Indian Stocks, Inflation Rise; Putin Visit

Mayank Mehta
11 Mar, 2010
New York City

Stocks in Mumbai closed higher in the final fifteen minutes of trading. The wholesale inflation in the previous week was recorded at elevated level but larger crops of lentils and sugarcane is expected to make a dent in inflation. Russia and India are expected to sign nuclear reactor contract.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai trading closed higher in the final fifteen minutes of trading. The wholesale inflation in the previous week was recorded at elevated level but larger crops of lentils and sugarcane is expected to make a dent in inflation three months. Russia and India are expected to sign nuclear power plants and defense contracts during Prime Minister Putin visit this week.[/R]

The wholesale price index increased 0.4% to 284.7 from 283.7 for the previous week. For the year so far average inflation was 15.08% compared to 5.55% in the same period a year ago.

Russian Prime Minister Vladimir Putin is scheduled to visit India today and is accompanied with a delegation of defense and chemical industries. India is scheduled to sign several defense contracts with Russia. ZAO Alrosa expects to sign two separate contracts to sell $490 million of diamonds to two private diamond dealers Rosy Blue and Ratilal Becharlal & Sons.

The Sensex index surged in the last fifteen minutes to a gain of 69.63 or 0.41% to 17,167.96 and CNX Nifty index rose 17.15 or 0.34 % to 5,133.40. Among the Sensex 30 stocks, 15 rose and 15 fell.

On BSE trading, 1,058 stocks advanced, 1,782 declined and 81 were unchanged. Banks and IT stocks rose but auto stocks fell.

Man Infraconstruction closed up 48% to Rs 372.60 a 47.9% from the initial public offer price of Rs 252. The company sold 56.3 lakh shares or 5.63 million shares in the offering.

State Bank of India rose 0.45% and Chairman OP Bhatt said the bank is looking at tapping the retail bond market next year with a 10-year bond issue of between Rs 50 crore and Rs 100 crore.

Rupee edged lower 7 paisa to 45.45 against one dollar.

Gainers & Losers

Sugar industry stocks declined sharply for the second day in a row after international prices declined to a seven-month low of 19 cents a pound in New York trading.

Balrampur Chini Mills Ltd decreased 3.5% to Rs 96.55 and Shree Renuka Sugars Ltd dropped 5.5% to Rs 163.25.

Gammon India Limited climbed 1.6% to Rs 232.75 after the engineering contractor won a project by Delhi Tourism and Transportation Development Corporation. The project work includes construction of bridge and its approaches over river Yamuna, Wazirabad, Delhi for Rs 632 crore.

GEI Industrial Systems Ltd gained 6.1% to Rs 102.30 after the company secured order of Rs 54.46 crore.

Hindustan Unilever Limited dropped 3.9% to Rs 229.50 after the company's competitor Procter & Gamble raised the weight of its 'Tide Naturals' detergent powder by 25%, effectively offering consumers lower pricing.

IVRCL Infrastructures & Projects Limited rose 1.2% to Rs 330.00 after the IVR Prime Urban Developers, a subsidiary of IVRCL Infrastructures and Projects, has issued 1,500 secured redeemable non-convertible debentures and raised Rs 150 crore in a private placement.

Jubilant Food Works Ltd decreased 3.2% to Rs 276.85 and chief executive of Patrick Doyle of Domino’s Pizza Inc said in New Delhi that India franchisee sales will be in top five markets worldwide. Separately, Yum! Brands Inc, the owner of Pizza Hut is targeting $100 million net income in India by 2015.

Kirloskar Pneumatic Company Limited added 4.2% to Rs 414.10 after the compression systems and transmission products maker secured an order of Rs 118 crore.

K.M. Sugar Mills Ltd rose 0.8% to Rs 36.15 after the company fixed March 29 as the record date for a 5-for-1 stock split.

LIC Housing Finance Limited rose 2.4% to Rs 807.80 after the company is keen to apply for a banking license following the Government's decision to open up the banking sector to more private entities.

McNally Bharat Engineering Co. Limited rose 2.5% to Rs 282.40 after the company said that it secured an order for flood lighting along Indo- Bangladesh border in the State of Tripura for National Projects Construction Corporation Ltd. The project is valued at Rs 24.38 crore and is to be completed within 11 months.

Nitin Fire Protection Industries Limited dropped 4.7% to Rs 381.00 after the company chairman pledged shares for a loan.

Simplex Projects Limited advanced 4.5% to Rs 216.10 after the engineering contractor won a car parking facility contract of Rs 40 crore at Pan Bazaar in Guwahati, West Bengal.

Suprajit Engineering Limited climbed 4.9% to Rs 171.90 after the company fixed March 20 as the record date for a 5-for-1 stock split and one-to-one bonus.

Pidilite Industries Limited increased 3.5% to Rs 236.60 after the company fixed March 17 as the record date for a one-to-one bonus.

Tilaknagar Industries Ltd the alcoholic beverage brewer fell 3.1% to Rs 111.95.

Triveni Engineering & Industries Limited rose 0.08% to Rs 121.60 after the sugar and engineering company is looking to spin off its steam turbine business into a wholly owned unit.

Wintac Limited surged 9.9% to Rs 36.55 after the company said its board will meet on March 18 to consider the rights offering.