Trade Deficit Hovers at $11 Billion

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

Exports in July increased 31.2% from a year ago to $16.34 billion after increasing at 23.5% in June. Imports rose 48.1% to $27.14 billion, yielding a trade deficit of $10.8 billion. The monthly trade deficits have been hovering around $10 billion and is expected to top $120 billion for the current fiscal year. Rising crude oil prices in the month contributed to 70% of the imports. Separately, monthly unit sales of Maruti Suzuki fell 9% in August from a year ago to 59,908.

[R]10:00AM New York, 7:30 PM Mumbai - Indian exports grow 31.2% to $16.34 billion in July.[/R]

Market Sentiment

In Mumbai, the BSE 30 Sensex fell 0.20% or 29.63 to 14,534.90, and the CNX Nifty rose 0.01% or 0.55 to 4360.55. Of the stocks traded on the BSE, 1338 gained, 1245 declined, and 93 were unchanged.

Trading Statistics

Daily turnover on BSE stood at 3,403 crore rupees from 5,430.84 crore rupees on Friday last week.

Reliance Industries increased 0.34% to 2,144 rupees after the company reported that it has scrapped plans to transfer 80% equity in a deepwater block to its subsidiaries as it has already managed to raise the money needed for the project.

Indian Exports and Trade Deficit Surge in July

Ministry of Commerce today reported that exports in July increased 31.2% from a year ago to $16.34 billion after increasing at 23.5% in June. In the review period imports rose 48.1% to $27.14 billion, yielding a trade deficit of $10.8 billion.

India, as it broadens its manufacturing base is expected to deliver exports for the current fiscal year between $160 billion and $180 billion. The country is expanding its trading partners and looking to sell more value added services to ASEAN members. Recent agreement with the trade block is likely to increase trade to $50 billion from $38 billion.

The trade deficit for the April to July period of 2008 surged nearly 50% to $41.3 billion from $27.35 billion in the same period a year ago.

Gold Price Rise to $832

Reuters News reported today on its Web site today that gold prices rose to 832 per ounce in the wake of hurricane Gustav, but gains were trimmed by a rising dollar.

Also spot platinum dropped to $1,418.50 an ounce from $1,474.50 per ounce, while spot palladium declined to $300/308 an ounce from $303.00/341.00 an ounce. Silver rose to $13.67 per ounce from $13.58 per ounce.

Gainers & Losers

Financial stocks rose after reversing declines realized in the morning session. HDFC Bank rose 2.11% to 1,304.20 rupees and State Bank of India increased 2.36% to 1,436.70 rupees. However, ICICI Bank fell 1.03% to 664.55 rupees.

Infosys Technologies declined 1.06% to 1,730 rupees.

Maruti Suzuki India lost 2.21% to 636 rupees after sales slipped 9.2% to 59,908 units from the same period a year earlier, but TVS Motors increased 1.53% to 33.15 rupees after the company said its two-wheeler sales increased 11% to 114,321 units in August 2008 from the same period a year ago.

Bharat Heavy Electricals rose 1.01% to 1,723.80 rupees and DLF rose 0.34% to 495 rupees.

Gammon Infrastructure Projects spiked 3.95% to 98.70 rupees after reporting that it has won rights to construct a 261 mw hydropower plant in Himachal Pradesh for 1510 crore rupees.

NMDC gained 2.62% to 311 rupees and Shriram EPC edged up 2.72% to 256.80 rupees after the company said it has acquired 55% stake in Chennai based Blackstone Group Technologies.