BSE launches IPO index
Tuesday, 25 August 2009
MUMBAI, Aug 24 (Reuters): Bombay Stock Exchange, Asia's oldest bourse, Monday launched an initial public offering (IPO) index to track the value of stocks for two years after listing.
The BSE said its IPO index will track companies which have a free-float market capitalisation of at least 1 billion rupees rupees ($21 million) on listing day.
The index started on Monday has 48 stocks. It will have at least 10 stocks at any point of time, with the maximum weighting for a stock capped at 20 per cent, it said.
The base date of the index is May 3, 2004 and the base value was set at 1000 points, the BSE said.
The launch of the index comes as new share offerings are making a comeback in India after a gap of 18 months, helped by a stock market rally. The benchmark 30 share index has gained nearly 60 per cent so far this year.
Power utilities Adani Power and NHPC Ltd have raised a combined $1.9 billion since late July in IPOs and Oil India is expected to launch a new share offering in September.
The BSE, founded in 1875, is launching new products to regain market share from the National Stock Exchange, which handles almost twice the volume and is the world's largest single stock futures market.
Meanwhile: India's benchmark stock index rose for a third day, led by Tata Steel Ltd. and Sterlite Industries (India) Ltd., as a rally in metals prices raised optimism commodities producers will benefit from an economic recovery.
Tata Steel, the largest producer of the alloy, rose to a one-week high, while Sterlite, the nation's biggest copper producer, advanced the most in more than a week. Reliance Industries Ltd., India's most valuable company, climbed the most in three weeks.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 354.07, or 2.3 per cent, to 15,594.90 at 12:03 p.m. in Mumbai. The S&P CNX Nifty Index on the National Stock Exchange gained 2.3 per cent to 4,632.10. The BSE 200 Index advanced 2.2 per cent to 1,906.73.
"The worst is behind us," said Jagannadham Thunuguntla, the head of equities at SMC Capitals Ltd. in New Delhi. "India's economy was never in a recession, it was just a slowdown. Now that the world economy is on a recovery path, global investors will find India attractive."
Copper rallied in London and Shanghai after gains in equities added to evidence that the global economy is recovering, improving the demand outlook for industrial metals. Stocks also rose after US Federal Reserve Chairman Ben S. Bernanke said the global economy is "beginning to emerge" from recession.
Sterlite increased 3.9 per cent to 653.50 rupees. Tata Steel rose 2.9 per cent to 457.75 rupees. Hindalco Industries Ltd., the biggest aluminum producer, jumped 5.3 per cent to 109.55 rupees. Reliance Industries rose 2.1 per cent to 1,970 rupees.
"Strong metal prices are supporting the market," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. in the South Indian city of Kochi. "The comments by the US Fed shows the global economy is recovering."
The Sensex's advance also mirrors the 2.3 per cent rise in the MSCI Asia Pacific Index.
Copper for December delivery on the Shanghai Futures Exchange gained by the daily 5 per cent limit to 49,240 yuan a ton today. Aluminum for December delivery gained as much as 3.6 per cent to 15,315 yuan a ton and December zinc advanced by the 5 per cent limit to 15,630 yuan a ton.
Tata Consultancy Services Ltd., the biggest software services provider, rose 1.9 per cent to 519.05 rupees on expectations that a recovery in the US economy will boost the earnings of software exporters, which get more than half of their sales from the US
Infosys Technologies Ltd., the second-largest software developer, gained 2 per cent to 2,072.9 rupees. Wipro Ltd., the third-biggest software services provider, advanced 2 per cent to 523.2 rupees.
Overseas funds sold a net 3.01 billion rupees ($62 million) of Indian stocks on Aug. 20, the Securities & Exchange Board of India said on its Web site. The funds have bought 354.6 billion rupees of Indian stocks this year to date, compared with record net sales of 530 billion rupees for the whole of 2008.
The following are among the most active on the exchange:
Fortis Healthcare Ltd (FORH IN) jumped 9.3 per cent to 119.2 rupees. The hospital chain plans to buy 10 hospitals, with a total of 1,902 beds, from Wockhardt Hospitals Ltd, according to a statement to the Bombay Stock Exchange. Wockhardt Ltd., partly owned by the founders of Wockhardt Hospitals, soared 11 per cent to 179.6 rupees.
Lanco Infratech Ltd. (LANCI IN) rose 2.6 per cent to 422.1 rupees. The Indian company is in talks with Indonesia's PT Truba Alam Manunggal Engineering to buy its thermal coal mine in south Sumatra for $80 million to 90 million, the Economic Times said, citing a person with direct knowledge of the development that it didn't identify. A Lanco spokesman declined to comment on the development, the report said.
