Sensex trims early gains on inflation worries

Sensex trims early gains on inflation worries
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First Published: Fri, Apr 11 2008. 11 25 AM IST
Updated: Fri, Apr 11 2008. 11 25 AM IST
PTI
Late morning update
Mumbai: The Bombay Stock Exchange benchmark Sensex failed to maintain early gains as investors booked profits at higher levels ahead of the release of data on inflation and industrial production later in the day.
The Sensex was quoted at 15,786.62 at 1030 hrs, up 91.52 points from its last close of 15,695.10, but sharply down from its early high of 15,897.11.
The broader 50-share S&P CNX Nifty of the National Stock Exchange was up 30.30 points or 4,763.30 at 1030 hrs from its previous close of 4,733.00.
Investors adopted a cautious approach on concerns over high inflation, with the government admitting that rising food prices would make the task of containing inflation a more difficult exercise, brokers said.
Prime Minister Manmohan Singh said yesterday that the rising food prices may hurt economic growth and reforms process, but ruled out any “blind controls” to rein in the increasing rates.
Attributing initial surge to encouraging global cues, brokers said high inflation would force the government to take stringent monetary measures, including hike in the CRR, which could affect the market sentiment.
Opening
Mumbai: The Bombay Stock Exchange benchmark Sensex today opened higher by over 178 pointS in early trade on emergence of fund-buying in heavy-weight shares, led by realty and refinery stocks.
The sensitive index, which lost nearly 95 points on Thursday’s trade, shot up by 178.20 point to 15,873.30 in first five minutes of trade.
National Stock Exchange’s Index, Nifty, rose by 57.25 points to 4,790.25 as stocks like ACC, Reliance Industries and BHEL traded higher.
GMR Infrastructure Ltd. (GMRI IN) added Rs42.2 or 1.6% to 142.95. The company, which runs airports in India, had its stock rated a new “buy” at Citigroup Inc. The brokerage set a share-price target of Rs187 a share.
GVK Power & Infrastructure Ltd. (GVKP IN) rose Rs2.5 or 5.8% to 45.60. The power producer and airport builder had its stock rated a new “buy” at Citigroup. The brokerage set a share-price target of Rs56 a share.
Sasken Communications Technologies Ltd. (SACT IN) gained Rs10.15 or 8.3% to 132. The company’s board will consider a proposal to buy back shares and will meet on 18April to decide the number of shares to be bought back, the company said in a statement to the BSE yesterday.
Tata Teleservices Maharashtra Ltd. (TTLS IN) climbed Rs0.25 or 0.9% to 28.25. The phone-services unit of India’s Tata group secured board approval to separate its transmission towers business from the Mumbai-based company and transfer it to a fully owned unit. The transaction must be approved by regulators and shareholders, according to a statement sent to the BSE.
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First Published: Fri, Apr 11 2008. 11 25 AM IST
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