Inflation Worries in India; Infosys Up

Mayank Mehta
13 Apr, 2010
New York City

Stocks in Mumbai traded lower on the worries that rising inflation may prompt government to lift rates. Infosys gained after fourth quarter results and indicate higher sales in the current year.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded lower on the worries that rising inflation may prompt government to lift rates. Infosys gained after fourth quarter results and indicate higher sales in the current year.[/R]

Stocks in Mumbai traded lower after two separate officials indicated higher interest rates to curb near record inflation.

R. Gopalan, a finance ministry official in comments to reporters said that inflation is a concern and further tightening of rates may be needed. Separately, chief economic advisor to the government, Kaushik Basu said that interest rates need to be reviewed to moderate inflation.

The Sensex index in India decreased 31.04 or 0.17% to 17,821.96 and CNX Nifty index fell 16.75 or 0.31% to 5,322.95. Among the Sensex 30 stocks, 10 rose and 20 fell.

On BSE trading, 1,355 stocks advanced, 1,531 declined and 80 were unchanged. Capital goods, auto, banks and resource stocks edged lower.

Reliance Industries drifted lower. Oil exploration stocks fell whereas PSU OMCs rose as crude oil prices declined.

The chief economic adviser to the finance ministry Kaushik Basu said on Tuesday said that the economy is likely to have expanded 8.5% in the March 2010 quarter. Basu, said the estimate was based on his back of the envelope calculation.

Rupee edged lower 15 paisa to 44.61 against one dollar.

Gainers & Losers

Bharat Seats Limited fell 3.5% to Rs 20.35 after the company reported fourth quarter net profit plunged 69% to Rs 0.60 crore.

Dewan Housing Finance Corporation Limited added 3.3% to Rs 222.00 after the chief executive told reporters that the housing finance company plans to raise up to Rs 500 crore for its Tier-1 capital.

Enkei Castalloy Ltd advanced 4.9% to Rs 125.20 after the automotive casting manufacturer will acquire assets and businesses of two companies in Europe to explore business opportunities for allow castings in the region.

Gati Limited rose 2.4% to Rs 63.60 after the logistics reported third quarter net profit of Rs 4.11 crore compared to net loss of Rs 17.06 crore a year ago.

Hero Honda Motors Limited fell 4.8% to Rs 1,985.00 after on turning ex-dividend for a special dividend Rs 80 per share.

Hindustan Construction Company Limited decreased 0.5% to Rs 137.60 after the company receives order for naval dry dock construction of Rs 608.39 crore.

Himalaya International Limited gained 7.7% to Rs 42.50 after the company lined up an investment of Rs 12 crore for setting up a canned soup plant at Vadnagar in Mehsana district, Gujarat.

Infosys Technologies Limited added 2.8% to Rs 2,760.25 after the company reported fourth quarter net profit rose 2.6% to Rs 1,600 crore compared to Rs 1,582 crore a year ago. Sales in the current fiscal year ending in March 2011 may increase as much as 18%, the company estimated.

Mastek Limited slipped 7.2% to Rs 329.15 after the software development reported third quarter sales declined 10.7% to Rs 170.3 crore from Rs 190.9 crore a year ago. Net profit in the quarter dropped 34.8% to Rs 15.3 crore compared Rs 23.5 crore a year ago.

McNally Bharat Engineering Co. Limited rose 0.5% to Rs 333.40 after the company secured an order of Rs 29.08 crore.

RDB Industries Ltd gained more than 4% to Rs 131.7 after it approved a court approval to split its real estate and tobacco business.

Rolta India Limited rose 2.0% to Rs 196.30 after the engineering design firm said it has acquired US-based information technology consulting firm OneGIS for an undisclosed amount.

Sangam (India) Limited rose 1.6% to Rs 35.00 after the manufacturer of spun yarn, cotton yarn and fabrics, will invest Rs 35 crore to double its denim production capacity to 16 million meter.

Shree Ganesh Jewellery House gained 0.9% to Rs 166.25 after the company secured overseas orders aggregating Rs 508 crore from various clients for manufacturing and exporting gold jewelry.

Steel Authority of India Limited dropped 2.7% to Rs 229.55 a 5% discount may be given to retail investors and employees at the time of its next stock offering.

Subhash Projects and Marketing Limited rose 0.6% to Rs 153.50 after the company secured two orders of Rs 63.19 crore from Power Grid Corporation of India for substation packages.

Welspun India Limited dropped 5.2% to Rs 108.20 after the stock surged 25.49% in eight consecutive sessions.