The benchmark index Hang Seng in Hong Kong shed 0.2% to 19,134.88. China Life added 0.5%. ICBC, China biggest lender by assets, finished 0.2% higher. China Mobile fell 1.7%. The Shanghai Composite Index, which tracks both Class A and Class B shares, closed up 0.3% at 2,937.91. Bank of China closed up 3.3%, Industrial & Commercial Bank of China rose 2.6% and midsize Shanghai Pudong Development Bank advanced 2.8%.

The Korea Composite Stock Price Index, or Kospi, settled down 0.02% at 1,423.58. The stock market finished flat after losses in banks and shipbuilders were countered by robust gains in transportation stocks. The Weighted Price Index of the Taipei Stock Exchange slid 0.07% to 7,568.20 and Australian benchmark S&P/ASX 200 index rose 0.1% to close at 5,830.2.


8:00AM NY-7:00PM Mumbai; Sensex tumbles on higher inflation and cement prices.
The Sensex on BSE closed 164.36 points, or 1.26%, lower at 12,884.99. The market-breadth was negative as 1,308 stock declined, 1,098 advanced and 60 were unchanged. Of the 30 stocks in the Sensex 6 advanced, while the rest declined. The turnover on BSE was Rs 4,339.08 crore. The turnover on NSE was Rs 9,641.18 crore, higher than Rs 7,954.06 on Thursday.

Economic news

The annual inflation rate was just above 6% in late February, thus keeping alive the prospect of another hike in interest rates. Data on Friday showed wholesale price index rose 6.10% in the 12 months to Feb. 24, little changed from the previous week annual increase of 6.05%. Wholesale price-based index inflation rate stood at 4.18% during the corresponding week last year.

Morgan Stanley, Citigroup and Actis have agreed to buy a total of 6% in NSE for an undisclosed amount. While Morgan Stanley will purchase 3% equity stake in NSE, Citigroup and Actis will buy 2% and 1%, respectively. The Bombay Stock Exchange Ltd announced on Wednesday, February 7, that it was selling a 5% stake to Singapore Exchange at Rs 5,200 per share.

The cement companies today promised to keep prices stable for a year even if the costs of inputs go up. The companies, however, refused to roll back the recent hike which has been done because of rise in excise on 50-kg bags costing Rs 190 or more.

The government said that there is no ceiling on export credit given by public sector banks to small-scale companies. Finance Minister P Chidambaram said that banks usually sanction the working capital, including export credit, after assessing individual customer performance.

IPO

Idea Cellular, a leading mobile operator in India, made a strong debut on the bourses today, opening at Rs 85, with 13.33% premium and touched an intraday high of Rs 92 supported by strong buying interest from investors despite volatility in the markets. It ended at Rs 85.70, up 14.27%.

Trading highlights

New issues Idea Cellular was the most-active stock with a turnover of Rs 559.20 crore followed by Century Textiles and MindTree Consulting.

Advancers

NTPC led the gainers, up 2.7%, to Rs 140. The company is planning to float a subsidiary for its international operations and build a 700 Mw gas-based power plant in Nigeria and 500 Mw thermal power plant in Sri Lanka.

Hero Honda was up 2.5% to Rs 690, Tata Steel gained 1.5% at Rs 434.

Tata Steel surged after it acquired 100% stake in Rawmet Industries Private, a company having its registered office in Kolkata, for an enterprise value of Rs 101 crore.

Decliners

Cement shares were down sharply after India''s cement companies agreed to hold prices of the key building material for a year. Grasim slumped 7.5% to Rs 2,069, ACC tumbled over 6% to Rs 781, and Gujarat Ambuja shed 2.6% to Rs 110. India Cements plunged over 8% to Rs 153, and UltraTech Cement plummeted 4.8% to Rs 780.

Other decliners included BHEL and ITC declining around 3.5% each to Rs 2,095 and Rs 154, respectively. Cipla shed 3.2% to Rs 229 and Hindalco tumbled 3.1% to Rs 128.