Production, Inflation in India Decline

123jump.com Staff
12 Feb, 2009
New York City

In Mumbai trading stocks declined after industrial production fell. The index for production fell 2% in December from a year ago and is likely to remain weak for January month as well. The annualized measure of inflation at the end of January declined to 4.4% from 5.07% a week ago period.

[R]10:00AM New York, 7:30 PM Mumbai - Industrial production in India falls 2% in December and inflation declines to 4.4% in the week to January 31.[/R]

Stocks in India dropped 1.6% after the government reported that the country’s industrial production dropped 2% in December from a year ago.

In Mumbai, the BSE 30-share Sensex index fell 1.6% or 152.71 to 9,465.83, and the CNX Nifty shed 1.1% or 32.65 to 2,893.05.

Of the stocks traded on BSE, 1,307 rose, 1,108 declined, and 106 remained unchanged.

Trading Statistics

Daily turnover on the BSE declined to 3,199 crore rupees from 3,280.70 crore rupees yesterday.

Inflation Drops to 4.39% in the Week to January 31

India’s inflation declined to 4.39% in the week ended January 31 from 5.07% in the same period a year ago. Government slashed retail fuel prices up to 11% in the last week of January.

Mini Budget to Give Tax Breaks to Housing

Economic Times of India reported today that the country’s finance minister Pranab Mukherjee may include targeted tax incentives, especially for the housing sector, when he announces his mini-budget on Monday.

The government is expected to increase the deduction allowed for payments on housing loans.

According to the report, tax deduction on interest payments on housing loans may be raised from 1.5 lakh rupees to 2 lakh rupees.

Industrial Production Falls 0.2% in December

The Central Statistical Organisation of the Ministry of Statistics and Program Implementation said the index of industrial production fell 2% to 279.1 in December from the comparable period a year ago.

Cumulative growth in the nine months to December in the current fiscal year was 3.2% increase form a year ago period.

Indices of industrial production for mining rose 1% to 186, manufacturing dropped 2.5% to 298.6 and electricity advanced 1.6% to 223.1.

Seven of the seventeen industry groups rose in December from the comparable year ago period. Other manufacturing industries rose 21.7%, beverages, tobacco and related products gained 9%, and metal products and parts edged up 7.6%.

The indices measuring basic goods rose 1.7% but capital goods dropped 8.5%.

Gainers & Losers

Jaiprakash Associates fell 4.8%, Bharti Airtel dropped 4.2%, and Bhel shed 3.2%.

Reliance Infrastructure increased 1.3%, Sun Pharma rose 0.5%, and Hindalco advanced 0.1%.

Automakers rose on expectations government might lower excise duty on big cars with engine capabilities of 1200 cc from 20% to 16%. Mahindra & Mahindra rose 7% to 300.20 rupees, Tata Motors increased 0.8% to 137.05, rupees, Hindustan Motors gained 3.2% and Hero Honda jumped 1.6%.

Realty stocks gained. DLF advanced 2.5% to 154.60 rupees, Anant Raj Industries soared 5%, Akruti City advanced 4.9% and Ansal Infrastructure increased 2.9%.

Reliance Industries declined 2.6% to 1,347.50 rupees.

ONGC shed 2% to 693.10 rupees after it slashed its profit forecast by 35% for the year ending March 2010.

State oil marketing companies dropped as crude oil prices declined $1.6 to $35.9 per barrel. HPCL lost 0.5%, BPCL plunged 0.89% and IOC dropped 0.8%.

Financial stocks fell. HDFC Bank declined 0.3% to 931rupees and ICICI Bank fell 3.4% to 420.50 rupees.

IT stocks declined on worries the U.S. financial rescue plan will not be sufficient to forestall a deepening economic decline. TCS fell 1.9% to 508 rupees, Infosys Technologies dropped 3.3% to 1,259.60 rupees and HCL Technologies dipped 0.9% to 114.20 rupees.

Wipro rose 0.4% to 222.80 rupees. Hexaware Technologies gained 58.5% to 31.85 rupees.

HOV Services gained 5.2% to 29.55 rupees, Helios & Matheson rose 19.9% to 27.15 rupees, KPIT Cummins 6.4% to 21.65 rupees, Aztec Software increased 5.6% to 31.30 rupees, Jetking Infotrain soared 6.9% to 112 rupees and Sonata Software gained 9.8% to 17.90 rupees.