Friday, September 4, 2009

Steelmakers Increase Production in India

6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai gained despite the weakness in the regional trading. Market indexes closed higher on the monsoon rain pickup, better than expected auto sales and benign wholesale inflation index. Oil India is preparing its public offering. Steelmakers increase steel production and shipment in August.

Worries related to monsoon are receding as rainfall picked up in the last two weeks in August and farmers plant more oil seeds crop in the north and northwest of India. Realty, IT and capital goods space were in the red while metals and auto capped losses.

The Sensex index in India increased 290.79 or 1.8% to 15,689.12 and CNX Nifty index rose 86.85 or 1.8% to 4,680.40. Among the Sensex 30 stocks, 27 rose and 3 fell.

On the BSE trading, 1,573 stocks advanced, 1,180 declined and 100 were unchanged.

Oil India is preparing to launch its offering that is expected to raise as much as 2,700 crore rupees or $570 million.

Commercial banks are likely to separate benchmark prime lending rates for corporate and retail borrowers with higher rate for retail lending according to discussion among Reserve Bank of India, industry association and finance ministry.

Gainers & Losers

Amtek Auto Limited surged 17.4% to Rs 185.70 after the company opened a foreign currency convertible bond issue to raise $175 million.

Ashok Leyland added 2.4% to Rs 39.40 after a day ago the company said August commercial vehicles sales increased 0.1% to 4,233.

Comfort Intech Limited added 3.2% to Rs 106.50 after the business advisory services provider said the company''s board approved splitting each share of face value Rs 10 each into ten shares of face value Rs 1.

Diamond Power Infrastructure Ltd increased 4.9% to Rs 215.65.

FDC Limited increased 3.0% to Rs 48.30 after the pharmaceutical maker said its board will meet on September 9, 2009 to consider buy back of shares.

JSW Steel Limited increased 3.0% to Rs 691.50 after the company said its August crude steel output has risen 53% to 5.21 lakh tons.

Mahindra & Mahindra Limited the sale of automobiles, spare parts increased 6.2% to Rs 864.40.

Ramco Industries Ltd increased 5.0% to Rs 1,256.50 after the business building products maker said the company also approved to increase the authorized share capital of the company from Rs 50 million to Rs 200 million and the issue of bonus shares will be in the ratio of 1:1.

Radico Khaitan Limited surged 10.0% to Rs 115.75 after the liquor company said Nomura Funds Ireland Public bought 15 lakh shares or 1.5% stake in the company at Rs 104 each on the NSE yesterday, September 3, 2009.

Steel Authority of India Limited added 2.2% to Rs 163.70 after the company said plans to raise at least 300 crore rupees via bonds on September 9 and sales in August increased 20% to 1.1 million tons.

Time Technoplast Limited increased 2.9% to Rs 44.95 after the polymer packaging products agreed to acquire a minimum of 70% stake in Kompozit-Praha, Czech Republic, one of the select producers of LPG composite cylinder worldwide.

TVS Motor Company Limited added 1.8% to Rs 51.75 on better than expected sales in August.

Uttam Galva Steels Ltd surged 10.0% to Rs 113.70.

UTV Software Communications Limited added 1.4% to Rs.472.15 said the board approved the issue of non-convertible debentures of 100 crore rupees to Life Insurance Corporation of India.

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