1:00PM New York, 11:30 PM Mumbai - Industrial production rises 4.8% in September. Stocks fall on political uncertainty as state wide polls draw near. Tata Teleservices sell 26% stake for $2.7 billion to NTT DoCoMo of Japan.

Market Sentiment

Indian market averages fell in volatile trading on regional election results anxieties erased gains in the morning. Rise in industrial production lifted the sentiment in the morning but stocks fell sharply in the afternoon on the poll worries in five state wide elections.

In Mumbai, the BSE 30-share Sensex fell 3.1% or 303.36 to 9,536.33, and the CNX Nifty shed 3.1% or 90.20 to 2,848.45.

Of the stocks traded on the BSE 1,678 rose, 848 declined, and 74 were unchanged.

Trading Statistics

Daily turnover on the BSE fell to 3,680 crore rupees from 3,731.03 crore rupees yesterday.

Industrial Production Rises 4.8% in September

The Central Statistics Organisation reported today that the country’s index of industrial production advanced 4.8% to 273 in September from the same period a year ago and cumulative growth in April-September period increased to 4.9% from last year.

Production indexes that track activities in the mining, manufacturing and electricity sectors jumped 5.7% to 162.8, 4.8% to 294.4, and 4.4% to 219.3 respectively.

Nine of the 17 industry groups reflected positive growth in September from comparable period a year ago.

Transport equipment and parts industry climbed 16.8% followed by machinery and equipment other than transport equipment rose 16.1%.

Metal products and parts, excluding machinery and equipment increased 12.8%. Basic goods rose 4.6%, capital goods jumped 18.8% and intermediate goods slid 3.3% in the period.

Polls Uncertainties

Five states will go to the polls in the coming weeks. The polls will precede next year’s national election that will test the popularity of the current ruling party alliance.

Elections will be held in two phases on November 14 in Chhattisgarh, followed by Madhya Pradesh on November 25, while Delhi and Mizoram will go to the polls on November 29. Rajasthan elections are scheduled for December 4.

Results of these elections are expected on December 8.

Tata Teleservices Sell Stake to NTT DoCoMo

NTT DoCoMo Inc, the largest mobile carrier in Japan agreed to take a stake in Tata Teleservices Ltd. Japanese carrier will pay $2.7 billion for 26% stake in the fourth largest mobile carrier in India. Mobile subscriber base in India is growing at 50% a year and recently crossed 315 million, only second largest to China and larger than in the U.S.

NTT DoCoMo only five months ago agreed to pay $350 million or 30% stake in TM International Ltd. in Bangladesh.