Lackluster Trading in Mumbai

123jump.com Staff
12 Feb, 2008
New York City

Industrial production in December declined to annual rate of 7.6% from 13.4%. the volatile index suffered from lower than expected output in mining, electricity, and manufacturing. For the nine months the index increased at a rate of 9.6% from 12.2%. Software companies fell as investors worried on the rising subprime losses in the U.S. New issue of J Kumar Infraprojects closed at 102.70 rupees, just above its offer price of 100 rupees.

[R]10:00AM New York, 7:30PM Mumbai – December industrial production index declined to 7.6% from 13.4% in the year ago period.[/R]

Market Sentiment

India markets ended weak for the second day in a row with the 30-share BSE Sensex declining 0.1% or 22.90 at 16,608.01 and broader index CNX Nifty fell 0.4% or 18.75 at 4,838.25.

Buying was evident in banking and oil & gas stocks. Technology stocks dropped.

Of the Sensex share, 22 stocks fell while the remainder advanced. On the BSE traded stocks 443 advanced 2,237 declined, and 32 stocks remained unchanged.

Daily turnover on the BSE was 5,276 crore while turnover on the National Stock Exchange was at 13,801 crore rupees.

Reliance companies dominated the most active lists. Reliance Power was the most active stock with the highest turnover of 821.72 crore rupees on BSE. Reliance Capital, Reliance Natural Resources, Reliance Energy and Reliance Industries were also active.

Economic News

Dismal performance by manufacturing, mining and electricity sectors has pushed down the industrial growth rate to 7.6% in December 2007 from 13.4% in the corresponding month in 2006, government statistics show.

The index of industrial production in December declined on account of the manufacturing sector growth rate, which decelerated to 8.4% cent from 14.5% in the corresponding period last financial year, showed the quick estimates of IIP released on Tuesday.

The mining and electricity sectors too performed poorly during the month, recording growth rates of 3.5% and 3.8% respectively as compared to 6.1% and 9.1% in December 2006.

The cumulative industrial growth rate (April-December 2007) also declined to 9% from 11.2%. The nine-month growth rate for manufacturing sector declined to 9.6% from 12.2%.

The growth rates for mining and electricity sectors worked out to be 4.9% and 6.6% respectively, compared to 4.4% and 7.5% during the corresponding period of 2006-07

Gainers and Decliners

Larsen & Toubro fell 1.3% to 3,269.05 rupees.

TCS slipped 4.3% to 864.8 rupees, Mahindra & Mahindra shed 3.0% to 579.05 rupees, , ACC fell 2.6% to 718.25 rupees, and Tata Steel declined 2.2% to 710.45 rupees.

Ranbaxy Laboratories gained 1.2% to 370.25 rupees, Bharti Airtel rose 0.8% to 855.8 rupees and State Bank of India surged 0.6% to 2,057.4 rupees.

ICICI Bank rose 2.7% to 1,063.75 rupees, Axis Bank jumped 6.6% to 989.8 rupees, Kotak Mahindra Bank jumped 2.5% to 818.55 rupees, Andhra Bank gained 2.3% to 86.05 rupees.

TCS fell 4.3% to 864.8 rupees, HCL Technologies shed 2.5% to 249.25 rupees, Satyam Computer declined 0.7% to 420.9 rupees, Infosys Technologies fell 0.9% to 1,545.4 rupees and Wipro fell 0.4% to 421.8 rupees.

Debutant J Kumar Infraprojects settled at 102.70 on the BSE, a discount of 6.6% over IPO price of 110 rupees. The stock was listed at 100 rupees on the BSE, a discount of 9.1% from the initial offer price.

Reliance Update

Reliance Power fell 4.8% to 354.55 rupees on volume of 2.30 crore shares on BSE. On Monday the stock had debuted at 547.8 rupees, a premium of 21.7% over the IPO price of 450 rupees.

Reliance Industries rose 2.2% to 2324.15 rupees, Reliance Communication declined 2.5% to 575.7 rupees and Reliance Energy slid 2.9% to 1535.75 rupees.