Fifth Daily Decline in Sensex; Shippers, Builders Decline

Devan Biswas
11 Apr, 2011
New York City

Mumbai stocks extended losses for the fifth day in a row as crude oil hovered near 30-month high and industrial production increased 3.6% in February. The less than expected growth in production also contributed to the weak trading sentiment.

[R]4:30 PM Mumbai – Mumbai stocks extended losses for the fifth day in a row as crude oil hovered near 30-month high and industrial production increased 3.6% in February. The less than expected growth in production also contributed to the weak trading sentiment.[/R]

The stock indexes opened lower and managed to touch flat line after one hours of trading but resumed its steady decline to close down 1%.

The Sensex in Mumbai trading declined 188.91 to 19,262.54 and Nifty index declined 56.30 to 5,785.70.

Silver surged Rs 300 to a record Rs 61,700 a kilo and gold edged lower Rs 5 to Rs 21,540 for ten grams.

Rupee was nearly flat at 45.01 to a dollar and crude oil price in London trading declined.

Industrial production index in India increased 3.6% in February and in the first eleven months the index was up 7.8% compared to a year ago.

Manufacturing index advanced 3.5% and electricity output rose 6.7% in the month.

Stock Movers

Reliance Infrastructure gained 0.8% to Rs 683 after the company launched its Rs 1,000 crore share buyback today.

JMD Telefilms increased 8.4% to Rs 20.60 after the company said it has begun to set up its retail store network to sell mobile phones and accessories.

Raj Television Network soared 16% to Rs 59.50 after the company reported fourth quarter net income of Rs 1.41 crore.

Elecon Engineering Company declined 0.7% to Rs 75 after the company won an order of Rs 23.49 crore from the cement maker UltraTech Cement.

Ingersoll-Rand (India) edged lower 3.2% to Rs 495 after the company issued a note clarifying that the U.S. based parent has no plan to buyout minority shareholders.

Shipping companies closed lower after international freight rates fell. The Baltic Dry Index dropped 1.8% to 1,376 in Friday’s trading in London.

Essar Shipping Ports & Logistics fell 5% to Rs 108.10, Great Eastern Shipping Company fell 2.5% to Rs 276.60, Mercator Lines declined 1.6% to Rs 42.50 and Shipping Corporation of India dropped 0.8% to Rs 114.25.

Shreyas Shipping & Logistics fell 3.5% to Rs 35.90 and Varun Shipping Company dropped 2.4% to Rs 30.05.

Real estate companies declined after a rally in the last two weeks of trading. Unitech declined 2.4%, Orbit Corp fell 1.8% and Peninsula Land fell 1.3%. Phoenix Mills dropped 0.8% and Indiabulls Real Estate fell 0.5%.

DB Realty increased 1.7% to Rs 112.20 after the company promoter Pramod Goenka sold 1.48% stake of 36 lakh shares between February 17 and March 30.