Sensex in India Drops 1%; Retail Petrol Price Hiked

Devan Biswas
16 May, 2011
New York City

Stocks in Mumbai declined on global economic growth worries ahead of European leaders meeting to provide another bailout to Greece. Commodities prices closed lower but India controlled oil companies lifted retail petrol prices.

[R]5:20 PM Mumbai – Stocks in Mumbai declined on global economic growth worries ahead of European leaders meeting to provide another bailout to Greece. Commodities prices closed lower but India controlled oil companies lifted retail petrol prices.[/R]

The Sensex index declined 1% or 186.25 to 18,345.03 and the Nifty index fell 45.75 to 5,499.

The rupee edged lower to 45.70 to a dollar and the price of ten grams of gold fell 0.2% to Rs 22,951. The price for one kilo of silver declined 1.9% to Rs 55,092.

Annual rate of inflation measured in wholesale price index decreased to 8.66% in April compared to 9.04% for a year ago. The index increased 1.3% to 150.6 from 148.6 in April. The inflation base was revised to fiscal 2004 from the base of fiscal 1993 since August.

Stock Movers

Vishal Retail increased 7.3% to Rs 32.30 after it reported net profit in the fourth quarter of Rs 10.47 crore compared to a net loss of Rs 128.92 crore.

SKS Microfinance dropped 5% to Rs 359.45 after surging nearly 40% in the last three days.

Sun TV Network declined 3.8% to Rs 394.90 after company controlled by the DMK party leader may face difficulties after the opposition party AIADMK won the state election in Tamil Nadu.

Gammon Infrastructure increased 6% to Rs 18.65 after the company said its board is scheduled to meet on May 19 to consider rights issue plan.

Automakers dropped after state controlled oil companies increased petrol prices on late Saturday by Rs 5 a liter. Mahindra & Mahindra declined 2.3% and Tata Motors dropped 1.5%. Maruti Suzuki India fell 1.3% and Ashok Leyland fell 0.9%.

Hero Honda increased 1.6% to Rs 1,824.10.



Oil companies increased after the latest price increase. Indian Oil Corp increased 1.1% and Hindustan Petroleum Corp added 0.9%. Bharat Petroleum Corp Ltd gained 1.12%.

Suzlon Energy increased 2.3% to Rs 54.10 after the wind turbines maker reported net income in fourth quarter ending in March of Rs 431.59 crore compared to a loss of Rs 188.47 crore a year ago.