Sensex Declines; $3 B Delhi Terminal

Mayank Mehta, Chandrasekhar Atreya and Sanjay Barot
07 Jul, 2010
New York City

Stocks in Mumbai fell the most in four days led by ICICI Bank. NMDC plans to build a new pipeline for iron ore in Chattisgarh. Reliance calls for contractors to explore for onshore oil and coal bed methane. Bharti promises $600 million telecom investment in Nigeria.

[R]5:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai fell the most in four days led by ICICI Bank. NMDC plans to build a new pipeline for iron ore in Chattisgarh. Reliance calls for contractors to explore for onshore oil and coal bed methane. Bharti promises $600 million telecom investment in Nigeria. JSW first quarter crude steel production rises 14%.[/R]

The Sensex index in India decreased 143.45 or 0.81% to 17,471.03 and CNX Nifty index fell 40.85 or 0.77% to 5,248.20. Among the Sensex 30 stocks, 9 rose and 21 fell.

On BSE trading, 1,529 stocks advanced, 1,295 declined and 95 were unchanged. Banking and metal stocks fell.

Rupee edged lower 11 paisa to Rs 47.01 against one dollar.

NMDC Ltd, India’s largest iron ore producer, has plans to buy four coking coal mines from Kolmar LLC of Russia to secure raw material supplies for two of its planned steel mills in the country.

“We hope to complete the negotiations to buy the four mines that have total reserves of about 400 million tons in the Yakutia region by December,” said NMDC Finance Director S. Thiagarajan over phone today from Hyderabad.

The Russian coal will be used to fire NMDC’s $3.6 billion steel mill in Chattisgarh slated to begin by fiscal 2014. The ore will also be used for the proposed $2 billion plant in Karnataka, said Thiagarajan.

NMDC is also in talks with Nippon Steel and Kobe Steel of Japan for partnership in two steel mill projects in Karnataka and Andhra Pradesh. The state-owned firm will also be investing Rs 3,000 crore to set up a 12 million ton per annum pipeline in Chattisgarh to supply iron ore to its domestic steel customers.

“We are talking to the Japanese steel mills for a joint venture project in Karnataka. It could be with any steel company,” said NMDC Chairman and Managing Director Rana Som while talking to journalists in New Delhi on Tuesday.

Reliance Industries Ltd is looking for contractors that can help the company in its exploration for coal bed methane gas and onshore oil in blocks that the company had won in auctions that closed in 2001 and 2005.

Reliance is looking for equipment including rigs and production testing for onshore blocks along with the services, the company said in a tender document on its Web site. Reliance is also seeking services to explore for methane gas trapped in coal bed seams in block located in Madhya Pradesh, Rajasthan and Chattisgarh states, according to the tender. The last date for submission of bids has been fixed as July 21.

India’s sugar output maybe more than 24 million tons in the new crop year after government fixed record purchase price for sugarcane, said an official at the nation’s sugar association.

Production may total 24 million tons or more in the year starting October 1, Vivek Saraogi, Managing Director of Balrampur Chini Mills Ltd, and President of the sugar association, said in an interview on May 27.

Thomas Cook (India) opened nine foreign exchange and travel counters in the newly inaugurated Terminal 3 at the New Delhi International Airport. The recently completed $3 billion terminal will be linked to metro line to the center of the capital that will cut the commute time to twenty minutes.

Gainers & Losers

Ankit Metal & Power Limited fell 3.1% to Rs 29.25 after the company''s board approved a rights issue.

AstraZeneca Pharma India Limited rose 1.3% to Rs 1,352.00 after the company''s Swedish founder set a floor price of Rs 576.10 a share to buyout the remaining 10% stake and delist the Indian subsidiary.

Bharti Airtel Limited rose 1.5% to Rs 275.25 after chief executive said the company will invest $600 million in Nigeria''s mobile phone market.

Chemfab Alkalis advanced 3.2% to Rs 59 after first quarter net profit surged 42.3% to Rs 2.96 crore.

Dena Bank fell 2.6% to Rs 91.65 after it paid a dividend of Rs 2 a share for the year ended March 2010.

GEI Industrial Systems Ltd rose 0.6% to Rs 133.15 after the company secured two orders worth Rs 60.82 crore from power and oil sectors.

JSW Steel Limited fell 1.0% to Rs 1,065.05 after the company reported a growth of 14% from a quarter ago in crude steel production for first quarter of fiscal 2011.

NMDC Limited rose 0.2% to Rs 263.80 after the company plans to invest Rs 3,000 crore to set up a 12 million-ton per annum pipeline in Chhattisgarh to improve iron-ore supplies to local consumers.

Pfizer rose 1.77% to Rs 1,220 after the company said it will launch Prevenar 13, a pneumonia vaccine for infants and children.

Power Grid Corporation of India Limited rose 0.7% to Rs 102.75 after the company''s board approved investment of Rs 2,034.81 crore in three different projects.

SJVN rose 1% to Rs 24.60 after the company said it may buy a 30% stake in a 638 megawatt hydroelectric project in Georgia at an estimated cost of Rs 345 crore.

Srei Infrastructure Finance rose 1.6% to Rs 84 after the company plans to raise $1 billion overseas to fund infrastructure development in India.

Tata Steel Limited fell 0.7% to Rs 476.50 after the steelmaker said on Tuesday sales from its Indian operations stood at 1.4 million tons in April-June, nearly flat compared with the same period last year.

Tata Coffee Limited fell 2.5% to Rs 425.20 after it paid dividend of Rs 7.50 a share for the year ended March 2010.