11:00AM New York, 8:30PM Mumbai - Sensex in Mumbai surged on short covering ahead of expiry of September 2007 derivatives. Sugar stocks declined.
Sensex in Mumbai closed at record level on short-covering ahead of expiry of September 2007 derivatives contracts. IT stocks also recovered from previous losses.
The 30-Sensex index closed up 1.35% or 229 to close at 17,150.56. The CNX Nifty was up 1.22% or 60.05 to a new high of 5,000.55. Of the BSE stocks, 1,274 shares advanced, 1,457 retreated while 328 remained unchanged.
Among the 30-member Sensex pack, 21 advanced while the rest declined. Reliance Energy led the gainer with a rise of 8% to 1,108 rupees and Ambuja Cements led the decliners with a loss of 2.5% decline to 144 rupees followed by Hindustan Unilever with a loss of 2.3% to 220 rupees.
The Bombay Stock Exchange and the National Stock Exchange Stock have sought explanation from Reliance Natural Resources Ltd, whose share price has nearly doubled over the few days on news reports about its business plans. Stock market authorities in India brought the company under scrutiny last week to review possibilities of insider trading.
Reliance Natural Resources share price hit record peak of 103 rupees Tuesday from 52 rupees in September. The company had earlier indicated that it plans to sell its stake in alternative energy project and build a natural gas distribution network in different metropolitan areas.
Other gainer in the Sensex index included Infosys with a rise of 5.2% to 1,920 rupees and HDFC Bank 4.3% to 1,435 rupees. Reliance Industries slipped 0.17% to 2,317 rupees. Oil & Natural Gas Corporation closed higher at 3.7% to 972 rupees.
East India Hotel gained 2.8% to 119 rupees after the company severed its ties with Hilton hotels. The strategic partnership involved marketing and branding hotels under Trident Hilton name for fifteen years till 2019.
Praj Industries declined 0.5% to 237 rupees after the founders Pramod and Pramila Chaudhari sold 1.4 crore shares at 251 rupees to Tata Sons. The ethanol distillation and refinery developer based in Pune has investment from venture capitalist Vinod Khosla.
Rajesh Exports soared 6% to 982 rupees after the company plan to issue bonus shares and invite additional capital from international investors.
Satyam (
SAY: chart) intends to acquire IT infrastructure management services companies in the U.S. and Europe to serve its banking and telecom clients. Satyam draws most of its revenue from selling business software, consulting and process outsourcing. The company has seen rapid growth in the infrastructure management services sector where it assists companies their networks and databases. Satyam is also planning to consolidate its presence in China, Malaysia and Egypt as it adds its build its staff in these regions.
Bharat Heavy Electricals rose 2.4% to 2,035 rupees after receiving an order of 765 crore rupees from Steel Authority of India for a 62 MW power plant.
Traders also lifted stocks of DLF 1.4% to 749 rupees after it filed for telecom license and United Breweries soared 10% to 883 rupees after its founder acquired 50% stake in Epic Aircraft based in Oregon, U.S.A.
9:00AM New York, 9:00PM Tokyo - Financial stocks lift Japan higher on improved sentiment.
Japan financial stocks rallied boosted by confidence lenders will recover from the global credit crunch. Investor confidence in lenders heightened on expectations the U.S Federal Reserve will cut interest rates further after a drop in U.S. durable goods orders.
In
Tokyo trading Nikkei 225 added 2.41% or 396.48 to 16,832.22, the highest in seven weeks. Banks and realty stocks led the advance. Resona Holdings led the gainers in the sector with a sharp rise of 13.41%. Mitsubishi UFJ Nicos, Shinsei Bank Limited rallied as well. Of the Nikkei index shares 209 gained, 14 declined and 2 were unchanged. Suruga Bank Ltd. Soared 11% after the bank said that it exploring an arrangement for branch network and small business lending. Real estate developers Mitsui Fudosan jumped 7.7% and Sumitomo Realty & Development added 8%.
Bank of Japan board member Miyako Suda said today there’s need to raise the key interest rate to prevent the economy from overheating, adding that the credit market turmoil will have limited impact outside the U.S. She explained that the bank needs to monitor how the turbulence on the stock and money markets will ultimately affect sentiment of both companies and consumers. Suda while addressing a group in the Western Japan said that BoJ must take gradual but proactive action to lower the risk of overheating in the economy.
Bank of Japan last week kept the overnight lending rate on hold at 0.5%, remaining as the lowest in industrialized nations, cautioning that the bank will only raise interest rates when the credit markets stabilize.
The yen also traded firmer against a retreating dollar. The U.S. currency was quoted at 115.61 yen from 115.55.
Of the index shares Resona Holdings led the gainers, climbing 13.41%, followed by a 12.02% rise in Mitsubishi UFJ Nicos, 11.58% in Shinsei Bank Limited, 11.22% in Daiwa Securities Group and 10.55% in Credit Saison. Daikan Industries led the decliners, slipping 1.73%. Nippon Express lost 1.58%. Yokohama Rubber slumped 1.46%, Sumitomo Metal Mining shed 1.08% and Hino Motors retreated 0.99%.
Consumer lender Takefuji said today it will spend 10 billion yen to buy back 2.13% of its total shares. The company has lost 59% of its market value in the past year. Nikkei Newspaper reported that the consumer lender may post a 51 billion yen profit for the year ending March 31st. Another consumer lender Shares of Aiful have lost 53 percent of their value in the past year as the consumer loan industry has been rattled by customer claims for interest refunds following a change in the law stipulating that borrowers can claim refunds for excessive interest rate charges. On the news, three largest lenders, Takefuji, Aiful, and Promise jumped 15%.
Dramexchange, Asia’s biggest spot market for dynamic random access memory chips, said DRAM prices are likely to rise as demand swells up to the end of the year.
