The benchmark Nikkei gained 135.82 points to 9,062.84. It rose 1.2 percent on Wednesday, after falling as low as 8,796.45, its lowest since April 2009. The broader Topix climbed 1 percent to 819.42.
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Frankfurt’s DAX 30 shed 0.20 percent to 6,071.56 points and in Paris the CAC 40 lost 0.37 percent to 3,610.40 points.

Global equities had surged higher on Wednesday, thanks to strong manufacturing data in the United States and China that boosted investor confidence.
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The Dow Jones Industrial Average edged up 4.39 points (0.04 per cent) to 10,273.86 in opening trades, while the broader S&P 500 index gained 1.29 points (0.12 per cent) to 1,081.28 points.

The tech-rich Nasdaq composite index rose 0.81 points (0.04 per cent) to 2,177.25.

Wall Street is carrying a “positive bias over into the open this morning, even as traders prepare for the next wave of US employment data and a look at July factory orders and new home sales,” Joseph Hargett, an analyst at Schaeffer’s Investment Research, wrote in a note.

Labor Department data released before opening trade showed the number of Americans filing new claims for jobless benefits fell faster than expected last week, extending a two-week decline.

Claims for the week to August 28 fell to 472,000 from the previous week’s revised figure of 478,000, beating most economists’ expectations of 475,000 new claims.

But traders remain focused on the highly-anticipated non-farm payrolls employment report set to be released on Friday.

Trade on Wednesday soared after strong manufacturing data in the United States and China eased deep-running concerns over the state of the global economic recovery.

Nasdaq rose by 2.54 per cent, its highest daily hike in eight weeks.

In the United States, data showed the manufacturing sector expanded for the 13th straight month in August, beating most analysts’ expectations.

The strong US figures followed data from China showing that manufacturing in the world’s second biggest economy also strengthened last month, easing fears the economy was heading for a sharp slowdown in the second half of 2010.
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Other bankers shortlisted by the largest domestic producer of the alloy are HSBC, SBI Capital, Enam Securities and Kotak Mahindra Capital, the sources, who could not be named as they were not authorised to speak to the media, said.

Officials at SAIL in New Delhi and the shortlisted banks were not immediately available for comment. The government plans to sell 5 percent in the company, while SAIL will issue new shares equal to 5 percent of its existing share capital. The government owns about 86 percent in the firm, which can produce 15 million tonnes of steel a year. The sale is likely to be launched in January, the sources said.

A 10 percent share sale would fetch about $1.7 billion, according to Reuters calculation based on the current market price. In April, India’s cabinet approved a 20 percent stake sale in the company in two tranches.

Shares in SAIL, with a market value of $16.5 billion, were trading up 1.8 percent at 191.20 rupees at 11:44 a.m. (0614 GMT), while the main Mumbai index was up 0.5 percent. The stock is down about 21 percent in the year to date against a 5 percent rise in the benchmark.

A large number of foreign and domestic banks in India vie for equity underwritings of state-run firms for league table credits, even as the fees on the government deals are usually very low and in some cases lead managers make a loss.

The lowest financial bid for managing the SAIL issue was at about one-hundredth of a rupee, two sources with direct knowledge said. This translates to almost no fees for the banks that will manage the offering. Earlier this year, state miner NMDC Ltd had raised $2.2 billion in a follow-on share sale that made virtually no money for the banks involved, sources with direct knowledge of the deal had said.
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Jaiprakash shares were up 3.1 percent, while the main stock index climbed 0.3 percent.
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The scrip had opened 4.98 percent higher than its previous close, a day after the company said it would raise over Rs 400 crore.

After the stock markets closed Monday, RBNL said its board had approved a proposal to raise over Rs 400 crore by preferential issue of equity shares to the promoter group and other investors.

The new equity capital will substantially enhance RBNL’s net worth and augment its borrowing capabilities, the company said.

The promoters will subscribe about 2.9 crore shares aggregating approximately Rs.250 crore and investors will subscribe about 1.9 crore shares worth Rs.150 crore.

