Sensex in India Defies Inflation Surge

123jump.com Staff
25 Mar, 2010
New York City

Mumbai investors showed higher risk appetite despite elevated wholesale inflation. Reserve Bank of India is increasingly likely to raise rates and sacrifice growth in the short term. Kuwait based Zain is near agreement to sell its African mobile telecom business to Bharti Airtel.

[R]6:00 PM Mumbai, 8:30 AM New York – Mumbai investors showed higher risk appetite despite elevated wholesale inflation. Reserve Bank of India is increasingly likely to raise rates and sacrifice growth in the short term. Kuwait based Zain is near agreement to sell its African mobile telecom business to Bharti Airtel.[/R]

Stocks in Mumbai recovered from earlier losses to close higher. Latest data from the statistics bureau showed wholesale inflation at elevated level. Bharti and Zain are in the final stages of purchase of Zain’s African mobile telecom services.

The wholesale price index increased 0.1% to 282.3 from 282.1 for the previous week. For the year ending in the previous week average inflation surged to 13.88% compared to 4.91% in the same period a year ago.

The Sensex index in India increased 107.83 or 0.62% to 17,568.85 and CNX Nifty index rose 35.10 or 0.67% to 5,260.40. Among the Sensex 30 stocks, 18 rose and 12 fell.

On BSE trading, 1,311 stocks advanced, 1,535 declined and 76 were unchanged. Reliance Industries reversed early losses. Banks and realty stocks rose.

Rupee edged lower 9 paisa to 45.69 against one dollar.

Gainers & Losers

Aplab Limited dropped 1.9% to Rs 38.00 after the company announced that at Thane factory some members of General Mazdoor Sabha are on sit down strike from March 23.

Bajaj Auto Limited added 1.5% to Rs 1,879.55 after the company is targeting sales incrase of 40% to 40 lakh vehicles in the next fiscal year.

Bharti Airtel Limited added 1.0% to Rs 310.00 after Kuwaiti telecoms firm Zain approved the sale of most of its African assets to the company for Rs 48,600 crore.

Cairn India Limited rose 1.3% to Rs 296.60 after the company is planning to begin drilling activities in the Ravva field of Krishan-Godavari basin from October.

Compact Disc India Ltd surged 9.9% to Rs 87.20 after the company announced the animation contract for a feature film on Hitler valued at $82 million.

Educomp Solutions Limited rose 1.1% to Rs 769.15 after the education content and service provider will open around 75 Indian Institute of Technology coaching centers in the next fiscal year.

Emami Limited advanced 2.8% to Rs 602.45 after the company plans to set up a new newsprint facility at Orissa for an investment of Rs 500 crore.

Hero Honda Motors Limited rose 4.3% to Rs 2,022.55 after the company plans to issue a special dividend.

Indiabulls Real Estate Ltd fell 0.03% to Rs 145.60 after the company said promoters have pledged more than 3.56 crore shares representing 8.87% of the equity capital of the company.

Larsen & Toubro Limited rose 1.7% to Rs 1,639.90 after the company announced that its subsidiary in the Middle East secured six orders of Rs 1,181 crore for power transmission & distribution works.

Micro Technologies (India) Limited rose 0.9% to Rs 190.60 after the retail subsidiary plans to expand in Kuwait.

Natco Pharma Limited surged 14.1% to Rs 150.45 and the company plans to re-launch its breast cancer drug, Albupax, according to a report by Business Line report.

Patni Computer Systems Limited added 2.7% to Rs 546.00.

Plethico Pharmaceuticals Limited gained 8.4% to Rs 388.00 and the company plans to raise $100 million through securities and debt offering.

PVR Limited rose 1.7% to Rs 177.65 after Thailand''s Major Cineplex said it is looking to raise its stake in the Indian company.

Sadbhav Engineering Limited advanced 2.3% to Rs 1,318.80 after the infrastructure company arranged financing for its project in Andhra Pradesh through its special purpose vehicle Hyderabad Yadgiri Tollway.

Simmonds Marshall Limited dropped 2.0% to Rs 145.90 after the stock surged more than 10% in previous two days of trading.

Suven Life Sciences Limited rose 3.0% to Rs 35.05 and the stock rose 41% in last one week of trading.

Tata Motors Limited slipped 5.4% to Rs 718.40.