India Stocks Rise, Led by Tata Motors, Mahindra on Auto Sales
July 1 (Bloomberg) -- India's benchmark stock index rose as Tata Motors Ltd. led gains among automakers after data showed continued sales growth.
Tata Motors, India's biggest truckmaker, and Mahindra & Mahindra Ltd., the largest maker of sport-utility vehicles, gained at least 3 percent. Hindalco Industries Ltd., the No. 1 aluminum producer, slid 3.4 percent after profit plunged and it joined at least nine companies in planned share sales this week.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 151.63, or 1.1 percent, to 14,645.47. The gauge yesterday lost 2 percent as GMR Infrastructure Ltd. scrapped a $500 million share sale due to lack of interest.
"Good numbers from automakers acted as a trigger for the market to pull up," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. "The market is seeing consolidation before the budget" announcement on July 6.
The S&P CNX Nifty Index on the National Stock Exchange increased 1.2 percent to 4,340.9. The BSE 200 Index climbed 1.1 percent to 1,787.01.
Tata Motors, the owner of Jaguar and Land Rover, rose 3.1 percent to 299.65 rupees. Mahindra & Mahindra added 3.3 percent to 714.30 rupees after saying auto sales rose 19 percent in June.
June sales rose 24 percent at Hero Honda Motors Ltd., India's biggest maker of two-wheelers, and 23 percent at Maruti Suzuki India Ltd., maker of half the cars sold in the country.
Hindalco slid 3.4 percent to 83.50 rupees after it reported an 80 percent decline in full-year profit because of waning demand, higher raw material costs and derivatives losses. Hindalco plans to raise $500 million selling securities to institutional investors in the next six to eight weeks, Chief Financial Officer S. Talukdar said yesterday.
Yes Bank
Yes Bank fell 3.5 percent to 143.60 rupees after ET Now reported its planned sale of shares to institutional investors.
Fortis Healthcare Ltd., India's second-biggest health-care provider by market value, sank 5 percent to 91.05 rupees after saying yesterday it plans to raise 10 billion rupees ($208 million) through a rights offer of shares by the end of July or early August.
At least 40 companies led by JSW Steel Ltd. said last quarter they plan to raise more than a combined 350 billion rupees after Indian stocks had their biggest quarterly gain in 17 years.
GMR Infrastructure, an Indian builder of ports and roads, declined 1.2 percent to 140.10 rupees after scrapping its share sale yesterday.
Computer Training
"A good amount of flows that could have come to the markets is getting directed into the QIPs," or qualified institutional placements of shares, said Vaibhav Sanghavi, a director at Ambit Capital Ltd. in Mumbai, who manages funds for wealthy individuals. "This is a slight sentiment dampener."
Educomp Solutions Ltd. led gains among computer training companies on speculation the government's budget may include measures to assist the industry.
Educomp, India's biggest computer training company by market value, soared 11 percent to 4,195.45 rupees. NIIT Ltd. advanced 14 percent to 70.45 rupee. Aptech Ltd. climbed 10 percent to 178 rupees.
"There could be participation of the private sector in lots of ventures within education, and that would be a positive," said Nikhil Vora, a Mumbai-based analyst at IDFC- SSKI Securities Pvt.
Everonn Systems India Ltd., a company that provides education and technology infrastructure services to schools and colleges, gained 9.3 percent to 449.50 rupees. Navneet Publications India Ltd., a local school-book publisher, rose 8 percent to 82.75 rupees.
Import Bill
Refiners gained after data showed India's oil import bill fell for the sixth month in May after crude prices declined from a record. Oil import costs in the month dropped 61 percent to $4.13 billion, according to provisional figures released by the Commerce Ministry in an e-mailed statement in New Delhi today.
Indian Oil Corp., the nation's largest refiner, the rose 1.9 percent to 541.80 rupees. Bharat Petroleum Corp., the second-biggest state-owned refiner, gained 5.9 percent to 455.30 rupees. Hindustan Petroleum Corp., the No. 3 refiner, rose 4.1 percent to 311.35 rupees.
