India Stocks Sustain Gains; DB Corp IPO

Mayank Mehta
06 Jan, 2010
New York City

Mumbai stocks retained their momentum as evidence of economic health mount. The publisher of Hindi and Gujarati newspapers D.B. Corp on its first day of trading increased 25%. Bharat Heavy Electricals received an order to set up a solar power plant in Karnataka.

[R]6:00 PM Mumbai, 8:30 AM New York – Mumbai stocks retained their momentum as evidence of economic health mount. The publisher of Hindi and Gujarati newspapers D.B. Corp on its first day of trading increased 25%. Bharat Heavy Electricals received an order to set up a solar power plant in Karnataka.[/R]

Mumbai stocks edged higher as investors grow more confident. The recent estimate of economic growth and rising tax collection and growing industrial production has bolstered investors’ enthusiasm.

The Sensex index in India increased 14.89 or 0.08% to 17,701.13 and CNX Nifty index rose 3.90 or 0.07% to 5,281.80. Among the Sensex 30 stocks, 15 rose and 15 fell.

On BSE trading, 1,488 stocks advanced, 1,408 declined and 73 were unchanged.

Reliance Industries rose 1.8% on bargain hunting after the stock declined for two days in a row. Consumer goods stocks rose on bargain hunting. Software services providers fell after the rupee edged higher. Metals and Auto stocks fell on profit taking.

DB Corp Ltd surged to Rs 264.20, a premium of 24.6% over the initial public offer price of Rs 212. The company plans to use the proceeds to repay debt, upgrade printing presses and expand its publishing units. The publisher of Dainik Bhaskar and Divya Bhaskar raised Rs 270 crore in the offering.

Rupee edged higher 15 paisa to 46.09 against one dollar.

Gainers & Losers

Bharat Heavy Electricals Limited dropped 0.4% to Rs 2,421.50 after the company received an order of Rs 42 crore to build a 3 megawatt solar power plant in the southern state of Karnataka.

Clutch Auto Limited surged 9.9% to Rs 58.45 after the clutch manufacturer and exporter announced that the board approved January 4 to acquire 50,000 square meters of land in Alwar, Rajasthan.

Gemini Communication Ltd increased 4.9% to Rs 49.15 after the company expects fiscal 2011 revenues to double at Rs 600 crore and expects fiscal 2010 earnings per share to increase four-fold.

Jaihind Projects Limited gained 1.0% to Rs 149.15 after the oil and gas services provider secured three orders of Rs 25.31 crore.

ICICI Bank Limited rose 0.8% to Rs 895.15 and an executive at the bank suggested a robust demand for mortgage loans.

KEI Industries Limited gained 5.2% to Rs 37.90 and the power cables marketer signed a technical pact with Brugg Kabel AG of Switzerland to make extra high voltage cables ranging from 66-220 kilovolt.

Maruti Suzuki India Limited declined 3.2% to Rs 1,466.80 on the worries that exports of small cars to Europe may suffer as governments remove subsidiary to sell old cars.

Nakoda Textile Industries Ltd decreased 0.9% to Rs 64.00 after the company fixed January 25 as record date for issue of bonus shares of 1 for each share held.

National Aluminium Company Limited dropped 5.8% to Rs 476.00 and the stock had surged 30% in the last three sessions.

Opto Circuits (India) Ltd rose 0.1% to Rs 237.90 after a company in Germany received a regulatory approval for the sale of Eluting Stent-Taxcor Plus.

The Phoenix Mills Limited gained 4.7% to Rs 214.60 after Citigroup initiated the coverage of the retail and hotel conglomerate with a “buy” rating.

Pidilite Industries Limited surged 12.6% to Rs 220.40 after the company said its board will meet on January 28 to consider bonus issue.

Steel Strips Wheels Limited increased 4.9% to Rs 111.85 after the sale of automotive wheel rims secured an overseas contract.

Sunil Hitech Engineers Limited rose 1.0% to Rs 236.00 after the company received an order of Rs 488 crore from Maharashtra State Power Generation Company Ltd.