Sensex Falls in India; Iraq Offers More Oil

123jump.com Staff
10 Feb, 2010
New York City

Mumbai stocks closed lower on the worries that stimulus may be withdrawn sooner than expected. Cement makers rise for the second day after cement sales increased 15% in January. Uttam Galva promoters plan to sell 4.9% stake to Arcelor Mittal. Iraq offers to increase crude oil supply by 60% to India.

[R]6:00 PM Mumbai, 8:30 AM New York – Mumbai stocks closed lower on the worries that stimulus may be withdrawn sooner than expected. Cement makers rise for the second day after cement sales increased 15% in January. Uttam Galva promoters plan to sell 4.9% stake to Arcelor Mittal. Iraq offers to increase crude oil supply by 60% to India.[/R]

Stocks in India closed lower on the speculation that early withdrawal of stimulus may crimp growth in the next financial year. The Sensex index has lost nearly 9% in the year so far after surging more than 60% in the previous year.

The Sensex index in India decreased 120.01 or 0.75% to 15,922.17 and CNX Nifty index fell 35.45 or 0.74% to 4,757.20. Among the Sensex 30 stocks, 9 rose and 21 fell.

On BSE trading, 1,301 stocks advanced, 1,470 declined and 89 were unchanged.

Banking, capital goods, consumer goods, healthcare and power sector stocks fell. Consumer durables stocks rose.

Chakravarthy Rangarajan, chairman of the Economic Advisory Council of the Prime Minister said in an interview that economy may expand at 8% in the next financial year and the stimulus wind down should be gradual.

Reserve Bank of India Deputy Governor Subir Gokarn said on Wednesday he is not in favour of targeting inflation and said domestic growth drivers would depend on significant increases in capital inflows.

Finance Minister Pranab Mukherjee said on Wednesday that the economy could expand at around 7.75% in the current financial year ending in March.

Rupee edged higher 13 paisa to 46.52 against one dollar.

Iraq offered to increase its crude oil supplied by as much as 60% to India according to a meeting in New Delhi today between Oil Minister Murli Deora and Industry and Minerals Minister of Iraq Fawzi Hariri.

Crude oil imports in the first nine months ending in December increased 12% to 10932 million tons according to the Petroleum Planning and Analysis Cell of oil ministry.

Gainers & Losers

Golden Tobacco Ltd rose 4.9% to Rs 135.35 after the company said its board will meet on February 16, to consider development of properties.

Hero Honda Motors Limited rose 0.8% to Rs 1,623.10 and the company clarified that it has not acquired King XI Punjab cricket team franchise.

Hindustan Construction Company Limited rose 1.4% to Rs 134.15 after the company secured three contracts worth Rs 2,860 crore from the National Highways Authority of India for road construction in the state of West Bengal.

Indowind Energy Limited increased 2.0% to Rs 47.00 ahead of a board meeting today to consider preferential issue of warrants.

Kilburn Engineering Limited added 2.2% to Rs 57.25 after the company announced that it has secured orders totaling Rs 67.82 crore during the period since October 2009 to date.

Max India Limited fell 0.3% to Rs 197.80 after the company said promoters have revoked a portion of pledged shares.

Monsanto India Limited the business of production and sale of agricultural inputs slipped 6.6% to Rs 1,762.05.

Oil India Limited dropped 1.7% to Rs 1,166.00 after the stock turned ex-dividend for a dividend of Rs 18 per share.

Subex Limited rose 3.5% to Rs 68.65 after the telecom application support service provider said it has signed a “multi-million” contract from a tier-1 communications services provider.

Transgene Biotek Limited rose 4.9% to Rs 66.70 after the diagnostic services and tissue culture plants provider announced that a drug for liver cancer developed by its scientists has demonstrated efficacy in the latest animal studies.

Uttam Galva Steels Limited gained 6.3% to Rs 112.70 after the company’s promoters will sell 4.9% to Arcelor Mittal, the world''s biggest steelmaker, a top official said on Wednesday.

Wabco TVS (India) Limited increased 6.1% to Rs 705.20 and the company and Mahindra Navistar Automotives has announced a long term contract for the joint development and supply of parts for brakes and clutch systems.