Sensex in India Up 1.3%; Deficit Surges 42%

Chandrasekhar Atreya
01 Sep, 2010
New York City

Stocks in Mumbai traded sharply higher after exports increased 13.2% and trade deficit expanded 42%. July exports increased 13.2% and imports soared 34.3%. Rupee gained. Manufacturing index showed a smaller than expected growth. Nalco looks for investment in Indonesia.

[R]4:30 PM Mumbai, 7:00 AM New York – Stocks in Mumbai traded sharply higher after exports increased 13.2% and trade deficit expanded 42%. Rupee gained. Manufacturing index showed a smaller than expected growth. Nalco looks for investment in Indonesia.[/R]

The benchmark index in Mumbai trading rebounded sharply on the strong closing in Asia and a better than expected increase in exports.

The Sensex index increased 1.3% or 234.75 to 18,205.87. Rupee edged higher on higher than expected fund flows and closed at 46.84 to a dollar and 59.90 to a UK pound.

July exports increased 13.2% to $16.24 billion and rose 9.4% to RS 76,064 crore.

Exports in the four months to July rose 30.1% in dollars and 22.8% in rupees. Imports in the month rose 34.3% to $29.17 billion and 29.7% to Rs 136,625 crore and in the four month period increased 33.3% from a year ago period.

Trade deficit in the four month period surged 42% to $43.58 billion from $31.4 billion a year ago period.

Oil imports rebounded in the four month period 37.3% to $32.91 billion from $23.99 billion.

Foreign direct investment inflows in the first six months to June were down 18% to $10.78 billion from a year ago, Industry Secretary R.P. Singh said Monday. FDI inflows in June were down 46.5% to $1.38 billion from a year earlier, he said.

India’s manufacturing expansion cooled marginally in August as export and new factory orders weakened, a survey showed.

The purchasing manager’s index compiled by HSBC Holdings Plc and Markit Economics fell to 57.2 from 57.6 in July, highlighting concerns about risks to growth from a faltering global economy.

The index of new factory orders declined in August to 62 from 62.8 in July and exports fell to 55.5 from 57.4 in July, according to the survey.

Tractors and Farm Equipment Ltd, the world’s third-biggest tractor maker, said its consolidated net more than doubled in 2009-10 as sales in domestic market surged and exports boomed.

The Chennai-based, Amalgamations Group firm posted a 25% growth in turnover for the year to Rs 4,747 crore, Vice Chairman Mallika Srinivasan told Economic Times.

Oman awarded Saudi National Contracting Co and Larsen & Toubro two separate contracts worth 32.1 million rials to build power transmission units, a government statement said.

Larsen & Toubro will build a power grid station for 10.6 million rials and both the contracts pave the way for construction of the first phase of the 2,000 megawatt power plant planned to be built in the eastern resort of Sur, which is home to two LNG plants with a combined capacity of nearly 10 million tons per year.

National Aluminum Co Ltd said Tuesday it wants to buy stakes in Indonesian coal mines to secure supplies for its aluminum project in East Kalimantan in Borneo Island. The firm said in a statement that it wants to invest in coal mines that produce coal with heating value of more than 5,000 Kcal/Kg, air-dried basis and which are able to produce 10 million tons per annum of the fuel from 2014.

Nalco needs 8 to 10 million tons of thermal coal, of which half will be used in its East Kalimantan project and the balance for its operations outside Indonesia.

Jindal Steel and Power plans to re-bid for a controlling stake in Zimbabwe Iron & Steel Company, or Zisco, more than two months after the African company rejected the Delhi-based firm’s earlier bid.

Jindal renewed its offer after the Zimbabwe government recently invited fresh bids for selling 70% of equity stake in the state-run Zisco which also owns iron ore reserves of 100 million tons.

Adani Power Ltd said it plans to spend about Rs 82,500 crore to increase capacity almost 17 fold to 16,500 megawatts in the next four years.

“We will focus on coal-fired capacity and that will remain our mainstay. We believe the power industry in India will see a big boom in the coming years,” Chief Executive Officer Ravi Sharma said in a telephonic interview Tuesday.

India’s capital market regulator revoked a ban on trading in some securities by Barclays Bank Plc, after the U.K. lender took steps to modify its reporting systems.

Oriental Bank of Commerce plans to raise as much as Rs 800 crore selling bonds, according to a statement on the National Stock Exchange Tuesday.

Coal India said Tuesday that its IPO, the largest public offering in India, is due to start in October. India’s largest coalminer plans to sell 10% of its government-held equity as part of New Delhi’s plan to harness a record Rs 39,000 crore from asset sales by March next year.

The IPO will run from October 18 for four days, company Chairman Partha Bhattacharya told reporters Tuesday.

Kingfisher Airlines Ltd plans to raise $356 million selling shares to reduce debt and fund expansions. The airline seeks to collect as much as $250 million from a sale of global depository receipts and Rs 500 crore from a local equity offering, according to a statement released on Tuesday.

Gainers & Losers

Bajaj Electricals Limited gained 1.8% to Rs 294.25 after the appliances company secured new orders worth more than Rs 408 crore.

Bajaj Auto Ltd. rose 0.6% to Rs 2,747 after the two & three-wheeler vehicles fixed September 10, record date for a 1-to-1 bonus.

Bajaj Hindusthan Ltd. soared 2.1% to Rs 116.40 after the company said Bajaj Energy achieved financial closure of a 450 megawatt thermal power project.

Cosmo Films Limited declined 4.4% to Rs 127.80 after the polypropylene film manufactures turned ex-dividend today, for a dividend of Rs 5 per share for the year ended March 2010.

Dharamsi Morarji Chemical Company Limited declined 4.2% to Rs 18.05 after the pharmaceutical intermediates first quarter net loss of Rs 11.58 crore compared to net loss of Rs 8.85 crore in same quarter of year ago.

Fortis Healthcare Limited increased 2.6% to Rs 156.50 after the healthcare company's Chairman Malvinder Singh told the media that the company will list its diagnostics business unit -- Super Religare Laboratories in 2011.

Jindal Poly Films Limited soared 7.2% to Rs 939.80 after the flexible packaging films said its board will consider issue of bonus shares at a meeting to be held on September 3.

JVL Agro Industries Limited increased 4.9% to Rs 379.45 after the vegetable oils company said its board will meet on September 4 to consider a 10-for-1 stock split.

Kingfisher Airlines Limited spurted 4.9% to Rs 62.30 after the aviation company said oil marketing companies cut jet fuel prices by 4% and the company plans to raise new capital in a public issue to cut debt.

Karur Vysya Bank Limited surged 5.3% to Rs 787.20 after the bank said board will meet on September 7, to consider issue of further shares/augment capital including bonus and rights issue.

Kalpataru Power Transmission Limited rose 0.3% to Rs 989.20 after the erection and construction of transmission said fixed September 9, record date for a 5-for-1 stock split.

Maruti Suzuki India Limited rose 1.3% to Rs 1,273.25 after the motor vehicles company's total sales rose 23.6% to 1,04,791 units in August from year ago.

Steel Strips Wheels Limited gained 7.3% to Rs 242.10 after the automotive wheel rims company said it achieved the highest ever monthly production and sales in August.

Shilpa Medicare Limited fell 0.3% to Rs 340.25 after the pharmaceutical company net profit rose 520% to Rs 46.01 crore in the fiscal year ended March 2010 compared to Rs 7.42 crore from a year ago.

TVS Motor Company Limited increased 1.3% to Rs 143.95 after two-wheeler sales grew 32% to 1,67,109 units in August from a year ago.