The Mint Report 06 June 2012

Construction firm L&T Infrastructure Development Projects has bagged a major contract in Western India. On Wednesday the company won the bids to develop two road projects that will pass through Maharashtra and Gujarat.

The projects will cost some Rs 4,800crore. Special purpose vehicles belonging to L&T IDPL have signed contracts with National Highways Authority of India. The projects will work on the so-called build-operate-transfer model. Investors reacted well to the news, sending shares of Larsen and Toubro soaring 4.77% on the BSE to 1267.25 on a day the Sensex climbed 2.71%.

Moving on, India’s currency is showing greater signs of a recovery. On Wednesday it rose for a third session in a row. The rupee ended trade at 55.36 to the US dollar, a gain of 28 paise. While there’s some improvement in overall sentiment, traders also said dollar-buying by oil firms helped shore up the rupee.

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Larsen and Toubro unit bags large road contract; rupee fights back for a third day in a row; markets surge the most since January.

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And finally, with the rupee gaining, Indian markets also raced into the green. Both indices rocketed up led by rallies in some sectors. The Sensex soared 434 points to 16,454. And the Nifty jumped 134 to 4,997.