Sensex in India Surges 1.5%; Exports Up 11.5%

Mayank Mehta
11 Feb, 2010
New York City

Mumbai stocks surged after Reserve Bank of India increased transparency in how it determines interest rates. January exports increased 11.5%. DLF said residential sales in the month were satisfactory. Unitech sells 7.2% stake in its wireless unit to Telenor Asia.

[R]6:00 PM Mumbai, 8:30 AM New York – Mumbai stocks surged after Reserve Bank of India increased transparency in how it determines interest rates. January exports increased 11.5%. DLF said residential sales in the month were satisfactory. Unitech sells 7.2% stake in its wireless unit to Telenor Asia. Fortis Healthcare is looking to raise $250 million.[/R]

Stocks in Mumbai trading surged after LIC estimated markets to advance more than 8%, DLF said home sales were strong in January and exports in the month increased 11.5%.

The Sensex index in India increased 230.42 or 1.45% to 16,152.59 and CNX Nifty index rose 69.65 or 1.46% to 4,826.85. Among the Sensex 30 stocks, 28 rose and 2 fell.

On BSE trading, 1,593 stocks advanced, 1,191 declined and 97 were unchanged.

Sixteen banks rose between 0.4% and 2.7% after the central bank replaced the existing system of prime lending rate with a new base rate to make the credit market more transparent.

Metal, realty, auto and banking stocks surged and consumer goods stocks gained.

Exports in January rose 11.5% to $14.3 billion, Trade Minister Anand Sharma said today. He also said foreign direct investment in December increased at an annual rate of 13% to $1.5 billion.

Reserve Bank of India Deputy Governor Subir Gokarn said on Thursday there would be no policy decision until April 2010 unless situation demands it. Gokarn also said there is no proposal to bring down interest rates on saving accounts.

Rupee edged higher 4 paisa to 46.44 against one dollar.

Mohan Raj, executive director of investments at Life Insurance Corp of India said that the benchmark index Sensex may increase as much as 8.3% in a month.

DLF added 1.8% to Rs 307 after executive director Rajeev Talwar said residential sales in January “have been good and collections have been better than that.”

Wholesale Price index Increase

The wholesale price index increased 0.1% to 285.2 from 284.9 for the previous week. For the year so far average inflation was 15.75% compared to 8.17% in the same period a year ago.

Gainers & Losers

The Bombay Dyeing & Manufacturing Company Limited fell 0.3% to Rs 517 after the textile, polyester and real estate said its board will meet to issue warrant to promoters.

Firstsource Solutions Limited rose 2.7% to Rs 31.40 after the Indian business process outsourcing company said Thursday it has received a three-year order from U.S.-based debit card company UniRush LLC.

Fortis Healthcare added 3.3% to Rs 13.72 after the company''s board approved to raise up to Rs 1,250 crore.

Four Soft Limited increased 2.2% to Rs 24.65 after the custom software developer was reported to have received new orders.

JSW Steel Limited gained 2.3% to Rs 983.50 after the company is set to buy two coal mines in US.

Kingfisher Airlines Limited advanced 2.4% to Rs 51.70 after the company said it had got the regulatory approval for operating on seven new international routes, taking the number of overseas destinations it operates to 14 from the current seven.

NIIT Technologies Ltd rose 0.5% to Rs 170.90 and the Border Security Force the country’s paramilitary force tasked with securing its borders has awarded the Rs 228 crore ''Intranet Prahari'' project to company.

Panacea Biotec Limited rose 0.8% to Rs 199.00 after the private limited company hiked its stake in the firm.

Transgene Biotek Limited rose 4.9% for the second day to Rs 70.00 after the company announced that a drug for liver cancer developed by its scientists has demonstrated efficacy in the latest animal studies.

Trinethra Infra Ventures Limited fell 2.3% to Rs 47.50 after P Koteswara Rao, a director and also a promoter of the company pledged 24 lakh shares representing 7.43% of the equity capital of the firm.

Unitech Limited climbed 4.2% to Rs 75.20 after the real estate developer sold additional shares to Telenor Asia Pte Ltd. for acquisition of 7.15% stake in Unitech Wireless for Rs 2,022 crore.