Industrial Production Surges in India

Mayank Mehta
12 Apr, 2010
New York City

Stocks in Mumbai traded lower after industrial production surged 15.1% in February prompting worries of rate hike. Sun Pharma gets a U.S. approval for a generic drug. Glenmark Pharma settles patent dispute with GlaxoSmithKline.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded lower after industrial production surged 15.1% in February prompting worries of rate hike. Sun Pharma gets a U.S. approval for a generic drug. Glenmark Pharma settles patent dispute with GlaxoSmithKline.[/R]

Industrial production surged 15.1% in February and in the first eleven months the index gained 10.1% compared to a year ago. Manufacturing index advanced 16.0% and electricity output decreased 6.7% in the month.

The Sensex index in India decreased 80.14 or 0.45% to 17,853.00 and CNX Nifty index fell 22.05 or 0.41% to 5,339.70. Among the Sensex 30 stocks, 12rose and 18 fell.

On BSE trading, 1,582 stocks advanced, 1,305 declined and 83 were unchanged. Capital goods makers fell after recent gains. Auto stocks fell after recent strong gains triggered by robust March 2010 sales. Banking stocks fell on fears the central bank may raise interest rates in its policy review on April 20.

The Reserve Bank of India on Monday allowed foreign institutional investors to use government bond holdings as well as foreign sovereign securities with AAA rating as collateral for stock market transactions, doing away with an earlier rule that only allowed cash.

IntraSoft Technologies closed at Rs 157.65, a premium of 8.7% from the initial public offer price of Rs 145.

Rupee edged higher 5 paisa to 44.23 against one dollar.

Gainers & Losers

Artson Engineering Limited added 1.9% to Rs 58.10 after the company secured an overseas order of $5.2 million.

Balaji Telefilms Limited surged 20.0% to Rs 63.30 after RNA builders withdrew a special leave petition in the Supreme Court with regard to a dispute on a land near Mumbai.

D B Corp rose 1.94% to Rs 258 after the company formed a committee of directors to consider demerging the FM radio business and merging Bhaskar Publication & Allied Industries with the company.

Dynamatic Technology Limited rose 4.2% to Rs 1,182.05 after the company received three industrial defense production licenses from the Ministry of Commerce & Industry for the production of heavy vehicles.

Energy Development Company Limited surged 16.7% to Rs 70.25 after the hydro power and wind power generator secured a construction contract of Rs.31 crore.

Glenmark Pharmaceuticals Limited fell 0.3% to Rs 278.00 after the company announced the settlement of litigation pending between company and GlaxoSmithKline over patent actions concerning atovaquone and proguanil hydrochloride 250mg/100mg tablets, the generic version of GSK''s Malarone tablets.

GMR Infrastructure Limited rose 1.3% to Rs 62.50 after the company announced that its board of directors has approved to raise Rs 500 crore at its meeting held on Apr 9.

Goa Carbon Limited rose 0.3% to Rs 114.10 after the company reported fourth quarter net profit of Rs 1.62 crore compared to net loss of Rs 7.05 crore a year ago.

Hindalco Industries Limited climbed 0.5% to Rs 179.80 after the producer of aluminum, swung to profit in 2009.

IVRCL Infrastructures & Projects Limited advanced 1.0% to Rs 179.60 after the company secured three orders aggregating Rs 832.51 crore.

Ontrack Systems Limited surged 19.9% to Rs 14.49 ahead of the board meeting on April 12.

Pratibha Industries Limited rose 0.7% to Rs 397.80 after the company secured an order of Rs 157.59 crore.

Reliance Industries Limited rose 0.2% to Rs 1,126.85 after the energy major said it would pay $1.7 billion to form a joint venture at one of the most promising natural gas deposit regions in the United States with Atlas Energy.

Sun Pharmaceutical Industries Ltd added 1.2% to Rs 1,792.00 after the company announced that the US regulator has granted its subsidiary a tentative approval for its Abbreviated New Drug Application to market a generic version of Forest Laboratories, Inc.’s Namenda 5 mg and 10 mg tablets.

Suven Life Sciences Limited increased 4.9% to Rs 31.80 after the company secured a patent from the Japanese Patent Office for a new chemical entity used to treat disorders associated with neurodegenreative diseases.

Venus Remedies Limited climbed 3.4% to Rs 269.00 after the company got good manufacturing practice certification from the drug regulator in Botswana for four of its facilities in Africa.