India Expects 9% Growth; Supreme Court Demands Vodafone Deposit

Bikram Pandey
15 Nov, 2010
New York City

Stocks in Mumbai increased after Finance minister Pranab Mukherjee said that in the short term economy will expand at 9%. The rupee edged lower and the latest data on the inflation showed a declined. Tata Steel swung to net profit.

[R]5:00 PM Mumbai – Stocks in Mumbai increased after Finance minister Pranab Mukherjee said that in the short term economy will expand at 9%. The rupee edged lower and the latest data on the inflation showed a declined. Tata Steel swung to net profit.[/R]

Stocks in Mumbai trading closed higher after Tata Steel returned to profit, the rupee declined and Finance Minister Pranab Mukherjee indicated India can sustain higher growth for decades. Banks participated in the rally.

The BSE Sensex rose 0.76% or 152.80 to close at 20,309.69. The CNX Nifty on the National Stock Exchange gained 49.95 to close at 6,121.60.

Mukherjee said at a summit held by World Economic Forum in New Delhi that India is capable of decades of “high growth.” The India Economic Summit attracted 800 investors and executives from technology, finance and energy companies.

Mukherjee also said that in the short term the growth can rebound to 9% average before the global financial crisis.

Annual rate of inflation measured in wholesale price index declined to 8.58% in October compared to 8.62% for a year ago, according to the data released by commerce ministry.

The index increased 0.4% to 141.7 from 141.1 in September. The inflation base year revised to fiscal 2004 from current base of fiscal 1993 from the August month.

On Friday, the statistics bureau said that industrial output increased at 4.4% in September after expanding at 6.9% in August.

Vodafone Group Plc was ordered by the Supreme Court of India to deposit Rs 2,500 crore in three weeks and offer a guarantee of Rs 8,500 crore in the next eight week as it awaits challenges the tax bill.

The next hearing in the case is scheduled on February 24.

Stock Movers

Balrampur Chini Mills Limited declined 3% to Rs 86.40 after the power, Sugar and distillery operator reported fourth quarter net loss of Rs 78.34 crore compared to net profit of Rs 42.73 crore for a year ago.

Hindustan Petroleum Corporation Limited rose 2.5% to Rs 464.25 after the oil refiner reported second quarter net profit of Rs 2,089.61 crore compared to net loss of Rs 136.68 crore for a year ago.

Ispat Industries Limited declined 4.6% to Rs 19.35 after the international trader of steel, textiles reported net loss for the quarter ended September widened to Rs 331.62 crore from Rs 79.41 crore for a year ago.

Tata Steel Limited gained 1.7% to Rs 617.15 after the steel producer reported second quarter consolidated net profit of Rs 1,978.81 crore compared to net loss of Rs 2,707.25 crore for a year ago.