Sensex in India Falls; Rupee Strong

Mayank Mehta, Chandrasekhar Atreya and Darlington Musarurwa
03 May, 2010
New York City

Stocks in Mumbai trade lower and India

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai trade lower and India’s economy is expected to grow at 8.5% in the current fiscal year according to Finance Minister Mukherjee. Tata Motors closed at 52-week high on strong April auto sales. Stock-split plan generates interest in Kotak Mahindra Bank.[/R]

The benchmark index in Mumbai traded lower after inflation worries and mixed earnings and manufacturing index expanded in April, prompting worries of rate hike at the next RBI meeting.

The major concern for India is the unabated inflation and not the longest winning streak of the Rupee, said Finance Secretary Ashok Chawla in an interview in Tashkent yesterday at the Asian Development Bank’s annual meeting.

Chawla estimated inflation by the year-end will be between 5% and 5.5%. The benchmark wholesale price inflation touched 9.9% in March prompting the RBI to raise interest rates a second time in April.

The purchasing manufacturer’s index was 57.2 in April according to HSBC Holdings and Market Economics, as manufacturing expands.

India’s economy is likely to grow at 8.5% this fiscal year starting April as compared to 7.2% in the previous year said Finance Minister Pranab Mukherjee on April 28.

India may export sugar next year as production may exceed demand of about 23 million tons said Farm Minister Sharad Pawar in an interview today. India became a net importer of sugar in 2008.

The Sensex index in India decreased 172.63 or 0.98% to 17,386.08 and CNX Nifty index fell 54.20 or 1.03% to 5,223.80. Among the Sensex 30 stocks, 8 rose and 22 fell.

On BSE trading, 1,144 stocks advanced, 1,675 declined and 87 were unchanged.

Metal stocks declined as copper prices fell on concern monetary tightening in China will crimp demand. Capital goods stocks closed lower. HDFC declined on profit taking after fourth quarter results.

Sugar refiners declined after sugar prices saw a steady decline after the government slapped various restrictions, including introduction of fortnightly non-levy sugar sale.

Rupee edged lower 16 paisa to Rs 44.52 against one dollar.

Gainers & Losers

Adani Power Limited added 0.3% to Rs 125.55 after the power project developer said fourth quarter total revenues fell 13% to Rs 201.3 crore from Rs 233.6 crore a year ago. Net profit for the quarter rose 34% to Rs 97.5 crore compared to net profit of Rs 72.5 crore a year ago.

Amtek Auto Limited fell 0.6% to Rs 184.75 after the manufacturer of automotive components and assemblies said fourth quarter sales rose 40% to Rs 340 crore from Rs 243 crore a year ago. Net profit for the quarter rose 88% to Rs 42.4 crore compared to net profit of Rs 22.5 crore a year ago.

Bajaj Auto Limited rose 0.7% to Rs 2,110.00 after total vehicle sales surged 85% to 3.13 lakh units in April 2010.

Bank of Maharashtra fell 0.4% to Rs 55.20 after the bank said fourth quarter net interest income rose 40% to Rs 399 crore from Rs 285 crore a year ago. Net profit for the quarter rose 1% to Rs 139 crore compared to net profit of Rs 137 crore a year ago.

Century Textiles and Industries Limited dropped 2.6% to Rs 509.90 after the textile company said fiscal year 2010 sales rose 16.7% to Rs 4,453 crore from Rs 3,815.7 crore a year ago. Net profit for the year rose 43.5% to Rs 339.5 crore compared to net profit of Rs 236.5 crore a year ago.

Glenmark Pharmaceuticals Limited advanced 3.3% to Rs 279.00 after the company said it has entered into a licensing agreement with French drugmaker Sanofi-Aventis.

Hatsun Agro Product Limited fell 1.2% to Rs 106.00 after the company said a fire broke out at its Kanchipuram, Tamil Nadu plant on April 30 and the company estimated a loss of Rs 2.50 crore.

Housing Development Finance Corporation Limited fell 0.5% to Rs 2,805.60 after the provider of housing finance said fourth quarter net interest income rose 19% to Rs 1,287 crore from Rs 1,081 crore a year ago. Net profit for the quarter rose 26% to Rs 926.4 crore compared to net profit of Rs 733.4 crore a year ago.

HEG Limited fell 1.0% to Rs 365.60 after the graphite electrodes manufacturer said fourth quarter sales rose 32% to Rs 335 crore from Rs 253.7 crore a year ago. Net profit for the quarter rose 62% to Rs 39.3 crore compared to net profit of Rs 24.2 crore a year ago.

Jyoti Limited climbed 4.0% to Rs 73.50 after the company said that it received orders for Rs 142 crore recently. The first order is from General of Naval Dockyard through Hindustan Construction Company for Rs 85 crore for re-construction and completion of dry dock at Mumbai.

Kotak Mahindra Bank Limited rose 0.4% to Rs 740.00 after the private sector bank said its board will consider stock-split proposal on May 11.

Liberty Shoes Limited fell 0.9% to Rs 104.85 after the footwear manufacturer said fourth quarter sales rose 6% to Rs 70.5 crore from Rs 66.4 crore a year ago. Net profit for the quarter rose 22% to Rs 2.8 crore compared to net profit of Rs 2.3 crore a year ago.

Moser Baer India Limited fell 0.9% to Rs 73.30 after the manufacturer of CDs and DVDs said fourth quarter sales rose 12% to Rs 527.3 crore from Rs 470 crore a year ago. Net profit for the quarter fell 85% to Rs 6.3 crore compared to net profit of Rs 42.9 crore a year ago.

Reliance Capital Limited fell 0.9% to Rs 732.00 after the financial services company said fiscal year 2010 sales rose 2.6% to Rs 6,140.6 crore from Rs 5,983.3 crore a year ago. Net profit for the year fell 57% to Rs 434.5 crore or Rs 17.63 per share compared to net profit of Rs 1,015.7 crore or Rs 41.35 per share a year ago.

The South Indian Bank Limited plunged 12.1% to Rs 153.55 after the bank said fourth quarter net interest income fell 45% to Rs 80 crore from Rs 146 crore a year ago. Net profit for the quarter fell 23% to Rs 38.6 crore compared to net profit of Rs 50.3 crore a year ago.

Tata Motors Limited added 1.6% to Rs 856.95 after the company reported a 52.47% increase in sales in April to 57,202 units compared to the same month last year.

Tata Teleservices (Maharashtra) Limited fell 1.2% to Rs 22.95 after the telecommunication company said fiscal year 2010 sales rose 8% to Rs 2,098.3 crore from Rs 1,945.8 crore a year ago. Net loss for the year was Rs 318 crore compared to net loss of Rs 170 crore a year ago.

Titan Industries Limited rose 2.8% to Rs 2,189.75 after the manufacturer of watches said fourth quarter sales rose 49% to Rs 1,311.4 crore from Rs 881.2 crore a year ago. Net profit for the quarter rose 84.5% to Rs 51.3 crore compared to net profit of Rs 27.8 crore a year ago.