Stocks in India Fall After a Weeklong Rally

Mayank Mehta
05 Oct, 2009
New York City

Stocks in Mumbai declined after rising last week. Rupee advanced to 47.51 against a dollar. Bharti Airtel fell 8% on a brokerage downgrade. Grasim Industries fell after company transferred the cement unit to an unlisted subsidiary before the merger with Ultratech controlled by Aditya Birla Group.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai declined after rising last week. Rupee advanced to 47.51 against a dollar. Bharti Airtel fell 8% on a brokerage downgrade.[/R]

Stocks in Mumbai fell after surging for four days in a row. The mobile telecom 3G wireless licenses may be delayed beyond its current deadline of December and Bharti Airtel Ltd declined 8% to Rs 400.25 after Kotak Securities lowered the company outlook.

The Sensex index in India increased decreased 268.14 or 1.5% to 16,866.41 and CNX Nifty index fell 80.20 or 1.5% to 5,003.20. Among the Sensex 30 stocks, 7 rose and 23 fell.

On BSE trading, 820 stocks advanced, 2,005 declined and 68 were unchanged.

MTNL and BSNL have jointly expressed interest in the acquisition of a majority stake in Kuwait’s biggest phone company, Zain.

Rupee advanced for the second day and closed at 47.513 against one dollar at close in Mumbai. Traders are looking for Rupee to traded between Rs 43 and Rs 45 by the end of March 2010.

Gainers & Losers

ACC fell 1.2% to Rs 815.25 after the company''s cement shipments fell 2.40% to 1.63 million tons in September compared to a year ago.

AREVA T&D India Limited fell 0.5% to Rs 316.60 after the energy distributor said on Monday it had won a power supply system order worth Rs 50 crore for Chennai airport terminal.

Ashok Leyland decreased 2.5% to Rs 40.75 after the commercial vehicles maker said vehicle sales decreased 11.9% in September to 5,452 from 6,186 a year ago.

Axis Bank Limited fell 3.9% to Rs 969.20 announced that the company has promoted Somnath Sengupta to executive director and chief financial officer of the bank since October 1.

Cipla Limited rose 1.9% to Rs 277.35 after the pharmaceutical company block trade of 19 lakh shares was executed on the BSE at Rs 265 each.

Grasim Industries Limited declined 5.8% to Rs 2,542.10 after the fiber and pulp maker group separated its cement business into a unlisted unit called Samruddhi Cement Ltd which will later merged with second largest cement maker Ultratech Cement. Shareholders will get one share of Rs 5 nominal value in unlisted Samruddhi.

Gulf Oil Corporation Limited rose 1.1% to Rs 83.95 and the company plans to issue Rs 2.48 crore equity rights shares at Rs 32 a share to raise Rs 79.31 crore.

IndusInd Bank Ltd fell 0.8% to Rs 112.00 after 5,00,000 shares, or 0.14% of outstanding shares changed hands in a block deal at Rs 114.80 on the BSE.

NCL Industries Limited dropped 3.6% to Rs 39.50 after the building materials maker said the company said operations of its mini hydro power plant at Pothireddipadu in Kurnool district in Andhra Pradesh were affected by unprecedented floods.

Parsvnath Developers Limited fell 3.4% to Rs 142.50 after the company plans to offer 168 crore rupees of institutional offering.

Pratibha Industries Limited added 2.8% to Rs 216.00 after the piping and water transmission infrastructure manager said the company received an order of Rs 24.72 crore from GAIL (India) Ltd for supply of steel pipes for its Bawana-Nangal pipeline project.

Reliance Infrastructure Limited increased 2.9% to Rs 1,241.00 on media speculation that the company is preparing a public offering that may separate a subsidiary.

Sun Pharmaceutical Industries Ltd rose 1.3% to Rs 1,416.20.

Suashish Diamonds Ltd surged 19.9% to Rs 252.10 after the company said its board will meet on October 8 to decide if the company should be delisted.

Tata Tea Limited fell 1.3% to Rs 879.40 after a block deal of 1.42 lakh shares was executed on NSE at Rs 880 per share.

Videocon Industries Limited rose 3.1% to Rs 252.00 after the maker and distributor of consumer goods signed a non-binding potential merger letter with Elcoteq SE based in Finland.

Venky''s (India) Limited the poultry and poultry products added 4.6% to Rs 174.00.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 57.38 or 0.59% to 9,674.49, Hang Seng index in Hong Kong increased 53.58 or 0.26% to 20,429.07, ASX 200 index in Australia decreased 28.40 or 0.62% to 4,573.30. The FTSE Bursa KL Composite index in Malaysia was higher 10.20 or 0.85% to 1,216.45. CSI 300 index in China were closed today.

The Kospi Index in South Korea decreased 37.73 or 2.29% to close at 1,606.90 SET index in Thailand closed lower 6.09 or 0.84% to 718.47. JSE Index in Indonesia increased 0.57 or 0.02% to 2,480.41. The Sensex index in India decreased 268.14 or 1.56% to 16,866.41.