Rainfall Worries Persist in India Trading

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

Stocks in Mumbai closed lower as markets in Asia fell. The uncertainty related to monsoon rains dragged auto and consumer stocks. IT services stocks rallied for the second day in a row on better than expected outlook from Infosys. Rupee closed at 49.14 to a dollar.

[R]5:00 PM Mumbai, 7:30 AM New York – Stocks in Mumbai closed lower as markets in Asia fell. The uncertainty related to monsoon rains dragged auto and consumer stocks. IT services stocks rallied for the second day in a row on better than expected outlook from Infosys. Rupee closed at 49.14 to a dollar.[/R]

Stocks in Mumbai closed lower and monsoon rain progressed to the northeast region of the country. The meteorological office said that of the 31 sub-divisions 21 have received “near normal” rain. Rainfall in the southwest region of the country has picked up.

The Sensex index in India decreased 103.90 or 0.77% to 13,400.32 and the CNX Nifty 50 declined 27.55 or 0.7% to 3,976.35. Of the 30 Sensex stocks, 20 declined and 10 gained.

On BSE trading, 517 increased, 2,038 decreased and 51 were unchanged.

Gainers & Losers

Reliance Industries declined 2.1% to 1,741 rupees and Essar Oil decreased 1.1% to 119.60 rupees. ONGC added 0.8% and Cairn India increased 2.3% to 217.40 rupees.

The media speculation of subsidies to private oil explorer and marketers lifted the stocks of both companies in the morning. The government may consider giving subsidies to both private companies as long as these subsidies are passed on to the retail customers. Reliance has closed majority of its 1,433 petrol stations but Essar is still operating 1,240 stations.

Rupee declined to 49.14 against dollar and lifted stocks of IT services exporters.

Infosys increased 2.4% to 1,768 rupees after it tightened its earnings rage for the current quarter. TCS and Wipro added more than 1%.

Bharti Airtel decreased 2% to 766.20 rupees and in June the telephone service provider added 28.2 lakh (or 282,000) net new subscribers.

Tata Motors dropped 3.8% to 262.05 rupees and Maruti Suzuki India Ltd declined 3.5% to 1,066.30 rupees.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 236.95 or 2.55% to 9,050.33, Hang Seng index in Hong Kong decreased 453.79 or 2.56% to 17,254.63 and CSI 300 index in China decreased 37.30 or 1.10% to 3,361.01. ASX 200 index in Australia decreased 56.60 or 1.49% to 3,737.50. The FTSE Bursa KL Composite index in Malaysia closed lower 4.10 or 0.38% to 1,063.66.

The Kospi Index in South Korea decreased 50.50 or 3.53% to close at 1,378.12. SET index in Thailand closed lower 3.48 or 0.61% to 562.55 and JSE Index in Indonesia decreased 42.96 or 2.08% to 2,020.14. The Sensex index in India decreased 103.90 or 0.77% to 13,400.32.