Investment Flows to India Surge; Stocks Rise

Mayank Mehta
24 Dec, 2009
New York City

Foreign direct investment in India gained in November and portfolio investment in the year approached record 2007 flows. Initial public offerings raised $16 billion, trailing only China. Industrial production in key six industries increased 5.3% in the previous month from a year ago.

[R]6:00 PM Mumbai, 8:30 AM New York – Foreign direct investment in India gained in November and portfolio investment in the year approached record 2007 flows. Initial public offerings raised $16 billion, trailing only China. Industrial production in key six industries increased 5.3% in the previous month from a year ago.[/R]

Stocks in Mumbai continue to advance as foreign investors pour money in stocks and direct investment increase. The direct investment in November increased to $1.74 billion and portfolio investment for the year reached $16.8 billion matching the record in 2007 of $17.2 billion.

The Sensex index in India increased 129.50 or 0.7% to 17,360.61 and CNX Nifty index rose 33.80 or 0.6% to 5,178.40. Among the Sensex 30 stocks, 25 rose and 5 fell.

On BSE trading, 1,572 stocks advanced, 1,303 declined and 86 were unchanged.

For the year initial public offering in 2009 raised in all of Rs 80,000 crore or $16 billion.

The wholesale index decreased 0.3% to 284.7 from 285.5 for the previous week. For the year so far average inflation was 14.66% compared to 11.75% in the same period a year ago.

Infrastructure sector including six industries grew an annual 5.3% in November from a year ago according to Trade Minister Anand Sharma said on Thursday. The sector output grew 3.5% in October. The sector accounts for 26.7% of the nation’s industrial output.

Steel production increased 11.7% followed by gains of 9% in cement manufacturing. Electricity generation increased 1.8%.

Automakers rallied with Tata Motors closing at a high in the last one year. Power generators, metals and realty stocks advanced.

Rupee edged higher 12 paisa to 46.75 against one dollar.

Gainers & Losers

Adhunik Metaliks Limited climbed 1.5% to Rs 108.95.

B.L. Kashyap and Sons Limited surged 9.1% to Rs 447.90 after the infrastructure developer said a promoter has revoked a substantial portion of shares pledged earlier.

The Bombay Stock Exchange plans to cut trading charges and launch derivative products on December 29 to stem the decline in market share. The oldest stock exchange in Asia has lost its dominance with the rival NSE controlling now 75% of market share in trading up from 65% only three years ago.

Diamant Investment and Finance Limited increased 4.9% to Rs 124.05 ahead of a board meeting on December 24 to consider bonus issue.

Escorts Limited advanced 3.6% to Rs 124.90 after the tractor maker said board will meet on December 27 to determine the dividend payout.

Glenmark Pharmaceuticals Limited added 1.8% to Rs 284.50 said its U.S. subsidiary received tentative approval from Food and Drug Administration for Pramipexole Dihydrochloride tablets, the generic version of Boehringer Ingelheim''s Mirapex tablets.

GTL Infrastructure Limited rose 0.4% to Rs 36.30 is in advanced stages of talks to buy the tower operations of Aircel for about 8,500 crore rupees ($1.82 billion) according to local media reports.

Hanung Toys and Textiles Limited gained 5.4% to Rs 116.50 said that the company has signed export order tie up with a US company to export home furnishing of $60 million of Rs 280 crores to be completed by December, 2012.

Jet Airways (India) Ltd rose 1.9% to Rs 553.55 and the airline plans raise $400 million by selling shares to foreign institutions.

McLeod Russel India Limited fell 1.0% to Rs 258.35 after the tea plantation operator said its subsidiary Borelli Tea Holdings signed the purchase of Uganda based Rwenzori Tea Investments Ltd. for $25 million from James Finlay Ltd. of U.K.

Patels Airtemp (India) Limited decreased 3.5% to Rs 69.55 and the company received an order of Rs 2.86 crore from Sterling Addlife India.

Polaris Software Lab Limited added 1.1% to Rs 185.00 after the company secured a contract for one of its software products.

Radico Khaitan Limited increased 3.6% to Rs 117.10 after the liquor trader said a joint venture with Diageo has received Foreign Investment Promotion Board''s nod for 100% foreign direct investment.

Rolta India Limited rose 0.1% to Rs 190.70 after the engineering software developer said that it has repurchased $15 million of foreign currency bonds of the total $150 million issued in 2012.

Shriram Transport Finance Company Limited climbed 6.0% to Rs 464.45 after General Electric sold its India transport financial services business for Rs 1,200 crore ($255 million) to the company, the Economic Times reported on Thursday citing people close to the deal.

Sterlite Industries (India) Limited advanced 1.4% to Rs 859.50 tracking the gains in its stock in New York trading.

Tantia Constructions Limited added 0.1% to Rs 114.50 after the company bagged an order of Rs 19.50 crore from Eastern Railways, Kolkata for construction works.