India Stocks Edge Lower; NTC Land Sale

Mayank Mehta
19 Aug, 2009
New York City

Stocks in Mumbai edged lower after estimates of crops were revised lower on weak monsoon. Weak international commodities prices also dragged the sentiment. National Textile Corp may raise as much as $150 million in land sale in Mumbai.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai edged lower after estimates of crops were revised lower on weak monsoon. Weak international commodities prices also dragged the sentiment. National Textile Corp may raise as much as $150 million in land sale in Mumbai.[/R]

Monsoon worries, uncertainty related to global markets and rising commodities prices affected the trading sentiment.

Agriculture Minister Sharad Pawar said that India needs to increase the planting of winter-sown crops and improve irrigation to drought stricken region. He also said that weak monsoon rains may lower the rice output by 10 million tons.

Indian equities were reacting strongly to the sell-off in Chinese market. Banks, oil&gas and auto sectors were amongst the worst hit. Metal shares declined as copper prices fell on Wednesday. Realty shares fell on profit taking after recent gains. Sugar stocks fell, extending recent losses.

The government will provide additional capital to regional rural banks to increase credit flow to the farm sector, finance minister Pranab Mukherjee said.

The Sensex index in India decreased 225.62 or 1.5% to 14,809.64 and CNX Nifty index declined 64.80 or 1.4 % to 4,394.10. Among the Sensex 30 stocks, 27 stocks fell and 3 rose.

On BSE trading, 1,130 stocks advanced, 1,486 declined and 89 were unchanged.

National Textile Corp, the government controlled textile company that has a vast land bank in Mumbai is expected to conduct land sale in the next few months. NTC is looking to raise as much as 700 crore rupees for 10.4 acre land. Lodha Group, Indianbulls Real Estate Ltd, DLF and Unitech are expected to lead the auction.

NTC is seeking at least Rs 15,000 per square feet of land.

Gainers & Losers

Apollo Tyres Ltd gained 2.3% or Rs.0.95 to Rs.40.95 and Bharat Forge Limited slipped 5.1% or Rs.11.85 to Rs.217.85.

Cipla Limited the pharmaceutical company sank 1.8% or Rs.4.80 to Rs.259.00 and Dabur India Limited the global ayurvedic and natural health care company declined 2.7% or Rs.3.40 to Rs.119.50.

CESC Ltd rose 0.9% or Rs.2.80 to Rs.315.35.

DLF Limited fell 0.9% or Rs.3.40 to Rs.371.75 after the real estate development company the sole bidder to qualify for developing 350.7 acres of prime land in a New Delhi suburb.

EdServ Softsystems Limited an IT solutions company rose 4.9% or Rs.3.75 to Rs.79.25.

Glenmark Pharmaceuticals Limited dropped 12.4% or Rs.32.65 to Rs.228.95 after the lung disease drug failed to meet company’s expectations. The drug is developed in partnership with Forest Laboratories.

Gujarat Industries Power Company Limited slid 0.4% or Rs.0.45 to Rs.97.95.

Housing Development Finance Corporation Limited gained 1.2% or Rs.29.85 to Rs2,350.90.

Megasoft Limited surged 19.5% or Rs.5.15 to Rs.31.55 said Trianz Inc today announced the acquisition of Megasoft Consultants Inc, a US based IT Services subsidiary of Megasoft Limited for as much as $15 million.

Panacea Biotec Ltd climbed 4.9% or Rs.8.25 to Rs.174.00 after the company received pentavalent vaccine order from UNICEF for $222.37 million (or Rs.1,067 crores).

PSL Limited gained 0.5% or Rs.0.80 to Rs.142.00 after it won an order worth Rs.210 crore from state-run gas transporter GAIL India for its Dahej-Vijaipur pipeline improvement project.

Rallis India Limited rose 2.8% or Rs.21.10 to Rs.751.10 after the Tata Tea is exploring the Tata Chemicals offer to acquire Rallis India shares.

Reliance Industries declined 2.9% to Rs 1,885 rupees after Reliance ADAG ran a 3-day advertising campaign in financial newspapers highlighting Rs 50,000 crore rupees net profit that the company will earn from the crude oil exploration business that is unfairly shared with the government of India.

Sintex Industries Limited the textile and plastic business jumped 0.4% or Rs.0.80 to Rs.198.35.

HDFC Bank Limited rose 0.4% or Rs.6.35 to Rs.1,447.20.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 80.96 or 0.79% to 10,204.00, Hang Seng index in Hong Kong decreased 352.04 or 1.73% to 19,954.23 and CSI 300 index in China lower 157.42 or 4.96% to 3,014.57. ASX 200 index in Australia decreased 7.80 or 0.18% to 4,373.80. The FTSE Bursa KL Composite index in Malaysia closed lower 8.88 or 0.76% to 1,155.53.

The Kospi Index in South Korea decreased 4.28 or 0.28% to close at 1,545.96. SET index in Thailand closed lower 8.97 or 1.40% to 631.28 and JSE Index in Indonesia decreased 59.24 or 2.53% to 2,277.75. The Sensex index in India decreased 225.62 or 1.50% to 14,809.64.