Volatile Industrial Production Increased 1.6% in India; Cairn India Up

Devan Biswas
11 Feb, 2011
New York City

Stocks in Mumbai rebounded on the last trading day of the week. Industrial output rose 1.6% in January and the increase was the slowest monthly gain in twenty months. Aditya Birla Nuvo, Cairn India and Educomp Solutions reported higher earnings.

[R]5:30 PM Mumbai – Stocks in Mumbai rebounded on the last trading day of the week. Industrial output rose 1.6% in January and the increase was the slowest monthly gain in twenty months. Aditya Birla Nuvo, Cairn India and Educomp Solutions reported higher earnings.[/R]

India’s industrial output increased at the slowed pace in nearly two years as factories struggle to add capacity.

Industrial output increased 1.6% in December from a year ago when the out pout rose 16.8%. November data was also revised higher to 3.7% from the previous estimate of increase of 2.7%.

The BSE Sensex increased 1.5% or 265.57 to close at 17,728.61 The CNX Nifty on the National Stock Exchange gained 84.20 to close at 5,310.00.

Central Statistical Organisation said manufacturing increased 1% in the month and capital goods contracted 13.7% in December as rising costs pressure on manufacturers.

Apollo Hospitals Enterprise said quarterly revenues rose to Rs 600 crore and net rose to 45.81 crore.

Cairn India at the time of earnings release said it is opposed to government condition that may lower its profitability outlook which impacts its market value at the time of the sale to Vedanta Resources. Cairn India and government of India are in negotiations to determine future royalty payment to Rajashtan State.

Stock Movers

Aditya Birla Nuvo Limited gained 3.8% to Rs 765.25 after the conglomerate reported third quarter consolidated net profit surged three fold to Rs 275 crore and revenue rose 12% to Rs 4,563 crore.

Cairn India Limited increased 3.7% to Rs 325.85 after the minerals, oil, gas driller and explorer reported third quarter consolidated net profit surged 590.9% to Rs 2,010.12 crore and net sales surged 525% to Rs 3,096.44 crore.

Educomp Solutions Limited soared 5.9% to Rs 437.65 after the educational solution provider said third quarter consolidated net profit surged 58% to Rs 96.71 crore and revenue increased 37% to Rs 357.52 crore.

Suzlon Energy Limited rose 0.3% to Rs 45.75 and the National Stock Exchange announced that Grasim Industries will replace Suzlon Energy in the 50-stock CNX Nifty index from March 25.