Stocks in India Decline, DLF Sells 9.9% Stake

123jump.com Staff
13 May, 2009
New York City

Stocks in quiet trading gyrated ahead of election results and a prospect of uncertain outcome. DLF raised 3,860 crore rupees after founders sold 10% shares to investors including Fidelity, HSBC and hedge fund manager D.E Shaw & Co.

[R]5:00 PM Mumbai – Stocks in quiet trading gyrated ahead of election results and a prospect of uncertain outcome. DLF raised 3,860 crore rupees after founders sold 10% shares to investors including Fidelity, HSBC and hedge fund manager D.E Shaw & Co.[/R]

Stocks in Mumbai were volatile on the last day of parliamentary election. The prospect of a hung election and caution on global economy drifted more investors on sidelines. DLF founders sold 10% stake in the company to a group of American investors.

The Sensex index declined 1.26% or 153.65 to 12,004.38. Of the stocks traded on BSE, 1,135 increased, 1,357 declined and 98 were unchanged. Rupee declined to 49.65 against a dollar.

Of the 30 stocks in Sensex, 23 declined and 7 increased.

DLF Founders Sell 10% Stake

DLF founder Kushal Pal Singh and his family controlled investment funds sold 9.9% stake in the real estate company to a group of investors including HSBC, Fidelity Investments and D.E Shaw & Company.

The stake sale raised 3,860 crore rupees and the founders and his family control will decline to 78.6%. The price per share appears to be near 233 rupees, near its recent market prices. In trading today, DLF increased 3.4% to 244.05 rupees.

DLF priced its public offering in June 2007 in a deal that raised record amount of 9,200 crore rupees in one of the most popular offering in the last ten years. Stock had surged as high as 1,196 in January 2008 and dropped as low as 138 rupees in February of this year.

Gainers & Losers

Infosys declined 1.4% to 1,575 rupees and Wipro declined 1.3% to 370.55 rupees.

TCS dropped 1.9% to 625.50 rupees after it was selected for five year software services contract by Volkswagen for its UK operations.

State Bank of India declined 2.6% to 1,262.15 rupees, ICICI Bank fell 1.6% to 549.65 rupees and HDFC Bank dropped 2.2% to 1,163.30 rupees.

Shriram Transport Finance Company surged 4.9% to after it reported fourth quarter net profit surged 37.5% to 153.85 crore ropes on net interest revenue increase of 29.6% to 995.29 crore rupees.

Bharti Airtel edged up 0.4% after it reported net subscribers addition of 2.8 million in April and total subscribers of 96.7 million at the end of the month.

Hindustan Unilever declined 1.5% and Lupin increased ahead of its fourth quarter earnings after the market close.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 41.88 or 0.45% to 9,340.49, Hang Seng index in Hong Kong decreased 94.02 or 0.55% closed to 17,059.62, CSI 300 index in China higher 25.44 or 0.91% closed to 2,814.00. ASX 200 index in Australia decreased 21.10 or 0.54% closed to 3,856.10. The KL Composite index in Malaysia lower 0.18 or 0.02% closed to 1,022.84.

The Kospi Index in South Korea increased 11.01 or 0.78% to close at 1,414.52. SET index in Thailand closed higher 8.17 or 1.50% to 552.71 and JSE Index in Indonesia increased 9.31 or 0.51% closed to 1,851.33. The Sensex index in India decreased 138.38 or 1.14% closed to 12,019.65.