Sensex in India Declines; Tata Motors, NMDC Fall

Mayank Mehta
09 Mar, 2010
New York City

Mumbai stocks struggled on the anniversary day when world markets traded at multi-year lows a year ago. The Sensex has doubled in a year on the improving global economic outlook. Tata Motors declined 3% after Daimler AG sold its 5.3% stake that it held since 1954.

[R]6:00 PM Mumbai, 8:30 AM New York – Mumbai stocks struggled on the anniversary day when world markets traded at multi-year lows a year ago. The Sensex has doubled in a year on the improving global economic outlook. Tata Motors declined 3% after Daimler AG sold its 5.3% stake that it held since 1954.[/R]

The Sensex index in India decreased 50.06 or 0.29% to 17,052.54 and CNX Nifty index fell 22.50 or 0.44% to 5,101.50. Among the Sensex 30 stocks, 11 rose and 19 fell.

The Sensex has gained nearly 100% after it reached a 52-month low a year ago.

On BSE trading, 1,084 stocks advanced, 1,826 declined and 60 were unchanged. Auto and banking stocks saw mixed trend.

Tata Motors dropped nearly 3% after Daimler AG sold 5.3% stake in the automaker it held since 1954.

Ten software stocks rose by 0.33% to 3.10% as a better-than-expected report about the US job market lifted confidence about the economic recovery in the world''s biggest economy.

The Rajya Sabha passed with only one vote in opposition to the historic Women''s Reservation Bill that reserves 33% of legislative seats in the Lok Sabha and state assemblies for women to vote. The proposal was first introduced 14 years ago.

Only 11% of the Lok Sabha and 9% of the Rajya Sabha members are women.

Rupee edged lower 3 paisa to 45.55 against one dollar.

Gainers & Losers

The Bank of Rajasthan Ltd fell 6.7% to Rs 62.20 a day after the Reserve Bank of India ordered a special audit of the accounts of the bank after it found lapses in corporate governance and disclosure norms.

Exide Industries Limited increased 4.2% to Rs 114.85 after the storage batteries plans to sell as many as 50 million shares to institutional investors.

Jet Airways (India) Limited dropped 2.1% to Rs 493.20 and the company abandoned its plans to raise Rs 900 crore or $200 million by selling shares to foreign investors in the current fiscal after the founder Naresh Goyal had second thoughts about a significant decline in his stake.

Jagran Prakashan Limited dropped 3.7% to Rs 117.75 after the media and communications company, UK''s Independent News & Media sold 7.5% stake in the company for Rs 255 crore in the secondary market.

Kale Consultants Limited increased 8.3% to Rs 92.60 after the company secured an order for one of its airline software products for an undisclosed sum.

Man Industries (India) Limited added 3.7% to Rs 66.70.

Maruti Suzuki India Limited rose 2.0% to Rs 1,506.00 on the reports that the parent Japan based Suzuki Motor raised its stake in the company to 55%.

Nissan Copper Ltd fell 1.1% to Rs 41.50 after Danial Investment, a promoter group company, pledged seven lakh shares representing 4.81% stake of the firm.

NMDC Limited dropped 6.8% to Rs 373.30 after the state controlled miner set the secondary offering price band between Rs 300 and Rs 350 a share.

Rama Paper Mills Limited dropped 3.0% to Rs 14.68 and extended the gains for the fifth consecutive day after the company said it is investing Rs 200 crore to set up a power plant of 50 megawatt to lower the energy costs.

SEL Manufacturing Company Limited rose 0.6% to Rs 84.70 after the textile maker today announced to set up a spinning unit with the capacity of 195,840 spindles in Madhya Pradesh.

Tata Motors Limited fell 2.8% to Rs 772.50 after Daimler AG sold its 5.3% stake at 750 rupees per share after holding the stake in the company since 1954.

The company had acquired the stake as a part of 15-year partnership to assemble commercial vehicles in India. Tata Sons acquired 4 million and Citigroup controlled fund acquired 4.6 million of the 25.6 million shares sold by Daimler.