Wholesale Inflation Perks Up in India

Mayank Mehta
14 Dec, 2009
New York City

Stocks in Mumbai edged lower after November wholesale price index rose. Food prices have been driving the inflation to a record high in the last seven years on weak monsoon. The media group DB Corp IPO was oversubscribed by two times on the first day of subscription.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai edged lower after November wholesale price index rose. Food prices have been driving the inflation to a record high in the last seven years on weak monsoon. The media group DB Corp IPO was oversubscribed by two times on the first day of subscription.[/R]

Stocks in Mumbai declined for the second day in a row after wholesale inflation rose sharply in November on food price increase.

The Sensex index in India decreased 21.48 or 0.1% to 17,097.55 and CNX Nifty index fell 11.60 or 0.2% to 5,105.70. Among the Sensex 30 stocks, 13 rose and 17 fell.

On BSE trading, 1,163 stocks advanced, 1,670 declined and 66 were unchanged.

Index heavyweight Reliance Industries reversed gains. Metal and FMCG stocks fell. But, cement and IT stocks rose.

Wholesale price index surged 4.7% in November, data released by the government showed, higher than previous month''s annual rise of 1.34%.

The rise in the wholesale price index is mainly due to higher food prices and the government is concerned about it, Finance Minister Pranab Mukherjee said today.

The initial public offer of DB Corp, India''s regional newspaper, was subscribed 2.17 times today. The company has set a price band of Rs 185 and Rs 212 a share.

Rupee edged lower 20 paisa to 46.73 against one dollar.

Gainers & Losers

Aditya Birla Nuvo Limited climbed 2% to Rs 868.00 after the branded apparel and accessories maker said the company may demerge its financial service businesses to unlock shareholder value.

Arshiya International Limited slipped 0.4% to Rs 160 after the supply chain and logistics infrastructure company said that the company was awarded the logistics company of the year 2009 award at the Annual Indian Maritime Gateway Awards 2009.

FCS Software Solutions Limited fell 3.1% to Rs 15.48 after the stock surged nearly 45% in the preceding seven trading sessions.

Jaihind Projects advanced 0.7% to Rs 139.20 after the EPC services in oil and gas said the company secured an order worth Rs 24.53 crore from Bhagyanagar Gas for laying and construction pipe network & associated works for CNG & city gas projects.

Nucleus Software Exports Limited surged 11.2% to Rs 137.45 said that Bai Tushum and Partners, a non-banking and financial institution has chosen FinnOne for its core banking operation across all division.

Parsvnath Developers Limited added 3% to Rs 125.20 said that it inked an agreement with SUN-Apollo, an international real estate private equity fund, for an investment in its premium luxury residential project Parsvnath Exotiva Part-II, Gurgaon.

SUN-Apollo will invest Rs 75 crore for a 50% stake in the project which will develop Parsvnath Exotica Part-II.

Suven Life Sciences Limited advanced 4.9% to Rs 29.85 said that the Canadian Intellectual Property Office has granted two patents CA 2490002 and CA 2490110 corresponding to two new chemical entities for the treatment of disorders associated with Neurodegenerative diseases.

Swaraj Mazda Limited climbed 4.9% to Rs 314.65 after the light commercial vehicle manufacturer said Tata Motors is negotiating to acquire Japanese conglomerate Sumitomo''s 53.5% stake in the company in a deal worth up to $54 million.

PSL Limited the pipe manufacturing advanced 3.1% to Rs 163.80.

Talbros Automotive Components Limited the manufacturing gaskets added 1.7% to Rs 44.50.

Tata Steel Limited fell 0.3% to Rs 543.55 after is in talks with investors to raise Rs 5,000 crore or $1.1 billion in equity and an equal amount in debt, the DNA newspaper reported on Monday, citing unnamed sources.