Weak Rupee, India Inflation Near Peak

123jump.com Staff
25 Sep, 2008
New York City

Stocks in India fell after financial markets in the region declined. Financials, realty, software exporters and industrials fell. Inflation at the end of last week stabilized but hovered near its peak level. Rupee traded volatile and hovered near 46 rupee to a dollar.

[R]10:00AM New York, 7:30 Mumbai – The inflation measure stabilized but remain at peak level. Financials, realty and steel companies declined.[/R]

Market Sentiment

In Mumbai, the BSE 30-share Sensex fell 1.06% or 145.34 to 13,547.18, and CNX Nifty shed 1.22% or 50.70 to 4110.55.

Of the stocks traded on the BSE, 899 rose, 1,688 declined and 78 remained unchanged.

Trading Statistics

Daily turnover on BSE stood at 5,054 crore rupees compared with 4,319.28 crore rupees yesterday.

India’s Wholesale Inflation At 12.14%

The Wholesale Price Index remained unchanged from last week’s rise at 12.14% in the year to September 13. Analysts had forecasted that the rate would be at 12.13%.

Also, annual inflation for the week ended July 19 was revised from 11.98% to 12.54%.

Gainers & Losers

Stocks in India and Asia dropped after the U.S. bailout plan of $700 billion appear to be caught up in a resistance from lawmakers. Several of them expressed the views that the Bush administration is rushing the bailout plan without a proper debate and the bailout plan will not reach the ultimate homeowners and not prevent the U.S. sliding into a recession. In addition, stocks also fell on the expiry of the September 2008 derivative contracts.

Technology stocks fell on worries over the health of the global economy. Wipro fell 4.81% to 352.90 rupees, TCS slid 3.26% to 690.20 rupees, Satyam Computer tumbled 1.75% to 328.05 rupees and Infosys Technologies plunged 1.23% to 1,504.95 rupees.

Realty stocks also fell. Indiabulls Real Estate dropped 5.17% to198.05 rupees, Unitech declined 0.54% to 120.75 rupees and DLF dipped 2.81% to 389 rupees.

Financial stocks were mixed. ICICI Bank fell 0.69% to 596 rupees, Canara bank tumbled 4.10% to 199.05 rupees, Yes Bank climbed down 3.30% to 127.45 rupees and State Bank of India declined 1.63% to 1493.80 rupees. HDFC Bank soared 1.28% to 1298.30 rupees, Axis Bank jumped 1.51% to 721.25 rupees and Indian Overseas Bank climbed 3.66% to 106.25 rupees.

Automakers rose. Honda Motors rose 2.07% to 861.95 rupees, TVS Motor Company increased 1.54% to 32.95 rupees and Maruti Suzuki gained 0.38% to 703.50 rupees. Tata Motors however slumped 1.03% to 383.95 rupees.

Ranbaxy Laboratories dropped 4.70% to 296.20 rupees.

Tata Steel tumbled 0.13% to 485.05 rupees and Hindalco Industries fell 4% to 104.50 rupees. Sterlite Industries plunged 2.13% to 477.15 rupees after reporting yesterday that it has shelved its restructuring plan. Steel pipe maker Man Industries spiked 10.26% to 61.80 rupees after the company reported that it received orders worth 1,100 crore rupees in the present quarter for spirally-welded pipes. The company has a total backlog of 1,500 crore rupees.

Golden Tobacco gained 8.57% to 138.65 rupees after the company reported yesterday that the board has approved the restructure program and spin-off the tobacco and real estate businesses into two separate entities.

Suzlon Energy declined 7.17% to 182 rupees on news the company’s board will consider a right issue to raise 1,800 crore rupees on Saturday this week.

Reliance Industries slid 1.10% to 2,025 rupees.