Inflation Worries Halt India Rally; NTPC Net Up 24%

Devan Biswas
06 Apr, 2011
New York City

Trading sentiment in Mumbai turned sour after stocks gained nine of last twelve trading sessions. Inflation worries stoked the speculation of another rate hike on a rate decision meeting on May 3. Talwalkars plans to open 100 health clubs at a cost of $20 million. NTPC fourth quarter net soared 24%.

[R]4:15 PM Mumbai – Trading sentiment in Mumbai turned sour after stocks gained nine of last twelve trading sessions. Inflation worries stoked the speculation of another rate hike on a rate decision meeting on May 3. Talwalkars plans to open 100 health clubs in the current year at a cost of $20 million. NTPC fourth quarter net increased 24%.[/R]

Stocks in Mumbai traded lower as crude oil reached a new 30-month high and gold and silver traded at a new high in three decades. The rising crude prices raised concern that elevated inflation will persist longer than expected forcing yet another rate hike.

The Sensex index declined 74.62 and Nifty index dropped 18.30 to 5,891.75.

The rupee declined 12 cents to 44.93 to a dollar and gold edged lower to Rs 20,736 for ten grams.

Reserve Bank deputy governor Subir Gokarn said yesterday that inflation remains high despite eight increases in interest rates and the central bank “could not afford to be slack on inflation.”

Stock Movers

ASM Technologies increased 9% to Rs78.85 after the company acquired U.S. based Abacus Business Solutions, Inc.

DQ Entertainment soared 5% to Rs 67 after the animation developer signed a co-production agreement with France based Method Animation for a new 3D series Robin Hood – Mischief in Sherwood.

Talwalkars Better Value Fitness increased 6.6% to Rs 242 after the company’ chief finance officer in an interview said that the company plans to open 65 health clubs in the year at a cost of Rs 100 crore.

Steel Strips Wheels increased 0.9% to Rs 329 after the company won an order to sell wheel rims to Volkswagen plants in Germany and Argentina.

Four Soft increased 15% to Rs 19.31 after the company won a warehouse management software contract from a Japan based logistics company Vantec Corp.

Elecon Engineering Company increased 3.9% to Rs 75.30 after it won a conveyor based material handling order from NMDC for Rs 176.49 crore.

ABM Knowledgeware soared 9% to Rs 76.20 after the companies won a e-governance contract from Mumbai Municipal Corporation for Rs 63.32 crore.

State Bank of Mysore increased 2.4% to Rs 681.50 and the regional bank increased its lending rate to 13% and base interest rate to 9%.

NTPC increased 1.1% to Rs 190 after the power generator said net profit in the fourth quarter increased 24.2% to 2,505 crore and sales increased 17.7% to Rs 14,488 crore.