Sensex in India Drops 1.6%; Reliance, Bharti Airtel Fall

Devan Biswas
18 Feb, 2011
New York City

The benchmark Sensex index declined 1.6% after rising more than 4.5% in five days. The rally came to an abrupt halt as telecom license probe widen. Hindustan Lever led gainers in the index and telecom stocks Bharti Airtel and Reliance Communications declined.

[R]5:00 PM Mumbai – The benchmark Sensex index declined 1.6% after rising more than 4.5% in five days. The rally came to an abrupt halt as telecom license probe widen. Hindustan Lever led gainers in the index and telecom stocks Bharti Airtel and Reliance Communications declined.[/R]

Stocks in Mumbai closed lower sharply after rising for five days in a row. The stocks were in the cross currents between positive expectations of financial budget at the end of the month and widening telecom license probe.

The BSE Sensex declined 1.6% or 295.30 to close at 18,211.52 The CNX Nifty on the National Stock Exchange decreased 87.50 to close at 5,458.95.

Hindustan Lever led the gainers in the Nifty index with a rise of 1.6% followed by increase in Cipla of 0.7% and in Dr Reddy’s of 0.6%.

Anil Ambani controlled companies extended losses for the second week. Reliance Communications declined 7% to Rs 93 and Reliance Infrastructure fell 6% to Rs 113.80.

Bharti Airtel, Unitech and Idea Cellular were the other leading telecom operators on the decline.

Stock Movers

Anant Raj Industries Limited tumbled 19.7% to Rs 75.90 on a heavy trading. Volume surged seventeen times daily average on no specific news.

Albert David Limited slumped 4.9% to Rs 119.55 after the pharmaceutical company said February 10 notification of Government of India on prohibition of Human Placental Extract and its formulations for human use may affect the business.

Bank of Maharashtra soared 4.9% to Rs 59.65 after the public sector bank said the Government of India has decided to inject Rs 352 crore.

Essar Oil Limited slumped 5.3% to Rs 106.45 after the energy and telecom group chief executive Prashant Ruia was questioned by telecom regulators and special investigation branch officials.

FAG Bearings India Ltd. gained 3.4% to Rs 867.00 after the bearings maker reported third quarter net profit increased 105.2% to Rs 33.75 crore and net sales increase 21.5% to Rs 262.66 crore.

Pratibha Industries Limited rose 0.4% to Rs 58.30 after the water transmission company secured two orders aggregating Rs 297 crore.

Tata Motors declind 3.9% to Rs 1,201.95 after the stock rose more than 12% in the week.

Thomas Cook (India) Limited tumbled 8% to Rs 48.85 after the travel and financial services company fourth quarter consolidated net profit declined 39.70% to Rs 1.52 crore and net sales rose 17.10% to Rs 66.70 crore.