Sensex Falls on Euro-zone Worries

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

Stocks in Mumbai fell most in three months on the ongoing eurozone worries and sharp declines in Asian markets. Monsoon is forecasted to arrive ahead of schedule. Oil stocks slide as crude declined. ABB is aiming to increase stake in Indian unit to 75%. Madhucon postpones its IPO by a year.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai fell most in three months on the ongoing eurozone worries and sharp declines in Asian markets. Monsoon is forecasted to arrive ahead of schedule. Oil stocks slide as crude eclined. ABB is aiming to increase stake in Indian unit to 75%. Madhucon postpones its IPO by a year.[/R]

The Sensex index fell the most in three months after concern the global economy may weaken as Europe struggles to contain the fear of double-dip recession in the region. Increased risk aversion saw the rupee fall against the dollar for a second day.

Agricultural prospects got a boost with the early likelihood of monsoons in India. Conditions are favorable for the onset of monsoon rains over southeast Bay of Bengal, the South Andaman Sea and Nicobar islands within 24 hours, the Indian Meteorological Department said in a statement on its Web site today.

As the pan-India bid touched Rs 15,814 crore on the 31st day of the 3G e-auction process, the government is assured of Rs 63,885 crore in revenues from the sale of spectrum for 3G mobile services according to Press Trust of India.

After the closure of auction for 3G, the government would start the auction for broadband wireless access for which as many as 11 operators are in the fray.

North America’s largest solar energy services provider, SunEdison announced on May 15 its entry into the Indian market with the joint development of a 15-megawatt photovoltaic solar power plant in the state of Gujarat in collaboration with domestic independent solar power producer, Azure Power. Power generation will begin by January 2011 said the company release.

The Tirumala Tirupati Devasthanams has signed a pact with the State Bank of India for deposit of surplus gold lying in its treasury. The TTD has agreed to deposit in the first phase a whopping 1000 kilograms of gold with the SBI, the single largest gold deal both in terms of value and volume in the history of TTD.

ainers & Losers

Aban Offshore Limited dropped 4.9% to Rs 790.00 on bargain hunting after the stock corrected 22.42% in the preceding four trading sessions.

ABB Ltd declined 4.1% to Rs 18.02 after the company said Monday that it will offer shareholders of ABB Ltd., its unit in India, Rs 900 per share to raise its stake from around 52% to 75%.

Bartronics India Limited added 4.1% to Rs 146.40 after the company’s reported profit jumped 201.7% to Rs 28.84 crore.

Berger Paints India Limited fell 2.0% to Rs 61.15 after the paint company said fourth quarter sales rose 24% to Rs 434 crore from Rs 350 crore a year ago. Net profit for the quarter rose 31% to Rs 28.2 crore compared to net profit of Rs 21.5 crore a year ago.

DLF Limited fell 3.9% to Rs 286.95 after the real estate development company said fourth quarter sales rose 78% to Rs 1,994.4 crore from Rs 1,122.3 crore a year ago. Net profit for the quarter rose 168% to Rs 426.4 crore compared to net profit of Rs 159.1 crore a year ago.

GAIL (India) Limited rose 1.1% to Rs 432.80 after the natural gas company said fourth quarter sales rose 6% to Rs 6,522 crore from Rs 6,128 crore a year ago. Net profit for the quarter rose 44.6% to Rs 911 crore compared to net profit of Rs 630 crore a year ago.

Hindustan Copper Limited rose 0.3% to Rs 469.35 after the manufacturer of copper said fourth quarter sales rose 19% to Rs 409.7 crore from Rs 344.7 crore a year ago. Net profit for the quarter was Rs 91 crore compared to net profit of Rs 4 crore a year ago.

Jammu & Kashmir Bank Limited rose 1.4% to Rs 767.95 after the bank said fourth quarter net interest income rose 23% to Rs 309 crore from Rs 250.6 crore a year ago. Net profit for the quarter rose 52.5% to Rs 120 crore compared to net profit of Rs 78.7 crore a year ago.

Kingfisher Airlines Limited dropped 4.6% to Rs 44.20 after the company reports IDBI Bank has asked the private airline to repay loans worth Rs 900 crore on failure to stick to repayment schedule.

Larsen & Toubro Limited rose 4.9% to Rs 1,605.55 after the technology, engineering, construction and manufacturing company said fourth quarter sales rose 28% to Rs 13,375 crore from Rs 10,469 crore a year ago. Net profit for the quarter rose 44% to Rs 1,438 crore compared to net profit of Rs 998 crore a year ago.

Madhucon Projects Limited fell 2.6% to Rs 149.50 after the company’s plan to list all its development projects under Madhucon Infra will have to wait till next June because of a Securities and Exchange Board of India norm concerning re-pledging of shares.

Mundra Port and Special Economic Zone Limited fell 1.8% to Rs 701.15 after the developer of the Mundra Port and the related infrastructure facilities said fourth quarter sales rose 16.3% to Rs 1,382 crore from Rs 1,188 crore a year ago. Net profit for the quarter rose 56% to Rs 676 crore compared to net profit of Rs 433 crore a year ago.

National Aluminum Company Limited rose 0.5% to Rs 410.55 after the aluminum company said fourth quarter sales rose 44% to Rs 1,626 crore from Rs 1,125.6 crore a year ago. Net profit for the quarter rose 371% to Rs 391 crore compared to net profit of Rs 83 crore a year ago.

NTPC Limited fell 0.9% to Rs 204.00 after the generator of thermal power said fourth quarter sales rose 8% to Rs 12,353.4 crore from Rs 11,445.8 crore a year ago. Net profit for the quarter rose 4.5% to Rs 2,018 crore compared to net profit of Rs 2,113 crore a year ago.

Patel Engineering Ltd rose 0.2% to Rs 424.70 after the civil construction company said fourth quarter sales rose 24% to Rs 1,197 crore from Rs 965 crore a year ago. Net profit for the quarter rose 14% to Rs 72 crore compared to net profit of Rs 63 crore a year ago.

Reliance Communications Limited decreased 2.2% to Rs 141.20 after the provider of telecommunications services said full year sales fell 4% to Rs 12,081 crore from Rs 12,594 crore a year ago. Net profit for the year fell 90% to Rs 479 crore compared to net profit of Rs 4,803 crore a year ago.

Reliance Infrastructure Limited dropped 2.9% to Rs 995.70 after the infrastructure company said fourth quarter sales rose 9.7% to Rs 2,643 crore from Rs 2,409.2 crore a year ago. Net profit for the quarter rose 27% to Rs 251 crore compared to net profit of Rs 346 crore a year ago.

Reliance Natural Resources Limited fell 2.2% to Rs 46.35 after the company engaged in sourcing, supply and transportation of gas, coal and liquid fuels said fourth quarter sales rose 10% to Rs 298.3 crore from Rs 270 crore a year ago. Net profit for the quarter rose 26% to Rs 90.7 crore compared to net profit of Rs 71.5 crore a year ago.

Spanco Telesystems and Solutions Limited rose 2.2% to Rs 122.55 after the company reported net profit rose 323.2% to Rs 20.40 crore.

Videocon Industries Limited rose 1.2% to Rs 215.65 after the maker of consumer electronic products and home appliances said fourth quarter sales rose 28% to Rs 2,840 crore from Rs 2,214 crore a year ago. Net profit for the quarter rose 104% to Rs 149 crore compared to net profit of Rs 73 crore a year ago.