India's Exports Surge; 3G Auction Reaches $1.4 B

Mayank Mehta, Chandrasekhar Atreya and Darlington Musarurwa
11 May, 2010
New York City

Stocks in Mumbai traded lower after a surge tracking global markets rebound. The ongoing 3G spectrum auction prices reach a record $1.4 billion. Exports in March soared 54%, fifth monthly increase in a row but declined 4.7% in the fiscal year ending in the month.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded lower after a surge tracking global markets rebound. The ongoing 3G spectrum auction prices reach a record $1.4 billion. Exports in March soared 54%, fifth monthly increase in a row but declined 4.7% in the fiscal year ending in the month.[/R]

The Sensex index fell on investor concern that yesterday’s biggest one-day advance in ten months may have exceeded the earnings outlook. The rupee fell against the dollar.

National Stock Exchange Volatility index touched 27.4 on May 7, the highest level since February 26.

Overseas investors sold a net Rs. 1,590 crore of Indian equities on May 7, making their total stock purchases this year to Rs 26,970 crore, according to the SEBI, the market regulator.

The ongoing 3G spectrum auction on the day 26 for the pan-India license provisional prices surpassed Rs 13,000 crore. At the end of 148 rounds of e-auction the estimated revenue collections from the auction touched Rs 54,000 crore. When the bidding resumes, price for circles with excess and on-par demand will be raised and will remain the same for circles with deficient demand.

Exports in March soared 54.1% for the fifth month in a row to $19.92 billion from $12.91 in the same month last year. The exports in fiscal 2009-10 declined 4.7% to $176.57 billion from $185.3 billion in the prior year.

Carrefour SA, the European retailer plans to open its first wholesale store in New Delhi in the next few months, said Managing Director of India operations Jean Noel Bironneau while addressing reporters in New Delhi today. He said the company will work with franchises to meet India’s legal and regulatory requirements.

The Sensex index in India decreased 189.02 or 1.09% to 17,141.53 and CNX Nifty index fell 54.80 or 1.06% to 5,138.80. Among the Sensex 30 stocks, 4 rose and 26 fell.

On BSE trading, 1,173 stocks advanced, 1,603 declined and 96 were unchanged. Metal, realty, telecom and IT stocks fell. Hindalco Industries declined in a weak market despite strong fourth quarter result.

Rupee edged lower 12 paisa to Rs. 44.96 against one dollar.

Gainers & Losers

Advanta India Limited added 0.7% to Rs 495.10 after the company said its board will meet on May 13 to discuss rights issue.

Astral Poly Technik Limited rose 0.2% to Rs 208.00 after the company said its board will meet on May 21 to consider stock split.

Bajaj Hindusthan Ltd decreased 6.5% to Rs 108.85 after the manufacturer of sugar, distillery and power said second quarter sales rose 33.5% to Rs 567.4 crore from Rs 425 crore a year ago. Net profit for the quarter fell 61% to Rs 31.8 crore compared to net profit of Rs 81.4 crore a year ago.

Bharti Airtel Limited dropped 2.2% to Rs 287.70 after the company and Idea Cellular declined to comment on reports the telecom regulator proposes a one-time fee for GSM operators holding over 6.2 megahertz of 2G airwaves.

Dish TV India Limited added 3.2% to Rs 39.55 after the provider of satellite television service said fourth quarter sales rose 9% to Rs 303.7 crore from Rs 278 crore a year ago. Net loss for the quarter was Rs 70 crore compared to net profit of Rs 76.2 crore a year ago.

Eimco Elecon Limited slipped 4.0% to Rs 240.00 after the company reported full year net profit fell 15.9% to Rs 12.80 crore.

Glenmark Pharmaceuticals Limited fell 0.3% to Rs 276.70 after the company and Merck & Co Inc. reached an agreement to settle their patent litigation involving Glenmark's challenge to Merck's patent covering ZETIA.

Havells India Ltd fell 0.3% to Rs 612.05 after the electrical and power distribution equipment manufacturer said fourth quarter sales rose 22% to Rs 700 crore from Rs 573.6 crore a year ago. Net profit for the quarter rose 32% to Rs 64.4 crore compared to net profit of Rs 48.8 crore a year ago.

Hindalco Industries Limited dropped 3.2% to Rs 169.70 after the aluminium and copper manufacturer said fourth quarter sales rose 44% to Rs 5,358 crore from Rs 3,717 crore a year ago. Net profit for the quarter rose 147% to Rs 663 crore compared to net profit of Rs 268 crore a year ago.

IVRCL Infrastructures & Projects Limited dropped 1.7% to Rs 169.60 after the company said it has secured three orders of Rs 822.81 crore from different vendors for construction related work.

Jaihind Projects Limited rose 2.7% to Rs 241.50 after the company said that it secured a project in joint venture with KBREC from Bangalore Water Supply and Sewerage Board for providing sewerage system to erstwhile RR Nagar CMC Area. The project is valued at Rs 51.09 crore.

Kotak Mahindra Bank Limited dropped 2.0% to Rs 745.30 after the bank said fourth quarter net interest income rose 26% to Rs 526 crore from Rs 418 crore a year ago. Net profit for the quarter rose 97.4% to Rs 202.5 crore compared to net profit of Rs 102.6 crore a year ago.

Novartis India Limited declined 3.4% to Rs 559.65 after the pharmaceutical company said fourth quarter sales rose 11% to Rs 149 crore from Rs 134.3 crore a year ago. Net profit for the quarter rose 34% to Rs 27.8 crore compared to net profit of Rs 20.7 crore a year ago.

Ranbaxy Laboratories Limited rose 0.8% to Rs 458.25 after the pharmaceutical company said fourth quarter sales rose 57% to Rs 2,486.7 crore from Rs 1,577 crore a year ago. Net profit for the quarter was Rs 961 crore compared to net loss of Rs 761 crore a year ago.

Reliance Natural Resources Limited rose 2.2% to Rs 51.35 after the stock slumped 27% in the preceding three sessions to Rs 50.15 on 10 May 2010, from a recent high of Rs 68.50 on May 5.

Torrent Power Limited fell 0.02% to Rs 330.45 after the power company said fiscal year 2010 sales rose 33.5% to Rs 5,909 crore from Rs 4,424 crore a year ago. Net profit for the year rose 105% to Rs 836 crore compared to net profit of Rs 407.8 crore a year ago.