Sensex in India Decline on Inflation Worries

Devan Biswas
28 Apr, 2011
New York City

Stocks in Mumbai closed down after weekly inflation accelerated and precious metals prices soared. The rupee advanced and resource linked stocks edged lower. LIC Housing quarterly net surged 47%. Bank of Baroda quarterly net soared 43%.

[R]5:00 PM Mumbai – Stocks in Mumbai closed down after weekly inflation accelerated and precious metals prices soared. The rupee advanced and resource linked stocks edged lower. LIC Housing quarterly net surged 47%. Bank of Baroda quarterly net soared 43%.[/R]

Stocks in Mumbai trading opened higher but began the decline after the release latest inflation data. Crude oil added and prices of precious metals resumed their gains with silver surging 3% and gold adding 1%.

The Sensex declined 156.67 or 0.7% to 19,292.02 and the Nifty index declined 48.45 to 5,785.45.

The rupee edged up 10 paisa to close at Rs 44.86 and gold price for ten grams closed up 1% to Rs 23,251. Silver price for one kilo increased 3.7% to Rs 73,441.

The recent increase in precious metals prices is driven by sustained domestic demand and rising demand in China and in the Middle East and also long term weakness in the dollar.

The wholesale price index increased 0.1 to 191.1 from 190.9 for the previous week. For the year to the week, inflation increased to 12.08% compared to 11.96% in the previous period.

Stock Movers

Kesoram Industries declined 5.1% to Rs 216 after the company reported net loss of Rs 197.98 crore in the fourth quarter compared to net income of Rs 26.09 crore a year ago.

Sona Koyo Steering Systems increased 2.5% to Rs 18.05 after the company reported net profit in the latest year increased 163.3% to Rs 44.63 crore after sales increased 41.1% surge in sales to Rs 1,203.37 crore.

Alfa Laval (India) increased 1% to Rs 1,737.07 after the company reported quarterly net increased 52.1% to Rs 37.79 core on sales rise of 54.1% to Rs 292.32 crore.

Vijaya Bank declined 3.6% to Rs 87.65 after net profit dropped 58% to Rs 54.23 crore on sales increase fo 16% to Rs 1,751.55 crore.

Bank of Baroda declined 3.3% to Rs 957.75 after the bank reported quarterly net increased 42.8% to Rs 1,294.35 and operating income soared 37.8% to Rs 7,168.65 crore.

LIC Housing Finance increased 0.7% to Rs 229.55 after quarterly net profit surged 47.4% to Rs 314.77 crore on sales increase of 40.7% to Rs 1,354.29 crore.

United Breweries increased 2.5% to Rs 477.05 after net profit surged 53.3% to Rs 40.09 crore on sales increase of 46.5% to Rs 839.59 crore in the latest quarter to March.

Orient Paper & Industries soared 4.1% to Rs 60.05 after net profit soared 41.3% to Rs 77.47 crore on sales increase of 27% to Rs 696.05 crore in the quarter to March.