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Strong economic data and global cues helped the Indian markets to gain momentum
Indian markets gained momentum today on strong response to NTPC’s follow-on public offer (FPO) and robust services sector data for January 2010. The markets also gained on back of positive global cues. At the end of the day, the Sensex surged a massive 333 points from the previous day’s close to 16,496 while the Nifty closed at 4,932, up 102 points.
Yesterday, we said the Indian markets will go up and it did so. Tomorrow, we expect the markets to pause before gaining further ground.
At 11:00 hrs IST, the Sensex was trading up 328 points from the previous day’s close at 16,492.
At the end of the day, Kabra Extrusion Technik zoomed 14% after the company’s board approved a proposal to upgrade and expand its existing manufacturing facilities at Kachigam, Daman, with an outlay of Rs85 crore.
Associated Stone Industries (Kotah) continued surging for the fifth day. The stock gained 14%, after the company’s board fixed 19 February 2010 as the record date for a 2-for-1 stock split.
JSW Steel has reported growth of 66% in crude steel production at 5.33 lakh tonnes for January 2010 over the corresponding year-ago period. The stock was up 8%.
Tata Communications was up 2% on reports that the company and Whygo, a global specialist in public videoconferencing facility scheduling, will team up to provide Telepresence solutions to Whygo customers.
Supreme Infrastructure India has received three projects together worth Rs363.94 crores. The stock was up 2%.
Larsen & Toubro shot up 4% after the company bagged new orders aggregating Rs1,100 crore.
Bharat Electronics was up 3%. The company is reportedly set to get an order worth Rs4,279 crore from the Indian Air Force to supply 750 Akash surface-to-air missiles.
INOX Leisure shot up 12% after the company acquired the entire promoter’s stake in Fame India. At the end of the day, Fame India was up 5%.
During trading hours, the government’s chief statistician Pronab Sen said that the data suggested that industrial recovery in the country was on track, but the government would wait for the March 2010-quarter economic data before taking a call on exiting stimulus measures.
The HSBC Markit Business Activity Index, based on a survey of 400 Indian firms, rose to 58.96 in January 2010, its highest since September 2008, on sharp increase in new work orders after rising to 57.41 in December 2009.
Meanwhile, the FPO of NTPC was subscribed 70% on the first day of bidding. The government had fixed the benchmark price for the proposed divestment of government stake at Rs201 per share.
The government has targeted raising Rs25,000 crore in the fiscal year ending March 2010 by selling stakes in state-run companies. As per reports, Rural Electrification Corporation plans to raise nearly $1 billion through a follow-on offering which will open on 19 February 2010 and close on 23 February 2010.
Mining company NMDC’s IPO is also scheduled to come out in the second week of March 2010 to raise around $3 billion; and Satluj Jal Vidyut Nigam is expected to raise about $260 million toward the end of March 2010.
During the day, Asia’s key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea, Singapore and Taiwan rose by between 0.32%-2.36%.
In the US markets on Tuesday 2 February 2010, the Dow Jones Industrial Average was up 111 points while the S&P 500 and the Nasdaq Composite were up 14 points and 19 points, respectively.