Wholesale Prices in India Fall Again, Stocks Ease in Mumbai

Mukesh Buch
16 Mar, 2015
New York City

Wholesale price index in India declined for the second month in a row on weak commodities prices and improving food distribution. Inox Wind plans to raise $111 million through a stock sale to institutional investors. L&T won a contract for $10 million from Rail Vikas Nigam Ltd.

[R]6:00 PM Mumbai – Wholesale price index in India declined for the second month in a row on weak commodities prices and improving food distribution. Inox Wind plans to raise $111 million through a stock sale to institutional investors. L&T won a contract for $10 million from Rail Vikas Nigam Ltd. Snapdeal plans to buy logistics firm GoJavas for at least ₹150 crore.[/R]

Stocks in Mumbai eased and rupee traded near its recent low and the latest wholesale inflation index showed a decline in prices.

Wholesale price index declined 2.06% in February after falling 0.39% in January, according to the government data today.

Wholesale price have fallen considerably from the peak of 6.2% last year on the sharp fall in commodities price and better food distribution. Food prices declined 0.8% and vegetable prices dropped 12% but manufactured products prices eased only 0.3%.

Rupee fell 16 paisa to 62.80 against one dollar.

The Sensex Index fell 65.59 or 0.2% to close at 28,437.71. The CNX Nifty slid 14.60 or 0.2% to 8,633.15.

Gainers & Losers

Bharat Heavy Electricals Limited advanced 1.5% to ₹258.30 after the power producer commissioned the fifth 270 megawatts thermal power project unit in Maharashtra.

Inox Wind Ltd, the wind turbine maker plans to raise $111 million in an offering to institutional investors.

Larsen & Toubro Infotech, software services provider won a contract for $10 million from Rail Vikas Nigam Ltd.

Lupin limited fell 0.8% to ₹1,863.55 after the pharmaceutical products maker signed an agreement to acquire additional 40% stake from South Africa-based Pharma Dynamics for an undisclosed amount.

In 2008, Lupin had acquired 60% stake in Pharma Dynamics.

Snapdeal], the online retailer plans to buy logistics firm GoJavas for about ₹150 crore to ₹200 crore.

Sutlej Textiles and Industries Limited jumped 3.6% to ₹350 after the synthetic staple fibres maker said its board approved to buy Birla Textile Mills in Himachal Pradesh.

Suven Life Sciences Limited soared 19.12% to ₹296.25 after the drug maker secured two product patents for new chemical entity for central nervous system therapy in the U.S. and New Zealand.