Sensex in India Tracks Lower

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

Stocks in Mumbai traded lower tracking losses in global markets. Coal India prepares for the largest initial public offering in India. Jindal Steel & Power quarterly net increased 7%. Jagaran Prakashan may bid for Mid-day Multimedia.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded lower tracking losses in global markets. Coal India prepares for the largest initial public offering in India. Jindal Steel & Power quarterly net increased 7%. Jagaran Prakashan may bid for Mid-day Multimedia.[/R]

Sensex fell to a nine-week low after world markets fell sharply on the growing worries of deepening financial crisis in Europe.

Investors are increasingly concerned that Spain, Portugal and Ireland may need a total of 500 billion euros bail out if private investors fail to participate in government bond sale in the next two years.

Goldman Sachs, Morgan Stanley, Deutsche Bank, Citigroup among others are in the race for getting the mandate for managing Coal India’s IPO, in what maybe India’s largest initial public offering, according to a statement on the website of the Department of Disinvestment.

Container Corporation of India Ltd plans to spend as much as Rs 3,000 crore over five years including construction of 25 more rail-container terminals to ease bottlenecks and expand its network. The trade will grow at a much faster rate, said Managing Director Anil Gupta in an interview in New Delhi yesterday.

Asian nations like China, India and Korea are outstripping other regions to contribute to the global recovery according to the IMF. “Investor interest in Asia will probably rebound and strengthen,” said William Hess Director of Sovereign Ratings for Asia in an interview this week at Tashkent.

Asian government bonds are likely to benefit from low debt levels and expanding economies, in contrast to developed nations exposed to the Greek debt crisis according to Standard and Poor’s.

The Securities and Exchange Board of India on Tuesday permitted stock exchanges to introduce index options contracts on the Sensex and Nifty for a longer tenure of five years. On January 11, 2008 the SEBI had set the tenure for Index options trading as three years.

The Reserve Bank of India on Tuesday revised the pricing norms for transfer of ordinary and preference shares, convertible debentures between residents and non-residents. These directions will become operative with immediate effect, the RBI stated.

Union Commerce and Industry Minister Anand Sharma and Australian Trade Minister Simon Crean on Tuesday released the feasibility study report on India Australia Free Trade Agreement conducted by the joint study group of the two countries.

The Sensex index in India decreased 49.18 or 0.29% to 17,087.96 and CNX Nifty index fell 52.65 or 1.02% to 5095.85. Among the Sensex 30 stocks, 8 rose and 22 fell.

On BSE trading, 738 stocks advanced, 2,096 declined and 74 were unchanged. Sugar refiners declined on weak global sugar prices.

Seven IT shares rose between 0.4% and 4.6% after the rupee weakened to its lowest level in more than a month against the dollar.

Rupee edged lower 10 paisa to Rs 44.61 against one dollar.

Gainers & Losers

ARSS Infrastructure Projects Limited dropped 0.9% to Rs 1,193.00 after the company secured an order for Rs 99.90 crore from Madhya Pradesh Road Development Corporation.

Ashok Leyland Limited rose 0.8% to Rs 61.15 after the company today reported total vehicle sales rose 271.4% to 6,500 units in April 2010.

B.L. Kashyap and Sons Limited fell 0.4% to Rs 358.00 after the engineering contractor secured new projects of Rs 516 crore in residential/hospitality and industrial construction segment.

Gayatri Projects Limited rose 0.6% to Rs 413.00 after the construction firm said it has secured an order of Rs 2,200 crore from the Andhra Pradesh government for construction related works.

HMT Limited declined 2.4% to Rs 75.15 after the machine tool manufacturing company said fourth quarter sales rose 15.5% to Rs 59.5 crore from Rs 51.5 crore a year ago. Net loss for the quarter was Rs 12.4 crore compared to net loss of Rs 25.04 crore a year ago.

Jindal Steel & Power Limited decreased 3.9% to Rs 690.05 after the sponge iron manufacturer said fourth quarter sales rose 11% to Rs 3,175.6 crore from Rs 2,866.7 crore a year ago. Net profit for the quarter rose 7% to Rs 963.4 crore or Rs 10.35 per share compared to net profit of Rs 898 crore or Rs 57.85 per share a year ago.

Mid-day Multimedia Limited surged 18.1% to Rs 33.55 on reports Jagran Prakashan is likely to pay Rs 200 crore to acquire the print media business.

Orchid Chemicals & Pharmaceuticals Limited fell 0.1% to Rs 152.05 after the company said on Wednesday it has signed an out-licensing and distribution deal with US-based Alvogen for marketing the Indian company''s eight oral non-antibiotic formulations in US.

Orient Paper & Industries Limited increased 3.8% to Rs 59.70 after the manufacturer of cement, paper, electrical consumer durables and chemicals said fourth quarter sales rose 17.5% to Rs 547.9 crore from Rs 466 crore a year ago. Net profit for the quarter rose 0.5% to Rs 54.8 crore compared to net profit of Rs 54.5 crore a year ago.

Syndicate Bank Ltd rose 2.2% to Rs 92.35 after the bank said fourth quarter net interest income rose 53% to Rs 859.7 crore from Rs 561.7 crore a year ago. Net profit for the quarter fell 18% to Rs 168.2 crore compared to net profit of Rs 206.6 crore a year ago.

Videocon Industries Limited decreased 4.7% to Rs 215.75 after World Bank accused the company of indulging in fraud and corrupt practices. The World Bank blacklisted the company for three years, ending January 11, 2013.

Visaka Industries Limited rose 0.06% to Rs 172.90 after the company said its board will meet on May 10 to consider stock-split proposal.

Wabco Tvs (India) Limited rose 1.0% to Rs 804.45 after the manufacturer of automotive components said fourth quarter sales rose 171% to Rs 191 crore from Rs 70.4 crore a year ago. Net profit for the quarter was Rs 27.2 crore compared to net loss of Rs 79 lakhs a year ago.