Food Prices Surge in India; Telecom, Buidlers Up

Mayank Mehta
10 Dec, 2009
New York City

Wholesale price index at the end of last week increased and food price index surged the most in eleven years. RBI Governor Rao does not see foreign capital flows contributing to asset bubble and the central bank permitted telecom and builders to access capital in international markets.

[R]6:00 PM Mumbai, 8:30 AM New York –Wholesale price index at the end of last week increased and food price index surged the most in eleven years. RBI Governor Rao does not see foreign capital flows contributing to asset bubble and the central bank permitted telecom and builders to access capital in international markets.[/R]

The index for wholesale prices increased 0.9% to 284.4 from 281.9 for the previous week. For the year so far average inflation was 13.90% compared to 11.57% in the period a year ago.

Food prices index increased 19% from a year ago at the end of last week on November 28. The food prices jumped at the fastest pace in the last eleven years according to Commerce Ministry.

The Sensex index in India increased 64.09 or 0.3% to 17,189.31 and CNX Nifty index rose 22.65 or 0.4% to 5,134.65. Among the Sensex 30 stocks, 15 rose and 15 fell.

On BSE trading, 1,662 stocks advanced, 1,156 declined and 89 were unchanged.

The Reserve Bank of India Governor D Subbarao said capital flows into India are in line with requirement and he does not see asset bubble pressures.

Telecom stocks jumped after the government allowed foreign borrowing to fund 3G spectrum fees. Consumer stocks declined but metal, banking and capital goods stocks rose.

Prime Minister Manmohan Singh said on Thursday the country needs to sharply increase public spending on agriculture, particularly on irrigation and technology to raise farm output.

Mumbai based realty firm Godrej Properties'' initial public offering was subscribed 1.27 times on second day of the issue today. The price range for the offering is Rs 490 and 530 per share and the issue is expected to close tomorrow.

Rupee edged lower 10 paisa to 46.63 against one dollar.

Gainers & Losers

Fortis Healthcare Limited climbed 3.7% to Rs 121.85 after the hospital chain is in advanced talks to acquire three hospitals belonging to the Asiri Hospital group, the largest private health care provider.

Four Soft Limited surged 19.9% to Rs 33.70 after the company received an overseas order for one of its software products for an undisclosed sum.

Gammon India Limited rose 0.9% to Rs 240.85 after the civil engineering construction company said that its wholly owned subsidiary, SAE Powerlines, Italy has secured a power transmission project aggregating to $31 million in Tanzania.

KPIT Cummins Infosystems Limited fell 1.9% to Rs 129.05 after a promoter group company, Proficient Trading & Investment, pledged 43 lakh shares (4.43 million) representing 5.51% of the equity capital of the company.

Lupin Limited climbed 2.3% to Rs 1,438.95 after the pharmaceutical company is looking to acquire a company in the injectible pharmaceutical sector in Japan, said Chief Financial Officer S. Ramesh.

Micro Inks Limited surged 19.9% to Rs 629.55 after the manufacture of printing inks said it plans to delist its shares and the founder and majority shareholder MHM Holding GmBH would acquire its shares held by the public.

Praj Industries Limited rose 3.4% to Rs 99.30 after the developing solutions for ethanol and bio-diesel producer and Novozymes A/S signed collaborative agreement to optimize the enzymatic hybdrolysis process and the use of enzymes to produce advanced biofuel.

Rajratan Global Wire Limited the carbon steel wire added 4.9% to Rs 104.80.

Satyam Computer Services Ltd increased 5.4% to Rs 108.10 after it agreed to pay $70 million to settle with UK based Upaid Systems Ltd. The mobile payment solutions provider was looking for as much as $1 billion. The first payment of $45 million will be made after the approval from regulatory agencies and the balance will be paid within a year of the first payment.

The settlement requires Upaid to grant a perpetual royalty fee global license for all of its patents.

State Bank of India rose 0.07% to Rs 2,295.80. The joint venture Macquarie Infrastructure Management Private Limited with Macquarie Capital announced the appointment of Varun Bajpai as Chief Executive Officer and Praveen Gupta as Deputy Chief Executive Officer.

Simplex Projects Limited rose 4.4% to Rs 234.80 after the civil infrastructure solutions provider said that it secured three orders for Rs 407 crore for earth works and constructions of feeder channel and canal works in the Mahoba region of Uttar Pradesh from the Irrigation department of Government of Uttar Pradesh under three different packages.

Shoppers Stop Limited increased 3.4% to Rs 362.85 after the retailer said Reliance Mutual Fund acquired 5,00,000 shares of the retailer at an average price of Rs 349.98 a share in a bulk deal.

Sterling Tools Limited gained 5.8% to Rs 77.65 after the cold forged fasteners and Borstlap Masters Fasteners Group B.V. entered into a joint venture in India.

Swaraj Mazda Limited advanced 4.9% to Rs 285.45 after the light commercial vehicle maker said that said Tata Motors is negotiating to acquire Japanese conglomerate Sumitomo''s 53.5% stake that may be valued as much as $54 million.

Syndicate Bank Ltd gained 3.3% to Rs 97.90 said that the bank is in active talks to buy between 20% and 25% stake for around Rs 300 crore in Bharti Axa Life Insurance.

Western India Shipyard Limited added 4.9% to Rs 11.19 said that the company has received an order for the repair of a deep water oil rig valued at about Rs 5 crore.