India Growth at 7.5%; Reliance Raises $575 M

Mayank Mehta
04 Jan, 2010
New York City

Stocks in India gained on the expectations of faster economic growth in the current fiscal year and expanding manufacturing sector. Reliance Industries raised $575 million to purchase LyondellBasell Industries in a second sale of treasury stocks. Exports increased 18% in November.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in India gained on the expectations of faster economic growth in the current fiscal year and expanding manufacturing sector. Reliance Industries raised $575 million to purchase LyondellBasell Industries in a second sale of treasury stocks. Exports increased 18% in November.[/R]

The Sensex index in India increased 93.92 or 0.5% to 17,558.73 and CNX Nifty index rose 31.15 or 0.6% to 5,232.20. Among the Sensex 30 stocks, 23 rose and 7 fell.

On BSE trading, 2,126 stocks advanced, 752 declined and 71 were unchanged.

Reliance Industries recovered from lower level on market talks the company has raised Rs 2,600 crore by selling 2.5 crore shares at Rs 1,035 each to state-run Life Insurance Corporation of India.

Auto makers advanced after companies reported strong December sales. IT, cement, banking, metal and consumer durables stocks also rose.

The economy is expected to grow at more than 7.5% in the fiscal year ending March boosted by better growth in the December quarter, the finance ministry''s chief economic advisor Kaushik Basu said on Monday.

JSW Energy settled at Rs 100.75, a premium of 0.75% over the initial public offer price of Rs 100. The power generator traded as high as Rs 102.

Rupee edged higher 7 paisa to 46.54 against one dollar.

November exports increased 18.2% to $13.20 billion and rose 12.4% when measured in rupees. Exports in the eight months ending in the month increased 22.3% in the dollar and 14.7% in rupees. Imports in the month fell 2.6% to $22.89 billion and in the eight-month period decreased 7.4% from a year ago period.

Gainers & Losers

Apollo Tyres Ltd increased 5.5% to Rs 51.50 after the company said promoters have revoked a portion of pledged shares.

FCS Software Solutions Limited increased 5.3% to Rs 15.85 after the company said its board will meet on January 11 to consider issue of bonus shares.

Godrej Consumer Products Limited advanced 3.6% to Rs 273.50 and the company is close to acquiring Indonesian household products firm Megasari in a deal estimated to be worth between Rs 1200 crore and Rs 1400 crore, the Economic Times paper reported.

Hindustan Construction Company Limited added 1.4% to Rs 148.15 and it said it has received an order from Hindalco Industries Ltd, Orissa, for the fabrication of smelter.

The contract of Rs 108.73 crore requires the project to be completed in 19 months.

ICICI Bank Limited rose 0.3% to Rs 878.90 and the bank and UK Trade & Investment today signed a memorandum of understanding that will that will provide assistance to bank’s customers to acquire businesses and make investments in the UK.

Kalpataru Power Transmission Limited rose 2.0% to Rs 1,115.00 said promoters have revoked a substantial portion of pledged shares.

Larsen & Toubro Limited increased 0.6% to Rs 1,689.70 said that it has secured a order of Rs 987 crores from Gujarat Narmada Valley Fertilizers Company Limited for setting up a 1,120 MTPD Ammonia equivalent, natural gas based synthesis gas generation plant at Bharuch, Gujarat in June 2012.

Marico Limited rose 0.4% to Rs 103.50 after the consumer goods maker said Monday that its unit has acquired a hair-styling brand in Malaysia from U.S. based Colgate-Palmolive Co.

Mahanagar Telephone Nigam Limited increased 5.2% to Rs 77.65 after the company asked the government to pay for pension to retired workers as it battles falling revenues and earnings.

Reliance Industries Limited fell 1.6% to Rs 1,072.10 said that Petroleum Trust sold approximately 258.50 lakh equity shares of the company today.

Sadbhav Engineering Limited decreased 0.1% to Rs 1,225.05 after the Engineering and infrastructure development firm secured an order of Rs.490 crore for the construction and maintenance of four-lane road project in Andhra Pradesh.

Shakti Pumps (India) Limited advanced 1.1% to Rs 124.00 after the manufacture of stainless steel submersible pumps said it has bought back foreign currency convertible bonds aggregating $6.5 million.

Shriram Transport Finance Company Limited dropped 1.5% to Rs 477.60 and the stock recently had run up by 7%.

Sical Logistics Limited increased 3.5% to Rs 77.80 and a unit of the company secured a contract of Rs 163 crore.

Suryachakra Power Corporation Limited rose 0.9% to Rs 21.70 said its board will meet today to decide on the placement of $100 million in foreign currency convertible bonds.

Tera Software Limited rose 4.9% to Rs 44.50 after the company said one of the key shareholders increased his stake in the firm.

Welspun Gujarat Stahl Rohren Limited added 1.5% to Rs 274.15 after the steel pipe maker said on Monday its board has cancelled the demerger plan of its plate-cum-coil mill, with the change in the global economic scenario.