10:00AM New York, 7:30PM Mumbai – Foreign investors will have to trim stakes in commodities exchanges. Power and realty sector stocks gained.

Market Sentiment

In Mumbai, the BSE 30-share Sensex increased 0.92% or 134.50 to 14,678.23, and the CNX Nifty gained 1.09% or 47.50 to 4,415.75.

Of the stocks traded on the BSE, 1,666 rose, 969 declined, and 83 were unchanged.

Trading Statistics

Daily turnover on BSE was 4,233 crore rupees compared with 3,972.48 crore rupees yesterday.

Jaiprakash Associates rose 1.27% to 171.40 rupees, HDFC gained 1.24% to 2,311.55 rupees, and Maruti Suzuki India edged up 1.17% to 623.40 rupees.

Foreign Co.’s to Cut Stake in Indian Commodities Exchanges

The Indian commerce ministry said in a statement released today that foreign companies that hold more than the stipulated 5% in commodity stocks will have to cut their holdings by June 30, 2009, while cumulative overseas holdings in a single exchange must be cut to 49% in the same period.

Commodity exchanges have mainly been the prime target of foreign investors seeking to capitalize from the burgeoning business activity.

In March this year India allowed foreign firms to jointly invest up to 49%, of which 26% was through foreign direct investment and 23% in portfolio investment. An individual can however hold a 5% stake in the exchange.

Gainers & Losers

Realty stocks lead the gainers in trading. Unitech increased 2.52% to 169.15 rupees, Indiabulls Real Estate gained 1.53% to 315.85 rupees, and Housing Development & Infrastructure edged 0.67% to 405.25 rupees, and DLF rose 1.9% to 509.90 rupees.

Power sector stocks were second largest gainers. Reliance Infrastructure advanced 1.55% to 1,009.70 rupees, Reliance Power jumped 2.23% to 160.60 rupees, NTPC rallied 1.41% to 183.95 rupees, PowerGrid Corporation of India climbed 1.25% to 93.35 rupees and Tata Power Company rose 0.59% to 1,024.35 rupees.

Grasim Industries gained 3.64% to 2,028.35 rupees, while Bharat Heavy Electricals edged up 3.4% to 1,734.90 rupees.

Larsen & Toubro rose 1.5% to 2,714.65 rupees on news that the company is on the verge of buying equity stake in coal mines in Australia and Indonesia.

Bharti Airtel increased 2.99% to 815.25 rupees and Reliance Industries rallied 1.03% to 2,244.15 rupees.

HDFC Bank also jumped 2.52% to 1,237.90 rupees, and Ranbaxy Laboratories soared2.71% to 505.65 rupees.

Infosys rose 0.3% to 1,698.70 after chief executive S. Gopalakrishnan said that clients are not seeking price discounts.

Asian Markets Review