Sensex in India Falls 0.6%; Hero Honda Sales Up 15%

Devan Biswas
02 Jun, 2011
New York City

Stocks in Mumbai trading closed lower following a weakness in Asian markers. The global economic slowdown worries dragged Asian markets between 1.2% and 2.3%. In addition, the latest read on wholesale inflation did not show any significant improvements.

[R]5:30 PM Mumbai – Stocks in Mumbai trading closed lower following a weakness in Asian markers. The global economic slowdown worries dragged Asian markets between 1.2% and 2.3%. In addition, the latest read on wholesale inflation did not show any significant improvements. Hero Honda and Bajaj Auto unit sales in May gained more than 15%.[/R]

Stocks in Mumbai trading declined following a weakness in Asian markets after indexes in New York fell sharply in the overnight trading. Also, the latest read on wholesale inflation in India did not show significant improvement.

The decline of more than 2.2% in the Dow Jones Industrial Average knocked off markets in Japan, Shanghai, Hong Kong Korea and Australia between 1.2% and 2.3%.

Global markets were on the edge after China, India, UK and US reported weak or weakening economic reports. The rising worries stemming from the global economic slowdown overshadowed the ongoing market jitters arising from the euro-zone debt worries.

The Sensex index decreased 0.6% 114.63 to 18,494.18 and the Nifty index fell 0.7% 41.65 to 5,550.35.

Crude oil price declined 0.3% to Rs 4,779 a barrel. The price of ten grams gold declined 0.5% to Rs 23,250 and the price of one kilo of silver fell 2.5% to Rs 58,270.

The rupee edged lower 10 paisa to 45.45 against one dollar.

The wholesale price index in India decreased 0.4% to 191.7 from 192.4 for the previous week. For the year to the week inflation decreased to 10.87% compared to 11.60% in the previous period.

Stock Movers

Six companies controlled by Anil Dhirubhai Ambani Group between 3% and 7% after media reports suggested that the Central Bureau of Investigation trial court may pass a ruling to investigate Anil Ambani.

Reliance Mediaworks dropped 7%, Reliance Communications fell 5% and Reliance Infrastructure declined 5.3%. Reliance Power and Reliance Capital fell more than 3%.

Separately, Tata Teleservices soared 7% to Rs 17.45 after the company was cleared by the CBI from any wrong doing in the 2G spectrum licensing process.

Hero Honda increased 1% to Rs 1,880 after unit sales in May increased 14.7% to 500,234.

Bajaj Auto increased a fraction to Rs 1,338 after unit sales in May increased 20% from a year ago to 358,000.