Weak Stocks in India; Diageo, U Spirits Talk

123jump.com Staff
14 Nov, 2008
New York City

Stocks in Mumbai continue trade volatile with a downward bias. Rupee lost nearly 2.75% this week and traded near 49 rupees to a dollar. Automakers and real estate stocks fell on the weak demand. United Spirits and Diageo Plc explore partnership possibilities.

[R]10:00AM New York, 7:30PM Mumbai - Foreign institutional investors continue to sell stocks. Sensex dropped on the worries that recent fall in rupees may spark inflation and global economic slowdown may hurt exports.[/R]

Market Sentiment

Stocks in Mumbai trading fell 1.6% after a spate on negative news weighed on the market. Polling for one of the five assembly elections began in Chhattisgarh today.

Foreign institutional investors sold equities worth 811.52 rupees.

In Mumbai, the BSE 30-share Sensex fell 1.6% or 150.91 to 9,385.42, and the CNX Nifty declined 1.3% or 38.10 to 2810.35.

Of the stocks traded on the BSE, 936 rose, 1587 declined, and 78 were unchanged.

Trading Statistics

Daily turnover on BSE edged lower to 3,674 crore rupees from 3,690.41 crore rupees on Wednesday.

Foreign Investors Sell Shares

The Economic Times of India reported today that foreign institutional investors sold stocks worth 811.52 crore rupees. Institutions bought stocks worth 2,111.78 crore rupees and sold equities worth 2,923.30 crore rupees, yielding net sales 811.52 crore rupees.

Domestic institutional investors sold equities worth 25.15 crore rupees, while brokers purchased shares valued at 158.82 crore rupees for clients and retail investors.

Also proprietors and non-resident Indian entities invested in stocks worth 7.86 crore rupees and 0.56 crore rupees respectively.

Gainers & Losers

ACC dropped 8.8% to 419.15 rupees, HDFC fell 4.8% to 1560 rupees, and Jaiprakash Associates shed 5.1% to 73.20 rupees.

Ranbaxy edged up 0.3% to 215 rupees, and Tata Power rose 2.5% to 750 rupees.

Tata Motors declined 9% to 136.25 rupees on news that the company''s Lucknow plant which produces heavy commercial vehicles is likely to be shut for another week.

Other carmakers dropped as a result. Mahindra & Mahindra fell 0.7% to 340 rupees and Maruti Suzuki India lost 3.6% to 540 rupees.

Reliance Industries slipped 0.8% to 1153.10 rupees.

Metal shares fell. Sterlite Industries shed 3% to 229.90 rupees, JSW Steel declined 6% to 275 rupees, Hindustan Zinc shed 3.1% to 365 rupees, and Tata Steel slid 5.7% to 174.60 rupees.

Steel Authority of India fell 2.9% to 69.80 rupees on reports it will miss the 2010 deadline for its ambitious expansion and modernization program to increase production from 15 million tons to over 26 million tons.

Bharat Heavy Electricals shed 4.9% to 1271.80 rupees, while L&T by sales slid 5% to 786 rupees.

IT stocks fell after Intel slashed its fourth quarter guidance. Infosys shed 3.3% to 1,218.15 rupees after brokers worried that the company may miss its earnings guidance.

Satyam Computer Services declined 1% to 262.25 rupees, and Wipro dropped 2.6% to 241 rupees, Tata Consultancy Services increased 0.1% to 532 rupees.

Tech Mahindra slipped 5.3% to 297.85 rupees after it customer BT Group said it will cut 6% of its workforce by March 2009.

Realty stocks fell. Unitech slid 6.3% to 45.90 rupees, DLF declined 1.3% to 241.50 rupees and Indiabulls Real Estate fell 3.7% to 108.40 rupees.

Telecom shares advanced after NTT DoCoMo signed an agreement to acquire a 26% stake in Tata Teleservices on Wednesday. Bharti Airtel rose 3.9% to 656 rupees, Reliance Communications soared 3.3% to 223 rupees.

Defensive stocks also increased. Hindustan Unilever jumped 0.5% to 235.85 rupees, ITC edged up 0.5% to 170.90 rupees, and Dabur India climbed 0.9% to 86 rupees.

Financial stocks were however mixed on rate cut expectations. HDFC Bank dropped 0.3% to 1005 rupees, ICICI Bank fell 1% to 394 rupees and State Bank of India increased 0.4% to 1180 rupees.

Bank of India gained 1.7% to 277.50 rupees, Punjab National Bank jumped 1.4% to 471 rupees and Union Bank of India soared 1.2% to 159 rupees.