Economic news

India, which is the second largest producer of sugar in the world, is considering doubling the amount of sugar export in 2008 on domestic surplus, adding further pressure on domestic prices. India may export as much as 3 million tons next year.

The rupee was little changed today, already hovering at near nine-year highs, triggering speculation on the market that the Reserve Bank of India may intervene through state-owned banks to stop a drop in exports. The IT sector is the most vulnerable to the rupee’s rise.

Premier Oil, a U.K. explorer, made a discovery of hydrocarbon field in India's northeastern state of Assam. The find is in the Cachar area, 320 kilometers from the state's main city Guwahati, The company did not disclose the size of the discovery or whether it found oil or gas.

Trading highlights

New issue Roman Tarmat was the most active stock on the market with a turnover of Rs 269 crore followed by Vishal Retail and Divi's Labs.

Advancers

Reliance Energy soared 3% to Rs 616. Reportedly Reliance Energy headed a consortium which won the Rs 6,400 crore business district project proposed in Hyderabad by the state-owned Andhra Pradesh Industrial Infrastructure Corporation. Reliance holds 66% in the project and expects to complete the project in five years.

The prospect of the Reserve Bank of India reducing the cash reserve ratio for banks in near future lifted banks. Union Bank of India rallied 12.1% to Rs 145.60, State Bank of India was up 1.5% to Rs 1,573, HDFC Bank gained 1.6% to Rs 1,171, and Bank of India rose 3.6% to Rs 230.

Larsen & Toubro and ONGC rallied around 2% each to Rs 2,416 and Rs 896, respectively. L&T intends list three more companies, operating in infrastructure, information technology, and finance, to reorganize its corporate structure. Other gainers included Bharti Airtel with a rise of 1.7% to Rs 881.

IT stocks surged on a rally in ADR trading in New York, on Friday previous week, and ahead of first quarter results. Infosys advanced 1% to Rs 1,993, Wipro added 1.1% to Rs 524, and TCS increased 1.5% to Rs 1,177. Infosys reports its first-quarter ending in June 2007 results on Wednesday, July 11.

Decliners

Hindustan Unilever led the decliners, plunging over 2.3% to Rs 195 on profit taking. ICICI Bank also dipped over 1.1% to Rs 970. The bank continued to be under heavy selling pressure for the second straight day. The stock lost after it reduced home loans rates under Rs 20 lakh for new customers by 50 basis points.

In Sensex, Mahindra & Mahindra replaced Hero Honda Motors but stock fell 1% to Rs 779. Index heavy Reliance Industries edged down 0.03% to Rs 1,711.


6:30AM European stocks markets gain on miners, Numico, Rolls-Royce.

European markets were higher in mid-day on Monday. The U.K. FTSE 100 index rose 0.4% at 6,719.40, the German DAX Xetra 30 index advanced 0.6% at 8,098.43 and the French CAC-40 index inched up 0.3% at 6,121.22. National benchmarks advanced in all of the 17 western European markets that were open, except Spain.

Advancers

Numico, Dutch baby foods group, soared to a six-year high amid reports that Danone of France was mulling a bid. PepsiCo was another name in the frame. Numico shares were up 11.4% in late morning trade. Univar NV, the largest distributor of chemicals in the U.S., surged 36 % to 53 euros after CVC Capital Partners offered to buy the company.

BHP, the world biggest mining company, climbed 1.1%. ThyssenKrupp AG advanced 1.8%. Deutsche Bank upped its price projection on shares of the largest steelmaker in Germany to 54 euros from 45.