Lower Inflation Expectations in India

Mayank Mehta
18 Mar, 2010
New York City

The benchmark index in India closed higher with the Sensex trading in the positive territory in 2010. Wholesale inflation index starts its downward trend after food prices increase rise at a slower pace. McNally Bharat wins $39 million coalfield equipment order.

[R]6:00 PM Mumbai, 8:30 AM New York – The benchmark index in India closed higher with the Sensex trading in the positive territory in 2010. Wholesale inflation index starts its downward trend after food prices increase rise at a slower pace. McNally Bharat wins $39 million coalfield equipment order.[/R]

The Sensex index in India increased 29.18 or 0.17% to 17,519.26 and CNX Nifty index rose 14.00 or 0.27% to 5,245.90. Among the Sensex 30 stocks, 17 rose and 13 fell.

On BSE trading, 1,260 stocks advanced, 1,566 declined and 104 were unchanged. FMCG and capital goods shares declined while bank and metal shares moved higher.

The wholesale price index increased 0.9% to 282.1 from 284.7 for the previous week. For the year ending in the previous week average inflation surged to 14.16% compared to 5.06% in the same period a year ago.

The food price index rose 16.30% in the year to March 6, lower than an annual rise of 17.81% in the previous week, continuing a downward trend for the second straight week according to the statistics bureau.

United Bank of India was trading at Rs 73 a 10.60% premium over the initial public offer price of Rs 66.

Rupee edged lower 9 paisa to 45.43 against one dollar.

Gainers & Losers

Bajaj Electricals Limited increased 3.3% to Rs 212.05 after the 37.2% of outstanding shares changed hands in multiple bulk transactions.

Engineers India Limited rose 3.0% to Rs 2,410.00 after the engineering contractor provider is mulling bonus issue and stock split in its proposed board meet that is scheduled to meet on March 23.

Fedders Lloyd Corporation Ltd surged 9.4% to Rs 84.10 after the company today announced that its power division secured orders of Rs 257 crore from M.P. Madhya Kshetra Vidyut Vitaran Co., Bhopal.

Glenmark Pharmaceuticals Limited rose 0.1% to Rs 243.15 after Glenmark Generics, a subsidiary of the company, received an approval from the US drug regulator for a generic drug.

Infosys Technologies Limited rose 1.0% to Rs 2,766.50.

Idea Cellular Limited increased 3.9% to Rs 66.90 after the mobile operator said that the regulators did not find any discrepancy in the company’s license fees revenues paid to the government.

Kohinoor Foods Limited rose 1.0% to Rs 57.40 after the company said one of the promoters increased stake in the firm.

Kovai Medical Center & Hospital Limited surged 11.3% to Rs 132.00 on the media speculation that Apollo Hospitals is looking to acquire a stake.

McNally Bharat Engineering Co. Limited rose 0.8% to Rs 276.90 and the company won a project of Rs 173.20 crore for coal handling plant with silo loading arrangement at Bharatpur siding of Mahanadi Coalfields in Sambalpur, Orissa.

Rain Commodities Limited fell 1.7% to Rs 221.70 after the cement trader reported fourth quarter net profit slumped 64.9% to Rs 2.48 crore.

S Kumars Nationwide Limited surged 15.5% to Rs 55.75 after the textiles firm is looking to file initial public offering Reid and Taylor, in which it holds about 75% stake, within the next one year.

Tata Teleservices (Maharashtra) Limited increased 4.8% to Rs 24.70 after the company agreed to sell its telecom towers for an enterprise value of Rs 1,318 crore to Wireless-TT Info Services also known as Tata Quippo.

Thomas Cook (India) Limited fell 1.6% to Rs 64.10 an integrated travel and travel-related financial services company 2009 net profit declined 33% to Rs 25.01 crore.

Western India Shipyard Limited climbed 4.9% to Rs 12.75 after the company received an order from the UAE for the ship repair to be completed in less than a month worth Rs 10.80 crore.