Tax Collection, Production Rises in India

Mayank Mehta, Chandrasekhar Atreya and Sanjay Barot
12 Jul, 2010
New York City

Stocks in Mumbai traded higher for the third day on earnings growth. Industrial production growth expands at a slower pace in May. Indirect tax collections increase 43% in the first quarter. Adani Group is selected for developing export facility in Queensland.

[R]5:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded higher for the third day on earnings growth. Industrial production growth expands at a slower pace in May. Indirect tax collections increase 43% in the first quarter. Adani Group is selected for developing export facility in Queensland.[/R]

Stocks in India gained for the third day today on earnings growth across all sectors even after industrial production growth eased a bit in May. In mid-morning trading, the key benchmark index crossed the psychological barrier of 18,000 for a brief period before settling back.

The Sensex index in India increased 103.66 or 0.58% to 17,937.20 and CNX Nifty index rose 32.20 or 0.6% to 5,384.65. Among the Sensex 30 stocks, 19 rose and 11 fell.

On BSE trading, 1,641 stocks advanced, 1,227 declined and 102 were unchanged. Realty, banking and IT stocks rose.

Rupee edged higher 4 paisa to Rs 46.62 against one dollar.

Production at factories, utilities and mines in India rose 11.5% in May from a year earlier compared to a revised 16.5% gain in April, according to data released by the Statistics Office in New Delhi today.

Indirect tax collection in India increased by 43% to Rs 56,930 crore in the first quarter of the current financial year on the back of an upswing in industrial activity.

The revenue from customs, excise and service tax, which made up the indirect taxes, during the April to June quarter of the current financial year stood at Rs 56,930.15 crore, up from Rs 39,693.78 crore in the period a year ago, a finance ministry official said on Saturday.

The government had budgeted an overall mop-up of Rs 746,000 crore during the fiscal year, with Rs 316,000 crore expected from indirect taxes and the balance from direct taxes, which mainly consists of corporate tax and personal income tax.

The sugar industry on Friday hailed the government’s proposal to decontrol the sugar market saying it would benefit both the consumers and the farmers.

“We welcome the minister’s statement on decontrol of the sugar market, which was long-awaited,” said Indian Sugar Mills Association Deputy Director General M.N. Rao while speaking to Press Trust of India.

New Delhi-based Shiv-Vani Oil & Gas Exploration Services Ltd, backed by Templeton Asset Management Ltd, is planning to spend $50 million to acquire a U.S. or European company to gain access to technology.

“We are looking at niche companies, either in the U.S. or Europe, with specialization in cementation or perforation. While we have basic facilities when it comes to drilling, we are trying to develop capabilities in specialized services, which companies like Schlumberger have,” said Vice President P.K. Gupta in an interview from New Delhi over phone.

Adani Group, India’s biggest coal importer, has been picked to develop an export facility for coal in Queensland, a spokeswoman for the North Queensland Bulk Port Corporation said.

Adani and DBCT Management, which leases the Dalrymple Bay Coal Terminal, will separately draw up plans for export terminals at Dudgeon Point located about 15 kilometers south of Mackay on the Queensland coast, said Mary Steele, a spokeswoman for the corporation from Brisbane today.

Gainers & Losers

AstraZeneca Pharma India Limited fell 4.4% to Rs 1,235.00 after the company''s board of directors deferred the decision on seeking shareholders'' approval to the parent''s delisting proposal.

Amrutanjan Health Care rose 4.5% to Rs 840.50 after the company scheduled a board meeting on July 14 to consider an update on the buyback offer made by the company and restructuring possibilities.

HCL Technologies Limited rose 0.5% to Rs 363.15 after the company signed a seven-year total information technology outsourcing services agreement with Saudi Arabia’s Al Majdouie Group. HCL will implement the contract over two years, with the next five years for operations and management.

Housing Development Finance Corporation fell 3.9% to Rs 283.50 after the mortgage lender on July 9 2010 bought an additional 40.28 lakh shares of specialized education loans provider Credila Financial Services for Rs 4.03 crore.

Infosys Technologies Limited rose 0.4% to Rs 2,885.00 after the company''s American depository receipt or ADR rose 2.01% to $62.57 on the Nasdaq on Friday, July 9.

Kajaria Ceramics Limited rose 1.0% to Rs 65.00 after the company’s net profit soared 87.42% to Rs 11.32 crore.

Orchid Chemicals & Pharmaceuticals Limited fell 1.0% to Rs 181.00 after the stock turned ex-dividend today, July 12, for a dividend of Rs 10 per share for the year ended March 2010.

Petron Engineering Construction rose 1.4% to Rs 424.75 after the company secured an order worth Rs 211 crore from Nagarjuna Oil Corporation for complete construction works related to FCCU unit at its Cuddalore refinery project.

Reliance Capital rose 1.9% to Rs 775.05 after its life insurance unit Reliance Life is looking for a strategic investor.

Ipca Laboratories Limited rose 2.3% to Rs 304.00.

Steel Strips Wheels surged 3.5% to Rs 203 after the company said it has been nominated as the supplier by German car maker Audi for supplying steel wheels rims for over five years.

Suzlon Energy Limited rose 0.2% to Rs 58.80 after the company secured an order from the Malpani Group to set up, operate and maintain two new wind power projects totaling 19.8 megawatt in the states of Karnataka and Maharashtra.

Tata Elxsi Limited fell 3.9% to Rs 283.50 after the stock turned ex-dividend today, July 12 for a dividend of Rs 7 per share for the year ended March 2010.

VST Industries Limited decreased 7.1% to Rs 557.50 after the stock turned ex-dividend today, July 12, for a dividend of Rs 30 per share for the year ended March 2010.