India Stocks Firm on Domestic Outlook

Mayank Mehta
10 Mar, 2010
New York City

Stocks in India traded higher on the expectations of higher domestic consumption and the government pledge to trim budget deficit. Bolivia moves to scrap contract with Jindal Steel to invest in iron ore mines. Patel Engineering gets government approval for coal linkage for its power plants.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in India traded higher on optimistic outlook driven by higher domestic consumption and the government pledge to trim budget deficit. Bolivia moves to scrap Jindal Steel’s contract to invest in an iron ore mines. Patel Engineering gets government approval for coal linkage for its power projects.[/R]

Stocks in India retained a positive bias. Thermax gained after it announced a joint venture with Babcock & Wilcox to build industrial equipment and Jindal Steel faces hurdles in its investments Bolivia.

The Sensex index in India increased 45.79 or 0.27% to 17,098.33 and CNX Nifty index rose 14.75 or 0.29% to 5,116.25. Among the Sensex 30 stocks, 18 rose and 12 fell.

On BSE trading, 1,178 stocks advanced, 1,660 declined and 74 were unchanged. Auto stocks edged higher and banks closed mixed.

Texmo Pipes & Products initial public offering surged 36% from its listing price of Rs 90 to Rs 122.50. The secondary offering of the iron ore miner NMDC was subscribed 14% on the first day of the issue today.

Seven sugar stocks fell between 1% and 3% after sugar prices in international markets dropped to seven month low.

Rupee edged lower 12 paisa to 45.50 against one dollar.

Gainers & Losers

Anu''s Laboratories Limited fell 1.3% to Rs 7.24 ahead of the board meeting to consider the acquisition of Nitya Laboratories.

Binani Cement Limited climbed 3.9% to Rs 75.80 and the parent Binani Group plans to diversify into commercial real estate development to leverage its land bank and reduce dependence on the cyclical cement business.

BSEL Infrastructure Realty Limited rose 4.8% to Rs 15.14 after the company is preparing to restructure on Mar 25.

GEI Industrial Systems Ltd rose 3.8% to Rs 96.25 after the company received three orders of Rs 54.56 crores for the supply of air cooled heat exchangers for projects from refineries of Indian Oil Corp, MRPL and ONGC.

Ispat Industries Limited fell 1.0% to Rs 19.50 and the company is looking at acquiring stakes in coal mines in Indonesia for its power plant.

Jindal Steel & Power Limited fell 2.4% to Rs 670.00 after the Bolivian government has moved to terminate the company’s 50% interest in EL Mutun iron ore deposit, for not honoring its contractual obligations.

Kale Consultants Limited added 1.5% to Rs 93.50 after extending gains for the second day, after the company secured an order for one of its airline software services.

Marg Ltd fell 1.3% to Rs 195.00 after the company and Virginia Tech entered into a discussion to set up a college campus in Chennai.

Orbit Exports Limited rose 0.8% to Rs 34.50.

Patel Engineering Ltd rose 1.6% to Rs 451.00 after the company said it received approval from central government for coal linkage for its thermal power projects.

Reliance Industries Limited increased 2.1% to Rs 1,011.25.

Tata Motors Limited decreased 2.2% to Rs 778.60 after its UK unit Jaguar Land Rover is getting a 340 million pound loan from the European Investment Bank to help it develop more fuel-efficient cars.

Thermax Limited increased 2.0% to Rs 668.70 and the company and Babcock & Wilcox Power Generation Group, Inc. have formed a joint venture to build efficient subcritical and supercritical boilers and pulverizers for domestic utilities.

The two companies plan to invest Rs 700 crore and Thermax will have 51% stake in the venture. The company expects to increase Thermax sales by Rs 3,000 crore by March 2015 according to chief executive M.S. Unnikrishnan at a press conference in Mumbai.

Uttam Sugar Mills Limited decreased 4.7% to Rs 53.50 after the promoters pledged additional 34.84 lakh shares representing 13.5% of the equity capital of the company.

Videocon Industries Limited fell 0.1% to Rs 231.95 ahead of the board meeting to set the price and ratio for rights issue.