5:00 PM Mumbai – The benchmark index, Sensex in India surged to a 30-month high as investors estimate strong revenues at software services companies. GMR Infrastructure agreed to acquire 50% stake in InterGen, a power plant management companies with operations in Europe and Asia. Mumbai industrial plot of 18 acres fetches $170 million.
The benchmark index in Mumbai closed at its highest since February 2008 on the expectations of higher earnings from the software outsourcing companies. The expectations ran high after Cognizant Technology reported higher sales and estimated strong sales in the current quarter.
The 30-share BSE index was up 0.57% or 102.61 to close at 18,217.44 with 20 of its components advancing. It had reached as high as 18,249.46 during the day.
Hindalco first quarter profit increased 11% from a year ago to Rs 534 crore. Revenues increased 34% from a year ago to Rs 5,180 crore in the quarter ended June 30.
Utkal Alumina, a 100% subsidiary of Hindalco will set up an 1.5 million tons per annum alumina refinery in Orissa and will feed alumina requirements for two smelters. The two new projects each with a smelting capacity of 3.6 lakh ton in Mahan, Madhya Pradesh and in Aditya, Orissa are planned.
GMR Infrastructure acquired 50% stake in InterGen NV for $1.1 billion. GMR Infrastructure (Malta) signed the share purchase agreement with AIG Highstar to take the stake in InterGen NV.
InterGen NV operates power plants across the U.K., the Netherlands, Mexico, Australia and the Philippines, with a total net capacity of 12,766 megawatt. The transaction is subject to regulatory approvals in the two countries and is expected to close in the third quarter of the year.
Finance Ministry has proposed a parliamentary approval of Rs 14,000 crore as compensation to state controlled oil marketing companies and Rs 579 crore for subsidies payment to fertilizer companies.
Delta Corp sold its Mumbai property for Rs 250 crore to ICICI Lombard.
National Textiles Corp is auctioning its Bharat Textile Mill land in a three day procedure. The results of the auction with a minimum price of Rs 750 crore, is scheduled to be announced on August 6. Several bidders including the Tata Group, Oberoi constructions Pvt Ltd are in the fray for 8.37 acre plot in central Mumbai.
Cognizant said second quarter revenues increased 15% to $1.1 billion for the second quarter and forecasted third quarter revenue of $1.18 billion.
Chicago-based Boeing Co raised its 20-year forecast for aircraft demand in India by 15% as faster economic growth encourages air travel in the world’s second-most populous nation. India will require 1,150 new commercial planes worth $130 billion over the next 20-years, the company said in a statement in New Delhi on Tuesday.
Kolkata-based Emami Ltd will build its first overseas factories in Bangladesh and Egypt to meet rising demand for soaps, ointments and creams.
“As demand in the eastern African region and Bangladesh is growing, these units will help us in meeting the requirement. We plan to spend 350 million rupees on these projects,” said the company’s Executive Director Mohan Goenka.
Tea production in India’s biggest growing region dropped 16% in June after pest attacks damaged the crop, said the state-run Tea Board.
“Output in the north eastern region, which accounts for more than two-thirds of India’s output, declined to 76.8 million kilograms from 91.9 million kilograms a year ago,” the board said on its Web site on Tuesday.
India plans to award shale gas blocks by August 2011 said M.V. Lall Chief Geologist for the Directorate General of Hydrocarbons while addressing reporters in Mumbai today.
Gainers & Losers
Nava Bharat Ventures Limited fell 1.6% to Rs 395.00 after the diversified company turned ex-dividend August 4, for a dividend of Rs 9 per share for the year ended March.
Unichem Laboratories Limited rose 0.7% to Rs 447.00 after the pharmaceutical company reported plans to invest Rs 100 crore in this fiscal year to increase production.