India Inflation Worries; Govt Stake Sale

Mayank Mehta
19 Jan, 2010
New York City

Stocks in India closed lower as the inflation is expected to run ahead of market expectations. The central bank is looking to expand currency future contracts. Reliance Capital is looking to sell minority stake sale to a foreign investor. NMDC, Hindustan Copper rise on government stake sale talks.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in India closed lower as the inflation is expected to run ahead of market expectations. The central bank is looking to expand currency future contracts. Reliance Capital is looking to sell minority stake sale to a foreign investor. Sesa Goa Ltd third quarter profit surges 76%.[/R]

The Sensex index in India decreased 155.02 or 0.88% to 17,486.06 and CNX Nifty index fell 49.20 or 0.93% to 5,225.65. Among the Sensex 30 stocks, 7 rose and 23 fell.

On BSE trading, 1,105 stocks advanced, 1,829 declined and 52 were unchanged.

Reliance Industries edged lower in volatile trade. IT, realty, auto and healthcare stocks fell. But banking stocks rose.

The Reserve Bank of India said it will expand currency futures trading in the euro, yen, and pound from the current trading in dollar-rupee contracts.

The monthly inflation may touch double digits by March 2010, Chief Statistician Pronab Sen told a television station.

The initial public offer of fast-food chain jubilant food works was subscribed 3.46 times on the second day. The company has fixed IPO price band of between Rs 135 and Rs 145 per share.

Rupee edged higher 7 paisa to 45.57 against one dollar.

Gainers & Losers

Axis Bank Limited fell 0.3% to Rs 1,104.20 after GMR Infrastructure announced that it has fully redeemed the non-convertible debentures issued to the bank.

BASF India Limited decreased 2.1% to Rs 429.95 after the chemical company said third quarter sales rose 40% to Rs 288.2 crore from Rs 205.6 crore a year ago. Net profit for the quarter was Rs 11.25 crore compared to net profit of Rs 0.4 crore a year ago.

Bharat Heavy Electricals Limited rose 1.3% to Rs 2,408.30.

Hindustan Copper Limited surged 17.5% to Rs 605.00 after on reports the government is considering to sell stake in the company.

Novartis India Limited declined 3.7% to Rs 565.65 after the pharmaceutical company said third quarter sales rose 2% to Rs 160.5 crore from Rs 157 crore a year ago. Net profit for the quarter fell 4% to Rs 23.2 crore compared to net profit of Rs 24.2 crore a year ago.

Rane (Madras) Limited added 3.1% to Rs 97.30 after the auto parts maker reported third quarter net profit of Rs 3.71 crore compared to net loss of Rs 4.18 crore.

Reliance Capital Limited declined 0.1% to Rs 912.90 after the company is looking to sell up to 20% stake in Reliance Mutual Fund to a strategic foreign partner.

Sesa Goa Limited fell 0.9% to Rs 405.95 an iron ore producer said third quarter sales rose 36% to Rs 1,866.8 crore from Rs 1,370.3 crore a year ago. Net profit for the quarter rose 76% to Rs 827.5 crore or Rs 9.46 per diluted share compared to net profit of Rs 470.8 crore or Rs 5.98 per share a year ago.

SRF Limited fell 7.3% to Rs 201.65 after the industrial company said third quarter sales rose 17% to Rs 487.6 crore from Rs 416.2 crore a year ago. Net profit for the quarter rose 0.2% to Rs 37.6 crore compared to net profit of Rs 37.5 crore a year ago.

Tata Power Company Limited fell 1.4% to Rs 1,419.75 after the private power utility company said third quarter sales fell 12% to Rs 1,527.8 crore from Rs 1,741.5 crore a year ago. Net profit for the quarter rose 40% to Rs 141.9 crore or Rs 5.80 per diluted share compared to net profit of Rs 101.1 crore or Rs 4.56 per share a year ago.

Unichem Laboratories Limited gained 3.8% to Rs 344.90 after the pharmaceutical company said third quarter sales rose 15% to Rs 171.4 crore from Rs 149.1 crore a year ago. Net profit for the quarter rose 20% to Rs 33.7 crore compared to net profit of Rs 28.1 crore a year ago.

Zee Entertainment Enterprises Limited dropped 5.4% to Rs 270.65 after the media and entertainment company said third quarter sales rose 13% to Rs 323.8 crore from Rs 285.8 crore a year ago. Net profit for the quarter rose 192% to Rs 147.9 crore compared to net profit of Rs 50.6 crore a year ago.