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Sensex set for record; Infosys Technologies gains

Sensex set for record; Infosys Technologies gains
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First Published: Tue, Feb 06 2007. 04 31 PM IST
Updated: Tue, Feb 06 2007. 04 31 PM IST
By Bloomberg
India’s Sensitive Index rose, poised for its third-straight record. Infosys Technologies Ltd., the country’s second-biggest computer services provider, gained on a report it is close to buying a European company.
Reliance Communications Ltd. and Bharti Airtel Ltd. fell after some investors judged their gains excessive with respect to earnings outlooks.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, added 48.13, or 0.3 %to 14,564.03 as of 2:30 p.m. local time. The index is set to surpass its record set yesterday.
The S&P/CNX Nifty Index on the National Stock Exchange (NSE) rose 2.30, or 0.1 % to 4217.65.
Infosys rose Rs22.85 , or 1 %, to 2,283.55. The software developer will pay $100 million for the acquisition and will announce details later this month, the Daily News & Analysis newspaper said, citing people it didn’t identify.
Reliance Communications fell Rs21.7 , or 4.2 %, to 493.4. The stock’s relative strength index, a measure based on advances and declines in the previous 14 days, was more than 70 yesterday. A reading of above 70 indicates to some analysts the stock may fall. The company’s stock gained 7.1 % since Jan. 31 when it reported record profit for the third quarter.
“The stocks had a fantastic run since the companies reported earnings,” said R.K. Gupta, who manages $70 million in equities at Credit Capital Asset Management in New Delhi. “Some investors will take profits.”
Bharti, the country’s largest mobile phone service provider, fell 1.3 rupees, or 0.2 percent, to 779.95. The stock’s relative strength index, a measure based on advances and declines in the previous 14 days, is at more than 70 since 2 Feb. The stock has gained 13 % since it reported record earnings on Jan. 23.
The following shares rose or fell. Stock symbols are in brackets after company names.
Ansal Properties & Infrastructure Ltd. (APIL IN) rose Rs39.95 , or by its 5 % limit, to 839.55, extending yesterday’s 5 % gain. The real-estate developer said its board will meet on 12 February to consider a plan to give free shares to stakeholders.
Separately, the developer said today it will develop a project expected to yield Rs8 billion rupees of revenue in the northern Punjab state.
Bharat Electronics Ltd. (BHE IN) surged Rs115.7, or 8.2 %, to 1,525. Northrop Grumman Corp., the third- largest U.S. defense contractor, and state-owned Bharat Electronics plan to sign a preliminary agreement to explore joint production opportunities in aerospace and defense electronics technology for the Indian and overseas markets.
The agreement will be signed tomorrow, Katie Gray, vice president of F-16 programs at Northrop Grumman’s electronic systems sector, told reporters in Bangalore.
Gammon India Ltd. (GMON IN) fell Rs23.35 , or 5.7 5%, to 388.75. The engineering and construction company has appealed against an order by the stock market regulator banning its unit from selling shares in an initial public offer. The Securities and Exchange Board of India on 2February said the initial share sale of Gammon Infrastructure Projects Ltd. can’t be permitted for one year from 21December, Gammon said in a statement to the BSE today.
Ranbaxy Laboratories Ltd. (RBXY IN) rose Rs5.65 , or 1.4 %, to 420.05. India’s biggest drugmaker signed a new research and development agreement with GlaxoSmithKline Plc, Europe’s largest drugmaker. Under the agreement, Ranbaxy could get more than $100 million in “milestone payments” for a product that it develops and that is sold by Glaxo, Ranbaxy said in an e-mailed statement today.
Reliance Energy Ltd. (RELE IN) climbed Rs13.55 , or 2.5 %, to 562.05. Anil Ambani, Chairman of Reliance Energy, India’s second-biggest utility by sales and associates raised their stake in the company by 4.73 %. Anil, his wife Tina Ambani, two children and associates increased their holding in Reliance Energy to 34.45 % from 29.72 %, the company said in a statement to the BSE.
Videsh Sanchar Nigam Ltd. (VSNL IN) fell Rs13.4 , or 2.7 %, to 492.3. India’s biggest overseas phone company said it received a $406 million claim notice from Reliance Communications Ltd.’s Flag Telecom undersea cable unit.
Videsh Sanchar received the “monetary relief” claim from Flag Telecom Group Ltd. over a dispute on interpretation of the construction and maintenance agreement for Flag Europe-Asia cable system, the company said in a statement to the Bombay Stock Exchange.
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First Published: Tue, Feb 06 2007. 04 31 PM IST
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