Sensex Drops 0.8%; Tata Motor Net Surges

Chandrasekhar Atreya
11 Aug, 2010
New York City

Stocks in Mumbai steadily fell to close lower after markets in Asia turned lower Tata Motor net surged on rising auto sales in India. Production at Mumbai refineries was normal despite the port closure for the third day in a row after a ship collision.

[R]5:00 PM Mumbai – Stocks in Mumbai steadily fell to close lower after markets in Asia turned lower Tata Motor net surged on rising auto sales in India. Production at Mumbai refineries was normal despite the port closure for the third day in a row after a ship collision.[/R]

Indian stocks fell on the weakness in international markets closed at the day’s low just above 18,000. The Sensex Index fell 0.82% or 149.8 points to close at 18,070.19.

The Reserve Bank of India is reviewing whether it should allow industrial groups to own banks which would require permitting non-banking financial institutions to secure full licenses, according to a discussion paper issued in Mumbai today. The central bank said it will set policies after getting feedback from stakeholders by September 30.

The Rajasthan government agreed to pick up 26% stake in the proposed Barmer refinery to be set up by ONGC. Minister of State for Petroleum and Natural Gas, Jitin Prasada said the Rajasthan government pressed for a 9 to 12 million ton refinery in Barmer after Cairn India found 6.5 billion barrels of reserve that could produce 175,000 barrels per day of oil at plateau.

Pawan Kumar Ruia Group, which runs Dunlop and Falcon tire companies and engineering company Jessop, put in a binding bid for ailing Korean automobile-maker SsangYong Motor Company on August 10, which was the deadline date for submission of final bids.

The Power Ministry sought an allocation of 14.5 million standard cubic meters per day of gas from the Reliance Industries K.G. Basin facility for four power projects poised to produce nearly 4,135 megawatt of power during the current plan period.

A strong growth in domestic sales and a solid performance by Jaguar Land Rover saw Tata Motors reported a net profit of Rs 1,989 crore on a consolidated basis in the first quarter of 2010-11 against a loss of Rs 329 crore in the same period last year.

State-owned refiners said fuel production at plants in Mumbai were normal and no shortage is foreseen as the nation’s busiest port in the city remained closed for the third day today after a ship collision which led to an oil spill.

Steel Authority of India plans to invest $2.6 billion in a joint venture with South Korea’s Posco and may give a majority stake to it.

Ashok Leyland Ltd received an order for supply of 1,000 buses worth $26 million from People’s Leasing Company of Sri Lanka. These Viking buses with seating capacity varying from 42 to 58 will be exported by March 2011. The order is part funded by Asian Development Bank.

JSW Steel said imports of steel into India are increasing every month. Spot iron ore prices have come down by 20% to 25% because of lower demand from China it said.

Indowind Energy got a nod from the Environment Ministry for 18 megawatt wind power farm which will fetch it Rs 3 crore from carbon credit. The plant will come up at Chitradurga in Karnataka. The project is estimated to generate about 32,000 CER’s per year.

Corus, a Tata Steel Subsidiary, said it will invest £8 million in a Scottish steel plant at Dalzell in Motherwell to help meet demand for heavy plate products.

Gainers & Losers

Aegis Logistics Limited rose 0.3% to Rs 504.30 after the port operator fixed August 20, as the record date for 2:3 bonus shares.

Alok Industries Limited gained 1.2% to Rs 20.20 after the textile company said its wholly owned U.S. subsidiary Alok International Inc. formed a joint venture with Next Creations.

Ashok Leyland Limited fell 0.2% to Rs 70.40 after the commercial vehicle manufacturer won an order worth $26 million from People''s Leasing Company, Sri Lanka for supply of 1000 buses.

Aarti Industries Limited decreased 2.6% to Rs 51.15 after the pharmaceutical & chemical company first quarter net profit declined 14% to Rs 20.03 crore.

Bharati Shipyard Limited declined 4.4% to Rs 235.05 after the company said first quarter net profit declined 40.6% to Rs 22.12 crore.

Bharti Airtel Limited dropped 1.5% to Rs 319.20 after the telecommunication service provider reported acquisition of Telecom Seychelles, a leading telecom operator of island nation Seychelles, for an enterprise value of $62 million.

Educomp Solutions Limited plunged 9.7% to Rs 622.40 after the diversified global education solutions provider reported first quarter consolidated net profit dropped 39.5% to Rs 36.48 crore.

Empee Sugars and Chemicals Limited fell 0.5% to Rs 63.40 after the company reported first quarter net profit of Rs 3.13 crore compared to net loss of Rs 0.41 crore in same quarter of year ago.

Henkel India Limited fell 2.3% to Rs 53.50 after the homecare cosmetics & consumer goods manufacturing company said second quarter net profit plunged 85.9% to Rs 0.87 crore.

Hercules Hoists Ltd gained 3% to Rs 263.50 after the manufacturer of industrial handling equipments company reported first quarter net profit increased 142.2% to Rs 7.80 crore.

IVRCL Infrastructures & Projects Limited plunged 7.4% to Rs 157.70 after the engineering and construction company said first quarter net profit declined 21% to Rs 28.07 crore.

KRBL Limited decreased 3.1% to Rs 22.85 after the company reported first quarter consolidated net profit declined 19% to Rs 24.71 crore.

Patni Computer Systems Limited rose 0.5% to Rs 452.55 after the IT services provider company’s American depository receipts dropped 3.29% to $20.30 on the New York Stock Exchange on August 10.

Rashtriya Chemicals and Fertilizers Limited dropped 3.7% to Rs 81.15 after the chemical manufacturing company said net profit declined 37.30% to Rs 19.78 crore.

Riddhi Siddhi Gluco Biols Limited fell 3.7% to Rs 386.40 after the derivative product company reported stock turned ex-dividend August 11 for a dividend of Rs 5 per share for the year ended March 2010.

Sundram Fasteners Limited increased 4.8% to Rs 50.55 after the automotive components manufacturer company reported first quarter net profit surged 32.4% to Rs 22.55 crore.

Subex Limited advanced 4.1% to Rs 58.00 after the global telecom applications provider said company''s board approved preferential issue of equity shares worth up to Rs 64 crore to an investment vehicle of a telecom operator Rayed Holding & Finance S.A.

Solar Industries India fell 0.6% to Rs 450.00 after the explosive initiating devices manufacturing company’s stock turned ex-dividend August 11, for a dividend of Rs 3.50 per share.

Tata Motors Limited surged 9.5% to Rs 1,006.65 after the commercial and passenger vehicles company reported first quarter consolidated net profit of Rs 1988.73 crore compared to net loss of Rs 328.78 crore from a quarter of year ago.

Tata Communications Limited gained 10.8% to Rs 324.05 after the telecommunication and internet service provider said American depository receipt surged 7.5% to $12.73 on the New York Stock Exchange on August 10.