India Inflation Flirts 20% Mark; Stocks Rest

Mayank Mehta
15 Mar, 2010
New York City

Wholesale inflation hovered at 16

[R]6:00 PM Mumbai, 8:30 AM New York – Wholesale price inflation hovered at 16 –month high in India and food prices index surged to 18%, near two decade high. Indian government faces a short term challenge to contain food inflation as consumers battle runaway food prices. Hindustan Construction, Elder Pharma and Godrej acquire stakes in foreign companies.[/R]

The Sensex index in India decreased 1.63 or 0.01% to 17,164.99 and CNX Nifty index fell 8.10 or 0.16% to 5,128.90. Among the Sensex 30 stocks, 15 rose and 15 fell.

On BSE trading, 984 stocks advanced, 1,839 declined and 70 were unchanged. Banking and realty stocks fell on rate-hike worries as headline inflation reached 16-month high.

Annual rate of inflation measured in wholesale price index increased to 9.89% in February compared to 3.50% a year ago. The index increased 0.6% to 250.1 from 248.5 in January.

The wholesale food price index rose 17.79%.

Rupee edged lower 13 paisa to 45.56 against the dollar.

Gainers & Losers

ARSS Infrastructure Projects Limited rose 0.2% to Rs 753.35 after the newly listed company won orders of Rs 207.86 crore in the two months ending on March 12.

Bosch Limited rose 0.9% to Rs 4,697 after the automotive products maker lifted lockout at its Naganathapura plant, Bangalore as of March 13.

Elder Pharmaceuticals Ltd fell 0.9% to Rs 362.00 after the company agreed to pay $12 million to raise its stake in Bulgarian subsidiary Elder Biomeda to 61% from the current 51%, according to a Dow Jones report.

Godrej Consumer Products Limited increased 3.1% to Rs 279.50 after the company agreed to buy personal care company Tura from Nigeria''s Tura Group.

Hindustan Construction Company Limited fell 0.07% to Rs 142.70 after a joint venture of the company secured an order of Rs 197 crore.

The company also agreed to acquire 66% stake in Karl Steiner AG for 35 million Swiss francs and will acquire the rest of the holding at a pre-agreed price in 2014. The Swiss real estate developer and general contractor has construction volume of 1.3 billion Swiss francs in 2008 and employs 546 people according to its Web site.

Hindustan Unilever Limited climbed 2.7% to Rs 225.70 after correcting 8% in the preceding two sessions.

Housing Development Finance Corporation Limited fell 1.4% to Rs 2,676.20 after the company''s advance tax payment for fourth quarter was unchanged at Rs 280 crore.

Infosys Technologies Limited added 0.3% to Rs 2,683.00.

KSB Pumps Limited rose 0.04% to Rs 472.00 after the company reported net profit rose 6.8% to Rs 17.31 crore.

Larsen & Toubro Limited dropped 0.7% to Rs 1,553.00 after the construction and engineering firm said on Monday it had received an order of Rs 2,035 crore or $445 million to set up an aromatics complex for ONGC Mangalore Petrochemicals Ltd.

Mercator Lines Limited advanced 2.3% to Rs 58.70 after the company said it has acquired a 1993-built tanker and has also deployed the vessel on contract.

NMDC Limited fell 4.3% to Rs 346.90 after the government set the issue price for the company''s follow-on public offer at the lower end of the Rs 300 to Rs 350 per share price band.

PBA Infrastructure Limited rose 1.7% to Rs 70.35 after the company secured new orders aggregating Rs 95 crore from Sadbhav Engineering for construction works.

State Bank of India fell 1.4% to Rs 2,015.90 after the bank’s fourth quarter advance tax payment rose to Rs 1,857 crore from Rs 1,810 a year earlier.

Tata Consultancy Services Limited gained 2.3% to Rs 815.10 after the company announced that the company and Malaysia Airlines has sealed a five year contract for IT services.

Tata Steel Limited rose 0.4% to Rs 609.95 after the company paid Rs 513 crore as advance tax for fourth quarter March 2010 compared to Rs 406 crore a year ago quarter.

Transport Corporation of India Limited surged 14.9% to Rs 106.35 after the company said its board will meet on March 17 to consider demerger/restructuring of the real estate and warehousing divisions of the company.

Venus Remedies Limited rose 0.7% to Rs 240.20 after the company announced the granting of another product patent by Intellectual Properly Office Government of India for Sulbactomax.