Sensex in India Drifts 1% Lower; Reliance Industries Drops 1.7%

Devan Biswas
03 Jun, 2011
New York City

Stocks in Mumbai trading closed lower on the rising commodities prices and persistent inflation worries. Reliance Industries plans to be debt free at the end of the current fiscal year. Reliance Industries stock fell 1.7% on the natural gas output worries.

[R]5:00 PM Mumbai – Stocks in Mumbai trading closed lower on the rising commodities prices and persistent inflation worries. Reliance Industries plans to be debt free at the end of the current fiscal year. Reliance Industries stock fell 1.7% on the natural gas output worries.[/R]

Stocks in Mumbai trading reversed the uptrend in the afternoon and drifted lower to close at the low of the day.

The market leader Reliance Industries Ltd declined after the annual general meeting did not shed any light on the prospect of higher natural gas output.

The Sensex index decreased 117.70 to 18,376.48 and the Nifty index fell 33.60 to 5,516.75.

Crude oil price declined 1% to Rs 4,702 a barrel. The price of ten grams gold added 0.3% to Rs 23,050 and the price of one kilo of silver fell 2.5% to Rs 55,797.

The rupee edged lower 10 paisa to 45.25 against one dollar.

Stock Movers

Reliance Industries declined 1.6% to Rs 936.75 after Chairman Mukesh Ambani at the company’s 37th annual general meeting did not shed any light on the natural gas out challenges faced by the company.

The gas output has declined 15% to 52 million cubic meters.

The company also plans to increase investment in broadband, wholesale markets and its partnership with BP Plc.

Chairman Ambani said that the company is expected to be debt free at the end of the current financial year.

Tata Motors fell 2.5% to Rs 1,023 after the auto and truck maker reported weaker than anticipated domestic sales.

Maxwell Industries soared 8.3% to Rs 21.50 ahead of the board meeting tomorrow that may lead to spin off of the spinning business.

Monsanto India declined 4.7% to Rs 1,940 after the company denied rumors that it plans to delist the stock.