Sensex rises, paced by Reliance, BHEL and Tata Motors

Sensex rises, paced by Reliance, BHEL and Tata Motors
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First Published: Mon, Mar 12 2007. 01 56 PM IST
Updated: Mon, Mar 12 2007. 01 56 PM IST
By Pooja Thakur, Bloomberg
Mumbai: India’s Sensitive Index, (Sensex) rose. Reliance Industries Ltd., the country’s most valuable company, climbed after its board approved a plan to buy all the shares it doesn’t own in Indian Petrochemicals Corp.
“We believe Indian Petrochemical’s business is a perfect fit into Reliance’s petrochemicals business,” Mumbai-based analyst Pankaj Choksy at Deutsche Bank AG said in a note to clients today. Choksy raised his earnings forecast and price target for Reliance.
Bharat Heavy Electricals Ltd., the country’s biggest electrical equipment maker, climbed after the company said its board will amend its laws to give free shares to shareholders, making them more affordable to investors.
Sensex, added 89.10, or 0.7 %, to 12,974.09 as of 10:56 a.m. local time. The S&P/CNX Nifty Index on the National Stock Exchange climbed 28.80, or 0.8 %, to 3,746.80.
Bharat Heavy rose by Rs67.55, or 3.2 %, 2,163. The company’s board said it will seek shareholder permission on 30 April to approve the increase in the company’s share capital and the free-share plan. The equipment maker on 25 January said, it will give one free share for each held making the shares affordable to investors.
Reliance added Rs13, or 1 %, to 1,331.5. The board on 10 March said shareholders of Indian Petrochemicals will get one share in Reliance Industries for every five shares held.
Deutsche raised its earnings forecast for Reliance by 5 % to Rs85.03 a share. It raised the price target on the stock by 3 % to Rs1,585 a share.
Separately, Reliance plans to sell a 10 % stake to financial and strategic investors. Reliance official spokesman Tushar Pania declined to comment. Reliance’s associate companies may sell shares held by them in the parent company to investors from India or abroad “at an appropriate time in the future”, Reliance said in its statement.
Overseas investors bought a net Rs1.16 billion ($26.1 million) worth of Indian shares on 8 March, according to the latest information by the Securities & Exchange Board of India (SEBI).
The following shares rose or fell. Stock symbols are in brackets after company names.
Eicher Motors Ltd. (EIM IN) jumped Rs25.3, or 8.1 %, to 337. The nation’s third-biggest maker of trucks and buses will pay a mid-year dividend of Rs29. The payout includes a one-time dividend of Rs25 a share, the company said in an e-mailed statement. The dividend will be distributed to shareholders on 20 March.
ITC Ltd. (ITC IN) fell by Rs1.45, or 0.9 %, to 152.9. India’s biggest cigarette maker declined after its stock rating was cut to ‘equal- weight’ from ‘overweight’ by Morgan Stanley.
Indian Oil Corp. (IOCL IN) climbed by Rs7.35, or 1.8 %, to 406.55. The country’s biggest refiner may acquire French company Etablissements Maurel & Prom SA’s stake in oilfields in Congo for $1.5 billion.
Tata Motors Ltd. (TTMT IN) rose by Rs11.1, or 1.5 %, to 766.9. India’s biggest truck and bus maker signed a 90-year land-lease agreement with the government of India’s eastern West Bengal state for a factory to build its planned small car, the Hindu Business Line said, citing the state’s industry secretary Sabyasachi Sen. The state allowed 645 acres of land at Singur for the car plant and an additional 290 acres for an autoparts plant. The report didn’t give the amount Tata Motors will pay for the lease.
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First Published: Mon, Mar 12 2007. 01 56 PM IST
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