India Stocks Decline Ahead of NTPC Divestment

Mayank Mehta
02 Feb, 2010
New York City

Stocks in Mumbai declined ahead of NTPC divestment tomorrow. Motorcycles and auto makers report surging sales in January. Cement makers report stronger than expected sales in the previous month.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai declined ahead of NTPC divestment tomorrow. Motorcycles and auto makers report surging sales in January. Cement makers report stronger than expected sales in the previous month.[/R]

The Sensex index in India decreased 192.59 or 1.87% to 16,163.44 and CNX Nifty index fell 69.60 or 1.42% to 4,830.10. Among the Sensex 30 stocks, 4 rose and 26 fell.

On BSE trading, 1,110 stocks advanced, 1,781 declined and 71 were unchanged.

Key benchmark indices declined reversing early gains as investors turned cautious ahead of the opening of the large follow-on public offer of state-run power generation firm NTPC on Wednesday February 3.

Cement shares gained after most firms posted encouraging cement sales last month. Consumer products makers, healthcare providers and resource sector stocks fell on profit taking.

Gainers & Losers

Ambuja Cements Limited rose 0.4% to Rs 101.65 after the company''s cement shipments rose 7.5% to 17.5 lakh tons in a year ago.

Associated Stone Industries Kotah Limited climbed 3.8% to Rs 81.85 after the company''s board set February 19 as the record date for a 2-for-1 stock split.

Bajaj Auto Limited slipped 2.0% to Rs 1,679.60 after the company reported more than two-fold jump in motorcycle sales to 232,939 units in January.

Bank of Baroda dropped 3.3% to Rs 571.00 on profit booking after the stock advanced 13% in the preceding three sessions.

Colgate Palmolive (India) Limited fell 1.1% to Rs 715.00.

GVK Power & Infrastructure Limited dropped 2.8% to Rs 45.05 and the company completed the financing for the 540 mw coal power plant project in Punjab.

IVRCL Infrastructures & Projects Limited rose 0.8% to Rs 321.00.

JK Lakshmi Cement Ltd gained 5.8% to Rs 74.55 after the company''s cement shipments rose 38.2% to 5.06 lakh tones a year ago.

Mundra Port and Special Economic Zone Limited rose 1.9% to Rs 627.00 after the company opened talks to buy Gangavaram Port in Andhra Pradesh.

NTPC Limited decreased 2.3% to Rs 206.30 after the government fixed the benchmark price for the proposed divestment of stake in the state-run thermal power generator at Rs 201 per share. Central government is set raise Rs 82,000 crore or $1.8 billion in the offering.

Shree Cement Limited rose 0.2% to Rs 1,998.10 after the company''s cement shipments rose 18% to 8.82 lakh tones a year ago.

Tata Motors Limited climbed 2.0% to Rs 708.65 after total vehicle sales at the company including exports jumped 77% in January to 65,478 units.

TVS Motor Company Limited dropped 2.3% to Rs 72.20 after the two- wheeler sales rose 33.9% to 125,578 units a year ago.

Zylog Systems Limited added 1.4% to Rs 331.95 and the company acquired Canada based Brainhunter for C$35 million.