India Awaits RBI Rate Views; Food Prices Surge

Mayank Mehta
28 Jan, 2010
New York City

Investors were on hold ahead of RBI announcement tomorrow. Inflation worries are dragging market sentiment as wholesale price index hovers near record high. Tata Steel quarterly sales increased 33% and net profit gained 155%.

[R]6:00 PM Mumbai, 8:30 AM New York – Investors were on hold ahead of RBI announcement tomorrow. Inflation worries are dragging market sentiment as wholesale price index hovers near record high. Tata Steel quarterly sales increased 33% and net profit gained 155%.[/R]

The Sensex index in India increased 17.05 or 0.10% to 16,306.87 and CNX Nifty index rose 14.15 or 0.29% to 4,867.25. Among the Sensex 30 stocks, 12 rose and 18 fell.

On BSE trading, 1,117 stocks advanced, 1,727 declined and 53 were unchanged.

Metal stocks rose on bargain hunting after three-day decline in market indexes. Healthcare stocks rose after companies in the sector reported positive third quarter result.

Rupee edged higher 12 paisa to 46.24 against one dollar.

Food price index reported by the commerce ministry increased 17.4% in the week to Jan 16 from a year ago after rising at 16.81% in the previous week. The index had surged 20% in the week to December 5, the record gain in eleven years.

Gainers & Losers

Aptech Limited dropped 1.0% to Rs 171.05 after the company announced that the board at its meeting held on January 27 has approved to acquire up to 100% of the share capital of Maya Entertainment Ltd.

Bharat Petroleum Corporation Limited fell 2.2% to Rs 542.55 after the petroleum industry said third quarter sales rose 1% to Rs 32,161 crore from Rs 31,884.5 crore a year ago. Net profit for the quarter fell 52.6% to Rs 379 crore compared to net profit of Rs 799.8 crore a year ago.

Crompton Greaves Limited increased 7.4% to Rs 426.45 after the manufacturer of electrical products said third quarter sales rose 13% to Rs 1,223.8 crore from Rs 1079.8 crore a year ago. Net profit for the quarter rose 60% to Rs 135.4 crore compared to net profit of Rs 84.8 crore a year ago.

Dena Bank fell 1.1% to Rs 74.65 after the bank said third quarter sales rose 6.3% to Rs 1,015.9 crore from Rs 955.6 crore a year ago. Net profit for the quarter fell 4% to Rs 134.5 crore or Rs 4.69 per diluted share compared to net profit of Rs 140.4 crore or Rs 4.89 per share a year ago.

Genus Power Infrastructures Ltd fell 4.6% to Rs 165.50 after the company announced that it has decided to drop / withdraw the plan of demerger of Power Unit of Genus Paper Products Ltd. with the company owing to the unexpected circumstances.

HCL Technologies Limited increased 5.5% to Rs 348.30 after the company signed $50 million global engineering transformation services agreement with the UK based Meggitt Plc.

Indian Overseas Bank dropped 5.7% to Rs 94.75 after the bank said third quarter sales fell 1% to Rs 2,570 crore from Rs 2,598.3 crore a year ago. Net profit for the quarter fell 74% to Rs 101.7 crore or Rs 1.87 per diluted share compared to net profit of Rs 388.4 crore or Rs 7.13 per share a year ago.

JM Financial Limited rose 4.6% to Rs 41.85 after the finance company said third quarter total income rose 42.3% to Rs 157.1 crore from Rs 110.4 crore a year ago. Net profit for the quarter was Rs 36.18 crore or Rs 0.48 per diluted share compared to net loss of Rs 230 crore or Rs 3.07 per share a year ago.

Kansai Nerolac Paints Limited rose 0.9% to Rs 1,045.45 after the industrial, automotive and powder coating company said third quarter sales rose 33% to Rs 420.9 crore from Rs 316.4 crore a year ago. Net profit for the quarter rose 70.4% to Rs 36.3 crore compared to net profit of Rs 21.3 crore a year ago.

Lanco Infratech Limited rose 0.5% to Rs 47.10.

Marico Limited rose 0.2% to Rs 98.35 after the consumer products company said third quarter sales rose 7.7% to Rs 669 crore from Rs 621 crore a year ago. Net profit for the quarter rose 22% to Rs 62.2 crore compared to net profit of Rs 50.9 crore a year ago.

MRF Limited rose 1.3% to Rs 5,760.85 after the manufacturer of tyres said third quarter sales rose 22% to Rs 1,654 crore from Rs 1,351 crore a year ago. Net profit for the quarter was Rs 119 crore compared to net loss of Rs 38 crore a year ago.

Oriental Bank of Commerce surged 9.6% to Rs 251.80 after the bank said third quarter net interest income rose 53% to Rs 871 crore from Rs 567.8 crore a year ago. Net profit for the quarter rose 15% to Rs 289 crore compared to net profit of Rs 252 crore a year ago.

Prakash Industries Limited rose 0.7% to Rs 184.65 after the steel maker said third quarter sales rose 7% to Rs 360.4 crore from Rs 337.9 crore a year ago. Net profit for the quarter rose 78% to Rs 66 crore compared to net profit of Rs 37 crore a year ago.

Ranbaxy Laboratories Limited rose 2.6% to Rs 451.30 after the company on bargain hunting after the stock shed 14% in nine trading sessions.

Shiv-Vani Oil & Gas Exploration Services Ltd rose 1.7% to Rs 355.00 after the firm''s board approved allotment of equity shares to Franklin Templeton for an amount not exceeding $20 million.

Spice Communications Limited added 1.5% to Rs 56.50 after the cellular services provider on bargain hunting after the stock corrected 13% in the preceding four sessions.

Tata Steel Limited gained 4.8% to Rs 585.55 after the steel producer said third quarter sales rose 33% to Rs 6,307 crore from Rs 4,750 crore a year ago. Net profit for the quarter rose 155.6% to Rs 1,191.8 crore or Rs 13.24 per diluted share compared to net profit of Rs 466.2 crore or Rs 5.67 per share a year ago.

Wipro Limited rose 2.8% to Rs 673.00 after the information technology services signed a multi-year outsourcing deal with British American Tobacco Plc.