Tata Steel Loss; Sensex Falls on Dubai Worries

123jump.com Staff
26 Nov, 2009
New York City

Emerging markets declined after Dubai, UAE was forced to rollover debt maturing next month. Tata Steel Ltd plunges after Corus unit reports weaker than expected results and swung to a loss. The wholesale price index decreased 0.2% in October from a year ago.

[R]6:00 PM Mumbai, 8:30 AM New York – Emerging markets declined after Dubai, UAE was forced to rollover debt maturing next month. Tata Steel Ltd plunges after Corus unit reports weaker than expected results and swung to a loss. The wholesale price index decreased 0.2% in October from a year ago.[/R]

Stocks in Mumbai trading fell on the weakness in emerging markets. Dubai World, state supported real estate developer in UAE plans to delay repayment of its debts that are maturing in the next few weeks. The news unnerved investors in the region.

The Sensex index in India decreased 344.02 or 2% to 16,854.93 and CNX Nifty index fell 102.60 or 2.0% to 5,005.55. Among the Sensex 30 stocks, 5 rose and 25 fell.

On BSE trading, 905 stocks advanced, 1,910 declined and 72 were unchanged. Stocks in banking, IT and oil & gas sectors closed lower. Reliance Industries traded ex-bonus today.

Rupee edged lower 8 paisa to 46.28 against one dollar.

Monthly Wholesale Price Index Falls

The wholesale price index for the month of October 2009 decreased 0.2% to 242.2 from 242.7 from the previous month. Build up inflation in the financial year so far was 6.13% compared to 5.99% in the same period of year ago.

Dubai Debt Rollover

Dubai World is struggling to replay $10 billion of its $80 billion debt that is maturing in less than five weeks. The state supported real estate developer is seeking emergency assistance from oil rich Abu Dhabi of as much as $10 billion and recently issues Islamic bonds to raise $1.93 billion.

Dubai Department of Finance in a statement said that it is looking for a debt rollover of $3.52 billion for Nakheel Ltd, the subsidiary of Dubai World that is due on December 14.

Gainers & Losers

Asian Hotels Limited decreased 2.9% to Rs 432.00 after the operator of five-star deluxe hotels said second quarter sales fell 20.5% to Rs 89 crore from Rs 112 crore a year ago. Net profit for the quarter fell 94.6% to Rs 0.94 crore compared to net profit of Rs 17.3 crore a year ago.

Balarampur Chini Mills Limited declined 2.8% to Rs 131.20 after the sugar manufacturer said fourth quarter sales rose 17.2% to Rs 1,747.1 crore from Rs 1,490.9 crore a year ago. Net profit for the quarter rose 167% to Rs 209 crore compared to net profit of Rs 78.3 crore a year ago.

C & C Constructions Limited rose 0.8% to Rs 237.10 said that the company recently secured six water and sewerage projects for Rs.123 crore from Punjab Water Supply and Sewerage Board.

EIH Limited added 4.6% to Rs 138.70 and ITC Limited is open to increase its holding in the company, according to local media reports citing its Chairman. ITC, which owns nearly 15% of the company, is exploring options including making a counter offer after local media reported last month investor Analjit Singh plans to increase his holdings to 17% from the current holding of 4.3%.

Hindalco Industries Limited fell 1.6% to Rs 133.20 and the aluminum maker raised about Rs 2,900 crore through a private placement.

InfoTech Enterprises Limited slipped 2.8% to Rs 292.55 and the company is looking to acquire two companies in the United States during the current financial year.

Jet Airways (India) Limited increased 5.7% to Rs 468.25 and the private carrier started recruiting pilots to staff its expansion. The airline is looking to add between 25 and 30 pilots.

Kwality Dairy (India) Limited rose 2.4% to Rs 1,320.10 after the company set December 11 as a date to split its stocks 10-to-1.

The Motor and General Finance Limited added 1.3% to Rs 44.15 after one of the promoter group companies hiked its stake in the firm.

Powersoft Global Solutions Limited the business technology software services decreased 4.9% to Rs 25.00.

Srei Infrastructure Finance Limited dropped 0.5% to Rs 75.00 said a consortium led by the company plans to set up a 400-MW power plant in Haldia, West Bengal, for an estimated cost of 2,300 crore rupees.

Tata Steel Limited fell 3.9% to Rs 540.00 after the diversified steel producer said second quarter sales fell 43% to Rs 25,269 crore from Rs 44,050 crore a year ago. Net loss for the quarter was Rs 2,707 crore compared to net profit of Rs 477 crore a year ago.

United Phosphorus Limited declined 2.6% to Rs 151.00 and the stock had jumped 15% in the previous three days of trading.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 58.40 or 0.62% to 9,383.24, and Hang Seng index in Hong Kong decreased 401.39 or 1.78% to 22,210.41, and CSI 300 index in China lower 143.86 or 3.96% to 3,485.77. ASX 200 index in Australia decreased 13.60 or 0.29% to 4,708.60. The FTSE Bursa KL Composite index in Malaysia was lower 0.39 or 0.03% to 1,270.61.

The Kospi Index in South Korea decreased 12.36 or 0.77% to close at 1,599.52. SET index in Thailand closed lower 9.96 or 1.43% to 685.73. JSE Index in Indonesia decreased 68.01 or 2.76% to 2,393.52. The Sensex index in India decreased 344.02 or 2.00% to 16,854.93.