Sensex in India Declines; Yes Bank Falls

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

Stocks in Mumbai traded lower on the worries related to the euro-zone. Rabobank Nederland plans to sell stake in Yes Bank Ltd. Reliance, MTNL are in 3G franchise talks. Cox and Kings India is looking to raise $430 million. Orbit Corp issues a 1-to-1 bonus.

[R]5:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded lower on the worries related to the euro-zone. Rabobank Nederland plans to sell stake in Yes Bank Ltd. Reliance, MTNL are in 3G franchise talks. Cox and Kings India is looking to raise $430 million. Orbit Corp issues a 1-to-1 bonus.[/R]

The Sensex index in India decreased 126.86 or 0.71% to 17,749.69 and CNX Nifty index fell 13.20 or 0.25% to 5,340.10. Among the Sensex 30 stocks, 7 rose and 23 fell.

On BSE trading, 1,369 stocks advanced, 1,418 declined and 114 were unchanged.

Rupee edged lower 13 paisa to Rs 45.88 against one dollar.

Stocks in India declined steeply as investor sentiments took a beating after Euro-zone concerns escalated from the downgrading of BNP Paribas.

BSE Sensex Index lost 0.71% or 126.86 to close at 17,749.69.

Technofab Engineering Ltd is planning to raise as much as Rs 7,000 crore in an IPO in India. The company will offer 2.9 million shares in the range Rs 230 to Rs 240 each and the offering will be open from June 29 to July 2, according to a company statement in the Business Standard newspaper.

Netherlands-based Rabobank Groep sold 37.3 million shares of Yes Bank Ltd at Rs 263 per share to meet regulatory requirements as it seeks a full banking permit to do business in India. The bank gathered as much as Rs 981 crore in the sale as it aims to open its own banking unit in India.

Shopper’s Stop Ltd, India’s second-largest publicly traded retailer, is planning to add 50% more stores in a year and a half as demand rises with more disposable incomes in the hands of Indians.

“We want to maintain about 25% to 30% annual growth in sales.” said the company’s Managing Director B.S. Nagesh in an interview over telephone.

Patents for at least 91 drugs, with combined annual revenue of $157 billion will expire in the U.S. from 2010 to 2015, according to data collected by HDFC and released on June 17.

Dr Reddy’s Laboratories Ltd, which has 73 applications awaiting approval from the U.S. Foods and Drug Administration, has a very good chance of getting approvals to supply generic versions of drugs that generated about $90 billion of sales in 2008.

According to the latest data released by the Department of Industrial Policy and Promotion, the services sector, including financial and non-financial services, attracted the maximum foreign inflows out of all sectors. The flow declined 34% to $4.39 billion during 2009-10 from $6.61 in the previous year.

In4velicity Systems, a leading provider of real estate and infrastructure solutions, will partner Genpact, a global business process management company, on a five-year contract to provide innovative solution for specialized set of requirements needed for the airport project of Bengal Aerotropolis Project Ltd.

The project billed as the nation’s first such project and is located near Durgapur in West Bengal.

Gainers & Losers

Cox and Kings (India) rose 2.7% to Rs 508.65 on reports the company is seeking shareholders'' approval to raise up to Rs 2,000 crore of equity and debt to fund its expansion plans.

Emmbi Polyarns rose 20% to Rs 19.55 after the company acquired 25% stake in a Czech Republic-based international marketing company.

Hindustan Motors gained 8.3% to Rs 26.65 after extending Monday''s 20% rally triggered by reports three foreign auto majors are eyeing a stake in the company.

Shoppers Stop Limited fell 0.01% to Rs 473.30 after the company has plans to move in the Tier II cities in the next three years.

Mahanagar Telephone Nigam Limited fell 2.4% to Rs 65.20 after Reliance Industries Ltd which agreed to buy Infotel Broadband, is in initial talks with MTNL to market the state-run firm''s 3G services as a franchisee, the Financial Express reported without citing any source on Tuesday.

Orbit Corporation Limited rose 0.8% to Rs 260.00 after the company fixed June 30 as the record for a 1-for-1 bonus issue.

Sun Pharmaceutical Industries Ltd rose 1.0% to Rs 1,772.00 after the company announced US regulatory approval for generic Optivar.

VIP Industries Limited added 6.7% to Rs 317.30 after the high net worth investor Rakesh Jhunjhunwala increased his state in the company to 5.8% from 4.5%. The stock volume jumped to 22.8 lakh from 3.9 lakh.

Vikas WSP Limited gained 6.0% to Rs 23.65 after the company said it will enter into a technical pact and investment agreement with an overseas oil and gas servicing company for manufacturing specialty chemicals.

Wockhardt Limited dropped 1.2% to Rs 134.20 after the company said on Tuesday Khorakiwala Holdings & Investments Pvt Ltd on June 7, pledged 67 million shares or 61.47% holding in the company. That works out to 96.49% of the holding company''s stake, it added.

Yes Bank Limited fell 2.9% to Rs 273.50 after the Rabobank Nederland plans to sell its 15.9% stake in Yes Bank Limited as it looks to open a branch in India.