, have announced the sale of 30,78,000 shares of Great Offshore Ltd approximately 8.3% of the paid up shareholding in a stock offering.

Arshiya International Limited dropped 3.8% to Rs 158.45 after the supply chain and logistics infrastructure company on profit booking after the stock surged more than 17% in two previous days.

Associated Stone Industries Kotah Limited climbed 1.2% to Rs 75.25.

Bajaj Auto Limited added 3.4% to Rs 1,694.60 after motorcycle sales rose 84% from a year ago month to 2,42,390 units in November.

Chambal Fertilisers and Chemicals Limited added 0.1% to Rs 56.40.

Fedders Lloyd Corporation increased 4.9% to Rs 73.65 and the company was awarded a contract of Rs 120 crore power supply installation and distribution systems in various districts of Madhya Pradesh in joint venture with Cobra Instalaciones Y Servicios Spain from Madhya Pradesh Poorv Kshetra Vidyut Vitaran, Jabalpur.

Flawless Diamond (India) Limited slipped 3.9% to Rs 33.25 and the company received first time gold jewelry order of Rs 18 crore from Sidhh Jewellers Dubai.

Gammon India Limited decreased 0.5% to Rs 237.60 after the civil engineering construction company has been awarded a project for procurement, fabrication and laying of clear water main from Vajarahalli to HBR on the east of Bangalore from the Bangalore Water Supply and Sewerage Board. The total project cost is Rs 309.46 crore.

Indiabulls Real Estate Ltd added 4.3% to Rs 222.80 after a foreign broker raised its rating on the stock to “overweight” from “underweight.”

Indowind Energy Limited increased 4.0% to Rs 47.20 said that it has received Rs 50 crore term loan sanction from Bank of India, for meeting part requirement for acquiring wind farm assets during the current year.

Jaiprakash Associates Limited rose 1.4% to Rs 232.25 after the diversified infrastructural industrial conglomerate has started operations at a new 2.4 million tons a year cement plant, adding to its current annual capacity of 14.7 million tons, the company said on Wednesday.

Maruti Suzuki India Limited advanced 1.5% to Rs 1,612.00 after the car maker total sales rose 66.5% to 87,807 units in November from a year ago.

Shree Cement Limited rose 0.4% to Rs 1,816.00 after the company''s cement shipments rose 15.2% to 7.09 lakh tons in November as against 6.15 lakh tons in the same month last year.

State Bank of India rose 0.6% to Rs 2,307.35.

Tata Motors Limited surged 10.8% to Rs 732.65 said total vehicle sales increased 65.4% to 54,108 units in November from a year ago.

Tata Elxsi Limited surged 19.9% to Rs 203.60 after the providing systems integration and software development services said is opening its first visual effects studio in Los Angeles, part of a growing effort by Indian production companies to capitalize on shrinking Hollywood budgets.

Texmaco Limited the heavy engineering division rose 0.1% to Rs 128.00.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 36.74 or 0.38% to 9,608.94, and Hang Seng index in Hong Kong increased 176.42 or 0.80% to 22,289.57, and CSI 300 index in China higher 36.50 or 1.02% to 3,597.33. ASX 200 index in Australia increased 43.40 or 0.92% to 4,762.40 The FTSE Bursa KL Composite index in Malaysia was higher 4.44 or 0.35% to 1,271.15.

The Kospi Index in South Korea increased 21.91 or 1.40% to close at 1,591.63. SET index in Thailand closed lower 16.50 or 2.32% to 693.51. JSE Index in Indonesia increased 19.06 or 0.78% to 2,471.56. The Sensex index in India decreased 28.36 or 0.16% to 17,169.91.