To contact the reporters on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
July 1 (Bloomberg) -- India's benchmark stock index rose as Tata Motors Ltd. led gains among automakers after data showed continued sales growth.
Tata Motors, India's biggest truckmaker, and Mahindra & Mahindra Ltd., the largest maker of sport-utility vehicles, gained at least 3 percent. Hindalco Industries Ltd., the No. 1 aluminum producer, slid 3.4 percent after profit plunged and it joined at least nine companies in planned share sales this week.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 151.63, or 1.1 percent, to 14,645.47. The gauge yesterday lost 2 percent as GMR Infrastructure Ltd. scrapped a $500 million share sale due to lack of interest.
"Good numbers from automakers acted as a trigger for the market to pull up," said Alex Mathews, head of research at Geojit BNP Paribas Financial Services Ltd. "The market is seeing consolidation before the budget" announcement on July 6.
The S&P CNX Nifty Index on the National Stock Exchange increased 1.2 percent to 4,340.9. The BSE 200 Index climbed 1.1 percent to 1,787.01.
Tata Motors, the owner of Jaguar and Land Rover, rose 3.1 percent to 299.65 rupees. Mahindra & Mahindra added 3.3 percent to 714.30 rupees after saying auto sales rose 19 percent in June.
June sales rose 24 percent at Hero Honda Motors Ltd., India's biggest maker of two-wheelers, and 23 percent at Maruti Suzuki India Ltd., maker of half the cars sold in the country.
Hindalco slid 3.4 percent to 83.50 rupees after it reported an 80 percent decline in full-year profit because of waning demand, higher raw material costs and derivatives losses. Hindalco plans to raise $500 million selling securities to institutional investors in the next six to eight weeks, Chief Financial Officer S. Talukdar said yesterday.
Yes Bank
Yes Bank fell 3.5 percent to 143.60 rupees after ET Now reported its planned sale of shares to institutional investors.
Fortis Healthcare Ltd., India's second-biggest health-care provider by market value, sank 5 percent to 91.05 rupees after saying yesterday it plans to raise 10 billion rupees ($208 million) through a rights offer of shares by the end of July or early August.
At least 40 companies led by JSW Steel Ltd. said last quarter they plan to raise more than a combined 350 billion rupees after Indian stocks had their biggest quarterly gain in 17 years.
GMR Infrastructure, an Indian builder of ports and roads, declined 1.2 percent to 140.10 rupees after scrapping its share sale yesterday.
Computer Training
"A good amount of flows that could have come to the markets is getting directed into the QIPs," or qualified institutional placements of shares, said Vaibhav Sanghavi, a director at Ambit Capital Ltd. in Mumbai, who manages funds for wealthy individuals. "This is a slight sentiment dampener."
Educomp Solutions Ltd. led gains among computer training companies on speculation the government's budget may include measures to assist the industry.
Educomp, India's biggest computer training company by market value, soared 11 percent to 4,195.45 rupees. NIIT Ltd. advanced 14 percent to 70.45 rupee. Aptech Ltd. climbed 10 percent to 178 rupees.
"There could be participation of the private sector in lots of ventures within education, and that would be a positive," said Nikhil Vora, a Mumbai-based analyst at IDFC- SSKI Securities Pvt.
Everonn Systems India Ltd., a company that provides education and technology infrastructure services to schools and colleges, gained 9.3 percent to 449.50 rupees. Navneet Publications India Ltd., a local school-book publisher, rose 8 percent to 82.75 rupees.
Import Bill
Refiners gained after data showed India's oil import bill fell for the sixth month in May after crude prices declined from a record. Oil import costs in the month dropped 61 percent to $4.13 billion, according to provisional figures released by the Commerce Ministry in an e-mailed statement in New Delhi today.
Indian Oil Corp., the nation's largest refiner, the rose 1.9 percent to 541.80 rupees. Bharat Petroleum Corp., the second-biggest state-owned refiner, gained 5.9 percent to 455.30 rupees. Hindustan Petroleum Corp., the No. 3 refiner, rose 4.1 percent to 311.35 rupees.
To contact the reporters on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
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