Indian stocks rise to 15-month high, Sterlite, Hero Honda gains
Wednesday, 9 September 2009
MUMBAI, Sept. 8 (Bloomberg): India's benchmark Sensex stock index rose to a 15-month high amid optimism that an economic revival will boost company earnings and as a government official said domestic demand is recovering.
Sterlite Industries (India) Ltd., India's biggest copper producer, gained 3.3 per cent after the metal's price gained. Hero Honda Motors Ltd., the nation's biggest motorcycle maker, added 2 per cent after the chief executive officer of the nation's second biggest bank said housing and auto loans are recovering.
"Things are looking good," said Deven Choksey, CEO of KR Choksey Shares & Securities Pvt. "Companies will declare advance tax numbers next week. There is expectation that companies will pay more taxes, which means their profits may be higher in the September quarter."
The Bombay Stock Exchange's Sensitive Index, or Sensex, advanced 116.16, or 0.7 per cent, to 16,132.48 as of 11:02 a.m. in Mumbai, set for the highest since May 30, 2008.
The S&P CNX Nifty Index on the National Stock Exchange added 0.5 per cent to 4,804.50. The BSE 200 Index increased 0.5 per cent to 1,984.59.
Oil India Ltd., the nation's second-biggest state-run energy explorer, got bids of at least 32 billion rupees ($657 million) in an initial share sale that began yesterday, the Web site of the National Stock Exchange showed.
The utility received bids for 33.6 million shares, or 1.27 times the 26.4 million shares it offered as of 3 p.m. local time yesterday, the exchange's Web site showed. The shares are being offered at 950 rupees to 1,050 rupees apiece.
Foreign investors are returning to India amid signs of a recovery in domestic demand, junior Minister for Finance Namo Narain Meena said in Mumbai today. Overseas funds have bought 393.1 billion rupees of the nation's stocks this year to date, compared with record net sales of 530 billion rupees for the whole of 2008.
Sterlite rose 3.3 per cent to 729.65 rupees. Tata Steel Ltd., the biggest producer of the alloy, advanced 2.3 per cent to 451.9 rupees. Hindalco Industries Ltd., the No. 1 aluminum producer, rose 2.9 per cent to 111.5 rupees.
A gauge of six metals, comprising copper, aluminum, lead, tin, zinc and nickel, climbed 0.7 per cent in London yesterday to the highest level since Aug. 28.
Hero Honda gained 2.1 per cent to 1,666 rupees. Chanda Kochhar, CEO of ICICI Bank Ltd., the country's No. 2 lender, said bank lending rates in India have bottomed out and there is a revival in housing and car loans, ET Now reported.
Gateway Distriparks Ltd., an Indian shipping-logistics provider, climbed to the highest in 20 months in Mumbai trading after a newspaper reported it may sell as stake in a unit.
The shares rose 9.8 per cent to 127.7 rupees. Gateway Distriparks may sell a unit for as much as 3 billion rupees ($61.7 million), Mint newspaper reported today.
Jet Airways (India) Ltd., the nation's largest carrier by market value, fell as much as 13 per cent in Mumbai trading after saying it will cancel 115 flights today because of a pilot's strike. The shares lost 2.5 per cent to 250 rupees.
Sterlite Industries (India) Ltd., India's biggest copper producer, gained 3.3 per cent after the metal's price gained. Hero Honda Motors Ltd., the nation's biggest motorcycle maker, added 2 per cent after the chief executive officer of the nation's second biggest bank said housing and auto loans are recovering.
"Things are looking good," said Deven Choksey, CEO of KR Choksey Shares & Securities Pvt. "Companies will declare advance tax numbers next week. There is expectation that companies will pay more taxes, which means their profits may be higher in the September quarter."
The Bombay Stock Exchange's Sensitive Index, or Sensex, advanced 116.16, or 0.7 per cent, to 16,132.48 as of 11:02 a.m. in Mumbai, set for the highest since May 30, 2008.
The S&P CNX Nifty Index on the National Stock Exchange added 0.5 per cent to 4,804.50. The BSE 200 Index increased 0.5 per cent to 1,984.59.
Oil India Ltd., the nation's second-biggest state-run energy explorer, got bids of at least 32 billion rupees ($657 million) in an initial share sale that began yesterday, the Web site of the National Stock Exchange showed.
The utility received bids for 33.6 million shares, or 1.27 times the 26.4 million shares it offered as of 3 p.m. local time yesterday, the exchange's Web site showed. The shares are being offered at 950 rupees to 1,050 rupees apiece.
Foreign investors are returning to India amid signs of a recovery in domestic demand, junior Minister for Finance Namo Narain Meena said in Mumbai today. Overseas funds have bought 393.1 billion rupees of the nation's stocks this year to date, compared with record net sales of 530 billion rupees for the whole of 2008.
Sterlite rose 3.3 per cent to 729.65 rupees. Tata Steel Ltd., the biggest producer of the alloy, advanced 2.3 per cent to 451.9 rupees. Hindalco Industries Ltd., the No. 1 aluminum producer, rose 2.9 per cent to 111.5 rupees.
A gauge of six metals, comprising copper, aluminum, lead, tin, zinc and nickel, climbed 0.7 per cent in London yesterday to the highest level since Aug. 28.
Hero Honda gained 2.1 per cent to 1,666 rupees. Chanda Kochhar, CEO of ICICI Bank Ltd., the country's No. 2 lender, said bank lending rates in India have bottomed out and there is a revival in housing and car loans, ET Now reported.
Gateway Distriparks Ltd., an Indian shipping-logistics provider, climbed to the highest in 20 months in Mumbai trading after a newspaper reported it may sell as stake in a unit.
The shares rose 9.8 per cent to 127.7 rupees. Gateway Distriparks may sell a unit for as much as 3 billion rupees ($61.7 million), Mint newspaper reported today.
Jet Airways (India) Ltd., the nation's largest carrier by market value, fell as much as 13 per cent in Mumbai trading after saying it will cancel 115 flights today because of a pilot's strike. The shares lost 2.5 per cent to 250 rupees.