6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai trading declined as investors gauge the demand for the Rural Electrification Corporation secondary offering. Government borrowing in the fiscal 2011 year is expected to exceed $97 billion in the current year.
The Sensex index in India decreased 136.21 or 0.83% to 16,191.63 and CNX Nifty index fell 42.85 or 0.88% to 4,844.90. Among the Sensex 30 stocks, 4 rose and 26 fell.
On BSE trading, 786 stocks advanced, 2,010 declined and 70 were unchanged. Realty, metal, auto, IT and banking stocks fell. Reliance Industries edged lower.
C. Rangarajan, the prime minister''s economic adviser, today said that economy is likely to grow at least 7.2% in the current fiscal year ending March.
The wholesale price inflation is expected around 8.5% by the end of March, Rangarajan said. He also said that the government''s market borrowing in the next fiscal year ending March 2011 is likely to be around or slightly lower than Rs 4,51,000 crore ($97 billion) in the current fiscal year.
The follow-on public offer of Rural Electrification Corporation received lackluster response from investors. The FPO was subscribed 0.2 times on the first day of bidding for the issue today, February 19. The government has set the floor price of Rs 203 per share.
Thangamayil Jewellery settled at Rs 71.10, a 5.2% discount from the issue price of Rs 75 per share. The stock debuted at Rs 70, a 6.7% discount over the issue price.
ICICI Bank, State Bank of India fell 1.05% and 1.79%.
Rupee edged lower 16 paisa to 46.44 against one dollar.
Gainers & Losers
Bartronics India Limited added 2.2% to Rs 158.65 after the company''s board approved preferential allotment of shares and warrants to promoters and non-promoters.
Bharat Heavy Electricals Limited dropped 0.8% to Rs 2,354.00 and the company plans to sign a pact with UK based Sheffield Forgemasters next week to upgrade its operations.
Hindustan Copper Limited rose 0.6% to Rs 561.65 on bargain hunting after the stock corrected over 4% in the two trading sessions.
Indsil Hydro Power and Manganese Limited rose 1.0% to Rs 65.55 after the company with the Muscat Overseas Group of Oman to form a joint venture for the purpose of setting up 75,000 tons a year ferro-chrome smelter in the Sultanate of Oman.
Jaihind Projects Limited decreased 1.5% to Rs 169.00 after the engineering company secured two orders from Gujarat State Petronet Limited for Rs.47.96 crore.
JSW Steel Limited fell 3.3% to Rs 1,025.00 the stock surged 10% in five days.
Mahanagar Telephone Nigam Limited rose 0.8% to Rs 75.55 after the providing of fixed-line and other basic telecommunications services has been designated as the Telecom Service Provider for the Commonwealth Games, 2010. The central government cabinet today approved a budget of Rs.182 crore for the project.
Maruti Suzuki India Limited rose 0.8% to Rs 1,372.95 after the senior official of the company told to reporters that the firm will add 3,000 employees in the next three years.
Rolta India Limited fell 2.5% to Rs 180.60 after the computer aided design service provider promoters pledges additional shares.
Reliance Industries Limited fell 1.0% to Rs 987.00 after the company may raise its offer for LyondellBasell that will include cash and stock options for shareholders and creditors.
SpiceJet Limited increased 3.1% to Rs 56.85 after the airline company which is scouting for investors to raise $50 million to $75 million for expansion, is in talks with media baron Kalanithi Maran to sell its stake, according to several media reports.