India Jewelry, Auto and Cement Sales Surge

Chandrasekhar Atreya
05 Oct, 2010
New York City

Stocks in Mumbai declined and the rupee traded near its recent highs. India based JSW and Japan based JFE sign a technical collaboration and explore natural resources in India. Cell phone services providers added 18.2 million subscribers in September and expensive jewelry makers report surging sales.

[R]5:00 PM Mumbai – Stocks in Mumbai declined and the rupee traded near its recent highs. India based JSW and Japan based JFE sign a technical collaboration and explore natural resources in India. Cell phone services providers added 18.2 million subscribers in September and expensive jewelry makers report surging sales.[/R]

Indian stocks fluctuated amid weak Asian sentiments and closed lower even though robust foreign portfolio inflows kept the market sentiment positive for most part of the day.

The BSE Sensex Index lost 0.33% or 68.02 to close at 20,407.71. The CNX Nifty on the National Stock Exchange lost 13.65 points to close at 6,145.80.

Record inflows of foreign funds so far in 2010 touched $19.7 billion, driving the benchmark index as much as 17.5% higher. The benchmark index soared 81% in the last year on the fund flows of $17.5 billion.

The rupee closed at 44.51 to a U.S. dollar in trade today.

JSW, the Indian steelmaker, moved another step closer to joint sourcing of raw materials with Japan based JFE after the Indian company on Monday agreed to pick up a 5% stake in JFE.

Two companies entered in technology and equity collaboration and agreed to jointly look for natural resources in India.

Companies that manage provident fund savings of their employees, or exempt trusts, are in position to match the 9.5% return offered by the government-run Employees Provident Fund Organization.

“They have enough surplus to not only match the 9.5% returns declared by us but, in fact, give out 8% to 9% higher returns, said an official of the EPFO, adding that the observation was based on the study of four bog funds.

According to a study by global consultancy firm Ernst & Young, the Indian market will clock the fastest compound annual growth rate between 2009 and 2020, more than double that of China and the triad of North America, Europe and Japan. Compounded annual growth rate for India between 2009 and 2020 is estimated at 14% compared with China’s 6%, other emerging market’s 6% and the triad’s 4%.

Indian automobile industry may achieve $12 billion export target years ahead of projections in 2013-14, industry body FICCI said Monday. At present the industry exports $4.5 billion worth of automobiles including tractors, passenger cars and commercial vehicles in addition to two-wheelers exports.

As per FICCI, auto exports will grow to $17.64 billion in fiscal year 2015.

Demand for high-end jewelry, above Rs 500,000 is growing at 50% faster than the 20% growth of the jewelry market. The demand for expensive diamond and gold jewelry is growing is rising sharply in smaller cities.

Lanco Infratech said Monday its unit, Lanco Vidarbha Thermal Power Ltd, has tied up debt of Rs 5,549 crore for its 1,320 megawatt thermal power project in Maharashtra with an equity component of Rs 1,387 crore.

A consortium of 16 banks and financial institutions led by Punjab National Bank have arranged for the debt, the statement of the company said.

Ultratech Cement’s sales rose by 2.71% in September to 2847,000 tons, compared to the corresponding month of 2009. Production also increased by 2.91% to 2819,000 tons during the month of September in comparison to September 2009, the company said in a statement.

Ambuja Cements registered a 9% rise in sales to 1481,000 tons in September from 1359,000 tons in the same month last year. Output of the company rose to 1484,000 tons in September from 1382,000 tons in September 2009, the company said in a statement on Monday.

Nippon Steel Corp announced Tuesday that it had started formal talks with Indian Tata Steel Ltd to build iron mills including blast furnaces in India. Nippon Steel President Shoji Muneoka and President of Tata Steel Hemant M. Nerurkar agreed to the deal in Tokyo.

Tata plans to build two blast furnaces each with a capacity of 3 million tons a year and the first of which is expected to come online around 2013.

Telecom operators in the country added 18.18 million subscribers in August this year, taking the total number to 670.6 million, the Telecom Regulatory Authority of India said Tuesday.

Gainers & Losers

Apollo Tyres Ltd. gained 1.3% to Rs 83.25 after the tyre maker said workers in South Africa plant returned to work.

Ambuja Cements Ltd increased 1.3% to Rs 142.50 after the September dispatches rose 9% to 14.8 lakh tons in the month from a year ago.

Aarti Industries Limited soared 11.8% to Rs 71.00 after the board approved issue of convertible warrants to promoters.

Bharati Shipyard Limited increased 3.6% to Rs 231.10 on the expectations of new orders.

Development Credit Bank Limited surged 4.5% to Rs 61.50 after the foreign private equity firm acquired a 0.56% stake in the bank on October 4.

Financial Technologies (India) Limited rose 0.6% to Rs 1,207.80 after the technology company sold stake in the trading platform affiliate to new investors.

JSW Energy spurted 5.5% to Rs 123.40 after the power company commissioned second unit of 135 megawatt power project at Barmer in Rajasthan, achieving commercial operation date effective October 4.

Lupin Limited rose 0.7% to Rs 408.50 after the company''s US unit got final approval from the US drug regulator to market generic version of Merck''s -- Hyzaar and Cozaar.

Microsec Financial Services Limited plunged 6% to Rs 110.90 after the financial lender opened nearly flat from the initial public offer price of Rs 118.

Mahindra & Mahindra Limited increased 2.2% to Rs 748.10 after the industrial conglomerate plans to set up a Rs 300-crore tractor-manufacturing unit at its Zaheerabad facility at Andhra Pradesh over the next three years.

Prime Focus Limited declined 3.1% to Rs 713.55 on profit taking after the stock surged nearly 18% in the preceding six trading sessions.

Piramal Life Sciences Limited soared 4.9% to Rs 183.55 after the biopharmaceutical maker said that the group company Piramal Healthcare is planning to merge Piramal Life Sciences with the company.

Powersoft Global Solutions Limited surged 8.8% to Rs 27.15 after the software developer secured an order worth $1.8 million from a Chinese lingerie fashion house to supply radio frequency identification products.

PTC India Limited gained 3.4% to Rs 123.50 after the power and coal trader was recommended by a broker.

Mercator Lines Ltd spurted 4.3% to Rs 63.35 after the shipping and related firm Baltic Dry Index, which tracks rates to ship dry commodities, gained 1.06% in London on October 4.

Somany Ceramics Limited increased 3.4% to Rs 287.40 after the ceramic tile maker board approved a 5-for-1 stock split.

Sterling Biotech Limited gained 3.1% to Rs 123.35 after the pharmaceutical and vitamins gelatin maker fully redeemed outstanding overseas bonds.

Timken India Limited spurted 7.7% to Rs 166.55 after the antifriction bearing maker traded in bulk trades on the BSE.

Transport Corporation of India Limited rose 1.9% to Rs 144.10 after the Andhra Pradesh High Court approved a scheme of demerger of the company.

Temptation Foods Limited surged 3.6% to Rs 37.20 after the frozen fruits and vegetable processor said board will meet on October 14 to consider raising funds.