The preferential offer will be made at a price of Rs.85 per share, a premium of over 25 percent to the last 26 weeks average market price.

Post offer, the sharholders funds will increase over 300 percent from Rs.167 crore to Rs.568 crore.

The funds are expected to help RBN in its new ventures in television broadcasting, as well as pump its activities in the radio and advertising.

RBNL recently formed a 50:50 joint venture, BIG CBS Networks Pvt. Ltd, with CBS Studios, a division of international media and entertainment major CBS, to beam channels to India, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka and the Maldives.

The new entity Big CBS will launch three channels– BIG CBS Spark, BIG CBS Love and BIG CBS Prime. The channels are expected to be beamed in the October-December quarter.
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The assigned fundamental grade reflects Spanco’s decade-old presence as a system integrator for the telecom sector supported by recent participation in government projects. The National e-Governance Program (NeGP) and R-APDRP (Restructured Accelerated Power Distribution and Reforms Program) projects contributed 62 per cent to the company’s order book as of March 2010 and enhanced it to Rs 10.75 billion.

The grade also factors in the company’s efforts to grow its business process outsourcing (BPO) operations through diversification into newer geographies and increase the number of domestic clients.

The grade is constrained by Spanco’s high dependence on government projects, which is likely to increase the overall working capital requirements. Though in the past Spanco has successfully executed various government projects, its track record of execution in newer areas such as NeGP and R-APDRP is limited.

Spanco’s ability to procure more orders from the government on a consistent basis would depend on the timely execution of the current projects. Further, we expect pricing pressure on the domestic BPO operations due to margin pressure faced by its key clients, the telecom players.

CRISIL Equities expects Spanco’s revenues to grow to Rs 17.33 billion in FY12 at a two-year CAGR of 13.0 per cent. It expects the company to maintain EBITDA margin of around 14 per cent. Adjusted PAT is expected to increase from Rs 559 million in FY10 to Rs 766 million in FY12 mainly driven by top-line growth. It expects adjusted EPS to increase to Rs 27.3 in FY12 from Rs 19.9 in FY10, while RoE will likely be maintained at around 14 per cent in FY12.
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Suzlon Energy, which was trading in a narrow range during most part of the session, soared 14 per cent in the final hour of the day to hit a high of Rs 53.10 after reports of stake buy by RIL flashed.

The scrip ended the day with a gain of 10.19 per cent at Rs 51.35 on the Bombay Stock Exchange.

According to reports, the country’s most valued corporate entity Reliance Industries is looking to pick up stake in the Tulsi Tanti-led wind energy major.

When contacted a RIL spokesperson, however, denied any such development.

Shares of RIL today closed marginally higher by 0.07 per cent at Rs 937.15 on the BSE. The benchmark Sensex ended flat with a mild gain of 34 points at 18, 238.31.

“Reliance has huge cash in pocket and picking up stake in Suzlon may be a strategy to enter into the power sector,” an analyst said on condition of anonymity.

Earlier this week, RIL acquired a 14.80 per cent stake in hospitality firm EIH, which runs the Oberoi and Trident hotels and resorts.

RIL acquired a 14.12 per cent stake in EIH for Rs 1,021 crore, making the petrochemical giant’s entry into hospitality sector.
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The 30-share BSE index ended up 0.18 percent, or 32.44 points, at 18,238.31, with 18 components advancing. Trading was choppy, with an early rise of 0.8 percent triggering profit-taking and sending the index briefly into negative territory. “I think the market is now in a zone where it is better to be cautious,” said Om Ahuja, head of private wealth management and strategy at Emkay Global.

India’s economy grew at its fastest pace in nearly three years in the June quarter on strong manufacturing growth and better farm output, but there were doubts whether the annual 8.8 percent rate of expansion can be sustained. Foreigners have moved $12.9 billion into Indian equities this year and helped the benchmark index gain 4.4 percent.

