India, Japan Trade Accords; Jindal Power IPO

Mayank Mehta
29 Dec, 2009
New York City

Japan and India signed several agreements as Prime Minister Hatoyama concludes his 3-day trip to India. Japan expects to make several billion dollars of investment to develop Delhi- Mumbai investment corridor. Jindal Power Ltd files to raise $1.5 billion.

[R]6:00 PM Mumbai, 8:30 AM New York – Japan and India signed several agreements as Prime Minister Hatoyama concludes his 3-day trip to India. Japan expects to make several billion dollars of investment to develop Delhi- Mumbai investment corridor. Jindal Power Ltd files to raise $1.5 billion.[/R]

The Sensex index in India increased 40.95 or 0.2% to 17,401.56 and CNX Nifty index rose 9.55 or 0.1% to 5,187.95. Among the Sensex 30 stocks, 19 rose and 11 fell.

On BSE trading, 1,866 stocks advanced, 984 declined and 85 were unchanged. Power generators, telecom and software exporters led gainers in trading. Software outsourcing companies are trading at a one-year high.

Prime Minister Manmohan Singh said on December 28 that the economy will grow at 7% or higher in the current fiscal year ending in March.

India and Japan signed two far-reaching agreements on Monday for implementing the ambitious Delhi-Mumbai Industrial Corridor projects which seeks to create integrated investment regions and industrial areas across six states. Prime Minister Yukio Hatoyama concluded his three-day visit to India and promised to review travel visa restrictions.

Trade between the two countries is expected to expand from $12 billion to $20 billion in next year but that is significantly lower than $267 billion trade between China and Japan.

Rupee edged lower 4 paisa to 46.69 against one dollar.

Gainers & Losers

Colgate-Palmolive (India) Limited dropped 1.4% to Rs 653.00 after the personal care products maker said workers at a toothpowder factory at Aurangabad, Maharashtra have gone on strike since Saturday.

Diamant Investment and Finance Limited rose 5.0% to Rs 130.25 after the road builder said that the board approved the issuance of three bonus shares for every share held.

Deccan Chronicle Holdings Limited fell 1.1% to Rs 169.20 after publisher of newspapers said Asianage Holdings Ltd., Deccan Chronicle Bangalore Ltd. and Sieger Solutions Ltd. will be merged with Deccan Chronicle Holdings effective April 1.

ETC Networks Limited gained 4.9% to Rs 210.55 said that the board Zee Entertainment Enterprises Ltd has approved the proposed share swap ratio for the merger of the company with Zee Entertainment Enterprises and the proposed share entitlement ratio for the subsequent demerger of education business into Zee Learn Limited.

ICICI Bank Limited rose 1.7% to Rs 877.65 after the bank plans to raise Rs 1,200 crore through bond offering.

Jindal Power Ltd files to raise Rs 7,200 crore, the second largest public offering by a power company in two years after Reliance Power Ltd raised $3 billion in January 2008.

Max India Limited increased 2.2% to Rs 229.05 after the company said that U.S. based investment bank Goldman Sachs affiliated fund has agreed to invest Rs 540 crore in the company.

McLeod Russel India Limited increased 3.6% to Rs 268.30 after the company recently agreed to acquire Uganda based tea plantation.

NMDC Limited increased 2.9% to Rs 426.45 and the state controlled iron ore mineral mining company said that the government is planning to sell 8.4% stake sale through public offering.

Patels Airtemp (India) Limited rose 4.1% to Rs 72.40 after the company won two orders aggregating Rs 5.42 crore.

Power Grid Corporation of India Limited rose 1.6% to Rs 110.50 after the transmission of bulk power across different states said that it has received a project from Municipal Corporation of Delhi for Rs 34 crore.

Shree Ashtavinayak Cine Vision Limited added 4.1% to Rs 79.90 said that the board has approved the sale of 17.8 million shares to raise $53.3 million or Rs 256 crore in Global Depository Receipts.

Ranbaxy Laboratories Limited dropped 0.8% to Rs 515.10 after the pharmaceutical industry said the U.S. Food and Drug Administration warned its U.S. unit about violations of good manufacturing practices.

Reliance Power Limited increased 5.7% to Rs 155.35 after the first unit of the firm''s 1,200 megawatt power plant in Uttar Pradesh started supplying electricity to UP Power Corporation, ahead of schedule. The power company began producing 20 megawatts at Rosa power plant and plans to expand to produce 28,200 megawatts of power in the next five year. The expanded power will supply nearly 20% of total power generated in India.

Sesa Goa Limited dropped 0.1% to Rs 403.50 an iron ore exporter said that the recent increase in export duty by 5% will affect sales.

Shriram Transport Finance Company Limited dropped 3.3% to Rs 452.00 after rising nearly 7% on previous trading session on Thursday.

Tantia Constructions Limited increased 3.7% to Rs 119.65 said it receive Rs 34.62 crore project from Municipal Corporation of Delhi.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 3.83 or 0.04% to 10,638.06, and Hang Seng index in Hong Kong increased 19.22 or 0.09% to 21,499.44, and CSI 300 index in China higher 22.30 or 0.64% to 3,500.74. ASX 200 index in Australia increased 54.20 or 1.13% to 4,845.10. The FTSE Bursa KL Composite index in Malaysia was higher 2.49 or 0.20% to 1,275.22.

The Kospi Index in South Korea decreased 13.11 or 0.78% to close at 1,672.48. SET index in Thailand closed higher 8.45 or 1.15% to 742.16. JSE Index in Indonesia increased 9.30 or 0.37% to 2,518.99. The Sensex index in India increased 40.95 or 0.24% to 17,401.56.