L&T, Grasim move north

STOCK REPORT

The Bombay Stock Exchange Sensex rose to a second straight record. Larsen & Toubro (L&T), the nation's biggest engineering company, gained on reports the company plans to sell its stake in UltraTech Cement Ltd.

"Selling the stake will mean ready funds for Larsen, which has an impressive order book,'' said K K Mittal, who manages the equivalent of $37 million in stocks at Escorts Asset Management in New Delhi.

Grasim Industries gained after cement sales in June, including those at group company UltraTech Cement, climbed 2.2 per cent from a year earlier.

The Bombay Stock Exchange's Sensex added 142.25, or 1 per cent, to 14,806.51. The index yesterday surpassed the record set on February 8. The S&P/CNX Nifty Index on the National Stock Exchange rose 43.80, or 1 per cent, to 4,357.55, a record.

Larsen rose Rs 24.05, or 1.1 per cent, to 2,258.95.

Separately, Larsen announced a special dividend of Rs two a share on Tuesday. Grasim Industries, the nation's second-largest cement maker, rose Rs 84.05, or 3.2 per cent, to Rs 2,702.55. UltraTech Cement added 0.1 rupee, or 0.01 per cent, to Rs 884.25.

Grasim and UltraTech Cement, part of the Aditya Birla Group, together sold 2.53 million metric tonne of cement last month, Aditya Birla Group said in a faxed statement yesterday. Overseas investors bought a net Rs 5,840 crore ($1.4 billion) worth of Indian shares on June 29, according to the latest figures available on the Sebi web site.

Ambuja Cements climbed Rs 1.95, or 1.6 per cent, to Rs 124.4. India's fourth-biggest cement maker that is partly owned by Holcim said sales in June were 1.38 million metric tonnes, unchanged from a year earlier. Production fell to 1.41 million tonnes from 1.42 million tonnes a year earlier, the company said.

Bharti Airtel rose Rs 29.25, or 3.5 per cent, to Rs 866.6. The wireless services company gained after the company's Chief Executive Officer Manoj Kohli said Indian mobile-phone user additions will cross seven million a month.

Himatsingka Seide rose Rs 4, or 3.4 per cent, to Rs 121.95. The Indian textile maker, partly owned by billionaire Azim Premji, said it bought an 80 per cent stake in US bed linen distributor Divatex Home Fashions Inc for $53 million.