India's Exports Surge 50%; Stocks Rest After 8-day Rally

Devan Biswas
01 Apr, 2011
New York City

Mumbai stocks edged lower after rallying for eight days. Exports soared 50% in February and imports gained 21% and trade deficit hovered near $99 billion. Sharp upswing in exports was driven by higher sales of gems and jewelry and petroleum products.

[R]4:35 PM Mumbai – Mumbai stocks edged lower after rallying for eight days. Exports soared 50% in February and imports gained 21% and trade deficit hovered near $99 billion. Sharp upswing in exports was driven by higher sales of gems and jewelry and petroleum products.[/R]

Stocks in Mumbai opened higher after a rallying for eight days in a row and exports surged 50% in February and a private survey of manufacturing survey showed a steady expansion.

The market index weakened in the early afternoon and traded sideways with no firm conviction. At close the index edged lower.

The Sensex index declined 24.83 to close at 19,420.39 and Nifty index edged lower 7.70 to 5,826.05.

Of the stocks traded on the Bombay Stock Exchange, 2,194 increased, 712 declined and 86 were unchanged.

Rupee strengthened to close at 45.21 to a dollar and the price of ten grams of gold closed at Rs 20,693.

Foreign investors added net purchase of Rs 3,324.59 crore on the last day of March and net additional inflow in the last eight days increased to Rs 8.548.14 crore.

February exports increased 49.7% to $23.6 billion and rose 46.9% when measured in rupees, according to the preliminary data released by the Ministry of Commerce.

Exports in the eleven months to February rose 31.4% in the U.S. dollar to $208.2 billion and 26% in rupee.

Imports in the month rose 21.2% to $31.70 billion and in the eleven months increased 18% to $305.2 billion from a year ago period.

Trade deficit in February decreased to $8.1 billion and in the eleven month period increased $97 billion.

The sharp increase in exports was driven by higher gem and jewelry exports and petroleum products.

Stock Movers

Reliance Industries increased 1.3% to Rs 1,034.80 and ONGC increased 1%.

Jaiprakash Associates increased 3.9% to Rs 96 and led the gainers in the Sensex index and NTPC declined 2.1% to Rs 188.95 and the losers in the index.

NTPC after the close yesterday said its unit 3 of 500 megawatts at Simhadri Super Thermal Power Plant was commissioned yesterday.

Bharat Heavy Electricals increased 2.2% and two days ago the company won a contract worth Rs 5,450 crore from Lalitpur Power Generation Company controlled by Bajaj Group.

L&T declined 0.3% and market is awaiting its finance company to file a public offering to raise Rs 1,750 crore.

Mahindra & Mahindra increased 1.9% after March sales increased 18.3% to 37,522 units.

Tata Motors decreased 0.3% after March unit sales increased 11% to 83,363. Domestic sales increased 9% to 77431 and exports soared 45% to 5,932 units. Commercial vehicles sales increased 15% to 49,753 units and passenger vehicles sales declined 1.1% to 29,543 units.

Hero Honda gained 0.7% after the company said two directors representing Honda Motor have resigned effective March 22.

Reliance Infrastructure increased 0.6% after the company announced a buyback plan of Rs 1,000 crore at a maximum price of Rs 725 a share between April 5, 2011 and February 13, 2012.