India Inflation Declines; Auto, Cement Sales Rise

Devan Biswas
03 Mar, 2011
New York City

Mumbai stocks edged up in a choppy trading as auto sales and two-wheelers sales rise. Bajaj Auto and Hero Honda report sharp gain in unit sales. Cement companies gained after ACC and UltraTech reported higher shipments in February. The latest wholesale price index showed a slight decline.

[R]4:40PM Mumbai – Mumbai stocks edged up in a choppy trading as auto and two-wheelers sales rise. Bajaj Auto and Hero Honda report sharp gain in unit sales. Cement companies gained after ACC and UltraTech reported higher shipments in February. The latest wholesale price index showed a slight decline.[/R]

Stocks in Mumbai traded higher in a choppy trading after inflation edged lower and service sector showed an expansion.

The Sensex index increased 0.3% or 43.26 to 18,489.76 and the Nifty index added 0.27% 13.90 to 5,536.20. Of the 30 stocks in the benchmark Sensex index, 16 declined.

The wholesale price index in India decreased 1.2% to 187.2 from 189.4 for the previous week. For the year to the week calculated on point-to-point basis inflation decreased to 14.85% compared to 15.77% for the previous week.

Service sector expanded for the 22nd month in a row according to the latest survey conducted by HSBC Markit Business Activity Index. The index in February rose 60.2 from 58.1 in January.

Crude oil inched higher in Asian trading to rise to $102.15 a barrel but closed at the session’s low to $101.54 after Reuters reported that Muammar Gaddafi and the president of the Arab League agreed to a peace plan.

Venezuelan President Hugo Chavez also offered to create a multinational mediation commission, according to 123jump.com sources in Venezuela and Trinidad.

Stock Movers

Reliance Industries declined 0.9% to Rs 980.10 and stock has been volatile in the last three sessions after the government proposed to increase Alternative Minimum Tax to 18.5% and lower corporate surcharge tax to 5% from 7.5%.

Bharat Heavy Electricals increased 3.2% after it won thermal power project order for Rs 3,220 crore.

Hero Honda Motors increased 0.5% after February sales increased 23.5% to 472,055 and Bajaj Auto increased 1% after February two-wheeler sales increased 21.7% to 320,000.

Maruti Suzuki increased 2.7% and Tata Motors increased 3.7%.

Tata Steel declined 1.8% and various media reports suggested that the steel maker increased its stake in Australia based Riversdale Mining to 27.1%from 24.2%.

UltraTech Cement increased 2% after February shipment increased 4.3% to 3.33 million tons and ACC increased 1% after it reported February shipment increased 17% to 2 million tons.