India Stocks Weak; Pipavav IPO

Mayank Mehta
09 Oct, 2009
New York City

Stocks in Mumbai trading closed lower after negative comments from influential investor. Infosys declined after it reported earnings that met investors

[R]6:00 PM Mumbai, 8:30 AM New York –Stocks in Mumbai trading closed lower after negative comments from influential investor. Infosys declined after it reported earnings that met investors’ expectations. Pipavav Shipyard traded up 5% on its first day of trading. Tata motors completed its $750 million offering.[/R]

The Sensex index in India decreased 200.88 or 1.1% to 16,642.66 and CNX Nifty index fell 57.05 or 1.1% to 4,945.20. Among the Sensex 30 stocks, 26 declined and 4 rose.

On BSE trading, 960 stocks advanced, 1,790 declined and 71 were unchanged.

Pipavav Shipyard on a debut day of its trading opened at Rs 60.05, which is a marginal premium of around 5% to the issue price of Rs 58. The private ship yard and port operator is based in Gujarat.

The Chief Statistician Pronab Sen today said industrial output numbers will be in double digits by December and at the time inflation may cross Reserve Bank''s comfort zone.

Rupee edged higher 2 paisa to 46.32 against one dollar.

Gainers & Losers

Aurobindo Pharma Limited fell 1.4% to Rs 838.00 after one of the promoters reduced his stake in the firm.

Bata India Limited fell 1.1% to Rs 177.55 after the manufacturing and sale of footwear plans to open 60 stores every year to expand its presence across the nation.

Bharti Airtel Limited rose 3% to Rs 343.15 after the provider of telecommunication services said that it may bid for Luxembourg-based telecom firm Millicom''s operations in Sri Lanka.

EdServ Softsystems Limited increased 4.9% to Rs 175.00 after the education and placement services provider said it has received Rs 100 crore contract from the government for providing training to unemployed and under-employed youth across India.

Exide Industries Limited the storage batteries maker rose 5.9% to Rs 100.45.

Jet Airways (India) Limited rose 3.3% to Rs 442.40 has initiated talks with Delhi-based low-fare carrier SpiceJet Ltd for an operational alliance in engineering and ground operations. Separately, chief executive officer of Jet Airways resigned a day ago.

Infosys Technologies Limited fell 0.06% to Rs 2,210 after the software services exporter said second quarter revenues rose 3.1% to Rs 5,585 crore from Rs 5,418 crore a year ago. Net profit for the quarter rose 7.5% to Rs 1,540 crore or Rs 26.83 per diluted share compared to Rs 1,432 crore or Rs 24.97 per share a year ago.

Mastek Limited decreased 5.8% to Rs 278.25 after the provider of vertically-focused enterprise technology solutions said first quarter revenues fell 26.7% to Rs 185 crore from Rs 252.5 crore a year ago. Net profit for the quarter fell 36% to Rs 26.4 crore or Rs 9.81 per diluted share compared to Rs 41.2 crore or Rs 15.11 per share a year ago.

Mahanagar Telephone Nigam Limited added 1.7% to Rs 83.80 said is looking to move ahead with a consortium bid for Kuwait telecom Zain and is also interested in buying a stake in Zambian telecom firm Zamtel.

State Bank of India decreased 2.3% to Rs 2,066.00 has increased the rates on corporate loans by up to 50 basis points.

Siemens Limited declined 0.1% to Rs 585.00 after the industry, energy and healthcare group said on Thursday its consortium with Siemens AG has won an export order worth Rs 403 crore from Ezdan International Housing Project, Qatar.

SRF Limited rose 0.1% to Rs 184.00 after the company plans to invest about Rs 1,000 crore on a new factory to make fluorine-based products for export markets.

Suashish Diamonds Ltd surged 16.0% to Rs 352.50 said that the company board in a meeting today approved the delisting of its stock from the BSE.

Tata Motors Limited fell 0.8% to Rs 553.50 after it completed $750 million of GDR and convertible note offering. The funds will be used to replay the last installment of $600 million of $3 billion loans for the purchase of Jaguar Land Rover.

UTV Software Communications Limited advanced 0.9% to Rs 460.00 after its board approved to raise Rs 750 crore.

Veer Energy & Infrastructure surged 10.0% to Rs 17.70 after the company plans to raise capital to fund its proposed 200 megawatts wind farm development project in Gujarat.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 183.92 or 1.87% to 10,016.39, Hang Seng index in Hong Kong increased 6.54 or 0.03% to 21,499.44, and CSI 300 index in China higher 158.90 or 5.29% to 3,163.71. ASX 200 index in Australia decreased 15.70 or 0.33% to 4,752.90. The FTSE Bursa KL Composite index in Malaysia was higher 3.73 or 0.30% to 1,233.82.

The Kospi Index in South Korea increased 31.33 or 1.94% to close at 1,646.79 SET index in Thailand closed higher 2.84 or 0.38% to 746.87. JSE Index in Indonesia decreased 10.12 or 0.41% to 2,474.40. The Sensex index in India decreased 200.88 or 1.19% to 16,642.66.