In Mumbai trading Sensitive 30 Index increased 0.1% to 15,565.55, record close. The index edged higher on strength in telecom stocks and steady fund flows from international investors.

Economy News

Wholesales Price Index, a measure of annual inflation, for the week ending July 7th, was reported at 4.27%, unchanged from the previous week ending. The food prices fell in the week but failed to impact the overall inflation.

Deal News

Reliance Communication jumped 1.3% after adding more than 2% in the previous session on a deal to sell 5% stake in its telecom tower unit for 27,000 rupees or $338 million to a group of private equity investors. The deal values the infrastructure unit at $6.5 billion. Bharti Airtel jumped 3% on the news hoping for a similar deal for its tower unit. Reliance reached 592 rupees and Bharti at 943 rupees, traded at record intra-day high. Reliance Communication chairman Anil Ambani had earlier said the group of companies controlled by second richest man in India has a capacity to borrow more than $5 billion in the international markets.

Metals and Commodities

Firmness in metals prices lifted stocks of Tata Steel and SAIL. Tata Steel jumped 5% to 715.90 rupees, JSW Steel advanced 2.7% to 722 rupees, Hindustan Zinc added 2.5% to 788 .60 rupees, SAIL increased 0.6% to 156 rupees.

Cements stocks fell after rallying for more than two weeks. ACC fell 3.7%, Ambuja Cement lost 2.3%, and India Cements dropped 1.3%.

Earnings News

Satyam reported earnings of 3.78 billion rupees on 27% rise in sales to 18.3 billion rupees. The stock fell 2% on the news.

Larsen & Toubro jumped 4.2% on net income of 3.77 billion rupees. Company secured projects worth $180 million in the quarter.

Gujarat Ambuja profit surged 168% on 16% increase in revenue to $180 million.


11:30AM New York, 10:00PM India – Korea, India and Hong Kong close at record in Asian trading.

Asian Markets across the region advanced on rising oil and metals prices, higher earnings, and positive sentiment in New York and European trading a day ago. Shanghai led the region with a sharp rise of 4.3% followed by 2.36% rise in South Korea, 1.4% gain in Indonesia, 1.3% rise in Singapore, 1.2% in increase in Taiwan, and 1.2% ahead in Hong Kong, and 0.6% edging up in Australia. Japan increased a fraction 0.23%.

In Korea trading LG Electronics jumped 6% on earnings of 384.6 billion won in the second quarter compared to a loss of 9.7 billion a year ago. The strong earnings prompted rating revision from local brokers. The second largest mobile phone operator earnings lifted Samsung Electronics by 4%. Posco jumped nearly 4% on the statement that it plans to expand its production. Korea Zinc jumped 6% on firm metal prices in overnight trading in Europe. Kospi Index jumped 2.4% or 45.64 at close to record level of 1,983.54.

In Hong Kong trading Han Seng Index gained 1.2% at 23,291.90 to a record close lifted by financials, insurance, and telecom stocks. China Mobile jumped 2.5% after the company reported that it added 5.53 million new subscribers in June, driven by promotions and discounts. Insurance companies China Life increased 2.6% and Ping An gained 2.5%.

In Tokyo trading Nikkei 225 Index added 0.23% to close at 18,157.93. Industrials, technology and steelmakers lifted the sentiment. Ahead of earnings, Nippon Steel and JFE Holdings added 3.9% on hopes of better earnings. JFE has guided earnings for the first half to increase 12% to 150 billion yen on 13% sales increase to 1.68 trillion yen. Matushita Electric jumped 1.5% ahead of earnings next week. KDDI, mobile phone operator, fell after its reduced its subscription price for new subscribers by 50%.


9:00AM New York – Earnings news dominate the New York opening