Sensex in India Plunges 2.7%

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

The Sensex index plunged as investors sold shares on concern that Europe

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai fall sharply tracking losses in Asia and ongoing euro-zone worries. Ashok Leyland closed lower after cyclone Laila affects operations of Tamil Nadu plant. NRB Bearings soar on bonus issue declaration. Godrej Consumer advanced on overseas acquisition.[/R]

The Sensex index plunged as investors sold shares on concern that Europe’s debt crisis will slow down economic growth. The Sensex Index retreated as much as 11% from its peak of April 7.

The Sensex index in India decreased 447.07 or 2.71% to 16,022.48 and CNX Nifty index fell 120.75 or 2.44% to 4,823.20. Among the Sensex 30 stocks, 2 rose and 28 fell.

On BSE trading, 487 stocks advanced, 2,214 declined and 75 were unchanged. Metal stocks fell as metal futures fell. Auto shares extended recent sharp fall. Realty stocks extended recent losses.

Shares of six steel makers fell between 1.7% and 3.8% on reports that steel makers are likely to lower prices of steel products on falling international steel prices.

Rupee edged lower 27 paisa to Rs 47.25 against one dollar.

ICICI Prudential Asset Management Co, Franklin Templeton Investments, Sundaram BNP Paribas Mutual Fund, Birla Mutual Fund, HDFC Mutual Fund, and Reliance Capital bought shares worth 370 crore rupees in Standard Chartered Plc’s first IDR offer in India, according to a filing with the National Stock Exchange late yesterday.

Aban Offshore Ltd said in a statement to the Bombay Stock Exchange today that it plans to raise as much as $400 million selling bonds or shares overseas, besides selling 2,500 crore rupees of equity-related securities to large investors.

The Mumbai Metropolitan Region Development Authority sold land in Wadala in the central-eastern district of the city for 4,500 crore rupees to Lodha Developers Ltd, the agency’s Additional Commissioner S.V.R. Srinivas told reporters today.

MMRDA will lease out the 25,000 square meter land in Wadala for 65 years, according to the tender document.

The plot is situated near the inter-state bus terminal in Wadala and falls along the upcoming monorail line between Jacob Circle and Chembur via Wadala and is close to the Eastern Express Highway.

Research firm Crisil said on Monday that the 3G services industry subscriber base was likely to reach 100 million by the end of the fifth year of operations. The firm also said it expects an investment of around Rs 2.6 lakh crore over the next five years, according to Director Nagarajan Narasimhan.

Three leading mobile operators Bharti Airtel, Vodafone, and Idea have preempted a policy change by approaching the Telecom Disputes Settlement and Appellate Tribunal against the Telecom Regulatory Authority of India’s recommendations on 2G spectrum, including a one-time fee for holding radio waves beyond 6.2 Mhz.

Gainers & Losers

Aban Offshore Limited decreased 2.8% to Rs 684.70 after the company secured an order for deploying a jack-up rig in the Middle East.

Ashok Leyland declined 4.7% to Rs 56.95 after the company''s Ennore plant was affected due to cyclonic conditions in Tamil Nadu.

Bafna Pharmaceuticals Limited rose 1.8% to Rs 44.00 after the company announced that company''s facility has been approved with compliance of Good Manufacturing Practice by Ethopian audit team.

The Bombay Dyeing & Manufacturing Company Limited decreased 6.6% to Rs 481.15 after the textile, polyester and real estate company said fourth quarter sales rose 21% to Rs 527.6 crore from Rs 436.9 crore a year ago. Net profit for the quarter rose 202% to Rs 46.8 crore compared to net profit of Rs 15.5 crore a year ago.

Future Capital Holdings Limited fell 0.3% to Rs 148.30 after the non-banking financial company said fourth quarter sales rose 41% to Rs 72 crore from Rs 51.2 crore a year ago. Net profit for the quarter was Rs 30.3 crore compared to net loss of Rs 3.2 crore a year ago.

GMR Infrastructure Limited decreased 4.7% to Rs 54.30 after the infrastructure company said fourth quarter sales fell 15% to Rs 1,125 crore from Rs 1,327.8 crore a year ago. Net profit for the quarter rose 37% to Rs 73 crore compared to net profit of Rs 53.2 crore a year ago.

Godrej Consumer Products Limited increased 4.9% to Rs 327.30 after the company consolidated the operations of insecticides joint venture Godrej Sara Lee with Godrej Consumer Products in a bid to lower costs by 10%, nearly two weeks before it completes the purchase of US-based Sara Lee’s 51% stake.

Hindustan Unilever Limited fell 0.6% to Rs 230.10 after the consumer goods company said fourth quarter sales rose 8% to Rs 4,316 crore from Rs 3,988.3 crore a year ago. Net profit for the quarter rose 47% to Rs 581 crore compared to net profit of Rs 395 crore a year ago.

Hotel Leelaventure Limited plunged 10.0% to Rs 44.15 after the hotelier said fiscal year 2010 sales fell 3% to Rs 436.3 crore from Rs 450.7 crore a year ago. Net profit for the quarter fell 72% to Rs 41 crore compared to net profit of Rs 145 crore a year ago.

Modern India Limited surged 14.7% to Rs 167.90 after the company entered into a memorandum of understanding with K. Raheja Corp for redevelopment of some of its properties situated in South Mumbai.

NHPC Limited rose 0.8% to Rs 28.30 after the hydroelectric power generating company said full year sales rose 58% to Rs 4,219 crore from Rs 2,672 crore a year ago. Net profit for the year rose 94% to Rs 2,090 crore compared to net profit of Rs 1,075 crore a year ago.

NRB Bearings Limited surged 9.9% to Rs 86.80 after the company announced that it has declared dividend at Rs 2.00 per equity share of Rs 2 each payable to shareholders.

Pyramid Saimira Theatre Limited plunged 16.0% to Rs 10.80.

Sun Pharmaceutical Industries Ltd rose 2.0% to Rs 1,580.25 after its US unit got nod from the US regulator for a work plan that could pave way for resuming production at its Michigan facilities, almost a year after the closure.

Tata Chemicals Limited fell 2.9% to Rs 296.80 after the producer of chemicals; crop nutrition and consumer products said fiscal year 2010 sales fell 22% to Rs 9,448.5 crore from Rs 12,153.3 crore a year ago. Net profit for the year fell 6.5% to Rs 605.9 crore compared to net profit of Rs 648.1 crore a year ago.

Tata Power Company Limited dropped 3.1% to Rs 1,203.05 after the integrated private power utility company said fourth quarter sales rose 20.5% to Rs 1,707 crore from Rs 1,416 crore a year ago. Net profit for the quarter fell 34% to Rs 230.7 crore compared to net profit of Rs 354.6 crore a year ago.