India Stocks Decline on Weak NTPC Offering

Mayank Mehta
04 Feb, 2010
New York City

Mumbai stocks declined after NTPC secondary offering drew fewer than expected bids and 3G license auction is delayed till the end of March. Investors worried that government may face difficulties in keeping the deficit in control. Automakers declined on a higher tax proposal.

[R]6:00 PM Mumbai, 8:30 AM New York – Mumbai stocks declined after NTPC secondary offering drew fewer than expected bids and 3G license auction is delayed till the end of March. Investors worried that government may face difficulties in keeping the deficit in control. Automakers declined on a higher tax proposal.[/R]

Stocks in Mumbai declined after investors bid less than expected for the stake sale of NTPC. Only 80% of 41.2 crore shares offered by NTPC Ltd at a price between Rs 201 and Rs 210 a share according to the information from the National Stock Exchange.

The Sensex index in India decreased 271.10 or 1.64% to 16,224.95 and CNX Nifty index fell 86.50 or 1.75% to 4,845.35. Among the Sensex 30 stocks, 3 rose and 27 fell.

On BSE trading, 864 stocks advanced, 2,009 declined and 59 were unchanged.

Investors also worried that a delay in the auction of 3G licenses will slow down the government effort to trim the budget deficit.

Realty shares declined on selling pressure. Auto stocks declined on fears a hike in fuel price may crimp demand. Telecom stocks declined on reports the 3G auctions will be delayed after March.

Rural Electrification Corporation is expected to sell in a secondary offering 17.1 crore shares in the bidding period between February 19 and 23.

Rupee edged lower 8 paisa to 46.05 against one dollar.

Software services exporters declined after an industry association lowered export growth. Infosys Technologies, Tata Consultancy and Wipro dropped between 1.8% and 2.5%.

Gainers & Losers

ACC Limited fell 2.9% to Rs 856.75 after the cement maker said full year sales rose 10.2% to Rs 8,027 crore from Rs 7,282 crore a year ago. Net profit for the quarter rose 32.5% Rs 1,606.7 crore compared to net profit of Rs 1,212.8 crore a year ago.

Advanta India Limited rose 6.7% to Rs 542.00 after the company Crosbyton Seed Company of USA, a producer and conditioner of hybrid sorghum planting seed products.

Ashok Leyland advanced 1.6% to Rs 53.00 after total vehicle sales surged 222% to 7,871 units in January.

Aurobindo Pharma Limited rose 1.7% to Rs 916.85 after the company announced received the final approval for Cetirizine Hydrochloride Solution 1 mg/ml from the Food & Drug Administration.

Bharat Electronics Limited fell 0.5% to Rs 1,976.00 and two days ago the company received an order of Rs 4,279 crore from the Indian Air Force.

Falcon Tyres Limited dropped 7.1% to Rs 197.00 after Manali Properties & Finance; a promoter group company pledged 12.50 lakh shares representing 3.67% of the equity capital of the company.

Fame India Limited increased 4.9% to Rs 48.40 after the Inox Leisure bought 15,057,751 shares at Rs 44 a share.

ICICI Bank Limited dropped 0.9% to Rs 830.60.

Kabra Extrusion Technik Limited slipped 5.6% to Rs 203.05 after the capital goods maker stock surged more than 25% in the preceding five trading sessions.

Man Industries (India) Limited added 0.9% to Rs 55.50 after the manufacturer and exporter of large diameter carbon steel line pipes said third quarter total income fell 4% to Rs 439.3 crore from Rs 456.6 crore a year ago. Net profit for the quarter was Rs 30.9 crore compared to net profit of Rs 2.7 crore a year ago.

Punjab National Bank declined 1.9% to Rs 870.35 after the stock traded ex-dividend of Rs 10 a share.

Rishi Laser Limited gained 3% to Rs 57.35 after the sheet metal components and machines secured an export order of Rs 8 crore.

Simmonds Marshall Limited surged 10.0% to Rs 121.00 after the manufacture of self locking nuts said its board will meet on February 10 to consider a 5-for-1 stock split.

Tata Motors Ltd declined 4.4% to Rs 689.60 and Mahindra & Mahindra Ltd declined 3.5% to Rs 1,017 after a panel appointed by the central government recommended higher excise duty on diesel vehicles.

Unichem Laboratories Limited rose 0.9% to Rs 348.00 after the pharmaceutical company today announced that its Ghaziabad formulation facility has been recertified by Medicines and Healthcare Products Regulatory Agencies of UK.