Sensex in India Plunges 2.7%

Mayank Mehta
05 Feb, 2010
New York City

Stocks in Mumbai traded lower on the worries that government may struggle to sell more stakes in state controlled companies. The recent stake sale in NTPC received a lukewarm response. Reliance Industries is in talks with Canada based tar-sand oil explorer for $2 billion investment. Realtors and software developers declined.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded lower on the worries that government may struggle to sell more stakes in state controlled companies. The recent stake sale in NTPC received a lukewarm response. Reliance Industries is in talks with Canada based tar-sand oil explorer for $2 billion investment. Realtors and software developers declined.[/R]

The Sensex index in India decreased 434.02 or 2.68% to 15,790.93 and CNX Nifty index fell 126.70 or 2.61% to 4,718.65. All members of the Sensex 30 index closed lower.

On BSE trading, 510 stocks advanced, 2,372 declined and 53 were unchanged.

Auto makers, infrastructure developers and telecom sector stocks led the decliners in trading.

A government panel recommended higher taxes on diesel powered vehicles, weaker than expected demand for NTPC offering affected infrastructure stocks and the delay in 3G wireless spectrum sparked worries that the central government budget deficit may be higher than estimated.

Real estate developers dropped on the worries that interest rates may be on the rise and IT stocks fell for the second day in a row after an industry body cut the export forecast for the next fiscal year.

Reliance Industries fell below Rs 1,000 in volatile trading. Sugar stocks declined after sugar prices dropped in local markets on higher than expected inventories.

Rupee edged lower 26 paisa to 46.51 against one dollar.

Gainers & Losers

Ambuja Cements Limited fell 0.6% to Rs 100 after the cement company said full year sales rose 13% to Rs 7,077 crore from Rs 6,247 crore a year ago. Net profit for the quarter fell 12.4% to Rs 1,217 crore or Rs 7.98 per diluted share compared to net profit of Rs 1,390 crore or Rs 9.12 per share a year ago.

Andhra Cements Limited slipped 5.1% to Rs 27.00 after the shares plunges as promoter pledges additional shares.

Dishman Pharmaceuticals and Chemicals Limited rose 1.9% to Rs 208.00 after the company received U.S. regulatory approval.

Fame India Limited increased 4.9% to Rs 50.80 after a block deal of 25,07,537 shares changed hands at Rs 50.75 on the BSE , only two days after Inox acquired 43.3% in the company.


Gemini Communication Ltd slipped 4.9% to Rs 39.15 after Radhika Vijayakumar, a promoter of the company, pledged additional 27.27 lakh shares representing 2.81% of the equity capital of the firm.

GTL Infrastructure Limited dropped 3.0% to Rs 40.75 after the firm is raising Rs 1,400 crore through non-convertible debentures.

PVP Ventures Limited increased 7.9% to Rs 25.90 after the urban infrastructure developer plans to raise up to Rs 500 crore.

Ranbaxy Laboratories Limited slipped 5.3% to Rs 403.60 after the pharmaceutical maker received a request from the U.S. regulators to confirm that the company’s plants are in compliance of the U.S. regulations.

Reliance Industries declined 3.7% to Rs 981.70 and the company confirmed the media report that it is looking to make an investment in Canada based independent company Value Creation Inc for $2 billion. The Canadian company explores crude oil from tar sands at a project in Alberta, Canada.

Reliance Natural Resources Limited dropped 1.4% to Rs 63.50 after on bargain hunting after the stock dropped 6% to Rs 64.40 on Thursday, February 4.

Simmonds Marshall Limited surged 10% to Rs 133.10 after the company said its board will meet on February 10 to consider a 5-for-1 stock split.

SpiceJet Limited dropped 1.5% to Rs 53.85 after the discount carrier director Ajay Singh said Dubai investment arm Istithmar PJSC has sold its entire 13.3% stake in the budget carrier to two mutual funds Birla Mutual Fund and Reliance Mutual Fund.

Sumeet Industries Limited added 3.2% to Rs 20.50 after the diversified conglomerate said that it received an export order of polyester chips for Rs 20 crore from Egypt.

Sujana Towers Limited fell 0.3% to Rs 50.50 after the galvanized steel towers used in the power transmission and telecom tower sectors said promoters pledged additional 6.08 lakh shares representing 0.74% equity capital of the firm.

Sun Pharmaceutical Industries Ltd decreased 1.8% to Rs 1,467.00 after the Taro Pharmaceutical Industries Ltd. today announced that the Supreme Court of the State of Israel has ruled that Sun Pharmaceutical Industries Ltd. may not exercise a warrant to purchase additional Taro shares while a previously ordered temporary injunction remains in effect.