The market has outperformed emerging market peers such as Brazil’s Bovespa, Russia’s RTS index and China’s Shanghai Composite Index. Brazil and China’s indexes have shed 2.2 percent and nearly 19 percent respectively in the year to date, while the Russian benchmark has edged up 0.8 percent. In 2009, the BSE index had jumped 81 percent on record foreign portfolio inflows of $17.5 billion.

The relatively small rise this year has been due to inconsistent flows and a belief that many stocks are too pricey. “It is not advisable to deploy fresh money right now. Booking profits is a better idea,” Ahuja said. Leading private-sector lenders ICICI Bank and HDFC Bank climbed 0.8 percent and 1.5 percent respectively. Mortgage lender Housing Development Finance Corp rose 1.5 percent while leading lender State Bank of India dropped 0.7 percent.

Jaiprakash Associates rose 4.3 percent, the biggest one-day gain in more than three months, after its August cement dispatches jumped 51 percent. Tata Motors gained 0.8 percent, while Maruti Suzuki rose 0.2 percent on robust August sales. A normal monsoon season, improving consumer sentiment and an overall recovery in the economy should benefit auto sales, Macquarie analyst Sanjay Doshi said in a note.

“We expect sales numbers to remain healthy at least until the festive season, as inventory levels are below average,” he wrote. Tata Motors, the country’s largest truck maker that also makes cars, including the Nano and Jaguar and Land Rover, plans to invest $641 million every year for the next three years, its chairman said on Wednesday. Top motorcycle maker Hero Honda, however, fell 3.4 percent as its August two-wheeler sales rose by only 2 percent. Energy giant Reliance Industries ended up 0.1 percent at 937.15 rupees after rising as much as 1.2 percent early.
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Data on Tuesday showed India’s economy grew at its fastest pace in nearly three years in the April-June quarter on strong manufacturing growth and better farm output. By 10:43 a.m. (0513 GMT), the 30-share BSE Index was trading up 0.68 percent at 18,092.62 points, with 26 of its components gaining.

“Our market is up tracking world markets and also the robust domestic consumption makes it lucrative,” said Gajendra Nagpal, CEO of Unicon Financial, referring to strong auto sales numbers. “A correction from here is not ruled out as we have outperformed other markets. But, that should be looked as an opportunity to buy.” The benchmark index is up 3.6 percent in 2010, boosted by foreign fund inflows of $12.8 billion in Indian equities.

Top lender State Bank of India firmed 0.6 percent and leading private lenders ICICI Bank and HDFC Bank rose 1.2 percent and 0.8 percent respectively. Mortgage lender Housing Development Finance Corp climbed 0.5 percent. Energy giant Reliance Industries, which has the highest weight on the Sensex, rebounded 1 percent after sliding more than 3 percent in the previous session on EIH stake buy.

Top mobile operator Bharti Airtel rose 2.1 percent ahead of its annual shareholders meet in the day. Top car maker Maruti Suzuki raced 1.4 percent after it said its August vehicle sales rose 24 percent.

Other automobile companies gained on expectations of robust sales numbers for August. Tata Motors and Mahindra and Mahindra were up 0.5 percent and 1.2 percent respectively. Hero Honda bucked the trend and slipped 0.7 percent.

Kingfisher Airlines was up 2.4 percent after the carrier’s board approved raising up to $1 billion through various means including rights issue, preferential issue or global depositary receipts. In the broader market, gainers were nearly four times the losers, while 107 million shares changed hands on the BSE.

The 50-share NSE index was up 0.6 percent at 5,437 points.

Asian stocks rose as investors cheered a manufacturing rebound in China and stronger-than-expected growth in Australia, with the MSCI index of Asia Pacific stocks outside Japan rising 1.5 percent.

Metal producers such as Tata Steel, Hindalco and Sterlite Industries rose between 1.2 percent and 2.4 percent as base metal prices rallied in Shanghai.

Sun Pharmaceutical slipped 0.7 percent to 1,748 rupees after the drugmaker late Tuesday said US FDA has warned its US unit about manufacturing problems uncovered at a plant in New Jersey.

TVS Motor was up 2.2 percent at 145.15 rupees, as the vehicle maker said its August sakes were up 34 percent on year.
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