Sensex Gains 1.7%; Exports Rise 21%

Chandrasekhar Atreya
01 Dec, 2010
New York City

Sensex Index in Mumbai soared after the latest read on manufacturing showed a robust expansion. October exports rose at a faster pace than imports. Manganese Ore Limited IPO is oversubscribed 29 times.

[R]5:00 PM Mumbai, 8:30 AM New York – Sensex Index in Mumbai soared after the latest read on manufacturing showed a robust expansion. October exports rose at a faster pace than imports. Manganese Ore Limited IPO is oversubscribed 29 times.[/R]

Stocks in Mumbai rebounded sharply on the faster than expected growth in the economy and the latest read on the manufacturing sector showed an expansion. October exports also rose faster than imports but trade deficit hovered near $10 billion.

The BSE Sensex gained 1.68% or 328.75 to close at 19,850.00. The CNX Nifty on the National Stock Exchange gained 98.20 to close at 5,960.90.

The Indian rupee strengthened further today supported by dollar inflows from a large telecom company towards tax payment.

Rupee closed at Rs 46.12 to a dollar in Mumbai today.

India’s exports rose 21.3% in October from a year ago to $18 billion and imports during the month increased 6.8% to $27.68 billion, leaving a trade deficit of $9.72 billion, according to data released by the Commerce Ministry in New Delhi today.

The rate of expansion in exports outpaced growth in imports for the first time in the last three years but trade deficit hovered near $10 billion a month. India is expected to register trade deficit of $100 billion in the current fiscal year ending in March 2011.

October exports rose 15.3% when measured in rupees and exports in the seven months to October rose 26.8% in the dollars and 20.3% in rupees. Imports in the seven months increased 26.0% from a year ago period.

India’s manufacturing sector expanded at the fastest pace in six months in November on the back of robust new business and a sharp rise in exports, according to a survey released today.

The HSBC Markit Purchasing Managers’ Index based on 500 companies surveyed rose from 57.2 to 58.4 in October, for the twentieth month in a row the reading is above 50, the dividing line between growth and contraction. This was the strongest level since May 2010, when the index was recorded at 59.

The index of six key infrastructure industries, crude oil, petroleum refining, coal, electricity, cement and finished steel, rose 7% in October from a year ago, indicating that industrial production in India could revert to high growth after two disappointing months of growth.

Hyundai Motor India Ltd, a wholly owned subsidiary of South Korea based Hyundai Motors, sold its two millionth car in the domestic market on Tuesday from its factory at Irungattukottai near Chennai.

IDBI Bank said on Tuesday it is planning to raise $1 billion or Rs 4,500 crore through the sale of bonds in the overseas markets in the next one year according to comments from IDBI Bank Chairman and Managing Director R.M. Malla at an event organized by the Finance Ministry in New Delhi on Tuesday.

Reliance Industries’ prolific D-1 and D-3 gas fields off the east coast of India saw a 15% drop in production to about 45 to 46 million cubic meters per day because of reservoir complexities.

Manganese Ore (India) Limited’s initial offering was subscribed 28.62 times on the third day of the issue today.

The offer has so far attracted total bids of 96.15 crore shares, as against 3.36 crore shares on offer, a National Stock Exchange data showed.

Coal India is looking at acquiring more than 10% stake in Australian assets of U.S. based Peabody Energy, Chairman Partha Bhattacharya said in New Delhi today.

He had told reporters in November after the first half earnings announcement that the firm was in advanced talks with Peabody to acquire a stake in one of its mines in Australia and was also looking at a long-term purchase agreement.

Suzuki Motorcycle India reported today that the company sold 77% more vehicles in November at 25,493 units as compared with 14,393 units sold a year ago.