Sensex falls by 111 pts on weak global trend

MUMBAI: In volatile trading, the Bombay Stock Exchange benchmark fell for the second day today losing 111 points after a surprise rate hike in China spooked Asian peers and Coal India mega IPO continued to drain out funds.

The 30-share barometer dropped by 110.98 points to close at 19,872.15 on brisk selling in heavy-weight stocks led by metal, realty and consumer durables. It shuttled between 19,822.66 and 20,043.82 points during the day.

The index had lost 186 points yesterday. Similarly, the broad-based National Stock Exchange index Nifty lost 45.20 points to settle below the crucial 6,000 level at 5,982.10 points.

General investors and major players encashed every rise in the market to drain out funds for investing in the ongoing mega Coal India IPO, brokers said.

Selling pressure further deepened on weakening global trend after surprise rate hike by China, for the first time in three years, raised concerns over slowdown in global economic recovery, they added.

Asian equities fell today after China raised one-year lending and deposit rates by 25 basis points, boosting borrowing costs for the first time since 2007. A gauge of raw-material producers in the MSCI Asia Pacific Index dropped 1.1 per cent.

Metal stocks were major losers on fears that demand from the largest consumer of base metals, China, might plunge. The impact was also noticed on banking stocks.

The metal sector index lost 2.22 per cent, the most among 13 sectoral indices, to close at 16,892.14 points. Sterlite Industries, the biggest copper and zinc producer, dropped by Rs 6.25 to Rs 170.25 as raw material prices declined.

However, a rise in stocks of capital goods, healthcare and refinery sectors saved the market from any major fall.

The heaviest in the Sensex, Reliance Industries, rose by Rs 4.85 to Rs 1,048.70 and second-heaviest Infosys by Rs 6.95 to Rs 3,019.25. The two carry nearly 23 per cent weightage in the Sensex.

In 30-BSE index components, 21 closed with losses while other nine ended in the positive zone.

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Cement prices up 40% in a month

BANGALORE: After water and power problems, soaring cement prices have thrown a spanner in the wheel of infrastructure development . And most developers and people building independent homes are stumped for a solution.

In the past month, this has severely hit house-building budgets as cement constitutes 25% of the overall cost.
From Rs 165 for a 50 kg bag in the first week of September , cement is now being sold in some cases at as high as Rs 285. Even at this price, it's not easily available , according to builders. Some builders allege that cement manufacturers have cartelized and have deliberately cut production in order to raise prices. "This is happening too often and the government should have a regulatory body to curb it," said Dayananda Pai, managing director of Century Builders. J C Sharma, MD of Sobha Developers , says cement prices have increased by 40% in the last one month. "It is sudden and unprecedented ," he said.

Builders are passing on the cost increase to consumers . "But what about individuals who have taken bank loans and invested their savings into building a house? They'll be hit hard. Already many projects have come to a standstill," said Pai.

It is said that the government has referred the issue to the Competition Commission of India.

"The government needs to direct leading players — India Cements, Birla (UltraTech ) cements, ACC, Bharathi Cement and others — to produce to capacity . Then cement will be easily available and the cost too will not double,'' said Sharath Reddy of Sindhya Builders. Cement manufacturers deny there is any cartelization . T S Krishnaswamy , marketing head, TN Region, India Cements, said short supply of power and increased cost of coal have resulted in drop in cement production. Builders, however, don't buy this argument . "Coal price has increased by 5-10 %. How can that lead to an 80% increase in cement price?" asks Pai.

Civil engineer Vasudev Rao said many construction workers, civil engineers and contractors, especially those working on individual units, will be out of jobs if the high cement prices continue.

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Battle for Bihar: Phase 1 of polling begins

PATNA: The first phase of Bihar assembly elections began on Thursday in 47 constituencies across the Kosi-Seemanchal and Mithilanchal belts. In a first in Bihar, the constituencies in the first phase have placed under air surveillance for which the Election Commission has requisitioned "adequate number" of Indian Air Force choppers.

On the ground, state DGP Neelmani said on Wednesday, "85% of the 10,868 booths will be guarded by Central forces."

Around 1.07 crore voters in the region are eligible to decide the fate of 631 candidates in the first lot of the 243 assembly constituencies, most of them in rural areas.

The fate of 631 candidates is to be decided in the first phase. These include the wives of two dons, Anand Mohan and Pappu Yadav, behind bars, convicted in separate murder cases. Ranjit Ranjan, wife of former MP Pappu, will take on agriculture minister Renu Kushwaha from Bihariganj while Lovely Anand, wife of another former MP Mohan, will fight against revenue and land reforms minister Narendra Narayan Yadav at Alamnagar. While the ministers belong to JD-U, the two women are Congress candidates.

The eight districts going to the polls are Kishanganj, Araria, Purnia, Madhepura, Saharsa, Katihar, Supaul and Mithilanchal, IANS said.

So far, political bigwigs like UPA chairperson Sonia Gandhi, PM Manmohan Singh, AICC general secretary Rahul Gandhi, BJP leader LK Advani, BJP president Nitin Gadkari, and his predecessors M Venkaiah Naidu and Rajnath Singh, as well as UP chief minister Mayawati have campaigned in the state.

One of the highlights of electioneering was a war of words between Manmohan and Nitish, with the CM urging the PM to "give concrete evidence" of charges against him to get them investigated. Nitish also invited Singh for a debate over whether Bihar has progressed during his five-year rule or not.

Polling, which began at 7 am, is scheduled to go on till 3 pm.

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