Sensex in 4-day Decline; Maruti Suzuki, Mahindra, Bajaj Fall

Devan Biswas
08 Apr, 2011
New York City

Stocks in Mumbai declined for the fourth day in a row as crude oil soared and worries of inflation kept investors on the sidelines. Maruti Suzuki and Mahindra and Mahindra increased auto price as much as 2%. Hindustan Zinc production increase 29% and Tata Steel

[R]4:30 PM Mumbai – Stocks in Mumbai declined for the fourth day in a row as crude oil soared and worries of inflation kept investors on the sidelines. Maruti Suzuki and Mahindra and Mahindra increased auto price as much as 2%. Hindustan Zinc production increase 29% and Tata Steel’s India production rose 4.4%.[/R]

Stocks in Mumbai trading declined for the fourth day in a row after crude oil prices traded at $111 a barrel. Gold and silver in international markets reached 31-year high.

Stocks declined after the rising crude price stoked worries that the next interest rate hike may be 50 basis points and sales of autos may decline.

The prospect of higher oil and commodities prices have been hovering for a while but investors focused on the rebound in foreign funds and the earnings strength from large companies.

The Sensex in Mumbai declined 139.73 to 19,451.45 and Nifty index fell 43.70 to 5,842.00.

The rupee edged higher by 6 paisa to close at 44.69 and price of gold for ten grams gained to Rs 21,218.

Reserve Bank of India extended its second emergency cash lending facility for one month to May 6. The liquidity facility was opened to ease mismatch between borrowers and banks are permitted to borrow 1% of their net deposits. Banks are required to keep 24% of deposits in cash and gold government securities.

Stock Movers

Reliance Industries declined 1.5% to Rs 1,024.20 and the oil refiner has started selling its gasoline supply to the U.S. market. According to industry sources the exports increased in March to 2 million tons or 20 lakh tons from 8.5 lakh tons a year ago month.

Larsen & Toubro increased 0.8% to Rs 1,680 and the panel set up by the ministry of environment objected the location for the $2.2 billion power plant in Orissa.

Bharat Heavy Electrical increased 0.5% after the company said its order book to grow 10% in the current year ending in March 2012. The order flow increased 2.4% in the last fiscal year to Rs 60,507 crore.

Hindustan Zinc increased 3% after the parent Vedanta Resources said that the Indian unit increased zinc production by 29% and aluminum production by 7%. Iron ore production declined 21% after a statewide ban in Karnataka.

Tata Steel declined 1.2% after the company said its Indian operations increased 4% to 6.41 million tons in the latest year to March.

The company, the largest stake holder in Australia based Riversdale Mining said it has not changed its position for the takeover offer from Rio Tinto that won approval of more than 50% of shareholders.

Automakers declined on a rise in crude oil prices. Maruti Suzuki fell 2%, the third decline in a row and the company increased price of its cars between 0.2% and 2.4%. Mahindra and Mahindra declined 0.6% and the utility vehicle maker increased prices between 1.5% and 2%.