Sensex in India Soars 3.7%, Exports Surge 29%, Strong Auto Sales

Devan Biswas
01 Mar, 2011
New York City

Stocks in Mumbai gained a day after budget that estimated narrower deficit and auto sales soared in February. A private survey indicated manufacturing expanded at a faster pace in the month. Exports in January soared 29% and the government lifted its exports target to $225 billion.

[R]4:30 PM Mumbai – Stocks in Mumbai gained a day after budget that estimated narrower deficit and auto sales soared in February. A private survey indicated manufacturing expanded at a faster pace in the month. Exports in January soared 29% and the government lifted its exports target to $225 billion.[/R]

Stocks in Mumbai surged after government financial budget estimated narrower deficit on the expectation of a higher economic growth. In addition, auto sales surged and manufacturing index gained in February.

The Sensex index in Mumbai surged 3.7% or 653.92 to 18,477.32 and the Nifty index soared 3.74% or 189.05 to 5,522.30.

Rupee closed higher and closed at 45.51 to a dollar.

India’s exports in January rose 32.4% to $20.6 billion and imports in the month rose 13.1% to $28 billion and trade deficit in the month rose to $8 billion as crude oil prices jump more than 20% from a year ago.

Trade deficit in December was $2.6 billion but the deficit declined from $9.7 billion in January a year ago. Oil imports in January declined 7.8% to $7.8 billion.

Exports in the ten-month period to January rose 29.3% to $184.6 billion and oil import in the current financial year rose 13.9% to $79.96 billion.

The government also lifted its estimate of exports in the current fiscal year to $225 billion from the previous target of $200 billion.

The private manufacturing survey conducted by HSBC Markit Purchasing Manager’s Index increased to 57.9 in January from 56.8 in December.

Domestic auto sales in January rose 26% to 184,332 units and sales increase is expected to slow to 20% in February.

Maruti Suzuki said auto sales in February increased 19.8% to 101,000 units and exports declined 15% to 10,102.

Stock Movers

Maruti Suzuki increased 7% after it reported February total vehicle sale increased 15.5% on higher domestic sales.

Mahindra & Mahindra surged 9% after rising 3.7% on Monday and said its total sales rose in February 20% from a year ago to 33,378 units.

Tata Motors gained 5.4% after February sales rose 12% to 77,543 units. Domestic sales rose 10% 73,039 and exports increased 39% to 3,237. Tata Nano sales doubled in the month to 8,262 units.

Banks closed higher as the government proposed to curtail borrowing and provided Rs 6,000 crore to State Bank of India to strengthen their balance sheet and maintain tier 1 ratio.

IDBI Bank rose 4.4% to Rs 138.50 and ICICI Bank gained 5.2% or Rs 51.75 to Rs 1,027.95.

State Bank of India added 2.9% to 2,706.90 and HDFC Bank Ltd rose 4.2% to 2,136.30. Canara Bank increased 1.8% to Rs 620.

Airlines closed higher despite a rise in service tax but the estimate of higher economic growth lifted the sector.

Jet Airways soared 7% to Rs 444,10 and Kingfisher Airlines Ltd added 5.3% to Rs 39.75.