Inflation Worries in India; IOC Stake Sale Talks

Chandrasekhar Atreya
27 Apr, 2010
New York City

Inflation worries took the air from the market rally. Comments from RBI Governor Rao reignited fears that interest rates will rise faster than expected. Punjab and Sind Bank plans to list the bank in a public offering. India may sell a stake in Indian Oil Corporation.

[R]6:00 PM Mumbai, 8:30 AM New York – Inflation worries took the air from the market rally. Comments from RBI Governor Rao reignited fears that interest rates will rise faster than expected. Punjab and Sind Bank plans to list the bank in a public offering. India may sell a stake in Indian Oil Corporation.[/R]

The five day rally in the Sensex halted today after the RBI governor said high inflation is a “big worry.”

Dr. Reddy’s Lab has launched generic drug for the treatment of hypertension after it received the U.S. regulatory approval on April 15 according to the company.

Punjab and Sind bank announced on Monday its plan to make an initial public offering as early as June and plans to raise around Rs 500 crore.

India may sell a portion of its stake in Indian Oil Corporation by March 2011, as part of its plan to reduce budget deficit, said Sidhartha Pradhan, Joint Secretary in the Department of Disinvestment in Mumbai today. The sale will aim raise record Rs 45,000 crore rupees.

The Sensex decreased 54.66 or 0.31% to 17,690.62 and CNX Nifty index fell 11.95 or 0.22% to 5,310.50. Among the Sensex 30 stocks, 12 rose and 18 fell.

On BSE trading, 1,327 stocks advanced, 1,527 declined and 84 were unchanged. Banking, metal and realty stocks fell. Reliance Industries extended Monday''s losses triggered by disappointment from fourth quarter March 2010 results.

Rupee edged lower 5 paisa to Rs 44.44 against one dollar.

Gainers & Losers

Aventis Pharma Limited fell 1.0% to Rs 1,820.80 after the pharmaceutical company said first quarter sales rose 10% to Rs 251.4 crore from Rs 228.9 crore a year ago. Net profit for the quarter fell 11% to Rs 36.1 crore compared to net profit of Rs 40.5 crore a year ago.

Dena Bank dropped 0.4% to Rs 83.70 after the bank said fourth quarter net interest income rose 36% to Rs 326.1 crore from Rs 239 crore a year ago. Net profit for the quarter rose 23% to Rs 137.1 crore compared to net profit of Rs 111.2 crore a year ago.

Gillette India Limited rose 3.8% to Rs 1,550.10 after the third quarter sales rose 29% to Rs 221.8 crore from Rs 171.8 crore a year ago. Net profit for the quarter rose 50% to Rs 42.7 crore compared to net profit of Rs 28.5 crore a year ago.

Greaves Cotton Limited increased 2.8% to Rs 352.05. The engineering company fourth quarter sales rose 49% to Rs 358 crore from Rs 240 crore a year ago. Net profit for the quarter rose 133% to Rs 33.6 crore compared to net profit of Rs 14.4 crore a year ago.

Gujarat Ambuja Exports Limited fell 7.9% to Rs 22.15. The agro-processing company said fourth quarter sales rose 16% to Rs 362 crore from Rs 311 crore a year ago. Net profit for the quarter was Rs 20.3 crore compared to net loss of Rs 5 crore a year ago.

ICICI Bank Limited fell 0.8% to Rs 952.25 tracking the declines in the American Depository Receipt trading in New York.

Infrastructure Development Finance Company Limited rose 0.1% to Rs 169.55 after the provider of finance and advisory services for infrastructure projects said fourth quarter sales rose 7% to Rs 931 crore from Rs 870 crore a year ago. Net profit for the quarter rose 97% to Rs 228 crore compared to net profit of Rs 116 crore a year ago.

Jaihind Projects Limited fell 0.2% to Rs 268.50. The company has received two orders worth Rs 83.84 crore.

Jaiprakash Associates Limited fell 2.6% to Rs 154.75 after the Reliance Money recommended traders to buy this share with stop loss at Rs 148.

Maruti Suzuki India Limited slipped 3.1% to Rs 1,293.00.

Mahindra & Mahindra Financial Services Limited added 1.2% to Rs 444.00 after the company expressed interest in buying South Korea''s cash-strapped sports utility vehicle maker Sangyong Motor Company.

ONGC rose 1.3% to Rs 1,029.50 after the government plans to more than double the price of gas produced by the company to help the state-run firm break.

Power Finance Corporation Limited fell 1.6% to Rs 276.15 after the financial institution said fourth quarter sales rose 14.5% to Rs 2,080 crore from Rs 1,817 crore a year ago. Net profit for the quarter fell 40.4% to Rs 599 crore compared to net profit of Rs 1,005 crore a year ago.

Shree Renuka Sugars Limited dropped 1.6% to Rs 62.90 after the sugar company said second quarter sales rose 315% to Rs 1,781.4 crore from Rs 429 crore a year ago. Net profit for the quarter rose 575% to Rs 224 crore compared to net profit of Rs 33.2 crore a year ago.

Welspun Gujarat Stahl Rohren Limited rose 0.2% to Rs 274.45 after the pipe manufacturer said full year sales rose 28% to Rs 7,350.3 crore from Rs 5,739.5 crore a year ago. Net profit for the quarter rose 186% to Rs 610.4 crore compared to net profit of Rs 213.5 crore a year ago.

Yes Bank Limited slipped 2.1% to Rs 275.50. The bank said fourth quarter sales rose 18% to Rs 664.6 crore from Rs 560.9 crore a year ago. Net profit for the quarter rose 75% to Rs 140 crore compared to net profit of Rs 80 crore a year ago.