Sensex in India Falls; GMR Infra Plunges

123jump.com Staff
30 Jun, 2009
New York City

Mumbai stocks fell ahead of budget announcements. Infrastructure stocks plunged after GMR shelved its plan to raise capital and Unitech was forced to sell warrants to founding investors group.

[R]6:00 PM Mumbai, 8:30 AM New York – Mumbai stocks fell ahead of budget announcements. Infrastructure stocks plunged after GMR shelved its plan to raise capital and Unitech was forced to sell warrants to founding investors group.[/R]

Stocks in Mumbai fell after GMR shelved its plan to raise as capital on weak investors demand. The infrastructure company could not attract enough investors for its reduced offering size of 500 crore rupees from 2,500 crore rupees. Unitech was forced to sell warrants to founding investor group after investors did not show interest in participating offering.

The Sensex index in India decreased 291.90 or 1.97% to 14,493.84 and CNX Nifty declined 85.10 or 2% to 4,305.85.

Of the stocks in the Sensex 30 index, 24 decreased and 6 increased.

The turnover on the BSE increased to 6,750 crore rupees from 5,212 crore rupees and on the NSE turnover increased to 18,328 crore rupees from 17,541 crore rupees.

On the BSE, 1,859 increased, 764 decreased and 71 were unchanged.

Gainers & Losers

GMR Infrastructure plunged 8.8% to 141.65 rupees after it said in a statement to the BSE that because of the market conditions it has withdrawn its stock sale plan to institutional investors. The company initially had sought 2,500 crore rupees and which was later reduced to 500 crore rupees.

Unitech declined 6.7% to 79.60 rupees after the company sold 22.75 crore rupees of convertible warrants at 50.75 rupees each to founding investor group Harsil Projects. The present stock holders will be diluted by 11.1% if all warrants were exercised.

DLF dropped 8.1% to 310.80 rupees.

Reliance Industries fell 3% to 2,023.35 rupees after the Bombay High Court approved the merger of Reliance Industries and Reliance Petroleum. The merger was approved by the boards of two companies in March and offered one Reliance Industries share for every 16 Reliance Petroleum shares.

Tata Motors dropped 14.4% to 291.15 rupees after it had lost 7.8% in yesterday’s trading. Mahindra & Mahindra fell 1.8% and Maruti Suzuki increased 0.4%.

Hindalco dropped 1.5% to 86.45 rupees after it reported annual net income declined 77.9% to 485 crore rupees.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 174.97 or 1.79% to 9,958.44, Hang Seng index in Hong Kong decreased 149.78 or 0.81% to 18,378.73, CSI 300 index in China lower 13.50 or 0.42% to 3,166.47. ASX 200 index in Australia increased 68.00 or 1.75% to 3,954.90.The KL Composite index in Malaysia closed lower 0.60 or0.06% to 1,075.24.

The Kospi Index in South Korea increased 1.62 or 0.12% to close at 1,390.07.SET index in Thailand closed lower 4.12 or 0.68% to 597.48 and JSE Index in Indonesia decreased 6.94 or 0.34% to 2,026.78. The Sensex index in India decreased 291.90 or 1.97% to 14,493.84.