The key benchmark indices advanced in afternoon trade on fresh buying in index pivotals. Infrastructure and PSU stocks were in demand. Global cues, however, remained mixed. The BSE 30-share Sensex was up 106.23 points or 0.72% to 14,870.78.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1633 shares advanced as compared with 752 that declined. 64 shares remained unchanged.
Among the 30-member Sensex pack, 22 gained while the rest slipped.
Rate sensitive realty stocks rose after successful fund raising by Unitech through a second round of qualified institutional placement. Unitech, India's second largest real estate company by sales, was up 4.37% to Rs 86. As per reports, Unitech has raised $575 million through qualified institutional placement (QIP) with overseas private equity funds at Rs 81 per share.
India's largest real estate developer by sales DLF jumped 4.44% to Rs 340 and was the top gainer from the Sensex pack.
India's largest bike maker by sales Hero Honda Motors slipped 0.41% while India's largest pharma company by sales Ranbaxy Laboratories gained 1.49%. The former has replaced the latter in the BSE 30-share Sensex from today.
India's largest private sector firm by market capitalisation Reliance Industries (RIL) advanced 2.33% to Rs 2075.50 on recent reports the company is evaluating options for future course of action after the Bombay high court on 15 June 2009 asked RIL to supply gas to Anil Ambani Group firm Reliance Natural Resources (RNRL) at prices lower than the government-approved.
India's largest oil exploration firm by net profit ONGC jumped 3.47% on reports it would get the coveted 'Mahanavaratna' status conferring greater operational autonomy. Shares of other companies likely to get 'Mahanavaratna' status such as Indian Oil Corporation (up 2.44%) and Steel Authority of India (up 3.03%), also logged gains.
A total of 5 companies including 2 unlisted firms - BSNL and Coal India may get Mahanavaratna status. According to the criteria set by Department of Public Enterprises (DPE), only five pubic sector enterprises (PSUs) could meet the qualifying norm in turnover, profitability and networth. As per reports Mahanavaratna status would be given to PSUs who had clocked Rs 30,000 crore or more turnover in the past three years and earned more than Rs 5,000 crore profit after tax in three consecutive years.
Also, the Mahanavaratna-eligible PSU should have an average networth of Rs 15,000 crore and global presence, according to the cabinet note circulated by DPE.
BEML jumped 4.61% after net profit surged 45.2% to Rs 172.02 crore 20.4% rise in net sales rose 20.4% to Rs 1,262.51 crore in Q4 March 2009 over Q4 March 2008. The company announced the results after market hours on Friday, 26 June 2009.
Infrastructure stocks rose on hopes the government may announce higher spending for the infrastructure projects in the Union Budget 2009-10. Bharat Heavy Electricals (up 1.51%), Larsen & Toubro (up 0.13%), Lanco Infratech (up 1.66%), Punj Lloyd (up 1.54%), IVRCL Infrastructures & Projects (up 2.48%), Nagarjuna Construction Company (up 5.94%), GMR Infrastructure (up 7.61%), and Jaiprakash Assciates (up 1.58%), gained.
In a move to push financially unviable highway projects worth approximately Rs 22,000 crore, the National Highways Authority of India (NHAI) has proposed a more lucrative hybrid model which will combine both toll as well as annuity payment under build operate transfer (BOT) scheme.
According to the proposed model, a concessionaire will get the viability gap funding (VGF), meaning the gap between the cost of the project and the expected return, up to a maximum of 40% of the project cost from NHAI. However, in case the developer needs more than 40% VGF, it has to make its own investment.
India's largest zinc and copper maker by sales Sterlite Industries gained 4.14% after its American depository receipt (ADR) jumped 5.48% on Friday, 26 June 2009.
India's largest commercial vehicle maker by sales Tata Motors tumbled 4.10% to Rs 326 and was the top loser from the Sensex pack. The company reported a net loss of Rs 2505.25 crore in the year ended March 2009 as compared with net profit of Rs 2167.70 crore in the year ended March 2008. Net sales jumped 98.73% to Rs 70370.40 crore in the year ended March 2009 over the year ended March 2008.