India Looks to Triple Port Capacity

Chandrasekhar Atreya
30 Aug, 2010
New York City

Stocks in Mumbai rallied on the gains in Asian and international markets. India plans to triple port capacity in a decade. Apparel exports falls in July for the third month in a row. India was the biggest loan recipient from World Bank in the last fiscal year.

[R]5:00 PM Mumbai – Stocks in Mumbai rallied on the gains in Asian and international markets. India plans to triple port capacity in a decade. Apparel exports falls in July for the third month in a row. India was the biggest loan recipient from World Bank in the last fiscal year.[/R]

Indian stocks rallied after sentiments turned bullish on global and Asian markets post U.S. GDP data. Market breadth was positive on the BSE with as many as 1787 names advancing against 438 declines. The Sensex Index fluctuated in the later session but closed marginally higher after the government introduced a tax bill that may lead to lower levies.

The Sensex Index gained 0.19% or 33.70 points to close at 18,032.11. The CNX Nifty Index on the National Stock Exchange rose 0.2% to 5,417.25.

India plans to triple port capacity within a decade as it tackles infrastructure deficiencies that threaten to damp growth. The government intends to open new harbors and sell stakes in ports to help annual capacity reach 3.2 billion tons under a 10-year plan that will be released next month, said Secretary of Shipping K. Mohandas in an interview on August 25th in his office in New Delhi.

“The country needs urgent action and ports are very important to India’s economic growth. Indian ports will likely handle more than 2.5 billion tons of cargo by 2020,” he said. Throughput in the fiscal year ending in March 2010 rose 14% to 844.9 million tons.

Tata Steel’s European arm Corus on Friday entered into a pact with Thailand-based Sahviriya Steel Industries to sell its Teesside Cast Products plant in the U.K. for about $500 million.

Government said Friday it would block some BlackBerry services next week if the smartphone maker did not address security concerns, and government officials said they were hopeful of a solution soon.

The Foundation Board of the World Economic Forum elected Reliance Industries Chairman and Managing Director, Mukesh Ambani to its board.

The Indian auto components sector is expected to grow five times in size to $110 billion in the next decade with investments of more than $35 billion, an industry body said Friday.

Of that target sales about $80 billion will be from domestic sales and the remaining from exports, the Automotive Components Manufacturers’ Association of India said in a statement.

India’s apparel exports declined in July for a third straight month, a 22.5% drop in direct contrast to the nation’s overall exports increase of 13.2% in the same month.

The garments exports fell to $816 million in July on lesser demand from Europe and U.S., according to the Apparel Export Promotion Council.

Coal output in the April-July period was 156.7 million tons just short of the official target of 164.6 set by the government, according to data collected by mjunction Services Ltd, a trader backed by Tata Steel Ltd and Steel Authority of India Ltd.

The corresponding production for a year earlier period was 155.4 million tons.

Amid a weak broader market, four of India’s top 10 companies witnessed a wealth erosion of Rs 65,000 crore in August, with Reliance Industries leading the decliners.

However, even after losing a whopping Rs 19,578.40 crore in its market capitalization, Mukesh Ambani-led RIL managed to maintain its position as the number one with a valuation of Rs 310,000 crore.

Mumbai-based Pantaloon Retail (India) Ltd, the largest publicly-traded retailer, recorded a 170% jump in net profit for the quarter ended June, to Rs 98.9 crore from a year ago on higher sales. The company reported a core retail turnover of Rs 2,493.70 crore in the quarter up 49.98% from a year earlier.

India was the largest recipient of World Bank loans in 2009-10. The World Bank through its lending arms IBRD and IDA committed $9.3 billion in financial assistance to India in 2009-10 more than the aid committed by the U.S. and the European Union.

The International Bank for Reconstruction and Development committed $6.7 billion and The International Development Association, committed $2.6 billion making the total of $9.3 billion. IBRD’s commitment was 15.1% of its total lending and IDA’s was 17.7% of its total aid for the year.

Gainers & Losers

Atlanta Limited rose 0.1% to Rs 347.70 after the infrastructure development company’s board of directors recommended a 5-for-1 stock split.

Ansal Housing and Constructions Ltd. spurted 1.5% to Rs 67.00 after the real estate company''s board approved issuing 12,00,000 convertible warrants at Rs 70 each to the promoters.

Borosil Glass Works Ltd. gained 4.9% to Rs 818.90 after the scientific, industrial, lighting and consumerware glass said company closed its plant and sold 18 acre plot at Marol in Andheri to Neepa Real Estate for Rs 830 crore.

Balaji Amines Limited decreased 2% to Rs 193.05 after the chemicals and derivatives turned ex-dividend August 30 for a dividend of Rs 2.50 per share for the year ended March 2010.

D B Realty increased 2.6% to Rs 442.10 after the real estate developer said it is in talks with private equity firms to sell 20% stake in its Bandra Government Colony project.

Dharani Sugars and Chemicals Limited plunged 5% to Rs 42.25 after the sugar refiner and power generator turned ex-dividend August 30 after dividend of Rs 1.50 per share for the year ended March 2010.

EIH Limited soared 12% to Rs 151.50 after the domestic hotelier is expected to increase tariffs between 10% and 15% from September.

Four Soft Limited gained 3.2% to Rs 22.50 after the custom software developer secured an order from the U.S. based logistics and transportation firm HJM International.

Indraprastha Medical Corporation Limited slipped 3.9% to Rs 44.75 after the healthcare company turned ex-dividend today for a dividend of Rs 1.60 per share the year ended March 2010.

Jindal Steel & Power Limited rose 1.3% to Rs 699 after the steel maker said that the environment ministry cleared Rs 13,000 crore power projects in Chhattisgarh.

Kingfisher Airlines Limited increased 3.3% to Rs 59.85 after the aviation company said its board will meet on August 31 to consider raising funds through various means.

Oil and Natural Gas Corporation Limited gained 2% to Rs 1,344.45 after the oil explorer said that the government may allow the company to restrict royalty payment to 30% of the total for the oil blocks owned by Cairn India.

Power Grid Corporation of India Limited soared 4.1% to Rs 108.70 after the power transmission company is among the three firms shortlisted by the Nigerian Government to manage the country''s electricity grid to be constructed at a cost of $3.5 billion.

Pioneer Distilleries Limited plunged 4.9% to Rs 57.10 after the alcohol manufacturing company reported first quarter net loss of Rs 12.13 crore compared with a net profit of Rs 2.01 crore for same quarter a year ago.

Prime Focus Limited rose 2.3% to Rs 575.90 after the media and entertainment operator reported board of directors recommended a 10-for-1 stock split.

Patni Computer Systems Limited plunged 14.5% to Rs 463.50 after the provider of information technology said stock turned ex-dividend August 30 for a special interim dividend of Rs 63 per share for the year ending December 2010.

Tata Communications Limited fell 1.4% to Rs 331.95 after the telecom company''s American Depository Receipt rose 3.87% to $14.50 on the New York Stock Exchange on Friday.

Tata Steel Limited increased 3.4% to Rs 527.95 after the steel producer reported company''s UK unit Corus signed an agreement with Thailand''s Sahaviriya Steel Industries for the sale of its mothballed Teesside plant in northern England for $500 million.

Tata Motors Limited fell 0.6% to Rs 991.45 after the automobile company''s American Depository Receipt gained 2.32% to $22.08 on the New York Stock Exchange on Friday.

Usher Agro Limited rose 1.6% to Rs 90.00 after the agri-processing company’s net profit surged 58.4% to Rs 23.52 crore.