Sensex in India Fall 0.8%; Reliance, Fertilizer Makers Rise

Devan Biswas
22 Feb, 2011
New York City

Stocks in Mumbai declined tracking losses in Asia after crude oil prices surged more than 5%. Libya gained center stage as popular unrest threatens Col Muammar Gaddafi

[R]5:30 PM Mumbai – Stocks in Mumbai declined tracking losses in Asia after crude oil prices surged more than 5%. Libya gained center stage as popular unrest threatens Col Muammar Gaddafi’s hold on power. The deal between Reliance Industries and BP Plc lifted fertilizer stocks. Airlines and automakers declined.[/R]

Stocks in Mumbai declined and crude oil futures surged as tensions flare up in the Middle East and North Africa. Reliance Industries Limited rose 3% after it agreed to sell 30% stake in oil fields to BP Plc.

Foreign oil companies have begun to evacuate its non-essential staff from Libya as Col. Muammar Gaddafi’s grip on power is weakening and people take control of Benghazi, second largest city in Libya.

Crude oil futures surged $5.22 a barrel to close at $90.22 and the yen traded at 82.88 to a dollar.

The benchmark index Sensex declined 0.8% or 142.15 to 18,296.16 and Nifty index fell 49.40 at close.

Rupee closed higher to 45.38 to a dollar and gold price rose Rs to 20,737.00.

Ranbaxy Laboratories controlled by Japan based Daiichi Sankyo said net profit for the year ended December surged five-fold to Rs 1,497 crore from Rs 295 crore.

Stock Movers

Reliance Industries Ltd rose 3% after it agreed to sell 30% stake in oil fields for $7.2 billion and additional payment of $1.8 billion based on field performance. The news lifted the stock the most in nearly three months.

Fertilizers makers rose after the deal between Reliance and BP. Gujarat Fertilizers and Chemicals and Mangalore Chemicals and Fertilizers and Nagarjuna Fertilizers rose more than 1%.

Airlines declined after crude oil futures surged more than 5%. Jet Airways, Kingfisher Airlines and SpiceJet fell between 4% and 7%.

Hero Honda declined 2.8% to Rs 1,399 on the worries that excise duty may be increased on automobiles in the budget expected to be released at the end of this month.

Mahindra Mahindra declined 2.9% to Rs 632 and Maruti Suzuki fell 2.9% to Rs 1,177.20. Tata Motors fell 2% and Ashok Leyland declined 0.8%.