India Stocks Surge; Outlook Revised to 8%

Mayank Mehta
23 Dec, 2009
New York City

Stocks in Mumbai surged after Finance Minister Mukherjee lifted fiscal year economic growth to 8%. Jindal Saw secures orders of $240 million. Lupin settles litigation with U.S. based Forest Laboratories to launch generic tablets. Adani Power Ltd subsidiary wins 1,200 mw power bid in Rajasthan.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai surged after Finance Minister Mukherjee lifted fiscal year economic growth to 8%. Jindal Saw secures orders of $240 million. Lupin settles litigation with U.S. based Forest Laboratories to launch generic tablets. Adani Power Ltd subsidiary wins 1,200 mw power bid in Rajasthan.[/R]

Stocks in Mumbai surged after Finance Minister Pranab Mukherjee said fiscal year economic expansion is likely to be 8%, higher than previous estimate of 6.5%.

The Sensex index in India increased 539.11 or 3.2% to 17,231.11 and CNX Nifty index rose 158.75 or 3.1% to 5,144.60. Among the Sensex 30 stocks, 30 rose.

On BSE trading, 1,898 stocks advanced, 931 declined and 92 were unchanged.

Reliance Industries spurted on a new gas find in the prolific KG basin in the Bay of Bengal. Three other index members ICICI Bank, Infosys and L&T, also surged. Metal, power, capital goods, realty, banking and IT stocks jumped.

The government will wait until the February 2010 budget to consider withdrawing some of the fiscal stimulus measures, Finance Minister said on Wednesday. Mukherjee said on Wednesday that inflation and fiscal consolidation are major challenges in short to medium term.

Growth outlook for the second half of FY 2010 looks better, he added. The finance minister said farm output must grow 4% for the economy to expand 9-10% annually. He said industrial production has started picking up.

Planning Commission Deputy Chief Montek Singh Ahluwalia said on Wednesday fiscal year 2010 GDP growth is likely to be better than 7% and that negative impact of drought will be evident in third quarter.

Rupee edged lower 4 paisa to 46.84 against one dollar.

Gainers & Losers

Adani Power Limited added 1.4% to Rs 98.80 said that its Rajasthan subsidiary has signed letter of intent with Rajasthan Rajya Vidhyut Utpadan Nigam Ltd for purchase of up to 1,200 MW of power on long-term basis.

Aegis Logistics Limited decreased 3.4% to Rs 198.35 on profit taking after the stock surged almost 12% in the preceding three trading sessions.

Atul Ltd the chemical company increased 2.3% to Rs 83.15 and GVK Power & Infrastructure Limited rose 2.4% to Rs 47.95.

Hotel Leela Venture Limited climbed 2.6% to Rs 44.65.

ICICI Bank Limited gained 3.5% to Rs 855.55 as banks rallied on the revised economic outlook.

Jindal Saw Limited added 2.1% to Rs 186.75 after the pipe manufacturing company said it has secured orders of Rs 1,100 crore ( $240 million) for supplying pipes from various vendors.

KEC International Limited fell 1.1% to Rs 565.85 after the power transmission builder secured an overseas order of Rs 401 crore.

Lupin Limited climbed 0.9% to Rs 1,460 after the pharmaceutical company said it has reached an out-of-court settlement with the U.S. based Forest Laboratories Inc. and can launch its generic version of the company''s Namenda tablets by January 2015, or earlier depending on certain conditions.

Maruti Suzuki India Limited rose 1.7% to Rs 1,556.60 and the copany plans to launch a new family car ‘Eeco’ with a 1,200cc petrol engine in the under Rs 4,00,000 or $8,800.

Murli Industries Limited increased 3.8% to Rs 233.40 after the chemical and power conglomerate plans to convene a board meeting on Dec 24 to repurchase its foreign currency bonds issued in 2007.

National Aluminium Company Limited advanced 4.1% to Rs 390.65.

NTPC Limited increased 6.3% to Rs 228.65 after the generation thermal power said the central government’s plans to allow existing power projects to sell a part of their unallocated generation capacity in the open market at market-determined prices.

Reliance Industries Limited rose 4.6% to Rs 1,065.90 after it reported third successive natural gas find that may be as big as the first field. The third field was previously estimated to have recoverable natural gas of 9.6 trillion cubic feet.

Shriram EPC Limited the service provider of integrated design fell 0.05% to Rs 220.15.

Videocon Industries Limited rose 1.1% to Rs 224.75 after the electronics and home appliances maker said the company may make and sell televisions under the Philips brand in India.