Trade Deficit Surges, Rupee Rises

123jump.com Staff
01 Apr, 2008
New York City

Export from India in February rose 35% to $14 billion and imports gained 30% $18.5 billion lifting the traded deficit to $4.2 billion. The trade deficit in the first eleven months increased to $72.5 billion. Wholesale inflation, in the latest data, rose to 6.7%. Sensex index fell 0.11% or 17.8 to 15,626 and CNX Nifty gained 5 to 4,739.

[R]12:00AM New York, 9:30 PM Mumbai- India’s trade deficit surges to $4.23 billion in February.[/R]

Low trading volume characterized today’s trading as investors and arbitrageurs expressed their reservations against the Securities Transaction Tax on the first day of the new fiscal 2009.

Wholesale price index, a measure of inflation for the twelve months ending on March 15 rose to 6.7%, an increase from 5.9% at the end of previous week.

Of the 30 member Sensex shares 16 rose.

The 30-share BSE Sensex fell 0.11% or 17.82 at 15,626.62, while the broader based S&P CNX Nifty increased 0.11% or 5.05 at 4,739.55.

Provisional data indicated that foreign funds sold shares worth a net 638.86 crore rupees today, while domestic funds sold shares worth a net 289.56 crore rupees.

On the BSE trading, 1,722 shares gained, 924 declined and 51 were unchanged. The BSE Mid-Cap index declined 0.50% to 6,395.42 and the BSE Small-Cap index rose 0.31% to 7,865.90.

The total turnover slumped to 4,697 crore rupees on BSE, as compared to 5,941.63 crore rupees yesterday and on the NSE trading volume was recorded at 11,000 crore rupees.

Arbitrageurs and jobbers protest of the Securities transaction tax

Most stock traders and arbitrageurs did not participate in the market today to protest an increase in securities tax.

India’s February exports grows to $138.4 billion

India’s exports in the first 11 months of the fiscal 2008, which closed yesterday, rose the fastest in four months to $138.4 billion. Market watchers believe that it is unlikely that the export target of $160 billion will be met.

However exports rose 35.3% from a year earlier to $14.24 billion in February as rupees declined to about 39.9 to a dollar at the end of February from 39.4 rupees at the beginning of the month. Imports rose at a slower pace to 30.5% from a year earlier to $18.47 billion in February as demand for capital goods, remained robust. Imports in January rose at 63.6%.

For the eleven months in the fiscal 2008, exports rose 23% to $138 billion but in rupees it rose only 9% in the same period from a year ago to 848,332 crore rupees. Import in the eleven months rose 30% to $162 billion and in rupees rose 15% to 734,984 crore rupees.

Trade deficit reached $4.23 billion in February, and in the first 11 months of fiscal 2008 it was at $72.47 billion compared to $49.32 billion for the same period a year ago.

Gainers & Losers

Reliance Industries rose 2.97% to 2,331.80 on 10.48 lakh shares. Hindustan Unilever increased 4.39% to 238.75 crore rupees on 2.49 lakh shares. Reliance Energy increased 3.11% to 1290 crore rupees.

Software services exporter TCS increased 3.16% to 836.50 crore rupees after it said yesterday it has signed a five-year, multi-million dollar contract with auto components maker ArvinMeritor Inc.

Wirpo declined 3.60% to 410 rupees and Infosys fell 0.71% to 1,420 rupees.

Ambuja Cements increased 0.29% to 121.40 rupees after it announced 16% rise in cement shipments to 1.72 million tons in March 2008 from a year ago. ITC rose 2.25% to 211 rupees, and Reliance Communications advanced 2.90% to 523.05 rupees. Bharat Heavy Electricals fell 8% to 1,892 rupees.

Engineering firm Larsen & Toubro fell 4.80% to 2,880 rupees after it yesterday it secured 576 rupees order from Hindustan Petroleum Corporation for 200,000 ton per annum oil processing plant.

Tata Steel fell 3.77% to 667 rupees DLF shed 3.60% to 623.20 rupees and Mahindra & Mahindra declined 6.44% to 650.85 rupees.

Financial stocks fell after UBS reported a loss of $12 billion in the first quarter and proposed to raise $15 billion in rights offering. The persistent sub-prime loan losses related to U.S. residential market has wiped out more than $230 billion in financial assets from the world banking system.

ICICI Bank fell 1.83% to 756 crore rupees and HDFC Bank shed 1.13% to 1305.10 crore rupees.