RBI in India in a surprise Rate Hike, Bharti Up

Mayank Mehta
19 Mar, 2010
New York City

Reserve Bank of India raised its key lending rate by 25 basis points to cool the inflation that has been inching close to 18% and hovering near 16-month high. Bajaj Auto revs its plan to launch a small car to meet the growing demand.

[R]6:00 PM Mumbai, 8:30 AM New York – Reserve Bank of India raised its key lending rate by 25 basis points to cool the inflation that has been inching close to 18% and hovering near 16-month high. Bajaj Auto revs its plan to launch a small car to meet the growing demand.[/R]

After the Mumbai markets closed, the Reserve Bank of India increased key lending rates by 25 basis points.

The central bank raised reverse repurchase rate to 3.5% from the record low of 3.25% and repurchase rate to 5% from 4.75% according to the directive posted on the bank’s Web site.

The rate was increased ahead of the next central bank meeting scheduled on April.

The Sensex index in India increased 58.97 or 0.34% to 17,578.23 and CNX Nifty index rose 16.90 or 0.32% to 5,262.80. Among the Sensex 30 stocks, 17 rose and 13 fell.

On BSE trading, 1,381 stocks advanced, 1,459 declined and 111 were unchanged. Reliance Industries surged in late rally.

The central government today approved 8% increase in dearness allowance for government employees and pensioners with effect from January 1. The increase will add to the national government budget spending by Rs 6,970 crores a year.

Rupee edged lower 2 paisa to 45.46 against the dollar.

Gainers & Losers

Amtek Auto Limited climbed 2.9% to Rs 182.75 after the company''s equity changed hands in multiple bulk deal.

Bajaj Auto Limited climbed 1.6% to Rs 1,869.50 after a joint venture between Nissan Motor Co. and Bajaj Auto Ltd. are working to make a car that will match the price of Tata Motors'' Nano, the Hindu Business Line newspaper reported Friday.

BEML Limited rose 2.1% to Rs 1,072.10 after the company announced that it has secured an order of Rs 632 crore from the Ministry of Defence for supply of 788 vehicles BEML Tatra variants.

Bharti Airtel Limited rose 3.3% to Rs 310.15 after the company submitted its application for 3G spectrum for all 22 service areas. Separately, the company signed an agreement with Apple Inc to sell iPhone in India.

Exide Industries Limited fell 0.5% to Rs 116.00.

Fedders Lloyd Corporation Ltd rose 2% to Rs 81.75 after the company secured contracts aggregating Rs 257 crore.

Kovai Medical Center & Hospital Limited dropped 2.0% to Rs 129.00 after the company denied report it is selling stake to larger rival Apollo Hospitals.

Manappuram General Finance and Leasing Limited increased 4.1% to Rs 797.90 after the company''s board approved a 5-for-1 stock split and a one-for-one bonus issue.

Mahanagar Telephone Nigam Limited rose 3.1% to Rs 75.10 after the company said 25,000 new GSM mobile subscribers have subscribed to MTNL 3G service in the first ten days of its trial offer launch.

McNally Bharat Engineering Co. Limited rose 2.7% to Rs 281.10 after the company was awarded a project of Rs. 173.20 crore for coal handling plant with silo loading arrangement at Bharatpur siding of Mahanadi Coalfields in Sambalpur, Orissa.

MSK Projects (India) Limited surged 17% to Rs 149.90 after the Steel pipemaker Welspun Gujarat Stahl Rohren said its unit would make an open offer to acquire a 75% stake in construction firm to start its infrastructure business.

Poly Medicure Limited fell 1.0% to Rs 225.00 after the company fixed March 29 record date for bonus issue.

Punj Lloyd Limited added 0.7% to Rs 173.60 after the infrastructure solutions provider secured an overseas order of $40 million from Abu Dhabi Gas Industries, UAE for an engineering, procurement and construction project.

Strides Arcolab Limited gained 4.1% to Rs 353.35 after the Aspen Pharmacare, Africa''s generic drugs maker, will sell its 50% stake in global oncology joint ventures to joint owner India''s Strides Arcolab for $117 million.

TTK Prestige Limited gained 9.0% to Rs 543.00 after the company plans to launch a new range of cooking stoves.

Welspun Gujarat Stahl Rohren Limited rose 0.7% to Rs 281.20 after the company announced that the company has won orders of Rs 600 crore for Pipes from its clients.