Stubborn Inflation in India; Hathway IPO

Mayank Mehta
25 Feb, 2010
New York City

Stocks in Mumbai traded lower. Hathway Cable f& Datacom IPO closes 8% below the price. Gammon India secures contract from ISKCON. Crompton Greaves Ltd approves issue of bonus shares. L&T estimated $1.7 billion contracts to build power plants.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded lower. Hathway Cable f& Datacom IPO closes 8% below the price. Gammon India secures contract from ISKCON. Crompton Greaves Ltd approves issue of bonus shares. L&T estimated $1.7 billion contracts to build power plants.[/R]

The Sensex index in India decreased 1.77 or 0.01% to 16,254.20 and CNX Nifty index rose 1.15 or 0.02% to 4,859.75. Among the Sensex 30 stocks, 14 rose and 16 fell.

On BSE trading, 1,268 stocks advanced, 1,501 declined and 105 were unchanged. Auto stocks were mixed. IT, capital goods and realty stocks rose. Reliance Industries edged lower.

The infrastructure sector output grew 9.4% in January 2010 from a year earlier, higher than an upwardly revised annual growth of 6.4% in December 2009, government data showed on Thursday.

The wholesale price index decreased 0.45% to 284.5 from 285.8 for the previous week. For the year so far average inflation was 15.84% compared to 6.23% in the same period a year ago.

Railway Minister Mamta Banerjee cut freight rates for grains and kerosene by Rs 100 per wagon and kept passenger fares and freight rates unchanged in the Railway budget for the next fiscal year to tame inflation.

Telecom stocks were mixed. The government will auction three slots each of third-generation wireless spectrum in most of its telecoms zones, including in the lucrative Delhi and Mumbai regions, from April 9, the telecoms ministry said today.

Hathway Cable & Datacom declined 8.33% to Rs 220 from the initial public offer price of Rs 240.

Rupee edged lower 4 paisa to 46.32 against one dollar.

Gainers & Losers

Aurobindo Pharma Limited rose 0.09% to Rs 928.35 after the company announced that it has received a tentative approval to manufacture and market Nevirapine tablets for oral suspension 50 mg New Drug Application from the US Food & Drug Administration.

ABC Paper Limited rose 0.3% to Rs 63.00 after on bargain hunting after the stock plunged almost 12% in the preceding four trading sessions.

Aventis Pharma Limited fell 1.8% to Rs 1,625.10 after the fourth quarter net profit slumped 42.6% to Rs 26 crore.

Crompton Greaves Limited rose 3.3% to Rs 412.45 after the electrical products maker approved the issue of three bonus shares for every four held.

Elgi Equipments Limited fell 0.3% to Rs 80.10 and the company scheduled a board meeting on March 1 to set up a subsidiary in Europe.

Gammon India Limited added 1.4% to Rs 219.30 after the company has announced that the company has been awarded a contract by ISKCON of Rs. 137.28 crore to build a Hindu temple and education center in West Bengal.

Kotak Mahindra Bank Limited advanced 3.4% to Rs 732.15.

Larsen & Toubro Limited climbed 1.9% to Rs 1,528.90 after the company expects a contract of Rs 8,000 crore from a joint venture to build a 1,600 megawatts power plant in central India, a senior company official said today.

Mediaone Global Entertainment Limited fell 4.9% to Rs 56.30 after one of the promoter group companies sold a small portion of its stake in the firm.

MphasiS Limited fell 8.5% to Rs 672.35 after the software services provider said net profit rose 3.65% to Rs 238.52 crore on 7.54% rise in net sales to Rs 960.32 crore in first quarter January 2010 over compared to the previous quarter ending in October 2009.

Rural Electrification Corporation Limited rose 3.5% to Rs 231.00.

Sterlite Technologies Limited rose 1.1% to Rs 394.05 after the company set the date of bonus shares.