Sensex in India in 3-day Decline; SAIL Prepares Offering

Chandrasekhar Atreya
06 Jan, 2011
New York City

Stocks in Mumbai closed lower for the third day in a row as food prices show and government fail to rein prices. Steel Authority of India plans a secondary offering in February in two tranches. Suzlon wins orders to build 150 mw wind farms in four states.

[R]5:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai closed lower for the third day in a row as food prices show and government fail to rein prices. Steel Authority of India plans a secondary offering in February in two tranches. Suzlon wins orders to build 150 mw wind farms in four states.[/R]

The Sensex in India declined for the third day in a row as the latest inflation index showed a stubborn nature of inflation. The latest read showed a resurgent inflation despite the government assurances that prices will decline after better than expected monsoon rains.

The BSE Sensex lost 0.57% or 116.36 to 20,184.74 and the CNX Nifty loses 31.55 to close at 6,048.25.

Rupee gained 35 paisa to close at Rs 45.86 in Mumbai today.

Steel Authority of India Ltd expects to float the first tranche of its follow on public share offer in the second week of February, according to the company’s Chairman C.S. Verma.

The state-run company can issue additional shares worth 10% of the expanded equity base in two tranches, and the company expects to raise a total of Rs 18,000 crore rupee in both the tranches together. The company expects to file the prospectus with the regulator on January 20, said Verma in New Delhi today.

India’s food inflation accelerated for the fifth straight week to the highest in more than a year.

The food price index rose 18.32% in the year to December 25 and the fuel price index climbed 11.63% compared with 14.44% and 11.63% annual rises in the previous week.

The wholesale price index in India increased 2.0% to 193.4 from 189.7 for the previous week. For the year to the week calculated on point to point basis inflation increased to 20.20% compared to 17.24% for the previous week.

Indian Oil Corp is losing Rs 151 crore per day in revenues on selling diesel, domestic liquefied petroleum gas and kerosene below their imported costs, a company official said today.

Suzlon, India’s largest wind turbine maker secured an order worth Rs 856 crore from Vedanta Group firm Hindustan Zinc to set up wind farms in four states to generate in total 150 megawatt of power.

The project entails setting up 150 megawatt capacity in Karnataka, Maharashtra, Rajasathan and Tamil Nadu by September, besides operating and maintaining these farms, a release issued by Suzlon from Pune said today.

National Thermal Power Corporation is looking at establishing solar power projects in Maldives, in a move that would enhance the thermal power generator’s green footprint.

NTPC is conducting a feasibility study in Maldives to explore the possibility of setting up solar power projects in the island nation. The final report is expected to be ready in the next 3-4 months.