Monsoon Prospects Improve; Sensex Declines

Mayank Mehta, Chandrasekhar Atreya and Sanjay Barot
08 Jun, 2010
New York City

India Commodity Exchanger Ltd, founded by MMTC Ltd and Indiabulls Financial Services Ltd, is planning to start iron-ore futures. The country

[R]5:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded lower. India Commodity Exchange Ltd is planning to start iron ore future Tata Steel Ltd raises stake in New Millennium Capital Corp to 27%. Private equity fund Texas Capital Group is in talks to take a stake in Vishal Retail Limited.[/R]

The Sensex index in India decreased 163.97 or 0.98% to 16,617.10 and CNX Nifty index fell 24.20 or 0.48% to 5,009.80. Among the Sensex 30 stocks, 13 rose and 17 fell.

On BSE trading, 1,648 stocks advanced, 1,079 declined and 114 were unchanged. Reliance Industries extended losses. But capital goods stocks were firm and realty stocks fell.

Rupee edged higher 12 paisa to Rs. 46.96 against one dollar.

“If the monsoons are good we will also see a moderation in food prices which will ease the inflationary pressures we are facing. Our monetary policy stance is to make a steady correction in our policy position,” Subir Gokarn, Deputy Director of The Reserve Bank of India, said in Singapore today.

India Commodity Exchanger Ltd, founded by MMTC Ltd and Indiabulls Financial Services Ltd, is planning to start iron-ore futures. The country’s first bourse to allow iron-ore futures, started its operations in November for a share of India’s 77.65 trillion rupees commodity futures market.

“Going forward after introducing iron-ore futures, we will add many contracts that are new to the market,” said the bourse’s CEO Sanjay Chandel in an interview in Mumbai yesterday.

India’s 10-year bonds fell after government announced yesterday that it will sell Rs 11,000 crore notes on June 11. This is in addition to Rs 31,500 crore of 10-year bonds from five states of India.

India has pressed China on Monday to remove long-pending import restrictions on 17 varieties of agro-products as it would address the fast-widening trade imbalance between the two nations.

Minister of State for Agriculture, K.V. Thomas on a six-day state visit and told Vice-Minister for Agriculture, Niu Dun that China needs to expedite clearance for basmati rice, bovine meats, still awaiting clearance after passing safety tests.

This is in addition to 12 other varieties of agricultural produce for which permission has been sought. China has given permission only for grapes, bitter gourd and mangoes.

Air France-KLM will act as representative carrier for Delta Airlines in India as of June 1. The three airlines rationalized their capacity to lower the air competition to India.

Under the agreement, all the commercial services of Delta Airlines such as reservations, pricing, marketing, and sales will be facilitated by the Air France-KLM India regional management.

The total wireless spectrum auction haul touched nearly Rs 100,000 crore on day-12 of the BWA spectrum auction. The total price soared to Rs 99,675 crore on Monday including the revenue of Rs 67,719 crore already generated from the 3G auction.

Gainers & Losers

Andhra Bank rose 0.69% to Rs 138.15 on reports the state-run bank is likely to buy back about 5% of its shares from the open market soon.

Bharti Airtel Limited fell 3.77% to Rs 257.80 after the company reported that Mobile Telecommunications Company KSC (Zain) and Bharti Airtel Limited are expected to close a $9 billion deal for most of the Kuwaiti firm''s African assets today.

Consolidated Construction Consortium Ltd rose 5.63% to Rs 83.50 after the company announced that it has received Rs 200 crore Goa Airport project from Airports Authority of India. The project has been awarded to the company for construction of a new integrated terminal building at civil enclave, Goa.

eClerx Services Limited fell 4.3% to Rs 530.00 after the company announced that it has recommended issue of bonus shares in the ratio of one bonus equity share of Rs 10 each for every two existing fully paid up equity shares of Rs 10 each held in the company.

GTL Infrastructure Limited fell 5% to Rs 37.95 on profit booking after the stock rose 11.74% in the past four trading sessions.

Hindustan Construction Company Limited fell 0.94% to Rs 110.15 after a wholly owned unit of the company signed an agreement with a leading Middle East construction contractor for large road projects in India.

HT Media Limited rose 0.74% to Rs 157.00 on reports non-resident Indians and foreign venture capital investors may pick up to 26% stake in Hindustan Media Ventures for Rs 350 crore.

Kale Consultants Limited rose 5.4% to Rs 128.85 after the company secured an export order for one of its software products for an undisclosed sum.

Kwality Dairy (India) Limited rose 4.97% to Rs 142.50 after the company announced that it has fixed June 16 as the record date for the purpose of issuance of bonus shares to the public shareholders of the company in the ratio of five new fully paid up equity shares for every seven fully paid up equity shares held.

Mastek Limited fell 5.49% to Rs 259.00 after the company clarified that it has been evaluating opportunities for inorganic growth through strategic acquisitions, but no such acquisition has been finalized.

Niraj Cement Structurals Ltd rose 1.05% to Rs 48.25 after the company announced that it has received the order from Greater Mohali Area Development Authority, Chandigarh, for construction of 200'' wide road from RUB Junction to NH-64.

Punj Lloyd Limited fell 0.51% to Rs 116.10 after the company secured a contract from the Rajiv Gandhi Institute of Petroleum Technology to construct their technical institute at Rae Bareli, Uttar Pradesh for a value of Rs 179.89 crore.

Ranbaxy Laboratories Limited fell 3.30% to Rs 415.85 after the company''s unit launched atorvastatin, generic form of Pfizer Inc''s blockbuster Lipitor, cholesterol-reducing medicine, in South Africa.

Reliance Communications Limited fell 4.69% to Rs 167.65 after AT&T Inc denied media reports it is in talks with the company for a minority stake.

Select shares to be shifted back to rolling settlement from trade-to-trade segment effective June 11, witnessed buying interest.

Shares of five IT firms fell 0.09% to 1.11% after the rupee inched higher against the dollar, boosted by gains in the domestic equity market.

Tata Steel Limited fell 2.13% to Rs 452.70 after the company has raised its holding in Canadian mining firm New Millennium Capital Corp to 27%.

Vishal Retail Limited rose 4.90% to Rs 50.30 on reports the company may close a deal with a private equity fund Texas Pacific Group, and other Indian investors in 2 to 3 months to raise funds and cut debt.