The BSE said its IPO index will track companies which have a free-float market capitalisation of at least 1 billion rupees rupees ($21 million) on listing day.
The index started on Monday has 48 stocks. It will have at least 10 stocks at any point of time, with the maximum weighting for a stock capped at 20 per cent, it said.
The base date of the index is May 3, 2004 and the base value was set at 1000 points, the BSE said.
The launch of the index comes as new share offerings are making a comeback in India after a gap of 18 months, helped by a stock market rally. The benchmark 30 share index has gained nearly 60 per cent so far this year.
Power utilities Adani Power and NHPC Ltd have raised a combined $1.9 billion since late July in IPOs and Oil India is expected to launch a new share offering in September.
The BSE, founded in 1875, is launching new products to regain market share from the National Stock Exchange, which handles almost twice the volume and is the world's largest single stock futures market.
Meanwhile: India's benchmark stock index rose for a third day, led by Tata Steel Ltd. and Sterlite Industries (India) Ltd., as a rally in metals prices raised optimism commodities producers will benefit from an economic recovery.
Tata Steel, the largest producer of the alloy, rose to a one-week high, while Sterlite, the nation's biggest copper producer, advanced the most in more than a week. Reliance Industries Ltd., India's most valuable company, climbed the most in three weeks.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 354.07, or 2.3 per cent, to 15,594.90 at 12:03 p.m. in Mumbai. The S&P CNX Nifty Index on the National Stock Exchange gained 2.3 per cent to 4,632.10. The BSE 200 Index advanced 2.2 per cent to 1,906.73.
"The worst is behind us," said Jagannadham Thunuguntla, the head of equities at SMC Capitals Ltd. in New Delhi. "India's economy was never in a recession, it was just a slowdown. Now that the world economy is on a recovery path, global investors will find India attractive."
Copper rallied in London and Shanghai after gains in equities added to evidence that the global economy is recovering, improving the demand outlook for industrial metals. Stocks also rose after US Federal Reserve Chairman Ben S. Bernanke said the global economy is "beginning to emerge" from recession.
Sterlite increased 3.9 per cent to 653.50 rupees. Tata Steel rose 2.9 per cent to 457.75 rupees. Hindalco Industries Ltd., the biggest aluminum producer, jumped 5.3 per cent to 109.55 rupees. Reliance Industries rose 2.1 per cent to 1,970 rupees.
"Strong metal prices are supporting the market," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. in the South Indian city of Kochi. "The comments by the US Fed shows the global economy is recovering."
The Sensex's advance also mirrors the 2.3 per cent rise in the MSCI Asia Pacific Index.
Copper for December delivery on the Shanghai Futures Exchange gained by the daily 5 per cent limit to 49,240 yuan a ton today. Aluminum for December delivery gained as much as 3.6 per cent to 15,315 yuan a ton and December zinc advanced by the 5 per cent limit to 15,630 yuan a ton.
Tata Consultancy Services Ltd., the biggest software services provider, rose 1.9 per cent to 519.05 rupees on expectations that a recovery in the US economy will boost the earnings of software exporters, which get more than half of their sales from the US
Infosys Technologies Ltd., the second-largest software developer, gained 2 per cent to 2,072.9 rupees. Wipro Ltd., the third-biggest software services provider, advanced 2 per cent to 523.2 rupees.
Overseas funds sold a net 3.01 billion rupees ($62 million) of Indian stocks on Aug. 20, the Securities & Exchange Board of India said on its Web site. The funds have bought 354.6 billion rupees of Indian stocks this year to date, compared with record net sales of 530 billion rupees for the whole of 2008.
The following are among the most active on the exchange:
Fortis Healthcare Ltd (FORH IN) jumped 9.3 per cent to 119.2 rupees. The hospital chain plans to buy 10 hospitals, with a total of 1,902 beds, from Wockhardt Hospitals Ltd, according to a statement to the Bombay Stock Exchange. Wockhardt Ltd., partly owned by the founders of Wockhardt Hospitals, soared 11 per cent to 179.6 rupees.
Lanco Infratech Ltd. (LANCI IN) rose 2.6 per cent to 422.1 rupees. The Indian company is in talks with Indonesia's PT Truba Alam Manunggal Engineering to buy its thermal coal mine in south Sumatra for $80 million to 90 million, the Economic Times said, citing a person with direct knowledge of the development that it didn't identify. A Lanco spokesman declined to comment on the development, the report said.