India's Production Surges; Russia Defense Pacts

Mayank Mehta
12 Mar, 2010
New York City

Industrial production surged in January as industries use up spare capacity. Stocks struggled but edged up and for the week the Sensex increased 1%, fifth weekly gain in a row. Russian Prime Minster Putin hopes to sign defense pacts and nuclear power plants contracts with India during his visit.

[R]6:00 PM Mumbai, 8:30 AM New York – Industrial production surged in January as industries use up spare capacity. Stocks struggled but edged up and for the week the Sensex increased 1%, fifth weekly gain in a row. Russian Prime Minster Putin hopes to sign defense pacts and nuclear power plants contracts with India during his visit.[/R]

The Sensex index in India decreased 1.34 or 0.01% to 17,166.62 and CNX Nifty index rose 3.60 or 0.07% to 5,137. Among the Sensex 30 stocks, 13 rose and 17 fell.

On BSE trading, 1,028 stocks advanced, 1,809 declined and 91 were unchanged. IT, realty and banking stocks fell. Reliance Industries pared early gains. Shares of FMCG giant Hindustan Unilever fell for the second day in a row.

Industrial production index in India increased 16.7% in January and in the first ten months the index gained 9.6% compared to a year ago. Manufacturing index advanced 17.9% and electricity output decreased 5.6% in the month.

India’s economic growth is expected to reach 8.5% in the next fiscal year, Deputy Chairman of the Planning Commission Montek Singh Ahluwalia said on Friday. He also said foreign fund inflows are expected to be robust.

India''s economy could expand over 8.5% in the March quarter, the finance ministry''s chief economic adviser Kaushik Basu said on Friday.

Russian Prime Minister Vladimir Putin today pledged to develop banking ties with India to boost cooperation between the two countries. Putin met President Pratibha Patil as he began his New Delhi visit. Russia is looking to sign defense pact for Mig-29 fighter planes and looking to bid for more nuclear power plants in India.

The secondary public offer of iron ore miner NMDC was fully subscribed on the last day of offering today.

Rupee edged higher 17 paisa to 45.44 against one dollar.

Gainers & Losers

The Bank of Rajasthan Ltd increased 5.8% to Rs 63.46 after shareholders approved a proposal to raise up to Rs 250 crore via a qualified institutional placement.

Bajaj Holdings & Investment Limited rose 0.2% to Rs 591.00 after the wealthiest are selling a part of their personal stakes in group companies to generate cash to pay for the preferential warrant issue of the company, the listed holding company of its flagship firm Bajaj Auto Ltd.

Fortis Healthcare Limited rose 3.5% to Rs 184.65 after the company through its subsidiary agreed to acquire 23.9% stake in Singapore based Parkway Holdings Ltd from the U.S. private equity group TPG Capital.

HDFC Bank Limited fell 1.2% to Rs 1,804.50.

Mahindra Satyam gained 1.4% to Rs 99.65 after the company signed a four-year offshore contract of $48 million with KMD, a Denmark-based information technology company.

Nitin Fire Protection Industries Limited dropped 2.7% to Rs 366.00 after the firm''s Chairman & Managing Director pledged five lakh shares representing 3.97% of the equity capital of the company.

Oil and Natural Gas Corporation rose 0.2% to Rs 1,086.51 on the reports that Russia is considering inviting the state-run company to develop oil and gas fields in country.

Phillips Carbon Black Limited advanced 2.3% to Rs 200 after the supplier of carbon black plans to raise as much as Rs 200 crore in a direct placement.

Ranbaxy Laboratories Limited rose 0.5% to 462.80 after the pharmaceutical company said Friday it aims to achieve global revenue of $3 billion or about Rs 14,000 crore in the year 2012.

Sterlite Industries (India) Limited added 0.5% to Rs 825.10.

Sulzer India Limited decreased 0.08% to Rs 1,187.90 after the textile machinery company soon to be de-listed said full year net profit rose 9.2% to Rs 29.50 crore.

Sun Pharmaceutical Industries Ltd declined 1.7% to Rs 1,656.85 after the Caraco Pharmaceutical Laboratories Ltd a unit of the company said it has launched the generic version of anti-cancer drug oxaliplatin in injection form in the U.S.

Wintac Limited rose 1.2% to Rs 37.00 after the pharmaceuticals said its board will meet on March 18 to consider the equity rights offering.