[R]6:00PM Mumbai, 8:30 AM New York – Infrastructure, construction and petroleum stocks closed higher as investors hope faster economic reforms. Talks of partial deregulation of petrol and diesel prices gained momentum.[/R]

Stocks edged higher at close on the expectations that infrastructure development and economic reforms will gain quick momentum in the early days of new administration.

The DMK, a regional party from the South decided to not participate in the UPA government but continue to support the alliance.

The Sensex index in India increased 150.61 or 1.10% closed to 13,887.15 and CNX Nifty increased 0.5% or 22.25 to 4,233.15.

The roller coaster ride in the day dragged the index in the negative territory in the afternoon with a loss of 1%.

Daily trading turnover for cash settlement on the BSE declined 13% to 7,086 crore rupees and on the NSE dropped 20% to 20,333.46 crore rupees.

Of the shares traded on the BSE, 2,136 increased, 593 declined and 49 were unchanged.

Rupee strengthened to 47.10 against a dollar from 47.38.

Gainers & Losers

Talks of partial decontrol of petrol and diesel prices to retail consumers are gaining more support as the reform minded Congress led UPA forms its government. The Petroleum ministry is working on a draft proposal to let oil marketing companies HPCL, BPLC and IOC to determine retail price at the pump as long as the international price remains below $75 a barrel. At a price above that, the government will intervene and dictate the final retail price.

Reliance Industries increased 3.2% and ONGC declined 2.8% after surging more than 8% yesterday.

Capital goods and construction companies remain in favor today again as they have been for the entire week. L&T increased 4.7% to 1,301.40 rupees and Bhel increased 0.9% to 1,981.95 rupees.

ICICI Bank increased 4.5% to 702.80 rupees and State Bank of India added 1% to 1,731.70 rupees. HDFC Bank increased 0.1% to 1,369.05 rupees and HDFC increased 1%.

ITC gained 0.6% after it reported net profit increase of 10% on 2.9% decline in net revenues.

NTPC increased 1.9% after net income increased 57% to 2,113 crore rupees on net revenues increase of 8.6%.

Software exporters were weak. TCS declined 2.3% and Wipro edged lower 1.8% but Infosys increased 1.1% on rumors that the company is looking to make an acquisition in healthcare segment.

Earnings Review

IRB Infrastructure Developers Ltd, engaged in development of various infrastructure projects said fourth quarter total income was Rs.276.775 million. Net profit for the quarter rose 10.4% to Rs.422.30 million or Rs.1.31 per diluted share compared to income of Rs.382.30 million or Rs.1.15 per share a year ago.

Total income for the fiscal year 2008 rose 30% to Rs.10214.78 million from Rs.7847.34 million a year ago. Net profit for the year rose 54% to Rs.1758.5 million or Rs.5.29 per diluted share compared to net profit of Rs.1139.27 million or Rs.4.18 per share a year ago.

IRB Infrastructure Developers Ltd, in the last one year traded as high as Rs.211.50 in May 2008 and as low as Rs.65.00 in November 2008. Based on the yesterday’s closing price of Rs.136.00 the company has market cap of Rs.45.58 billion.