Sensex 3-day Rally in India; Elevated Wholesale Inflation

Devan Biswas
24 Mar, 2011
New York City

Stocks in Mumbai traded higher for the third day despite the latest read on inflation showed an increase and crude oil price surged for the fifth week in a row. Investors are factoring higher earnings from banks, infrastructure and software exporters.

[R]6:00 PM Mumbai – Stocks in Mumbai traded higher for the third day despite the latest read on inflation showed an increase and crude oil price surged for the fifth week in a row. Investors are factoring higher earnings from banks, infrastructure and software exporters.[/R]

The wholesale price index in India increased 1.0% to 188.0 from 186.1 for the previous week.

For the year to the week calculated on point-to-point basis inflation increased to 13.53% compared to 12.31% for the previous week.

The Sensex index increased 144.58 to 18,350.74 and the Nifty index added 42.15 to 5,522.40.

Of the 30 stocks in the Sensex index, 24 increased and 6 declined.

The rupee declined to Rs 45.66 and the price of ten grams for gold increased to Rs 20,848.

Stock Movers

Reliance Industries declined 0.1% to Rs 1,011.55 and Gas Authority India Ltd declined 1.6% and the company said it plans to distribute 118.2 million cubic metes a day in the next financial year.

Ispat Industries increased 2.5% to Rs 22.35 and JSW Steel increased its offer price for the company to Rs 22.25 a share form Rs 20.54 a share for the 20% stake in the company.

Banks extended gains for the third day this week. ICICI increased 1.2% and HDFC Bank added 1.4%.

State Bank of India added 0.05% after the Parliament approved the bill that will expand its capital base and facilitate the merger with its subsidiaries.

Bharat Heavy Electricals increased 2.7% and extended two day gains to 5.2% after the company won in a consortium with ABB an order from Power Grid.

NTPC increased 0.3% after the company commissioned its unit 6 of 500 megawatt of Farakka Super Thermal Power Station on March 23.

Auto makers closed mixed. Mahindra & Mahindra increased 3% after it said it will expand capacity at its tractor plant in Andhra Pradesh.

Maruti Suzuki decreased 0.7% to Rs 1,167.80 on the news that Japanese parts makers are struggling to restart production.