Mumbai: The stock markets on 7 February 2007 greeted the strong economic growth projections announced by the government, as the BSE Sensex hit a new high of 14,663.26 points on the back of buying by funds and retail investors.
The government has sharply revised its full-year growth forecast upwards to 9.2 % from an earlier estimate of above 8% as manufacturing growth climbed to an all-time high to meet surging consumer demand.
The 30-share benchmark index, Sensex, which had lost over 37 points on 6 January 2007 staged a strong comeback to touch record intra-session high of 14,663.26 points before settling at new high of 14,643.13, scoring a rise of 164.94 points, or 1.14 per cent.
Similarly, the Nifty index on the broad-based National Stock Exchange surged to new high of 4,232.30 points and settled 28.35 points, or 0.68 per cent higher at 4,224.25.
The 30-share Mumbai stock exchange index ,Sensex, rose 143.59 points or nearly 1% to 14,621.78. The Sensex’s previous intraday record was 14,564.8 set on Tuesday.
“The markets saw a fresh buying spurt following the economic growth data. We expect some amount of profit-(taking) at higher levels,” said Hiten Mehta, a fund manager with Fortune Financial Services.
“The confidence in growth is positive,” said Sanjay Dongre, who manages about $1 billion in stocks at UTI Asset Management Co. in Mumbai. “Though valuations appear on the higher side, its being balanced out by high growth.”
ICICI Bank Ltd., the nation’s biggest lender by market value, gained after raising its benchmark lending rate following the country’s central bank move to increase its key rate.
The following shares rose or fell. Stock symbols are in brackets after company names.
Akruti Nirman Ltd climbed Rs62 , or 11% to 602 on its trading debut. The Indian real-estate developer sold 6.7 million shares at Rs540 apiece, attracting demand for 81 times the stock on offer in its initial share sale. The company will use the Rs3.6 billion ($81.6 million) raised to buy land and complete projects.
Cambridge Technology Enterprises Ltd. (surged Rs45.6 or 120 %, to 83.6 on its first day of trading.
Lupin Ltd. (LPC IN) gained Rs15, or 2.4 %, to 631.25. The Indian drugmaker received approval from the U.S. Food & Drug Administration to sell a version of Pfizer Inc.’s antidepressant medicine Zoloft. The FDA gave its approval to sell sertraline hydrochloride tablets of 25-milligram, 50- milligram and 100-milligram dosages in the U.S., the Mumbai- based company said in a statement.
Punjab Tractors Ltd. (PJT IN) rose Rs33.15, or 12 %, to Rs316.65. The Burman family, which owns 15 % of the local tractor maker, may sell its stake, a business paper reported.
The family may sell its stake to the same company that is buying Actis Capital LLP’s stake, the newspaper reported.
Separately, Mahindra & Mahindra Ltd. has bid to buy a stake in Punjab Tractors, CNBC TV-18 reported, without citing a source for the information.