Sensex Declines Again; HCL Tech Net Surges 34%

Chandrasekhar Atreya
19 Jan, 2011
New York City

Sensex index in Mumbai ended below 19,000 as stocks in technology, oil and gas sectors declined. HCL Technologies reported third quarter profit increased 34.2%. Gail Ltd plans to raise $800 million or 50% of its 2011 capex through a public issue.

[R]5:00 PM Mumbai, 8:30 AM New York – Sensex index in Mumbai ended below 19,000 as stocks in technology, oil and gas sectors declined. HCL Technologies reported third quarter profit increased 34.2%. Gail Ltd plans to raise $800 million or 50% of its 2011 capex through a public issue.[/R]

The BSE Sensex lost 0.60% or 113.73 to close at 18,978.32. The CNX Nifty closed down 33.00 to 5,691.05.

The rupee closed at Rs 46.06 per dollar in Mumbai today.

The government of India plans to allow public sector banks to exit from regional rural banks they sponsored if they are not keen on investing more capital into these dedicated lenders.

The suggestion to allow public sector banks to move out of RRBs was discussed by a panel of experts, set up and chaired by a deputy governor of the central bank, to suggest measures to strengthen the rural banks.

The industry ministry has proposed a change in the foreign direct investment policy that will give companies flexibility in pricing of convertible instruments to raise funds overseas.

According to the current policy, the price at which the convertible instrument are to traded for equity shares should be locked at the time of issue. In a letter to the Reserve Bank of India and the Finance Ministry, the Department of Industrial Policy and Promotion said that the current rule denies the issuer the benefit of getting a better conversion terms if the business does well.

The Planning Commission said today that states will have to bear the additional burden if the minimum wages notified by them are higher than that fixed by the central government for work under the employment guarantee act.

“In the case of rich states that can afford very high minimum wages, the central government reimbursement will be limited,” Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters in New Delhi today.

HCL Technologies, an Indian software exporter, reported today a 34.2% jump in net income to Rs 399.70 crore for the quarter ended December 31, 2010.

The company posted a net income of Rs 297.7 crore in the third quarter ending in December. The combined revenue of the company rose 27.8% to 3,888.4 crore in the quarter to December from Rs 3,041.4 crore in the year ago quarter, the statement added.

India’s automobile industry paid 54% higher excise duty in the first half of the current fiscal year as auto sales peaked on buoyant economy fuelling customer demand.

The industry, which grew 31% in the first half, contributed Rs 11,901 crore as excise duty as compared with Rs 7,684 crore paid in the first half of the last fiscal year.

Gail India Ltd, India’s largest gas transporter, plans to raise Rs 3,500 crore from the market as part of its Rs 7,000 crore capital expenditure target in the next financial year. The company has plans to add 1,500 kilometers of pipelines by next year that would raise its gas transmission capacity to 230 million standard cubic meters per day from the current 180 mmscmd.

“The company has several borrowing options. Balance Rs 3,500 crore will be from internal accruals,” Gail Chairman and Managing Director B.C. Tripathi told reporters while announcing the company’s third quarter results in New Delhi on Tuesday.