Industrial Production, Inflation Up

123jump.com Staff
11 Apr, 2008
New York City

Industrial production in India in February increased 8.6% after revised production in January gained 5.8%. The better than expected production data overshadowed the rise in inflation at the end of March. Wholesale inflation increased 7.4% for a year ending in the last week in March, forced the government to remove export incentives for sugar, rice and steel. Sensex edged higher by 0.7% or 112 to 15,807 and CNX Nifty added 0.95% to 4,777.80.

[R]10.00 New York, 7.30PM, Mumbai – A better than expected industrial production in February lifted stocks despite a rise in inflation at the end of March.[/R]

Market Sentiment

Indian markets rose marginally on Friday after the release of better than expected industrial production data and 3-year record high inflation data.

In Mumbai trading, Sensex rose 0.72% or 112.54 at 15,807.64. On the National Stock Exchange CNX Nifty gained 0.95% to 4,777.80.

Of the stocks traded on BSE 1,637 shares gained 1,050 stocks declined and 62 stocks remained unchanged.

Bharat Heavy Electricals and Larsen & Toubro led the gainers in the Sensex index while Ambuja Cements and Infosys led the decliners in the Sensex index.
Industrial production rises, inflation soars

Industrial output gained 8.6% in February from a year earlier, up from revised January gain of 5.8%.

India''s annual rate of inflation rose to a three months high of 7.41%, spurred by higher food and commodities prices, prompting government to withdraw benefits on primary steel, rice and sugar exports to curb inflation.

The annualized wholesale inflation rose to 7.41% at the end of March. In the previous week the annualized inflation was 7%.

The inflation rate has more than doubled from 3.11% per cent on November 3, last year, mainly on account of rising prices of fruits and vegetables, pulses, cereals, condiments and spices and manufactured items.

Market movers

Daily turnover on the BSE stood at 5,556 crore rupees.

Reliance Industries was the most active stock on the BSE with the highest turnover of 361.20 crore rupees followed by Reliance Petroleum,, Orchid Chemicals &
Pharmaceuticals, Reliance Capital and Larsen & Toubro.

Technology stocks traded mixed in all sessions. Power, capital goods and banking stocks rose.

Gainers and Decliners

Infosys declined 2.1% to 1,422.45 rupees, Tata Consultancy Services gained 0.8% to 908.15 rupees and Satyam Computer Services surged 2.3% to 433.20 rupees.

ICICI Bank declined 1.6% to788.45 rupees, State Bank of India gained 1,667.90 rupees. Larsen & Toubro gained 3.6% to 2,774 rupees, Bharat Heavy Electricals rose 3.7% to 1,830 rupees and Suzlon Energy gained 0.2% to 290.35 rupees.

Tata Power Company advanced 4% to 1,247.05 rupees and NTPC gained 0.3% to 186.50 rupees.

Gail India gained 4.2% to 445 rupees and Hindalco Industries surged 1.7% to 176.35 rupees.

Bharti Airtel surged 0.7% to 804.20 rupees and Mahindra & Mahindra gained 1.3% to 620.25 rupees.

Reliance Update

Of the BSE share, Reliance Industries gained 3.3% at 2,550.05 rupees on news reports that the country''s largest oil refiner is in talks with several oil companies to sell up to 10% in its deep-water D6 block off India''s east coast.

Reliance Power gained 0.8% to 361.35 rupees and Reliance Petroleum rose 3.7% to 181.95 rupees.

Reliance Energy rose 2.2% to 1,281.15 rupee. The company on Thursday announced that it has spent about a third of the 800 crore rupees allocated for buying back shares from the stock market.

Reliance Communications gained 1.8% to 493.25 rupees.