Sensex Drops; Mumbai Port Closed

Chandrasekhar Atreya
10 Aug, 2010
New York City

Stocks in Mumbai closed lower after fluctuating several times tracking losses in Asia. Government reduced the mandatory requirements of shareholding for state-owned public companies to 10% from 25%. Mumbai port remains closed for the second day after an accident-led oil spill.

[R]5:00 PM Mumbai – Stocks in Mumbai closed lower after fluctuating several times tracking losses in Asia. Government reduced the mandatory requirements of shareholding for state-owned public companies to 10% from 25%. Mumbai port remains closed for the second day after an accident-led oil spill.[/R]

Stocks in India opened higher but fell and close lower as tracking the declines in Asian markets and weak opening in the European bourses.

The Sensex Index lost 0.35% or 67.51 points to close at 18,218.99.

Auto sales in India rose an annual 38% in July, an industry body said Monday, as rapidly expanding economy continues to pull buyers to showrooms. Automakers sold 158,764 units in the month, compared with 115,084 units a year ago, data from the Society of Indian Automobile Manufacturers showed.

Sales of trucks and buses, a barometer of economic activity, rose 37% to 51,481 units in July SIAM said.

The government admitted Monday to cost overruns to the tune of Rs 50,295 crore in 268 of the 578 ongoing projects without giving the timeframe for implementation. As of April this year, the cost of overruns in these 268 projects touched Rs 50,295 crore, Minister of State for Statistics and Programs Implementation Sriprakash Jaiswal said in a written reply in the Rajya Sabha.

Glenmark Pharmaceuticals entered into a settlement agreement with American firm Sepracor, which could pave the way for the Indian firm to launch generic eszopiclone tablets, used in treating insomnia, in the U.S. market.

""Sepracor Inc has entered into a settlement and licence agreement with Glenmark to resolve a patent infringement suit related to its filing of an abbreviated new drug application (ANDA) with the United States Food and Drug Administration to market generic Eszopiclone tablets,"" Glenmark said in a filing to Bombay Stock Exchange.

Orchid Chemicals & Pharmaceuticals said it has received U.S. health regulators approval to sell anti-epileptic levetiracetam tablets in the American market.

The company received approval from the US Food and Drug Administration for its abbreviated new drug application for levetiracetam tablets in strength of 1,000 mg,"" Orchid Chemicals said in a filing to Bombay Stock Exchange.

State-owned BHEL received a contract for engineering and commissioning of boilers, steam turbines, turbo generators and other auxiliaries from Abhijeet Infra for setting up a 1,080 megawatt thermal power plant in Jharkhand.

“Valued at Rs 2,525 crore, the contact envisages supplying and installing the main plant package for Abhijeet Infra Ltd’s upcoming coal-based power plant in Ranchi, Jharkhand, a statement said.

India on Monday reversed a two-month rule that required state-run companies to have at least 25% of their stake traded thus may have flooded the nation’s equity market.

Government-owned firms will now only need a minimum 10% public holding in three years, D.S. Malik, a spokesman of the Finance Ministry, said Monday.

Jawaharlal Nehru and the adjacent Mumbai Port were closed Monday as salvagers worked to recover about 250 containers, which sank from Mediterranean Shipping Co’s MSC. Chitra after a collision on August 7, the Shipping Ministry said in a statement posted on its Web site yesterday.

Sterling Holiday Resorts (India) Ltd, India’s second-largest operator of time-share vacations by market value, plans to spend Rs 5,000 crore to develop its existing hotels and also buy a new property.

“The company which has more than 115,000 customers, is searching for a location for the new resort,” said Head of Marketing Lata Subramanian in an interview in Chennai today.

Singapore-based Dart Energy Ltd, the gas explorer spun off from Arrow Energy Ltd, said it is exiting two coal-seam blocks in India citing lack of commercial potential.

