Inflation in India Declines

123jump.com Staff
26 Feb, 2009
New York City

Inflation in India dropped. The weekly measure of annualize inflation index declined to 3.36% at the end of second week in February, lifting market averages. The commerce minister Nath announced additional measures to boost traditional goods and estimated exports of $175 billion in the current year.

[R]10:00AM New York, 7:30 PM Mumbai - India targets $175 billion in merchandise exports in the current fiscal year.[/R]

Stocks in Mumbai rose after the government announced incentives specifically targeted to boost the export sector. Inflation dropped to 3.36% in the week ending February 14 from 3.92% a week ago also boosted sentiment.

In Mumbai, the BSE 30-share Sensex Index rose 0.6% or 52.30 to 8,954.86, and CNX Nifty rose 0.8% or 23.15 to 2,785.65.

Of the stocks traded on the BSE, 1,206 increased, 1,372 declined, and 71 were unchanged.

Trading Statistics

Daily turnover on the BSE increased to 2,640 crore rupees from 2,217.43 crore rupees yesterday.

India Targets $175 billion in Merchandise Exports

Economic Times of India reported today that commerce minister Kamal Nath announced measures to boost exports that include lowering customs duty under export promotion capital goods scheme to 3% from 5%.

Special incentives of 325 crore rupees for sectors such as handmade carpets, leather and technical textiles will be rolled out from April 1, while there will be a benefit of 5% under “focus product, focus market” scheme for export of handmade carpets.

Authorised persons of gems and jewelry can personally carry imported gold of up to 10 kilogram.

Bhilwara and Surat have now been recognized as towns of export excellence for textiles and diamonds, and the obligation under export promotion of capital goods scheme has been extended until for one more year.

Nath said India will miss its export target of $200 billion this fiscal year as economies around the world decline.

India expects merchandise exports of at least $175 billion during the current fiscal. In the first 10 months of this fiscal, merchandise exports increased 13.2% to $144.26 billion.

India Fiscal Gap Rises to7.8% of GDP

India’s minister of state for finance Pawan Kumar Bansal said today that fiscal debt for the year ending in March is estimated at 4.22 trillion rupees or 7.8% of GDP on increases in the government’s subsidy bill due to rising oil prices and the cost of stimulus packages.

“The fiscal deficit, including the liability on account of securities issued during the year to oil marketing companies and fertilizer companies, is 4.22 trillion rupees,"""" said Bansal.

Gainers & Losers

Ranbaxy Laboratories fell 18% after the US Food and Drug Administration said the company falsified data and test results of medicines manufactured at its Himachal Pradesh facility to obtain marketing approval in the United States.

Piramal Healthcare rose 16.9% on reports report French company Sanofi-Aventis will buy a substantial stake in the firm.

Matrix Laboratories advanced 4.7% after the World Health Organization gave it approval to produce the generic version of a HIV drug.

Strides Arcolab jumped 4.3% after its annual net profit rose to 6.13 crore rupees from a loss of 115.21 crore rupees in the year ended December 2007.

Reliance Industries edged up 1.9% to 1,290.45 rupees. ONGC jumped 2.7%, Cairn India increased 0.9% and Gail India increased 2.2% as crude oil prices rose 6% to $42.5 per barrel.

Seamec jumped 20% after the net profit gained to 54.57 crore rupees in the three months to December from a loss of 15.88 crore rupees in the same period a year ago.

Automakers increased. Tata Motors jumped 7.3% and Ashok Leyland rose 5%.

IT stocks gained as rupee fell to 50.46 against the dollar from 49.96 yesterday. Infosys Technologies increased 1.7% to 1,236.35 rupees and TCS gained 0.4%, but Wipro shed 0.7% to 215.95 rupees.

Financial stocks advanced. HDFC Bank rose 1% to 873.05 rupees and State Bank of India fell 1.3% to 1,024.15 rupees.

Everest Kanto Cylinder advanced 6.8% after company said its US unit has received orders of $5.8 million from National OilWell Varco, Rig Solutions Group.