Inflation in India Accelerates; Stocks Rise

123jump.com Staff
22 Apr, 2010
New York City

Stocks in Mumbai closed higher despite the latest weekly wholesale inflation index reached near record. Export tax on iron ores may be increased to 20%. ACC Limited quarterly net declined 1.5%.

[R]6:00 PM Mumbai – Stocks in Mumbai closed higher despite the latest weekly wholesale inflation index reached near record. Export tax on iron ores may be increased to 20%. ACC Limited quarterly net declined 1.5%.[/R]

Stocks in Mumbai trading closed higher despite the latest wholesale price index hovered near record levels. The inflation index for the year ending on April 10 showed price increase of 17.65% compared to 17.22% at the end of previous week according to the latest data released by the ministry of commerce.

Investors focused on the weather forecast scheduled to be released on April 23 and market is hoping that normal rainfalls in the upcoming monsoon season will cut down the inflation.

The Meteorological Department is scheduled to release its monsoon forecast on April 23 and the Reserve Bank of India governor Subbaroa said to reporters that inflation is likely to decline to 5.5% by March 2011 on the expectations of normal monsoon season.

Steel Secretary Atul Chaturvedi said to reporters in New Delhi that various ministries are discussing to increase export tax on iron ore to prevent illegal mining. India imposed 5% tax on iron ore exports in December and 10% on lump ore. The tax is expected to increase to 20%.

The Sensex index in India increased 101.43 or 0.58% to 17,573.99 and CNX Nifty index rose 76.40 or 1.46% to 5,321.30. Among the Sensex 30 stocks, 27 rose and 3 fell.

On BSE trading, 1,855 stocks advanced, 989 declined and 100 were unchanged. IT, auto and capital goods stocks rose. Reliance Industries advanced more than 3% on the eve of its fourth quarter March 2010 results on Friday, April 23.

Rupee edged higher 14 paisa to Rs 44.38 against one dollar.

Gainers & Losers

ACC Limited fell 1.3% to Rs 919.10 after the manufacture of cement and ready-mixed concrete said first quarter sales rose 3.5% to Rs 2,240.4 crore from Rs 2,164 crore a year ago. Net profit for the quarter fell 1.5% to Rs 393 crore or Rs 20.88 per share compared to net profit of Rs 399.3 crore or Rs 21.25 per share a year ago.

Amar Remedies Limited gained 1.4% to Rs 65.10 after the company said its board will meet on April 24 to consider raising funds.

Bharat Forge Limited rose 0.05% to Rs 277.00 after the auto components maker said it has launched Rs 720 crore private placement offering on April 21.

Dewan Housing Finance Corporation Limited advanced 3.5% to Rs 227.05 after the board approved raising up to Rs 375 crore through qualified institutional placement.

DLF Limited rose 0.2% to Rs 331.00 after the stock rose over 4% in the preceding two sessions.

EIH Limited climbed 3.5% to Rs 130.55 after the company confirmed plans to open luxury hotels and resorts in New York, Paris and China.

FAG Bearings India Limited decreased 3.0% to Rs 590.90. The manufacturer of ball and roller bearings said fourth quarter sales rose 29% to Rs 236 crore from Rs 183 crore a year ago. Net profit for the quarter rose 62% to Rs 22.5 crore compared to net profit of Rs 13.9 crore a year ago.

Hindustan Zinc Limited fell 0.6% to Rs 1,223.30 and the zinc-lead producer said fourth quarter sales rose 98% to Rs 2,498 crore from Rs 1,263 crore a year ago. Net profit for the quarter rose 125% to Rs 1,239 crore or Rs 29.33 per diluted share compared to net profit of Rs 551 crore or Rs 13.05 per share a year ago.

Honeywell Automation India Ltd plunged 9.5% to Rs 2,902.80 after the automation and control company said fourth quarter sales fell 2% to Rs 278.7 crore from Rs 285.2 crore a year ago. Net profit for the quarter rose 3% to Rs 30.7 crore compared to net profit of Rs 29.8 crore a year ago.

InfoTech Enterprises Limited decreased 0.1% to Rs 396.00 after the board approved a 1-to-1 bonus issue.

State Bank of India gained 5.4% to Rs 2,219.85 after UBS AG upgraded its rating on the stock.

Strides Arcolab Limited rose 2.4% to Rs 362.45 after the company announced that the U.S Food and Drug administration had granted tentative approval of adenosine injection.

Suven Life Sciences Limited gained 4.9% to Rs 32.65 after the company said that the company secured three Australian patents for its three new chemical entities from to treat disorders associated with neuro de-generative diseases. These patents are valid till 2022 and 2025.

Trent Limited added 0.8% to Rs 801.95 after the board scheduled fund raising on Apr 26.

United Spirits Limited fell 2.1% to Rs 1,238.45. The spirit manufacturer said fourth quarter sales rose 38% to Rs 1,252.14 crore from Rs 907.8 crore a year ago. Net profit for the quarter rose 2% to Rs 56.85 crore or Rs 4.53 per share compared to net profit of Rs 55.62 crore or Rs 5.55 per share a year ago.

XL Telecom & Energy Limited surged 9.9% to Rs 37.00 after the company engaged in manufacturing telecom products and solar photo-voltaic cells, said it will raise $100 million.