Dart, which is listed on the Australian stock exchange is in the process of giving up the Mand-Raigarh block after initial exploration showed it didn’t have potential for commercial production, Arrow spokesman Gareth Quinn said in an e-mailed response to questions posed to him.

Aban Offshore has signed a contract with Petrobras, Brazil valued at Rs 2,285 crore for deploying its drill ship Aban Abraham offshore Brazil for 5 years.

SEBI clears Avantha Power & Infrastructure Ltd’s application for IPO to raise Rs 1,250 crore. Enam Securities, Kotak Mahindra, Citigroup and Axis Bank will be acting as lead managers to the issue.

Gainers & Losers

The Andhra Sugars Limited declined 6.3% to Rs 129.95 after the sugar refiner said first quarter net profit fell 60.4% to Rs 5.10 crore.

Dhanuka Agritech Limited rose 0.2% to Rs 445.80 after the pesticides company set September 4 as record date for a 5-for-1 stock split.

Electrosteel Castings Limited dropped 7.3% to Rs 49.40 after the ductile pipe manufacturing company reported net profit dropped 48.2% to Rs 30.08 crore.

Essar Shipping Ports & Logistics Limited declined 3.4% to Rs 123.15 after the fleet operations company as profit taking emerged after the stock vaulted 50.2% in just five trading sessions.

FDC Limited fell 2.8% to Rs 88.30 after the pharmaceutical company reported stock turned ex-dividend August 10, for a dividend of Rs 1.75 per share for the year ended March 2010.

GMR Infrastructure Limited gained 2.7% to Rs 60.25 after the infrastructure development company received offers from international investors for buying its 50% stake in overseas power firm InterGen.

HBL Power Systems Limited plunged 7.5% to Rs 28.75 after the nickel batteries manufacturing company said first quarter net profit declined 73.1% to Rs 7.09 crore.

Hindustan Dorr-Oliver Limited fell 2% to Rs 143.50 after the erection and commissioning company net profit rose 29.3% to Rs 16.62 crore.

Harrisons Malayalam Limited plunged 9.9% to Rs 124.65 after the agricultural company reported first quarter net loss of Rs 3.89 crore compared with net profit of Rs 2.93 crore form quarter of year ago.

Infotech Enterprises Limited gained 2.2% to Rs 164.90 after the engineering design and IT solutions company’s wholly owned US subsidiary Infotech Enterprises America Inc acquired Arkansas based Wellsco Inc.

Indian Hume Pipe Co. Ltd increased 1.9% to Rs 832.05 after the water supply company has fixed August 31 as record date for 5-for-1 stock split.

Kalindee Rail Nirman (Engineers) Limited rose 2.2% to Rs 155.35 after the railway electrification company scheduled a board meeting on August 12 to consider issue of convertible warrants to the promoter group.

Karur KCP Packagings Limited surged 7.7% to Rs 65.05 after the packaging material company reported net profit in first quarter rose 65.7% to Rs 4.06 crore.

Nucleus Software Exports Limited rose 3.5% to Rs 131.65 after the global software company secured an order for one of its software products for an undisclosed sum.

Opto Circuits (India) Ltd fell 1.4% to Rs 277.40 after the medical equipment company said first quarter consolidated net profit surged 40.2% to Rs 83.10 crore.

Punjab Chemicals and Crop Protection Limited fell 2.1% to Rs 143.15 after the agro chemical company reported higher first quarter net loss of Rs 15.57 crore from net loss of Rs 3.45 crore in same quarter of 2009.

Raymond Limited plunged 5.2% to Rs 267.85 after the textiles company pared profit taking after the stock jumped 25.07% in five trading sessions.

Srei Infrastructure Finance Limited rose 1.9% to Rs 89.70 after the infrastructure leasing and finance company reported first quarter consolidated net profit rose 19.9% to Rs 46.65 crore.

Tulip Telecom Limited rose 0.9% to Rs 183.70 after the telecommunications company said first quarter consolidated net profit rose 8.6% to Rs 64.18 crore.