Record Food Prices in India; New Auto Models

Mayank Mehta
07 Jan, 2010
New York City

Wholesale price index and food prices hover near a high for the decade in India. Automakers brace for lower margin after the release of 12 new models. Hindustan Copper plans to raise $870 million. Rupee strengthens as foreign fund flows increase.

[R]6:00 PM Mumbai, 8:30 AM New York – Wholesale price index and food prices hover near a high for the decade in India. Automakers brace for lower margin after the release of 12 new models. Hindustan Copper plans to raise $870 million. Rupee strengthens.[/R]

The Sensex index in India decreased 85.41 or 0.4% to 17,615.72 and CNX Nifty index fell 18.70 or 0.35% to 5,263.10. Among the Sensex 30 stocks, 12 rose and 18 fell.

On BSE trading, 1,638 stocks advanced, 1,237 declined and 94 were unchanged.

DB Corp lost 3.69% on profit booking after the stock surged 25% on the first day of trading.

The food price index rose 18.22% in the year to December 26. While fuel price index was up 4.85%, the primary articles price index jumped 14.39% in the same period according to data released by the government today showed.

The wholesale price index decreased 0.7% to 282.2 from 284.1 for the previous week. For the year so far average inflation was 14.39% compared to 11.23% in the same period a year ago.

Reliance Industries rose 1.51% as the company looks to raise more capital through the sale of treasury stocks. Auto, IT and realty stocks led the fall. Consumer durables stocks gained on hopes of good earnings on the back of higher sales in Christmas.

Rupee edged higher 15 paisa to 46.24 against one dollar.

Gainers & Losers

Adhunik Metaliks Limited gained 2.2% to Rs 114.65 after the steel maker sold 1.22% stake in the company and days ago IDFC project equity fund agreed to invest Rs 250 crore in a subsidiary.

Four Soft Limited increased 4.9% to Rs 30.60 after the custom logistics software developer sold its warehouse automation software to the Netherlands based Mondial Logistics.

Hindustan Copper Limited surged 10.0% to Rs 316.30 after the government plan to sell as much as Rs 4,000 crore or $870 million of stock as the government looks to reduce its holdings. The copper smelter and miner plans to increase its capacity to 11.4 million tons a year in five years.

ICICI Bank Limited fell 1.1% to Rs 885.25 and the company will provide vehicle financing to the buyers of motorcycles. U.S. based Harley Davidson is scheduled to launch 12 products priced between Rs 7 lakhs and Rs 35 lakhs.

IRB Infrastructure Developers Ltd added 1.8% to Rs 242.90 after the company said on Thursday it has won a project of Rs 800 crore from National Highway Authority of India to build roads in Goa.

Jaihind Projects Limited surged 14.7% to Rs 171.00 after the company secured three orders of Rs 25.31 crore.

Jubilant Organosys Limited rose 2.5% to Rs 335.00 after on the reports Jubilant Biosys, the subsidiary of company is in the process of expanding its pre-clinical capabilities.

Piramal Healthcare Limited added 0.06% to Rs 387.50 and the company is looking to expand its generic drugs portfolio and plans to raise Rs 1,000 crore in the next six months.

Pidilite Industries Limited dropped 3.2% to Rs 213.45, earlier the stock had surged 12% on the company’s plan to issue bonus shares.

Simplex Infrastructures Limited decreased 2.0% to Rs 535.55 after the service provider of infrastructure and construction said promoters have pledged additional 6.65 lakh shares representing 1.35% of the equity capital of the firm.

Strides Arcolab Limited climbed 7.9% to Rs 253.65 after the company has announced that Pfizer will source 40 off-patent cancer care products and sell the products in the United States.

Steel Strips Wheels Limited added 4.9% to Rs 117.40 after the maker of automotive wheel rims secured an overseas contract for supplying spare wheels.

Subhash Projects and Marketing Limited rose 4.3% to Rs 153.50 an infrastructure developer won two orders of Rs 62 crore.

Wockhardt Limited advanced 3.9% to Rs 182.70 after the company received a tentative approval to market Memantine Tablet in the strength of 5 mg and 10 mg from the U.S. regulatory agency.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 49.79 or 0.46% to 10,681.66, and Hang Seng index in Hong Kong decreased 147.22 or 0.66% to 22,269.45, and CSI 300 index in China lower 70.27 or 1.98% to 3,471.46. ASX 200 index in Australia decreased 22.00 or 0.45% to 4,899.40. The FTSE Bursa KL Composite index in Malaysia was lower 1.75 or 0.14% to 1,291.42.

The Kospi Index in South Korea decreased 21.87 or 1.28% to close at 1,683.45. SET index in Thailand closed lower 1.10 or 0.15% to 734.63. JSE Index in Indonesia decreased 16.40 or 0.63% to 2,586.90. The Sensex index in India decreased 85.41 or 0.48% to 17,615.72.