Fifth Monthly Decline in Wholesale Prices in India

Mukesh Buch
15 Apr, 2015
New York City

Wholesale prices in India declined for the fifth month in a row in March on lower food prices and weakening global oil prices. ACC net in the first-quarter plunged 41%.

[R]6:00 PM Mumbai – Wholesale prices in India declined for the fifth month in a row in March on lower food prices and weakening global oil prices. ACC net in the first-quarter plunged 41%.[/R]

Stocks in Mumbai traded lower after investors worried of stretched valuation and the latest read on wholesale inflation showed a decline for the fifth month in a row.

Wholesale prices fell largely on the weak food prices, lower manufacturing costs and slumping oil prices in international markets.

Wholesale price index declined 2.33% in March from the 2.06% fall in February and 6% from a year ago month, Ministry of Commerce & Industry said today.

The department added index in March increased 0.2% to 176.1 from 175.8 for the previous month level.

Rupee strengthened 12 paisa to 62.39 against one dollar.

The Sensex Index slipped 244.75 or 0.8% to close at 28,799.69. The CNX Nifty fell 83.80 or 0.9% to 8,750.20.

Gainers & Losers

8K Miles Software Services climbed 9.4% to ₹770 after net income in the fourth-quarter jumped 16.52% to ₹6.27 crore.

Total revenues in the quarter climbed 23.53% to ₹42.59 crore.

ACC Limited rose 1% to ₹1,612.25 after the cement producer said net in the first-quarter plunged 40.84% to ₹236.54 crore.

Net revenues fell 0.65% to ₹3,140.31 crore.

Asian Oilfield Services Ltd soared 9.9% to ₹39.15 after the oil and gas explorer’s Dubai-based subsidiary secured a contract worth $10 million.

Bharti Airtel Limited slipped 2.3% to ₹414.60 and the largest wireless service provider said that the online retailer Flipkart ended talks with the company to join its new marketing platform for mobile applications.

The decision by Flipkart to back away from the Airtel platform was partly driven by the widespread negative comments on social media.

Deepak Fertilisers and Petrochemicals Corporation Limited rose 0.3% to ₹148.25 after the industrial chemicals and fertilizers producer sold its 12.07% stake in Karnataka-based Mangalore Chemicals and Fertilizers Ltd. to Zuari Fertilisers and Chemicals Ltd.

Tata Motors declined 2.8% to ₹540.30 after the automaker reported JLR segment sales of 6% in March were lower than expected.

Jaguar unit sales volume declined 20% from a year ago month largely on the weakness in China but Land Rover sales soared 13%.

TV18 Broadcast Limited climbed 8.8% to ₹39.40 after the news channels operator said net income in the fourth-quarter surged 165.93% to ₹95.47 crore.

Net revenues in the quarter climbed 15.06% to ₹658.48 crore.