Sensex Drops; Adani in $1.6 B Indonesia Project

Chandrasekhar Atreya
25 Aug, 2010
New York City

Stocks in Mumbai traded down tracking losses in Asia and world markets. Reliance Insurance said its asset under management crossed $3 billion. Orissa government may give alternate bauxite mines for Vedanta refinery. Adani agrees to build a rail line in Sumatra for $1.6 billion.

Sensex Drops; Adani in $1.6 B Indonesia Project

[R]5:00 PM Mumbai – Stocks in Mumbai traded down tracking losses in Asia and world markets. Reliance Insurance said its asset under management crossed $3 billion. Orissa government may give alternate bauxite mines for Vedanta refinery. Adani agrees to build a rail line in Sumatra for $1.6 billion.[/R]

Stocks in India declined in trading after world markets dropped and pushed the benchmark index down 132 points.

The Sensex Index dropped 0.72% or 131.95 to close at 18,179.64.

Orissa state government is actively considering allocation of an alternate source of bauxite to the aluminum refinery operated by Vedanta Resources.

In a statement the company also reiterated there were no regulatory violations at the Lanjigarh Alumina refinery.

Prakash Steelage soared 23% on its first day in trading and traded as high as Rs 135.85 as against it issue price of Rs 110 per share.

Reliance Life Insurance announced that it crossed the Rs 15,000 crore mark in assets under management. The company is targeting to double its assets under management to Rs 30,000 crore by 2011-12.

“This milestone of reaching Rs 15,000 crore follows the Rs 10,000 crore mark recorded by the company in September of 2009,” the company said in a statement.

EIH Ltd, which owns the Oberoi and Trident chain of hotels, said it wants to have presence in six locations London, Paris, New York, Shanghai, Beijing and Bangkok.

Addressing a press conference after the company’s AGM in Kolkata on Tuesday, Chairman P.R.S. Oberoi said, “while our main interest is in Asia, we would like to be in key cities like New York, Paris and London.”

The Reserve Bank of India said Tuesday that growth in agriculture sector and more efficient distribution of foodgrains are necessary to control the surge in inflation.

“Repeated supply shocks pose a constant challenge to ensuring a low inflation regime in India, which is necessary for achieving inclusive high growth. A medium-term approach is required to augment the supply by addressing structural supply constraints, particularly in items of mass consumption,” RBI said in its Annual Report 2009-10.

Adani Group signed an agreement with Indonesia’s state-owned coal producer PT Tambang Batubara Bukit Asam and the provincial government of South Sumatra, to build a coal railway in the province of Sumatra, according to the Indonesian Investment Coordinating Board.

Adani, through its local unit PT Adani Global plans to invest $1.6 billion in the project, which includes building a coal terminal with an annual capacity of 50 million tons, the Board’s Chairman Gita Wirjawan said in Jakarta today. Construction of the 270 kilometer line is expected to start next year and completed by 2013.

Gainers & Losers

Atlanta Limited fell 1.6% to Rs 357.00 after the infrastructure development company said after a consortium of the company received a Rs 54.72-crore road widening contract in Orissa.

Brigade Enterprises Limited rose 1.7% to Rs 145.20 after the real estate company''s chief told the media that the company may sell shares to institutional investors early next year.

Clariant Chemicals (India) Limited plunged 5.3% to Rs 701.05 after the intermediates and colors company said board of directors of the company at its meeting August 25, approved the proposal for the sale of land at Balkum, Thane.

Edserv Softsystems Limite gained 1.3% to Rs 204.00 after the 4th generation education company said it has struck a global e-training partnership with Ottawa, Canada headquartered Corel Corporation, a global leader in graphics and productivity software.

Ind Swift Laboratories Limited increased 3.5% to Rs 118.85 after the active pharmaceutical ingredient supplier company reported board meeting August 25, to consider a fresh preferential issue of convertible warrants to the promoters group.

Jet Airways (India) Limited fell 0.3% to Rs 786.75 after the aviation company the civil aviation ministry has decided to temporarily stop granting Jet Airways any new code-share agreements with foreign carriers that are members of Star Alliance.

Jindal Poly Films Limited declined 6.4% to Rs 764.30 after the polyester and polypropylene films company said on profit taking after a recent sharp surge.

MphasiS Limited rose 0.9% to Rs 609.20 after the information technology solution provider ahead of its quarter three July results August 25.

PTC India Limited dropped 4% to Rs 118.95 after the power trading company said on profit booking after the stock rose 7.69% in the preceding two trading sessions.

Patni Computer Systems Limited increased 2.2% to Rs 539.90 after the range of information technology service provider secured a contract spread over three years to provide managed services to Scandinavia''s Codan Group.

Religare Enterprises Limited declined 4.4% to Rs 478.35 after the global financial services company said its promoters will spend Rs 857 crore to raise their stake by about 9% to 65.79%.

Shriram Transport Finance Company Ltd. decreased 4.2% to Rs 755.10 after the non-banking financial company on profit booking after the stock rose 13.8% in six trading sessions to Rs 788.70 on August 24 from a recent low of Rs 692.65 on August 16.

State Bank of Mysore fell 1.9% to Rs 1,301.60 after the bank reported board meeting August 25 to consider record date, pricing and the ratio of entitlement of a rights issue.

State Bank of India fell 0.8% to Rs 2,823.70 after the bank Chairman O.P. Bhatt said the bank has no plans to raise lending rates further in the short term.

Temptation Foods Limited fell 0.2% to Rs 41.25 after the ready-to-eat foods for the domestic and international markets company allotted 1.53 crore equity shares at Rs 36 each on a preferential basis to non-promoters.

Tata Consultancy Services Limited rose 0.2% to Rs 870.95 after the information technology contractor received an e-governance contract of Rs 150 crore from Madhya Pradesh