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Asian rebound lifts Indian benchmark
Indian shares ended 2.3 per cent up at a two-week high on Monday, as stocks around the region gained on global acquisition news, and Reliance Communications Ltd led the way on news it would list its tower unit.
- Reuters
- Published: 23:31 February 4, 2008
Mumbai: Indian shares ended 2.3 per cent up at a two-week high on Monday, as stocks around the region gained on global acquisition news, and Reliance Communications Ltd led the way on news it would list its tower unit.
Reliance Communications, India's second-largest mobile service provider, rose as much as 14.4 per cent to a two-week peak of Rs699.80 after it said it planned to list Reliance Infratel Ltd after an initial public offering.
A newspaper reported it aimed to raise Rs50 billion to Rs60 billion ($1.3 billion to $1.5 billion) in the IPO.
Unlocking value
"The listing of Reliance Communication's tower business would unlock value, the IPO could be priced at a higher price that will create value for the parent company," said Sumit Modi, a sector analyst with Emkay Share and Stock Brokers Ltd.
The benchmark BSE 30-share index gained 417.7 points to 18,660.32, with 26 components winning. In the broader market, 2,271 gainers outnumbered 538 losers, on moderate volume of 318 million shares.
The BSE index, which fell 13 per cent in January, is 12 per cent below a record high of 21,206.77 hit on January 10 after turbulence on stock markets worldwide and India's largest-ever IPO from Reliance Power sucked liquidity out of the market.
Reliance Power, due to list on February 11, received bids worth $190 billion for the $3 billion share sale. It has begun refunding excess application money to investors.
The 50-share NSE index closed up 2.75 per cent at 5,463.50.
Reliance Industries rose two per cent to Rs2,592.60 as investors bet on a higher growth trajectory from its exploration, production and refining businesses.
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